This document summarizes a study commissioned by Equinix to analyze the total economic impact and potential return on investment from using Equinix interconnection solutions. It interviewed several Equinix customers and constructed a composite organization based on their experiences. The key findings were that the composite organization experienced a 300% return on investment over three years, with $17 million in net benefits from improved application performance, cost savings, and new revenue opportunities enabled by Equinix. The benefits outweighed the upfront and ongoing Equinix costs and internal implementation expenses.
Building Innovative Industry Solutions for System z
This document summarizes a presentation about using System z for smarter computing. It discusses how System z can help organizations reduce IT costs across various industries by up to 56% while improving capabilities. Examples are given of companies leveraging System z to deliver new innovations in areas like transportation, banking, and technology. Industry frameworks are presented as the foundation of IBM's industry solutions, with System z playing a key role in supporting workloads like core banking, payments, and risk management.
Since announcing its “Cloud First” policy in 2010, the Federal government has correctly identified cloud computing as a way to reduce costs and improve the use of existing assets, and has accordingly prioritized its adoption. It has also taken judicious steps to protect Federal networks from nefarious cyber-attacks and promote the dissemination of best practices for cybersecurity. The Federal government has also embraced mobility as a means to conduct work from any location. But until now, the implementation of these initiatives has been fragmented and lacked coordination across Federal agencies. This paper offers a framework for integrating these programs in a way that enables the Federal government to realize the economic, technological, and mission-effectiveness benefits of cloud services while simultaneously meeting current Federal cybersecurity
requirements. It advocates shifting from a compliance-based cybersecurity paradigm to
one that is risk-based and focusing on how to most effectively secure their implementation of cloud services.
This benchmark is the result of the collaboration between Burstorm and Rice University and uses a high degree of automation. The scope of the first benchmark is seven suppliers across three continents with a total of 96 different instance types. The benchmark was executed every day, for at least 15 days. The results are normalized to a monthly pricing model to establish the price-performance metrics.
Iaetsd design and implementation of secure cloud systems using
The document proposes a Business Continuity Management (BCM) framework to address data security issues when transforming cloud systems into a meta cloud. BCM is a holistic management process that identifies risks and reduces the impacts of data leakage. It involves understanding the organization, determining continuity strategies, developing response plans, and exercising/reviewing plans. The framework contains components like business continuity leads, working groups, and links to emergency preparedness. It uses a plan-do-check-act approach and aims to embed continuity into the organization's culture.
Internet of Things: From Strategy to Action: Driving IoT to Industrial Scale
This document discusses scaling Internet of Things (IoT) solutions from pilots to an industrial scale. It argues that full IoT value is not realized by connecting just a few devices, but rather by focusing on how these technologies can impact business strategies. To scale IoT solutions, organizations must address challenges like large numbers of devices, high volumes of data, security, and partner capabilities. Successful scaling requires understanding the business problem, how IoT amplifies value across a product's lifecycle, considering the physical environment, and realizing that an integrated approach from many partners is needed. The goal is for IoT systems to interact and become embedded in physical workplaces to drive business transformation.
Cybersecurity at a premium: The state of cyber resilience in insurance
Accenture’s report finds insurance firms could do more to prevent security breaches and strengthen cyber resilience. Read our report to see how Accenture can help your insurance firm become a cybersecurity leader: https://accntu.re/31i8ic3
Hold Firm: The State of Cyber Resilience in Banking and Capital Markets
Accenture’s report finds firms in capital markets and banking could do more to prevent security breaches and strengthen cyber resilience. Read our report to learn how Accenture can help you rise to the top of the class: https://accntu.re/3k8mCN1
The Accenture Security Index, based on Accenture's High Performance Security research, assesses performance across 33 cybersecurity capabilities within the Banking industry. It is intended to help banking leaders understand the effectiveness of their security measures. To learn more about Banking results, read our blog series: https://accntu.re/2vj59KC
The Cloud Playbook showcases how Booz Allen’s Cloud Analytics Reference Architecture can be utilized to build technology infrastructures that can withstand the weight of massive data sets - and deliver the deep insights organizations need to drive innovation.
Jayesh Navin Shah, from Ipsos MORI Public Affairs, presented our findings on cyber resilience among UK businesses and charities at the SC Digital Congress 2021. The findings are taken from Ipsos MORI’s Cyber Security Breaches Survey 2021, carried out on behalf of the UK Department for Digital, Culture, Media and Sport.
https://www.sccongressuk.com/digital-congress/
Booz Allen Hamilton offers an integrated suite of cloud capabilities, deep subject matter expertise, and unparalleled hands-on experience with a broad range of cloud technology products.
The document summarizes several projected IT trends for 2008 based on a presentation given to a government organization. Some of the key trends discussed include increased focus on green IT to reduce carbon emissions, further adoption of unified communications and IP telephony, greater use of business process modeling and metadata management, and social software gaining more prominence in enterprises. Virtualization and cloud computing are also areas that will continue advancing to improve efficiency and flexibility.
As businesses become more reliant on technology we are witnessing rising demand for tech stack training tools. Check out Catalyst Investors' research report to learn about opportunities in this category.
Booz Allen Hamilton uses its Cloud Analytics Reference Architecture to build technology infrastructures that can withstand the weight of massive datasets – and deliver the deep insights organizations need to drive innovation.
The Federal government today is in the midst of a revolution. The revolution is challenging the norms of government by introducing new ways of serving the people. New models for creating services and delivering information; new policies and procedures that are redefining federal acquisition and what it means to be a federal system integrator. This revolution also lacks the physical and tangible artifacts of the past. Its ephemeral nature, global expanse and economic impact all combine in a tidal wave of change. This revolution is called cloud computing.
Cloud Computing is an information technology gold rush. Everything from social media and smart phones to streaming video and additive games come from the cloud. This revolution has also driven many to wonder how they can retool themselves to take advantage of this massive shift. Many in IT see the technology as an opportunity to accelerate their careers but in their attempt to navigate their cloud computing future, the question of what type of training, vendor-neutral or vendor-specific, is right for them
Building Innovative Industry Solutions for System zdkang
This document summarizes a presentation about using System z for smarter computing. It discusses how System z can help organizations reduce IT costs across various industries by up to 56% while improving capabilities. Examples are given of companies leveraging System z to deliver new innovations in areas like transportation, banking, and technology. Industry frameworks are presented as the foundation of IBM's industry solutions, with System z playing a key role in supporting workloads like core banking, payments, and risk management.
Since announcing its “Cloud First” policy in 2010, the Federal government has correctly identified cloud computing as a way to reduce costs and improve the use of existing assets, and has accordingly prioritized its adoption. It has also taken judicious steps to protect Federal networks from nefarious cyber-attacks and promote the dissemination of best practices for cybersecurity. The Federal government has also embraced mobility as a means to conduct work from any location. But until now, the implementation of these initiatives has been fragmented and lacked coordination across Federal agencies. This paper offers a framework for integrating these programs in a way that enables the Federal government to realize the economic, technological, and mission-effectiveness benefits of cloud services while simultaneously meeting current Federal cybersecurity
requirements. It advocates shifting from a compliance-based cybersecurity paradigm to
one that is risk-based and focusing on how to most effectively secure their implementation of cloud services.
This benchmark is the result of the collaboration between Burstorm and Rice University and uses a high degree of automation. The scope of the first benchmark is seven suppliers across three continents with a total of 96 different instance types. The benchmark was executed every day, for at least 15 days. The results are normalized to a monthly pricing model to establish the price-performance metrics.
Iaetsd design and implementation of secure cloud systems usingIaetsd Iaetsd
The document proposes a Business Continuity Management (BCM) framework to address data security issues when transforming cloud systems into a meta cloud. BCM is a holistic management process that identifies risks and reduces the impacts of data leakage. It involves understanding the organization, determining continuity strategies, developing response plans, and exercising/reviewing plans. The framework contains components like business continuity leads, working groups, and links to emergency preparedness. It uses a plan-do-check-act approach and aims to embed continuity into the organization's culture.
Internet of Things: From Strategy to Action: Driving IoT to Industrial ScaleCognizant
This document discusses scaling Internet of Things (IoT) solutions from pilots to an industrial scale. It argues that full IoT value is not realized by connecting just a few devices, but rather by focusing on how these technologies can impact business strategies. To scale IoT solutions, organizations must address challenges like large numbers of devices, high volumes of data, security, and partner capabilities. Successful scaling requires understanding the business problem, how IoT amplifies value across a product's lifecycle, considering the physical environment, and realizing that an integrated approach from many partners is needed. The goal is for IoT systems to interact and become embedded in physical workplaces to drive business transformation.
