Forrester Research : Office 365 Impact over enterprises

Hello SharePointer,

Recentely , I read the Microsoft commissioned Forrester Consulting research details that has studied and examined the ROI over enterprises running Office 365 and found it very interesting ! and hence sharing this information as brief :

As Businesses around the globe are experiencing the benefits of the Microsoft’s Productive platform Office 365, it’s exciting to know the impact of Office 365 on enormous business customers. Office 365 had a major impact on Technology, Mobility, Control and Compliance, cost and likewise Business Intelligence. Henceforth, starting late Microsoft delegated Forrester Consulting has researched on the potential rate of profitability (ROI).This study has given assessment about potential budgetary effect of Office 365 over large organizations.

Absolute Economic Impact is a philosophy grew by Forrester Research that upgrades an organization’s innovation choice. The TEI philosophy helps organizations show, defend, and understand the substantial estimation of IT activities to both senior administration and other key business stakeholders.

The TEI strategy comprises of four segments to evaluate ROI: advantages, expenses, adaptability, and dangers.

The composite organization experienced various evaluated and unquantified profits over each of the Microsoft profit Pillars:

Advatnages1. Technology :

  • The organization avoided adding new infrastructure hardware.
  • Server licenses for various Microsoft solutions were no longer needed.
  • The implementation effort was 40% less than for a comparable on-premises
  • The manpower required to support the solution is reduced by more than half.
  1. Mobility : Three hundred highly mobile “road warrior” employees save 1 hour per day by Year 3.
  2. Compliance & Control: Using Office 365 eliminated the need to undertake four projects that would have otherwise been required.
  3. Business Intelligence: Six hundred users make faster, better decisions because of more timely access to information.
  4. Enterprise Social: Third-party social/collaboration tools are eliminated since they come standard within Office 365.

Expenses

The composite enterprises have experienced the following risk-adjusted expenses. These represent the mix of internal and external costs experienced by the enterprises for initial planning, implementation, and ongoing maintenance associated with the implemented solution:

Cost Initial Year 1 Year 2 Year 3 Total Present Value
Internal implementation labor $220,000 $44,000 $132,000 $396,000 $369,091
 Professional services $180,000 $60,000 $180,000 $420,000 $383,306
Training fees $47,250 $289,800 $289,800 $283,500 $910,350 $763,206
Ongoing system administration $$189,000 $378,000 $504,000 $1,071,000 $862,878
Incremental Microsoft licenses $26,381 $63,315 $69,647 $82,310 $241,652 $203,340
Federation hardware $25,200 $5,355 $5,355 $5,355 $41,265 $38,517
Incremental bandwidth $11,000 $26,400 $33,000 $33,000 $103,400 $87,066
$509,831 $677,870 $1,087,802 908165 $3,183,667 $2,707,404

AdaptibilityMoving to Office 365 makes organizations inherently more flexible. IT organizations can more quickly provision users and roll out the latest features to make workers more productive. One organization reported using Office 365 to more quickly integrate two merged companies. It said, “It has given us tremendous agility.”

Adaptability 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.

RisksDangers measure the uncertainty of benefit and cost estimates contained within the investment. Organizations have experience two sorts of danger connected with this examination:

  1. Implementation risk: This is the risk that a proposed investment in Office 365 may deviate from the original or expected requirements, resulting in higher costs than anticipated.
  2. Impact risk: This refers to the risk that the business or technology needs of the organization may not be met by the investment in Office 365, resulting in lower overall total benefits

The greater the uncertainty, the wider the potential range of outcomes for cost and benefit estimates. Quantitatively capturing implementation risk and impact risk by directly adjusting the financial estimates results provides 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.

Also, for more information download the PDF Here !

Enjoy 🙂

Dipti Chhatrapati

Dipti Chhatrapati is a SharePoint specialist currently working as a Senior Consultant for CapGemini in Mumbai, India. She has more than 9 years of experience in application development, design, maintenance, administration and is continuously working with improving her skills and keeping them up to date. As a developer, project leader and SharePoint Business Analyst, she has been an extensive user of Visual Studio and Team Foundation Server throughout her career. Dipti is very passionate about music, sports, and arts and loves to spend her free time learning new things, socializing with friends and family, cooking, exercising and singing.

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