Lync RoI Study

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I summarized the Forrester Study based on Microsoft LYNC.
It is amazing how much cost saving can be archived by using LYNC

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  • Net present value (NPV): The present or current value of (discounted) future net cash flows given an interest rate (the discount rate). A positive project NPV normally indicates that the investment should be made, unless other projects have higher NPVs. Present value (PV): The present or current value of (discounted) cost and benefit estimates given at an interest rate (the discount rate). The PV of costs and benefits feed into the total net present value of cash flows. Payback period: The breakeven point for an investment. The point in time at which net benefits (benefits minus costs) equal initial investment or cost. Return on investment (ROI): A measure of a project’s expected return in percentage terms. ROI is calculated by dividing net benefits (benefits minus costs) by costs.
  • Net present value (NPV): The present or current value of (discounted) future net cash flows given an interest rate (the discount rate). A positive project NPV normally indicates that the investment should be made, unless other projects have higher NPVs. Present value (PV): The present or current value of (discounted) cost and benefit estimates given at an interest rate (the discount rate). The PV of costs and benefits feed into the total net present value of cash flows. Payback period: The breakeven point for an investment. The point in time at which net benefits (benefits minus costs) equal initial investment or cost. Return on investment (ROI): A measure of a project’s expected return in percentage terms. ROI is calculated by dividing net benefits (benefits minus costs) by costs.
  • Lync RoI Study