Cybersecurity at a premium: The state of cyber resilience in insuranceaccenture
Accenture’s report finds insurance firms could do more to prevent security breaches and strengthen cyber resilience. Read our report to see how Accenture can help your insurance firm become a cybersecurity leader: https://accntu.re/31i8ic3
Hold Firm: The State of Cyber Resilience in Banking and Capital Marketsaccenture
Accenture’s report finds firms in capital markets and banking could do more to prevent security breaches and strengthen cyber resilience. Read our report to learn how Accenture can help you rise to the top of the class: https://accntu.re/3k8mCN1
The Accenture Security Index, based on Accenture's High Performance Security research, assesses performance across 33 cybersecurity capabilities within the Banking industry. It is intended to help banking leaders understand the effectiveness of their security measures. To learn more about Banking results, read our blog series: https://accntu.re/2vj59KC
The Cloud Playbook showcases how Booz Allen’s Cloud Analytics Reference Architecture can be utilized to build technology infrastructures that can withstand the weight of massive data sets - and deliver the deep insights organizations need to drive innovation.
Jayesh Navin Shah, from Ipsos MORI Public Affairs, presented our findings on cyber resilience among UK businesses and charities at the SC Digital Congress 2021. The findings are taken from Ipsos MORI’s Cyber Security Breaches Survey 2021, carried out on behalf of the UK Department for Digital, Culture, Media and Sport.
https://www.sccongressuk.com/digital-congress/
Booz Allen Hamilton offers an integrated suite of cloud capabilities, deep subject matter expertise, and unparalleled hands-on experience with a broad range of cloud technology products.
The document summarizes several projected IT trends for 2008 based on a presentation given to a government organization. Some of the key trends discussed include increased focus on green IT to reduce carbon emissions, further adoption of unified communications and IP telephony, greater use of business process modeling and metadata management, and social software gaining more prominence in enterprises. Virtualization and cloud computing are also areas that will continue advancing to improve efficiency and flexibility.
As businesses become more reliant on technology we are witnessing rising demand for tech stack training tools. Check out Catalyst Investors' research report to learn about opportunities in this category.
The document summarizes the findings of a survey of 110 cloud computing implementation projects conducted by IBM. Key findings include:
1) Primary motivations for cloud implementations were IT efficiencies, ease of use consumer interfaces, and new charging models, while security concerns, pricing strategies, complexity, lack of standardization, and unclear value propositions were biggest inhibitors.
2) Integrated vendor offerings and ongoing support were in high demand. Service design was the most important ITIL discipline.
3) Current cloud usage focused on development/test and non-critical workloads, but respondents expected to deploy clouds across all workloads in two years. There was a 30/70 split between public and private clouds currently.
This document discusses how 5G networks and small cell infrastructure can help cities become smart cities and realize economic benefits. It states that 5G will enable smart city solutions that can save on energy usage, traffic, and transportation costs. Deploying small cells across cities will be key to delivering 5G and unlocking these benefits. The document estimates that 5G deployment could generate $275 billion in infrastructure investment, creating up to 3 million jobs and adding $500 billion to GDP. It also provides examples of how 5G could enhance energy grids, transportation, and public safety in cities. Overall, the document argues that cities that support 5G deployment through policies like streamlining permits will be best positioned to benefit economically and become smart cities.
Nintex Workflow for Sharepoint - Return on Investment Whitepaper by Forrester...David J Rosenthal
Nintex commissioned Forrester Research to conduct aTotal
Economic Impact™ (TEI) study and examine the potential
return on investment (ROI) that enterprises may realize by
deploying Nintex’s workflow platform. The purpose of this
study is to provide readers with a framework to evaluate the
potential financial impact of using the Nintex workflow platform
within their organizations.
To better understand the benefits, costs, and risksassociated
with the implementation of the Nintex workflow platform, which we will refer to as the Platform, Forrester interviewed several
customers with multiple years of experience using Nintex Workflow and Nintex Forms. These customers recognize the value
inherent in automating processes. Their colleagues and customers are working both in offices and on mobile devices and
are spread across many countries. Content necessaryto collaborate and make business decisions is stored in many
applications across these devices. They have some well-defined processes, but the steps leading up to these processes or
to connect closely related processes are loosely defined and manual. With Nintex Workflow, customers can automate their
processes and create workflows that connect their people, processes, and content. With Nintex Forms, Nintex provides an
easy way to collect data from colleagues and customers within the workflow. Using Nintex Mobile, customers can extend
these workflows to users who are on the go. With Nintex Connectors, customers can easily integrate cloud services and lineof-business applications into their workflows.
Prior to using the Platform, these customers were mostly relying on custom code to automate processes. However, it was
difficult and time-consuming to build workflows, and many processes remained manual (e.g. paper-based,email, excel files)
while a backlog of requests for automation grew. This left customers frustrated with process inefficiencies and the inability to
automate faster. With the Platform, customers are able to automate processes in pace with demand, connect the right
people and data in each process, and easily make changes to workflows as processes change. This results in increased
productivity for end users and IT, reduced costs associated with automation, better collaboration, and higher quality of work.
The Total Economic Impact™ Of Cisco Data Virtualizationxband
Cisco commissioned Forrester Consulting to conduct a study on the total economic impact of Cisco's data virtualization solution. Forrester interviewed customers who had been using Cisco Data Virtualization for multiple years. The key findings were:
1) Customers experienced cost savings from IT project cost avoidance and reduced IT operating costs, as well as increased productivity from empowering employees to access data more quickly.
2) For a representative 20,000 employee organization, the benefits over 3 years included $1.3 million in IT project cost savings, $3.8 million from increased productivity, and 50% reduction in IT operating costs.
3) The costs included an initial $600,000 software license and $320,000
IBM Total Economic Impact Study - Cost Savings and Business BenefitsCasey Lucas
This document summarizes a Forrester study on the total economic impact of implementing IBM Connections. It found that the representative organization experienced:
1) A three-year return on investment (ROI) of 168% and payback period of 10-11 months from increased productivity, reduced employee turnover, and lower IT costs.
2) Total three-year benefits of $26.5 million versus costs of $10 million, for a net present value of $16.6 million.
3) Key benefits included a 10% increase in employee productivity, savings of over $1.5 million from a 5% reduction in employee turnover, and $500,000 in lower IT operating costs.
This document presents a framework for measuring the business value of IT investments. It defines business value as the financial benefits realized by an organization from IT solutions in areas such as cost savings, revenue increases, operational efficiencies and competitive advantages.
The framework includes identifying relevant "value dials" or metrics to quantify the benefits of a proposed IT initiative. It also introduces the concept of a Business Value Index to evaluate initiatives based on their estimated financial returns and impact on IT efficiency.
Two case studies are presented to demonstrate how the framework can be applied to evaluate proposed IT projects and justify their expected business value in order to secure approval and funding.
The document is a Forrester Consulting study on the total economic impact of IBM UrbanCode. It includes interviews with four IBM UrbanCode customers representing industries such as banking, insurance, and financial services. The interviews found that with IBM UrbanCode, organizations were able to reduce deployment times by up to 75%, improve application development productivity by at least 15%, and lower costs by reducing failed deployments. A composite organization analysis estimates a 482% return on investment and $3.1M in net benefits over three years from deploying IBM UrbanCode.
The Total Economic Impact of Using ThoughtWorks' Agile Development ApproachThoughtworks
The document analyzes the total economic impact of using ThoughtWorks' agile development approach based on interviews with four of ThoughtWorks' customers. It finds that the customers experienced benefits such as improved efficiency, reduced defects, and faster delivery of key business requirements. It constructs a financial model for a composite organization based on these customers, estimating a three-year ROI of 29% after adjusting for risks. The analysis indicates that agile development with ThoughtWorks can provide a significant return exceeding typical hurdle rates for IT investments.
The document discusses establishing architecture for large enterprise solutions in an agile environment. It notes that while agile approaches help deliver software faster, large complex systems still require upfront architecture and design work to avoid excessive rework. It recommends using architecture runway and architectural runways to plan architecture for 6-12 months and 18-24 months respectively, to guide iterative development. Architects work with product owners to refine architecture runways based on market changes and new requirements.
The document describes an enterprise integration architect service that designs integrated systems for modern enterprises. It discusses executable architecture, which involves assessing current systems, architecting integrated solutions, and assembling components. The service provides modular, standards-based integration across system-of-systems, enterprise-of-enterprises, and cloud-based modernization. It follows a three-phase methodology of analyze, design, and validate to produce accountable, flexible integration architectures.
