The Total Economic Impact™ Of Microsoft Lync 2013 Unified Communications Platform Forrester Consulting Jonathan Lipsitz TEI Consulting Practice

© 2014 Forrester Research, Inc. Reproduction Prohibited6 Agenda › What is TEI? › Analysis o Composite Organization o Benefits o Costs o Flexibility o Risk › Financial Summary Please note: this presentation is an abridged version of the full case study. For a full explanation of methodology and details on model calculations, please refer to the full case study that will be available on the Microsoft Downloads center.

© 2014 Forrester Research, Inc. Reproduction Prohibited7 What is TEI?

© 2014 Forrester Research, Inc. Reproduction Prohibited8 TEI Framework and Components The TEI framework centers on quantifying benefits, capturing costs, evaluating flexibility, and adjusting risk. Total Economic Impact RISK Benefits (Impact on Business) Costs (Impact on Budget) Flexibility (Options) TEI Approach and Methodology Perform due diligence Conduct interviews & survey Create composite organization Construct financial model Develop case study

© 2014 Forrester Research, Inc. Reproduction Prohibited9 Analysis › Composite Organization – companies surveyed and interviewed › Benefits – looked at those incremental to previous solutions › Costs › Flexibility › Risk

© 2014 Forrester Research, Inc. Reproduction Prohibited10 7 Companies* Completed A Survey Why were you looking for a new web conferencing/unified communications solution?** *One from each of the following industries: electronics, manufacturing, telecommunication services, financial services, insurance, education/non-profit, and sales & distribution **Select all that apply. Total number of responses.

© 2014 Forrester Research, Inc. Reproduction Prohibited11 7 Companies Completed A Survey Why were you looking for a new web conferencing/unified communications solution? Which of the following benefit areas have you seen or expect to realize?** **Select all that apply. Total number of responses.

© 2014 Forrester Research, Inc. Reproduction Prohibited12 5 Companies Interviewed For The Composite Organization Global Transportation Translation Special Needs SchoolOil & Gas Architecture

© 2014 Forrester Research, Inc. Reproduction Prohibited13 Defined Composite Organization As A Mining Company › HQ in Singapore › Ops in Asia, USA & Europe › 5,000 total users › Project goals  Collaboration  TCO  Complexity

© 2014 Forrester Research, Inc. Reproduction Prohibited14 Replaced Existing Solutions With Microsoft Lync 2013 › On premise solution › Primary deployment in Singapore › SBAs at US and Europe HQs › Lync 2013 Plus CALs › Four virtualized physical servers › PSTN gateways › IP phones and headsets

© 2014 Forrester Research, Inc. Reproduction Prohibited15 Three Incremental Benefits Were Quantified (1 of 3) 1. Eliminated PBX & web conferencing costs Existing, replacement and new PBX installations Multiple web conferencing solutions Risk adjustment  10% Three year risk adjusted benefits: › $1.3 Million

© 2014 Forrester Research, Inc. Reproduction Prohibited16 Three Incremental Benefits Were Quantified (2 of 3) 2. Reduced telephony Long distance Conference calling International roaming Risk adjustment  10% Three year risk adjusted benefits: ›$1.7 Million

© 2014 Forrester Research, Inc. Reproduction Prohibited17 Three Incremental Benefits Were Quantified (3 of 3) 3. Staffing Optimization PBX/communication system administrators IT (general) support desk Drilling specialists Risk adjustment  10% Three year risk adjusted benefits: ›$3.9 Million

© 2014 Forrester Research, Inc. Reproduction Prohibited18 Total Three-Year Risk Adjusted Incremental Benefits Total benefits: $6,862,500

© 2014 Forrester Research, Inc. Reproduction Prohibited19 There Was Also A General Increase In User Productivity What specific areas have seen an increase in team efficiency?

© 2014 Forrester Research, Inc. Reproduction Prohibited20 Total Three-Year Risk Adjusted Costs Total costs: $3,577,400

© 2014 Forrester Research, Inc. Reproduction Prohibited21 Risk And Flexibility Considerations Risk › Used by Forrester to relate more likely outcomes to readers › Adjust original cost/benefit estimates Flexibility › An “option” for creating future value based on previous investments › Flexibility calculations were not included in the ROI calculations › Flexibility benefits included: › Better real-time collaboration › Improved mobile working › Future opportunities › Lync for telepresence rooms › Tighter Skype integration › Better SharePoint integration

© 2014 Forrester Research, Inc. Reproduction Prohibited22 Financial Summary ROI / IRR Payback period NPV (per user) 79% / 113%14 months $2.5 million $493

Thank you Jonathan Lipsitz

10+ Year partnership history Global Alliance Partner to Microsoft – one of only 32 SIs managed by Corporate Microsoft is one of only 2 global strategic partners to Dimension Data Global strategic agreement with Microsoft around Unified Communications Global strategic agreement with Polycom around Unified Communications Relationship More Lync Certified Masters than any organizations (excluding Microsoft) True global delivery procurement, support and delivery capabilities Deployed in excess of 1.5 million Lync seats globally Gold certified in 21 countries on 5 continents 1,400 Microsoft certifications and 300 MCSEs Only partner in history to win 11 Global Partner of the Year awards in 5 years Global Managed and Support services for Lync Server 2013 Skills and Expertise

Financial Results Lync Plan Return on Investment (ROI)35% Payback Period (in months)10 Overall Savings/Expense $ 1,729,820 Operating Savings/Expense N/A Operating Cost Reduction/Increase N/A Total Cost Comparisons Year 1Year 2Year 3TOTAL Current Plan Spending $ 1,927,000 $ 1,047,000 $ 1,191,000 $ 4,165,000 Lync Plan Spending $ 1,538,495 $ 434,078 $ 462,607 $ 2,435,180 Total Savings or Expenses by Plan Year 1Year 2Year 3TOTAL Lync Plan $ 388,505 $ 612,922 $ 728,393 $ 1,729,820 Total Three-Year Savings or Expenses by Plan

© 2014 Forrester Research, Inc. Reproduction Prohibited38 Financial Term Glossary PV (Present Value) – value of a stream of cash flows over several years NPV (Net Present Value) – PV of benefits – PV of costs = NPV Payback period - the length of time required for an investment to recover its initial outlay in terms of profits or savings ROI (return on investment) – gain from investment – cost of investment cost of investment IRR (internal rate of return) – IRR is the interest rate that will bring a series of cash flows (positive and negative) to a NPV of zero. Risk adjusted ROI – a more conservative view of ROI, with risk adjustments for costs and benefits

© 2014 Forrester Research, Inc. Reproduction Prohibited39 Photo Credits › All photos used under Creative Commons license. › Credits › Slide 8 Rental car - Tom Wolf Translation - WordShore School - loop_oh Oil - katsrcool Drafting - tecrekka › Slide 19: - Duncan › Slide 11: - dannyman › Slide 13: - a fairfaxcounty