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Slide 2 Communications Lifecycle Management When TEM Grows Up Al Subbloie President and CEO Tangoe, Inc. Slide 3 January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA www.ITEXPO.com 3 An Industry Immersed in Change The industry needs carriers and enterprises Technologies causative and corrective Human behaviors Dan Quayle (1947 - ), 5/22/89 I believe we are on an irreversible trend toward more freedom and democracy - but that could change. The Components of Change Slide 4 January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA www.ITEXPO.com 4 Todays Agenda TEM A Historical Perspective A Shift Toward Lifecycle Management Technology Gone Wild Industry Drivers Greed and Fear Where Are We Headed? Slide 5 January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA www.ITEXPO.com 5 A Historical Perspective of TEM Major TEM Driver: reduce costs Industry name TEM is representative Industry roots in bill audit/volume 2 offerings emerged Outsourced only firms In sourced technology offerings Business problem exacerbates with more change Carriers, services, geographies, channels, locations, bills, etc. Slide 6 January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA www.ITEXPO.com 6 Industry Shifts are in Process Technology THE foundation of ALL solutions Consolidation bringing together technology & service co.s Internationalization forcing technology to the core 85% of market is outsourcing some functions Technology blurs the line on in vs. outsourcing Shift towards Lifecycle Management from Stovepipe TEM Bill error driver still exists to support ROI Inventory workflow centric model critical Slide 7 January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA www.ITEXPO.com 7 The Obvious TEM Value Proposition Communications spend = 3% of revenue Translates to $3M-$500M each year Corporations ONLY managing 60% of these expenses Mobile & data centric networks require greater asset mgmt Companies losing between $500K to $50M each year! Best in class companies actively manage 90% of communications spend Source: Aberdeen Group The Cost of Not Acting: TTCM Report, Nov 2006 Slide 8 January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA www.ITEXPO.com 8 TEM Challenges - Fixed Reported in: TTCM Solution Selection Report, September 2006, Aberdeen Group Visibility & Control: reporting, chargeback & dashboards Inventory asset management Invoice processing efficiencies Ability to drive overall telecom cost reductions Slide 9 January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA www.ITEXPO.com 9 Greed Savings Motivations for TEM Slide 10 January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA www.ITEXPO.com 10 The Shift to Lifecycle Management From standalone processes to an integrated communications lifecycle Bill import Dispute/credit mgmt. Bill approval Cost allocation Accrual processing Negotiated terms Negotiated rates Commit structures Tariff database Market rate DB Inventory mgmt. Invoice discovery DB Imports internal & CSRs Request management Pricing/estimating Workflow mgmt. Orders/ MACD e-Bonding Automated audit tests Exception reporting Dispute management AP/GL adjustments Slide 11 January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA www.ITEXPO.com 11 Lifecycle Management Trends One repository enterprise-wide communications management processes Integrated fixed and mobile management Global footprint for communications mgmt Solutions have deployment flexibility and scalability Software Limited MS Full BPO Single process Full lifecycle Fixed Mobile Combined Slide 12 January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA www.ITEXPO.com 12 The Mobile Technology Explosion 3 billion mobile phones in use Network coverage for > 80% of world population Each month China & India add 13M subscribers 80% of companies report plans to increase # of PDAs Research in Motion (RIM) subscribers 05 2.5 million 06 4.9 million 07 11.2 million (est.) Slide 13 January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA www.ITEXPO.com 13 TEM Challenges - Mobile 37% 38% 40% 57% 64% Application support Lack of wireless industry knowledge and expertise Data security for mobile workers Supporting devices Rapidly escalating voice & data wireless expenses Reported in: The Real Cost of Wireless Mobility Management, January 2007, Aberdeen Group Slide 14 January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA www.ITEXPO.com 14 Changing Motivations - From Greed to FEAR! 63% - do not have accurate inventory 37% - have no formal policy for device management at employee termination 44% - have no formal program to manage wireless mobility 10% - have no group responsible for wireless mobility Facts on Mobile Communications Management Slide 15 January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA www.ITEXPO.com 15 FEAR Lost Devices 11,769 devices lost in 6 month study only 2 cities! Location Mobile Phones PDA Laptop Computers Total San Francisco & Oakland 6,10230686.416 Washington & Baltimore 2,7542,2603395,353 www.checkpoint.com www.checkpoint.com * Survey conducted by DSC Analytics April 2006 to September 2006 reported in Checkpoint Software press release dated November 2006. www.checkpoint.comwww.checkpoint.com Mobile Devices Lost* Slide 16 January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA www.ITEXPO.com 16 Financial Risks Posed by Mobile Devices 03 - Morgan Stanley exec sells Blackberry for 15.50 on e-Bay made national press for data leakage and poor practices 04 GMAC has two laptops stolen. 200K customers must be warned to check for identity fraud 04 - Wells Fargo laptops stolen in rental car result in thousands of client notifications for possible fraud 05 Beers Skanska pays $4.75 million for death caused by employees operating company car phone 07 Reynolds and Reynolds lost a $21.6 M judgment for fatal accident involving employee talking on company phone while driving Slide 17 January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA www.ITEXPO.com 17 Where Are We Headed? Expense management focus continues New fear drivers emerge as dominant Data connections shift to wireless 2011, 70% of all new global voice & data client-to-LAN connections will be wireless The cost of integrating wireless into devices will plummet to < $5/ device Mobile applications instigate change MPLS and VoIP adoption will continue slower than forecasted rates Slide 18 January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA www.ITEXPO.com 18 Industry Consolidation: 2 year predictions TEM industry consolidation will continue In- and out-source hybrids Fixed/mobile integration Domestic/international capabilities race Size and scale will matter number of players Largest outsourcers have non-organic technology foundation 1 company will complete an IPO 1 large SI firm will complete an acquisition Small players will face more survival challenges Pricing will stabilize from industry consolidation - 12 mo. Slide 19 January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA www.ITEXPO.com 19 Questions and Comments Contact Information: Al Subbloie President and CEO, Tangoe, Inc E-mail: Al.subbloie@tangoe.com The global leader in fixed and mobile communications lifecycle solutions