In June 2011, IBM commissioned Forrester Consulting to examine the total economic impact and potential return on investment (ROI) that enterprises may realize by deploying Storwize V7000. The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of Storwize V7000 on their organizations. Storwize V7000 is a virtualized storage system designed to consolidate block and file workloads into a single storage system for simplicity of management, reduced cost, highly scalable capacity, performance, and high availability.
In June 2011, IBM commissioned Forrester Consulting to examine the total economic impact and potential return on investment (ROI) enterprises may realize by deploying System Storage SAN Volume Controller (SVC). The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of System Storage SAN Volume Controller on enterprise organizations. SVC is designed to simplify and centralize storage infrastructure and offer benefits of storage virtualization for large enterprises.
This document analyzes the total economic impact of deploying VMware Virtual Desktop Infrastructure (VDI) for a healthcare customer. Key findings include:
- The customer achieved a 122% ROI over 4 years, with an 8 month payback period, through savings from reduced PC and support costs, increased productivity, and electricity savings.
- Benefits were quantified for PC replacement savings, reduced IT support staff needs, improved worker productivity, and electricity savings from thin clients. Additional qualitative benefits included improved security, user experience, and business continuity.
- Over 4 years, the total benefits were $3.8 million compared to total costs of $1.7 million, for a net savings of over $2 million
For The Executive With Plant Productivity Problems FinalMark J Cundiff
The document discusses outsourcing maintenance to improve plant productivity and reduce costs. It notes that maintenance is an unavoidable expense that companies can influence to boost productivity. However, most companies do not know where their biggest productivity losses are or how their maintenance performance compares to industry leaders. Outsourcing maintenance to ABB through their Full Service program aims to fix maintenance issues, improve reliability and performance, reduce energy costs, and change maintenance culture for long-term benefits. ABB claims their process and global expertise can help plants achieve productivity and cost goals.
This document discusses various options for financing water and energy efficiency projects, including energy performance contracts with Energy Service Companies (ESCOs). It provides details on what an ESCO is and the types of energy performance contract models (guaranteed savings and shared savings). Case studies from Tamil Nadu, India demonstrate how performance contracts can be implemented successfully in the public sector through partnerships with financial institutions and utilities to address financing issues and payment guarantees. Project appraisals for seeking financing typically include promoter, technical, financial, and environmental evaluations.
"Enterprise applications support the daily operations of a business, which means that
they are vital to its ability to generate revenue and profit growth — and to account for
it. Whether those applications support a supply chain, general accounting, personnel
management, or customer relationship management, they must be available to end
users and must be accessible enough to create ""snapshots"" of the business on a
daily, hourly, or, in some cases, near-real-time basis."
Learn how all flash needs end to end Storage efficiency. For more information on IBM FlashSystem, visit http://ibm.co/10KodHl.
Visit http://bit.ly/KWh5Dx to 'Follow' the official Twitter handle of IBM India Smarter Computing.
This IBM Redpaper provides a brief overview of OpenStack and a basic familiarity of its usage with the IBM XIV Storage System Gen3. The illustration scenario that is presented uses the OpenStack Folsom release implementation IaaS with Ubuntu Linux servers and the IBM Storage Driver for OpenStack. For more information on IBM Storage Systems, visit http://ibm.co/LIg7gk.
Visit http://bit.ly/KWh5Dx to 'Follow' the official Twitter handle of IBM India Smarter Computing.
In June 2011, IBM commissioned Forrester Consulting to examine the total economic impact and potential return on investment (ROI) enterprises may realize by deploying System Storage SAN Volume Controller (SVC). The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of System Storage SAN Volume Controller on enterprise organizations. SVC is designed to simplify and centralize storage infrastructure and offer benefits of storage virtualization for large enterprises.
This document analyzes the total economic impact of deploying VMware Virtual Desktop Infrastructure (VDI) for a healthcare customer. Key findings include:
- The customer achieved a 122% ROI over 4 years, with an 8 month payback period, through savings from reduced PC and support costs, increased productivity, and electricity savings.
- Benefits were quantified for PC replacement savings, reduced IT support staff needs, improved worker productivity, and electricity savings from thin clients. Additional qualitative benefits included improved security, user experience, and business continuity.
- Over 4 years, the total benefits were $3.8 million compared to total costs of $1.7 million, for a net savings of over $2 million
For The Executive With Plant Productivity Problems FinalMark J Cundiff
The document discusses outsourcing maintenance to improve plant productivity and reduce costs. It notes that maintenance is an unavoidable expense that companies can influence to boost productivity. However, most companies do not know where their biggest productivity losses are or how their maintenance performance compares to industry leaders. Outsourcing maintenance to ABB through their Full Service program aims to fix maintenance issues, improve reliability and performance, reduce energy costs, and change maintenance culture for long-term benefits. ABB claims their process and global expertise can help plants achieve productivity and cost goals.
This document discusses various options for financing water and energy efficiency projects, including energy performance contracts with Energy Service Companies (ESCOs). It provides details on what an ESCO is and the types of energy performance contract models (guaranteed savings and shared savings). Case studies from Tamil Nadu, India demonstrate how performance contracts can be implemented successfully in the public sector through partnerships with financial institutions and utilities to address financing issues and payment guarantees. Project appraisals for seeking financing typically include promoter, technical, financial, and environmental evaluations.
"Enterprise applications support the daily operations of a business, which means that
they are vital to its ability to generate revenue and profit growth — and to account for
it. Whether those applications support a supply chain, general accounting, personnel
management, or customer relationship management, they must be available to end
users and must be accessible enough to create ""snapshots"" of the business on a
daily, hourly, or, in some cases, near-real-time basis."
Learn how all flash needs end to end Storage efficiency. For more information on IBM FlashSystem, visit http://ibm.co/10KodHl.
Visit http://bit.ly/KWh5Dx to 'Follow' the official Twitter handle of IBM India Smarter Computing.
This IBM Redpaper provides a brief overview of OpenStack and a basic familiarity of its usage with the IBM XIV Storage System Gen3. The illustration scenario that is presented uses the OpenStack Folsom release implementation IaaS with Ubuntu Linux servers and the IBM Storage Driver for OpenStack. For more information on IBM Storage Systems, visit http://ibm.co/LIg7gk.
Visit http://bit.ly/KWh5Dx to 'Follow' the official Twitter handle of IBM India Smarter Computing.
The Total Economic Impact™ Of Cisco Data Virtualizationxband
Cisco commissioned Forrester Consulting to conduct a study on the total economic impact of Cisco's data virtualization solution. Forrester interviewed customers who had been using Cisco Data Virtualization for multiple years. The key findings were:
1) Customers experienced cost savings from IT project cost avoidance and reduced IT operating costs, as well as increased productivity from empowering employees to access data more quickly.
2) For a representative 20,000 employee organization, the benefits over 3 years included $1.3 million in IT project cost savings, $3.8 million from increased productivity, and 50% reduction in IT operating costs.
3) The costs included an initial $600,000 software license and $320,000
The Total Economic Impact of Equinix Interconnection SolutionsEquinix
This document summarizes a study commissioned by Equinix to analyze the total economic impact and potential return on investment from using Equinix interconnection solutions. It interviewed several Equinix customers and constructed a composite organization based on their experiences. The key findings were that the composite organization experienced a 300% return on investment over three years, with $17 million in net benefits from improved application performance, cost savings, and new revenue opportunities enabled by Equinix. The benefits outweighed the upfront and ongoing Equinix costs and internal implementation expenses.
Forrester: Total Economic Impact Study - InterconnectionEquinix
This document summarizes a study commissioned by Equinix to analyze the total economic impact and potential return on investment of using Equinix interconnection solutions. It interviewed several Equinix customers and constructed a composite organization based on their experiences. The key findings are that the composite organization experienced a 300% return on investment over three years, with $17 million in net present value from benefits like increased revenue, time savings, cost savings, and fewer outages compared to costs of Equinix fees, infrastructure investments, and implementation/management resources. The study methodology involved interviews and financial modeling using Equinix customer data to evaluate the potential benefits, costs, flexibility, and risks associated with an Equinix implementation.
The document is a Forrester Consulting study on the total economic impact of IBM UrbanCode. It includes interviews with four IBM UrbanCode customers representing industries such as banking, insurance, and financial services. The interviews found that with IBM UrbanCode, organizations were able to reduce deployment times by up to 75%, improve application development productivity by at least 15%, and lower costs by reducing failed deployments. A composite organization analysis estimates a 482% return on investment and $3.1M in net benefits over three years from deploying IBM UrbanCode.
› Benefits associated with Epicor ERP — $3,826,700. The Organization experienced productivity improvements and cost avoidance over five years through Epicor's various suites, including: financial management ($602,500), supply chain ($861,900), production management ($374,300), planning and scheduling ($185,300), sales management ($775,000), governance ($567,200), and business architecture ($460,600).
› Costs associated with Epicor ERP — $1,884,500. The Organization incurred costs over five years for implementation ($350,000), hardware ($100,000), Epicor software/services ($373,100), and ongoing management ($1,061,400
Nintex Workflow for Sharepoint - Return on Investment Whitepaper by Forrester...David J Rosenthal
Nintex commissioned Forrester Research to conduct aTotal
Economic Impact™ (TEI) study and examine the potential
return on investment (ROI) that enterprises may realize by
deploying Nintex’s workflow platform. The purpose of this
study is to provide readers with a framework to evaluate the
potential financial impact of using the Nintex workflow platform
within their organizations.
