A Forrester Total Economic Impact™ Study Commissioned By Cutover, October 2024
Disaster recovery, including cyber recovery, has become a strategic priority across enterprises due to the increasing frequency and severity of disruptions. However, many businesses lag in preparedness, with less than 40% feeling well prepared for a disaster.1 Automating and streamlining disaster recovery processes to recover applications is key to ensuring business continuity in the face of disruption and enhancing overall resiliency.
Cutover Recover, an IT disaster recovery (DR) solution, automates and streamlines disaster recovery processes with dynamic runbooks while keeping people in the process for decision-making. It enhances resilience by integrating recovery plans across cloud-native, hybrid, on-premises, and multicloud environments, ensuring regulatory compliance and minimizing downtime. Cutover also provides real-time visibility and coordination, enabling teams to execute recovery plans efficiently and effectively.
Cutover commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying Cutover Recover.2 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of Cutover Recover on their organizations.
Return on investment (ROI)
313%
Net present value (NPV)
$2.40M
COOKIE ACCEPTANCE IS REQUIRED TO REGISTER FOR ACCESS TO DIGITAL ASSET
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed four representatives with experience using Cutover Recover. For the purposes of this study, Forrester aggregated the interviewees’ experiences and combined the results into a single composite organization that is a retail organization with 2 million customers and revenues of $1 billion per year.
Interviewees said that prior to using Cutover Recover, their organizations were unable to do large-scale failover tests; were limited in how many single-application IT DR tests they could run; were struggling to meet customers’ and regulators’ requirements; and had little confidence in their ability to execute during a live recovery. However, prior attempts to improve DR processes yielded limited success, leaving them with manual processes that were time-consuming to run, highly error-prone, and not repeatable. They lacked visibility into the progress and ownership of test execution and a clear audit trail. These limitations led to DR tests either not being run successfully or only addressing portions of the technology stack — or longer outages that affected their services.
After the investment in Cutover Recover, the interviewees were able to run more, larger-scale tests, have better visibility into and oversight of the tests, and execute them at lower risk, which built up their confidence to execute successfully. Key results from the investment included a reduction in planning and execution time for IT DR tests and an increase in audit and post-test analysis efficiency.
Quantified benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:
Unquantified benefits. Benefits that provide value for the composite organization but are not quantified for this study include:
Costs. Three-year, risk-adjusted PV costs for the composite organization include:
The representative interviews and financial analysis found that a composite organization experiences benefits of $3.17 million over three years versus costs of $769,000, adding up to a net present value (NPV) of $2.4 million and an ROI of 313%.
“I think Cutover is great. I’ve been a real advocate for it myself. I think the control and visibility that it gives you of those complex events has been really valuable to us. I’m totally sold on its value to us.”
Head of IT service assurance, financial services
“We were using spreadsheets for full-scale testing, but we could not go beyond a certain number of apps. It was just too much of a manual process and too prone to mistakes. Bringing in Cutover helped automate workflows [and] reduced our prep time, and we have now doubled the number of apps we are testing.”
Senior manager, infrastructure services — disaster recovery, financial services
Return on investment (ROI)
Benefits PV
Net present value (NPV)
Payback
From the information provided in the interviews, Forrester constructed a Total Economic Impact™ framework for those organizations considering an investment in Cutover Recover.
The objective of the framework is to identify the cost, benefit, flexibility, and risk factors that affect the investment decision. Forrester took a multistep approach to evaluate the impact that Cutover Recover can have on an organization.
Interviewed Cutover stakeholders and Forrester analysts to gather data relative to Cutover Recover.
Interviewed four representatives at organizations using Cutover Recover to obtain data about costs, benefits, and risks.
Designed a composite organization based on characteristics of the interviewees’ organizations.
Constructed a financial model representative of the interviews using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewees.
Employed four fundamental elements of TEI in modeling the investment impact: benefits, costs, flexibility, and risks. Given the increasing sophistication of ROI analyses related to IT investments, Forrester’s TEI methodology provides a complete picture of the total economic impact of purchase decisions. Please see Appendix A for additional information on the TEI methodology.
Readers should be aware of the following:
This study is commissioned by Cutover 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 study to determine the appropriateness of an investment in Cutover Recover.
Cutover 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.
Cutover provided the customer names for the interviews but did not participate in the interviews.
