CBS Saves $42mm with RampRate

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Information about CBS Saves $42mm with RampRate
Technology

Published on October 12, 2014

Author: rrtony

Source: slideshare.net

1. Client: CBS Industry: Mass Media Geography: Global RampRate Solutions: Data Center HyperSourcing, CDN HyperSourcing RampRate | 1 Situation Action 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. RampRate | 1

2. RampRate | 2 Guiding CBS Through a Year of Change For close to 90 years CBS has thrived in a cut-throat industry through quick, careful reinvention. 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 met many challenges head on. When CBS began its split from Viacom, it needed to move quickly and carefully to separate its IT infrastructure from Viacom, and it engaged RampRate to ensure a swift, efficient migration. Adapting to Unfamiliar Situations and Timeline Compression The two distinctive characteristics of the CBS-RampRate relationship were adapting to unfamiliar situations and timeline compression. For example, as CBS separated from Viacom, it had to outsource infrastructure that was previously controlled internally. It had to do so within specific timelines reflecting the need for complete separation from Viacom within one year. Throughout this year of change, 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. Eleven distinct IT procurement projects have put under RampRate's care since its initial engagement, reflecting the consistent value that RampRate's data-driven methodology has added to a top performer like CBS. Moving Quickly, Moving Carefully At each stage of its ITO process, RampRate related the proposed outsourced budget and service levels back to existing in-house metrics and budgets to ensure that there were clear metrics presented to CBS management covering both the upside and downside of the new outsourced approaches. To assist with rapid budget preparations, RampRate provided more than five iterations of its deliverables, updated every few days to reflect negotiation progress and fluctuating customer requirements. A Timeline Designed for Success RampRate maintained an organized, aggressive timeline that guaranteed CBS would both meet its requirements to achieve IT-independence from Viacom and position CBS for improved IT performance and efficiency. Milestones included: May Year 1: Provided market benchmarks for negotiation of hosting services at a large subsidiary. June Year 1: Procured a large “bucket” of backup content delivery network (CDN) services to be used on demand. SUCCESS STORY

3. RampRate | 3 August-October Year 1: Obtained colocation services in two data centers with two providers to prepare for the split between CBS and Viacom. October-December Year 1: Procured backup space and connectivity in a carrier neutral facility. December Year 1-January Year 2: Vetted a multi-year software agreement in conjunction with a partner. December Year 1-January Year 2: Guided procurement of CDN services and audience management software for a record-breaking streaming media event. April Year 2: Procured extensive data center space in two specific geographic locations. RampRate’s Formula for Success: Part Art, Part Science—All Data-driven The primary reason CBS has engaged RampRate for myriad IT initiatives and processes is RampRate's data-driven procurement methodology. Regardless of whether RampRate was negotiating a simple bandwidth contract worth several thousand dollars or a software and colocation deal worth millions, the process and deliverables ensured the following: Multiple voices at CBS were taken into account. Non-financial aspects were analyzed and quantified. Due diligence was performed on every supplier. Expectations for all parties were always clear. A resource existed for resolving problems after signing. Costs were always aligned with market rates. Best practices were used for all SLA terms. Procurement cycles were reduced by 50%-90%. How did RampRate achieve these results and keep CBS a loyal customer through a year of critical change including 11 time- and cost-sensitive IT transactions? By leveraging its market knowledge and benchmarks, it got the best deal for CBS. By using a consistent quantitative methodology, it made decisions clear and justifiable for all stakeholders. By staying invested in the success of every deal, it ensured that supplier relationships it built would last and prosper. By using its data-driven methodology and processes, it cut procurement time from months to weeks—or even days. Engagements that Guarantee Results Cost-savings Achieved on Behalf of CBS Included: 24% reduction in cost with the same supplier in a hosting infrastructure transaction Seven-figure savings compared to prevailing market rates in two concurrent colocation procurement exercises SUCCESS STORY

4. RampRate | 4 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 supplier credits that were added to a software license agreement. Negotiated a 50% discount from a supplier's initial quote to its final quote in a time-pressure environment. Time Savings Achieved on Behalf of CBS Include: Used market-leading process to ensure that installation deadlines driven by CBS' separation from Viacom were met. Ensured inclusion of more than 75% of the market's most stringent SLA provisions in each colocation contract. Identified seven-figure savings in unapplied supplier credits that were added to a software license agreement. Negotiated a 50% discount from a supplier's initial quote to its final quote in a time-pressure environment. IT Results that Pave the Way for Overall Client Success In addition and perhaps most importantly, these tangible results positioned CBS for continued dominance in a hyper-competitive industry. CBS continues to defend its position as a leading media conglomerate with television, radio, online content, and publishing operations, and it operates the #1 rated CBS television network. 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. About RampRate RampRate is a leading global sourcing advisory firm serving some of the world's most important brands. We advise on and help Global 1000 companies transact for data center, telecom, CDN, RIM, IT support, and software maintenance services. We leverage our proprietary sourcing decision execution platform and acquire sourcing data to optimize each client’s bill of outsourced IT. In our 14-year history we have optimized IT service contracts exceeding $24 billion for clients such as EBay, Sony, AT&T, Intel, and CBS who save an average 23.8% on their IT services purchases with no risk, and typically recover 1000s of hours of valuable staff time by leveraging RampRate. These companies also enjoy a 99% success rate on their sourcing transactions. The aggregated service provider information derived from the 1000s of sourcing transactions we have engineered yields valuable insight to our clients and partners. In 2013 alone, we structured $4.5 billion in outsourced IT services contracts. With $15 billion in our pipeline for 2014 and an average client portfolio of $125 million, we are positioned to experience triple-digit growth. SUCCESS STORY

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