To better understand the benefits, costs, and risksassociated
with the implementation of the Nintex workflow platform, which we will refer to as the Platform, Forrester interviewed several
customers with multiple years of experience using Nintex Workflow and Nintex Forms. These customers recognize the value
inherent in automating processes. Their colleagues and customers are working both in offices and on mobile devices and
are spread across many countries. Content necessaryto collaborate and make business decisions is stored in many
applications across these devices. They have some well-defined processes, but the steps leading up to these processes or
to connect closely related processes are loosely defined and manual. With Nintex Workflow, customers can automate their
processes and create workflows that connect their people, processes, and content. With Nintex Forms, Nintex provides an
easy way to collect data from colleagues and customers within the workflow. Using Nintex Mobile, customers can extend
these workflows to users who are on the go. With Nintex Connectors, customers can easily integrate cloud services and lineof-business applications into their workflows.
Prior to using the Platform, these customers were mostly relying on custom code to automate processes. However, it was
difficult and time-consuming to build workflows, and many processes remained manual (e.g. paper-based,email, excel files)
while a backlog of requests for automation grew. This left customers frustrated with process inefficiencies and the inability to
automate faster. With the Platform, customers are able to automate processes in pace with demand, connect the right
people and data in each process, and easily make changes to workflows as processes change. This results in increased
productivity for end users and IT, reduced costs associated with automation, better collaboration, and higher quality of work.
Webinar featuring Forrester TEI study: Driving 496% ROI with Tasktop VizTasktop
Business and IT leaders are under constant pressure to deliver outstanding customer experiences, fueled by technology and innovation, at the speed of the market and at a competitive cost.
To better understand how Tasktop Viz™ can connect enterprise transformation initiatives with financial benefits, Tasktop commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential ROI enterprises may benefit from by deploying the Tasktop Viz value stream management solution. What the study found was significant, with Tasktop Viz users experiencing up to 496% ROI over three years.
In this on-demand webinar, Tasktop CPO, Nicole Bryan, and guest speaker, Forrester Senior Consultant, Sam Conway, discuss the findings of the TEI study and what implementing Tasktop Viz could mean for your business.
Microsoft India - Total Economic Impact of Microsoft SQL Server 2008 Upgrade ...Microsoft Private Cloud
Conducting in-depth interviews with an existing SQL customer that upgraded to SQL Server 2008, Forrester found that the organization achieved benefits, some easily measured for this ROI study and others, equally as valuable, that could not be quantified. Specifically, the benefits fall into the following categories: 1) avoided adding SQL Server 2008 servers – license and hardware savings; 2) avoided adding storage; 3) eliminated third-party software; 4) avoided hiring additional IT employees; 5) increased user productivity – business and IT; 6) improved database performance
and provided enhanced features; 7) improved data security; and 8) improved working experience for the database administration team. Only the first five benefits were quantified as part of the ROI
analysis. To fully understand the potential effect on their organizations, readers should consider all benefits, whether or not they could be quantified for this study.
The document summarizes the findings of a study on the total economic impact of TANDBERG videoconferencing solutions for a composite organization based on an interview with Exelon Corporation. Key findings include:
1) The ROI for the composite organization was estimated to be 37% with a payback period of 2.22 years based on benefits of reduced travel costs, improved business process efficiency, and improved training effectiveness, partially offset by costs of equipment, support, and maintenance.
2) Exelon saw benefits from tighter collaboration between distributed groups and improved specific processes like M&A through the use of TANDBERG solutions running over its IP network.
3) The composite organization spent
Microsoft India - Unified Communications The Total Economic Impact of Microso...Microsoft Private Cloud
In October 2009, Microsoft commissioned Forrester Consulting to examine the total economic impact and potential return on investment (ROI) enterprises may realize by deploying Microsoft Exchange 2010. Microsoft Exchange 2010 is the newest release of Microsoft’s messaging and collaborative server software solution featuring email, voicemail, calendaring, contacts, and tasks; support for mobile and Web-based access to information; and support for data storage. This study illustrates the financial impact of deploying Microsoft Exchange 2010 for a retail and distribution organization of 1,500 employees and $450 million in annual revenue. In conducting in-depth interviews with nine existing customers, Forrester found that these companies achieved cost avoidance of storage, reduced cost of high availability, cost avoidance in voicemail, savings in backup systems, fewer help desk calls, cost avoidance of mobility, enhanced communication security, and simplified compliance and legal discovery, among other benefits.
The Total Economic Impact Of NetApp Solutions For Cloud Service ProvidersNetApp
This document is a Forrester Consulting study on the total economic impact of NetApp solutions for cloud service providers. It analyzes the potential financial benefits for a composite service provider organization that develops cloud-based storage-as-a-service using NetApp's platform. The study finds that the composite organization was able to successfully build and profitably grow its cloud services business using NetApp. It achieved benefits such as scalability, data security, storage efficiencies, and partnerships that helped reduce costs and increase revenues over three years.
Microsoft Unified Communications - The Total Economic Impact TM Of Microsoft ...Microsoft Private Cloud
In October 2009, Microsoft commissioned Forrester Consulting to examine the total economic impact and potential return on investment (ROI) enterprises may realize by deploying Microsoft Exchange 2010. Microsoft Exchange 2010 is the newest release of Microsoft‟s messaging and collaborative server software solution featuring email, voicemail, calendaring, contacts, and tasks; support for mobile and Web-based access to information; and support for data storage. This study illustrates the financial impact of deploying Microsoft Exchange 2010 for a retail and distribution organization of 1,500 employees and $450 million in annual revenue.
This document presents a framework for measuring the business value of IT investments. It defines business value as the financial benefits realized by an organization from IT solutions in areas such as cost savings, revenue increases, operational efficiencies and competitive advantages.
The framework includes identifying relevant "value dials" or metrics to quantify the benefits of a proposed IT initiative. It also introduces the concept of a Business Value Index to evaluate initiatives based on their estimated financial returns and impact on IT efficiency.
Two case studies are presented to demonstrate how the framework can be applied to evaluate proposed IT projects and justify their expected business value in order to secure approval and funding.
This document summarizes a Total Economic Impact study commissioned by Cleversafe to analyze the potential return on investment of using Cleversafe object storage.
The study interviewed an existing Cleversafe customer that previously used RAID storage for 6 petabytes of data, requiring 15 petabytes of raw storage. By moving to Cleversafe, the customer reduced raw storage needs to 7.2 petabytes while maintaining equivalent data protection.
The analysis found that over three years, Cleversafe storage costs were 72% lower than equivalent RAID solutions, with a three-year investment in Cleversafe of over $6 million replacing a $21.9 million RAID configuration. Total benefits included over $15.8 million
Microsoft Word - TEI of Alfresco - Final 2011-12-02.docxAmplexorDemo
This document summarizes a Forrester Consulting study on the total economic impact of using Alfresco's enterprise content management solution. The study found that a composite organization realized a 53% return on investment over three years, with payback achieved within 10 months of going live. Key benefits included avoided software license costs of $792,000, IT maintenance cost savings of $244,000, and cost savings from using less expensive developer resources rather than specialized ECM consultants. The flexible and open source Alfresco solution provided integration, development and operational efficiencies.
Microsoft Word - TEI of Alfresco - Final 2011-12-02.docxAmplexorDemo
This document summarizes the findings of a Forrester Consulting study on the total economic impact of implementing Alfresco's enterprise content management solution. Forrester interviewed four Alfresco customers and constructed a composite organization based on their experiences. The key findings were:
1) The composite organization realized a 53% ROI over three years, paying back implementation costs in 10 months, through benefits like avoided software licensing fees and reduced IT maintenance costs.
2) Total benefits were $1.3M over three years versus total costs of $862K, resulting in a net present value of $454K.
3) Customers chose Alfresco for its flexibility, cost efficiency, and ability to support large user
This document summarizes the key findings of a Forrester Consulting study on the total economic impact of implementing the Sage X3 enterprise resource planning (ERP) solution. The study found that the composite organization experienced total benefits of $1.7M over three years versus costs of $621K, resulting in a net present value of $1.1M and a return on investment of 177%. Major benefit categories included labor savings from improved financial management, purchasing, sales management, inventory management, customer service, and manufacturing management.
Forrester On Using Subversion to Optimize Globally Distributed DevelopmentWANdisco Plc
This webinar discusses the findings of a recently commissioned Forrester Consulting Total Economic ImpactTM (TEI) study of WANdisco's SVN MultiSite. Forrester's TEI methodology measures costs and cost reduction and weighs the enabling value of a technology in increasing the effectiveness of overall business processes. The subject of the study was a Fortune 500 company with annual revenues of over $5 billion, with SVN MultiSite in production in the US, UK, and India. Forrester concluded that SVN MultiSite generated a return on investment (ROI) of 357% with a payback period of less than 2 months.
The Total Economic Impact of NetApp's Storage Solutions For Server Virtualiza...NetApp
In late 2011, Forrester Research started work on a research project commissioned by NetApp that focused on examining the potential return on investment (ROI) enterprises may realize by adopting NetApp’s storage solutions for server virtualization in conjunction with VMware’s ESX Server virtualization platform.
Learn about vSphere Storage API for Array Integration on the IBM Storwize family. IBM Storwize V7000 Unified combines the block storage capabilities of Storwize V7000 with file storage capabilities into a single system for greater ease of management and efficiency. For more information on IBM Storage Systems, visit http://ibm.co/LIg7gk.
Visit http://bit.ly/KWh5Dx to 'Follow' the official Twitter handle of IBM India Smarter Computing.
Learn about IBM FlashSystem 840 and its complete product specification in this Redbook. FlashSystem 840 provides scalable performance for the most demanding enterprise class applications. IBM FlashSystem 840 accelerates response times with IBM MicroLatency to enable faster decision making. For more information on IBM FlashSystem, visit http://ibm.co/10KodHl.
