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Forrester Research: Total Economic Impact of the Dell Boomi Platform

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New Forrester Study Shows Enterprises Eliminate $2.6 Million in Legacy Integration Costs With Boomi

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Forrester Research: Total Economic Impact of the Dell Boomi Platform

  1. 1. Forrester: The Total Economic Impact™ of the Dell Boomi Platform Div Manickam, Product and Solutions Marketing Director, Dell Boomi Gene Leganza, VP and Research Director, Forrester Research Julia Fadzeyeva, Consultant, Forrester Consulting 2/26/2019
  2. 2. Julia Fadzeyeva jfadzeyeva@forrester.com Gene Leganza gleganza@forrester.com Div Manickam div.manickam@dell.com
  3. 3. Agenda Why did Boomi conduct the Total Economic Impact study – Div Manickam Market Landscape and overview of the challenges – Gene Leganza Deep dive: The Total Economic Impact Of The Dell Boomi Platform – Julia Fadzeyeva Closing thoughts and Q&A
  4. 4. True iPaaS
  5. 5. Boomi platform for our customers Boomi delivers significant cost savings by reducing the need for outside consulting and integration services. – Kelley Moore Paints We save more than 200 hours per week in manual processing while delivering mistake- free, next-day shipping for customers. - Candy With Boomi Master Data Hub, our data is correct everywhere, whether it’s flowing to our HR or finance applications, or our scientific tools. – Moderna Therapeutics Boomi is easy to use and has many advanced features. We can deal with most of the situations we encounter without having to resort to custom coding. This saves us a lot of time and expense. - Engie Our vision is an integration architecture with multiple best-of breed SaaS solutions. Boomi makes that possible. - Dropbox Integrate
  6. 6. Fastest-growing cloud platform 8.2K Customers 12.5K Certifications 65K Boomers 6 Customers a day 95% Satisfaction 97% Direct Renewal
  7. 7. 7© 2018 FORRESTER. REPRODUCTION PROHIBITED. Forrester’s Take On Integration Technology Market overview
  8. 8. 8© 2018 FORRESTER. REPRODUCTION PROHIBITED. Forrester’s Take On Integration Technology › Context: Forrester’s coverage of integration technology › Fundamental characteristics of iPaaS and hybrid integration platforms › Key trend: The focus on low code
  9. 9. 9© 2018 FORRESTER. REPRODUCTION PROHIBITED. Digital businesses requires agility Source: Forrester report “A Developer's Guide To Forrester's Strategies For Integration And Digital Business Platforms.”
  10. 10. 10© 2018 FORRESTER. REPRODUCTION PROHIBITED. Integration technologies are varied and evolving Source: Forrester report “TechRadar: Integration Technologies Q2 2015.”
  11. 11. 11© 2018 FORRESTER. REPRODUCTION PROHIBITED. 2016 Research included a Vendor Landscape and 2 Waves
  12. 12. 12© 2018 FORRESTER. REPRODUCTION PROHIBITED. 2018 Research included one Now Tech and one Wave
  13. 13. 13© 2018 FORRESTER. REPRODUCTION PROHIBITED. Forrester’s Take On Integration Technology › Context: Forrester’s coverage of integration technology › Fundamental characteristics of iPaaS and hybrid integration platforms › Key trend: The focus on low code
  14. 14. 14© 2018 FORRESTER. REPRODUCTION PROHIBITED. Category definitions › In 2016, Forrester defined iPaaS as: A solution that delivers converged data and application integration capabilities, such as batch- and message-based transport, data transformation, connectivity, and orchestration, with the core engine executing exclusively in the cloud. › In 2018, Forrester defined iPaaS and hybrid integration platforms as: Technologies that simplify and reduce the cost of the development, testing, deployment, and maintenance of application and data interfaces.
