Network Connectivity Benchmarking & Optimisation
A comprehensive network connectivity benchmarking review to evaluate the existing network service agreement and infrastructure against industry best practices and market standards.
Client Context
Challenge
Our Role
The Client is a global energy and industrial company operating across multiple continents. Its business relies on a complex wide-area network connecting dozens of sites worldwide. A single global service provider had been contracted to deliver connectivity under a multi-year master services agreement. This network was mission-critical, supporting operations across Africa, Europe, Asia, and North America. Over time, however, the Client grew concerned that its network costs were high and its flexibility limited due to an exclusive vendor arrangement.
The Client faced vendor lock-in and escalating costs in its connectivity environment. Key contract terms – including high termination fees and restrictive conditions – made it difficult to scale down or transition services without penalty. Technically, the network was built on legacy designs (predominantly MPLS links with limited use of newer software-defined networking) which, while reliable, appeared over-provisioned and inflexible.
Early analyses showed that many sites had far more bandwidth capacity than actual usage required, and expensive hardware (such as high-end firewalls) was deployed uniformly even at smaller locations. Internally, stakeholders lacked clear visibility into whether the commercial terms (pricing, billing, SLAs) were truly competitive or if the performance being delivered could be achieved in a more cost-effective way. The Client needed an objective benchmark of its network services to identify cost inefficiencies, assess contract risks, and chart a path to improve flexibility – all without compromising network performance and uptime.
The Client engaged our consulting team to conduct a comprehensive network connectivity benchmarking review. Our mandate was to evaluate the existing network service agreement and infrastructure against industry best practices and market standards. A cross-functional team of experts – in telecommunications technology, IT procurement, and contract law – was mobilised to perform a four-dimensional benchmark covering:
· Legal and contractual terms
· Commercial pricing and cost structures
· Technical architecture and design
· Service performance
The goal was to provide the Client with clear, data-driven insights and recommendations to reduce costs, increase negotiating leverage and future flexibility, and ensure the network meets the company's evolving needs.
Scope of the Engagement
Approach & Methodology
The benchmarking engagement encompassed all major aspects of the Client's global network services, with a focus on identifying gaps or inefficiencies in each area:
Network Footprint: Global WAN connectivity across ~70 sites was reviewed, including regional hubs and remote locations. This included analysis of the primary MPLS network linking data centers in three continents and the overlay of any existing SD-WAN or internet-based links.
Contracts: The master services agreement (MSA) with the incumbent network provider and its associated schedules/addendums were examined. We reviewed all relevant contractual provisions – from termination rights and fees to benchmarking clauses, service withdrawal terms, SLA commitments, and renewal conditions – to assess alignment with industry norms and to pinpoint clauses that contributed to vendor lock-in.
Costs and Pricing: The commercial terms and billing records for connectivity services were analysed. This covered recurring network charges (e.g. MPLS circuit costs, internet bandwidth fees), unit pricing per bandwidth (cost per Mbps), regional cost variations, and any ancillary fees (equipment, support, etc.). We gathered data on the Client's spend by region and service type to compare against market benchmarks.
Technical & Performance Data: The technical design and performance metrics of the network were within scope. We assessed network topology (redundancy, link counts per site), capacity utilisation levels, and key performance indicators such as availability uptime, latency, and incident rates. Existing service performance reports and SLA statistics were reviewed to gauge how well the network was performing versus both contract targets and typical industry performance levels.
This holistic scope ensured that our benchmark would not only highlight pricing or cost outliers, but also consider whether the technical setup and contract framework were appropriate and competitive. The engagement was structured to produce a set of targeted findings in each domain (legal, commercial, technical, and performance) and an integrated set of recommendations for improvement.