Project Deliverable 2 Business Requirements1Project Deliverab.docxwkyra78
Project Deliverable 2: Business Requirements 1
Project Deliverable 2: Business Requirements 3
Project Deliverable 2: Business Requirements
Jessica Hill
Dr. Jan Felton
CIS 590: Directed Research Project
February 1, 2015
Table of Contents
1 Business Requirements……………………………………………………………….………3
1.1 Project Overview…………………………………………………………………….........3
1.2 Background including current process…………………………………………….3
1.3 Scope………………………………………………………………………………3
1.3.1 Scope of Project……………………………………………………….........4
1.3.2 Constraints and Assumptions……………………………………….............5
1.3.3. Risks…………………………………………………………………..........5
1.3.4. Scope Control ………………………………………………………………5
1.3.5. Relationship to Other Systems/Projects ……………………………………6
1.3.6. Definition of Terms (if applicable)………………………………………...6
1.1 Project Overview
This project is an information Technology project that was requested by WebFOCUS Company. The project is a development of a secure website that offers online advertisements, sharing, collection and storage of visual tools. The Website should be hosted in a cloud environment and should provide database functions for use in data warehousing
1.2 Background including current process
WebFOCUS was developed in order to generate profit through online advertisements as well as offshoring and outsourcing of business operations. Currently the business uses the relational database analysis. The company’s website in operated on both Windows and Mac OS X operating systems. In order to enhance virtualization, the company is seeking cloud computing services as well as data warehousing for data analysis purposes.
The project goals include;
a. Generation of profit through the charges on advertisement
b. Integration of database and operating systems in employee management.
c. Outsourcing work at a reduced cost (Olsen, 2006)
d. Developing a secure network infrastructure
e. The use of cloud computing to handle and share data
Tasks
a. Develop a website for advertisement
b. Install security measures
c. Integrate the website with cloud computing functionalities
d. Develop the outsourcing functionalities within the website
1.3 Scope
The scope of this project involves the determination and documentation of the project goals, deliverable, tasks, the cost and the deadlines.
1.3.1 Scope of the Project
Project Deliverables:
Scope Statement: This statement outlines the major activities to be carried out within the time allocated for the project. The scope statement’s goal is the financial analysis and financial documents regarding the operation of the project. The cost incurred and the revenue generated can be compared to observe the progress of the project.
Progress Reports: These include the process and the stages at which the project is undergoing. For the development of secure network infrastructure, the progress report deliverables would be network firewall types, authenticati ...
This document analyzes the total economic impact of deploying VMware Virtual Desktop Infrastructure (VDI) for a healthcare customer. Key findings include:
- The customer achieved a 122% ROI over 4 years, with an 8 month payback period, through savings from reduced PC and support costs, increased productivity, and electricity savings.
- Benefits were quantified for PC replacement savings, reduced IT support staff needs, improved worker productivity, and electricity savings from thin clients. Additional qualitative benefits included improved security, user experience, and business continuity.
- Over 4 years, the total benefits were $3.8 million compared to total costs of $1.7 million, for a net savings of over $2 million
Webinar featuring Forrester TEI study: Driving 496% ROI with Tasktop VizTasktop
Business and IT leaders are under constant pressure to deliver outstanding customer experiences, fueled by technology and innovation, at the speed of the market and at a competitive cost.
To better understand how Tasktop Viz™ can connect enterprise transformation initiatives with financial benefits, Tasktop commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential ROI enterprises may benefit from by deploying the Tasktop Viz value stream management solution. What the study found was significant, with Tasktop Viz users experiencing up to 496% ROI over three years.
In this on-demand webinar, Tasktop CPO, Nicole Bryan, and guest speaker, Forrester Senior Consultant, Sam Conway, discuss the findings of the TEI study and what implementing Tasktop Viz could mean for your business.
Forrester interviewed a Citrix customer currently using Citrix XenApp to determine the cost savings and business benefits of XenApp. In the process, they discovered that the company reduced desktop support costs by $1.7 million, by delivering key business applications via XenApp. Read this white paper to examine the use cases and the cost savings and benefits achieved.
Integrated Technology Solutions for Drug SafetyCovance
Technology has forever transformed the entire healthcare continuum and has ushered in new and revolutionary ways to ensure patient and consumer safety. It has also enabled organizations to achieve higher levels of insight, quality and efficiencies by driving down operational costs and rendering information in meaningful ways. Technology has weaved itself into safety operations by being a strategic element of worldwide pharmacovigilance (PV) systems, fundamentally altering the drug safety continuum. To enable transformation, one of the biggest challenges organizations face is how to effectively integrate the complexities of two seemingly separate functions, the technology know-how behind IT and the science behind Safety Operations. Companies that recognize the synergies of an integrated strategy and unified communication process will see greater success in managing the safety of their products, including proactive responses to problems and business priorities.
Set-up a Centralized Data Warehouse System for leading Insurance Company with...ITC Infotech
Here's how ITC Infotech helped a customer by developing centralized data warehouse system that generated analytical reports for key business users in order to improve accuracy and effectiveness of price. Learn more
Rate of Return for Stocks and BondsFIN571Running he.docxmakdul
Rate of Return for Stocks and Bonds
FIN/571
Running head: RATE OF RETURN FOR STOCKS AND BONDS
1
RATE OF RETURN FOR STOCKS AND BONDS
2
Rate of Return for Stocks and Bonds
This paper will discuss how capital asset pricing model (CAPM), weighted average capital cost (WACC) and flotation costs influence the financial decision making with the capital budgeting process. Through these calculations, a company can better understand how the impact of debt and equity has on their capital structure. These concepts will also allow financial managers within an organization to make sound investment decisions when determining whether or not to invest in a particular project during the capital budgeting process. As a part of this assignment, calculations of the problems involving stock valuation, total return, CAPM, WACC, and flotation costs listed in a separate document under "Calculations – Rate of Returns for Stocks and Bonds."
Capital Asset Pricing Model (CAPM)
CAPM typically measures the association between the risk and expected return of a stock portfolio. In this paper, we will discuss how CAPM is used to estimate the cost of equity capital and the expected rate of return. There is a particular type of symmetry when we are looking at the cost of capital to a company compared to the expected return on a stock. Companies may use this measure in determining how much equity they will use to fund a capital budget project. In the calculation assignment, we calculate the expected rate of return through CAPM. The expected rate of return equals the risk-free rate plus the beta times the difference of the expected market rate and the risk-free rate. We can also use the formula to estimate the cost of equity. The cost of equity can then be used to the beta risk of the project and what the discount rate on the cash flow of the project show be.
Weighted Average Capital Cost (WACC)
"The weighted average cost of capital (WACC) is the rate of return that the providers of a company's capital require, weighted according to the proportion each element bears to the total pool of capital." (Qatar Financial Center, 2014) It provides a measure similar to the CAPM, which the correct discount rate on cash flow and it also provides the rate of interest of capital. Many financial managers used this measure to make investment decisions while finding the correct capital structure for their company. In the WACC portion of the calculation assignment, we were asked to find the WACC which is the weight of equity within the capital structure multiply by the cost of equity times the inverse of the tax rate plus the weight of debt within the capital structure multiply by the cost of debt. By determining WACC, financial managers can analyze the value the project. The expected rate of return of WACC can be used to determine the risk and the capital structure of the company’s existing assets. This expected rate of return can then be used to calculate NPV to either ...
Indian CST's GPMS Products Portfolio 2015Raja Seevan
This document provides an overview of products and services offered by Indian CST, including their Global Project Management System (GPMS). GPMS is a cloud-based project management tool that aims to increase efficiency, transparency, and accountability in government projects. It uses best practices and crowd-sourcing to analyze information and transform it into actionable intelligence. Key features include metrics tracking to monitor goals over time, gap analysis between current and desired states, and strategies to address challenges commonly seen in construction projects. The system aims to improve documentation, reduce risks, support decision making, and ensure quality.
The document provides a summary of 15 projects that Jeff Davis has managed or contributed to over his career. These include developing applications like a case tracking system for a captive insurance company and a custom service request system. He has also led infrastructure projects such as deploying a new LAN across 45 offices and upgrading 1200 desktop computers. Other responsibilities discussed are managing development teams, implementing new systems, and establishing project management processes.
Microsoft India - Total Economic Impact of Microsoft SQL Server 2008 Upgrade ...Microsoft Private Cloud
Conducting in-depth interviews with an existing SQL customer that upgraded to SQL Server 2008, Forrester found that the organization achieved benefits, some easily measured for this ROI study and others, equally as valuable, that could not be quantified. Specifically, the benefits fall into the following categories: 1) avoided adding SQL Server 2008 servers – license and hardware savings; 2) avoided adding storage; 3) eliminated third-party software; 4) avoided hiring additional IT employees; 5) increased user productivity – business and IT; 6) improved database performance
and provided enhanced features; 7) improved data security; and 8) improved working experience for the database administration team. Only the first five benefits were quantified as part of the ROI
analysis. To fully understand the potential effect on their organizations, readers should consider all benefits, whether or not they could be quantified for this study.
