how to keep ucc costs down as complexity grows
TRANSCRIPT
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HowtoKeepUCCCostsDownasComplexityGrowsNowisthetimetocomparevendorsandassessyourTotal
CostofOperation
ByRobinGareiss
President,NemertesResearch
Compass Direction Points:
± Mostdeploymentsremainon-premises,butmovementistowardcloud
andhybridIPT/UCCdeployments.Researchshows52.4%ofIPtelephony
and48.1%ofUCCdeploymentsareon-premises.Anevaluationofall
architecturesiscrucialtogainthemostbenefitfromyoursolution.
± Conductathoroughcostassessment.Totalcostofoperationhas
increasedinthepastyear,soit’stimetore-examinewhatyou’respending.
± ShoreTelTCOislowest.InNemertes’2016TCOresearch,ShoreTel
customersspendtheleastontheirIPTandUCCsolutions.
Q316
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Executive Summary
WiththegrowingadoptionandcomplexityofUnifiedCommunicationsand
Collaboration,ITleadersmustconductathoroughassessmentofarchitecture,
providers,featuresandoperationalcosts.Evaluatingthosecostsisnota
straightforwardinitiative,notonlybecauseofmulti-vendorenvironments,butalso
becausecompaniesareshiftingarchitecturestohybridorcloud.
Nemerteshasconductedresearchtoanalyzereal-worldcostdata,includingcapital,
implementation,andoperationalcosts.Theresearchhelpscompaniescomparehow
overallcostschangebasedontheproviderselected.Mostimportant,itincludesongoing
operationalcosts,whicharehardtofactorintoabusinesscaseuntiltheITstaffactually
mustmanagetheproviderinquestion.Thispaperdocumentsthosecostsandprovides
thethreedifferentsampleoutputsfromacostmodeldevelopedbyNemertes,populated
withtheresearchdata.
Weenteredinthecostmodelactualdatafromcompanieswith100employees,750
employees,and1,500employees.Ineachofthesecases,whethercloudoron-premises,
ShoreTelistheleastexpensivesolutionoverafive-yearassessment.
The Issue
IPtelephonyandUCCtechnologiesarerisingtothetopofmanyITprioritylists,
drivenbytheneedtoimprovecommunicationsinternallyandtobolstercustomer
experience.What’smore,thenumberofapplicationsincludedaspartofUCCare
growing,asaretheintegrationrequirementsbetweencommunicationsand
enterpriseapps.GiventheexpandingscopeofUCC,itisnotsurprisingthatcoststo
implementandoperatetheappsareincreasing.
Asaresult,it’simperativeforITleaderstobuildsolidbusinesscases,examiningtotal
costofoperationsamongproviderstoensurethebestpossibledecision.Forexample,
initialacquisitioncosts(licensingandassociatedcapital)maybeveryappealing,but
theunknownimplementationandongoingoperationalcostscanrapidlyeraseany
costbenefitassociatedwiththoselowerinitialcosts.Forexample,initialacquisition
costsforMicrosoftoftenarelowerthanAvaya,Cisco,orShoreTel.Butongoing
operationalcostsarelowerwithShoreTelthananyoftheproviders,makingthetotal
costofoperationsovertimemuchless.
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TotalCostof“Ownership”isn’tasrelevantasitoncewas,particularlywithemerging
cloudandhybridarchitectures.Now,weanalyzeTotalCostof“Operations,”which
betterreflectstheimportanceofongoingoperationalcosts.Uncoveringthosetrue,
real-worldoperationalcostscanbeachallenge,ifnotimpossiblewithoutresearchor
substantialexperienceatpreviousorganizations.
For11years,Nemerteshasconductedresearchtosubstantiatethecostsby
interviewingandsurveyinghundredsofcompanies.Thisyear’sstudyincludesinput
fromabout300companiesthatareusingvariouscombinationsofIPtelephonyand
UCC,architectedinthecloud,on-premises,orboth.Thisreportprovidesinsightinto
theoveralladoptiontrends,themovementtocloudandhybridenvironments,andall
associatedcosts.Italsoprovidesexamplesofcostcomparisonsbetweenproviders.