Our team followed a structured benchmarking methodology from initial planning through to final recommendations. Key elements of our approach included:
Planning and Data Collection
We began with a thorough planning phase, working with the Client to define objectives and gather all necessary data. This involved interviews with the Client's network engineers and procurement managers to understand the current environment, as well as collection of documents and information – including the master contract and amendments, detailed inventory of network services at each site, current invoices and cost breakdowns, and recent performance reports from the vendor. Where available, we obtained market reference data (pricing benchmarks, typical contract terms, performance statistics) to serve as a comparison baseline. Any limitations in data (for example, partial performance monitoring information) were noted so that our analysis would account for those gaps.
Multi-Dimensional Benchmarking Analysis
Our consulting team was deliberately cross-functional, enabling parallel analysis across legal, commercial, technical, and performance workstreams:
Legal & Contractual Benchmarking: Experienced IT legal advisors reviewed the contract terms against preferred industry positions. We compared clauses such as termination for convenience, penalty fees, service scope flexibility, liability caps, and benchmarking rights to what is commonly seen in similar large network service deals. This analysis identified where the Client's agreement deviated from market standards – pinpointing terms that excessively favored the vendor or limited the Client's flexibility.
Commercial Benchmarking: Procurement and financial analysts examined the cost competitiveness of the network. Leveraging our database of telecom cost benchmarks and current market pricing, we evaluated whether the rates the Client was paying (per bandwidth unit, per site, etc.) were above or below market. We also looked at cost structures (e.g. fixed vs. variable costs, currency and tax terms) and the distribution of spend across regions. The team calculated key ratios (like bandwidth per employee and cost per site) and compared them to industry averages to reveal inefficiencies such as overcapacity or unusually high unit costs.
Technical Assessment: Network architects on our team conducted a technical review of the WAN design and infrastructure. We mapped out the network architecture — including all MPLS links, internet links, and firewall deployments at each location — and assessed it against current best practices. This included evaluating the degree of redundancy, use of modern technologies (such as SD-WAN or cloud connectivity), and right-sizing equipment. The technical team identified where the network was over-engineered or outdated, and considered alternative architectures that could deliver similar performance at lower cost.
Performance Analysis: We analysed service performance data and SLAs. This involved reviewing the vendor's reported uptime statistics, latency measures, and incident reports for the network. We benchmarked the Client's service levels (e.g. ~99.8% availability achieved) against typical service provider offerings. When direct comparison data was limited, we relied on our industry experience to judge whether the network performance was in line with what the Client was paying for, and whether there were any red flags (for instance, any region consistently underperforming or SLA penalties incurred).
Synthesis and Recommendation Development
After completing the domain-specific analyses, we brought the findings together to form a coherent picture. The team identified interdependencies (for example, how contract terms might be affecting cost or flexibility, or how technical design choices were driving cost and performance outcomes). We held working sessions with the Client's stakeholders to validate findings and ensure our recommendations were practical. Finally, we formulated a set of recommendations across all four areas, prioritised by impact and ease of implementation. These recommendations were reviewed internally for quality and then presented to the Client in a detailed report and executive presentation. Throughout, we maintained a fact-based, impartial stance – the benchmarking was grounded in data and market evidence, providing the Client confidence in the objectivity of the conclusions.
Key Findings & Insights
The comprehensive benchmarking exercise yielded important findings across legal, commercial, technical, and performance dimensions. Below we summarise the key insights and their implications for the Client:
Dimension
Legal & Contractual
Commercial
Technical
Performance
Key Findings
Onerous termination fees and complex withdrawal provisions created vendor lock-in. Later amendments overrode original protections, reducing flexibility.
Cost per Mbps of MPLS bandwidth was 20-30% above market benchmarks in several regions. Significant over-provisioning of bandwidth and high-end hardware at all sites.
The network architecture was heavily MPLS-based and out-of-step with modern, agile solutions like SD-WAN. A tiered approach to infrastructure based on site criticality was not applied.
The network was performing well, with high availability and ample performance headroom.
Implications
Without changes, the Client would remain locked into the incumbent provider, unable to adapt network services or consider alternatives without incurring heavy penalties.
The Client was incurring millions in excess annual charges. Opportunities identified to renegotiate pricing and right-size services, with potential cost savings of a double-digit percentage of the total network budget.