Consulting Team:
Antonie Bassi
Elina Bauwens
Role | Industry | Region | Number of employees |
---|---|---|---|
Senior manager, infrastructure services — disaster recovery | Financial services | United States | 10,000 |
Senior manager, BC and crisis management | Financial services | United Kingdom | 24,000 |
Executive director, DR testing | Financial services | Global, United States headquarters | 80,000 |
Head of IT service assurance | Financial services | United Kingdom | 18,000 |
Before using Cutover Recover, the interviewees’ organizations faced significant challenges in their DR processes, including the inability to conduct comprehensive tests, meet regulatory requirements, and maintain confidence in their recovery capabilities. Manual, error-prone processes and a lack of visibility and accountability compounded these issues.
The interviewees noted how their organizations struggled with common challenges, including:
The interviewees’ organizations searched for a solution that could:
“Nobody trusts a spreadsheet.”
Senior manager, BC and crisis management, financial services
“We did a full-scale test, and we were at a breaking point. Using spreadsheets, we couldn’t. We wouldn’t have been able to grow past that.”
Senior manager, infrastructure services — disaster recovery, financial services
Based on the interviews, Forrester constructed a TEI framework, a composite company, and an ROI analysis that illustrates the areas financially affected. The composite organization is representative of the four interviewees, and it is used to present the aggregate financial analysis in the next section. The composite organization has the following characteristics:
Description of composite. The global financial services organization has revenues of $1 billion and employs 10,000 people worldwide. It conducts between five and 11 large-scale disaster recovery tests annually, and it tests 200 to 250 site applications to ensure robust IT resilience. The organization maintains a strong global presence, adhering to stringent regulatory requirements and customer scrutiny.
Deployment characteristics. The composite organization begins with five large-scale disaster recovery tests in Year 1 and scales up to 11 tests by Year 3. Over the same period, it expands its single-application testing from 200 to 250 applications, ensuring comprehensive coverage and enhanced resilience.
“Prior to Cutover, there was much more admin, it was much more technical, whereas with Cutover, it’s all very much real time. You could have people building a runbook, and it was there, and it was up and running, and you could see all the timing straightaway. Just the simplicity, ease of use, the ownership you could farm out to other people. It’s embedded, it’s easy, it’s intuitive, it was easy to train people on it.”
Executive director, DR testing, financial services
Ref. | Benefit | Year 1 | Year 2 | Year 3 | Total | Present Value |
---|---|---|---|---|---|---|
Atr | Reduction in planning time for IT DR tests | $32,805 | $92,219 | $109,715 | $234,738 | $188,466 |
Btr | Improved IT DR test execution efficiency | $911,250 | $1,253,880 | $1,450,710 | $3,615,840 | $2,954,613 |
Ctr | Increase in audit and post-test analysis efficiency for IT DR tests | $7,873 | $12,612 | $17,350 | $37,835 | $30,616 |
Total benefits (risk-adjusted) | $951,928 | $1,358,710 | $1,577,775 | $3,888,413 | $3,173,695 | |
Evidence and data. Interviewees reported increased efficiency and consequent time savings for planning their IT DR efforts when using Cutover Recover. Key benefits in this phase included the following:
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. The potential risks associated with this benefit are as follows:
Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $189,000.
“The planning time has improved because you have one central place that people work from that’s accurate and trusted. From a planning perspective, it’s just a lot easier. It’s not disjointed. In a spreadsheet, you’re probably spending a lot of time doing a lot of fixes, and I’d probably double the time. And then you still wouldn’t have the same level of accuracy or confidence.”
Senior manager, BC and crisis management, financial services
Ref. | Metric | Calculation | Year 1 | Year 2 | Year 3 |
---|---|---|---|---|---|
A1 | Average planning time per large test (hours) | Interview data | 160 | 160 | 160 |
A2 | Number of large tests | Interview data | 5 | 8 | 11 |
A3 | Average planning time per single-app test (hours) | Interview data | 5 | 5 | 5 |
A4 | Number of single-app tests | Interview data | 200 | 250 | 250 |
A5 | Reduction in average planning time with Cutover Recover | Interview data | 25% | 50% | 50% |
A6 | Subtotal: Total reduction in planning time (hours) | ((A1*A2)+(A3*A4)) *A5 | 450 | 1,265 | 1,505 |
A7 | Fully burdened hourly rate for IT staff | TEI standard | $81 | $81 | $81 |
At | Reduction in planning time for IT DR tests | A6*A7 | $36,450 | $102,465 | $121,905 |
Risk adjustment | ↓10% | ||||
Atr | Reduction in planning time for IT DR tests (risk-adjusted) | $32,805 | $92,219 | $109,715 | |
Three-year total: $234,738 | Three-year present value: $188,466 |
Evidence and data. Interviewees reported that their biggest efficiency savings with Cutover Recover occurred during the execution of a DR event and testing. The main benefits that interviewees reported were as follows:
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. The potential risks associated with this benefit are as follows:
Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $2,950,000.
