1. © 2012 Forrester Research, Inc. Reproduction Prohibited 1 © 2009 Forrester Research, Inc. Reproduction Prohibited Webinar Today’s Telecom Expense Management (TEM): From Cost Control To Spend Optimization Onica King, Analyst May 25, 2012. Call in at 10:55 a.m. Eastern time

2. © 2012 Forrester Research, Inc. Reproduction Prohibited 2 The cost of using telecommunications resources is rising. The challenge

3. © 2012 Forrester Research, Inc. Reproduction Prohibited 3 Cutting telecom costs is a top business priority Which of the following initiatives are likely to be your firm's top telecom/communications priorities over the next 12 months? Base: 2,042 IT executives and technology decision-makers at SMBs and enterprises globally Source: Forrester's Forrsights Networks And Telecommunications Survey, Q1 2011

4. © 2012 Forrester Research, Inc. Reproduction Prohibited 4 Agenda Key trends driving TEM The TEM value proposition TEM solution and vendor landscape Strategies for deployment and adoption Wrap-up and questions

5. © 2012 Forrester Research, Inc. Reproduction Prohibited 5 Agenda Key trends driving TEM The TEM value proposition TEM solution and vendor landscape Strategies for deployment and adoption Wrap-up and questions

6. © 2012 Forrester Research, Inc. Reproduction Prohibited 6 The new work anywhere model has widespread implications.

7. © 2012 Forrester Research, Inc. Reproduction Prohibited 7 The road ahead Globalization IT consumerization Telecom convergence

8. © 2012 Forrester Research, Inc. Reproduction Prohibited 8 Agenda Key trends driving TEM The TEM value proposition TEM solution and vendor landscape Strategies for deployment and adoption Wrap-up and questions

9. © 2012 Forrester Research, Inc. Reproduction Prohibited 9  Providers focus on costs...  Consultants focus on costs...  Telecom managers focus on costs...  But users... focus on usability! Do we know better than the user... ? 70% identify cutting network and telecom service costs a top priority. Why consider TEM solutions

10. © 2012 Forrester Research, Inc. Reproduction Prohibited 10 Four key pressures drive business adoption of TEM Base: 108 Forrester inquiries Source: North American and European Enterprise and SMB TEM advisory clients since Q2 2010

11. © 2012 Forrester Research, Inc. Reproduction Prohibited 11 Audits Invoice loading and processing Cost allocation Dispute management Bill payment Reporting What is TEM?

12. © 2012 Forrester Research, Inc. Reproduction Prohibited 12 TEM represents an evolution of capabilities Telecom bill auditing Telecom cost management Telecom life-cycle management Integrated telecom management Value added Maturity of business function Tactical Strategic Source: April 18, 2011, “Follow Four Steps To Broaden The Scope Of Your Telecom Expense Management Solutions” Forrester report

13. © 2012 Forrester Research, Inc. Reproduction Prohibited 13 TEM solutions: manage business communication (fixed or mobile, voice or data) environments and their related expenses. In managing all these services and related processes, its goal is to minimize costs, maximize process efficiency, and enable ease of use. The focus now expands beyond the “E” in TEM. What is TEM?

14. © 2012 Forrester Research, Inc. Reproduction Prohibited 14 The balancing act Organizations seek financial, legal, and policy control. Business end users require accessible, reliable, and secure services. Governance left to departments with limited resources Resources Control Service

15. © 2012 Forrester Research, Inc. Reproduction Prohibited 15 TEM should help manage that balancing act TEM solution Communications provider Business Expense management Mobility life- cycle management Procurement and order management Advanced capabilities

16. © 2012 Forrester Research, Inc. Reproduction Prohibited 16 Agenda Key trends driving TEM The TEM value proposition TEM solution and vendor landscape Strategies for deployment and adoption Wrap-up and questions

17. © 2012 Forrester Research, Inc. Reproduction Prohibited 17 Delivery methodDescriptionTypical clientsBenefits Licensed software n TEM software solution is licensed by the client and is operated in-house. n Process, equipment, and software owned and operated by client n Organizations with communication expense analysts and staff for monitoring the process and operating the system n In-house control of expense life-cycle process, inventory management, and supporting technology Hosted software n Hosted services organization delivers reports to client’s management team. n Telecom expense life cycle owned by client n Institutions with complex telecom expenses and with the objective to own overall processes n In-house control of process but vendor is responsible for hardware and software infrastructure Managed service n Outsourcer receives and reconciles the bills. n Vendor provides a feed to the organization’s enterprise system for invoice approval and payment. n Institutions with large and complex telecom budget n Institutions wishing to offload tedious bill reconciliation processes n Tasks are automated. n Limited need for internal system support team n Single point of contact for client to manage budget Business process outsourcing n Outsourcer drives complete telecom environment management. n Organizations with existing professional services relationships n TEM integrated as part of a larger telecom and network strategy Delivery models range from software licenses to full BPO

18. © 2012 Forrester Research, Inc. Reproduction Prohibited 18 TEM vendors exist in multiple segments of the telecom industry Pure-play providers Most active players Service offerings can include a combination of consulting or professional services, on-premises or hosted software solutions, or managed services. Tangoe, MDSL, Symphony Teleca, Pinnacle, Veramark Technologies, Movero, Anatole, Ezwim, and Avema Systems integrators Most often a BPO offering that white labels or acquires a pure-play provider platform Accenture, Computer Sciences Corp. (CSC), Dimension Data, and IBM Telecom carriers Revenue opportunity positioned within IT and professional services arms BT Global Services, OBS, VGE, and Verizon

19. © 2012 Forrester Research, Inc. Reproduction Prohibited 19 The challenge: Which solution is right for us? Analyst’s response: “that depends on your program goals and objectives, as well as the specific activities that will be performed.”

