Connectivity Cost Reduction
Insights · Guide

How Do You Reduce Enterprise Connectivity Costs?

Most multi-site organizations overspend on connectivity by 20–40%. Here's a structured way to find the savings — and keep them.

Quick answer

To reduce enterprise connectivity costs, follow six steps: (1) audit every circuit and invoice, (2) eliminate unused or duplicate services, (3) benchmark current pricing against the market, (4) right-size bandwidth to actual usage, (5) consolidate carriers for leverage, and (6) renegotiate or re-source at renewal. Organizations commonly cut 20–40% without sacrificing performance.

Connectivity spend creeps. Circuits get added and never removed, contracts auto-renew above market, and bandwidth is sized for peaks that no longer exist. Across a multi-site estate that waste compounds quickly.

The savings are real but they require a disciplined process and market visibility most internal teams don't have time to build. The steps below are how our advisors find and lock in connectivity savings — using benchmarks across 300+ carriers in our supplier ecosystem.

Comparison

Where connectivity savings come from

LeverTypical impactHow
Eliminating wasteHighCancel unused, duplicate or forgotten circuits found in the audit
Benchmarking & renegotiationHighReset above-market contracts to current rates at renewal
Right-sizing bandwidthMediumMatch circuit speeds to real utilization, not legacy peaks
Carrier consolidationMediumConcentrate spend for volume leverage and simpler management
Technology shift (e.g. SD-WAN)Medium-HighReplace premium MPLS with broadband/fiber + SD-WAN
Step by step

How to Reduce Enterprise Connectivity Costs

Audit every circuit and invoice

Build a complete inventory of circuits, locations, speeds, contracts and costs — the foundation for every saving.

Eliminate unused and duplicate services

Cancel circuits no longer in use, duplicated after migrations, or tied to closed sites.

Benchmark pricing against the market

Compare current rates to what the same service costs today across the carrier market.

Right-size bandwidth to actual usage

Adjust circuit speeds to real utilization instead of legacy peaks you no longer hit.

Consolidate carriers for leverage

Concentrate spend to unlock volume pricing and simplify management and support.

Renegotiate or re-source at renewal

Use benchmarks and competitive options to reset pricing and terms — or switch.

Sabertooth market take

Connectivity contracts quietly drift 20–40% above market.

In our sourcing work across our 300+ carrier ecosystem, the single biggest source of savings isn't switching carriers — it's the audit. Forgotten and duplicate circuits, plus contracts that auto-renewed above current market rates, routinely account for the largest line-item recoveries before a single provider is changed.

Sabertooth Advisory original observation, based on enterprise connectivity sourcing engagements.
People also ask

Frequently asked questions

Most multi-site organizations cut 20–40% of connectivity spend through a disciplined audit, benchmarking and renegotiation — often without changing carriers. The exact figure depends on how long contracts have drifted above market and how much unused service exists.
No. The largest savings usually come from eliminating waste and renegotiating existing contracts to current market rates. Switching is one lever among several, used only when it genuinely benefits you.
We benchmark against current pricing across 300+ carriers in our supplier ecosystem, so we can compare your contracts to what the same service costs today — visibility most internal teams can't easily build.
Ideally 3–6 months before contract renewals, so there's time to benchmark, negotiate or re-source without pressure. But an audit pays off any time — unused circuits and over-provisioned bandwidth can be cut immediately.
Most engagements carry no direct advisory fee — you contract with the chosen carrier at competitive rates, and our sourcing and negotiation come at no added cost. For complex strategic work we scope any fees transparently up front.
Sources & further reading: FCC — broadband and pricing data · Gartner — network cost optimization research · IDC — enterprise connectivity spend
Talk to a Trusted Technology Advisor

Want an independent answer for your situation?

Get a free technology assessment. We benchmark your options across our 300+ supplier ecosystem — vendor-neutral, no pressure, no lock-in.