Significant opportunity to modernize the network architecture by embracing a DIA-centric SD-WAN model, which could drastically cut dependency on costly MPLS bandwidth and improve agility.
Cost-saving measures could be implemented without recklessly compromising performance. Improved monitoring would enable better vendor management and smoother transitions to new providers.
Value Delivered & Business Impact
By engaging in this rigorous benchmarking initiative, the Client obtained actionable findings that translated into significant business value:
Identification of Major Cost Savings
The review uncovered substantial cost-saving opportunities. In aggregate, the recommendations could reduce the Client's network connectivity costs by an estimated 20–30% annually. These savings would come from multiple sources – renegotiated unit prices in line with market rates, elimination of unused or excessive bandwidth, and streamlined technology investments (such as more appropriate firewall sizing and greater use of cost-effective internet connectivity). For a network of this scale, the potential savings amounted to several million dollars per year. This level of cost optimisation directly supports the Client's strategic goal of running a leaner operation without impairing service quality.
Enhanced Strategic Flexibility
The benchmarking engagement empowered the Client with new strategic options for its network. We highlighted how the Client could leverage contract clauses (like terminating certain service elements in regions with no penalty) as an immediate negotiating tactic to extract better pricing from the incumbent vendor. More broadly, our legal and technical recommendations focused on enabling flexibility – for example, restructuring future contracts to allow partial disengagement or multi-vendor sourcing, and designing the network to integrate multiple providers or new technologies seamlessly. As a result, the Client is now positioned to avoid being "stuck" with a single vendor or a static technology solution.
Risk Mitigation and Vendor Management
Another key outcome of the engagement was greater visibility into vendor-related risks and a roadmap to mitigate them. The in-depth contractual analysis surfaced several risks that had not been fully appreciated previously – including the financial risk of the high termination penalties and the operational risk of unclear contractual language in areas like service withdrawal. By bringing these issues to light, the case study enabled the Client's leadership to take proactive steps: for instance, planning for renegotiation discussions focusing on removing or capping onerous fees, and tightening contract language to eliminate ambiguity.
Beyond these tangible benefits, the benchmarking exercise delivered an intangible boost to the Client's decision-making confidence. With a clear, objective comparison to market standards, the Client's executives and technology managers have a fact-based validation of where their network stands. This consensus and clarity enable faster, more aligned decision-making on network investments and strategy going forward.
Conclusion
This case study demonstrates the power of a comprehensive benchmarking approach in driving both cost efficiency and strategic improvement for a complex IT service like global network connectivity. By examining the Client's network through multiple lenses – contractual, commercial, technical, and performance – our team was able to uncover hidden inefficiencies and lock-in risks that would otherwise remain unnoticed in day-to-day operations. The engagement provided not just a critique of the current state, but a detailed roadmap for transformation: from renegotiating contract terms and prices, to embracing modern networking technologies that can deliver the same high performance at a lower cost.
For organisations facing similar challenges with large-scale, vendor-dependent infrastructure, this case underlines several important lessons. Regular benchmarking against market standards is essential to ensure you are receiving competitive value and not overpaying due to legacy agreements or outdated designs. Equally, maintaining flexibility – both in contracts and in technical architecture – is critical in fast-evolving technology landscapes. What was "best practice" a few years ago can quickly become suboptimal, so companies must build in the ability to adapt. In this example, the Client gained the data and insights needed to break free from an untenable status quo and to pursue a more agile, cost-effective network strategy aligned with its business objectives.
In conclusion, the holistic benchmarking methodology not only identified immediate savings for the Client, but also enabled a strategic pivot. The Client is now equipped to negotiate from a position of strength, implement cutting-edge solutions, and proactively manage vendor relationships to ensure its network serves the business – and not the other way around. This successful engagement highlights the value that expert, data-driven benchmarking can deliver to any organisation looking to optimise critical IT services while balancing cost, performance, and risk.