Lync RoI Study

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infoWAN Datenkommunikation GmbH
infoWAN Asia Sdn. Bhd.

© infoWAN GmbH 2010

RoI Calculation Study
LYNC Unified Communication

*)based on Forrester Study

Thomas Pött
MD and Senior Principal Consultant at infoWAN


Content

Summary TEI Framework
Purpose COST
Methodology BENEFITS
Approach RoI Summary
Key Findings Results
Unified Communications
Prologue


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


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


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. Flexibility

Forrester Total Economic Impact™ (TEI) case study


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.


Key Findings

ROI. Based on the interviews with the 12 existing Microsoft UC customers

Benefits.
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.


Key Findings

ROI. Based on the interviews with the 12 existing Microsoft UC customers

Costs.
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.


Key Findings


Unified Communications Prologue

Presence 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


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.

.


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.

.


Total Costs


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)


Benefits - Cost Savings From PBXs Eliminated
Or Avoided


Benefits - Cost Savings From Teleconferencing
Services


Benefits - Cost Savings From Web
Conferencing Services


Benefits - Savings On IT And Telephony Labor

Features of the new Lync Server 2010 environment that contributing to IT labor
savings 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.

.


Benefits - Savings On IT And Telephony Labor

*FTE: Field Technical Engineer


Benefits - Enhanced User Productivity


Benefits - Travel Cost Savings


LYNC – make your company „GREEN“


Result: Total Benefits — Non-Risk Adjusted


Result: Cash Flow — Risk Adjusted
9,956,808$
ROI = Total Benefits / Total Cost = -------------- = 3.369 (337%)
2,954,797$


Important observations on the business value of
the 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)


RoI Example infoWAN Asia
FY 2010 FY 2011

Flights KUL - MUC 14 flights 2 flight
17,000RM/ flight 238.000,00 MYR 34.000,00 MYR RoI = Benefits/ Cost

Call MY - GER 8 month / RM750 12 month / RM150
HQ 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 RM
until 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 MYR

Cost 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


Thank you for your attention

Please ask infoWAN for your company‗s
RoI calculation !!


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


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