Technology cost optimization firm NET(net) has introduced Savings Cloud, an industry-first program that modifies a company’s technology supply chain for cost efficiency and invests the savings, the company announced on Tuesday (Jan. 7).
The savings-as-a-service program calculates a set savings capacity and aims to offer a steady return on investment (ROI) with transparent fees and benefits.
“Savings Cloud is the best way to turn your existing technology supply chain into a funding engine for innovation, not only to achieve your savings targets, but also to finance your transformation efforts,” said Steven Zolman, founder and chairman of NET(net).
He added that Savings Cloud flips the power “back to IT and finance leaders to modernize and reshape their own technology supply chains by mitigating the risk and financial exposure imposed by one-sided supplier agreements.”
The company estimates that a client with a $5 million annual IT spend will see a 500 percent return from the Savings Cloud program.
“We have been working with our strategic clients, and we believe that Savings Cloud is the technology supply chain cost optimization model that meets their evolving and future needs,” said Kellsey Le, president and CEO. “Just as we consume everyday items ‘as-a-service’, so too will our clients be able to consume savings.”
She added that with the Savings Cloud model, risks and budget friction are reduced, which changes the focus to “maximizing economic and strategic value from the technology supply chain, utilizing industry-leading practices.”
Until the Savings Cloud program, businesses didn’t have the economies of scale to tackle the challenge with known costs and benefits.
Greg Beutler, operating partner at Blackstone, has been a NET(net) client for over 10 years. He said that “creating long-term value for our investors is a cornerstone of what we do at Blackstone, so it’s only natural that we look for partners that have the same approach to their business.”
March research from UBS points to the largest spenders on bank technology: JPMorgan with an $11.4 billion tech budget and Bank of America with a $10 billion IT spending budget.
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