Tangoe — Investor Presentation (June 2007)
24 slides from Tangoe's investor presentation, June 2007
Slide 1: Achieving Best-In-Class Mobile Telecom Contracts
Achieving Best–In-Class Mobile Telecom Contracts Bill Marsh, Vice President Product Research Robert Whitmore, Sr. VP Contract Sourcing
Slide 2: Potential Savings are Dramatic
Potential Savings are Dramatic…. 2 Copyright © 2007 Tango, Inc.. - Confidential
Slide 3: But Good Deals are Hard to Find!
But Good deals are Hard to Find! Why shouldn’t you have a world class deal? 3 Copyright © 2007 Tango, Inc.. - Confidential
Slide 4: What is Driving this Difference?
What is Driving this Difference? ¾ Limited benchmarking data available ¾ Legacy contracts poorly managed ¾ Decentralized approach to wireless management IT vs. procurement Data vs. voice ¾ Companies too busy to “deal with wireless” ILUs Politics ¾ Chaotic provider landscape ¾ Custom deals ab
Slide 5: Challenges to Getting a Good Deal
Challenges to Getting a Good Deal ¾ Little to no visibility into enterprise pricing ¾ Limited time & resources to manage sourcing ¾ Internal politics and processes ¾ Constantly changing devices & business requirements ¾ Not realizing the risks with poor terms & conditions ¾ Incumbent perceives threa
Slide 6: Savings Impact: Case Studies
Savings Impact: Case Studies Current Savings Unit Project Annual 3 years Goal Liability Units Annual Cost Duration savings Spend (Projected) Reduce Cust. 27% cost Corp. 3,000 $90 $3.24M 3 mo. $2.62M A $874K Reduce cost Corp. 2,000 Cust. 45%* Central $130 $9.36M 4 mo. $12.6M B mgmt $4.21M Emp. 4,000
Slide 7: Domestic Carrier Review
x Tangoe Domestic Carrier Review Sv Fae
Slide 8: Carrier Perspective - Total Subscribers
Carrier Perspective - Total Subscribers Number of subscribers in millions 26, 13% 53.6, 26% 60.7, 30% 62.2, 31% T Mobile Verizon AT&T Mobile Sprint 8 Copyright © 2007 Tango, Inc.. - Confidential
Slide 9: Verizon Wireless
Verizon Wireless ¾ Strong belief “network” can command premium Reality Æ Perception Little flexibility until 10,000 lines or more Most deals average 5 - 10 percent premium ¾ Leads in coverage - gap is closing ¾ EV-DO rollout successful Suspending/terminating unlimited data subs deemed “abusi
Slide 10: AT&T Mobility
AT&T Mobility ¾ Competitive when needed Wants existing VZ business Flexible, willing to consider custom plans Responds well to RFPs Best flat rate pricing ¾ Coverage close to Verizon ¾ Patchwork of old systems creates service challenges ¾ UMTS/HSDPA network largely built-out Not a competit
Slide 11: Sprint Nextel
Sprint Nextel ¾ Extremely competitive pricing Responds aggressively to RFPs Writes down business to retain customers Very competitive over 1,000 lines Good enterprise customer service ¾ Recovering from bumpy quarters ¾ EV-DO launched, more liberal usage terms than Verizon ¾ PowerSource and W
Slide 12: T-Mobile
T-Mobile ¾ Lowest cost provider in most cases Standard plans often better vs. negotiated competitor deals Most flexible subsidizing device costs Consumer focused – inexperienced at enterprise level (RFPs, SLAs) AT&T neutralized compelling international story ¾ Less coverage, but better than
Slide 13: Tier IIs
Tier IIs ¾ Profitable regional providers filling niche markets ¾ Tend to have smaller “anchor” enterprise customers Results in fewer resources to support those customers 13 Copyright © 2007 Tango, Inc.. - Confidential
Slide 14: Coverage Claims - Not Always What They Seem
Coverage Claims - Not Always What the Seem 14 Copyright © 2007 Tango, Inc.. - Confidential
Slide 15: Coverage Claims - Depend Upon Subscriber
Coverage Claims - Depend Upon Subscriber 15 Copyright © 2007 Tango, Inc.. - Confidential
Slide 16: Negotiation Strategies
x Tangoe Negotiation Strategies Sv Fae
Slide 17: Negotiate from a Position of Strength
Negotiate from a Position of Strength ¾ Reach internal agreement on who owns wireless Communicate it clearly to the carrier ¾ Build an inventory of what you have & what you spend Key to RFP Allows financial modeling through the process ¾ Meet with business leaders to determine current/future n
Slide 18: Understand Carrier Position
Understand Carrier Position ¾ Carrier priorities Retain your business Minimize the decrease in revenue through new pricing Find a way to recover the revenue Increase your commitment ¾ Incumbents know they’re in the pole position Use an RFP to get competitive offers Your threat to move bu
Slide 19: Pricing Options and Dynamics
Pricing Options and Dynamics ¾ Complex landscape Contracts can include dozens of plans Plethora of surcharges, monthly add-ons, special offers Dozens of equipment options One size doesn’t fit all ¾ Typical starting point Standard individual and pooled plans Data offer for Blackberrys and
Slide 20: Rate Plans - Pooled
Rate Plans – Pooled ¾ Advantages More predictable than stand alone plans Optimized across the organization Lower CPM if optimized well Not as sensitive to individual usage variances ¾ Disadvantages Requires ongoing maintenance and optimization Must overbuy to create predictability (“the
Slide 21: Rate Plans - Flat
Rate Plans – Flat ¾ Advantages Pay only for what you use The CPM is fixed Minimal administration or management Actual usage can be allocated at the user level ¾ Disadvantages Generally more expensive than well-optimized pool Can require substantial commitment (lines/revenue) Minute flo
Slide 22: Contract Terms - Key Areas
Contract Terms - Key Areas ¾ Corporate liable vs. individual liable ¾ Commitments ¾ Restricting certain types of services ¾ Fees ¾ Credits ¾ Renewal terms ¾ Surcharges ¾ Service delivery ¾ SLAs 22 Copyright © 2007 Tango, Inc.. - Confidential
Slide 23: Summary
Summary ¾ Build a baseline ¾ Understand business requirements ¾ Use an RFP process to level the playing field ¾ Model both pooled and flat rate plans based on your usage ¾ Minimize commitment and risk through aggressive contract language ¾ Consider a 3rd party to maximize savings, minimize risk, and
Slide 24: Questions?
x Tangoe Questions? Sv Fae