Visit http://on.fb.me/LT4gdu to 'Like' the official Facebook page of IBM India Smarter Computing.
More Related Content
Similar to Total Economic Impact™ Study of IBM Storwize V7000
The Total Economic Impact™ Of Cisco Data Virtualizationxband
Cisco commissioned Forrester Consulting to conduct a study on the total economic impact of Cisco's data virtualization solution. Forrester interviewed customers who had been using Cisco Data Virtualization for multiple years. The key findings were:
1) Customers experienced cost savings from IT project cost avoidance and reduced IT operating costs, as well as increased productivity from empowering employees to access data more quickly.
2) For a representative 20,000 employee organization, the benefits over 3 years included $1.3 million in IT project cost savings, $3.8 million from increased productivity, and 50% reduction in IT operating costs.
3) The costs included an initial $600,000 software license and $320,000
The Total Economic Impact of Equinix Interconnection SolutionsEquinix
This document summarizes a study commissioned by Equinix to analyze the total economic impact and potential return on investment from using Equinix interconnection solutions. It interviewed several Equinix customers and constructed a composite organization based on their experiences. The key findings were that the composite organization experienced a 300% return on investment over three years, with $17 million in net benefits from improved application performance, cost savings, and new revenue opportunities enabled by Equinix. The benefits outweighed the upfront and ongoing Equinix costs and internal implementation expenses.
Forrester: Total Economic Impact Study - InterconnectionEquinix
This document summarizes a study commissioned by Equinix to analyze the total economic impact and potential return on investment of using Equinix interconnection solutions. It interviewed several Equinix customers and constructed a composite organization based on their experiences. The key findings are that the composite organization experienced a 300% return on investment over three years, with $17 million in net present value from benefits like increased revenue, time savings, cost savings, and fewer outages compared to costs of Equinix fees, infrastructure investments, and implementation/management resources. The study methodology involved interviews and financial modeling using Equinix customer data to evaluate the potential benefits, costs, flexibility, and risks associated with an Equinix implementation.
The document is a Forrester Consulting study on the total economic impact of IBM UrbanCode. It includes interviews with four IBM UrbanCode customers representing industries such as banking, insurance, and financial services. The interviews found that with IBM UrbanCode, organizations were able to reduce deployment times by up to 75%, improve application development productivity by at least 15%, and lower costs by reducing failed deployments. A composite organization analysis estimates a 482% return on investment and $3.1M in net benefits over three years from deploying IBM UrbanCode.
› Benefits associated with Epicor ERP — $3,826,700. The Organization experienced productivity improvements and cost avoidance over five years through Epicor's various suites, including: financial management ($602,500), supply chain ($861,900), production management ($374,300), planning and scheduling ($185,300), sales management ($775,000), governance ($567,200), and business architecture ($460,600).
› Costs associated with Epicor ERP — $1,884,500. The Organization incurred costs over five years for implementation ($350,000), hardware ($100,000), Epicor software/services ($373,100), and ongoing management ($1,061,400
Nintex Workflow for Sharepoint - Return on Investment Whitepaper by Forrester...David J Rosenthal
Nintex commissioned Forrester Research to conduct aTotal
Economic Impact™ (TEI) study and examine the potential
return on investment (ROI) that enterprises may realize by
deploying Nintex’s workflow platform. The purpose of this
study is to provide readers with a framework to evaluate the
potential financial impact of using the Nintex workflow platform
within their organizations.
To better understand the benefits, costs, and risksassociated
with the implementation of the Nintex workflow platform, which we will refer to as the Platform, Forrester interviewed several
customers with multiple years of experience using Nintex Workflow and Nintex Forms. These customers recognize the value
inherent in automating processes. Their colleagues and customers are working both in offices and on mobile devices and
are spread across many countries. Content necessaryto collaborate and make business decisions is stored in many
applications across these devices. They have some well-defined processes, but the steps leading up to these processes or
to connect closely related processes are loosely defined and manual. With Nintex Workflow, customers can automate their
processes and create workflows that connect their people, processes, and content. With Nintex Forms, Nintex provides an
easy way to collect data from colleagues and customers within the workflow. Using Nintex Mobile, customers can extend
these workflows to users who are on the go. With Nintex Connectors, customers can easily integrate cloud services and lineof-business applications into their workflows.
Prior to using the Platform, these customers were mostly relying on custom code to automate processes. However, it was
difficult and time-consuming to build workflows, and many processes remained manual (e.g. paper-based,email, excel files)
while a backlog of requests for automation grew. This left customers frustrated with process inefficiencies and the inability to
automate faster. With the Platform, customers are able to automate processes in pace with demand, connect the right
people and data in each process, and easily make changes to workflows as processes change. This results in increased
productivity for end users and IT, reduced costs associated with automation, better collaboration, and higher quality of work.
Webinar featuring Forrester TEI study: Driving 496% ROI with Tasktop VizTasktop
Business and IT leaders are under constant pressure to deliver outstanding customer experiences, fueled by technology and innovation, at the speed of the market and at a competitive cost.
To better understand how Tasktop Viz™ can connect enterprise transformation initiatives with financial benefits, Tasktop commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential ROI enterprises may benefit from by deploying the Tasktop Viz value stream management solution. What the study found was significant, with Tasktop Viz users experiencing up to 496% ROI over three years.
In this on-demand webinar, Tasktop CPO, Nicole Bryan, and guest speaker, Forrester Senior Consultant, Sam Conway, discuss the findings of the TEI study and what implementing Tasktop Viz could mean for your business.
Microsoft India - Total Economic Impact of Microsoft SQL Server 2008 Upgrade ...Microsoft Private Cloud
Conducting in-depth interviews with an existing SQL customer that upgraded to SQL Server 2008, Forrester found that the organization achieved benefits, some easily measured for this ROI study and others, equally as valuable, that could not be quantified. Specifically, the benefits fall into the following categories: 1) avoided adding SQL Server 2008 servers – license and hardware savings; 2) avoided adding storage; 3) eliminated third-party software; 4) avoided hiring additional IT employees; 5) increased user productivity – business and IT; 6) improved database performance
and provided enhanced features; 7) improved data security; and 8) improved working experience for the database administration team. Only the first five benefits were quantified as part of the ROI
analysis. To fully understand the potential effect on their organizations, readers should consider all benefits, whether or not they could be quantified for this study.
The document summarizes the findings of a study on the total economic impact of TANDBERG videoconferencing solutions for a composite organization based on an interview with Exelon Corporation. Key findings include:
1) The ROI for the composite organization was estimated to be 37% with a payback period of 2.22 years based on benefits of reduced travel costs, improved business process efficiency, and improved training effectiveness, partially offset by costs of equipment, support, and maintenance.
2) Exelon saw benefits from tighter collaboration between distributed groups and improved specific processes like M&A through the use of TANDBERG solutions running over its IP network.
3) The composite organization spent
Microsoft India - Unified Communications The Total Economic Impact of Microso...Microsoft Private Cloud
In October 2009, Microsoft commissioned Forrester Consulting to examine the total economic impact and potential return on investment (ROI) enterprises may realize by deploying Microsoft Exchange 2010. Microsoft Exchange 2010 is the newest release of Microsoft’s messaging and collaborative server software solution featuring email, voicemail, calendaring, contacts, and tasks; support for mobile and Web-based access to information; and support for data storage. This study illustrates the financial impact of deploying Microsoft Exchange 2010 for a retail and distribution organization of 1,500 employees and $450 million in annual revenue. In conducting in-depth interviews with nine existing customers, Forrester found that these companies achieved cost avoidance of storage, reduced cost of high availability, cost avoidance in voicemail, savings in backup systems, fewer help desk calls, cost avoidance of mobility, enhanced communication security, and simplified compliance and legal discovery, among other benefits.
The Total Economic Impact Of NetApp Solutions For Cloud Service ProvidersNetApp
This document is a Forrester Consulting study on the total economic impact of NetApp solutions for cloud service providers. It analyzes the potential financial benefits for a composite service provider organization that develops cloud-based storage-as-a-service using NetApp's platform. The study finds that the composite organization was able to successfully build and profitably grow its cloud services business using NetApp. It achieved benefits such as scalability, data security, storage efficiencies, and partnerships that helped reduce costs and increase revenues over three years.
Microsoft Unified Communications - The Total Economic Impact TM Of Microsoft ...Microsoft Private Cloud
In October 2009, Microsoft commissioned Forrester Consulting to examine the total economic impact and potential return on investment (ROI) enterprises may realize by deploying Microsoft Exchange 2010. Microsoft Exchange 2010 is the newest release of Microsoft‟s messaging and collaborative server software solution featuring email, voicemail, calendaring, contacts, and tasks; support for mobile and Web-based access to information; and support for data storage. This study illustrates the financial impact of deploying Microsoft Exchange 2010 for a retail and distribution organization of 1,500 employees and $450 million in annual revenue.
This document presents a framework for measuring the business value of IT investments. It defines business value as the financial benefits realized by an organization from IT solutions in areas such as cost savings, revenue increases, operational efficiencies and competitive advantages.
The framework includes identifying relevant "value dials" or metrics to quantify the benefits of a proposed IT initiative. It also introduces the concept of a Business Value Index to evaluate initiatives based on their estimated financial returns and impact on IT efficiency.
Two case studies are presented to demonstrate how the framework can be applied to evaluate proposed IT projects and justify their expected business value in order to secure approval and funding.
This document summarizes a Total Economic Impact study commissioned by Cleversafe to analyze the potential return on investment of using Cleversafe object storage.
