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TCO Selling 1.0

TCO Selling 1.0. Agenda - PDT. 9:00 – 9:15 – Intros 9:15 – 9:45 – Setting up the TCO process 9:45 – 10:00 – Important TCO principals 10:00 – 10:30 – TCO & Telephony 10:30 – 11:15 – TCO & Cloud Computing 11:15 – 11:30 – Break 11:30 – 12:00 – Working the Tools 12:00 – 12:45 – InContact

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TCO Selling 1.0

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  1. TCO Selling 1.0 Intelisys Confidential – Do Not Distribute to Third Parties
  2. Agenda - PDT 9:00 – 9:15 – Intros 9:15 – 9:45 – Setting up the TCO process 9:45 – 10:00 – Important TCO principals 10:00 – 10:30 – TCO & Telephony 10:30 – 11:15 – TCO & Cloud Computing 11:15 – 11:30 – Break 11:30 – 12:00 – Working the Tools 12:00 – 12:45 – InContact 12:30 – 1:00 – Wrap-up Terrapin Solutions Confidential
  3. THANK YOU!!!! Intelisys Confidential – Do Not Distribute to Third Parties
  4. Objectives for the Day Appreciating the Value of TCO Selling How to Set up the TCO Selling process Capturing all the spend Using the TCO tools Avoiding the pitfalls Terrapin Solutions Confidential
  5. TCO Selling Why is TCO-selling So Effective? Great differentiator…few do it well. Smarter than simple comparative Removes much of the mystery of selling Powerful Trial-close in itself ABtC The process determines the outcome It saves your most valuable resource Terrapin Solutions Confidential
  6. Biolase Terrapin Solutions Confidential
  7. TCO vs. ROIWhat’s the Difference? ROI (Return on Investment) Invest now Get a return on your money over time in the form of cost reductions and productivity gains ROI is often positioned in CAPEX-oriented decisions TCO (Total Cost of Ownership) Measure what you will invest in entirety in technology over time Determine what options result in a lower TCO over a certain period TCO is often positioned in OPEX-oriented decisions Terrapin Solutions Confidential
  8. Setting Up the TCO Process Typically happens at the end of the 1st meeting…sets up the rest of the process. “As part of our consultative process, we want to see if our proposed solution has hard dollar financial justification. To do that, we complete a thorough TCO (Total Cost of Ownership) analysis. At the end of this process, the tool will simply tell us what the total financial impact will be. We find it dramatically simplifies your decision, because it will either make good financial sense, or it won’t. Does that sound reasonable?” “Excellent. To start, we want think about this process in this context. Suppose for a moment that you knew nothing about us or our solution. What would your most likely alternative be? What would your monthly and one-time expenses look like over the next 3 to 5 years? Keep that context in mind as we go through this.” The formula: Current Spend + Projected Spend = Current Path TCO Terrapin Solutions Confidential
  9. Important TCO Principles The numbers MUST come from the customer…they own it. Make no assumptions you can’t back-up and defend….know your data. If the customer is fighting the process, stop, and go back to selling the process. Remember, “Same As” is a good thing and sets expectations that can be beat. “40% of sales is Setting the Right Expectations. 40% is Meeting or Beating those Expectations. The other 20% is a mystery.” Terrapin Solutions Confidential
  10. TCO Elements - Telephony “…if you knew nothing about us…” PBX Phones Maintenance & MACs (moves, adds, changes) Installation & Training Services Telco Costs (Local, LD, Int’l, Toll-free, Lines) Bandwidth (WAN, IP, etc) Terrapin Solutions Confidential
  11. Other Telephony Considerations? Servers servers are typically replaced on 3 to 4 year refresh cycles New “PBX” solutions run on servers, i.e., Cisco, Shoretel, Avaya, etc. End-points Proprietary end-points add cost long-term, i.e., Cisco, Shoretel, Avaya, Polycom (Lync) Staffing Next-gen PBXs require certified engineering on staff, i.e., Cisco Certified Engineers are harder to staff & retain Terrapin Solutions Confidential
  12. TCO & Cloud Computing What are the Key Components? Hardware Software Utilities Labor Terrapin Solutions Confidential
  13. TCO Elements - Hardware “If you knew nothing about us or our Cloud solutions, you’d most likely do what over the next 3 to 5 years? Hardware refresh? (true even if they bought new hardware yesterday) # of PCs, MACs, Servers Type of Firewall Storage Backup Terrapin Solutions Confidential
  14. TCO Elements - Software “If you knew nothing about us ….” Windows OS update? (XP, Vista, 7) Office Professional (most common) Server Software (per server) Server CALS (per user) Exchange Server Software Exchange CALS Antivirus (i.e., Norton, McAffee…per user) Software Assurance & Maintenance Terrapin Solutions Confidential
  15. TCO Elements - Utilities What’s a kWh? (kilowatt hour) 1,000 watts for 1 hour = 1 kWh Example: 100 watt Light Bulb left on for a full month 24 hours x 30 days = 720 hours 100 x 720/1000 = 72 kWh Average price for a kWh? US Average: $0.1036 per kWh NY Area Average: $0.165 per kWh ATL Area Average: $0.104 per kWh CA Area Average: $0.145 per kWh US Energy Information Administration, July 2012 Terrapin Solutions Confidential
  16. TCO Elements – Utilities (cont) How many kWh per device? Server – 187 kWh Desktop PC – 80 kWh Laptop – 35 kWh Thin Client – 5 kWh Room Air Conditioner – 280 kWh PBX – 187 kWh “I don’t pay for power, its part of our lease.” Really? Prove the Cloud reduces your power by X, then renegotiate your lease. Terrapin Solutions Confidential
  17. TCO Elements – Labor Know your audience Tread Carefully! Terrapin Solutions Confidential
  18. TCO Elements – Labor Average IT Staffing Costs Consider the fully-burdened labor costs Payroll tax, Workmen’s Comp, Retirement Contribution, Vacation, Unemployment Insurance, Health Insurance Salary + 35% = Fully Loaded Labor Costs (average) The median expected salary for a typical IT Manager in the United States is $107,349. (www.salary.com) ($165,152 loaded) In New York, the average is $126,886 ($195,178) In Boston, the average is $120,898 ($185,996) The median expected salary for a typical Help Desk Support Tech is $42,691 In New York, the average is $53,770 ($82,723) In Boston, the average is $51,232 ($78,818) Outsourced IT Support “current benchmarked prices for full desktop support range from $54 to $70 a month, per desktop…” – www.cio.com August 2009 “85 percent of companies plan to increase or maintain their spending with Outsourced IT support providers.” – Gartner, 2010 Terrapin Solutions Confidential
  19. TCO ElementsThe Unpredictables How much does a lost or stolen laptop cost? $49,246 – Ponemon/Intel Study, April 2009 Laptop replacement cost: $1,582 Detection & escalation cost: $262 Forensics & investigation cost: $814 Data breach cost: $39,297 Intellectual property loss: $5,871 Lost productivity cost: $283 Other legal and regulatory costs: $1,117 How much does a computer virus infection cost? $5,000 per incident at minimum Assumes only 10 machines affected Great Online Calculator http://www.gordano.com/kb.htm?q=1888 Terrapin Solutions Confidential
  20. TCO ElementsThe Unpredictables What is the Cost of Downtime? The Downtime Calculator Terrapin Solutions Confidential
  21. Review the TCO Tools Downtime Calculator Cloud TCO Tool Simple TCO Tool Multi-option TCO Tool Terrapin Solutions Confidential