  15. 15. 15© 2018 FORRESTER. REPRODUCTION PROHIBITED. Category attributes
  16. 16. 16© 2018 FORRESTER. REPRODUCTION PROHIBITED. Forrester’s Take On Integration Technology › Context: Forrester’s coverage of integration technology › Fundamental characteristics of iPaaS and hybrid integration platforms › Key trend: The focus on low code
  17. 17. 17© 2018 FORRESTER. REPRODUCTION PROHIBITED. Research on low-code platform adoption shows the trend towards self- service
  18. 18. 18© 2018 FORRESTER. REPRODUCTION PROHIBITED. Research on low-code shows clear results
  19. 19. 19© 2018 FORRESTER. REPRODUCTION PROHIBITED. What is TEI? Background and methodology
  20. 20. 20© 2018 FORRESTER. REPRODUCTION PROHIBITED. Source: The Total Economic Impact Of The Dell Boomi Platform, November 2018 “Next-level” business case justifications are increasingly important for technology investments Very important, 60% Somewhat important, 33% Somewhat unimportant, 4% Not at all important, 3% Over 90% of IT decision-makers find value in a business case TCO ROI TEI IT impact IT costs IT cost savings Business impact User efficiency Business effectiveness Risk/ uncertainty Risk mitigation Risk versus reward Strategic impact Scalability Flexibility What is an effective business case? Base: 825 IT decision-makers at North American enterprises
  21. 21. 21© 2018 FORRESTER. REPRODUCTION PROHIBITED. Source: The Total Economic Impact Of The Dell Boomi Platform, November 2018 RISKS The objective of the TEI framework is to identify all of the factors that affect an investment decision TOTAL ECONOMIC IMPACTTM (TEI) BENEFITS FLEXIBILITY COSTS
  22. 22. 22© 2018 FORRESTER. REPRODUCTION PROHIBITED. Source: The Total Economic Impact Of The Dell Boomi Platform, November 2018 Forrester took a multistep approach to evaluate the impact of the Dell Boomi platform Start Due diligence Customer interviews Create composite Create financial model Write case study Review and finalize
  23. 23. 23© 2018 FORRESTER. REPRODUCTION PROHIBITED. Source: The Total Economic Impact Of The Dell Boomi Platform, November 2018 Disclosures The audience should be aware of the following: › This document is an abridged webinar version of a full case study (Forrester Total Economic Impact of The Dell Boomi Platform, November 2018). › The study is commissioned by Dell Boomi and delivered by the Forrester Consulting group. › Forrester makes no assumptions as to the potential return on investment that other organizations will receive. Forrester strongly advises that readers should use their own estimates within the framework provided in the report to determine the appropriateness of an investment in the Dell Boomi platform. › Dell Boomi reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study and its findings and does not accept changes to the study that contradict Forrester’s findings or obscure the meaning of the study. › The customer names for the interviews were provided by Dell Boomi. › Forrester does not endorse Dell Boomi.
  24. 24. 24© 2018 FORRESTER. REPRODUCTION PROHIBITED. Executive summary High-level findings
  25. 25. 25© 2018 FORRESTER. REPRODUCTION PROHIBITED. Source: The Total Economic Impact Of The Dell Boomi Platform, November 2018. Dell Boomi provides a low-code cloud- native iPaaS that helps its customers break down information silos, shortens time to market and helps optimize the use of IT resources.
