lync roi study
DESCRIPTION
I summarized the Forrester Study based on Microsoft LYNC.It is amazing how much cost saving can be archived by using LYNCTRANSCRIPT
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RoI Calculation StudyLYNC Unified Communication
*)based on Forrester Study
Thomas Pött
MD and Senior Principal Consultant at infoWAN
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Content
Summary
Purpose
Methodology
Approach
Key Findings
Unified Communications
Prologue
TEI Framework
COST
BENEFITS
RoI Summary
Results
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Summary
Business communications are increasingly complex and require workers to
manage multiple devices, applications, and face-to-face interactions in an
attempt to stay productively connected with one another.
Workdays for many people are no longer 9 to 5;
Workdays are now 24x7 and span geographic boundaries, making
communication and decision-making even more difficult and much
more time-sensitive.
People typically list multiple phone numbers and email addresses — so rather
than simplifying things, a business card actually makes connecting quite
complicated. As a result, when a person wants to reach someone else, s/he
typically leaves numerous messages at multiple addresses.
Lync 2010 Brings Enterprise Voice, Better Collaboration Functionality,
And Improved System Stability
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Purpose
The purpose of this study is to provide decision makers
with a framework to evaluate the potential financial
impact of Microsoft’s UC products on their
organizations.
Forrester’s aim is to clearly show all calculations and
assumptions used in the analysis.
Decision maker can use this study to better understand
and communicate a business case for investing in
Microsoft’s UC products
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Methodology
For this study, Forrester employed four fundamental
elements of TEI in modeling the financial framework for
Microsoft’s unified communications products.
1. Costs
2. Benefits
3. Risk
4. Flexibility
Forrester Total Economic Impact™ (TEI) case study
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Approach
Forrester used a five-step approach for this study.Forrester gathered data from existing Forrester research relative to UC
and the enterprise messaging and collaboration market in general.
Forrester interviewed Microsoft UC strategy and product marketing
personnel in order to fully understand the potential value proposition of
UC products.
Forrester conducted a series of in-depth interviews with 12 organizations
currently using Microsoft UC products.
Forrester constructed a financial model to represent the findings gathered
in the interviews. This model can be found in the TEI Framework section
below.
Forrester created a composite organization based on the interviews and
populated the framework using data from the interviews.
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Key Findings
ROI. Based on the interviews with the 12 existing Microsoft UC customers
Benefits.
Replacing private branch exchange (PBX) telephone systems, valued at
nearly $500,000 over three years.
Direct cost savings from Web- and teleconferencing, amounting to $1
million over three years.
Reduced IT and telephony labor cost, estimated at nearly $1 million.
Fewer calls to the help desk, valued at a labor cost saving of more than
$190,000.
Increased user productivity, conservatively assessed at more than $12
million over three years.
Modest travel cost savings (and carbon footprint improvement), over
and above the travel cost savings already gained from earlier UC investments,
of $3.8 million.
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Key Findings
ROI. Based on the interviews with the 12 existing Microsoft UC customers
Costs.
Software licenses and software assurance costs: $1.2 million over three
years.
Server hardware: less than $60,000.
Voice terminal equipment: approximately $364,000.
Internal labor for pilot and testing: $24,000.
Internal training labor opportunity cost: $1.3 million.
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Key Findings
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Unified Communications Prologue
Presence Information
Presence information provides user status information (e.g., online, away, busy, in a meeting/call, do
not disturb).
Instant Messaging
IM was introduced to the enterprise to provide the capability to send and receive text messages in
real time over the corporate network.
Web And Videoconferencing
Ad hoc Web and videoconferencing made some improvements in efficiency in real-time decision-
making by providing links to presence management and point-and-click conference launches.
Voice Over Internet Protocol (VoIP)
VoIP made it possible to communicate via telephone over an IP network using SIP protocol instead of
over traditional time-division multiplexing (TDM) voice networks via PBX telephony infrastructure.
