Data driven sourcing decisions
for scaling, normalizing or cutting IT cost
For the world's most powerful firms & those on their way
Get More From Your IT Services Budget
Buy new services
6x faster purchase cycles
& 98% less risk in 100 countries
Optimize & Renegotiate deals
Slash IT OPEX cost ±24%
& fund new projects
Find better solutions,
remove excess, modernize
RampRate Helps Companies to Source, Optimize & Negotiate IT Contracts for
Cloud, Managed Services, Data Center, Telecom, CDN, and Software.
The company we keep.
- Santa Monica, CA
- About Blizzard:
- Best known for blockbuster hits including World of Warcraft® and the Warcraft®, StarCraft®, and Diablo® franchises, Blizzard Entertainment, Inc. (www.blizzard.com), a division of Activision Blizzard (NASDAQ: ATVI), is a premier developer and publisher of entertainment software renowned for creating some of the industry’s most critically acclaimed games. Blizzard Entertainment’s track record includes 17 #1-selling games and multiple Game of the Year awards. The company’s online-gaming service, Battle.net, is one of the largest in the world with millions of active players.
- With 8.5 million subscribers around the globe, Blizzard Entertainment was a huge success in the online gaming industry.
- The record-setting launch of World of Warcraft®: The Burning Crusade™, underscored Blizzard’s transition from a top developer to the unquestioned leader in the “always-on” immersive virtual world.
- But with unprecedented growth in subscribers came exponential growth of player expectations for service uptime and performance. Blizzard needed to continue to meet player expectations despite mounting infrastructure pressures.
- Every dollar spent externally to support the Blizzard audience needed to be allocated for optimal efficiency and effectiveness. RampRate was enlisted to make this happen.
- Delivered 8-figure reductions in colocation and bandwidth costs as well as future leverage through vendor diversification.
- Achieved 20% or more savings from aligning existing contracts while rewriting SLAs to cutting-edge best practices.
- Realized further savings from the identification and removal of unnecessary service components in existing contracts.
- Significantly reduced Content delivery network (CDN) expense by identifying multi-vendor strategy.
- Completed 32 ITO projects within the first year.
- Engaged new vendors rapidly and successfully even when unpredictable growth required very fast expansion.
The imperative that had driven the company’s initial growth—“Do everything it takes to deliver a gold medal user experience”—meant operational costs were also growing exponentially.
- New York, NY
- About CBS:
- CBS Corporation is a mass media company that creates and distributes industry-leading content across a variety of platforms to audiences around the world. CBS owns the most-watched television network in the U.S. and one of the world’s largest libraries of entertainment content. The Company’s operations span virtually every field of media and entertainment, including cable, publishing, radio, local TV, film, outdoor advertising, and interactive and socially responsible media.
- Even as it moves towards its 90th birthday, CBS has never been afraid to reinvent itself. From its split with Viacom, to the growing success of its Web properties such as CBS Sportsline, to hosting one of the largest streaming events in history, the multifaceted media giant has maneuvered and thrived in a challenging, time-critical, ever-changing industry.
- One of these time-critical challenges occurred when CBS was separating from Viacom. CBS had to outsource infrastructure that was previously controlled internally—and it had to do so within specific timelines reflecting the need for complete separation from Viacom within one year.
- CBS engaged RampRate Sourcing Advisors to find the technological solutions that could support its burgeoning online success, and to examine technology relationships for fairness, risk factors, and adherence to market best practices.
- Oversaw a 24% reduction in cost with the same supplier in a hosting infrastructure transaction.
- Used market-leading process to ensure that installation deadlines driven by CBS’ separation from Viacom were met.
- Seven-figure savings compared to prevailing market rates in two concurrent colocation procurement exercises.
- Ensured inclusion of more than 75% of the market’s most stringent SLA provisions in each colocation contract.
- Reduced bandwidth costs by more than 50% by helping CBS move to a new provider in a carrier-neutral location.
- Developed a financial projection tool for minimizing streaming event costs by using multiple CDNs concurrently.
