hp hp networking portfolio: delivering authors: roi and value...

Document #246756. © 2014 IDC. www.idc.com |

IDC White Paper | HP Networking Portfolio: Delivering ROI and Value from Edge to Core

EXECUTIVE SUMMARY

IDC is observing a once-in-a-generation shift in computing and technology that we refer

to as the rise of the “3rd Platform.” The 1st Platform was the rise of computing in general.

The 2nd Platform was ushered in by the PC and client/server paradigm, enabling greater

personalization of computing and networked user access to enterprise applications. Over

the past five years, the 3rd Platform has emerged and is being shaped by mobility, Big Data,

cloud, and social technologies that enable employees to access critical corporate applications

anywhere, anytime. With the explosion of new technologies in the 3rd Platform, the

networking needs of the enterprise are transforming rapidly.

As the network has grown in strategic importance, it has become more complex and difficult

to manage. To combat this trend, enterprises are looking for ways to embrace solutions

that incorporate simplicity and greater manageability into their network infrastructure.

Architectural openness, common operating systems across all network devices, and solutions

enabling centralized management of all network resources in a “single pane of glass” platform

have become elements that can provide competitive advantage for the enterprise network.

To this end, HP offers a solution that provides integrated wireless and wired management

through a single pane of glass; the solution can be used not only in HP-only networks but also

where other vendors’ equipment may be part of the infrastructure. HP’s networking portfolio

is architected using open standards to help organizations transition from their current

network infrastructure to a simplified modern network.

IDC conducted a study of eight medium-sized to large organizations that had deployed an HP

Networking infrastructure to determine the return on investment (ROI) associated with their

HP Networking Portfolio: Delivering ROI and Value from Edge to Core

Sponsored by: HP

Authors: Rohit Mehra Randy PerryNolan Greene

March 2014

Business Value HighlightsAverage annual benefits (per 100 users):

$28,833Reduction in cost of networking:

35%Annual business productivity benefits (per 100 users):

$12,404Reduction in downtime:

64%Five-Year ROI:

489%Payback period:

8.3 months



implementation. These customers told IDC of improved operations as a result of streamlined

network visibility and the interoperability and maintenance efficiencies inherent in a unified

portfolio solution. IDC estimates that the businesses in the study reduced their total cost of

networking by 35% and achieved an ROI of 489%. This amounted to a five-year discounted

benefit of $101,186 per 100 users and a payback period of 8.3 months.

Given the momentum behind migration to unified wired and wireless networking and the

demonstrated ROI of HP’s end-to-end solution for our study respondents, IDC recommends

that companies consider HP networking equipment for their next network refresh. Unified

management capabilities, in addition to the demonstrated ROI, make HP Networking a smart

investment for unified networking infrastructure in midsize and large organizations.

Situation OverviewIn the 3rd Platform era, users are accessing apps and services across a wide variety of

enterprise IT assets, resources, and networks. The consumerization of IT, along with the power

of the smart mobile device, has changed user expectations in the workplace in many ways.

With the emerging Internet of Things (IoT) and the number of connected devices forecast to

reach 30 billion by 2020, users expect and require IT to be responsive in meeting the needs

of the access anytime, anywhere paradigm. This, along with other factors, increases the

importance of enterprise networks. Enterprise IT managers must ensure that their network

infrastructure is up to date and able to handle the demands of the modern connected

enterprise (see Figure 1).

Simplifying Networks and Improving Application Services While Reducing Operating Costs

It is no longer advisable for different parts of the network to be managed disparately or as

add-ons; employees demand a seamless end-to-end experience and IT managers desire

a simplified management platform that unifies wired and wireless with the same levels of

security, management, and control. Organizations now have the ability to take more holistic

architectural approaches to their network, enabling them to address the challenges of

megatrends such as mobility, BYOD, and cloud services. The challenge becomes balancing

new capabilities and investments with the cost-cutting mindset prevailing in many

enterprises. For IT organizations, this means finding ways to do more with less and extend the

value of existing capital investments. For network administrators, this means finding new ways

to squeeze out even greater levels of management efficiency.

The 3rd Platform is enabled by mobile broadband, social

media, Big Data, and cloud services.

Source: IDC, 2014

Innovative Industry Solutions

Mainframe Terminal

LAN/Internet Client/Server



The Enterprise IT ManagerHandling modern demands of the connected enterprise.

