The Client
One of North America’s largest regional communications companies providing voice, data, internet, video and value-added business solutions across Ontario, Quebec and Eastern Canada. With over 9,000 employees and $4 billion in assets, the client generates annual revenues in excess of $2 billion.
Challenge
As part of their continuing growth and expansion, the client expected to add 750,000 new users to their business over the next 3 years. The client wanted to purchase all of their projected requirements in order to maximize available volume purchase discounts. At the same time, limitations in available operating budget dollars, plus a desire to match license costs to expected growth in users, prevented them from being able to commit to purchasing all the needed licenses now.
Solution
Central structured the transaction in a way that allowed the client to commit to the larger purchase but take delivery of the licenses over three years based on the expected increase in their user base. By transferring the licenses as users were added, Central’s solution matched the amortization and maintenance costs of the licenses to the budget cycle when the user’s licenses were actually required.
Benefits
Using SoftwareCENTRAL the client was able to take advantage of attractive pricing on a larger number of licenses while matching the budget impact of the license and maintenance costs to the expected deployment of the software as new users came online. Central’s solution allowed the customer commit to both their current and future software needs today thereby helping to lock in their commitment to CA’s platform going forward. This resulted in a 67% first year OpEx reduction.