ThoughIPtelephonyoftenisapartofUCC,weseparatedthetwoforthisstudy.IP
telephonysimplyincludesvoicecommunications,whileUCCincludesinstant
messaging,presence,audio/video/webconferencing,andunifiedmessaging—
typicallyinanintegratedsuite.
IPT/UCC Adoption Trends
On-premisesarchitecturescontinuetobethemostprevalentacrossbothIPtelephony
andUCC,butthat’schanging.Asofthe2016research,almosthalfoforganizations
haveadoptedsomeIPtelephonycloudservices,comparedto29%in2015.ForUCC,
morethanhalfofcompanieshaveadoptedcloudservices,comparedto26%in2015.
MostorganizationsalsousemorethanoneproviderforIPtelephonyandUC
capabilities.DuringdiscussionswithITleaders,themajoritysaytheywouldliketo
consolidateonasinglevendorforallapps,buttherealityisthatitisnothappening
withtheexceptionofsmallandthelow-endofmidsizecompanies.Amongcompanies
withfewerthan1,000endpoints,41.1%usethesameproviderforIPtelephonyand
UCsuite.It’sworthnotingthatanother11.3%onlyhaveIPtelephonyanduseasingle
provider,comparedtoonly28.6%ofthosewith1,000ormoreendpoints.
Move to Hybrid, Cloud
Weexpectthemarkettosegmentinafewwayswhenitcomestoarchitecture
decisions.Thedriverstowardthosedecisions—aswellasthebenefitsorfallout—
varybycompany.Figure1describesthearchitecture“camps”thatarepossible.
Single-vendor,single-architectureenvironmentstypicallyarethemostefficientto
manage.ITstaffsonlyneedexpertiseinoneprovider’stechnology.Whenon-prem,
theyonlymanageoneproviderandonlyhavetotrainemployeestouseoneuser
interface.Wheninthecloud,theyonlymanageonepartnerandfocusonuser
adoptionofoneservice.
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Inmovingtoahybriddeployment,ITleadersshouldpayparticularlycloseattention
tointegrationoffeaturesetsandcallcontrol.Lookforaproviderthatoffersa
commonplatformforitscloudoron-premisessolutions,ultimatelydeliveringthe
sameuserexperienceregardlessoftheplatform.FromanITmanagementstandpoint,
thismeanscallcontrol,features,anduserinterfacearebasedonthesameunderlying
technology.AlthoughITstaffsstillmustmanagethetechnologyandthepartner
relationship,theintegrationchallengeswithacommonplatformaregreatly
minimized.
Architecture Providers TypicalCompany Benefit/Concern
Allon-premises
Single Small Singlesystemiseasytomanage/
Responsibleforday-to-daymanagement
whenitcouldbeoffloadedtocloudprovider
Multiple Large,oftenbecause
ofmergers
Best-of-breedfeatures;depreciatewhat’s
installedandavoidcostofupgradetosingle
vendor/Requiresknowledgeofmultiple
systems,increasingcoststomanageand
integrate
Allcloud
Single Allsizes,heavily
weightedtoward
smallandmidsize
Consistentservicesoeasyforusertraining/
Lossofsomecontrol,potentiallymorestaff
tomanageservice
Multiple Fewusetoday,but
willapplytoanysize
companythatneeds
specificfeature
Willenablebest-of-breedphilosophytoadd
capabilityprimarycloudproviderdoesnot
offer/Cloud-to-cloudintegrationwillbea
challenge
Hybrid
Single Primarilysmalland
midsize
Gradualmigrationfromon-premtocloud,
usingsingleprovider(andpotentiallysame
platform)easesmanagement,orplanned
hybridarchitecturemoreseamlesswith
singlevendor/Easier,lesscostlytoadopt
eithercloudoron-prem
Multiple Large,usuallyinthe
midstofmigration
Fewbenefitstothisarchitecture;usuallynot
theendgoal/Significantchallengesto
managingandintegratingmultiplevendors
acrosson-premandcloud
Figure1:ArchitecturalDifferences
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A Look at Costs
Asstated,NemerteshasgathereddetailedcostsforIPtelephonyandUCCforseveral
years.Wegatherdataoncapital,implementation,andoperationalcosts,eachofwhich
includessub-components.(PleaseseeAddendumfordetailsonthecosts.)Costshave
beendroppingsince2011,butinthepastyear,on-premisescostsgenerallyhave
increasedamongallprovidersinbothIPtelephonyandUCC.(PleaseseeFigure2.)
