what independent evidence is out there?

Anaheim, CA | February 2-5, 2014

Tad HaasSr. Product ManagerMicrosoft

ROI: Accelerating your time to value with Project Online

Cindy LewisDirector of Knowledge ManagementAdvisicon

PC238

@TadHaas

@LewisCindy

Industry Evidence Real world examples

Agenda

Key considerations and take-aways

What independent evidence is out there?

“Cloud applications deliver 1.7 times more ROI than on-premises ones.”

14 years in business

Financial value of technology

450 published ROI case studies

ROI on actual deployments

70 deployments Enterprise application

3 year average Budget of $30,000-$9.5 M

Eliminate/Reduce Hardware and Software Investment

Servers maintained externally

Cloud Multiplier Factors

Benefits Increase Annually without a Proportional Cost Increase

Drives sustainable ROI

40% Less Consulting Time

No need for consulting time to get it up and running

24% Less Internal Personnel

IT not spending time on maintenance tasks

Considerations

Soft / Qualitative Considerations

Don’t have to deal with system admin

Remote, multi-device, access information anywhere

Software always up to date

Shorter learning curve for online

Respond to CXO’s desire for change and improve-ment

Up and running quickly

What do you consider when evaluating the ROI of online applications?

Accelerating ROI

Just-in-Time Project Online Deployment

Goal – up and running

as fast as possible

Configure during

deployment

Requires solid business processes

1 day or less

PM Maturity

Business Processes

Security Options

Task Updates/

Timesheets

Resource Manageme

nt

Portfolio Selection

Proof of Concept

Deployment

Discussion Areas to Help Accelerate ROI

Recognizing Value with Project Online at Major Automotive Retailer

Introducing Project OnlineEasily collaborate with others to quickly start and deliver winning projects

Work seamlessly across toolsCommunicate in real timeDiscover and share info

Improve everyday collaboration

Easily plan and manage your projectsManage anywhere

Stay organized

Give effective presentationsAnticipate changeSave time & effort

Deliver projects successfully

Explore the Office StoreTry Project Pro for Office 365

Simplify IT

TCO Comparison

Project Online Vs. Project Server Total Cost of Ownership

Automotive Retailer is evaluating the options of deploying Project Online and Project server for 60 Project Pro for Office 365 users and 460 Project Online users. Evaluating the total cost of ownership over six years show that Automotive Retailer can expect to save about 19% on Project Online.

Total

Hardware

Microsoft Software and Services

3rd Party Software and Services

Operations

Deployment and Migration

Total Annual Cost for 6 years

Total Annual Cost per User

Average Monthly Cost per User

% difference versus on-premises

Project Server Project Online

US$

- -

US$

32,731 US$

70,498

US$ 490

-

US$ US$

US$ 189,403

US$ 55,040

US$ 14,379

US$ 185,564

-19%

US$

US$

51.03 US$ 63.16

US$ 757.93 US$ 612.33

244,933 US$ 303,171

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000


Annual TCO Over Six Years

Deployment

Operations

3rd Party SW

MS Software

Hardware

TCO Comparison Charts

This chart shows the annual cost for the two options over a 6-year period. The chart makes it easy to see when costs are incurred for each option.

This chart shows the total cost over the 6-year period for Project Online is $349,430 less than the cost for Project Server.

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Cumulative Costs Over 6 Years

Project Server

Project Online

-

100,000

200,000

300,000

400,000

500,000

600,000


Cost Comparison

Project Server

Project Online

Cost Details – Project OnlineThis table shows the details behind the Project Online TCO numbers. Costs are shown for Hardware, 3rd Party Software and Services, Operations, Deployment, and Microsoft Software and Services.

ProjectHardware ? ? ? ? ? ?3rd Party Software and Services ? ? ? ? ? ?Operations ? ? ? ? ? ?Deployment and Migration ? ? ? ? ? ?

Microsoft Software and Services ? ? ? ? ? ?