The document discusses how Accenture is helping drive digital transformation in the energy industry through the Open Group OSDU data platform. It summarizes that:
1) By standardizing a common data platform across the industry through OSDU, it will reduce costs, remove data silos, and enable innovation.
2) Accenture provides end-to-end services to help companies maximize their investment in OSDU, from data strategy to application development to sustaining performance.
3) Accenture tailors its capabilities to help companies discover challenges, envision solutions, co-create fit-for-purpose approaches, scale implementations, and sustain value from digital transformation.
Similar to The Total Economic Impact of Equinix Interconnection Solutions (20)
GDS Summit Keynote - manufacturing at software speed draftEquinix
Enterprises are still dealing with the long-lasting impacts of the
pandemic. While remote working, resilient digital supply chain, and
optimized omnichannel business have accelerated over the past
year, companies that have adopted a Digital-First strategy and
pivoted to speeding up their business transformation are thriving
and are no longer suffocated by these pandemic transformation
requirements. On the other hand, those who are still locked in an
old-fashioned architecture continue to struggle to meet these
requirements and ultimately risk their long-term business success.
By examining examples of Digital First initiatives and use cases, one
will discover how these manufacturing business leaders are
enhancing their competitiveness in the industry.
To be
Challenges with Data Center Synchronization and Options for Precise Synchroni...Equinix
Presentation by Ramki Ramakrishnan, Principal - Product, Research and Incubation Group at Equinix at ITSF 2020 (#ITSF2020) on the challenges with Data Center Synchronization and options for precise synchronization. Learn more by checking out our blog post on The Future of Precision Time as a Service - https://blog.equinix.com/
Equinix Women Leaders Network (EWLN) Asia-PacificEquinix
“It’s a world of freedom, safety and
authenticity, where every individual –
regardless of gender identity – is able to
pursue a life that is true to their talent, values
and goals. Labels and barriers will begin to
dissolve as we respectfully empower and
honor every single individual as unique,
valued and worthy.”
International Women's Day 2020 | Women at EquinixEquinix
This document contains quotes from women leaders at Equinix discussing gender equality and Equinix's efforts to advance women leaders. The women define a gender equal world as one with equal opportunities regardless of gender. They describe how the Equinix Women Leaders Network (EWLN) has helped them develop confidence and leadership skills. Advancing women leaders is seen as important for business success and inclusion. Equinix promotes gender parity through initiatives like EWLN, leadership training, and diversity programs led by the CEO.
Getting “Edge-y” with the Internet of ThingsEquinix
Integrated IoT capabilities accelerate product and service development and time to market, while optimizing asset data delivery and workflow processes. The intelligence gathered from distributed IoT devices and analyzed in real time enables greater operational efficiency and customer satisfaction.
Digital transformation requires addressing three key factors: speed, volume, and gravity. An Interconnection Oriented Architecture (IOA) strategy involves building distributed hybrid/multicloud deployments within proximity to users, data, and clouds. This is done in four steps: 1) placing local network hubs, 2) connecting clouds over private interconnection, 3) deploying security controls, and 4) integrating data for cloud adjacency and residency. This IOA strategy solves for latency, volume, agility, compliance, and data exchange needs of the digital enterprise.
5 IT Predictions for Digital Business in 2019Equinix
Read our blog on the 5 IT Predictions for Digital Business in 2019: https://eqix.it/ITPredictions2019
While digital transformation has the potential to dramatically accelerate long-term business performance, the truth is that we are deep into the digital awkward years. Though the promise of digital is full of new possibilities, most companies are currently experiencing the growing pains of hybrid IT complexity.
Today’s businesses see digital technologies that need to be seamlessly integrated with legacy IT infrastructures to optimize business processes, agility and scale. They anticipate an increasing number of connected-devices at the edge generating mountains of data that will expand their organization’s threat landscape, while data security and compliance requirements continue to increase.
We are working with our customers around the globe to build the data center of the future, blazing the trail for next-generation interconnection and innovation, including emerging security, data and application infrastructure services. And as business and technology leaders move closer to another year of high stakes digital transformations and the big IT decisions that power them, we’re taking a closer look at the technologies that will make the biggest digital business impact in 2019.
Equinix Cloud Exchange Fabric™ - Flexible, on-demand global interconnectionEquinix
Learn about the trends shaping the digital future and how IT can prepare for these demands, why Interconnection and ECX Fabric can help address IT needs on a global scale, what the most common use cases for ECX Fabric are, and how customers leverage ECX Fabric and an interconnection strategy for success.
https://www.equinix.com/resources/webinars/ecx-fabric-webinar/
- Trends shaping the digital future and how IT can prepare for these demands
- Why Interconnection and ECX Fabric can help address IT needs on a global scale
- The most common use cases for ECX Fabric
- How customers leverage ECX Fabric and an interconnection strategy for success
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The Total Economic Impact of Equinix Interconnection Solutions
1. A Forrester Total Economic
Impact™ Study
Commissioned By
Equinix
Project Director:
Sarah Musto
August 2015
The Total Economic
Impact™ Of Equinix
Interconnection Solutions
Cost Savings And Business Benefits
Enabled By Interconnection
3. 3
Executive Summary
Equinix commissioned Forrester Consulting to conduct a Total
Economic Impact™ (TEI) study and examine the potential
return on investment (ROI) enterprises may realize by
interconnecting in Equinix facilities. The purpose of this study
is to provide readers with a framework to evaluate the
potential financial impact of Equinix on their organizations.
To better understand the benefits, costs, and risks associated
with an Equinix implementation, Forrester interviewed several
customers with multiple years of experience using Equinix to
interconnect. Equinix offers carrier-neutral data centers and
Internet exchanges for companies worldwide and provides interconnection solutions, such as Equinix Performance Hub, to
colocate corporate IT resources in Equinix data centers close to network service providers. Equinix also offers Equinix Cloud
Exchange, which provides direct and secure, software-enabled access to cloud service providers.
Prior to using Equinix, each customer’s global user base struggled with application performance issues. Traditional system-
centric models of connectivity and reliance on public Internet could not address performance concerns in a cost-effective way
and stifled application innovation. In order to resolve these issues and pursue their cloud strategy, which would require even
greater responsiveness, the organizations needed to switch to a more user-centric model. This meant bringing data and
applications closer to the users; focusing on the interconnection between networks, applications, and users; and ultimately
pushing services and applications to the edge of the network. With Equinix Performance Hub and Equinix Cloud Exchange,
the organizations have access to reliable, scalable, and secure connectivity, boosting performance and end user satisfaction.
They also have access to direct and fast connections to cloud services, enabling their cloud strategies. The Vice President of
Platform and Architecture at one organization noted, “We did our due diligence to confirm that Equinix is where we need to
be for location, connectivity to partners, connectivity to our existing cloud strategy, and setting the right foundation for
international growth.”
EQUINIX IMPROVES APPLICATION PERFORMANCE, ENABLES INNOVATION, AND GENERATES COST SAVINGS
Our interviews and financial analysis found that a composite organization based on four interviewees experienced the risk-
adjusted ROI and benefits shown in Figure 1. See Appendix A for a description of the composite organization.
The composite organization analysis points to benefits of $23,038,257 over three years versus costs of $5,761,393, adding
up to a net present value (NPV) of $17,276,864.
FIGURE 1
Financial Summary Showing Three-Year Risk-Adjusted Results
ROI:
300%
NPV:
$17,276,864
Payback:
4.2 months
Average latency
reduction:
42%
Source: Forrester Research, Inc.
"The primary value proposition that we're getting
with Equinix is all around the ability to
interconnect. We definitely need to be able to
touch and reach those various cloud providers in
the ecosystem and still get the same level of
security visibility we have internally."
~Chief technology officer for cloud
4. 4
› Benefits. The composite organization experienced the following risk-adjusted benefits that represent those experienced by
the interviewed companies:
• Incremental revenue enabled by Equinix. High-speed connectivity and secure connections to providers near large
user bases generates millions in incremental revenue through enablement of new product opportunities.
• Time savings for developers and end users. Developers are able to save 10% of their overall time, and end users
are able to save 30 minutes per week, due to network and application improvements as well as fast provisioning
from providers.
• Cost savings each year related to application migration to public cloud. Running applications in the lower-cost
cloud providers with Equinix generates cost savings compared with running them internally.
