it optimization as-a-service - bringing transparency to the business of technology
TRANSCRIPT
Thomas Coylefounder | managing directoro 202.714.8028e [email protected]
Evan M. Goldman, Esquiremanaging partnero 443.356.6717e [email protected]
Optimization-as-a-Servicebringing transparency to the business of technology
IT is a differentiator that propels growth, profitability and valuation. TSG shows you how. This is our expertise.
IT Optimization-as-a-ServiceTECH SYNDICATE GROUP
Every company relies on customers, employees, business applications & information technology (IT)
The dependency on IT has grown exponentially…
and the role of IT in the workplace has evolved
$3.8Trillion
2014 global IT spend
increase over 2004 global IT spend
source: gartner
+55%
IT expense for some companies can be upwards of 10% of annual revenue.
IT expense climbs annually for most companies …despite the fact that prices are falling
?HOW DOES THAT
HAPPEN
the employee skills gap widens
while technology changes daily
legacy business applications and people do not.
and as corporate dependence upon IT grows
WHY IS IT SO DIFFICULT
TO MANAGE
intangible
constantly evolving
lack of context
not clearly defined
foreign terminology
employee turnover
poor system representation
?
an expense that often goes unquestioned
IT can be a costly virtual anchor that hinders growth
as most do not know what to ask – enter TSG
WHAT DOES TSG DO FOR YOU?
reduce IT infrastructure expense TSG negotiates enterprise IT expenses delivered by 3rd Party vendors
educate, align & quantifywe bridge the communication gap between business and IT leaders with financial reporting and TCO analysis
simplify vendor selectionwe know the providers, services, rates, contracts & executives
SUPPORTED
HOW DOWE DO IT?
unrivaled experienceexecutive owner of pricing & contracting for the largest global service provider of data center space and managed services
decision support toolsdrastically shorter cycles, industry leading rates, and flexible contract terms, while educating downstream resources on how to optimize execution
executive relationshipsdirect line to executive leaders at multiple global providers ensures you get the rates and support needed
we set the industry rates for IT services that every
company requires
1
we deliver results that increase valuation3
we have supported more IT infrastructure deals than any other
2
the business of IT is in our DNA
?WHO DO
WE WORK WITH?
WHAT DO WE DO
FOR
100% of your investments depend on core IT infrastructure to operate and grow your business. We drive immediate margin improvement for your portfolios by reducing third party IT vendor expenses.
We deliver results that maximize the valuation of your portfolio companies.
SHAREHOLDERS
Data Centers Colocation Space | Power
Data Network Internet Bandwidth | Private Network
Cloud & Managed Services Servers | Storage | DR
IT Infrastructure Expenses
WHAT DO WE DOFOR
We enable you to fund strategic
growth initiatives with savings we
deliver today
CXO’s
What could you do for your organization if your recurring IT expense dropped by 30%?
TSG negotiates predictable rates, flexible terms, and frictionless future ordering with 3rd party vendors - but we don’t stop there. TSG collaborates with your back office support teams to implement a framework for sustained efficiencies and most importantly, consistent visibility into your IT costs so you can accurately measure your success while growing your business and transforming IT.
We empower you to make fact based decisions thattransform your business
Technology expertise is a skill set that remains outside the scope of many business professionals. This means technology leaders are now expected to be able to manage all aspects of IT including the financial impact on the business. However, managing the business of IT is not necessarily a core competency of IT leaders. We get it. TSG is here to support IT leaders with everything you need to make swift, fact-based decisions that align with your business leader’s needs. We’ll help you obtain the lowest rates with the most flexible contract terms so you can focus on delivering transformational IT & growing your core business.
WHAT DO WE DO
FORENTERPRISE IT LEADERS
The Client – global leader in free-to-play (F2P) gaming model
The Backdrop –multiplayer games are being delivered over cloud infrastructures, requiring very low latency, and massive storage needs as player experiences can start and stop as desired and over multiple device types. The industry has been growing rapidly from new players, mobile device use and new revenue opportunities as video gaming has boomed as a spectator sport, drawing in large global sponsors targeting the demographic.