Total US$ 245,423 245,423 245,423 244,443 244,443 244,443 244,933

189,403


55,040 - - - -

-

US$ -

US$ 980 - -

-

189,403 US$ 189,403 189,403 189,403 189,403 189,403

- - US$US$

- -

490

Project Online Project Online Project Online Project Online Project Online Average

- - - -

Project Online

55,040 55,040 55,040 55,040 55,040 55,040 980 980

Cost Details – Project ServerThis table shows the details behind the Project Server TCO numbers. Costs are shown for Hardware, 3rd Party Software and Services, Operations, Deployment, and Microsoft Software and Services. Costs have also been included for SharePoint Server since it is required for a Project Server deployment. The full cost of upgrading to the latest version of SharePoint and operating the SharePoint environment is included in this analysis.

ProjectHardware ? ? ? ? ? ?3rd Party Software and Services ? ? ? ? ? ?Operations ? ? ? ? ? ?Deployment and Migration ? ? ? ? ? ?

SharePointHardware ? ? ? ? ? ?Operations ? ? ? ? ? ?Deployment and Migration ? ? ? ? ? ?

Microsoft Software and Services ? ? ? ? ? ?

TotalHardware3rd Party Software and ServicesOperationsDeployment and Migration


Total US$ 521,059 194,228 194,228 521,059 194,228 194,228 303,171

US$ 211,494 70,498 - - 211,494 - -

Next Version Next Version Next Version

10,192

- - - - 104,080

-

4,128 38,528 4,128 4,128

32,946 - - US$

Project 2013 Project 2013 Project 2013

US$ 38,528

4,536

SP2013 SP2013 SP2013

104,080 - -

81,484

32,946 -

17,136

10,982

81,484 81,484

4,536 4,536

-

42,336

81,484 81,484

70,498

8,664 8,664 80,864 8,664 8,664 32,731

- - - - US$ 211,494 211,494

185,564 185,564 185,564

Next Version Next Version Next Version

81,484 US$ 42,336 4,536

- - US$ - - - - US$ 80,864

81,484

US$

- 185,564 14,379

US$- 43,138 -

185,564 185,564 185,564 - US$ 43,138 -

US$ 10,192


US$ 104,080

Average

15,595 4,128 - US$ - -

3,397 - 104,080 104,080 104,080 104,080

Business Benefits

Value of Project OnlineEasily collaborate with others to quickly start and deliver winning projects

Improve everyday collaborationStay organized

Deliver projects successfully Simplify IT

Reduce Administrative Time on Projects$100,221

Reduce Project Cost Overruns$5,000

Reduce Travel Costs with Improved Collaboration$43,200

Reduce Low Value Projects with Portfolio Management$2,000

Reduce License CostsNot Included in Analysis

Total Benefits per Year: $270,687

Decrease Project Reporting Time$120,266

NOTE: Customers may use this framework to estimate potential benefits. Microsoft cannot guarantee benefit amounts and makes no warranties, express or implied, with respect to the estimates provided here.

Stay organized

Potential BenefitReduce Project Administrative Time by up to 25%

$100,221estimated savings per year

Project Planning from Virtually Anywhere

Key Features• Project Online provides a familiar project

experience with zero upfront infrastructure costs

• Extend your experience to smartphones with an interface suited for small form-factors

• Project On Demand* provides quick access to your latest plans and personal settings

• Access projects by storing them in a SharePoint document library

Potential BenefitsHelp reduce project administrative time by up to 25% by allowing management of projects from virtually anywhere and on virtually any device.

*Available with Office 365

“I like to sign into my Project Online from any computer, even my tablet device. All my project data is stored in the cloud and I have it at my fingertips wherever I am."

-Dr. Anders Lehr, Senior Project Manager, Bassier, Bergmann & Kindler

Cust

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Succ

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Stay organized

Rapid Project Site Creation

Key Features• Quickly create a SharePoint site containing

documents, tasks, calendars• New Project Templates to help get started

creating project plans quickly• Quick Start – utilize visual tiles that identify

important project steps

Potential BenefitsHelp reduce project administrative time by up to 25% by quickly creating project plans and sites to manage team communications and documents.

“Not only can I share information in my team, I can open a project website for my customers as well and give them more transparency with their projects."


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Stay organized

Efficient Status Meetings

Key Features• Task Path highlighting in the Gantt Chart

helps determine task status and those critical to succeed

• Project timeline view helps visualize projects to present to your team, executives, stakeholders

• Access and update tasks in Outlook• Web-based timesheet system

“I have a very good status reporting. I can see what task is active and who is working on it at the moment. A lot of the emails that were necessary before are now gone.”