• Data center cost savings and cost avoidance. The organization is able to reduce data center space requirements
and avoid future data center investments by pursuing its cloud strategy with Equinix.
• A 40% reduction in bandwidth costs. The organization is able to save $1.5 million per year due to more
competitive pricing and the network service provider choice available with Equinix.
• Fifteen percent fewer network incidents and outages, leading to reduced labor costs. The organization is able
to reduce the amount of time spent on troubleshooting connectivity issues.
› Costs. The composite organization experienced the following risk-adjusted costs:
• Equinix costs of $715,000 per year. These fees include space, power, cross connects, and exchange ports for the
Performance Hub and Cloud Exchange solutions.
• Capital investment of $1.65 million upfront and $330,000 ongoing. The infrastructure investment associated
with the Equinix implementation includes network and security deployments in multiple Equinix facilities.
• Costs associated with implementation and ongoing management. Internal full-time equivalent (FTE) time and
professional services support cost $1.15 million upfront for the implementation and $145,820 each year for ongoing
management.
Disclosures
The reader should be aware of the following:
› The study is commissioned by Equinix and delivered by Forrester Consulting. It is not meant to be used as a competitive
analysis.
› Forrester makes no assumptions as to the potential ROI that other organizations will receive. Forrester strongly advises
that readers use their own estimates within the framework provided in the report to determine the appropriateness of an
investment with Equinix.
› Equinix reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study and its
findings and does not accept changes to the study that contradict Forrester’s findings or obscure the meaning of the study.
› Equinix provided the customer names for the interviews but did not participate in the interviews.
5. 5
TEI Framework And Methodology
INTRODUCTION
From the information provided in the interviews, Forrester has constructed a Total Economic Impact (TEI) framework for
those organizations considering implementing Equinix solutions. The objective of the framework is to identify the cost,
benefit, flexibility, and risk factors that affect the investment decision.
APPROACH AND METHODOLOGY
Forrester took a multistep approach to evaluate the impact that Equinix can have on an organization (see Figure 2).
Specifically, we:
› Interviewed Equinix product personnel, along with Forrester analysts, to gather data relative to Equinix and the
marketplace for interconnection solutions.
› Interviewed four organizations currently using Equinix to obtain data with respect to costs, benefits, and risks.
› Designed a composite organization based on characteristics of the interviewed organizations (see Appendix A).
› Constructed a financial model representative of the interviews using the TEI methodology. The financial model is
populated with the cost and benefit data obtained from the interviews as applied to the composite organization.
› Risk-adjusted the financial model based on issues and concerns the interviewed organizations highlighted in interviews.
Risk adjustment is a key part of the TEI methodology. While interviewed organizations provided cost and benefit
estimates, some categories included a broad range of responses or had a number of outside forces that might have
affected the results. For that reason, some cost and benefit totals have been risk-adjusted and are detailed in each
relevant section.
Forrester employed four fundamental elements of TEI in modeling Equinix interconnection solutions: benefits, costs,
flexibility, and risks.
Given the increasing sophistication that enterprises have regarding ROI analyses related to IT investments, Forrester’s TEI
methodology serves to provide a complete picture of the total economic impact of purchase decisions. Please see Appendix
B for additional information on the TEI methodology.
FIGURE 2
TEI Approach
Source: Forrester Research, Inc.
Perform
due diligence
Conduct
customer
interviews
Design
composite
organization
Construct
financial
model using
TEI framework
Write
case study
6. 6
Analysis
COMPOSITE ORGANIZATION
For this study, Forrester conducted a total of four interviews with representatives from the following Equinix customers:
› A Fortune 500 financial services firm with a nationwide network of employees, customers, and partners. The organization
has been using Equinix hubs for 1.5 years to integrate its public and private cloud services.
› A multinational global conglomerate that has been using colocation facilities for two years and is integrating with Cloud
Exchange to support its cloud strategy.
› A construction and engineering firm with a global network of employees, customers, and partners. The organization has
been using Performance Hub and Cloud Exchange for less than one year.
› A global company with significant business-to-business (B2B), API, web, and mobile traffic. The organization uses Equinix
to run its own private network as well as for peering relationships with cloud providers via cloud connect.
Based on the interviews, Forrester constructed a TEI framework,
a composite company, and an associated ROI analysis that
illustrates the areas financially affected. The composite
organization that Forrester synthesized from these results
represents an organization with the following characteristics:
› A global organization with B2B and business-to-consumer
(B2C) digital product lines.
› Recent fiscal year revenue of $5.1 billion.
› 5,300 employees.
› A cloud strategy that involves migrating applications to the
public cloud and enabling innovative applications that leverage
big data analytics.
INTERVIEW HIGHLIGHTS
The four customer interviews provided common challenges and
objectives, highlights, and investment results that formed the
foundation for the composite organization’s story.
Situation
Prior to investing in Equinix, the interviewed organizations
struggled with a number of connectivity-related challenges that included complex network architectures and carrier
inflexibility, slow and expensive provisioning of capacity, latency disrupting application performance, and cloud connectivity
options that were expensive and lacked security. Key business objectives and drivers for the Equinix investment were:
› The organizations wanted to streamline their network architectures, with a focus on cost, reliability, and time-to-market.
The end goal was to move workloads closer to users to deliver those workloads quickly and consistently.
“We simply couldn’t provide
the level of performance
necessary globally in a hub-
and-spoke model along with
being able to get the same
security view of the world we
had, and so we started to look
at Equinix as a solution
provider that can help us solve
that problem.”
~ CTO for cloud
7. 7
› The organizations wanted to pursue a cloud strategy focused on application migration and innovation. Traditional
connection models did not meet security or performance requirements, so the organizations needed a more secure way to
enable high-speed connectivity to cloud providers.
› Several of the interviewees sought to differentiate and pursue business growth through delivering new services that
leverage big data analytics. The magnitude of these datasets led to performance problems. In order to support this and
future business agility, the organizations needed improved time-to-market and quicker provisioning, along with high-speed
connectivity that could improve performance.
Solution
The interviewed organizations noted the following key factors in their selection of Equinix:
› Flexibility provided through expansive choice of network, cloud,
and IT service providers.
› Ability to increase bandwidth while lowering cost.
› Ability to direct connect to cloud providers versus over the public
Internet, to achieve the speed needed for applications while
retaining security.
› Ability to provision additional capacity or services much faster
than traditional models.
› The potential for cross-connect opportunities with key customers
and partners.
Implementation times ranged from six months to one year and
involved:
› Multiple data center deployments to place IT infrastructure near
customers, partners, and employees in key regions, with an
emphasis on security infrastructure deployment.
› Connecting a majority of office locations to Equinix hubs to
provide faster and more reliable connectivity.
› Direct connections to key cloud providers early, with additional
connections to follow.
Results
The interviews revealed that:
› The key to achieving high performance and consistent user experience is to create a network architecture
focused on users. The interviewees were dissatisfied with the cost-effectiveness and reliability of their previous
connectivity, and a complex topology created an inconsistent user experience and difficulty in manageability. By using
Equinix performance hubs, the organizations could create a streamlined, flexibile architecture with global coverage through
access to the provider ecosystem and deploying performance hubs closer to users. This improved performance and user
experience was easier to manage and resulted in cost savings.
“With Equinix and their
facilities, many of the service
providers and partners that
my company needs to do
business with are already
there. So by investing to build
and connect my enterprise
into an Equinix facility, I
immediately unlock the
opportunity for my business to
directly connect to a number
of services.”
~ VP of Data Center, Network, Storage Services
8. 8
› A key enabler of the organizations’ cloud strategies was
upgrading their networks to effectively deliver cloud
services. Creating a simplified and flexible network architecture
through Equinix allowed the organizations to more easily enable
the benefits mentioned above compared with their prior use of
public Internet. It also allowed the organizations to more easily
and cost-effectively pursue their focus on cloud delivery. Cloud
applications in particular require proximity between users and
providers, reliable delivery, and consistent high performance,
often while working with large volumes of data. By being able to
locally peer with cloud providers through secure, direct
interconnections and get out at the edge capabilities to access
cloud services, the organizations are able to provision cloud
services quickly and provide an improved end user experience.
The VP of Data Center, Network, and Storage Services at one
organization noted: "There’s a lot of security benefit to me
directly peering with cloud providers in an Equinix facility versus
me building that peering over the public Internet. So I can open
my business to new cloud services, but not have the
dependency on the public Internet. That’s a huge
differentiation."
› The organizations all mentioned the strong present and
expected future business value of their Equinix partnership. Along with the business benefits that the organizations
are able to achieve through the Equinix investment, the interviewees also felt that they will gain additional benefits in the
future from the services Equinix provides, the ecosystem created within Equinix data centers, and the direction that Equinix
is taking. As one vice president of platform and architecture said: "Every time I talk to Equinix, they are very progressive.