50%
Reduction in execution time per test
“Everybody involved in the test is in the Cutover plan. They can see where we are and what tasks are coming up. As soon as the tasks finish, you can see the next one popping up and being available. It definitely speeds up test execution and makes it more efficient.”
Head of IT service assurance, financial services
Ref. | Metric | Calculation | Year 1 | Year 2 | Year 3 |
---|---|---|---|---|---|
B1 | Number of large tests | Interview data | 5 | 8 | 11 |
B2 | Number of staff involved in large test | Interview data | 80 | 80 | 80 |
B3 | Duration of large test (hours) | Interview data/ Staff involved for 75% of test duration | 30 | 30 | 30 |
B4 | Number of single-app tests | Interview data | 200 | 250 | 250 |
B5 | Number of staff involved in single-app testing | Interview data | 10 | 10 | 10 |
B6 | Single-app test duration (hours) | Interview data | 8 | 8 | 8 |
B7 | Reduction in average execution time per test with Cutover | Interview data | 50% | 50% | 50% |
B8 | Subtotal: Total reduction in execution time with Cutover (hours) | (B1*B2*(B3*75%))+(B4*B5*B6))*B7 | 12,500 | 17,200 | 19,900 |
B9 | Fully burdened hourly rate for IT staff | TEI standard | $81 | $81 | $81 |
Bt | Improved IT DR test execution efficiency with Cutover | B8*B9 | $1,012,500 | $1,393,200 | $1,611,900 |
Risk adjustment | ↓10% | ||||
Btr | Reduction in test execution (risk-adjusted) | $911,250 | $1,253,880 | $1,450,710 | |
Three-year total: $3,615,840 | Three-year present value: $2,954,613 |
Evidence and data. The interviewees’ organizations were all in the highly regulated financial services industry, where most tests were being audited either internally or externally. They would also complete detailed post-test analyses to understand what worked well and where they could improve ahead of the next test. The main benefits that interviewees reported with Cutover Recover were as follows:
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. The potential risks associated with this benefit are as follows:
Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $31,000.
Ref. | Metric | Calculation | Year 1 | Year 2 | Year 3 |
---|---|---|---|---|---|
C1 | Number of large tests | Interview data | 5 | 8 | 11 |
C2 | Time spent on audit per large test (hours) | Interview data | 15 | 15 | 15 |
C3 | Time spent on post-test analysis per large test (hours) | Interview data | 12 | 12 | 12 |
C4 | Reduction in average audit prep and post-test analysis with Cutover | Interview data | 80% | 80% | 80% |
C5 | Subtotal: Total reduction in audit and post-test analysis with Cutover (hours) | ((C1*C2)+ (C1*C3)) *C4 | 108 | 173 | 238 |
C6 | Fully burdened hourly rate for IT staff | TEI standard | $81 | $81 | $81 |
Ct | Increase in audit and post-test analysis efficiency for IT DR tests with Cutover | C5*C6 | $8,748 | $14,013 | $19,278 |
Risk adjustment | ↓10% | ||||
Ctr | Increase in audit and post-test analysis efficiency increase for IT DR tests with Cutover (risk-adjusted) | $7,873 | $12,612 | $17,350 | |
Three-year total: $37,835 | Three-year present value: $30,616 |
80%
Reduction in audit preparation and post-test analysis per test
“When completed, there is a read-only artifact that we use for audit. We have never had any regulator question the validity of that. It’s been a really good artifact. If you’ve got a spreadsheet, it’s not as good. It could be changed; it could be edited. This is a read-only copy. Once it’s executed, it’s done. You can’t go back and change it, which we really like.”
Senior manager, BC and crisis management, financial services
Interviewees mentioned the following additional benefits that their organizations experienced but were not able to quantify:
“There’s a big difference between finishing at midnight and finishing at 2 or 3 a.m. Just psychologically for the team. That is a big difference.”
Executive director, DR testing, financial services
The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement Cutover Recover and later realize additional uses and business opportunities, including:
Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Appendix A).
“We’ve used it to make cloud migrations, application releases, data center testing, and even some customer experience work, specifically for customer onboarding.”
