19 Jul How Do You Know You’re Getting a Good Deal on Your Cisco SMARTnet Agreement?
Co-authored: Timothy J. Opelt, CEO, & Michael O’Toole, Esq., Senior VP & General Counsel , SMS Strategic Sourcing
You’ve purchased a new piece of Cisco hardware. Now your challenge begins.
If your company is like most others, you probably have literally hundreds of Cisco SMARTnet contracts that you have to renew across several instances throughout the year. Cisco’s current business practices require that each time you acquire a new piece of Cisco hardware, Cisco automatically issues a new SMARTnet contract for first year maintenance support.
By way of example, let’s say you (regularly purchasing Cisco hardware throughout the year) have 1,200 SMARTnet contracts to manage. Please know that we’ve regularly seen quantities this high, so you’re not alone. At a minimum, processing approximately 100 transactions per month requires creation and approval of a purchase requisition, through various approval levels/organizations and issuance of a purchase order for each transaction. These tasks are both time consuming and labor intensive.
When you think about the administrative burden of processing 100 transactions per month, suddenly the time and dollar costs associated with this administrative burden add up quickly. At 100 transactions per month, that amounts to approximately five transactions per day for a procurement/IT professional – which equate to approximately .75 FTEs/month/division of your company required to process the transaction(a total of 2.25 FTEs across IT, Procurement and Finance) to effectively handle your SMARTnet renewals. We don’t believe that anyone thinks this is an efficient, sensible, cost effective way to utilize your employees’ time or your company’s resources.
SMS Strategic Sourcing has a better way. We’ve developed a process by which we can:
- substantially reduce the administrative burden (and associated costs); and
- reduce your OpEx expense for Cisco SMARTnet maintenance spend.
The most important thing to remember is that our efforts don’t need to be centered around a SMARTnet renewal. We can conduct this process at any point throughout the year.
Our three-pronged approach has yielded costs savings and efficiency results that are often referred to as “music to the ears of the CIO & CFO.” If you would like to hear about our approach and how we could help your company, please contact Drew Dimatos, VP of Global Sales & Business Development at (214)773-6902.
Timothy J. Opelt, CEO, SMS Strategic Sourcing
Founder and visionary of SMS Strategic Sourcing’s business model and got-to-market strategy with over 30 years of Information Systems, Procurement, Contract Management, and Commercial Business Operations leadership with progressive, dynamic Fortune 500 corporations. Tim is a proven strategic ‘big picture’ thinker capable of forecasting and responding to industry and commercial challenges. Seasoned leader of large Procurement organizations and a ‘Trusted Advisor’ to C-Level executives delivering bottom line and top line results.
Michael O’Toole, Esq., Senior VP & General Counsel
Michael has over 18 years in legal and procurement representation and negotiation for both public and private sector business, as both in-house and outside counsel. He has proven skills in both legal and procurement negotiation to find legal, financial and business solutions for clients. In addition to negotiation skills, he has designed, implemented and managed leading-edge systems in compliance, CRM systems, vendor and contract management systems.