  26. 26. 26© 2018 FORRESTER. REPRODUCTION PROHIBITED. Source: The Total Economic Impact Of The Dell Boomi Platform, November 2018 Forrester has determined the following three-year impact Based on an analysis of the Dell Boomi platform customer feedback and quantified benefit, cost, risk, and flexibility factors. ROI NPV PAYBACK 307% $4.8 million within 1 year
  27. 27. 27© 2018 FORRESTER. REPRODUCTION PROHIBITED. Analysis Customer journey and key results
  28. 28. 28© 2018 FORRESTER. REPRODUCTION PROHIBITED. Source: The Total Economic Impact Of The Dell Boomi Platform, November 2018 Forrester interviewed six Dell Boomi customers SALES & MARKETING TRAVEL & TRANSPORTATION ENERGY & UTILITIES An Australian company that uses Integrate, Hub, and Flow elements of the Dell Boomi platform MEDIA & ADVERTISING A US organization that uses Integrate, Flow, Hub, and Mediate elements of the Dell Boomi platform A US organization that uses Integrate, Mediate, and Hub elements of the Dell Boomi platform A US organization that uses Integrate and Mediate elements of the Dell Boomi platform MANUFACTURING A US company that uses Integrate and Exchange elements of the Dell Boomi platform CONSTRUCTION A Canadian organization that uses Integrate, and Hub elements of the Dell Boomi platform
  29. 29. 29© 2018 FORRESTER. REPRODUCTION PROHIBITED. Source: The Total Economic Impact Of The Dell Boomi Platform, November 2018 The customers shared experiences before and after using Dell Boomi The Customer Journey KEY DRIVERS •A multitude of integration tools and lack of governance resulted in chaos. •IT organizations struggled to respond to business needs. •Decision makers could not trust the data. SOLUTION REQUIREMENTS •Break down silos across a myriad of systems. •Help developers build simple, effective, and robust integrations. •Empower IT to respond in real time to business opportunities. •Enable organizations to easily connect to external partners. •Assist organizations in deriving insights from massive amounts of data. KEY RESULTS • A unified iPaaS breaks down information silos to build a more connected business. •Shortened time-to-market for integration projects enables business improvements. •The Dell Boomi low-code and easy-to- use platform helps optimize the use of IT resources.
  30. 30. 30© 2018 FORRESTER. REPRODUCTION PROHIBITED. “Moving to a unified platform allowed us to unify our integration efforts and see the synergies that come in from this consistent approach. The acceleration in the amount of time it takes to build out an integration or deliver a major enhancement to a business process is a tremendous benefit to the business.” One interviewee shared the following key result: Director of application development, sales and marketing for consumer goods
  31. 31. 31© 2018 FORRESTER. REPRODUCTION PROHIBITED. Source: The Total Economic Impact Of The Dell Boomi Platform, November 2018 $10 billion ANNUAL REVENUE 100 SERVERS support legacy integration tools 3 IT FTEs Manage the infrastructure $110,000 Develop burdened salary 30,000 EMPLOYEES 60 DAYS To complete a typical integration $500,000 Spend on integration tools 30% Operating margin Forrester created a composite organization representative of customer interviewees
  32. 32. 32© 2018 FORRESTER. REPRODUCTION PROHIBITED. Source: The Total Economic Impact Of The Dell Boomi Platform, November 2018 The customers quantified key benefits from the Dell Boomi investment Incremental revenue contribution Improved integrations, data exchange with partners, access to data, and new workflows, resulted in $3.4 million incremental profit. Cost savings from transition to the cloud A shut down of 100 servers used for legacy integration solutions and reassigned IT staff resulted in $1.5 million. Avoided cost of legacy software By cancelling legacy software licenses the organization saved $1.1 million. Improved IT staff productivity Reduction in labor required to complete an integration project by 70% resulted in over $388K in savings.
  33. 33. 33© 2018 FORRESTER. REPRODUCTION PROHIBITED. Source: The Total Economic Impact Of The Dell Boomi Platform, November 2018 Dell Boomi unified iPaaS drove incremental revenue (gross profit) Incremental revenue – $3.4 million over three years • Each interviewed organization used the Dell Boomi platform to improve both business operations and the ways in which organizations serve their customers. • They built new integrations for internal systems, improved data exchange with partners, introduced new workflow automations, and simplified access to data and insights. • These improvements resulted in incremental revenue for their organizations. Additional revenue Operating margin Risk adjustment $2 – $10 million 30% ▼15%