Senior manager, BC and crisis management, financial services
Ref. | Cost | Initial | Year 1 | Year 2 | Year 3 | Total | Present Value |
---|---|---|---|---|---|---|---|
Dtr | Software subscription fees | $0 | $189,000 | $283,500 | $283,500 | $756,000 | $619,113 |
Etr | Integration and license costs | $6,563 | $6,563 | $6,563 | $6,563 | $26,250 | $22,882 |
Ftr | Implementation, onboarding and ongoing management costs | $68,429 | $17,820 | $26,730 | $26,730 | $139,709 | $126,802 |
Total costs (risk-adjusted) | $74,991 | $213,383 | $316,793 | $316,793 | $921,959 | $768,797 | |
Evidence and data. Cutover Recover is priced per monthly active user. Users in this case are mainly technology professionals involved in IT disaster recovery.
Modeling and assumptions. Forrester estimates that the composite organization has 100 monthly active users during Year 1; this increases to 150 users in Years 2 and 3.
Risks. This cost may vary among organizations based on the size of the Cutover contract, the organization’s region, the type of organization, and changes over time.
Results. To account for these risks, Forrester adjusted this cost upward by 5%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $619,000.
Ref. | Metric | Calculation | Initial | Year 1 | Year 2 | Year 3 | |
---|---|---|---|---|---|---|---|
D1 | License fee per user | Composite | $1,800 | $1,800 | $1,800 | ||
D2 | Number of users | Composite | 100 | 150 | 150 | ||
Dt | Software subscription fees | D1*D2 | $0 | $180,000 | $270,000 | $270,000 | |
Risk adjustment | ↑5% | ||||||
Dtr | Software subscription fees (risk-adjusted) | $0 | $189,000 | $283,500 | $283,500 | ||
Three-year total: $756,000 | Three-year present value: $619,113 |
Evidence and data. Cutover offers the option to integrate its IT disaster recovery solution with multiple different systems, including single sign-on (SSO), collaboration, IT service management, and automation. The interviewees’ organizations had:
Modeling and assumptions. Forrester assumes that the composite organization will integrate Cutover Recover with single sign-on from the beginning of the partnership.
Risks. The effort and cost of integration will vary depending on an organization’s IT landscape, security architecture restrictions, and changes over time.
Results. To account for these risks, Forrester adjusted this cost upward by 5%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $23,000.
“Role-based access control is currently being implemented and then an API to start testing automated reporting — and then the next thing will be a level of automation to automate tasks in our runbooks to support faster recovery.”
Senior manager, BC and crisis management, financial services
Ref. | Metric | Calculation | Initial | Year 1 | Year 2 | Year 3 | |
---|---|---|---|---|---|---|---|
E1 | SSO integration cost | Composite | $6,250 | $0 | $0 | $0 | |
E2 | SSO yearly license fees | Composite | $0 | $6,250 | $6,250 | $6,250 | |
Et | Integration and license costs | G1 | $6,250 | $6,250 | $6,250 | $6,250 | |
Risk adjustment | ↑5% | ||||||
Etr | Integration and license costs (risk-adjusted) | $6,563 | $6,563 | $6,563 | $6,563 | ||
Three-year total: $26,250 | Three-year present value: $22,882 |
Evidence and data. The interviewees found the implementation to be relatively straightforward; any challenges that occurred were largely due to the complexity of their own IT landscapes. Cutover provided assistance in uploading runbooks into the tool and training the staff on the platform. Some of the interviewees said their organizations created internal Cutover champions to support internal staff with ongoing training and upskilling. Some interviewees also mentioned that employees had to review training videos periodically to remain familiar with the platform.
Modeling and assumptions. Forrester estimates that the composite organization’s implementation, onboarding, and ongoing management includes:
Risks. The cost of implementation, onboarding, and ongoing management will vary with the complexity of an organization’s IT landscape and security architecture guidelines as well as the number of internal stakeholders involved in implementation, onboarding and ongoing management, the amount of time they commit, and their fully burdened hourly rates.
Results. To account for these risks, Forrester adjusted this cost upward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $127,000.
“They stood by us the whole way as we were getting this implemented. They did a lot of the manual work on uploading a lot of our DR plans for the first time while we were still learning how to do that. I can’t say enough good things about them.”