They’re thinking smart, thinking future. They are an easy partner, and I wanted to partner with somebody who is going to
be innovating on my behalf that I can leverage from."
“I think the Cloud Exchange
offering is highly valuable
from a speed and market
innovation standpoint. If you
envision the world in that
multicloud standpoint, you get
to a model that allows you to
bring the next kind of startup
online in a very rapid fashion.”
~ CTO for cloud
9. 9
BENEFITS
The composite organization experienced a number of quantified benefits in this case study:
› Incremental revenue.
› Developer and end user time savings.
› Cloud deployment cost savings.
› Data center cost savings and cost avoidance.
› Bandwidth cost savings.
› Cost savings from improved network reliability.
Other important benefits mentioned by the composite organization were improved end user experience and ability to engage
the global workforce due to better application performance. Additionally, the organization felt that security was dramatically
improved due to the ability to direct connect versus connect via the public Internet.
Incremental Revenue
A key benefit for the composite organization is the ability to leverage big data analytics to drive new revenue
streams, among other potential product innovations. In order to enable this incremental revenue, the organization
needs to be able to make high-speed, secure connections to end users, customers, and cloud providers.
Traditional network and cloud connectivity models could not provide the security view and performance
necessary to access against these large datasets. With Equinix, the organization can implement its security stack
and additional infrastructure in Equinix facilities near large user bases and direct connect to cloud providers,
providing real-time analytics capabilities at the edge where data is created. Additionally, the improved reliability
and consistency of performance with Equinix frees up time that would otherwise be spent on troubleshooting and
can now be used to focus on these and other revenue-generating product enhancements. These new revenue
streams make up 0.15% of total revenue, or over $2.4 million in gross revenue, by Year 3. As the senior VP and
CIO at one organization said, “We can make more creative designs, more innovative designs . . the outcome will
directly impact our ability to improve profitability.”
Interviewed organizations provided a broad range for the magnitude of revenue enhancements, since there are a
variety of outside forces that might also have an impact on this, and revenue generation can be difficult to
estimate and attribute to specific solutions. To compensate, this benefit was risk-adjusted and reduced by 25%.
The risk-adjusted total benefit resulting from incremental revenue over the three years was $3,581,749. See the
section on Risks for more detail.
10. 10
TABLE 1
Incremental Revenue
Ref. Metric Calculation Year 1 Year 2 Year 3
A1 Annual revenue $5,100,000,000 $5,253,000,000 $5,410,590,000
A2
Revenue resulting from
Equinix investment
0.05% 0.10% 0.15%
A3 Gross margin 30% 30% 30%
At Incremental gross revenue A1*A2*A3 $765,000 $1,575,900 $2,434,766
Risk adjustment 25%
Atr
Incremental gross
revenue (risk-adjusted)
$573,750 $1,181,925 $1,826,074
Source: Forrester Research, Inc.
Developer And End User Time Savings
Developers at the composite organization achieve time savings due to improved simplicity through having a
reliable and consistent platform to roll out and run applications. With the Equinix implementation, developers now
spend very little time worrying about environments. Additionally, network and cloud providers can provision in
days versus months, and there is less work needed to do the physical connectivity necessary for new
deployments. These improvements help to speed project time and accelerate innovation. Forrester
conservatively estimates that the 500 developers at the composite organization have a 5% overall time savings
in the first year and up to 10% time savings in years 2 and 3.
End users at the organization also save time. Placing infrastructure closer to users and connecting to more
efficient networks reduces latency and improves the performance of frequently used applications. Additionally,
network disruptions and outages are significantly reduced and have very little impact on the end user. The
combined effect of these improvements allows 3,000 end users to save 15 minutes per week in Year 1 and 30
minutes per week in years 2 and 3. Forrester assumes that 50% of the developer and end user time savings are
repurposed for further productive use.
Interviewed organizations provided a range of time savings improvements, since there are a variety of outside
forces that might affect this benefit, which can be difficult to measure. To compensate, this benefit was risk-
adjusted and reduced by 15%. The risk-adjusted total benefit resulting from developer and end user time savings
over the three years was $7,881,625. See the section on Risks for more detail.
11. 11
TABLE 2
Developer And End User Time Savings
Ref. Metric Calculation Year 1 Year 2 Year 3
B1 Developers 500 500 500
B2 Average developer time savings 5% 10% 10%
B3
Average annual fully loaded
developer compensation
$100,000 $100,000 $100,000
B4 End users affected 3,000 3,000 3,000
B5
Average end user time savings
(hours)
30 minutes/week 13 26 26
B6
Average fully loaded end user
compensation per hour
$65,000/2,080 $31 $31 $31
B7 Productivity capture 50% 50% 50%
Bt
Developer and end user time
savings
((B1*B2*B3)+(B4*B5*B6))*B7 $1,854,500 $3,709,000 $3,709,000
Risk adjustment 15%
Btr
Developer and end user time
savings (risk-adjusted)
$1,576,325 $3,152,650 $3,152,650
Source: Forrester Research, Inc.
Cloud Deployment Cost Savings
Using Equinix Cloud Exchange, the organization can make fast interconnections to cloud services and manage
its usage much more easily, while retaining the right security levels. As the organization migrates applications, it
achieves cost savings by running the applications in the lower-cost cloud providers versus running them
internally, which results in charges being sent to various business segments. By using a single port and API to
automate connections to multiple clouds with Equinix, instead of using the traditional model of a physical cable
per port per partner, the organization saves costs and reduces the time required to provision resources and
manage the one-to-many connection. With traditional connectivity models, it is very difficult to deliver multicloud
services to users efficiently and economically. As the CTO for cloud at one organization noted, “We would have a
degradation in performance had we not placed our cloud strategy in Equinix facilities.” While the composite
organization begins application migration slowly in Year 1, by the end of Year 3 it achieves a cumulative
$770,000 cost savings from application migration.
There are a variety of outside forces that might affect the magnitude of these savings and speed to realize them.
To compensate, this benefit was risk-adjusted and reduced by 15%. The risk-adjusted total benefit resulting from
cloud deployment cost savings over the three years was $1,079,925. See the section on Risks for more detail.
12. 12
TABLE 3
Cloud Deployment Cost Savings
Ref. Metric Calculation Year 1 Year 2 Year 3
C1
Cost savings for application migration
to cloud
$115,500 $385,000 $770,000
Ct Cloud deployment cost savings C1 $115,500 $385,000 $770,000
Risk adjustment 15%
Ctr
Cloud deployment cost savings
(risk-adjusted)
$98,175 $327,250 $654,500
Source: Forrester Research, Inc.
Data Center Cost Savings And Cost Avoidance
The composite organization can leverage the scalable solution that Equinix provides to connect to multiple clouds
quickly and cost-effectively. This supports the organization’s cloud strategy, including the migration of its B2B
and B2C applications to the public cloud, thereby removing those applications from its own data centers. As a
result, the organization reduces its facilities spending and data center space requirements. While these savings
are lower in Year 1 as application migration ramps up, the organization is able to achieve a cumulative $1.75
million cost savings by Year 3.
In order to achieve equivalent levels of performance and functionality by pursuing a cloud strategy on its own, the
organization would need to build out its own data center facilities in various locations. By using Equinix Cloud
Exchange and performance hubs, the organization can pursue its cloud focus while avoiding this future
investment. The organization estimates it can avoid an additional $4.5 million in data center investments in Year
1, and avoid maintenance and power costs associated with that investment in subsequent years.
Data center and infrastructure costs can vary substantially from organization to organization since there are a
variety of outside forces that might have an impact on these costs. To compensate, this benefit was risk-adjusted
and reduced by 15%. The risk-adjusted total benefit resulting from data center savings over the three years was
$6,757,500. See the section on Risks for more detail.
13. 13
TABLE 4
Data Center Cost Savings And Cost Avoidance
Ref. Metric Calculation Year 1 Year 2 Year 3
D1 Data center cost savings $250,000 $1,000,000 $1,750,000
D2
Data center cost avoidance due to
cloud hub deployment
$4,500,000 $225,000 $225,000
Dt
Data center cost savings and cost
avoidance
D1+D2 $4,750,000 $1,225,000 $1,975,000
Risk adjustment 15%
Dtr
Data center cost savings and cost
avoidance (risk-adjusted)
$4,037,500 $1,041,250 $1,678,750
Source: Forrester Research, Inc.
