Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

RFP Saves AOL $25M

BOSTON -- StorageWorld -- If you're big enough, it can pay to get a vendor bidding war going on your behalf.

ISP America Online slashed about $25 million off its storage costs in the last two years by taking a long, hard look at its infrastructure and issuing a major request for proposal (RFP) to shake up its suppliers.

Speaking here today, Dan Pollack, the company's operations architect, said an RFP issued in 2004 sparked intense competition amongst storage vendors, paving the way for around $20 million in storage savings last year and $5 million this year. AOL has shaved 60 percent off its high-end storage expenditure alone.

"It's fairly remarkable the amount of cost reduction you get when you get past that RFP," Pollack said.

According to Pollack, a team within AOL's sourcing division came up with the idea for an RFP when they realized that a number of different vendors were trying to get a slice of the firm's business. "If your vendors are all competing at the same time, this drives costs down," he said.

  • 1