The study interviewed an existing Cleversafe customer that previously used RAID storage for 6 petabytes of data, requiring 15 petabytes of raw storage. By moving to Cleversafe, the customer reduced raw storage needs to 7.2 petabytes while maintaining equivalent data protection.
The analysis found that over three years, Cleversafe storage costs were 72% lower than equivalent RAID solutions, with a three-year investment in Cleversafe of over $6 million replacing a $21.9 million RAID configuration. Total benefits included over $15.8 million
Microsoft Word - TEI of Alfresco - Final 2011-12-02.docxAmplexorDemo
This document summarizes a Forrester Consulting study on the total economic impact of using Alfresco's enterprise content management solution. The study found that a composite organization realized a 53% return on investment over three years, with payback achieved within 10 months of going live. Key benefits included avoided software license costs of $792,000, IT maintenance cost savings of $244,000, and cost savings from using less expensive developer resources rather than specialized ECM consultants. The flexible and open source Alfresco solution provided integration, development and operational efficiencies.
Microsoft Word - TEI of Alfresco - Final 2011-12-02.docxAmplexorDemo
This document summarizes the findings of a Forrester Consulting study on the total economic impact of implementing Alfresco's enterprise content management solution. Forrester interviewed four Alfresco customers and constructed a composite organization based on their experiences. The key findings were:
1) The composite organization realized a 53% ROI over three years, paying back implementation costs in 10 months, through benefits like avoided software licensing fees and reduced IT maintenance costs.
2) Total benefits were $1.3M over three years versus total costs of $862K, resulting in a net present value of $454K.
3) Customers chose Alfresco for its flexibility, cost efficiency, and ability to support large user
This document summarizes the key findings of a Forrester Consulting study on the total economic impact of implementing the Sage X3 enterprise resource planning (ERP) solution. The study found that the composite organization experienced total benefits of $1.7M over three years versus costs of $621K, resulting in a net present value of $1.1M and a return on investment of 177%. Major benefit categories included labor savings from improved financial management, purchasing, sales management, inventory management, customer service, and manufacturing management.
Forrester On Using Subversion to Optimize Globally Distributed DevelopmentWANdisco Plc
This webinar discusses the findings of a recently commissioned Forrester Consulting Total Economic ImpactTM (TEI) study of WANdisco's SVN MultiSite. Forrester's TEI methodology measures costs and cost reduction and weighs the enabling value of a technology in increasing the effectiveness of overall business processes. The subject of the study was a Fortune 500 company with annual revenues of over $5 billion, with SVN MultiSite in production in the US, UK, and India. Forrester concluded that SVN MultiSite generated a return on investment (ROI) of 357% with a payback period of less than 2 months.
The Total Economic Impact of NetApp's Storage Solutions For Server Virtualiza...NetApp
In late 2011, Forrester Research started work on a research project commissioned by NetApp that focused on examining the potential return on investment (ROI) enterprises may realize by adopting NetApp’s storage solutions for server virtualization in conjunction with VMware’s ESX Server virtualization platform.
Similar to Total Economic Impact™ Study of IBM Storwize V7000 (20)
Learn about vSphere Storage API for Array Integration on the IBM Storwize family. IBM Storwize V7000 Unified combines the block storage capabilities of Storwize V7000 with file storage capabilities into a single system for greater ease of management and efficiency. For more information on IBM Storage Systems, visit http://ibm.co/LIg7gk.
Visit http://bit.ly/KWh5Dx to 'Follow' the official Twitter handle of IBM India Smarter Computing.
Learn about IBM FlashSystem 840 and its complete product specification in this Redbook. FlashSystem 840 provides scalable performance for the most demanding enterprise class applications. IBM FlashSystem 840 accelerates response times with IBM MicroLatency to enable faster decision making. For more information on IBM FlashSystem, visit http://ibm.co/10KodHl.
Visit http://on.fb.me/LT4gdu to 'Like' the official Facebook page of IBM India Smarter Computing.
Learn about the IBM System x3250 M5,.The x3250 M5 offers the following energy-efficiency features to save energy, reduce operational costs, increase energy availability, and contribute to a green environment, energy-efficient planar components help lower operational costs. For more information on System x, visit http://ibm.co/Q7m3iQ.
http://www.scribd.com/doc/210746104/IBM-System-x3250-M5
This Redbook talks about the product specification of IBM NeXtScale nx360 M4. The NeXtScale nx360 M4 server provides a dense, flexible solution with a low total cost of ownership (TCO). The half-wide, dual-socket NeXtScale nx360 M4 server is designed for data centers that require high performance but are constrained by floor space. For more information on System x, visit http://ibm.co/Q7m3iQ.
http://www.scribd.com/doc/210745680/IBM-NeXtScale-nx360-M4
The IBM System x3650 M4 HD is a (1) 2-socket 2U rack-optimized server that supports up to 32 internal drives and features an innovative design for optimal performance, uptime, and dense storage. It offers (2) excellent reliability, availability, and serviceability for improved business environments. The server is (3) designed for easy deployment, integration, service, and management.
Here are the product specification for IBM System x3300 M4. This product can be managed remotely.The x3300 M4 server contains IBM IMM2, which provides advanced service-processor control, monitoring, and an alerting function. The IMM2 lights LEDs to help you diagnose the problem, records the error in the event log, and alerts you to the problem. For more information on System x, visit http://ibm.co/Q7m3iQ.
Visit http://on.fb.me/LT4gdu to 'Like' the official Facebook page of IBM India Smarter Computing.
Learn about IBM System x iDataPlex dx360 M4. IBM System x iDataPlex is an innovative data center solution that maximizes performance and optimizes energy and space efficiency. The iDataPlex solution provides customers with outstanding energy and cooling efficiency, multi-rack level manageability, complete flexibility in configuration, and minimal deployment effort. For more information on System x, visit http://ibm.co/Q7m3iQ.
http://www.scribd.com/doc/210744055/IBM-System-x-iDataPlex-dx360-M4
The IBM System x3500 M4 server provides powerful and scalable performance for business applications in an energy efficient tower or rack design. It features the latest Intel Xeon E5-2600 v2 or E5-2600 processors with up to 24 cores, 768GB RAM, 32 hard drives, and 8 PCIe slots. Comprehensive systems management tools and redundant components help ensure high availability, while its small footprint and 80 Plus Platinum power supplies reduce data center costs.
Learn about system specification for IBM System x3550 M4. The x3550 M4 offers numerous features to boost performance, improve scalability, and reduce costs. Improves productivity by offering superior system performance with up to 12-core processors, up to 30 MB of L3 cache, and up to two 8 GT/s QPI interconnect links. For more information on System x, visit http://ibm.co/Q7m3iQ.
Learn about IBM System x3650 M4. The x3650 M4 is an outstanding 2U two-socket business-critical server, offering improved performance and pay-as-you grow flexibility along with new features that improve server management capability. For more information on System x, visit http://ibm.co/Q7m3iQ.
http://www.scribd.com/doc/210741926/IBM-System-x3650-M4
Learn about the product specification of IBM System x3500 M3. System x3500 M3 has an energy-efficient design which works in conjunction with the IMM to govern fan rotation based on the readings that it delivers. This saves money under normal conditions because the fans do not have to spin at high speed. For more information on System x, visit http://ibm.co/Q7m3iQ.
http://www.scribd.com/doc/210741626/IBM-System-x3500-M3
Learn about IBM System x3400 M3. The x3400 M3 offers numerous features to boost performance and reduce costs, x3400 M3 has the ability to grow with your application requirements with these features. Powerful systems management features simplify local and remote management of the x3400 M3. For more information on System x, visit http://ibm.co/Q7m3iQ.
Visit http://on.fb.me/LT4gdu to 'Like' the official Facebook page of IBM India Smarter Computing.
Learn about IBM System 3250 M3 which is a single-socket server that offers new levels of performance and flexibility
to help you respond quickly to changing business demands. Cost-effective and compact, it is well suited to small to mid-sized businesses, as well as large enterprises. For more information on System x, visit http://ibm.co/Q7m3iQ.
http://www.scribd.com/doc/210740347/IBM-System-x3250-M3
Learn about IBM System x3200 M3 and its specifications. The System x3200 M3 features easy installation and management with a rich set of options for hard disk drives and memory. The efficient design helps to save energy and provide a better work environment with less heat and noise. For more information on System x, visit http://ibm.co/Q7m3iQ.
http://www.scribd.com/doc/210739508/IBM-System-x3200-M3
Learn about the configuration of IBM PowerVC. IBM PowerVC is built on OpenStack that controls large pools of server, storage, and networking resources throughout a data center. IBM Power Virtualization Center provides security services that support a secure environment. Installation requires just 20 minutes to get a virtual machine up and running. For more information on Power Systems, visit http://ibm.co/Lx6hfc.
Visit http://on.fb.me/LT4gdu to 'Like' the official Facebook page of IBM India Smarter Computing.
Learn about Ibm POWER7 Virtualization Performance. PowerVM Lx86 is a cross-platform virtualization solution that enables the running of a wide range of x86 Linux applications on Power Systems platforms within a Linux on Power partition without modifications or recompilation of the workloads. For more information on Power Systems, visit http://ibm.co/Lx6hfc.
http://www.scribd.com/doc/210734237/A-Comparison-of-PowerVM-and-Vmware-Virtualization-Performance
This reference architecture document describes deploying the VMware vCloud Enterprise Suite on the IBM PureFlex System hardware platform. Key points:
- The vCloud Suite software provides components for managing and delivering cloud services, while the IBM PureFlex System provides an integrated hardware platform in a single chassis.
- The reference architecture focuses on installing the vCloud Suite management components as virtual machines on an ESXi host to manage consumer resources.