The Scenario – The equity investors intend to IPO within 18 months, the company needed more space immediately, new space in Asia, and double the existing storage to meet demand.
The Challenges – mid contract with a provider that could not meet the global reach needed and capital budget was limited.
The Result – TSG’s global partners extended rates that drastically reduced the client’s current monthly opex for colocation. The savings were ample enough to self fund a larger footprint at a new location, with access to various managed storage offerings addressing the storage concerns. The savings also enabled the phased expansion into Asia without additional budget. Additionally, TSG facilitated the migration planning, access to a private cloud to utilize while hardware was shipped to each site and negotiated contract flexibility allowing for monthly spend to be dynamic across all products including managed products. All of this without disruption to service.
cost savings of 40%case study gaming industry
Increased valuation 14% = $45M
Acme Gaming Co. Current Trend Post TSG Optimizationrevenue $100.0 $100.0IT costs ($8.0) ($4.8)
all other costs ($52.0) ($52.0)total costs ($60.0) ($56.8)
gross margin $40.0 $43.2sg&a ($17.0) ($17.0)
ebitda $23.0 $26.2
enterprise valuation $322.0 $366.8
WHAT WE NEED TO BEGIN
3rd Party IT invoices for prior monthCFO - Accounts Payable or FP&A Team Colocation, Managed Services & Network invoices. Full month of vendor PDF’s along with an excel export from accounting system – PDF’s enable TSG to see technical specs needed for benchmarking & the accounting system shows TSG the financial representation of the expense by GL code/category
current contract documentsCFO or Procurement TeamMSA’s, order forms or other documents detailing start date and term length
inflight quotes & forecasted additionsCIO or Procurement Team Any quotes for incremental infrastructure additions & planned adds for remainder of the year
NEXT STEPS
Network(internet, mpls, vpn, voip)
AT&T, CenturyLink, Verizon, Sprint, Level 3, Cogent, Cox,
Lightpath, Comcast, TW Telecom, Internap, Limelight,
XO, 360 Networks, Zayo
EXAMPLES OF 3rd PARTY PROVIDERS FOR REFERENCE
Colocation & Mgd. Services(datacenter, servers, cloud, storage, DR)
Equinix, Digital Realty Trust, Dupont Fabros, ByteGrid, RagingWire , CenturyLink,
Rackspace, Terremark/Verizon Business, Sunguard, CSC, IBM,
Internap, XO
APPENDIX
in·for·ma·tion tech·nol·o·gyNoun
Information Technology (IT) is the application of hardware, software and telecommunications equipment to store, access and transmit data in the context of an enterprise business
what is information technology?
this is an IT infrastructurea rack containing servers, storage & networking devices
1your business applications such as email, financial or HR software, customer databases, etc. exist on top of this hardware
the information is accessed over a network which is provided by a network service provider3
2 the hardware sits inside of a rack which is securely located in an offsite data center.
www.salesforce.com
when you log on to your business
application or any favorite
website
the command
travels over the internetto find the
web address
the information requested is
physically located on a server in a
secure offsite data center.
the data requested is sent back over internet and appears on your screen
2 31
4
how does IT work?what happens after you click ?
1
2Managed Services - the provider owns and manages all aspects of the IT infrastructure inclusive of space, power, hardware, monitoring & provisioning for a flat monthly recurring fee, allowing the client to focus on the core business application that resides on top of the hardware.
Colocation – the end user owns and manages the hardware of the IT infrastructure (capex). The client obtains space and power in a provider data center (opex). The data center provider is only responsible for keeping the hardware powered up and secure.
There are benefits to both IT delivery & support models. Clients that purchase colocation maintain more control over hardware choice & support, however lose scalability and expense predictability of a managed services model.
colocation vs managed servicesCAPEX vs OPEX model