Senior manager, infrastructure services — disaster recovery, financial services
Ref. | Metric | Calculation | Initial | Year 1 | Year 2 | Year 3 | |
---|---|---|---|---|---|---|---|
F1 | Number of employees | Composite | 2 | 100 | 150 | 150 | |
F2 | Fully burdened hourly rate per employee | TEI standard | $81 | $81 | $81 | $81 | |
F3 | Subtotal: Solution implementation (hours) | 3 months * 80% | 384 | ||||
F4 | Average time spent on ongoing training (hours) | Interview data | 2 | 2 | 2 | ||
F5 | Subtotal: Total cost of training | F1*F2*F4 | $16,200 | $24,300 | $24,300 | ||
Ft | Implementation, onboarding, and ongoing management costs | F1*F2*F3 | $62,208 | $16,200 | $24,300 | $24,300 | |
Risk adjustment | ↑10% | ||||||
Ftr | Implementation, onboarding, and ongoing management costs (risk-adjusted) | $68,429 | $17,820 | $26,730 | $26,730 | ||
Three-year total: $139,709 | Three-year present value: $126,802 |
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. Forrester assumes a yearly discount rate of 10% for this analysis.
These risk-adjusted ROI, NPV, and payback period values are determined by applying risk-adjustment factors to the unadjusted results in each Benefit and Cost section.
Initial | Year 1 | Year 2 | Year 3 | Total | Present Value | |
---|---|---|---|---|---|---|
Total costs | ($74,991) | ($213,383) | ($316,793) | ($316,793) | ($921,959) | ($768,797) |
Total benefits | $0 | $951,928 | $1,358,710 | $1,577,775 | $3,888,413 | $3,173,695 |
Net benefits | ($74,991) | $738,546 | $1,041,918 | $1,260,982 | $2,966,454 | $2,404,898 |
ROI | 313% | |||||
Payback period (months) | <6 | |||||
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.
Benefits represent the value delivered to the business by the product. The TEI methodology places 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.
Costs consider all expenses necessary to deliver the proposed value, or benefits, of the product. The cost category within TEI captures incremental costs over the existing environment for ongoing costs associated with the solution.
Flexibility represents the strategic value that can be obtained for some future additional investment building on top of the initial investment already made. Having the ability to capture that benefit has a PV that can be estimated.
Risks measure the uncertainty of benefit and cost estimates given: 1) the likelihood that estimates will meet original projections and 2) the likelihood that estimates will be tracked over time. TEI risk factors are based on “triangular distribution.”
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.
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.
A project’s expected return in percentage terms. ROI is calculated by dividing net benefits (benefits less costs) by costs.
The interest rate used in cash flow analysis to take into account the time value of money. Organizations typically use discount rates between 8% and 16%.
The breakeven point for an investment. This is the point in time at which net benefits (benefits minus costs) equal initial investment or cost.
The initial investment column contains costs incurred at “time 0” or at the beginning of Year 1 that are not discounted. All other cash flows are discounted using the discount rate at the end of the year. PV calculations are calculated for each total cost and benefit estimate. NPV calculations in 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.
1 Source: The State Of Disaster Recovery Preparedness In 2024, Forrester Research, Inc., January 12, 2024.
2 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.
Forrester provides independent and objective research-based consulting to help leaders deliver key transformation outcomes. Fueled by our customer-obsessed research, Forrester’s seasoned consultants partner with leaders to execute on their priorities using a unique engagement model that tailors to diverse needs and ensures lasting impact. For more information, visit forrester.com/consulting.
© Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. Forrester®, Technographics®, Forrester Wave, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies.
Cookie Preferences
Accept Cookies
Decline
Close
This website uses cookies to deliver functionality and enhance your experience. GDPR requires that we obtain your consent before activating these cookies. Please accept the use of cookies or review your cookie settings now.
A cookie is a small text file that a website saves on your computer or mobile device when you visit the site. It enables the website to remember your actions (data inputs, website navigation), so you don’t have to re-enter data when you come back to the site or browse from one page to another.
Behavioral information collected by our web analytics vendor is used to analyze data pertaining to visitor trends, plan website enhancements, and measure overall website effectiveness. We may also use cookies or web beacons to help us offer you products, programs, or services that may be of interest to you and to deliver relevant advertising. We may use third-party advertising companies to help tailor website content to users or to serve ads on our behalf. These companies may also employ cookies and web beacons to measure advertising effectiveness.
Please accept cookies and the collection of behavioral information to receive full functionality and enhance your experience. If you decline cookies, some features of the website may not function normally.
Please see our
Privacy Policy for more information.
https://mainstayadvisor.com/go/mainstay/gdpr/policy.html