Business Case Analysis
Explosive traffic growth is stressing service provider’s business cases. New services including video streaming, cloud services and mobile broadband are driving network traffic demand at annual rates of 35% to 85%. At the same time service providers’ business models are changing so that there is no longer a simple linkage between traffic growth and revenue growth. This puts tremendous pressure on service providers’ cost structures, service portfolios, and pricing policies. Service providers are looking to their systems vendors for solutions that are supported by rigorous business case analysis to help them control costs and develop differentiated and profitable new services. When selecting a systems vendor, service providers look beyond simple product by product price/performance analyses to business case analyses that extend across the market ecosystem.
ACG is focused on answering why a firm would decide to use the highlighted solution and presenting the economic elements of the answer in a clearly calculated manner based on metrics that practitioners in the sector rely on and value:
1. Our analyst(s) thoroughly discuss with you the deployment scenario to use as the basis of the comparison up front so the analysis is representative and realistic. The analysis does not need to be constrained to one use case or deployment scenario; a set could be considered.
2. We identify the KPIs on which the approaches will be compared. We clarify the dimensions on which the KPIs will be summarized to show their higher level impact; for example, how much RoI, TCO or increased revenue are achieved.
3. We perform data collection necessary to construct the models. This usually involves contributions from your SME team (product managers, customer solution architects, others), sometimes a representative end customer (in confidence) and ourselves.
4. We develop the model/s in our proprietary Business Analytics Engine software and review them with you to validate accuracy and value.
ACG can position you as a leader by providing independent and unbiased business case analyses that are well respected in the industry. Our financial models are driven by our rigorous and comprehensive projections of market trends, market share and traffic growth. Our capex estimates are detailed and reflect our in-depth understanding of next-gen infrastructure. Our opex models are based upon more than 10 years of cost analyses performed for the industry’s leading systems vendors and service providers. Analyses of new revenue opportunities leverage ACG’s large database of market intelligence embodied in its subscription service offerings.
For more information about ACG’s independent and unbiased business case analysis, TCO and ROI sales tools, and whitepapers that provide quantitative support for product and service value propositions, contact Peter Fetterolf at firstname.lastname@example.org or email@example.com.