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Data-Driven Retail: Proactive Cost Optimization and Contract Negotiation

(Dezember 2023)

Company Profile

  • Industry: Retail
  • Size: 35k employees
  • Revenue: $8.5B
  • Region: Global
  • Market: Mid-Market
Analysis:
300%
return on investment

Mature Strategy and Proactive Approach to ITAM Case Study | EXECUTIVE SUMMARY

With 33.4 million customers, 35,000 associates, and operations spanning the globe, this famous US based retail organization has an extensive and complex IT estate.

Anglepoint has been the organization’s IT Asset Management (ITAM) partner of choice since 2018. Initially brought on board to assist with an audit, the partnership has continued to evolve, with Anglepoint now providing the client with a comprehensive managed service program for its top 11 publishers, equivalent to 63 percent of its annual software spend.

Under Anglepoint’s expert guidance, the retailer’s strategy has continued to mature so that, today, it is able to take a more proactive approach to ITAM. By placing years of trustworthy usage data at its fingertips, Anglepoint is empowering the client to make intelligence-led decisions that reduce spend, decrease risk, improve forecasting accuracy, and strengthen its negotiating power.

The Challenge

Developing a mature ITAM program takes time and patience, particularly for global organizations operating vast IT infrastructures.

This organization initiated its ITAM maturity journey in 2018, enlisting external ITAM expertise for a routine audit.  Since then, a continuous enhancement process has been underway to refine its ITAM strategy. The primary objectives are to amplify visibility across the entire IT estate and accumulate reliable data for analysis over time.

With a deeper understanding of its usage – and with accurate data at its disposal – the retailer would be able to take a much more proactive approach to asset management,  identifying and mitigating risks, optimizing spend, and entering audits and renewals from a position of greater strength.

The Solution

The corporation first engaged Anglepoint in 2018 to manage an IBM audit. This audit acted as the catalyst,  prompting a comprehensive review of the client’s broader IT Asset Management (ITAM) operations.  Recognizing the potential for risk reduction and operational organization, the organization, guided by Anglepoint’s expertise, embarked on a journey of close estate management. The partnership between the client and Anglepoint has continued to grow. With an initial focus on its IBM licenses, the scope was soon extended to cover its 30 top spend publishers, relationships that carry the greatest chance of an audit. Anglepoint helped its client develop and implement a proactive, data driven ITAM program, based on industry best practices.

Key strategic enhancements include:

  • Stakeholder workshops and roadmap refresh.
  • Publisher prioritization.
  • Creation and implementation of new SAM and HAM policies.
  • Annual ELPs for top spend publishers.
  • Renewal negotiation support.
  • SAM Pro support.
  • Coverage analysis.
  • Specialized training for ServiceNow and CSAM.
  • Software request process communications planning.
  • Quarterly KPIs covering identification and remediation of risks, cost avoidance and savings, and compliance.

The longevity of the partnership is paying dividends as it means the retailer now has access to multiple years of trustworthy data, providing rich insights relating to past usage. As part of its service offering, Anglepoint analyses this usage data to identify trends and anomalies, empowering its client to make intelligence-led decisions as it enters contract negotiations or seeks additional operational efficiencies.

RESULTS

Informed Decision-making:

By extracting and analyzing multiple years of trustworthy consumption data, Anglepoint is providing the organization with valuable insights that are now driving better business decisions.

For example, deployment data collected from its environment has showed a peak in usage of Adobe Creative Cloud licenses at a time when subscription costs were rising by 13 percent per year. In parallel, the data revealed that only 20 percent of users had been active in the previous 90-day period. Armed with this intelligence, the retailer is better placed to optimize costs by reallocating and reclaiming licenses, enhancing forecast accuracy.

In addition to Adobe Creative Cloud, Anglepoint identified noteworthy trends in the data related to the company’s Dell EMC installations, including a sizeable increase in some product installations over a three-year period, and a marked decrease in others. By understanding its deployment patterns, the client has been able to make both immediate decisions to software license upgrades or reassignments, and long-term decisions over its future roadmap and TLA renewals.

This type of granular intelligence is being collected on an ongoing basis for all the client’s applications and hardware deployments. With multi-year information now available, it has an increasingly accurate understanding of its usage and risk, enabling it to make smarter decisions to optimize short- and long-term expenditures.

Cost savings:

Anglepoint’s ITAM strategy is delivering significant value to the retail organization, with realized cost savings of $31+ million, equating to an ROI of 308%.

Developing a mature ITAM program takes time and patience, particularly for global organizations operating vast IT infrastructures.

Software Asset Management

Anglepoint’s software asset management services provide deep license management expertise to deliver unrivaled cost savings right to your bottom line.