20. © 2012 Forrester Research, Inc. Reproduction Prohibited 20 Agenda Key trends driving TEM The TEM value proposition TEM solution and vendor landscape Strategies for deployment and adoption Wrap-up and questions

21. © 2012 Forrester Research, Inc. Reproduction Prohibited 21 Five steps for developing your TEM strategy 1.Gain an understanding of TEM vendor capabilities and delivery types. 2.Conduct a “needs analysis” to gather information and data for use in establishing a baseline. 3.Exploit all potential “quick wins.” 4.Develop a statement of work that captures and defines the appropriate TEM activities for your organization. 5.And don’t forget to include cost justification.

22. © 2012 Forrester Research, Inc. Reproduction Prohibited 22 Start with essential criteria and capabilities to whittle down extensive options CriteriaExplanation Current offering  Service scope  Mode of delivery  Core capabilities  Geographic coverage The breadth and strength of the vendor’s current product offering, global capabilities, and adaptability  Strategy  Investment in R&D  Track record  User interface  Security  Service management The strength of the vendor’s product strategy and vision and how the vendor intends to achieve and maintain a strong position in the market  Market presence  Vendor stability  Sales execution and pricing The size of the vendor’s customer base and the depth of human and financial resources available to enhance products Source: April 18, 2011, “Telecom Expense Management (TEM) Vendor Selection Checklist” Forrester report

23. © 2012 Forrester Research, Inc. Reproduction Prohibited 23 Conduct a needs analysis to identify your TEM pain points?

24. © 2012 Forrester Research, Inc. Reproduction Prohibited 24 Map business objectives to TEM capabilities Business issueBusiness impactTEM Solution capabilitySolution benefits Fragmented procedures n Underleveraged spending n Increased supply and financial risk n Centralized order and provisioning management n Capture, submit, track, and centralize telecom service and equipment orders across the organization. Labor-intensive processes n High labor expenses n Lost bills and manual search for billing information n Overpayment for billing errors and duplicate payments n Invoice loading and management n Import bills electronically with the use of automation, workflow, and processing tools. n Minimize labor requirements. n Increases accuracy and reduces bill processing costs Poor visibility into assets and spending n No holistic view of spending n Underutilized assets and excess network capacity n Inventory and asset management n Create and maintain a dynamic, central repository of all wireless, voice, data, and data networking assets across an enterprise. Inadequate reporting and analysis on telecom spend n Ineffective performance analysis n Delays in budget planning n Lack of control over expenses n Reporting and telecom service optimization n Provide standard and ad hoc reports. n Generate analysis, rate benchmarking, network assessment, etc. n Match most efficient rates and terms to actual usage patterns.

25. © 2012 Forrester Research, Inc. Reproduction Prohibited 25

26. © 2012 Forrester Research, Inc. Reproduction Prohibited 26 TEM savings should always be greater than your TEM outlay. TEM maturity impacts solution benefits Range of savings potential Baseline TCO

27. © 2012 Forrester Research, Inc. Reproduction Prohibited 27 Chose a provider that meets your business and cultural needs  Consider organization culture. –Is yours a homogenic organization that might find it difficult communicating with non-native language service providers?  Validate implementation capabilities. –Look for providers with project accelerators, i.e., PM tools, predefined and industry-relevant business process maps, and configuration aids.

28. © 2012 Forrester Research, Inc. Reproduction Prohibited 28 Pricing  Fixed line typically based on a combination of the following: –Number of lines –Number of employees –Number of carriers or invoices processed –Telecom spend –Complexity of allocation –Availability of electronic billing –MACD activity per month –Inclusion of wireless, typically based on number of devices –Includes plan optimization and help desk management Managed service offerings typically translate into 1% to 2% of telecom spend.

29. © 2012 Forrester Research, Inc. Reproduction Prohibited 29 Establish measurable business objectives  Reduce your telecom costs.  Automate telecom expense processes.  Improve order and provisioning.  Reduce number of vendors.  Improve budget and accruals accuracy.  Deliver cost transparency.  Reduce the risk of receiving financial penalties from vendors. Clarify what you want your TEM solution to achieve

30. © 2012 Forrester Research, Inc. Reproduction Prohibited 30 Agenda Key trends driving TEM The TEM value proposition TEM solution and vendor landscape Strategies for deployment and adoption Wrap-up and questions

31. © 2012 Forrester Research, Inc. Reproduction Prohibited 31 Questions

32. © 2009 Forrester Research, Inc. Reproduction Prohibited Thank you Onica King +31 20.305.4864 oking@forrester.com www.forrester.com