-Dr. Anders Lehr, Senior Project Manager, Bassier, Bergmann & KindlerC

ust

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Succ

ess

Sto

ryPotential BenefitsHelp reduce project administrative time by up to 25% by quickly tracking tasks and status timelines, while spending less time in status meetings

Stay organized

Deliver projects

successfully

Potential BenefitReduce Project Cost Overruns by 10%


Potential BenefitReduce Low Value Projects by 1% with Portfolio Management


Project Cost Management

Key Features• Add consumable material resources (lumber,

concrete) and assign them to tasks• Capture time-phased cost and benefit

estimates; derive financial valuation (ROI, NPV) during business case development

Potential BenefitsHelp reduce project cost overruns by 10%* by providing capabilities to better manage expected project costs.

“I haven’t seen Business Intelligence functionality in project management before, but with MS Project 2013 and Microsoft BI products this can be a fundamental new part of my daily work routine.”


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*Forrester indicates that a project solution can help reduce project cost overruns by 10%, “The ROI Of Project Portfolio Management Tools”, 2009

Project Risk Mitigation

Key Features• Team Planner – Indicators flag potential risks

in your project plan; allows for rapid “what-if” analysis

• Save time, enforce standards by defining Best Practices Templates

• Designate approvers at key gates in project workflow

“Most of my project management is about communication, knowledge & information management. Project Online with SharePoint services helps me to do that in a more centralized way.”


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Potential BenefitsHelp reduce project cost overruns by 10% by more providing capabilities to better manage project risk. Improving risk management can also help reduce project failure rate by 15%.**Forrester indicates that a project solution can help reduce project cost overruns by 10% and reduce project failure by 15%, “The ROI Of Project Portfolio Management Tools”, 2009

Project Team Resource Allocation

Key Features• See all demand to accurately identify resource

surpluses and deficits by skill• Compare demand to capacity to improve

utilization and fully staff projects• Easily find resources with availability using

multiple criteria

“The combination of Project Online and SharePoint gives us not only a better approach to project management, but better data and knowledge management.”

-Dr. Anders Lehr, Senior Project Manager, Bassier, Bergmann & KindlerC

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Potential BenefitsHelp reduce project cost overruns by 10% by more providing capabilities to better manage project risk. Improved resource allocation can also help improve project throughput times by 10%.**Forrester indicates that a project solution can help reduce project cost overruns by 10% and improve project throughput times by 10%, “The ROI Of Project Portfolio Management Tools”, 2009

Portfolio Optimization

Key Features• Define and select project portfolios based on

business drivers and key performance indicators

• Define different business drivers for each department/business unit

• Run what-if analysis under varying budgetary constraints to recommend the optimal portfolio

• Run advanced portfolio analytical techniques such as Efficient Frontier Modeling

“We finally have a central repository that is standardized, has common custom fields, and makes the data extraction to create reports much easier. Thus, some decisions really can be made faster!“

-Felipe Braun Azambuja, Senior Database Administrator, Intelbras

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Potential BenefitsHelp eliminate 1% of low-value projects* and save time by focusing on higher value projects through better portfolio management.

*Forrester indicates a project solution can help reduce the number of low-value projects by 10%, “The ROI Of Project Portfolio Management Tools”, 2009

Improve everyday

collaboration

Potential BenefitReduce Travel Costs with Improved Resource Planning and Collaboration$43,200estimated savings per year

Potential BenefitDecrease Project Reporting Time$120,266estimated savings per year

Project Communication

Key Features• Communicate in real time with team members,

enabled by Presence with Lync• The enhanced timeline in Project enables

people to get started and see right away the plan and schedule

“Having the ability to mouse over a resource an get its contact info, or even opening the Lync chat windows from that point makes us save time in a daily basis.”

-Felipe Braun Azambuja, Senior Database Administrator, Intelbras

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Collaboration

Potential BenefitsReduce travel costs with improved resources planning and collaboration. Improve project scheduling accuracy.