  34. 34. 34© 2018 FORRESTER. REPRODUCTION PROHIBITED. Source: The Total Economic Impact Of The Dell Boomi Platform, November 2018 A transition to the cloud resulted in savings on infrastructure cost and management Cost savings from transition to the cloud – $1.5 million over three years • Prior to Dell Boomi, on premise integration tools required the infrastructure to host them. IT staff were charged with maintaining the associated infrastructure. • As a result of the full or partial migration to the cloud organizations shut down the servers used for the legacy solutions and reassigned the IT staff dedicated to infrastructure management. FTEs managing infrastructure Servers shut down Cost of one server Risk adjustment 3 IT FTEs 100 $4,999 ▼15%
  35. 35. 35© 2018 FORRESTER. REPRODUCTION PROHIBITED. Source: The Total Economic Impact Of The Dell Boomi Platform, November 2018 Retiring previous integration solutions eliminated license fees and reduced the burden on IT staff Avoided cost of legacy software – $1.1 million over three years • Prior to Dell Boomi, on premise integration tools required IT staff to maintain them. And upgrades were necessary every three years. • As a result of the full or partial migration to Dell Boomi organizations shut down the legacy solutions and reassigned the IT staff dedicated to maintenance. Cost of legacy solutions IT FTEs supporting legacy tools FTE’s time spent on maintenance Risk adjustment $500,000 2 50% ▼10%
  36. 36. 36© 2018 FORRESTER. REPRODUCTION PROHIBITED. Source: The Total Economic Impact Of The Dell Boomi Platform, November 2018 Development timelines were shortened by 70%, leading to an increase in IT staff productivity Improved IT staff productivity – $388,568 over three years • The Dell Boomi low-code environment allowed IT staff to reduce the time spent in development and testing phases, introducing new features to existing integrations. • Dell Boomi enabled IT to significantly cut integration project timelines and serve their business customers faster. Number of new integration projects Average project duration Reduction in FTE’s labor IT staff required to complete a project Productivity captured Risk adjustment 20 60 days 70% 6 50% ▼5%
  37. 37. 37© 2018 FORRESTER. REPRODUCTION PROHIBITED. Source: The Total Economic Impact Of The Dell Boomi Platform, November 2018 The ease of use for the Dell Boomi platform enables developers to wear different hats. Improved data quality facilitates decision making. A centralized platform reduces time to troubleshoot system errors. Additionally, there are benefits to using the Dell Boomi platform that the customers couldn’t quantify Unified platform contributes to a culture shift in integration work being more mindful.
  38. 38. 38© 2018 FORRESTER. REPRODUCTION PROHIBITED. Source: The Total Economic Impact Of The Dell Boomi Platform, November 2018 Customers incurred two categories of cost to use the Dell Boomi platform Fees to Dell Boomi • Fees for Dell Boomi license and support • Determined by the Boomi elements included and usage • Support amount to 25% of the platform cost. Implementation and management • 6 FTEs involved in implementation for 6 months • 2 FTEs manage the platform for 10% of their time • Organization engages Dell Boomi professional services as needed
  39. 39. 39© 2018 FORRESTER. REPRODUCTION PROHIBITED. Source: The Total Economic Impact Of The Dell Boomi Platform, November 2018 TEI analyses also includes flexibility and risk factors FLEXIBILITY Dell Boomi provides an organization with the ability to engage in future initiatives for additional benefit •The Dell Boomi cloud-native platform positions organizations for digital transformation and growth. •The low-code platform empowers citizen developers. •Dell Boomi prepares organizations for IoT and AI. IMPACT RISK Business/technology needs may not be met by investment in Dell Boomi, resulting in lower benefits •The opportunities for integration that exist at each organization. •Lack of organizational commitment to integration efforts. •Hardware / software used previously to support integration. IMPLEMENTATION RISK Proposed investment in Dell Boomi may deviate from expected requirements, resulting in higher costs •Higher complexity of the migration of the former integration solutions to Dell Boomi and the need for professional services. •Increased implementation scope.
  40. 40. 40© 2018 FORRESTER. REPRODUCTION PROHIBITED. Financial summary Three-year model
  41. 41. 41© 2018 FORRESTER. REPRODUCTION PROHIBITED. Source: The Total Economic Impact Of The Dell Boomi Platform, November 2018 Three-year model summary results ROI 307% NPV $4.8 million Payback within 1 year -$1.0 M $1.0 M $2.0 M $3.0 M $4.0 M $5.0 M $6.0 M $7.0 M Initial Year 1 Year 2 Year 3 Cash flows Total costs Total benefits Cumulative net benefits
  42. 42. QuestionsDownload the Report – https://boomi.com/content/report/the-total-economic- impact-of-the-dell-boomi-platform/

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