- The IBM PureFlex System provides servers, networking, and storage in a single chassis that can then be easily scaled out. This standardized deployment accelerates provisioning of cloud infrastructure.
- Deployment considerations cover systems management using IBM Flex System Manager, server, networking, storage configurations
Learn how x6: The sixth generation of EXA Technology is fast, agile and Resilient for Emerging Workloads from Alex Yost. Vice President, IBM PureSystems and System x
IBM Systems and Technology Group. x6 drives cloud and big data for enterprises by achieving insight faster thereby outperforming competitors. For more information on System x, visit http://ibm.co/Q7m3iQ.
http://www.scribd.com/doc/210715795/X6-The-sixth-generation-of-EXA-Technology
Lean how Matters Stephen Leonard General Manager Global Markets IBM Systems elucidates the impact of IBM Flex system in businesses which can be instrumental in helping firms to cut their operational down cost. In simple terms “IBM Flex System represents an entirely new generation of technology, with more performance and bandwidth, true integrated enterprise SAN storage.
For more information on Pure Systems, visit http://ibm.co/J7Zb1v.
http://www.scribd.com/doc/210711973/stephen-leonard-ibm-big-data-and-cloud
Infrastructure Matters discusses trends in IT for 2014. It notes the rise of business services, the "Internet of Things" connecting billions of devices, and exponentially growing data. Infrastructure will need to process workloads and massive data quickly in secure environments. Virtualization increases flexibility, utilization, reliability and reduces costs. The role of CIO is expanding from operational roles to innovation, architecture and business transformation. While applications and users grow exponentially, infrastructure demands challenge traditional IT models, increasing the need for third platform technologies.
At Techbox Square, in Singapore, we're not just creative web designers and developers, we're the driving force behind your brand identity. Contact us today.
Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
In this webinar, we won't focus on the research methods for discovering user-needs. We will focus on synthesis of the needs we discover, communication and alignment tools, and how we operationalize addressing those needs.
Industry expert Scott Sehlhorst will:
• Introduce a taxonomy for user goals with real world examples
• Present the Onion Diagram, a tool for contextualizing task-level goals
• Illustrate how customer journey maps capture activity-level and task-level goals
• Demonstrate the best approach to selection and prioritization of user-goals to address
• Highlight the crucial benchmarks, observable changes, in ensuring fulfillment of customer needs
Storytelling is an incredibly valuable tool to share data and information. To get the most impact from stories there are a number of key ingredients. These are based on science and human nature. Using these elements in a story you can deliver information impactfully, ensure action and drive change.
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfthesiliconleaders
In the recent edition, The 10 Most Influential Leaders Guiding Corporate Evolution, 2024, The Silicon Leaders magazine gladly features Dejan Štancer, President of the Global Chamber of Business Leaders (GCBL), along with other leaders.
How to Implement a Real Estate CRM SoftwareSalesTown
To implement a CRM for real estate, set clear goals, choose a CRM with key real estate features, and customize it to your needs. Migrate your data, train your team, and use automation to save time. Monitor performance, ensure data security, and use the CRM to enhance marketing. Regularly check its effectiveness to improve your business.
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...APCO
The Radar reflects input from APCO’s teams located around the world. It distils a host of interconnected events and trends into insights to inform operational and strategic decisions. Issues covered in this edition include:
[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This presentation is a curated compilation of PowerPoint diagrams and templates designed to illustrate 20 different digital transformation frameworks and models. These frameworks are based on recent industry trends and best practices, ensuring that the content remains relevant and up-to-date.
Key highlights include Microsoft's Digital Transformation Framework, which focuses on driving innovation and efficiency, and McKinsey's Ten Guiding Principles, which provide strategic insights for successful digital transformation. Additionally, Forrester's framework emphasizes enhancing customer experiences and modernizing IT infrastructure, while IDC's MaturityScape helps assess and develop organizational digital maturity. MIT's framework explores cutting-edge strategies for achieving digital success.
These materials are perfect for enhancing your business or classroom presentations, offering visual aids to supplement your insights. Please note that while comprehensive, these slides are intended as supplementary resources and may not be complete for standalone instructional purposes.
Frameworks/Models included:
Microsoft’s Digital Transformation Framework
McKinsey’s Ten Guiding Principles of Digital Transformation
Forrester’s Digital Transformation Framework
IDC’s Digital Transformation MaturityScape
MIT’s Digital Transformation Framework
Gartner’s Digital Transformation Framework
Accenture’s Digital Strategy & Enterprise Frameworks
Deloitte’s Digital Industrial Transformation Framework
Capgemini’s Digital Transformation Framework
PwC’s Digital Transformation Framework
Cisco’s Digital Transformation Framework
Cognizant’s Digital Transformation Framework
DXC Technology’s Digital Transformation Framework
The BCG Strategy Palette
McKinsey’s Digital Transformation Framework
Digital Transformation Compass
Four Levels of Digital Maturity
Design Thinking Framework
Business Model Canvas
Customer Journey Map
Top mailing list providers in the USA.pptxJeremyPeirce1
Discover the top mailing list providers in the USA, offering targeted lists, segmentation, and analytics to optimize your marketing campaigns and drive engagement.
[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This PowerPoint compilation offers a comprehensive overview of 20 leading innovation management frameworks and methodologies, selected for their broad applicability across various industries and organizational contexts. These frameworks are valuable resources for a wide range of users, including business professionals, educators, and consultants.
Each framework is presented with visually engaging diagrams and templates, ensuring the content is both informative and appealing. While this compilation is thorough, please note that the slides are intended as supplementary resources and may not be sufficient for standalone instructional purposes.
This compilation is ideal for anyone looking to enhance their understanding of innovation management and drive meaningful change within their organization. Whether you aim to improve product development processes, enhance customer experiences, or drive digital transformation, these frameworks offer valuable insights and tools to help you achieve your goals.
INCLUDED FRAMEWORKS/MODELS:
1. Stanford’s Design Thinking
2. IDEO’s Human-Centered Design
3. Strategyzer’s Business Model Innovation
4. Lean Startup Methodology
5. Agile Innovation Framework
6. Doblin’s Ten Types of Innovation
7. McKinsey’s Three Horizons of Growth
8. Customer Journey Map
9. Christensen’s Disruptive Innovation Theory
10. Blue Ocean Strategy
11. Strategyn’s Jobs-To-Be-Done (JTBD) Framework with Job Map
12. Design Sprint Framework
13. The Double Diamond
14. Lean Six Sigma DMAIC
15. TRIZ Problem-Solving Framework
16. Edward de Bono’s Six Thinking Hats
17. Stage-Gate Model
18. Toyota’s Six Steps of Kaizen
19. Microsoft’s Digital Transformation Framework
20. Design for Six Sigma (DFSS)
To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Tastemy Pandit
Know what your zodiac sign says about your taste in food! Explore how the 12 zodiac signs influence your culinary preferences with insights from MyPandit. Dive into astrology and flavors!
B2B payments are rapidly changing. Find out the 5 key questions you need to be asking yourself to be sure you are mastering B2B payments today. Learn more at www.BlueSnap.com.
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....Lacey Max
“After being the most listed dog breed in the United States for 31
years in a row, the Labrador Retriever has dropped to second place
in the American Kennel Club's annual survey of the country's most
popular canines. The French Bulldog is the new top dog in the
United States as of 2022. The stylish puppy has ascended the
rankings in rapid time despite having health concerns and limited
color choices.”
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
Total Economic Impact™ Study of IBM Storwize V7000
1. A Forrester Total Economic Impact™ Study Prepared For IBM
Total Economic Impact™ Study Of IBM Storwize
V7000
Project Director: Sadaf Roshan Bellord
Contributors: Jon Erickson
April 2012
3. Forrester Consulting
Total Economic Impact™ Study Of IBM Storwize V7000
Executive Summary
In June 2011, IBM commissioned Forrester Consulting to examine the total economic impact and potential return on
investment (ROI) that enterprises may realize by deploying Storwize V7000. The purpose of this study is to provide
readers with a framework to evaluate the potential financial impact of Storwize V7000 on their organizations. Storwize
V7000 is a virtualized storage system designed to consolidate block and file workloads into a single storage system for
simplicity of management, reduced cost, highly scalable capacity, performance, and high availability.
IBM Storwize V7000 Generates End User And IT Operational Cost Savings
Our interviews and survey with 11 existing customers and subsequent financial analysis found that a composite
organization based on the organizations interviewed experienced the risk-adjusted ROI, costs, and benefits shown in
Table 1.1 See Appendix A for a description of the composite organization. (All numbers have been rounded).
Table 1
Composite Organization Three-Year Risk-Adjusted ROI
ROI Payback Total benefits Total costs Net present
period (PV) (PV) value
150% 15 months $631,154 ($252,421) $378,733
Source: Forrester Research, Inc.
Benefits. The composite organization experienced the following benefits that represent those experienced by the
interviewed and surveyed companies:
o Improved availability by reducing downtime. This benefit represents the improvement in end user
availability when reducing hardware downtime.
o Lower provisioning cost. This benefit represents the reduction in provisioning cost with preinstalled thin
provisioning software.
o Lower administrative cost per TB of storage. This benefit represents the reduction in administrative costs
of managing storage measured by cost per TB of data.
o Simplified application performance tuning. This benefit represents the reduction in IT effort resulting
from simplification in application performance tuning.
o Improved speed to get new storage online. This benefit represents the improvement in time to get new
storage in operation.