Bandwidth Cost Savings
Prior to using Equinix, the composite organization was using a number of partners for connectivity, and in some
locations the organization only had access to one carrier. Long-term, inflexible contracts locked the organization
into inefficient and costly routes. With Equinix, network service provider choice leads to more cost-effective and
flexible pricing and improved throughput capacity at better price points. The composite organization reduced its
bandwidth spend by an average of 40%, saving $1.5 million each year.
Interviewed organizations differed in the level of cost savings they were able to negotiate. To compensate, this
benefit was risk-adjusted and reduced by 5%. The risk-adjusted total benefit resulting from bandwidth cost
savings over the three years was $4,275,000. See the section on Risks for more detail.
TABLE 5
Bandwidth Cost Savings
Ref. Metric Calculation Year 1 Year 2 Year 3
E1 Prior bandwidth spend $3,750,000 $3,750,000 $3,750,000
E2 Average percent reduction in spend 40% 40% 40%
Et Bandwidth cost savings E1*E2 $1,500,000 $1,500,000 $1,500,000
Risk adjustment 5%
Etr
Bandwidth cost savings (risk-
adjusted)
$1,425,000 $1,425,000 $1,425,000
Source: Forrester Research, Inc.
14. 14
Cost Savings From Improved Network Reliability
In the organization’s prior environment, maintaining service levels and performance between locations was
difficult and unpredictable. The organization was also exposed to risk in locations where carrier options were
limited. By avoiding public Internet with cross connects and gaining access to broad network service provider
choices, the organization is able to save time that was previously devoted to troubleshooting connectivity issues.
The organization is able to save about $1.5 million in troubleshooting time and noted that it is able to prevent
revenue loss with improved reliability, though this is not quantified.
Interviewed organizations provided a range of time savings, since there are a variety of outside forces that might
also affect this. To compensate, this benefit was risk-adjusted and reduced by 5%. The risk-adjusted total benefit
resulting from improved network reliability over the three years was $4,210,625. See the section on Risks for
more detail.
TABLE 6
Cost Savings From Improved Network Reliability
Ref. Metric Calculation Year 1 Year 2 Year 3
F1
Time savings for network
administration (FTEs)
0.25 0.25 0.25
F2 FTEs on operations team 50 50 50
F3 Average operations team time savings 60% 60% 60%
F4
Average annual fully loaded
compensation
$100,000 $100,000 $100,000
F5 Productivity capture 50% 50% 50%
Ft
Cost savings from improved network
reliability
((F1*F4)+(F2*F3*F4)*F5 $1,512,500 $1,512,500 $1,512,500
Risk adjustment 5%
Ftr
Cost savings from improved
network reliability (risk-adjusted)
$1,436,875 $1,436,875 $1,436,875
Source: Forrester Research, Inc.
Total Benefits
Table 7 shows the total of all benefits across the six areas listed above, as well as present values (PVs) discounted at 10%.
Over three years, the composite organization expects risk-adjusted total benefits to be a PV of more than $23 million.
15. 15
TABLE 7
Total Benefits (Risk-Adjusted)
Ref. Benefit Category Year 1 Year 2 Year 3 Total
Present
Value
Atr Incremental revenue $573,750 $1,181,925 $1,826,074 $3,581,749 $2,870,345
Btr Developer and end user time savings $1,576,325 $3,152,650 $3,152,650 $7,881,625 $6,407,151
Ctr Cloud deployment cost savings $98,175 $327,250 $654,500 $1,079,925 $851,440
Dtr
Data center cost savings and cost
avoidance
$4,037,500 $1,041,250 $1,678,750 $6,757,500 $5,792,261
Etr Bandwidth cost savings $1,425,000 $1,425,000 $1,425,000 $4,275,000 $3,543,764
Ftr
Cost savings from improved network
reliability
$1,436,875 $1,436,875 $1,436,875 $4,310,625 $3,573,295
Total benefits (risk-adjusted) $9,147,625 $8,564,950 $10,173,849 $27,886,424 $23,038,257
Source: Forrester Research, Inc.
16. 16
COSTS
The composite organization experienced the following costs associated with the Equinix investment:
› Equinix costs.
› Additional infrastructure investment.
› Implementation and ongoing management.
These represent the mix of internal and external costs experienced by the composite organization for initial planning,
implementation, and ongoing maintenance associated with investment.
Equinix Costs
The fees charged by Equinix for the Performance Hub and Cloud Exchange include space, power, cross
connects, and the Cloud Exchange port to connect to multiple cloud providers. These fees can vary based on a
number of features related to an organization’s deployment. For the composite organization, we have estimated
that the fees sum up to $715,000 per year, yielding a three-year risk-adjusted cost of $2,145,000.
Additional Infrastructure Investment
The composite organization invested in additional infrastructure as part of the Equinix implementation, including
multiple deployments of its security stack and network stack in Equinix facilities. The organization also replaced
aging infrastructure with newer-generation hardware. We estimate the upfront investment to total $1.65 million,
with $330,000 in maintenance costs and incremental investments in each of the following years. The three-year
risk-adjusted total for additional infrastructure was $2.64 million.
Implementation And Ongoing Management
As part of the implementation effort, a number of internal FTEs worked part or full time over the course of several
months on planning and design. Following this period, these FTEs spent a little over six months on the
implementation and deployment of the performance hubs and Cloud Exchange access, and they spent minimal
time on training. On an ongoing basis, internal FTEs work on enhancements to the platform and application
migration. In addition, one FTE spends a few hours each month on the Equinix partnership and future direction.
The composite organization also used some professional services support upfront to help with design and new
hardware and minimal support on an ongoing basis. The three-year risk-adjusted cost for implementation and
ongoing management was just over $1,587,000.
Total Costs
Table 8 shows the total of all costs as well as associated present values, discounted at 10%. Over three years, the
composite organization expects risk-adjusted total costs to be a PV of a little more than $5.7 million.
17. 17
TABLE 8
Total Costs (Risk-Adjusted)
Ref. Cost Category Initial Year 1 Year 2 Year 3 Total
Present
Value
Gtr Equinix costs $0 $715,000 $715,000 $715,000 $2,145,000 $1,778,099
Htr
Additional
infrastructure
investment
$1,650,000 $330,000 $330,000 $330,000 $2,640,000 $2,470,661
Itr
Implementation and
ongoing
management
$1,150,000 $145,820 $145,820 $145,820 $1,587,460 $1,512,633
Total costs (risk-
adjusted)
$2,800,000 $1,190,820 $1,190,820 $1,190,820 $6,372,460 $5,761,393
Source: Forrester Research, Inc.
FLEXIBILITY
Flexibility, as defined by TEI, represents an investment in additional capacity or capability that could be turned into business
benefit for some future additional investment. This provides an organization with the “right” or the ability to engage in future
initiatives but not the obligation to do so. There are multiple scenarios in which a customer might choose to implement
Interconnection Solutions and later realize additional uses and business opportunities. Flexibility would also be quantified
when evaluated as part of a specific project (described in more detail in Appendix B).
While Forrester could not quantify flexibility options for this study, organizations noted that using Equinix Interconnection
Solutions for their own benefit was a first step. The interviewees believe that the Equinix investment will enable partners and
customers, colocated within the same facilities as their organizations, to proactively connect to them as they innovate their
B2B product lines.
RISKS
Forrester defines two types of risk associated with this analysis: “implementation risk” and “impact risk.” Implementation risk
is the risk that a proposed investment in Equinix may deviate from the original or expected requirements, resulting in higher
costs than anticipated. Impact risk refers to the risk that the business or technology needs of the organization may not be
met by the investment in interconnection, resulting in lower overall total benefits. The greater the uncertainty, the wider the
potential range of outcomes for cost and benefit estimates.
18. 18
TABLE 9
Benefit And Cost Risk Adjustments
Benefits Adjustment
Incremental revenue 25%
Developer and end user time savings 15%
Cloud deployment cost savings 15%
Data center cost savings 15%
Bandwidth cost savings 5%
Cost savings from improved network reliability 5%
Costs Adjustment
Equinix costs 10%
Additional infrastructure investment 10%
Implementation and ongoing management 15%
Source: Forrester Research, Inc.
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.
The following impact risks that affect benefits are identified as part of the analysis:
› Incremental revenue and time savings impacts will vary from organization to organization and can also be more difficult to
measure and attribute to the Equinix investment.
› Costs related to eliminating data center space and minimizing the hardware footprint, as well as avoidance of future data
center and hardware investments, are highly dependent on location and the needs of the company.
The following implementation risk that affects costs is identified as part of this analysis:
› The cost figures for the composite organization represent an average of the common cost categories indicated by the
interviewees, scaled to fit the size of the composite organization. Costs associated with the Equinix investment will vary
substantially from customer to customer based on the specifics of each deployment.
