Proprietary and Confidential
ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved.
Network Services Assessment Overview
2
 History: 20 years of driving value for clients
 Team: 58 consultants, with avg. of 20+ years
experience
 Scale: 150+ engagements/yr., across the globe
 Expertise: telecom, hardware, software, cloud,
SIP, UC, Contact Center, Mobility
 Market Relevance: 2,000+ contracts and $2B in
annual market spend; 600 of the Fortune 1000, 75
of Fortune 100
 Proven results: 25%+ in average savings
Market Founders for Network
Advisory Services in the U.S.
ISG Network Advisory Practice
ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved.
3
Network & Software Sourcing Advisory
Tactical
Cost Reduction
(Run the Business)
Optimization
(Event Driven)
Strategic
Capabilities Enhancement
(Change the Business)
ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved.
Services Inventory
& Invoice Audit
Network Contract
Sourcing
Network
Optimization
Network and Cloud
Transformation
Core IT Sourcing
Asset
Management
Event-Triggered
Optimization
Business Enablement
Sourcing
Network
Software
4
Complimentary Network Services Assessment
ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved.
• As an introduction to our network advisory capabilities, ISG will provide your company with a no-charge, no-commitment market
assessment of your primary telecom/mobility contracts.
• This 2-3 week process will provide insight into any cost savings/service optimization opportunities, recommended contract
improvements, and areas of potential technology transformation.
• At the completion of the assessment, we will provide you with a PowerPoint document detailing the results of the assessment which
will include projected savings opportunity and recommended sourcing strategy
1
Contract Summary
ISG Confidential.© 2017 Information Services Group, Inc. All Rights Reserved.
CARRIER
SERVICES/
AGREEMENT
COMMITMENT EFFECTIVE TERM EXPIRATION
COMMITMENT
RETIREMENT
CARRIER X
OneNet MARC $2.7M Sept 2014 3 Yr. Sept 2017 Jun 2017
ILEC MARC $1M; circuit specific Aug 2015 2 Yr. Aug 2017 Aug 2017
SONET 3 Yr. (circuit specific) Jun 2016 3 Yr. Jun 2019 Jun 2019
AVPN MARC $2.0M Sept 2014 3 Yr. Sept 2017 Mar 2017
 Multiple price schedules with various terms and revenue commitments
 Based on current run rate $3.7M, AVPN commitment retired by March of 2017
 SONET Pricing Schedule expires June 2019 with 100% termination liability
 Forecast retirement of Local and LD voice revenue commitments within the next 3-5 months
 Managed services commitment – 35 site minimum; currently 37 sites under management
 Strong contract leverage profile with primary agreements expiring within the next 3-6 months
 Contract staging/extensions likely required to maintain contract leverage throughout planned RFP
event
2
Key Observations
ISG Confidential.© 2017 Information Services Group, Inc. All Rights Reserved.
Material financial gap to market - $2.2M to $3.4M per year (12%-19%)
Moderate to strong contract leverage
 XYZ agreement within recommended sourcing window of 9-12 months
 For ABC, moderate contract leverage given staggered circuit term commitments (0-36 months)
Opportunity exists to improve commercial terms
 Improve/simplify commitment structures
 Orderly transition provision
 Mid-contract rate review mechanism
 General review of commercial terms to ensure alignment with “market trends” and current business
requirements (e.g., business continuity/tech upgrade provisions)
Thoughtful sourcing approach required to maximize results
 Carefully crafted sourcing strategy and carrier messaging
 Streamlined competitive sourcing event (incumbents and select alternative providers)
 For ABC, apply strong moral persuasion in order to obtain commitment to “good faith” negotiations
(i.e., absence of rate review under current agreement, opportunity to bid on current XYZ business, etc.)
 ISG market intelligence to drive carriers to the leading edge of the market
Opportunity exists to expand identified “like for like” savings with enterprise-wide SIP deployment (i.e.,
further convergence of voice/data services)
4
Recommended Sourcing Timeline
ISG Confidential.© 2017 Information Services Group, Inc. All Rights Reserved.
May Jun Jul Aug Sept Oct Nov Dec
Project
Staging
Wireline
Sourcing Event
Wireless Realization of Savings
Estimated Timeline: 18 TO 21 WEEKS
• Inventory build
• Confirm current/forwardlooking requirements
• Finalize sourcing strategy
• Develop sourcing documents
• Sourcing documents released to suppliers
• R1/R2 response analysis & supplier
coaching
• Final negotiations
• Deliver execution ready contract documents
Wireless
Sourcing Event
2017
Wireline Realization of Savings
5
Assessment Process Overview
ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved.