EXPLOSION OF MOBILITY WITH BYOD

GROWTH OF NETWORK ENDPOINTS

SUPPORTING NEW APPLICATIONSAND SERVICES

With the explosion of BYOD and cloud services, more devices are vying for network bandwidth than ever before.

The emerging Internet of Things (IoT) paradigm appears to ensure an onslaught of network-connected noncompute devices.

MIGRATION OF VOICE AND VIDEO TO IPOver one-third of enterprises use some type of video, such as desktop conferencing or telepresence.

Increasingly, with the proliferation of WLAN, critical enterprise applications such as voice and video are supported over IP.

EMERGENCE OF SOCIAL NETWORKINGEnterprises are using social media as a new means to foster communications with external audiences, including customers, partners, and suppliers.

CONVERGENCE AND THE ENABLING ROLE OF THE NETWORK

If the network goes down, it is no longer a minor inconvenience but a serious blow to business processes and company revenue.

CLOUD COMPUTING, DESKTOP VIRTUALIZATION, AND SOFTWARE AS A SERVICE Cloud computing and SaaS, key components of the 3rd Platform, are bringing new capabilities, efficiencies, and cost savings to the enterprise.

Source: IDC, 2014

FIGURE 1

Handling the Demands of the Modern Connected Enterprise



The FlexNetwork Architecture supports open, scalable, secure, and agile networking with a common operating experience. With an open, standards-based solution, enterprises can choose the best-in-class solution for their business needs.

Overview of HP Networking SolutionsFlexNetwork Architecture

HP FlexNetwork is a converged networking architecture that extends from the datacenter to

the workplace, providing cloud, multimedia, and mobility support with integrated security.

FlexFabric is used at the datacenter/network core, with FlexCampus and FlexBranch at the

network edge (see Figure 2).

HP FlexNetwork Architecture is supported by HP FlexManagement network management

software. This architecture enables the construction of unified networks that support both

desktops and mobile devices, wired and wireless access points, and a unified wired-WLAN

switch infrastructure. The FlexNetwork Architecture supports open, scalable, secure, and agile

networking with a common operating experience. With an open, standards-based solution,

enterprises can choose the best-in-class solution for their business needs.

FIGURE 2

HP FlexNetwork Architecture

Source: HP, 2014

FlexFabric

HP FlexFabric offers a new architectural approach that provides simplified, scalable, and

automated connectivity for virtualized compute, storage, and cloud through a common

datacenter fabric, delivering end-to-end software-defined network services in the datacenter.



HP FlexManagement is based on the HP Intelligent Management Center (IMC), which is a single-pane-of-glass management platform for HP-only and multivendor devices.

FlexCampus

HP FlexCampus, an end-to-end campus LAN solution, is a complete, secure network

infrastructure that connects users to job-critical services across multibuilding campuses. By

seamlessly connecting servers, storage, applications, and end users across a high-performance

network with a single-pane-of-glass management platform, this solution provides simplified

architecture, improved security, agile service delivery, and reduced IT costs.

FlexBranch

HP FlexBranch is a networking solution that converges infrastructure and network

applications to improve performance, simplify deployments, centralize management, and

reduce IT costs for enterprise branch offices.

FlexManagement

HP FlexManagement allows for the efficient management of the converged network,

addressing the needs of the network from the virtualized and cloud-enabled datacenter to

the branch edge. HP FlexManagement is based on the HP Intelligent Management Center

(IMC), which is a single-pane-of-glass management platform for HP-only and multivendor

devices. IMC provides complete visibility across entire networks, enabling complete

management of resources, services, and users. Unifying wired, wireless, and management

often leads to increased performance, enhanced security, and reduced infrastructure

complexity and costs.

Software Defined Networking

HP Software-defined Networking (SDN) provides an end-to-end solution to automate the

network from datacenter to campus and branch. Expanding the innovations with SDN, the HP

SDN open ecosystem — including HP SDN Developer Kit (SDK), SDN App Store, and Virtual

Application Network (VAN) SDN Controller — delivers the resources to develop and create

a marketplace for SDN applications. HP has expanded the number of OpenFlow-enabled

switches continuously over the past couple of years and now has 50 switches and 10 routers,

representing 25 million installed ports.



Companies were able to reduce their total cost of networking by 35% and at the same time improve the quality of networking services.

The Business Value of HP Networking SolutionsTo assess the benefits of implementing an HP Networking solution for enterprise customers,

IDC interviewed eight businesses that have deployed and are using HP Networking products

in production environments. All customers had been running HP networking solutions for a

sufficient period of time to provide perspective on how the solutions have made an impact

on their bottom line. All elements of the ROI analysis, including the benefits and investments,

are based solely on these interviews.