  22. Premise vs. Cloud Contact Center

    Total Cost of Ownership Analysis Daniel Elmer | 801.320.3340 | daniel.elmer@inContact.com
  23. ABOUT THE TCO ANALYSIS Frost & Sullivan designed TCO models to compare the costs of acquiring, operating, and maintaining contact centers over their useful lifetime. The study compared premise-based contact center systems/applications versus cloud contact center services. vs.
  24. STUDY CONSIDERATIONS Deployments: mix of single-site and multi-site Networking costs: roughly comparable for hostedand premise Systems: all hardware and operating system software components Implementation costs: system installation, configuration, routine integrations Cloud configurations: upgrades and maintenance fees included in monthly fees Premise configurations: first year’s upgrade/maintenance fees included in original sales price. For following years, fees are 18% of purchase price per year
  25. LOWER TOTAL COST OF OWNERSHIP Customer-Centric Strategies Real savings in cloud-based vs. premises-based solution Source: Frost & Sullivan, April 2011
  26. LOWER TOTAL COST OF OWNERSHIP Customer-Centric Strategies Real savings in cloud-based vs. premises-based solution Source: Frost & Sullivan, April 2011
  27. Summary of Cloud TCO | ROI Technology Costs: IT Avoidance Savings Disaster Recovery Telecom Spend Reduction Gained Efficiencies: Remote Agents | Part Time Agents (lower infrastructure costs) Screen Pops (reduced handle times) Self-Service (contact deflection) Multi-media (lower cost channels) Hiring processes (lower agent attrition) Agent Scheduling (matching agent schedules with true business demand)
  28. What troubles today’s contact center… Increasing productivity and reducing costs Providing an outstanding customer experience Flexibility Increasing revenue Handling virtual environments Preventing customer churn Moving from cost center to profit center Market pressures to run global operations Staff attrition Ongoing training Changing customer Agent engagement Mandatory cost-cutting Poor first-call-resolution rates Inability to improve performance levels Poor integration Inadequate technology Weak economy Source: CRM magazine, Feb. 2008, Donna Fluss Alex Coxon, Freelance writer for Call Centre Helper
  29. The inContact TCO Tool Source: CRM magazine, Feb. 2008, Donna Fluss Alex Coxon, Freelance writer for Call Centre Helper
  30. CONCLUSIONS Cloud contact center services delivered significantly lower TCO than comparable premise-based systems for all configurations
  31. Check Your Sanity How does your model stack up against national averages? Gartner Study – Sept 24, 2012 Average IT Spending as % of Revenue: 3.6% Average IT Spending as % of Operating Expense: 4.5% Average IT Spending per employee: $12,708 100 Employee Company spends >$1.2m year on IT $50m Company spends >$1.8m year on IT Intelisys: $360k year on IT What Spend are You Capturing? Terrapin Solutions Confidential
  32. TCO Selling - Summary Will completely separate you from the competition Done right, removes all the mystery The “Hard Close” becomes “Assumptive” A natural progression to sequence of events Takes practice and leadership Don’t short-cut it Trust the process Terrapin Solutions Confidential
  33. “This is the end my beautiful friend.” Intelisys Confidential – Do Not Distribute to Third Parties
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