Figure2:On-PremisesCostChanges
Capital
CapitalcostsareincreasingslightlywithIPtelephonyanddecreasingwithUCC.InIP
telephony,costsincreased7%yearoveryear,drivenprimarilybycompaniesbuying
newdevices,suchasheadsetsandvideophones,alongwithcapital,suchasSBCs.We
donotfindprovidersincreasingtheirpricesforIPtelephonycapital.ForUCC,capital
costsdroppedyearoveryearby25%.Thedecreaseisnotsurprising,giventhe
competitivelandscapeandprovidersbattlingforcustomeracquisition.
Implementation
Year-over-yearimplementationcostsnearlytripledwithforIPtelephony,andthey
roseby60%forUCC.Inbothcases,theincreaseisdrivenbyadditionaltimespent
planningandengineering.Additionally,companiesaredevotingmoreresources
duringtheimplementationphasetointegrationofIPtelephonywithadditional
functions(contactcenter,mobileenablement,collaborationapps),andintegrationof
UCwithenterpriseapps(ERP,CRM,analytics).Andinbothcases,companiesare
usingmorethird-partyprofessionalservicesandsystemsintegrators,whichaddto
implementationcosts.
Operational
ForbothIPtelephonyandUCC,ongoingoperationalcostsareincreasing(32%and
21%,respectively).ITstaffsarenotgrowing,whiledemandsfrombusinessunitsare.
Therefore,moreareusingmanagedservices.Inaddition,theyarespendingmoreon
trainingoftheITstafftopreparefornewintegrationsandservicedelivery
architecturechanges.Andfinally,equipmentmaintenancecostsareincreasing.
$275
$188
$140
$102 $127
$204
$577
$206 $250
$-
$100
$200
$300
$400
$500
$600
$700
2014 2015 2016
UC Costs, 2014-2016
Capital Implementation Operational
$540 $500
$341 $364
$61 $82 $108
$310
$704
$353
$275
$366
$-
$100
$200
$300
$400
$500
$600
$700
$800
2013 2014 2015 2016
IPT Cost Changes 2013-2016
Capital Implementation Operational
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HistoricalCosts
Inevaluatingon-premisescostsfromrecentyears,ShoreTelmostfrequentlyhadthe
lowestandMicrosoftthehighestfirst-yearcosts—acombinationofcapital,
implementation,andthefirstyearofoperationalcosts,notedabove.(Pleasesee
Figure3.)
Figure3:IPTFirst-YearCosts,AllSizes
Figure4:IPTFirst-YearCosts,RolloutsWith<1,000Endpoints
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
2013 2014 2015 2016
IP Telephony First-Year Costs, All Sizes of Rollouts
ShoreTel Cisco Avaya Microsoft OVERALL MEDIAN
$882
$670
$870
$1,379
$1,008
$1,176
$1,017
$995
$1,322
$1,670
$1,267 $1,383
$1,234
$951
$1,480 $1,408
$785
$1,519
$1,872
$999
$1,520
$500
$700
$900
$1,100
$1,300
$1,500
$1,700
$1,900
$2,100
2014 2015 2016
IP Telephony First-Year Costs (<1,000 Endpoints)
ShoreTel Alcatel Lucent Avaya Microsoft Mitel NEC Cisco
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Whenevaluatingfirst-yearcostsforspecificsizesofrollouts,moreprovidersemerge.