The interviews explored the companies’ business initiatives and assessed the benefits and

costs associated with implementing HP Networking platforms. These interviews were

supplemented by information from the IDC Business Value database with information

collected from over 3,000 companies in 43 countries and over 25 industries. The information

from the IDC Business Value database was used to validate these interviews and to

extrapolate the business value drivers to a general business audience.

The organizations interviewed are located in Asia/Pacific, Europe, and North America and are

classified by IDC as medium-sized to large organizations (see the Appendix).

Overview: Benefits Derived From HP Networking Deployments

The net result of deploying an HP Networking solution was found to be the ability to optimize

the networking environment. Companies were able to reduce their total cost of networking

by 35% and at the same time improve the quality of networking services in support of

business operations. The ROI drivers identified for HP Networking fell into four primary areas

(see Figure 3):

» Infrastructure cost reduction — asset optimization for a scalable enterprise

» IT staff productivity — reallocating resources to support innovation

» User productivity — enhanced reliability and operations quality

» Business productivity — revenue increase and enhanced business operations



On average, the organizations saved 34% on router costs and 23% on switching costs through consolidation.

FIGURE 3

Average Annual Benefits (per 100 Users)

Source: IDC, 2014

Infrastructure Cost Reduction

All of the organizations in the study purchased HP networking solutions with the goal of reducing

their infrastructure costs (see Figure 4). Overall, organizations were able to reduce their annual

infrastructure costs by 24%, saving $5,787 per 100 users. These benefits came from multiple

related factors, including the following:

» Networking equipment savings from standardization and consolidation. By

standardizing on HP Networking throughout the network — at the core, distribution, and

access layers — each company was able to reduce its networking equipment. On average, the

organizations saved 34% on router costs and 23% on switching costs through consolidation.

» Licenses, bandwidth, facilities, and power consumption benefits. Reductions in routers,

switches, and servers led to reductions in related infrastructure.

» Reduction in other related equipment. Some organizations were able to reduce their

servers and desktops and hardwired ports as a result of implementing consolidated

networking solutions. One respondent noted, “ There’s a many-to-one correlation.”

» Advantage in initial purchase cost of the equipment. Seven of eight organizations

expressed initial cost advantages of 15% to 65%.

» Lifetime warranty benefit. Seven of eight organizations described the benefits of HP’s

zero-cost lifetime warranty that comes with a range of HP Networking equipment. As one U.S.

college explained, “The switches are now 4.5 years old … and they have a lifetime warranty.

And that lifetime warranty is still in effect. If it breaks down, I’m going to get another one. I

might add in some additional switches in five years, [but that equates to] 10% per year savings

[in the interim].”

Total: $28,833

Businessproductivity

Userproductivity

Infrastructurecost reduction

IT Staff productivity

$12,404

$6,293$5,787 $4,349



FIGURE 4

Average Annual Infrastructure Cost Reduction

Source: IDC, 2014

IT Staff Productivity

In our study, the organizations were able to see significant improvements in their ability

to deliver IT services as evidenced in multiple IT service management key performance

indicators (KPIs). HP Networking equipment took less time to deploy and required less

ongoing “time spent keeping the lights on.” Through the IMC platform, rollout of new services

and deployment of new equipment pieces also took substantially less time (see Table 1).

TABLE 1

Source: IDC, 2014

10%18% 22%

27%43%

50% 50% 53%

66%

Lifetimewarranty

Server hardware

Initial investment

Networkinghardware

Facilities Software licenses

Power Desktop and hardwired ports and

access points

Bandwidth

IT Service Management KPIs Pre-Deployment Post-Deployment of HP of HP Networking Networking Change (%)

Mean time to install, 8 1.5 81 configure, test, and deploy new networking equipment (hours)

Percent of environment 50 90 80 managed centrally

Mean time to deploy 12 2 83 new services (weeks)

Percent of time spent 43 39 9 keeping the lights on



The standardized converged HP networking environment enabled the IT staff to reduce network downtime by 64% and speed up deployment by 25%.

