Reduction of Total Cost of Ownership
By efficiency, we mean the rating of how strong your tools, people, and processes are in managing your infrastructure.
On a scale of “”excellent,”” “”satisfactory,”” and “”poor,”” a tool built with a “”satisfactory”” rating will cost 20% more if it’s inefficient, and 20% less if it’s highly rated.
This is an evaluation of how good the customer’s tools, people, and processes are in managing the infrastructure.
These are detailed assumptions, but they can be easily created in Excel.
The customer enters as much information as they can, and if they can’t, they set default values.
This is the best way to involve the client in how your solution will work and how much savings it will enable.
The most important reasons for clients to move to a managed services model are
Reduction in total cost of ownership.
Therefore, I think using this tool is extremely valuable.
Even if you are thinking about some assumptions from the customer, it is a very valuable “”exercise””.
The process of considering assumptions can be very productive.
Fine-tuning the assumptions with the customer will often drive the outsourcing decision.
If the customer
feels that cost savings are not possible, it is difficult, but your position after doing this will be better than before in the minds of the client.
From the client’s point of view, depending on the executive you are dealing with, you will know how much detail you need to go over.
For some, you should proceed to stand on the underlying assumptions to increase the credibility of the analysis up front.
For others, it is a way to quickly reach a high level of output to maintain interest in the tool.
Anyway, the important thing is that the product management team members and
management team members and the delivery teamIt is important that the product management team is fully engaged.
Also, by training the sales team, the sales team members will have a very good knowledge of how to explain to the customer the effectiveness of their solution on the cost issue.
Even if the customer doesn’t want to use the TCO tool to do the analysis, you can use it to explain the cost benefits of your solution to them.
Even if the customer doesn’t want to use the TCO tool to do the analysis, they will have a good knowledge of how to explain the cost benefit of their solution to the customer. All in all, I think this is
Overall, I think this is an exercise that your team should undertake to ensure that your value proposition is cutting edge and great.
In order to successfully sell managed services
A managed services sale is always successful when the customer and the vendor see it as a mutually beneficial transaction in terms of cost and performance.