Forexample,amongcompanieswithfewerthan1,000endpoints,ShoreTel,again,has
thelowestfirst-yearcostsperendpoint,andeitherNECorCiscohasthehighestper
endpoint.ThoughShoreTel’scapitalcostsaregreaterthanmedian,its
implementationandoperationalcostsarethelowestofallproviders.NEC’shigh
implementationcostsandCisco’shighoperationalcostscontributedmosttotheir
highestcosts.(PleaseseeFigure4.)
Cost Model Tool
NemerteshastakenthedatacompiledinitsUCTCOresearch,andpopulateditina
costmodeltool.The2016projectincludedinterviewswith25ITleaders,andpre-
qualified,electronicsurveysofanother274companieswithmorethan100
employees.Toaugmenttheresearchwithadditionaldatafromsmallercompanies,we
conductedanothersurveyfocusingon341companieswithfewerthan100
employees.
Weanalyzedthedatabysizeoforganizationandbyprovider,normalizingcloudcosts
bynumberoflicensesandon-premisescostsbynumberofendpoints.Wethen
populatedthetoolwithdefaultdatafromourresearch,alongwithdataentrythatIT
professionalscanentertocustomizetheoutputtotheirownuniqueconfigurations.
Cost Model Examples
Weevaluatedthreescenarios:Companieswith100,750,and1,500employees.In
eachfigurethatfollows,readerscanseeactualoutputfromthetool,populatedwith
our2016data.
Ineachscenario,ShoreTeldemonstratesthegreatestcostsavingsandlowestoverall
costoverafive-yearperiod,whencomparedtotheindustryaverageandvarious
providersforbothon-premisesandcloud.(Thetoolcanruncalculationsforseveral
vendors;wesimplyselectedvendorsrandomlyforillustrativepurposes.)
Weassumeeachcompanystartswithanon-premisesdeployment(andassociated
numbersforstaffing,ITbudget,equipmentmaintenance,managedservices,etc.)of
widelyusedvendors–Cisco(100-employeeexample),Avaya(750-employeeexample),
andMicrosoft(1,500-employeeexample).Wethencomparewithaselectionof
providerstheongoingoperationalcostsofrunningthoseenvironmentswitha
completechangetoanewon-premisesrolloutorcloudservice.
Forcloudservices,wefactorininitialimplementationoftheservice,monthly
subscription,andongoingoperationalcostsforstaffingandmanagedservices.The
cloudanalysisincludesanoptiontorenthandsets.Inthescenariosweran,weopted
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tonotincludehandsetsintheanalysis(eitherrentedorpurchases)becauseactual
pricesafternegotiationsareconsistentforlike-for-likehandsets,regardlessof
vendors.
Notethatourresearchgenerallyshowsstaffingactuallygoesupduringatleastthe
firsttwoyearsofaclouddeployment,socostsavingsdonotalwayshappen.In
evaluatingthecloudscenariosfor750and1,500employees,thelackofcostsavingsis
drivenbythestaffingoperationalcoststomanagethesolutionandthepartner,the
initialimplementationcosts,andthemonthlysubscriptioncosts.Thereal-worldcosts
foreachofthosecomponentsvariesbyproviderandisreflectedonthecostmodel
output.
Theon-premiseschartsillustrateannualizedsavingsovertheexistingsolution.We
calculatethecostoverthefive-yearterm,andannualizeittoshowtherelativecost
savingsamongvendors.Wethenshowwhattherelativeannualcostsareforeach
solution—thefirstyearbeingthehighestbecauseitincorporatescapitaland
implementationcosts.Inscenarioswherecompaniesspreadoutthedeployment
beyondthefirstyear,thecapital,implementation,andadditionaloperationalcosts
wouldfollowfromtheyearofinstallation.
