Cybersecurity Consolidation Case Study
How a telecommunications company used ISVCOSELL to consolidate 6 cybersecurity vendors into 2, saving $14.2M while improving security.
Key points
- The six-vendor stack represented $31.4M in annual spend: CrowdStrike (endpoint detection and response), Palo Alto Networks (NGFW and Prisma Access SASE), Zscaler (ZIA and ZPA for zero trust access), Splunk (SIEM and observability), Okta (identity and access management), and Cisco (network security, SecureX platform).
- $22.8M (, $8.6M cash + $5.6M efficiency).
- Palo Alto Networks moved from $7.8M to $7.6M on the base contract while agreeing to absorb Zscaler's zero trust access workloads under an expanded Prisma Access deployment, a $4.1M annual saving against the Zscaler contract.
- The negotiation leverage was the benchmark data: ISVCOSELL's analysis showed that Palo Alto had priced consolidated SASE+NGFW deals at an average 28% discount to separate contract pricing for comparable telco enterprises.
- CrowdStrike expanded from $6.2M to $7.4M (reflecting expanded identity threat detection scope that replaced Cisco SecureX functions), a $2.4M increase on the CrowdStrike contract but a $3.6M saving against the Cisco contract it replaced.
- Splunk absorbed Cisco Umbrella's DNS security logging at no incremental cost within their existing ingest volume commitment, and renegotiated their total from $5.9M to $4.8M against benchmark data showing a 19% premium versus peer deals.
- Okta was renegotiated from $3.8M to $3.0M on the basis of user count normalization and benchmark data from comparable enterprise identity deals.
- The total annual cybersecurity stack cost was reduced from $31.4M to $22.8M, a $8.6M direct cash saving and an additional $5.6M in operational efficiency savings from reduced vendor management, consolidated licensing administration, and elimination of integration overhead between redundant platforms.
- The CISO subsequently reported to the board that the consolidated architecture had reduced security tool alert noise by 34% and improved mean time to detect (MTTD) by eliminating duplicate alert paths from overlapping platforms.
- The carrier in this case study reduced cybersecurity spend by 45% while improving both architecture coherence and detection performance.
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Pricing data and source text from the VendorBenchmark library. Co-sell reading is this site’s.