- Identified seven-figure savings in unapplied vendor credits that were added to a software license agreement.
- Negotiated a 50% discount from a vendor’s initial quote to its final quote in a time-pressure environment.
The two distinctive characteristics of the CBS-RampRate relationship were adapting to unfamiliar situations and timeline compression. CBS engaged RampRate Sourcing Advisors to find the technological solutions that could support its burgeoning online success, and examine technology relationships for fairness, risk factors, and adherence to market best practices.
- Constant Contact
- Waltham, MA
- About Constant Contact:
- Constant Contact, Inc., provides online marketing tools that are designed for small businesses, associations, and nonprofits primarily in the United States. The company offers email marketing products that allow customers to create, send, and track professional-looking email campaigns; event marketing products, which allow customers to promote and manage events, communicate with invitees and registrants, capture and track registrations, and collect online payments; and social media products, including Social Campaigns. As of December 31, 2013, it served approximately 595,000 customers, including business-to-business users, business-to-consumer users, and nonprofits and associations.
- At the end of 2010, Constant Contact was a fast-growing leader in providing Internet-based marketing services to small companies.
- It recognized the need to ensure optimal price and service levels associated with a major IT expense–primary and redundant DR (disaster recovery) data centers on the East and West Coasts.
- When Constant Contact engaged RampRate, it wondered if it would end up staying with its incumbent DR supplier.
- The result proved otherwise.
- Constant Contact is projected to save a total of $21.3M over the next 6 years and achieve another $1.9M in intangible benefits.
- Constant Contact’s final costs were 13% below its goal of reaching market 25th percentile rates and 27% below the median of all quotes for West Coast data center space.
- Achieved intangible benefits of single-source provider, favorable location, and ability to build out into a large suite without space constraints.
- Conversion of power charges from per-circuit to metered charges, resulting in an estimated 75% reduction in power costs.
- 225 kilowatts of additional high density expansion space.
- Attainment of both of the above goals without signing a lease longer than 6 years.
- Deferral of rent increases and charges for 4 months, which resulted in savings of approximately $224K.
Because of RampRate’s proprietary technology and industry expertise, it was able to determine the precise right supplier fit for Constant Contact. RampRate was able to look beyond the “lowest price tag” to reveal actual price when all factors, tangible and intangible, were considered.
- About eBay:
- With 128 million active users globally, eBay is one of the world's largest online marketplaces where practically anyone can buy and sell practically anything. Founded in 1995, eBay connects a diverse and passionate community of individual buyers and sellers, as well as small businesses. Their collective impact on ecommerce is staggering, and more than 500 million items are listed on eBay.
- As one of the 20 most highly trafficked websites worldwide, eBay’s need to build out infrastructure to accommodate both organic growth and acquisitions was constant, expensive, and time-critical.
- eBay was well-known in the e-commerce industry as a thought-leader and innovator, creating a distinct competitive advantage through the skillful management and progression of its IT infrastructure.
- Having negotiated contracts superbly for years, eBay had some of the best rates and contract terms in the industry.
- However, each new acquisition added a layer of amendments to eBay’s outsourced data center, network, and CDN contracts, causing a strain on its top-notch infrastructure team, which was being pulled from innovative projects to address contract- and growth-related issues.
- Created 13% savings in restructured data center contract through removal of excess capacity and by replacing custom circuits with standard circuits, while also allowing flexibility for early exit.
- Achieved 16% rate reduction from telecom provider through comprehensive renegotiation of nine-figure contract.
- Achieved 26% cost reductions from strategic WAN providers through route redundancy and uncompromising SLAs.
- Created 22% outsource provider-related savings through contract expiration, while also strengthening eBay/supplier relationships.
- Saved 4,320 hours (two years) of staff time on contract negotiation and management.
- Stronger supplier contract terms with more accountability, flexibility, and fluidity.
- IT team freed up to focus on innovative projects rather than contract-related issues.
“I knew I was leaving a bit on the table in our outsourced contracts. But the corporate mandate is growth and innovation, and when further contract improvement seemed to be marginal, my team’s first priorities had to move elsewhere.”