Costs. The composite organization experienced the following costs:
Page 2
4. Forrester Consulting
Total Economic Impact™ Study Of IBM Storwize V7000
o Hardware cost and support fee. This cost represents the investment in hardware and its related support
costs.
o Software license and maintenance costs. This cost represents the investment in software licenses and
support costs for Storwize V7000 implementation.
o Internal implementation costs. This cost represents the internal resources used to support the
implementation.
o Administrative costs. This cost represents the ongoing administrative effort associated with the deployment
of IBM Storwize V7000.
Figure 1
Composite Organization Three-Year Risk-Adjusted ROI
$900,000
$800,000
$700,000
$600,000
$500,000
Costs
Benefits
$400,000
Risk‐adjusted
$300,000 breakeven point
at 14.1 months
$200,000
$100,000
$0
Initial Year 1 Year 2 Year 3
Source: Forrester Research, Inc.
Page 3
5. Forrester Consulting
Total Economic Impact™ Study Of IBM Storwize V7000
Factors Affecting Benefits And Costs
Table 1 illustrates the risk-adjusted financial results that were achieved by the composite organization. The risk-
adjusted values take into account any potential uncertainty or variance that exists in estimating the costs and benefits,
which produces more conservative estimates. The following factors may affect the financial results that an organization
may experience:
Time to deploy. The time it takes to test and pilot Storwize V7000 within the environment has an impact on how
quickly the benefits of Storwize can be realized.
Success of change management. How quickly an organization can get storage administrators using the new tools
and solutions has an impact on the overall costs of the investment.
Impact of availability. The overall benefit of improved availability will depend on the type of supported
application as well as the productive value of the type and number of end users.
Disclosures
The reader should be aware of the following:
The study is commissioned by IBM 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 IBM Storwize V7000.
IBM 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 customers for the interviews were provided by IBM and an external third-party organization.
Page 4
6. Forrester Consulting
Total Economic Impact™ Study Of IBM Storwize V7000
TEI Framework And Methodology
Introduction
From the information provided in the interviews, Forrester has constructed a Total Economic Impact™ framework for
those organizations considering implementing IBM Storwize V7000. The objective of the framework is to identify the
cost, benefit, flexibility, and risk factors that affect the investment decision.
Approach And Methodology
Forrester took a multistep approach to evaluate the impact that IBM Storwize V7000 can have on an organization (see
Figure 2). Specifically, we:
Interviewed IBM marketing/sales/consulting personnel and Forrester analysts to gather data relative to Storwize
V7000 and the marketplace for Storwize V7000.
Received primary data from a combination of in-depth customer interviews as well as a broader survey of
customers who are currently using IBM Storwize V7000 to obtain data with respect to costs, benefits, and risks.
Designed a composite organization based on characteristics of the interviewed organizations (see Appendix A).
Constructed a financial model representative of the interviews using the TEI methodology. The financial model is
populated with the cost and benefit data obtained from the interviews as applied to the composite organization.
Figure 2
TEI Approach
Conduct Construct financial
Perform due Design composite Write case
customer model using TEI
diligence organization study
interviews framework
Source: Forrester Research, Inc.
Forrester employed f our fundamental elements of TEI in modeling IBM Storwize V7000’s service:
1. Costs.
2. Benefits to the entire organization.
3. Flexibility.
4. Risk.
Page 5
7. Forrester Consulting
Total Economic Impact™ Study Of IBM Storwize V7000
Given the increasing sophistication that enterprises have regarding ROI analyses related to IT investments, Forrester’s
TEI methodology serves the purpose of providing a complete picture of the total economic impact of purchase
decisions. Please see Appendix B for additional information on the TEI methodology.
Page 6
8. Forrester Consulting
Total Economic Impact™ Study Of IBM Storwize V7000
Analysis
Interview Highlights
In-depth interviews were conducted for this study, involving representatives from:
1. A financial services firm in South America with more than 40,000 members and 45 branches that offer
financial products and services.
Forrester also surveyed 10 other organizations that are currently using IBM Storwize V7000. These organizations are in
the following industries: financial services, telecommunication, manufacturing, government, and energy. These
organizations are based in North America, Europe, and Australia and present a combination of public and privately
held firms.
The interviews and surveys uncovered the following:
Organizations needed to upgrade its information management system to cope with the increasing data volumes
demand and continue providing an excellent quality of service to its expanding customer base.
The integration of Storwize V7000 has offered a number of efficiency savings to these organizations’ IT
infrastructure. Thin provisioning enabled the IT teams to manage the increasing volume of data at a lower cost
through better use of disk space. Organizations were able to realize, on average, a reduction of 30% in physical
disk space growth while meeting their growing demands with less disruption.
Organizations noted that Storwize V7000 was able to identify idle storage space and use this space efficiently.
Data access and management has enabled these organizations to better understand their customers, analyze
customer data in a timely manner, and offer solutions and services that are better aligned with customer demand.
Composite Organization
Based on in-depth interviews with an existing customer provided by IBM and surveys of 10 customers using IBM
Storwize V7000, Forrester constructed a TEI framework, a composite company, and an associated ROI analysis that
illustrates the areas financially affected. The composite organization that Forrester synthesized from these results
represents a midsize organization that is managing about 45 terabytes of data. The organization deployed IBM Storwize
V7000 to better manage its growing storage needs.
Framework Assumptions
Table 2 provides the model assumptions that Forrester used in this analysis.
Page 7
9. Forrester Consulting
Total Economic Impact™ Study Of IBM Storwize V7000
Table 2
Model Assumptions
Ref. Metric Calculation Value
A1 Hours per week 40
A2 Weeks per year 52
A3 Hours per year (M-F, 9-5) 2,080
A5 Average fully loaded salary of storage administrator $120,000
A6 Fully loaded hourly rate of storage administrator (A5/A3) $58
A7 Average fully loaded salary of end user $100,000
A8 Fully loaded hourly rate of end user (A7/A3) $48
Source: Forrester Research, Inc.
The discount rate used in the PV and NPV calculations is 10%, and time horizon used for the financial modeling is
three years. Organizations typically use discount rates between 8% and 16% based on their current environment.
Readers are urged to consult with their respective company’s finance department to determine the most appropriate
discount rate to use within their own organization.
Costs
This section describes and lists the costs related to planning, testing, and implementing IBM Storwize V7000 over the
three-year period. Cost consumptions are based on detailed interviews with an organization using IBM Storwize V7000
and a survey completed with 10 existing IBM Storwize V7000 customers. All costs are based on list prices and standard
vendor discount. These costs do not include any negotiated discounts. The following cost model for the composite
organization serves as a framework for other organizations.
Hardware Costs And Support Fee
This category represents 16% of the overall investment in IBM Storwize V7000. It includes hardware costs and related
maintenance costs. Readers should note that IBM has a three-year warranty on hardware and that the level of service
can be upgraded during the warranty period. The list price for the hardware is $61,288. IBM recommends 39% as a
representative discount level for hardware purchased for this investment. The hardware maintenance costs for a three-
year agreement is $2,850, and it is paid up front. Table 3 presents the calculation.
Page 8
10. Forrester Consulting
Total Economic Impact™ Study Of IBM Storwize V7000
Table 3
Hardware Costs And Support Fee
Ref. Metric Calculation Initial
B1 Hardware costs $61,288
B2 Recommended vendor discount 39%
B3 Hardware maintenance costs $2,850
Bt Hardware costs and support fee B1*(1-B2)+B3 $40,236
Source: Forrester Research, Inc.
Software License And Maintenance Costs
Another component of cost is software licensing and maintenance costs. This category coincidently represents 16% of
the overall investment. There are two components to the software costs: base system software and external
virtualization software. The list price for each component is $18,000. IBM recommends 20% as a representative vendor
discount for software purchased for this investment. The software maintenance costs for Year 1 are included in the
initial software licensing cost. The maintenance cost starts in Year 2 and equates to 20% of the software license list price.
Table 4 illustrates the calculation.
Table 4
Software License And Maintenance Costs
Ref. Metric Calculation Initial Year 1 Year 2 Year 3
C1 Base system software $18,000
C2 External virtualization software $18,000
C3 Recommended vendor discount 20%
C4 Software maintenance costs 20% 20%
Software license and (C1+C2)*(1-
Ct $28,800 $0 $7,200 $7,200
maintenance costs C3)+(C1*C2)*C4
Source: Forrester Research, Inc.
Page 9
11. Forrester Consulting
Total Economic Impact™ Study Of IBM Storwize V7000
Internal Implementation Costs
The next component of costs is internal implementation costs. It describes the internal resources required to plan and
implement IBM Storwize V7000. During this phase, the organization used the equivalent of three full-time resources
during two months for planning, testing, and implementation. The organization interviewed also used third-party
resources to support implementation. For the composite organization, we estimate a third-party cost of about $20,000.
This category represents 32% of the overall investment.
Table 5
Internal Implementation Costs
Ref. Metric Calculation Per period
D1 Number of people 3
Number of months spent on discovery, analysis, and
D2 2
deployment
D3 Average fully loaded monthly salary $10,000
D4 Third-party costs $20,000
Dt Internal implementation costs D1*D2*D3+D4 $80,000
Source: Forrester Research, Inc.
Ongoing Management Costs
The final component of cost is ongoing management costs. This category represents 36% of the overall investment.
Based on in-depth interviews with an organization using IBM Storwize V7000, Forrester estimates that three IT staff
members (a member of infrastructure team, one from support, and an IT manager) allocate 10% of their time to
ongoing management of the IBM Storwize V7000 system. Table 6 shows the calculation.
Page 10
12. Forrester Consulting
Total Economic Impact™ Study Of IBM Storwize V7000
Table 6
Ongoing Management Cost
Ref. Metric Calculation Per period
E1 Number of people 3
E2 Average fully loaded salary $120,000
E3 Percent of time allocated 10%
Et Ongoing management cost E1*E2*E3 $36,000
Source: Forrester Research, Inc.