One-Click Communication
Early UC adopter companies looked to the prospect of having all of the means of contacting
individuals immediately available using only their name.
Mobility
Although mobile email has been around for years, today, more mobile devices can run the mobile
client for Lync 2010
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TEI Framework And Methodology
Four (4) fundamental elements of TEI in modeling Microsoft Lync Server 2010’s
service
1. Costs.
2. Benefits to the entire organization.
3. Flexibility.
4. Risk.
.
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Costs
Page 11 There are six main cost categories for the Lync Server 2010 UC
solution. These include:
1. Server software license costs.
2. User software license costs.
3. Hardware costs (for servers and user devices).
4. Professional services from system integrators to design and deploy the
system.
5. Internal IT administration costs for ongoing management and support.
6. End user training costs.
.
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Total Costs
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Benefits
Lync is the next level of integration with Microsoft applications and
back-end apps and SharePoint apps. . . . This is a cultural change not
just technology
Getting the right people in attendance, doing rework in real time,
cutting time to project completion. It used to take three meeting[s] to
get a decision; now we are down to one
It’s so much more effective and motivating.
(Director, collaboration technology, global engineering conglomerate)
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Benefits - Cost Savings From PBXs Eliminated Or Avoided
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Benefits - Cost Savings From Teleconferencing Services
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Benefits - Cost Savings From Web Conferencing Services
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Benefits - Savings On IT And Telephony Labor
Features of the new Lync Server 2010 environment that contributing to IT labor
savings and higher-performing IT teams include:
Call admission control (CAC). This feature aids WAN bandwidth
management, routing voice over WAN and video over Internet.
PowerShell scripting.
Lync’s Web-based control panel (CSCP)
SBA. As organizations decommission PBXs at branch offices, they can buy
gateways and SBAs from multiple vendors instead of being captive to a PBX
supplier.
.
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Benefits - Savings On IT And Telephony Labor
*FTE: Field Technical Engineer
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Benefits - Enhanced User Productivity
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Benefits - Travel Cost Savings
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LYNC – make your company „GREEN“
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Result: Total Benefits — Non-Risk Adjusted
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Result: Cash Flow — Risk Adjusted
9,956,808$
ROI = Total Benefits / Total Cost = -------------- = 3.369 (337%)
2,954,797$
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Important observations on the business value of the Lync 2010 investment
Higher work efficiency of employees
Replacing PBX telephone systems with Lync Server 2010 software.
Cost reductions for Web- and teleconferencing charges.
IT and help desk labor cost savings.
Enhanced individual and workgroup productivity.
Travel cost savings. (positive “green” impact)
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RoI Example infoWAN Asia
RoI = Benefits/ Cost
Benefits = 272,800 –
83,700 = 189,100 RM
Cost = 83,700 RM
FY 2010 FY 2011
Flights KUL - MUC 14 flights 2 flight
17,000RM/ flight 238.000,00 MYR 34.000,00 MYR
Call MY - GER 8 month / RM750 12 month / RM150HQ to Subsidiary 6.000,00 MYR 1.800,00 MYR
Time difference meeting efficiency (6-7hr MY - GER)
until decision 2x3 days/ mth á RM600 3x 4hr /mth á RM600
28.800,00 MYR 10.800,00 MYR
operational period operational period8 month 12 month
SubTotal 1:272.800,00 MYR 46.600,00 MYR
Cost for LYNCSERVER - MYR 6.500,00 MYR
CAL - MYR 4.200,00 MYR TM Net - MYR 19.200,00 MYR (12xRM1600)
Admin - MYR 7.200,00 MYR
(12x 1 day a RM600)
- MYR 37.100,00 MYR
Total Costs:
272.800,00 MYR 83.700,00 MYR
RoI226% in 12 month
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Thank you for your attention
Please ask infoWAN for your company‘s
RoI calculation !!
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