Thecloudchartsalsoshowannualizedcostsavingsovertheexistingsolution.Asour
researchdemonstrates,costsdropforsmallrolloutsmovingtothecloud.However,as
therolloutsizesincrease,thesavingsovertheexistingsolutionsarenotascommon.
InShoreTel’scase,thesavingsaresizable,insomecases.WefoundthatShoreTel’s
implementationcostsareaboutthesameormorethancompetitors,butresearch
participantswhousedShoreTeldevotedfewerITstaffmemberstomanagingthe
solutionandrelationshipthandidthoseusingcompetitors.Additionally,ShoreTel’s
actualsubscriptioncostswerelowerthancompetitors.Sooverafive-yearperiod,the
savingsaddsup.ShoreTel’soperationalcostshavebeenthelowestornearlythe
lowestsinceNemertesstartedtheresearch11yearsago.
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Scenario1:100-EmployeeFinancial-ServicesFirm,On-Premises
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$56,681
$71,296
$52,116
$98,400
5
$491,999 with ShoreTel
0.39%
8%
On-Prem Cost Analysis The Nemertes Cost Analysis Tools has calculated the following
results for your organization. This section provides an overview of the cost benefits of this technology.
TCO Overview for IP Telephony/UC On-Premises
Prepared for: Mary Smith Acme Corp IPT/UC ANALYSIS
Your annual savings with Industry Average:
Your annual IPT/UC savings with Mitel:
Years for cost analysis:
Best 5-year financial gain
Your annual IPT/UC savings with Avaya:
Your annual savings with ShoreTel:
Percentage of annual IT budget saved
Percentage of annual revenue saved
$0##
$50,000##
$100,000##
$150,000##
$200,000##
Year#1# Year#2# Year#3# #Year#4## #Year#5##
Annual Costs
#Industry#Average## Mitel# Avaya# ShoreTel#
#$?####
#$20,000##
#$40,000##
#$60,000##
#$80,000##
#$100,000##
#$120,000##
Industry#Average# #Mitel## Avaya# ShoreTel#
Annualized Cost Savings Over Current Solution
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Scenario1a:100-EmployeeFinancial-ServicesFirm,Cloud
$41,079
$38,125
$21,808
$67,916
5
$339,579 with ShoreTel
0.27%
5%
TCO Overview for IP Telephony/UC CloudPrepared for: Mary Smith Acme Corp IPT/UC ANALYSIS
Cloud Cost Analysis The Nemertes Cost Analysis Tools has calculated the following results for
your organization, comparing costs for your current solution with cloud offerings. This section provides an overview of the cost benefits of this technology.
Your annual savings with 8x8:
Your annual savings with Vonage:
Years for cost analysis:
5-year financial gain
Your annual savings with Mitel:
Your annual savings with ShoreTel:
Percentage of revenue saved
Percentage of IT budget saved
!$#!!!!
!$20,000!!
!$40,000!!
!$60,000!!
!$80,000!!
8x8! !Vonage!! Mitel! ShoreTel!
Annualized*Cost*Savings*
!$#!!
!$20,000!!
!$40,000!!
!$60,000!!
!$80,000!!
!$100,000!!
!$120,000!!
Year!1! Year!2! Year!3! !Year!4!! !Year!5!!
Annual*Cost*Comparison*
!8x8!! !Vonage!! !Mitel!! !ShoreTel!!
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Scenario2:750-EmployeeManufacturingCompany,On-Premises
$281,840
$229,158
$207,372
$514,524
5
$2,572,618 with ShoreTel
0.30%
11%
On-Prem Cost Analysis The Nemertes Cost Analysis Tools has calculated the following
results for your organization, comparing costs for your current solution with ShoreTel's new Cloud and On-Site offerings. This section provides an overview of the cost benefits of this technology.