WEEK 0 WEEK 1 WEEK 2
DATA COLLECTION
(PROJECT STAGING)
PROJECT KICK-OFF/
DISCOVERY
EXECUTE
ASSESSMENT
ASSESSMENT
READOUT
SCOPE OF WORK
DEVELOPMENT
COMMERCIAL
TERMS
AGREEMENT
Data Collection/Project Staging
• For most clients, data collection/staging takes 2-5 days to complete
• Data Collection List: (1) Electronic copies of signed carrier contracts and amendments, (2) Carrier commitment tracking report if
readily available, (3) Electronically available invoices (one month of billing data; direct portal access preferred), and (4) Accounts
Payable/General Ledger report (used to ensure completeness of compiled invoice data)
Project Kick-off/Discovery
• Assessment kick-off call; Discuss project scope, objectives, and timeline
• Key stakeholder interviews to confirm alignment on current network environment, short and long-term objectives, current provider
performance, and other key variables that may impact sourcing strategy and timeline
• Obtain high level understanding of current network architecture, roadmap, and technology deployment plans
6
Assessment Process Overview
ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved.
WEEK 0 WEEK 1 WEEK 2
DATA COLLECTION
(PROJECT STAGING)
PROJECT KICK-OFF/
DISCOVERY
EXECUTE
ASSESSMENT
ASSESSMENT
READOUT
SCOPE OF WORK
DEVELOPMENT
COMMERCIAL
TERMS
AGREEMENT
Execute Assessment
• Review/analyze provided data; Validate initial observations with client to ensure accurate understanding of current environment
• Assess contractual agreements, commercial terms, and contract leverage profile
• Map current services/rates to our database to quantify a “gap to market”
• The focus will be on identifying cost-out opportunities, with a view toward longer term infrastructure improvement (service
optimization, technology transformation, supplier/service rationalization)
Assessment Readout
• Assessment results detailed in PowerPoint document which will include projected savings opportunity, recommended sourcing
strategy, and suggesting timing/sequencing of cost reduction projects
• Read-out scheduled with client key stakeholders to review/discuss assessment results
7
Qualifications for Complimentary Network Assessment
ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved.
• In-scope network/telecom spend of at least $3M/year
• Up to 5 in-scope providers (across wireline and wireless services)
• Contract/amendment documents provided in electronic format (e.g., PDF)
• Invoice data made available in electronic format; direct portal access preferred
ISG (Information Services Group) (NASDAQ: III) is a leading global technology research and advisory
firm. A trusted business partner to more than 700 clients, including 75 of the top 100 enterprises in the
world, ISG is committed to helping corporations, public sector organizations, and service and technology
providers achieve operational excellence and faster growth. The firm specializes in digital
transformation services, including automation, cloud and data analytics; sourcing advisory; managed
governance and risk services; network carrier services; technology strategy and operations design;
change management; market intelligence and technology research and analysis. Founded in 2006, and
based in Stamford, Conn., ISG employs more than 1,300 professionals operating in more than 20
countries—a global team known for its innovative thinking, market influence, deep industry and
technology expertise, and world-class research and analytical capabilities based on the industry’s most
comprehensive marketplace data.
isg-one.com

ISG Network Services Assessment Overview

  • 1.
    Proprietary and Confidential ISGConfidential. © 2017 Information Services Group, Inc. All Rights Reserved. Network Services Assessment Overview
  • 2.
    2  History: 20years of driving value for clients  Team: 58 consultants, with avg. of 20+ years experience  Scale: 150+ engagements/yr., across the globe  Expertise: telecom, hardware, software, cloud, SIP, UC, Contact Center, Mobility  Market Relevance: 2,000+ contracts and $2B in annual market spend; 600 of the Fortune 1000, 75 of Fortune 100  Proven results: 25%+ in average savings Market Founders for Network Advisory Services in the U.S. ISG Network Advisory Practice ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved.
  • 3.
    3 Network & SoftwareSourcing Advisory Tactical Cost Reduction (Run the Business) Optimization (Event Driven) Strategic Capabilities Enhancement (Change the Business) ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved. Services Inventory & Invoice Audit Network Contract Sourcing Network Optimization Network and Cloud Transformation Core IT Sourcing Asset Management Event-Triggered Optimization Business Enablement Sourcing Network Software
  • 4.
