Taking the measure of Microsoft Office 365

LAN649 Taking the measure of Microsoft Office 365

Microsoft likes to commission Forrester Consulting to do total economic impact analyses of the use of Office 365, because the findings are consistently impressive.

In recent times Forrester has analysed the TEI of Microsoft 365 on retail organisations (January 2016); on small and medium businesses (October 2015); of Microsoft Project And Portfolio Management (December 2015); on enterprise customers (October 2014); for healthcare organisations (December 2015); The TEI of Polycom Solutions for Office 365 (September 2016)

And if you think TEI is a generic and generally accepted concept, you’d be wrong. It is in fact a trademark of Forrester Consulting and a service that Forrester offers to any organisation willing to pay for it, as Forrester’spromotional brochureexplains.

A decade of economic impact assessments

“For more than 10 years, IT leaders and CIOs have used TEI’s comprehensive methodology to help justify tech purchases based on the anticipated value to their business,” the brochure says.

“Partnering with Forrester enables you to use the same TEI methodology to credibly prove the value of your offering and: simplify your prospects’ decision processes with personalised RoI calculations; assist prospects’ internal buy-in by communicating costs, benefits, risks and value in economic terms; attract new prospects by leveraging co-branded TEI case studies, RoI tools and promotional activities.”

So, with that caveat let’s take a look at some of Forrester’s findings (all figures are in $US).For small business, Forrester presented its conclusions for the impact on organisations with “from one to 250 users” (although it’s hard to see how the same results could apply to such a wide range of business sizes).

Forrester reported finding, over three years were: RoI of 154 percent, payback in 5.1 months and net present value of $104,000. It assessed total benefits at $171,000 and costs at $67,000.

Benefits were made up of $90,000 in technology, $76,000 from mobility and $5000 from control and compliance.

Creating the composite enterprise

To compile its TEI for large enterprises Forrester interviewed three existing customers with multiple years of experience using Office 365 and conducted an online survey with 60 large organisations also using Office 365.

Based on these it constructed a composite organisation that encompassed characteristics heard across the interviews and then created a TEI financial framework and an associated RoI analysis for this composite company.

It found a RoI of 162 percent, an internal rate of return of 468 percent a net present value per user of $1348 and a payback period of seven months.

Forrester similarly created a composite retail organisation with 6000 users and found hardware and labour savings of $2.7m, worker efficiency and anytime access benefits worth $4.3m, compliance cost savings worth $0.6m, Savings through better decisions from more timely access to data were worth $2.6m and greater efficiency and improved productivity benefits were worth $2.6m, all for a cost of $3.6m.

All in all, a pretty compelling set of figures.

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