TCO Overview for IP Telephony/UC On-Premises
Prepared for: Mary Smith Acme Corp IPT/UC ANALYSIS
Your annual savings with Industry Average:
Your annual IPT/UC savings with Cisco:
Years for cost analysis:
Best 5-year financial gain
Your annual IPT/UC savings with Microsoft:
Your annual savings with ShoreTel:
Percentage of annual IT budget saved
Percentage of annual revenue saved
$0##
$200,000##
$400,000##
$600,000##
$800,000##
$1,000,000##
Year#1# Year#2# Year#3# #Year#4## #Year#5##
Annual Costs
#Industry#Average## Cisco# Microso?# ShoreTel#
#$D####
#$100,000##
#$200,000##
#$300,000##
#$400,000##
#$500,000##
#$600,000##
Industry#Average# #Cisco## Microso?# ShoreTel#
Annualized Cost Savings Over Current Solution
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Scenario2a:750-EmployeeManufacturingCompany,Cloud
$32,031
($12,841)
($111,962)
$281,912
5
$1,409,560 with ShoreTel
0.17%
6%
Cloud Cost Analysis The Nemertes Cost Analysis Tools has calculated the following results for
your organization, comparing costs for your current solution with cloud offerings. This section provides an overview of the cost benefits of this technology.
Your annual savings with 8x8:
Your annual savings with Vonage:
Years for cost analysis:
5-year financial gain
Your annual savings with Mitel:
Your annual savings with ShoreTel:
Percentage of revenue saved
Percentage of IT budget saved
TCO Overview for IP Telephony/UC CloudPrepared for: Mary Smith Acme Corp IPT/UC ANALYSIS
!$(200,000)!
!$(100,000)!
!$)!!!!
!$100,000!!
!$200,000!!
!$300,000!!
!$400,000!!
8x8! !Vonage!! Mitel! ShoreTel!
Annualized*Cost*Savings*
!$)!!
!$100,000!!
!$200,000!!
!$300,000!!
!$400,000!!
!$500,000!!
!$600,000!!
!$700,000!!
!$800,000!!
!$900,000!!
Year!1! Year!2! Year!3! !Year!4!! !Year!5!!
Annual*Cost*Comparison*
!8x8!! !Vonage!! !Mitel!! !ShoreTel!!
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Scenario3a:1,500-EmployeeHealthcareCompany,On-Premises
$280,521
$163,154
$293,277
$709,058
5
$3,545,292 with ShoreTel
0.24%
9%
Your annual IPT/UC savings with Avaya:
Your annual savings with ShoreTel:
Percentage of annual IT budget saved
Percentage of annual revenue saved
Your annual savings with Industry Average:
Your annual IPT/UC savings with Cisco:
Years for cost analysis:
Best 5-year financial gain
On-Prem Cost Analysis The Nemertes Cost Analysis Tools has calculated the following
results for your organization. This section provides an overview of the cost benefits of this technology.
TCO Overview for IP Telephony/UC On-Premises
Prepared for: Mary Smith Acme Corp IPT/UC ANALYSIS
$0##
$500,000##
$1,000,000##
$1,500,000##
$2,000,000##
$2,500,000##
Year#1# Year#2# Year#3# #Year#4## #Year#5##
Annual Costs
#Industry#Average## Cisco# Avaya# ShoreTel#
#$@####
#$100,000##
#$200,000##
#$300,000##
#$400,000##
#$500,000##
#$600,000##
#$700,000##
#$800,000##
Industry#Average# #Cisco## Avaya# ShoreTel#
Annualized Cost Savings Over Current Solution
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Scenario3b:1,500-EmployeeHealthcareCompany,Cloud
($305,408)
($354,457)
($653,432)
$325,123
5
$1,625,613 with ShoreTel
0.11%
4%
TCO Overview for IP Telephony/UC CloudPrepared for: Mary Smith Acme Corp IPT/UC ANALYSIS
Cloud Cost Analysis The Nemertes Cost Analysis Tools has calculated the following results for
your organization, comparing costs for your current solution with cloud offerings. This section provides an overview of the cost benefits of this technology.
