Sample Software Reclaim Model for 50,000 Users White Paper
Return on Investment ................................................................................................................................................ 3 Sample RFI Response ................................................................................................................................................... 3 ROI Analysis Approach ................................................................................................................................................. 3 ROI Overview ............................................................................................................................................................... 3 ROI HIGHLIGHTS: ................................................................................................................................................. 3 ROI Three Year Cash Flow ............................................................................................................................................ 3 ROI – Three Year Cash Flow Chart: ..................................................................................................................... 4 ROI – Cumulated Cash Flows ....................................................................................................................................... 4 Three Year Cumulated Cash Flow Chart ............................................................................................................. 4 Software Usage Benchmark Summary......................................................................................................................... 5 Software Usage Benchmarks – Industry Spread ................................................................................................. 5 Top 10 Most Common Applications Used .......................................................................................................... 6 Software Usage Benchmark – Titles Selected for ROI ................................................................................................. 6 Software Usage Benchmarks – AppClarity Raw Data ......................................................................................... 6 Software License Savings – Monetization Methodology ............................................................................................. 7 Software License Savings Assumptions .............................................................................................................. 7 Software License Savings – Worksheet ............................................................................................................... 8 Software License Savings – Summary ................................................................................................................. 8 Sample Savings Calculation – (Photoshop) ......................................................................................................... 9 Additional Software License Savings ............................................................................................................................ 9 ROI Assumptions .......................................................................................................................................................... 9
NPV
CASH FLOW ANALYSIS Item Description
Type
Investment:
YEAR 1
YEAR 2
YEAR 3
Total
$
4,112,901.26
SPEND 1E License Cost
Cap
$ (2,250,000.00) $
-
$
-
$
-
$
(2,250,000.00)
1E Services
Cap
$
-
$
-
$
-
$
(200,000.00)
1E Maintenance
Exp
$
(450,000.00) $
(450,000.00) $
(450,000.00) $
(1,350,000.00)
License Savings
Exp
$
3,700,887.86 $
3,935,794.12 $
Server License Savings
Exp
Summary
Exp
$
Cap
$ (2,450,000.00) $
(200,000.00) $
NPV Discount Rate 10%
IRR
SAVINGS $
$
-
$
-
$
3,250,887.86
(2,450,000.00) $
$
-
3,485,794.12
$
(450,000.00) $
-
$ $ $
(450,000.00) $
3 Year Spend: $ (3,800,000.00)
Financial Metrics Pricing Model Y1 Total Investment Total Investment (3 Years) Total Savings (3 Years) Return on Investment (ROI) Payback Period (Months)
Values Perpetual ($2,450,000) ($3,800,000) $9,601,383 113% 9.04
1,964,700.90 -
$
9,601,382.88
$
1,514,700.90 $
113%
8,251,382.88
Payback (Months)
-
9.04
(450,000.00) $
(3,800,000.00)
3 Year Save: $
9,601,382.88
12,000,000 10,000,000 8,000,000 Savings
6,000,000
Spend
Cumulated Cash Flows Savings Year 1 Year 2 Year 3
4,000,000
Spend $0
$2,450,000
$3,700,888
$2,900,000
$7,636,682
$3,350,000
$9,601,383
$3,800,000
2,000,000 0
Initial
Year 1
Year 2
Year 3
Overview of Benchmark Results
Analysis of a typical customer’s full database reveals there is significant license waste across the whole environment. Findings below include a sampling of 74 companies across 13 industries totaling 1.7 M seats shows 28% of all software deployed is unused and 5% is rarely used.