By standardizing on a core-to-edge HP network, the organizations in the study were able to

reduce the time their IT staff spent managing their networking environment by 38%, saving

$4,349 per 100 users. In addition, a more streamlined networking environment supported

server virtualization, which lowered server management costs by 34%. The standardized

converged HP networking environment enabled the IT staff to reduce network downtime by

64% and speed up deployment by 25%. Key items mentioned by respondents included:

» Streamlined ongoing network management. The standardized HP environment

significantly reduced IT staff time spent on a number of activities: capacity/network

planning (49%); moves, adds, changes (46%); provisioning users (23%); and installing

networking equipment (10%). Time savings related to managing security was cited

by those organizations that had also deployed HP TippingPoint intrusion prevention

solutions. One college estimated that it saved “hundreds of hours per year” by reducing

security incidents related to students’ use of questionable Web sites.

» Streamlined ongoing server management. Some of the organizations credited

their deployment of HP networking with optimizing bandwidth and supporting server

virtualization. Server virtualization reduced server management load by as much as 50%

overall. Of this reduction, companies credited HP Networking with saving 1,000 hours a

year.

» Reduction in downtime. Organizations reduced networking downtime by 64%, saving

roughly 175 hours per year.

» Less spending on implementation and rollout. Standardizing on HP networking

created a common environment, which reduced the time and effort associated with

system rollout by 25%, saving 382 hours per year. As one manager whose company had

migrated to HP WLAN explained, “If we had selected another wireless vendor, I would

have to hire people with the special skills in order to be able to maintain and operate

it ... because we didn’t have any staff with those skills. We already used HP networking

equipment ... and so we had those skills [in-house].”

The combined annual average cost savings of these four IT staff productivity components

amounted to $4,349 per 100 users (see Figure 5).



FIGURE 5

Average Annual IT Staff Productivity Benefits (per 100 Users)

Source: IDC, 2014

User Productivity

Respondents described a dramatic decrease in network downtime after implementing HP

Networking. The increase in user productivity generated an average annual benefit of $6,293

per 100 users and accounted for 22% of the total benefit value from deploying HP Networking.

Enterprises that rely on the network for mission-critical or revenue-generating operations also

cited reduced risk of failure as a key benefit. On average, organizations in this study were able

to reduce downtime by 64%, saving 11.9 hours per year per network end user.

Optimizing the Networking Environment with HP

The net result of deploying an HP Networking solution was found to be the ability to optimize

the networking environment. Companies were able to reduce their total cost of networking

by 35% and at the same time improve the quality of networking services. IDC estimates that

the companies in this study would have had average annual networking costs of $470 per user

without HP. With an HP Networking solution, they averaged $307 in annual networking costs

per user (see Figure 6).

Initial deploymentResponding to downtimeServer managementNetwork management

$5,000

$4,500

$4,000

$3,500

$3,000

$2,500

$2,000

$1,500

$1,000

$500

$0

$57$160

$925

$3,207

Total: $4,349



FIGURE 6

Annual Networking Costs per User

Source: IDC, 2014

Business Operations Productivity Benefits

Through this study, IDC was able to measure the benefit of HP Networking’s solution as

it relates to the most pressing issues for the modern network (see Table 2). Operational

productivity benefits ranked as the most significant impact of a unified HP Networking

deployment for the enterprises surveyed and are categorized as follows:

» Cost of BYOD. While BYOD is revolutionizing the enterprise, its implementation can come

at a steep cost, especially for IT. BYOD requires extra effort in device provisioning, policy

setting, and security enforcement while challenging bandwidth and affecting traffic flows.

The BYOD management capabilities present in IMC led to an annual average cost savings

of $1,111 per 100 users.

» Productivity from 100% coverage. Given the proliferation of mission-critical cloud

applications and connected devices in every corner of the enterprise, network coverage

must encompass the business from end to end. Whether in a production or customer-

facing environment, network applications are directly tied to enterprise success. Seamless

wired and wireless network coverage is critical. In this study, the end-to-end coverage

capabilities of HP Networking resulted in an annual average cost savings of $8,763 per 100

users.

$500

$450

$400

$350

$300

$250

$200

$150

$100

$50

$0Other Vendor

(Pre-HP Deployment)HP Networking

DowntimePower and spaceInfrastructureIT staff

$36$48

$140

$83

$307

$99

$71

$174

$126

$470



Respondents described productivity benefits that translated to revenue opportunities. On average, the business revenue increase amounted to $138,135 per year.

» Productivity increase from higher bandwidth.

Even with the increased numbers of devices and applications on the network, end users still

expect fast connections without latency or jitter. With network applications often directly

tied to revenue-generating activities, slow networks can literally cost the organization more

than faster networks. Survey respondents reported an annual average cost benefit of $2,191

per 100 users as a result of productivity improvements from higher bandwidth.

