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Partner Interview
Published June 18, 2024

Cogent, Lumen, Level 3: Internet Service Provider - Hyperscaler Relationship Dynamics

Executive Bio

Former Strategic Capture - Hyperscaler Division - at Lumen Technologies

Interview Transcript

Disclaimer: This interview is for informational purposes only and should not be relied upon as a basis for investment decisions. In Practise is an independent publisher and all opinions expressed by guests are solely their own opinions and do not reflect the opinion of In Practise.

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One of the things they've done is create what they call a wave tool for the salesforce. It essentially allows them to show the physical path in real time. They can create a map on the fly, display engineering latency, and show the capacity along that route in real time. They can also quote prices algorithmically for 100 gig, 10 gig, 400 gig, depending on the route miles. It automatically generates a quote, so there's no subjective judgment from the salesperson on what to charge. There might be exceptions, but how do you think customers would respond to a real-time pricing and routing tool?

Tech-savvy customers will likely appreciate it, saying, "Great, just give it to me. I don't need to talk to the salesperson." This is both good and bad. It's good because it empowers them, but it's bad because they might not negotiate if they think your price is 30% too high. In such cases, a salesperson could escalate the issue, perhaps getting a better price from a senior VP. So, while the tool enables quick responses, it also means that every discount request has to be escalated, which can delay the process. Even with a 24-hour turnaround, it might take two weeks to get to the pricing that will close the deal.

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