Benchmark Summary by Company
Summary by Company
Total Companies Benchmarked: # Industries: Total Seat Count: Unused: Rarely Used: Used:
74 12 1.8 M 28% 5% 67%
Unused:
Rarely Used:
Used:
Benchmark Summary by Software Title
Summary by Software Title
Total Software Packages Benchmarked: Total Data Points: Unused: Rarely Used: Used:
1,845 466 M 42% 18% 40%
Unused:
Rarely Used:
Industry # Companies Sum of Size Communications 4 99700 Engineering 5 47200 Finance 9 625500 Healthcare 8 222000 Manufacturing 10 202300 Retail 5 88500 Services 6 72700 Education 3 15600 Federal 1 15000 Technology 4 112000 Energy 10 75300 Insurance 7 147000 Pharmaceutical 2 30000 Grand Total 74 1,752,800
Used:
Product Acrobat Professional Visio Professional Visual Studio Professional Visio Standard Project Standard Project Professional Photoshop Crystal Reports Illustrator InDesign
Product
Average of Average of Avg. Rarely Avg. Seat Count of Sum of Seat Deployed % Unused % Used % Count Customer Count 12% 24% 10% 22763 64 1456800 6% 25% 24% 23844 61 1454500 2% 48% 18% 24624 58 1428200 10% 25% 25% 23745 60 1424700 10% 37% 18% 24870 57 1417600 6% 27% 25% 22444 63 1414000 2% 29% 14% 21698 63 1367000 4% 54% 11% 27208 50 1360400 2% 33% 16% 22132 59 1305800 1% 39% 16% 23691 54 1279300
Avg. % Avg. % Deployed Unused
Project Standard 9.55% SQL Optimizer for Oracle 1.48% Project Professional 5.91% Acrobat Professional 11.70% Business Objects Enterprise 1.53% Visio Standard 10.07% Visio Professional 5.58% Minitab 2.00% Inventor 1.14% InDesign 1.18% QuickTest Professional 0.67% Crystal Reports 3.80% BusinessObjects 1.31% Toad for Oracle 1.46% Publisher 9.75% Visual Studio Professional 1.76% Photoshop 2.23% Toad Data Modeler 0.84%
37% 71% 27% 24% 52% 25% 25% 31% 36% 39% 35% 54% 40% 38% 39% 48% 29% 65%
Avg. % Avg. Seat Rarely Used Count
18% 8% 25% 10% 14% 25% 24% 15% 15% 16% 12% 11% 14% 10% 16% 18% 14% 13%
24870 31707 22444 22763 36705 23745 23844 31494 39947 23691 39771 27208 55725 32346 36374 24624 21698 32625
# Customers
57 29 63 64 20 60 61 32 19 54 24 50 16 37 27 58 63 28
Product
Avg. % Avg. % Deployed Unused
Illustrator 1.61% Acrobat Standard 14.40% AutoCAD LT 0.51% Creator DE 15.00% Visual Studio Ultimate 1.55% Toad for Data Analysts 0.78% pcAnywhere 4.96% Captivate 0.46% Exceed 0.97% SQL Compare 0.33% WinZip 28.92% Reflection X 0.76% Tableau 0.24% WebEx 20.26% DRAW Graphics Suite 0.50% Dreamweaver 0.87% Dragon NaturallySpeaking 0.74%
33% 9% 40% 65% 32% 67% 71% 48% 35% 57% 15% 51% 38% 7% 44% 37% 37%
Avg. % Avg. Seat # Rarely Used Count Customers
16% 10% 15% 7% 22% 9% 7% 17% 13% 12% 11% 9% 22% 13% 15% 17% 9%
22132 25610 30125 32362 32521 30286 36476 38481 38971 45080 24818 55642 38723 30079 43879 28783 44760
59 48 36 29 34 28 25 26 24 15 45 12 22 34 19 40 20
# Products Incl uded i n ROI: % Recl ai m - Unus ed: % Recl ai m - Rarel y Us ed: Annual Software Support Cos t:
35 75% 25% 20%
Late Vers i on % Reducti on: % New Purchas es Per Year: # Years Res erve: % Future Unus ed
0% 10% 2 25%
Software Usage Data - 74 Customer Sampling
$ $ $ $
Price 599.95 2,250.00 688.00 288.00
Publisher Microsoft Quest Software Microsoft Adobe
Product Project Standard SQL Optimizer for Oracle Project Professional Acrobat Professional
# Products Incl uded i n ROI: % Recl ai m - Unus ed: % Recl ai m - Rarel y Us ed: Annual Software Support Cos t:
Deployed Unused
4775 739 2954 5851
1752 522 795 1382
35 75% 25% 20%
NET SAVINGS: $
Rarely Used % Unused
874 62 727 571
37% 71% 27% 24%
Product
Avg. % Avg. % Deployed Unused
Project Standard 9.55% SQL Optimizer for Oracle 1.48% Project Professional 5.91% Acrobat Professional 11.70%
37% 71% 27% 24%
Late Vers i on % Reducti on: % New Purchas es Per Year: # Years Res erve: % Future Unus ed
Year 1 3,700,888 $
Year 2 3,935,794 $
Avg. % Avg. Seat Rarely Used Count
18% 8% 25% 10%
24870 31707 22444 22763
0% 10% 2 25% Year 3 1,964,701
# Customers
57 29 63 64
Photoshop Cost of License: Annual Support Charge: Unused: Unused Percentage Removed: Unused Removed: Rarely Used Rarely Used Percentage Removed: Rarely Used Removed:
$2,000 $400 327 75% 245 162 25% 40.50
Purchase Avoidance - #Licenses: Purchase Avoidance - Savings: Maintenance Avoidance on Additional Lic: Maintenance Avoidance on Terminated Lic.: Future Unused: Net Save:
INCLUDED in ROI: Yes Total to be Removed: 286 Late Version Percentage Reduction: 0% Total for Reclaim: 286 Number Purchased/Yr: 112 Number of Years Reserve: 2.0 Total Target # of Licenses to Reserve: 223 Total Target Licenses for Reclaim: 223 Licenses Immediately Terminated: 63 Year 1 Year 2 Year 3 112 112 $223,000 $223,000 $0 $44,600 $89,200.00 $25,100 $25,100 $25,100 $16,350.00 $16,350.00 $248,100 $309,050 $130,650
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