TABLE 2

Source: IDC, 2014

Business Productivity: Increased Revenue

The other benefit that comes from enhanced business productivity in revenue-related processes

is increased revenue. In the past, organizations were usually unable to attribute revenue gains

to networking initiatives. However, over the past year, this has changed as organizations

are becoming more reliant on their networks in all aspects of their businesses. Some of the

respondents described productivity benefits that translated to revenue opportunities. On

average, the business revenue increase amounted to $138,135 per year.

IDC also asked respondents what goals they achieved by moving to HP Networking (seven of

eight organizations answered this question). Key findings are as follows:

» All organizations responded that they had improved business agility.

» Six organizations (75%) indicated that they were able to expand service offerings.

» Two organizations (25%) responded that they had entered new markets.

» Two organizations (25% — not the same two noted in the previous bullet) indicated that they

had generated new revenue opportunities. The new revenue opportunities were tied to

their ability to add wireless to their networking portfolio. This ability looms large in segments

where BYOD is a significant part of operations. One college estimated that by being able to

support four devices per student, it was increasing enrollment by 2–5%.

Business Productivity Annual Savings – Operations (per 100 Users)Reduce costs for BYOD $1,111

Productivity from 100% coverage $8,763

Productivity increase from higher bandwidth $2,191

Total $12,065



IDC found that customers that implemented HP networking solutions were able to realize a 489% return on their initial investment.

To combine revenue — a top-line benefit — with cost savings, we have to eliminate the costs

associated with that revenue by applying an operating margin (20%), which leaves a realized

revenue benefit of $27,627, or $339 per 100 users (see Table 3).

TABLE 3

Source: IDC, 2014

ROI Analysis

The bottom-line analysis that all companies should perform when considering changing or

upgrading their network infrastructure is whether the economic benefits of the investment

will outweigh the costs associated with implementing the new infrastructure. In this white

paper, IDC found that customers that implemented HP networking solutions were able to

realize a 489% return on their initial investment, achieving a five-year (discounted) benefit of

$101,186 per 100 users and payback in 8.3 months (see Table 4).

TABLE 4

Source: IDC, 2014

Revenue BenefitAnnual revenue increase $138,135Operating margin 20%Realized revenue benefit $27,627Benefit per 100 users $339

Five-Year ROI Analysis (per 100 Users)Discounted benefits $101,186Investment $17,167Net present value (NPV) $84,019ROI = NPV/investment 489%Payback period 8.34 monthsDiscount factor 12%



Figure 7 illustrates the costs and benefits of the HP unified networking solution over the five-

year period. Note that the cumulative net benefit is positive beginning in year 1.

FIGURE 7

Cost Benefit Analysis (per 100 Users)

Source: IDC, 2014

Challenges/OpportunitiesIDC sees a number of opportunities and challenges for HP as it continues to raise awareness

of its unified networking portfolio. Opportunities include:

» Articulate the value of single-pane-of-glass management with HP IMC. Using

multiple tools, often from multiple vendors, to manage all the aspects of a wired and

wireless network is a major pain point for network administrators. With IMC, HP offers a

solution that provides integrated wireless and wired management through a single pane

of glass, which can be used not only in HP-only networks but also where other vendors’

equipment may be part of the infrastructure.

» Emphasize the value of automation to the enterprise network. As IT is being asked to

do more with less, it must look to solutions that leverage existing infrastructure and allow

it to bring new levels of automation into integration, provisioning, and management

tasks — especially as enterprises look to integrate more of their wired and wireless

infrastructure. HP should position its unified portfolio as a way to help businesses (existing

HP customers and/or customers that do not currently have HP networking) meet that

requirement.

$140,000

$120,000

$100,000

$80,000

$60,000

$40,000

$20,000

$0

- $20,000

$125,408

$35,890$33,132$30,833$28,917

$16,539

-$10,463-$1,412 -$2,007 -$2,007 -$2,007 -$2,007

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

BenefitsInvestmentCumulative net benefit



Challenges include:

» Add unified networking customers by gaining mindshare in wireless networking.

There is continued opportunity for HP to raise market awareness of its wireless

capabilities, relative to its long-standing strength in wired products. As HP makes a play to

sell more enterprises on its unified networking solutions, HP will need to communicate its

wireless value proposition to all market segments.