Enhanced Reporting and BI

Key Features• Utilize Microsoft BI capabilities to easily create

powerful reports and dashboards• Quickly mine data and analyze results with

easy access filtering for all columns• Utilize Odata web service for analysis and

reporting of project data, including tasks, resources

“It’s much easier to present project information through SharePoint than through our portal, and with mobile access, employees and customers can access and update project data on the go.”


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Collaboration

Potential BenefitsMake better project decisions with improved analytical and reporting capabilities. Save time generating custom reports

Simplify IT

Potential BenefitReduce License Costs

Not Included in Analysisestimated savings per year

Simplify ITLess hardware & maintenance

Solution focus on strategic value vs. systems

Apply resources to other high value work

Value of Project Online - HospitalEasily collaborate with others to quickly start and deliver winning projects









Decrease Project Reporting Time$67,349 NOTE: Customers may use this framework to

estimate potential benefits. Microsoft cannot guarantee benefit amounts and makes no warranties, express or implied, with respect to the estimates provided here.

Value of PPM DeploymentEasily collaborate with others to quickly start and deliver winning projects









Decrease Project Reporting Time$330,730 NOTE: Customers may use this framework to

estimate potential benefits. Microsoft cannot guarantee benefit amounts and makes no warranties, express or implied, with respect to the estimates provided here.

Project Online Vs. Project Server Total Cost of Ownership

Hospital is evaluating the options of deploying Project Online and Project server for 100 Project Pro for Office 365 users and 1,100 Project Online users. Evaluating the total cost of ownership over six years show that Hospital can expect to spend just slightly more for Project Online.

Total

Hardware


3rd Party Software and Services

Operations

Deployment and Migration

Total Annual Cost for 6 years

Total Annual Cost per User

Average Monthly Cost per User

% difference versus on-premises 29%

US$

US$

36.66 US$ 28.51

US$ 342.07 US$ 439.86

483,851 US$ 376,280

US$ 490

344

US$ US$

US$ 409,273

US$ 73,744

US$ 8,297

US$ 281,720


US$

- -

US$

7,797 US$

78,466

-

100,000

200,000

300,000

400,000

500,000

600,000


Annual TCO Over Six Years

Deployment

Operations

3rd Party SW

MS Software

Hardware

Reduce License Costs

Key Features• Multiple Project Pro installs per user, available

as a subscription through Project Pro for Office 365*

• Quickly install Project Pro with Click-to-Run*• Gain simplified management from a web-

based portal, including a service-health dashboard

• Manage administration based on SharePoint • Quickly adapt to new opportunities by

selecting from a wide range of Project apps in the Office Store

Simplify IT

Potential BenefitsMultiple PC installs per user (user-based licensing) and available as subscription through Office 365.Click-to-Run helps speed deployment.

Online Licensing Model PM vs. Timesheet or Task User only

*Available with Office 365

“By using a cloud-based solution, we got the agility we were seeking. We can use Project Online with 20 people, or we can scale to all 20,000 employees. It is easy to use and satisfies nearly 100 percent of our business needs.”

-Dr. Christian Buddendick,Head of Workplace Platform Services, Hilti

Corporation

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Proof of Concept Benefits

Project Online Deployment

Spent Money On

ServicesTrainingReconfigurationRetraining

Budget

Planned to Spend $65,000

Actually Spent $85,000

Project Online POC Deployment

Spent Money On

ServicesSample Data CleanupTrainingSupport

Budget

Planned to Spend $47,500

Spent same amount

Saved $37,500 with POC

Build Versus Buy POC

Project Online POC delivered in 25% of the time with 15% of the cost

Call to Action – Proof of Concept

1. All takeaways can be found here: http://advisicon.com/projconf.htm

2. Slide deck

3. Nucleus On-Premise versus On-Demand TCO Tool http://tinyurl.com/p3l8bsc

4. Questionnaire - Successful Deployments

5. Webinar Request – Successful Deployments

Takeaways

Contact Us

Cindy [email protected] @LewisCindy

Tad [email protected]@tadhaas

mailto:[email protected]



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© 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

what independent evidence is out there?

Documents

year slide

tco comparison slide

accelerating roi slide

project pro

project server deployment

project online users

project administrative

project cost overruns