Total Costs
Table 7 summarizes costs associated with the implementation of IBM Storwize V7000.
Table 7
Total Costs — Non-Risk-Adjusted
Costs Initial Year 1 Year 2 Year 3 Total PV
Hardware cost and support fee ($40,236) ($40,236) ($40,236)
Software license and
($28,800) ($7,200) ($7,200) ($43,200) ($40,160)
maintenance costs
Internal implementation costs ($80,000) ($80,000) ($80,000)
Administrative costs ($36,000) ($36,000) ($36,000) ($108,000) ($89,527)
Total costs ($149,036) ($36,000) ($43,200) ($43,200) ($271,436) ($249,923)
Source: Forrester Research, Inc.
Benefits
The benefits that we had sufficient data to quantify financially were: 1) improved availability by reducing downtime; 2)
lower administrative cost per TB of storage; 3) simplified application performance tuning; 4) lower provisioning cost
due to preinstalled thin provisioning software; and 5) improved speed to get new storage online. These benefits
represent business and IT operating savings that represented a three-year risk-adjusted PV of $631,154. Readers should
Page 11
13. Forrester Consulting
Total Economic Impact™ Study Of IBM Storwize V7000
note that these benefits represent the values that the interviewed and surveyed organizations received from deployment
of IBM Storwize V7000.
Improved Availability By Reducing Downtime
This category represents the reduction in end user downtime resulting from improved availability. Organizations
interviewed and surveyed noted that using IBM Storwize V7000 to virtualize their existing storage has enabled them to
improve data availability to applications, specifically citing the abilities to: 1) maximize storage space; 2) take advantage
of excess space to launch new applications; and 3) move application data between storage resources without having to
take the application offline within a virtualized environment. In addition to improvement in end user availability, the
organizations were able to maintain a high level of uptime in comparison with the environment prior to deployment of
IBM Storwize V7000.
Based on the interviews and surveys, organizations deploying IBM Storwize V7000 were able to realize 29%
improvement in application availability compared with the prior environment. For the composite organization, we
estimate that the 1,000 end users experienced four downtimes annually and that each downtime lasted about 3 hours.
We assume an average fully loaded hourly rate of $48 ($100,000/2080). We also assume that benefits are reduced by
25% in the first year to take into account the time it takes to fully implement the solution. Table 8 illustrates the
calculation.
Table 8
Improved Availability By Reducing Downtime
Ref. Metric Calculation Year 1 Year 2 Year 3
F1 Total number of employees 1,000 1,000 1,000
F2 Total annual downtime Four times per year*3 hours per period 12 12 12
F3 Average fully loaded hourly rate $48 $48 $48
F4 Reduction in downtime 29% 29% 29%
F5 Percent of benefit realized 75% 100% 100%
Ft Improved availability F1*F2*F3*F4*F5 $125,280 $167,040 $167,040
Source: Forrester Research, Inc.
Lower Administrative Cost
In addition to business benefit, there are a number of IT benefits resulting from the implementation of Storwize V7000.
The first is a reduction in administrative costs. Customers interviewed and surveyed cited as much as a 25% year over
year increase in volume of data stored, which would result in an increase in human resources required to manage
storage capacity, applications availability and rollout, and consistent, reliable access to the data to ensure that the
Page 12
14. Forrester Consulting
Total Economic Impact™ Study Of IBM Storwize V7000
organization met its internal and external SLAs. The interviewees noted that after deployment they were able to shrink
the total storage size by as much as 50%. Then they decided to mirror it with very minimal effort. This action allowed
the organizations to manage the storage growth with the existing number of staff.
For the composite organization, we estimate that a full-time resource was allocating 50% of his or her time to ongoing
administrative tasks. After deployment of Storwize V7000, the organization was able to reduce the cost to administer
virtualized storage by 17% per terabyte. While the organization improved overall system efficiency, the benefit didn’t
occur until Year 2 because there was no incremental increase per terabyte of data in Year 1. Table 9 demonstrates the
calculation.
Table 9
Lower Administrative Cost
Ref. Metric Calculation Year 1 Year 2 Year 3
G1 Number of TB increased 0 8 11
G2 Number of workers managing storage 1 1 1
G3 Average fully loaded salary $120,000 $120,000 $120,000
G4 Average time allocated to storage administration 50% 50% 50%
Reduction in cost to administer storage compared
G5 17% 17% 17%
with previous environment on a per TB basis
Gt Lower administration cost per TB of storage G1*G2*G3*G4*G5 $0 $81,600 $112,200
Source: Forrester Research, Inc.
Simplified Application Performance Tuning
Another benefit is improvement in application tuning. Customers noted that simplifying ways to move data
consistently between applications and storage devices without experiencing application downtime was an important
factor when evaluating IBM Storwize V7000. IT organizations use tuning to improve performance if the system is
experiencing response time or throughput problems. To improve performance, organizations were required to make
additional investment to add more disk storage and CPUs while improving CPU speed and increasing memory. By
simplifying tasks related to application performance tuning, Storwize V7000 customers interviewed said that they were
able to reduce the cost of tuning performance for applications per terabyte by 10% when compared with their prior
environment.
For the composite organization, we estimate that the equivalent of a full-time resource was allocating 50% of his/her
time to tasks related to application tuning. To calculate this benefit, we estimate the reduction in cost per terabyte of
data increased compared with the environment prior to implementation of IBM Storwize V7000. Table 10 illustrates
the calculation.
Page 13
15. Forrester Consulting
Total Economic Impact™ Study Of IBM Storwize V7000
Table 10
Simplified Application Performance Tuning
Ref. Metric Calculation Year 1 Year 2 Year 3
H1 Number of TB increased 0 8 11
H2 Number of workers managing storage 1 1 1
H3 Average fully loaded salary $120,000 $120,000 $120,000
H4 Average time allocated to performance tuning 50% 50% 50%
Reduction in cost to perform application
H5 tuning compared with your previous 10% 10% 10%
environment on a per TB basis
Ht Simplified application performance tuning H1*H2*H3*H4*H5 $0 $48,000 $66,000
Source: Forrester Research, Inc.
Lower Provisioning Cost
The Storwize V7000 thin provisioning capability offers the flexibility to make better use of storage space. Organizations
interviewed said that their storage administrators can manage the increase in volume of data at a lower cost through
better use of disk space and reduced disruption. Organizations interviewed and surveyed for this study said that as a
result of thin provisioning capabilities offered they have realized a 10% reduction in provisioning time. We also assume
benefits are reduced by 25% in Year 1 to take into account the time it takes to fully implement the solution. Table 11
presents the calculation.
Page 14
16. Forrester Consulting
Total Economic Impact™ Study Of IBM Storwize V7000
Table 11
Lower Provisioning Cost
Ref. Metric Calculation Year 1 Year 2 Year 3
I1 Number of workers 1 1 1
I2 Annual fully loaded salary per worker $120,000 $120,000 $120,000
Average time allocated to provisioning
I3 50% 50% 50%
prior to deployment
Reduction in provisioning time after
I4 17% 17% 17%
deployment
I5 Percent of benefit realized 75% 100% 100%
Lower provisioning cost by having
It I1*I2*I3*I4*I5 $7,650 $10,200 $10,200
preinstalled thin provisioning software
Source: Forrester Research, Inc.
Improved Speed To Get New Storage Online
The last component of benefit is the improvement in time to make storage available. This will improve ability to access
information and ultimately support end user activity. Customers interviewed and surveyed said that after
implementation of IBM Storwize V7000 they were able to make new storage capacity available 26% faster than with the
prior environment. The organization interviewed was only tracking the improvement in IT resources effort to make
storage available faster, and that is what we are calculating here. However, we believe that in addition to this benefit
there is a user benefit that is not currently being tracked. That is based on users’ ability to access data faster to make
better business decisions.
Page 15
17. Forrester Consulting
Total Economic Impact™ Study Of IBM Storwize V7000
Table 12
Improvement In Time-To-Market
Ref. Metric Calculation Year 1 Year 2 Year 3
J1 Number of people 3 3 3
J2 Average time spent (hours) 25 25 25
J3 Average fully loaded hourly rate $58 $58 $58
Improvement in percent of time to get new storage
J4 26% 26% 26%
capacity operational compared with previous environment
J5 Percent of benefit realized 75% 100% 100%
Jt Improved speed to get new storage online J1*J2*J3*J4*J5 $848 $1,131 $1,131
Source: Forrester Research, Inc.
Total Benefits
Table 13 summaries the total quantitative benefits associated with implementation of IBM Storwize V7000.
Table 13
Total Benefits — Non-Risk-Adjusted
Benefits Year 1 Year 2 Year 3 Total PV
Improved availability/reduced downtime $125,280 $167,040 $167,040 $459,360 $377,440
Lower administration cost per TB of storage $81,600 $112,200 $193,800 $151,736
Simplified application performance tuning $48,000 $66,000 $114,000 $89,256
Lower provisioning cost by having preinstalled thin
$7,650 $10,200 $10,200 $28,050 $23,048
provisioning software
Improved speed to get new storage online $848 $1,131 $1,131 $3,110 $2,556
Total benefit $133,778 $307,971 $356,571 $798,320 $644,035
Source: Forrester Research, Inc.
Page 16
18. Forrester Consulting
Total Economic Impact™ Study Of IBM Storwize V7000
Flexibility
As defined by Forrester, flexibility represents an investment in additional capacity or capability that could be turned
into business benefit for some future additional investment. This provides an organization with the “right” or the ability
to engage in future initiatives but not the obligation to do so. There are multiple scenarios in which a customer might
choose to implement Storwize V7000 and later realize additional uses and business opportunities. Flexibility would also
be quantified when evaluated as part of a specific project (described in more detail in Appendix A).