Your annual savings with 8x8:
Your annual savings with Vonage:
Years for cost analysis:
5-year financial gain
Your annual savings with Mitel:
Your annual savings with ShoreTel:
Percentage of revenue saved
Percentage of IT budget saved
!$(800,000)!
!$(600,000)!
!$(400,000)!
!$(200,000)!
!$+!!!!
!$200,000!!
!$400,000!!
8x8! !Vonage!! Mitel! ShoreTel!
Annualized*Cost*Savings*
!$+!!
!$200,000!!
!$400,000!!
!$600,000!!
!$800,000!!
!$1,000,000!!
!$1,200,000!!
!$1,400,000!!
!$1,600,000!!
!$1,800,000!!
Year!1! Year!2! Year!3! !Year!4!! !Year!5!!
Annual*Cost*Comparison*
!8x8!! !Vonage!! !Mitel!! !ShoreTel!!
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Conclusion and Recommendations
IPtelephonyandUCCdeploymentsareincreasinglybroadandcomplex.Moreapps
areincludedintheintegrationforanoverallUnifiedCommunicationsstrategy.And
althoughITleaderswouldliketocentralizeonasingleproviderandasingle
architecture,thatdoesnothappenfrequentlyenough.
Providersarerapidlyimprovingtheiron-premises,cloud,andhybridsolutions.In
particular,theyareawarethatmanyorganizationswanthybridarchitectures,either
temporarilyastheytransitionfromon-premisestocloud,orpermanentlyforvarious
businessreasons.Selectingaproviderwithacommonarchitectureiscrucialto
successintechnology,vendor,andendusermanagement.
AlongwithanincreasedfocusonhowUCCsolutionscanmakethecompanymore
effectiveandproductive,ITleadersmustre-examinecosts.Movingtocloudmaydo
wondersforagility,butorganizationsoftendonotsavemoney.Soifcost-savingsis
theprimarydriver,besuretoevaluateallcostsanddeterminewhichvendorwill
achievethatgoal.Regardlessofwhicharchitectureultimatelywins,selectinga
providerwithanaffordableoperationalcostisthemostimportantTCOcomponent
(vs.capitalorimplementation).Operationalcostfiguresextendmuchlongerthanthe
one-timecapitalorimplementationcosts.
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Addendum
Nemertesgatherscostdatainthefollowingareas:
Measurement Includes FormulaOn-Prem FormulaCloud
Capital PBX,endpoint
devicesandlicenses,
servers,other
hardware.Insome
cases,bundled
licensesinclude
certainUCapps
=(stafftime*loaded
hourlyrate)+3rdparty
costs/numberof
endpoints
=totalcapitalcosts/numberof
licenses
Implementation Stafftimeandthird-
partyconsultants
andintegrators
=(stafftime*loaded
hourlyrate)+3rdparty
costs/numberof
endpoints
=(stafftime*loadedhourly
rate)+3rdpartycosts/numberof
license
Operational Stafftime,
equipment
maintenance,3rd
partymanaged
services,training
andcertification.
Monthlyservicefor
Cloudservices
=((numberofFTEs*
averageannual
loadedsalary)+
(equipment
maintenance+
managedservices+
training/certification))
/numberof
endpoints
=((numberofFTEs*average
annualloadedsalary)
+(equipmentmaintenance+
managedservices+
training/certification))/number
oflicenses
AboutNemertesResearch:NemertesResearchisaresearch-advisoryandstrategic-
consultingfirmthatspecializesinanalyzingandquantifyingthebusinessvalueof
emergingtechnologies.YoucanlearnmoreaboutNemertesResearchatourWebsite,
www.nemertes.com,[email protected].