    4 Complimentary Network ServicesAssessment ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved. • As an introduction to our network advisory capabilities, ISG will provide your company with a no-charge, no-commitment market assessment of your primary telecom/mobility contracts. • This 2-3 week process will provide insight into any cost savings/service optimization opportunities, recommended contract improvements, and areas of potential technology transformation. • At the completion of the assessment, we will provide you with a PowerPoint document detailing the results of the assessment which will include projected savings opportunity and recommended sourcing strategy 1 Contract Summary ISG Confidential.© 2017 Information Services Group, Inc. All Rights Reserved. CARRIER SERVICES/ AGREEMENT COMMITMENT EFFECTIVE TERM EXPIRATION COMMITMENT RETIREMENT CARRIER X OneNet MARC $2.7M Sept 2014 3 Yr. Sept 2017 Jun 2017 ILEC MARC $1M; circuit specific Aug 2015 2 Yr. Aug 2017 Aug 2017 SONET 3 Yr. (circuit specific) Jun 2016 3 Yr. Jun 2019 Jun 2019 AVPN MARC $2.0M Sept 2014 3 Yr. Sept 2017 Mar 2017  Multiple price schedules with various terms and revenue commitments  Based on current run rate $3.7M, AVPN commitment retired by March of 2017  SONET Pricing Schedule expires June 2019 with 100% termination liability  Forecast retirement of Local and LD voice revenue commitments within the next 3-5 months  Managed services commitment – 35 site minimum; currently 37 sites under management  Strong contract leverage profile with primary agreements expiring within the next 3-6 months  Contract staging/extensions likely required to maintain contract leverage throughout planned RFP event 2 Key Observations ISG Confidential.© 2017 Information Services Group, Inc. All Rights Reserved. Material financial gap to market - $2.2M to $3.4M per year (12%-19%) Moderate to strong contract leverage  XYZ agreement within recommended sourcing window of 9-12 months  For ABC, moderate contract leverage given staggered circuit term commitments (0-36 months) Opportunity exists to improve commercial terms  Improve/simplify commitment structures  Orderly transition provision  Mid-contract rate review mechanism  General review of commercial terms to ensure alignment with “market trends” and current business requirements (e.g., business continuity/tech upgrade provisions) Thoughtful sourcing approach required to maximize results  Carefully crafted sourcing strategy and carrier messaging  Streamlined competitive sourcing event (incumbents and select alternative providers)  For ABC, apply strong moral persuasion in order to obtain commitment to “good faith” negotiations (i.e., absence of rate review under current agreement, opportunity to bid on current XYZ business, etc.)  ISG market intelligence to drive carriers to the leading edge of the market Opportunity exists to expand identified “like for like” savings with enterprise-wide SIP deployment (i.e., further convergence of voice/data services) 4 Recommended Sourcing Timeline ISG Confidential.© 2017 Information Services Group, Inc. All Rights Reserved. May Jun Jul Aug Sept Oct Nov Dec Project Staging Wireline Sourcing Event Wireless Realization of Savings Estimated Timeline: 18 TO 21 WEEKS • Inventory build • Confirm current/forwardlooking requirements • Finalize sourcing strategy • Develop sourcing documents • Sourcing documents released to suppliers • R1/R2 response analysis & supplier coaching • Final negotiations • Deliver execution ready contract documents Wireless Sourcing Event 2017 Wireline Realization of Savings
  • 5.
    5 Assessment Process Overview ISGConfidential. © 2017 Information Services Group, Inc. All Rights Reserved. WEEK 0 WEEK 1 WEEK 2 DATA COLLECTION (PROJECT STAGING) PROJECT KICK-OFF/ DISCOVERY EXECUTE ASSESSMENT ASSESSMENT READOUT SCOPE OF WORK DEVELOPMENT COMMERCIAL TERMS AGREEMENT Data Collection/Project Staging • For most clients, data collection/staging takes 2-5 days to complete • Data Collection List: (1) Electronic copies of signed carrier contracts and amendments, (2) Carrier commitment tracking report if readily available, (3) Electronically available invoices (one month of billing data; direct portal access preferred), and (4) Accounts Payable/General Ledger report (used to ensure completeness of compiled invoice data) Project Kick-off/Discovery • Assessment kick-off call; Discuss project scope, objectives, and timeline • Key stakeholder interviews to confirm alignment on current network environment, short and long-term objectives, current provider performance, and other key variables that may impact sourcing strategy and timeline • Obtain high level understanding of current network architecture, roadmap, and technology deployment plans
  • 6.
    6 Assessment Process Overview ISGConfidential. © 2017 Information Services Group, Inc. All Rights Reserved. WEEK 0 WEEK 1 WEEK 2 DATA COLLECTION (PROJECT STAGING) PROJECT KICK-OFF/ DISCOVERY EXECUTE ASSESSMENT ASSESSMENT READOUT SCOPE OF WORK DEVELOPMENT COMMERCIAL TERMS AGREEMENT Execute Assessment • Review/analyze provided data; Validate initial observations with client to ensure accurate understanding of current environment • Assess contractual agreements, commercial terms, and contract leverage profile • Map current services/rates to our database to quantify a “gap to market” • The focus will be on identifying cost-out opportunities, with a view toward longer term infrastructure improvement (service optimization, technology transformation, supplier/service rationalization) Assessment Readout • Assessment results detailed in PowerPoint document which will include projected savings opportunity, recommended sourcing strategy, and suggesting timing/sequencing of cost reduction projects • Read-out scheduled with client key stakeholders to review/discuss assessment results
  • 7.
    7 Qualifications for ComplimentaryNetwork Assessment ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved. • In-scope network/telecom spend of at least $3M/year • Up to 5 in-scope providers (across wireline and wireless services) • Contract/amendment documents provided in electronic format (e.g., PDF) • Invoice data made available in electronic format; direct portal access preferred
  • 8.
    ISG (Information ServicesGroup) (NASDAQ: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including 75 of the top 100 enterprises in the world, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; technology strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. isg-one.com