If the following metrics are available — the asset value by measuring the benefits (that is, costs avoided or saved,
revenue generated, and/or capital saved), the costs to acquire the solution, and the number of years to measure the
investment — we can estimate the flexibility option by using the Black-Scholes option pricing model.
Table 14
Flexibility Benefit Framework
Metric Calculation
Asset value (benefit) IT or business costs avoided, revenue generated, capital saved
Cost to acquire option Planning and discovery, subscription, and annual maintenance are examples of costs to
consider
Expiration Time-to-expire (in years)
Flexibility Black-Scholes option pricing model
Source: Forrester Research, Inc.
Risk
Forrester defines two types of risk associated with this analysis: implementation risk and impact risk. “Implementation
risk” is the risk that a proposed investment in Storwize V7000 may deviate from the original or expected requirements,
resulting in higher costs than anticipated. “Impact risk” refers to the risk that the business or technology needs of the
organization may not be met by the investment in Storwize V7000, resulting in lower overall total benefits. The greater
the uncertainty, the wider the potential range of outcomes for cost and benefit estimates.
Quantitatively capturing investment risk and impact risk by directly adjusting the financial estimates results in more
meaningful and accurate estimates and a more accurate projection of the ROI. In general, risks affect costs by raising
the original estimates, and they affect benefits by reducing the original estimates. The risk-adjusted numbers should be
taken as “realistic” expectations since they represent the expected values considering risk.
The following implementation risks that affect costs are identified as part of this analysis:
The implementation costs could vary based on the internal skill set and competencies.
The implementation costs could take longer than anticipated due to lack of planning and testing of the solution.
Page 17
19. Forrester Consulting
Total Economic Impact™ Study Of IBM Storwize V7000
The following impact risks that affect benefits are identified as part of the analysis:
The improvement in administrative effort could vary depending on the prior infrastructure and virtualization
effort.
The amount of excess capacity reclaimed and the level of storage growth reduced could be lower than originally
anticipated, leading to reduced storage cost savings.
The level of downtime reduced could be lower than originally anticipated.
Table 15 shows the values used to adjust for risk and uncertainty in the cost and benefit estimates. The TEI model uses a
triangular distribution method to calculate risk-adjusted values. To construct the distribution, it is necessary to first
estimate the low, most likely, and high values that could occur within the current environment. The risk-adjusted value
is the mean of the distribution of those points. Readers are urged to apply their own risk ranges based on their own
degree of confidence in the cost and benefit estimates.
Table 15
Cost And Benefit Risk Adjustments
Most
Costs Low High Mean
likely
Costs risk evaluation 98% 100% 105% 101%
Most
Benefits Low High Mean
likely
Benefit risk evaluation 98% 100% 105% 101%
Source: Forrester Research, Inc.
Readers are urged to apply their own risk ranges based on their own degree of confidence in the cost and benefit
estimates.
Page 18
20. Forrester Consulting
Total Economic Impact™ Study Of IBM Storwize V7000
Financial Summary
The financial results calculated in the Costs and Benefits sections can be used to determine the return on investment,
net present value, and payback period for the organization’s investment in Storwize V7000. These are shown in Table
16 below.
Table 16
Cash Flow — Non-Risk-Adjusted
Categories Initial Year 1 Year 2 Year 3 Total PV
Costs ($149,036) ($36,000) ($43,200) ($43,200) ($271,436) ($249,922)
Benefits $133,778 $307,971 $356,571 $798,320 $644,035
Net benefits ($149,036) $97,778 $264,771 $313,371 $526,885 $394,113
ROI 158%
Payback period 14 months
Source: Forrester Research, Inc.
Table 17 below shows the risk-adjusted ROI, NPV, and payback period values. These values are determined by applying
the risk-adjustment values from Table 15 in the Risk section to the cost and benefits numbers in Tables 7 and 13.
Table 17
Cash Flow — Risk-Adjusted
Categories Initial Year 1 Year 2 Year 3 Total PV
Costs ($150,526) ($36,360) ($43,632) ($43,632) ($274,150) ($252,421)
Benefits $131,103 $301,812 $349,440 $782,354 $631,154
Net benefits ($150,526) $94,743 $258,180 $305,808 $508,204 $378,733
ROI 150%
Payback period 15 months
Source: Forrester Research, Inc.
Page 19
21. Forrester Consulting
Total Economic Impact™ Study Of IBM Storwize V7000
IBM Storwize V7000: Overview
According to IBM, Storwize V7000 Unified Storage is a virtualized storage system designed to consolidate block and file
workloads into a single storage system for simplicity of management, reduced cost, highly scalable capacity,
performance, and high availability. IBM Storwize V7000 Unified Storage also offers improved efficiency and flexibility
through built-in solid state drive (SSD) optimization, thin provisioning, and non-disruptive migration of data from
existing storage. The system can virtualize and reuse existing disk systems.
Page 20
22. Forrester Consulting
Total Economic Impact™ Study Of IBM Storwize V7000
Appendix A: Composite Organization Description
For this TEI study, based on in-depth interviews with an existing customer provided by IBM and surveys from 10 other
customers using IBM Storwize V7000, Forrester constructed a TEI framework, a composite company, and an
associated ROI analysis that illustrates the areas financially affected. The composite organization that Forrester
synthesized from these results represents a midsize organization that is managing about 45 terabytes of data. The
organization deployed IBM Storwize V7000 to better manage its growing storage need.
In purchasing IBM Storwize V7000, the composite company has the following objectives:
Meet storage growth demand without continuously adding more disk space.
Improve access to data and improve application performance.
Reduce ongoing administrative effort to monitor storage.
Have the ability to make new storage available faster.
For the purpose of the analysis, Forrester assumes that the composite organization has 1,000 end users. The composite
organization includes three members of IT (one person from infrastructure, one tasked with storage administration,
and an IT manager) involved in the implementation.
Appendix B: Total Economic Impact™ Overview
Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology
decision-making processes and assists vendors in communicating the value proposition of their products and services
to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of IT initiatives to
both senior management and other key business stakeholders.
The TEI methodology consists of four components to evaluate investment value: benefits, costs, risks, and flexibility.
Benefits
Benefits represent the value delivered to the user organization — IT and/or business units — by the proposed product
or project. Often product or project justification exercises focus just on IT cost and cost reduction, leaving little room to
analyze the effect of the technology on the entire organization. The TEI methodology and the resulting financial model
place equal weight on the measure of benefits and the measure of costs, allowing for a full examination of the effect of
the technology on the entire organization. Calculation of benefit estimates involves a clear dialogue with the user
organization to understand the specific value that is created. In addition, Forrester also requires that there be a clear line
of accountability established between the measurement and justification of benefit estimates after the project has been
completed. This ensures that benefit estimates tie back directly to the bottom line.
Page 21
23. Forrester Consulting
Total Economic Impact™ Study Of IBM Storwize V7000
Costs
Costs represent the investment necessary to capture the value, or benefits, of the proposed project. IT or the business
units may incur costs in the form of fully burdened labor, subcontractors, or materials. Costs consider all the
investments and expenses necessary to deliver the proposed value. In addition, the cost category within TEI captures
any incremental costs over the existing environment for ongoing costs associated with the solution. All costs must be
tied to the benefits that are created.
Risk
Risk measures the uncertainty of benefit and cost estimates contained within the investment. Uncertainty is measured
in two ways: 1) the likelihood that the cost and benefit estimates will meet the original projections, and 2) the likelihood
that the estimates will be measured and tracked over time. TEI applies a probability density function known as
“triangular distribution” to the values entered. At minimum, three values are calculated to estimate the underlying
range around each cost and benefit.
Flexibility
Within the TEI methodology, direct benefits represent one part of the investment value. While direct benefits can
typically be the primary way to justify a project, Forrester believes that organizations should be able to measure the
strategic value of an investment. Flexibility represents the value that can be obtained for some future additional
investment building on top of the initial investment already made. For instance, an investment in an enterprisewide
upgrade of an office productivity suite can potentially increase standardization (to increase efficiency) and reduce
licensing costs. However, an embedded collaboration feature may translate to greater worker productivity if activated.
The collaboration can only be used with additional investment in training at some future point in time. However,
having the ability to capture that benefit has a present value that can be estimated. The flexibility component of TEI
captures that value.
Appendix C: Glossary
Discount rate: The interest rate used in cash flow analysis to take into account the time value of money. Although the
Federal Reserve Bank sets a discount rate, companies often set a discount rate based on their business and investment
environment. Forrester assumes a yearly discount rate of 10% for this analysis. Organizations typically use discount
rates between 8% and 16% based on their current environment. Readers are urged to consult their respective
organization to determine the most appropriate discount rate to use in their own environment.
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.
Page 22
24. Forrester Consulting
Total Economic Impact™ Study Of IBM Storwize V7000
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.
A Note On Cash Flow Tables
The following is a note on the cash flow tables used in this study (see the example table below). The initial investment
column contains costs incurred at “time 0” or at the beginning of Year 1. Those costs are not discounted. All other cash
flows in Years 1 through 3 are discounted using the discount rate (shown in Framework Assumptions section) at the
end of the year. Present value (PV) calculations are calculated for each total cost and benefit estimate. Net present value
(NPV) calculations are not calculated until the summary tables and are the sum of the initial investment and the
discounted cash flows in each year.
Appendix D: Endnotes
1
Forrester risk-adjusts the summary financial metrics to take into account the potential uncertainty of the cost and
benefit estimates. For more information on Risk, please see page 17.
Page 23