» Deal with cultural change. A cultural change across the networking industry will be

necessary to bring together the traditionally disparate wired and wireless networks

operating with distinct IT teams. Ethernet- and IP-savvy network managers must learn

the nuances of RF and security policy, while RF and security policy managers must learn

the nuances of Ethernet and IP. This ability to adapt will result in an IT organization that

is seen not as a bottleneck or a department that says no but as a partner that is fully

invested in the success of the business.

ConclusionAs enterprises continue to attempt to do more with less and to streamline all aspects of

IT in the production environment, unified networking will gain traction and emerge as a

table stakes offering for the largest enterprise networking vendors. The exponential increase

of BYOD in parallel with record numbers of overall endpoint devices and business-critical

applications accessing the network has created new challenges for IT organizations.

Given constrained resources and unyielding demand, IT must identify new ways to provide

a holistic, unified wireless and wired networking experience while incorporating new levels

of automation and control to reduce its management burden. This solution will need to

be future oriented, offering the ability to make easy modular adjustments and providing a

foundation for flexible scalability.

HP’s complete line of wireless and wired networking solutions is designed to provide a

seamless end-to-end user experience and simplify network administration with single-pane-

of-glass management. In a study of eight midsize to large enterprises, IDC determined that

the ROI was 489% over a five-year period. Including HP in the consideration set for the next

network refresh would be a prudent idea for midsize to large enterprises.



Appendix

IDC’s ROI Methodology

For this ROI project, IDC worked with HP to determine the interview process and guide. HP

provided the names of the companies to interview. The organizations interviewed are located

in Asia/Pacific, Europe, and North America and are classified by IDC as medium-sized to large

organizations ranging in size from 500 to 3,000 employees. They have an average of 1,383

employees, 960 internal users, and 8,160 external users (see Table 5). They have an average of

843 wireless network access points and have grown that environment by 676%.

TABLE 5

Source: IDC, 2014

IDC uses a three-step methodology for conducting ROI analysis:

» Measure the benefits from the following areas:

» IT infrastructure cost reduction: Direct costs that include IT staff labor

reduction, hardware cost reductions (for purchase and deployment of

incremental network infrastructure components), and reduction in service and

support licensing costs

Demographics of 8 Organizations InterviewedAverage number of employees 1,383

Average number of internal users 960

Average number of external users 8,160

Average number of wireless access points 843

Average access point growth with HP 676%

Average length of deployment 2 years

Industry Animation, education, service provider, hotel

Region Asia/Pacific, Europe, North America



» IT productivity increases: Time savings from more efficient IT operations,

which enable the reallocation of IT staff time from support tasks (network

troubleshooting and maintenance) to higher-value activities such as supporting

new business applications or technology initiatives

» End-user productivity increases: Increases resulting from the decrease in

network downtime because of fewer downtime incidents and improved mean

time to resolution (MTTR)

» Ascertain the investment profile made in the purchase and implementation of

the solution and the associated training and maintenance costs. To get an accurate

assessment of the investment in deploying HP WLAN solutions, IDC asked for the

deployment, setup, upgrade, and maintenance costs, as well as the total cost of the

services and training. This investment included the loaded costs of any incremental staff

required.

» Calculate the payback period and ROI for the deployed solution by conducting a

depreciated cash flow analysis of the benefits and investments over a five-year period.

From the results of the interviews, IDC was able to calculate the average payback period

and rate of return from investing in the HP WLAN solution, as well as the net present value

of the savings. IDC bases the calculations on a number of assumptions:

» IDC uses a 12% discount rate in the ROI analysis to account for risk and to ensure

a conservative analysis.

» Because IT solutions require a deployment period, the full benefits of the solution

are not available during deployment. To capture this reality, IDC prorates the

benefits on a monthly basis and then subtracts the deployment time from the

first-year savings.

Note: All numbers in this document may not be exact due to rounding.

Note on exchange rates: The organizations interviewed for this study came from different regions of

the world. All investments and benefits were gathered in the organizations’ local currency and then

changed into U.S. dollars at current exchange rates. All figures used in this document are provided

in U.S. dollars.



About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence,

advisory services, and events for the information technology, telecommunications and

consumer technology markets. IDC helps IT professionals, business executives, and the

investment community make fact-based decisions on technology purchases and business

strategy. More than 1,100 IDC analysts provide global, regional, and local expertise on

technology and industry opportunities and trends in over 110 countries worldwide. For

50 years, IDC has provided strategic insights to help our clients achieve their key business

objectives. IDC is a subsidiary of IDG, the world’s leading technology media, research, and

events company.

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