    1. 1. Managing, Consulting, Implementing and Support World Class Efficiency made in GermanyinfoWAN Datenkommunikation GmbH infoWAN Asia Sdn. Bhd. © infoWAN GmbH 2010
    2. 2. RoI Calculation Study LYNC Unified Communication *)based on Forrester Study Thomas PöttMD and Senior Principal Consultant at infoWAN © infoWAN GmbH 2010
    3. 3. Content Summary TEI Framework Purpose COST Methodology BENEFITS Approach RoI Summary Key Findings Results Unified Communications Prologue © infoWAN GmbH 2010
    4. 4. Summary Business communications are increasingly complex and require workers to manage multiple devices, applications, and face-to-face interactions in an attempt to stay productively connected with one another. Workdays for many people are no longer 9 to 5; Workdays are now 24x7 and span geographic boundaries, making communication and decision-making even more difficult and much more time-sensitive. People typically list multiple phone numbers and email addresses — so rather than simplifying things, a business card actually makes connecting quite complicated. As a result, when a person wants to reach someone else, s/he typically leaves numerous messages at multiple addresses. Lync 2010 Brings Enterprise Voice, Better Collaboration Functionality, And Improved System Stability © infoWAN GmbH 2010
    5. 5. Purpose The purpose of this study is to provide decision makers with a framework to evaluate the potential financial impact of Microsoft‘s UC products on their organizations. Forrester‘s aim is to clearly show all calculations and assumptions used in the analysis. Decision maker can use this study to better understand and communicate a business case for investing in Microsoft‘s UC products © infoWAN GmbH 2010
    6. 6. Methodology For this study, Forrester employed four fundamental elements of TEI in modeling the financial framework for Microsoft‘s unified communications products. 1. Costs 2. Benefits 3. Risk 4. FlexibilityForrester Total Economic Impact™ (TEI) case study © infoWAN GmbH 2010
    7. 7. Approach Forrester used a five-step approach for this study. Forrester gathered data from existing Forrester research relative to UC and the enterprise messaging and collaboration market in general. Forrester interviewed Microsoft UC strategy and product marketing personnel in order to fully understand the potential value proposition of UC products. Forrester conducted a series of in-depth interviews with 12 organizations currently using Microsoft UC products. Forrester constructed a financial model to represent the findings gathered in the interviews. This model can be found in the TEI Framework section below. Forrester created a composite organization based on the interviews and populated the framework using data from the interviews. © infoWAN GmbH 2010
    8. 8. Key Findings ROI. Based on the interviews with the 12 existing Microsoft UC customersBenefits. Replacing private branch exchange (PBX) telephone systems, valued at nearly $500,000 over three years. Direct cost savings from Web- and teleconferencing, amounting to $1 million over three years. Reduced IT and telephony labor cost, estimated at nearly $1 million. Fewer calls to the help desk, valued at a labor cost saving of more than $190,000. Increased user productivity, conservatively assessed at more than $12 million over three years. Modest travel cost savings (and carbon footprint improvement), over and above the travel cost savings already gained from earlier UC investments, of $3.8 million. © infoWAN GmbH 2010
    9. 9. Key Findings ROI. Based on the interviews with the 12 existing Microsoft UC customersCosts. Software licenses and software assurance costs: $1.2 million over three years. Server hardware: less than $60,000. Voice terminal equipment: approximately $364,000. Internal labor for pilot and testing: $24,000. Internal training labor opportunity cost: $1.3 million. © infoWAN GmbH 2010
    10. 10. Key Findings © infoWAN GmbH 2010
    11. 11. Unified Communications ProloguePresence Information Presence information provides user status information (e.g., online, away, busy, in a meeting/call, do not disturb).Instant Messaging IM was introduced to the enterprise to provide the capability to send and receive text messages in real time over the corporate network.Web And Videoconferencing Ad hoc Web and videoconferencing made some improvements in efficiency in real-time decision- making by providing links to presence management and point-and-click conference launches.Voice Over Internet Protocol (VoIP) VoIP made it possible to communicate via telephone over an IP network using SIP protocol instead of over traditional time-division multiplexing (TDM) voice networks via PBX telephony infrastructure.One-Click Communication Early UC adopter companies looked to the prospect of having all of the means of contacting individuals immediately available using only their name.Mobility Although mobile email has been around for years, today, more mobile devices can run the mobile client for Lync 2010 © infoWAN GmbH 2010
    12. 12. TEI Framework And Methodology Four (4) fundamental elements of TEI in modeling Microsoft Lync Server 2010‘s service 1. Costs. 2. Benefits to the entire organization. 3. Flexibility. 4. Risk.. © infoWAN GmbH 2010
    13. 13. Costs Page 11 There are six main cost categories for the Lync Server 2010 UC solution. These include: 1. Server software license costs. 2. User software license costs. 3. Hardware costs (for servers and user devices). 4. Professional services from system integrators to design and deploy the system. 5. Internal IT administration costs for ongoing management and support. 6. End user training costs.. © infoWAN GmbH 2010
    14. 14. Total Costs © infoWAN GmbH 2010
    15. 15. Benefits Lync is the next level of integration with Microsoft applications and back-end apps and SharePoint apps. . . . This is a cultural change not just technology Getting the right people in attendance, doing rework in real time, cutting time to project completion. It used to take three meeting[s] to get a decision; now we are down to one It’s so much more effective and motivating.(Director, collaboration technology, global engineering conglomerate) © infoWAN GmbH 2010
    16. 16. Benefits - Cost Savings From PBXs EliminatedOr Avoided © infoWAN GmbH 2010
    17. 17. Benefits - Cost Savings From TeleconferencingServices © infoWAN GmbH 2010
    18. 18. Benefits - Cost Savings From WebConferencing Services © infoWAN GmbH 2010
    19. 19. Benefits - Savings On IT And Telephony LaborFeatures of the new Lync Server 2010 environment that contributing to IT laborsavings and higher-performing IT teams include: Call admission control (CAC). This feature aids WAN bandwidth management, routing voice over WAN and video over Internet. PowerShell scripting. Lync’s Web-based control panel (CSCP) SBA. As organizations decommission PBXs at branch offices, they can buy gateways and SBAs from multiple vendors instead of being captive to a PBX supplier.. © infoWAN GmbH 2010
    20. 20. Benefits - Savings On IT And Telephony Labor*FTE: Field Technical Engineer © infoWAN GmbH 2010
    21. 21. Benefits - Enhanced User Productivity © infoWAN GmbH 2010
    22. 22. Benefits - Travel Cost Savings © infoWAN GmbH 2010
    23. 23. LYNC – make your company „GREEN“ © infoWAN GmbH 2010
    24. 24. Result: Total Benefits — Non-Risk Adjusted © infoWAN GmbH 2010
    25. 25. Result: Cash Flow — Risk Adjusted 9,956,808$ ROI = Total Benefits / Total Cost = -------------- = 3.369 (337%) 2,954,797$ © infoWAN GmbH 2010
    26. 26. Important observations on the business value ofthe Lync 2010 investment Higher work efficiency of employees Replacing PBX telephone systems with Lync Server 2010 software. Cost reductions for Web- and teleconferencing charges. IT and help desk labor cost savings. Enhanced individual and workgroup productivity. Travel cost savings. (positive ―green‖ impact) © infoWAN GmbH 2010
    27. 27. RoI Example infoWAN Asia FY 2010 FY 2011Flights KUL - MUC 14 flights 2 flight17,000RM/ flight 238.000,00 MYR 34.000,00 MYR RoI = Benefits/ CostCall MY - GER 8 month / RM750 12 month / RM150HQ to Subsidiary 6.000,00 MYR 1.800,00 MYR Benefits = 272,800 –Time difference meeting efficiency (6-7hr MY - GER) 83,700 = 189,100 RMuntil decision 2x3 days/ mth á RM600 3x 4hr /mth á RM600 28.800,00 MYR 10.800,00 MYR Cost = 83,700 RM operational period operational period 8 month 12 month SubTotal 1:272.800,00 MYR 46.600,00 MYRCost for LYNC SERVER CAL - - MYR MYR 6.500,00 MYR 4.200,00 MYR RoI TM Net - MYR 19.200,00 MYR (12xRM1600) (12x 1 day a 226% in 12 month Admin - MYR 7.200,00 MYR RM600) - MYR 37.100,00 MYR Total Costs:272.800,00 MYR 83.700,00 MYR © infoWAN GmbH 2010
    28. 28. Thank you for your attentionPlease ask infoWAN for your company‗s RoI calculation !! © infoWAN GmbH 2010
    29. 29. Questions? Contact: info@infoWAN.de info@infoWAN.asia www.infoWAN.asia Tel: Germany: +49 (0)89 / 32 47 56 – 0 Malaysia: +60 (0)3 / 83130 – 600 Fax: Germany: +49 (0)89 / 32 47 56 – 99 Malaysia: +60 (0)3 / 83130 – 680 © infoWAN GmbH 2010

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