Table 9 shows the values used to adjust for risk and uncertainty in the cost and benefit estimates for the composite
organization. Readers are urged to apply their own risk ranges based on their own degree of confidence in the cost and
benefit estimates.
19. 19
Financial Summary
The financial results calculated in the Benefits and Costs sections can be used to determine the ROI, NPV, and payback
period for the composite organization’s investment in interconnection at Equinix.
Table 10 below shows the risk-adjusted ROI, NPV, and payback period values. These values are determined by applying the
risk-adjustment values from Table 9 in the Risks section to the unadjusted results in each relevant cost and benefit section.
FIGURE 3
Cash Flow Chart (Risk-Adjusted)
Source: Forrester Research, Inc.
TABLE 10
Cash Flow (Risk-Adjusted)
Initial Year 1 Year 2 Year 3 Total Present Value
Costs ($2,800,000) ($1,190,820) ($1,190,820) ($1,190,820) ($6,372,460) ($5,761,393)
Benefits $0 $9,147,625 $8,564,950 $10,173,849 $27,886,424 $23,038,257
Net benefits ($2,800,000) $7,956,805 $7,374,130 $8,983,029 $21,513,964 $17,276,864
ROI 300%
Payback period (months) 4.2
Source: Forrester Research, Inc.
($5,000,000)
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
Initial Year 1 Year 2 Year 3
Cashflows
Financial Analysis (risk-adjusted)
Total costs Total benefits Cumulative total
20. 20
Interconnection With Equinix: Overview
The following information is provided by Equinix. Forrester has not validated any claims and does not endorse Equinix or its
offerings.
Equinix connects businesses to their customers, employees, and partners inside interconnected data centers. In 33 markets
across five continents, Equinix is where companies come together to realize new opportunities and accelerate their
business, IT, and cloud strategies. Equinix offers the following products and services:
› Equinix Direct Connect. A direct, secure intra-data center connection between a purchaser of cloud services and a cloud
service provider.
› Equinix Performance Hub. This places corporate IT resources in distributed data centers connected to many networks
and clouds and delivers improvements in application performance and IT agility.
› Equinix Cloud Exchange. This enables on-demand, direct connections to multiple cloud providers and networks from a
single port.
› Equinix Internet Exchange. This connects peers at 19 Internet exchange point locations in 17 global metro areas.
› Equinix Cross Connects. These directly link customers in the same data center or metro, for secure, instant, and private
one-to-one connections.
› Equinix Metro Connect. This links data center customers in the same metro to each other and our broader global
footprint.
› Equinix Global Roaming Exchange. This platform allows mobile data providers to exchange GPRS roaming traffic with
other providers through a single connection.
21. 21
Appendix A: Composite Organization Description
For this TEI study, Forrester has created a composite organization to illustrate the quantifiable benefits and costs of
implementing Equinix solutions. The composite company is intended to represent a global organization with 5,300
employees and is based on characteristics of the interviewed customers.
The composite company has multiple B2B and B2C digital product lines and is focusing on migrating applications to the
public cloud and enabling innovative applications that leverage big data analytics.
In partnering with Equinix, the composite company has the following objectives:
› Simplify its network architecture and improve network reliability, performance, and cost-effectiveness.
› Improve application performance and end user satisfaction by placing IT resources near large user populations.
› Enable business and IT agility with scalable capacity and fast connections to providers.
› Enable new revenue streams by leveraging big data with high-speed connections.
For the purpose of the analysis, Forrester assumes that the composite organization is able to migrate a sizeable percentage
of its applications to the public cloud, and that the organization has the opportunity to leverage large datasets within its
product offerings by building out innovative applications that can capture and analyze that data for its clients’ benefit.
Forrester also assumes that application migration and innovation begin slowly in the first year and pick up speed by Year 2.
This will affect the speed at which some cost savings benefits are realized.
FRAMEWORK ASSUMPTIONS
Table 11 provides the model assumptions that Forrester used in this analysis.
The discount rate used in the PV and NPV calculations is 10%, and the time horizon used for the financial modeling is three
years. Organizations typically use discount rates between 8% and 16% based on their current environment. Readers are
urged to consult with their respective company’s finance department to determine the most appropriate discount rate to use
within their own organizations.
TABLE 11
Model Assumptions
Ref. Metric Calculation Value
X1 Hours per week 40
X2 Weeks per year 52
X3 Hours per year (M-F, 9-5) 2,080
X4 Hours per year (24x7) 8,736
Source: Forrester Research, Inc.
22. 22
Appendix B: Total Economic Impact™ Overview
Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-
making processes and assists vendors in communicating the value proposition of their products and services to clients. The
TEI methodology helps companies demonstrate, justify, and realize the tangible value of IT initiatives to both senior
management and other key business stakeholders. TEI assists technology vendors in winning, serving, and retaining
customers.
The TEI methodology consists of four components to evaluate investment value: benefits, costs, flexibility, and risks.
BENEFITS
Benefits represent the value delivered to the user organization — IT and/or business units — by the proposed product or
project. Often, product or project justification exercises focus just on IT cost and cost reduction, leaving little room to analyze
the effect of the technology on the entire organization. The TEI methodology and the resulting financial model place equal
weight on the measure of benefits and the measure of costs, allowing for a full examination of the effect of the technology on
the entire organization. Calculation of benefit estimates involves a clear dialogue with the user organization to understand
the specific value that is created. In addition, Forrester also requires that there be a clear line of accountability established
between the measurement and justification of benefit estimates after the project has been completed. This ensures that
benefit estimates tie back directly to the bottom line.
COSTS
Costs represent the investment necessary to capture the value, or benefits, of the proposed project. IT or the business units
may incur costs in the form of fully burdened labor, subcontractors, or materials. Costs consider all the investments and
expenses necessary to deliver the proposed value. In addition, the cost category within TEI captures any incremental costs
over the existing environment for ongoing costs associated with the solution. All costs must be tied to the benefits that are
created.
FLEXIBILITY
Within the TEI methodology, direct benefits represent one part of the investment value. While direct benefits can typically be
the primary way to justify a project, Forrester believes that organizations should be able to measure the strategic value of an
investment. Flexibility 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 enterprise-wide upgrade of an office productivity suite can
potentially increase standardization (to increase efficiency) and reduce licensing costs. However, an embedded collaboration
feature may translate to greater worker productivity if activated. The collaboration can only be used with additional
investment in training at some future point. However, having the ability to capture that benefit has a PV that can be
estimated. The flexibility component of TEI captures that value.
RISKS
Risks measure the uncertainty of benefit and cost estimates contained within the investment. Uncertainty is measured in two
ways: 1) the likelihood that the cost and benefit estimates will meet the original projections and 2) the likelihood that the
estimates will be measured and tracked over time. TEI risk factors are based on a probability density function known as
“triangular distribution” to the values entered. At a minimum, three values are calculated to estimate the risk factor around
each cost and benefit.
23. 23
Appendix C: Glossary
Discount rate: The interest rate used in cash flow analysis to take into account the time value of money. Companies set
their own discount rate based on their business and investment environment. Forrester assumes a yearly discount rate of
10% for this analysis. Organizations typically use discount rates between 8% and 16% based on their current environment.
Readers are urged to consult their respective organizations to determine the most appropriate discount rate to use in their
own environment.
Net present value (NPV): The present or current value of (discounted) future net cash flows given an interest rate (the
discount rate). A positive project NPV normally indicates that the investment should be made, unless other projects have
higher NPVs.
Present value (PV): The present or current value of (discounted) cost and benefit estimates given at an interest rate (the
discount rate). The PV of costs and benefits feed into the total NPV of cash flows.
Payback period: The breakeven point for an investment. This is the point in time at which net benefits (benefits minus costs)
equal initial investment or cost.
Return on investment (ROI): A measure of a project’s expected return in percentage terms. ROI is calculated by dividing
net benefits (benefits minus costs) by costs.
A NOTE ON CASH FLOW TABLES
The following is a note on the cash flow tables used in this study (see the example table below). The initial investment
column contains costs incurred at “time 0” or at the beginning of Year 1. Those costs are not discounted. All other cash flows
in years 1 through 3 are discounted using the discount rate (shown in the Framework Assumptions section) at the end of the
year. PV calculations are calculated for each total cost and benefit estimate. NPV calculations are not calculated until the
summary tables are the sum of the initial investment and the discounted cash flows in each year.
Sums and present value calculations of the Total Benefits, Total Costs, and Cash Flow tables may not exactly add up, as
some rounding may occur.
TABLE [EXAMPLE]
Example Table
Ref. Metric Calculation Year 1 Year 2 Year 3
Source: Forrester Research, Inc.