The Client
One of Canada’s largest telecommunications companies that provides a comprehensive suite of broadband communication services to residential and business customers across Canada.
Challenge
The client made the decision to replace their existing end user consumer security product with a McAfee solution. Implementation of the new solution required a roll out of over 1 million licenses over a 4-year period that would not start until the beginning of the following year. The client wanted to be able to take advantage of attractive terms being offered by McAfee on a volume commitment up front. A major requirement for the client was the ability to match the timing of the software costs against future revenue from resale of the licenses to consumers, meaning the client would need to take delivery of the licenses over time as they were deployed. In addition, they also did not want to pay maintenance on licenses until they were deployed.
Solution
Central structured an Enterprise License Agreement (ELA) using SoftwareCENTRAL that allowed the client to:
- Commit to purchasing all of the software they needed up front but not take delivery of the first licenses until the beginning of the next year. A quarterly deployment schedule thereafter over the balance of the 4-year planned rollout allowed the client to match the costs of the licenses against expected consumer adoption rates and future revenues.
- Avoid paying support on licenses they had not yet deployed by structuring the maintenance costs as a one-time charge of 15% of the value of each license paid at the time it was deployed (how the client wanted their maintenance to be charged.)
Results
Central purchased and paid for all of the 1.2 million licenses and maintenance on the licenses up-front while the client did not start taking delivery of the licenses until the next year. This resulted in a 56% first year reduction to their OpEx.
