GetConnected: Renegotiation Saves $2.5 Million over Three Years

5/1/2007

Scenario
GetConnected was caught between the proverbial rock and a hard place. An existing hosting agreement for the company's legacy ecommerce platform was set to expire prior to the launch of a new platform. More than a bridge between old and new environments, the company needed a migration path and an end-game that lowered day-to-day operational overhead.

Results
With a Letter of Intent with a new vendor in place for the new hosting arrangement, Horizon quickly assessed the existing plan of action. Focusing on the operational requirements of the legacy ecommerce platform and the need to operate the new ecommerce platform more efficiently, Horizon pulled the emergency stop.

Horizon renegotiated the hosting agreement with the new vendor, changing the hosting migration to coincide with the launch of the new ecommerce platform. By eliminating an interim dual-platform environment and by utilizing the vendor's full suite of management services, Horizon lowered the overall hosting cost by nearly $2.5 million over the first three years of the agreement.

At the same time, extending the hosting contract for the legacy platform provided sufficient leverage to negotiate infrastructure and service quality improvements.

<< back