Total Economic Impact
Cost Savings And Business Benefits Enabled By Microsoft Foundry
A FORRESTER TOTAL ECONOMIC IMPACT STUDY COMMISSIONED BY MICROsOFT, FEBRUARy 2026
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Total Economic Impact The Total Economic Impact™ Of Microsoft FoundryA FORRESTER TOTAL ECONOMIC IMPACT STUDY COMMISSIONED BY MICROsOFT, FEBRUARy 2026 Cost Savings And Business Benefits Enabled By Microsoft Foundry
Executive SummaryMicrosoft Foundry offers a unified, interoperable platform to build, optimize, and govern AI innovation at scale. With Foundry, customers significantly cut the time and costs required to develop AI applications and agents. The faster development cycle allows customers to launch new AI agents and products faster, drive incremental revenue growth, improve employee productivity, and reduce operating expenses. Microsoft Foundry provides professional developers and technical teams with tools to build, optimize, and govern AI applications and agents within a modular platform. With Foundry, technical teams can develop and fine-tune custom AI models and access a catalog of more than 11,000 AI models, including open-source AI, industry, and frontier models from providers such as OpenAI, Anthropic, DeepSeek, and Meta. Technical teams can orchestrate and monitor agentic workflows using Foundry and open-source agent frameworks.1 Foundry has built-in quality, safety, and security controls and observability to support production-grade AI development and operation. Microsoft commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by building with Microsoft Foundry.2 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of Microsoft Foundry on their organizations. To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed 10 decision-makers at five organizations and surveyed 154 respondents with experience using Microsoft Foundry. For the purposes of this study, Forrester aggregated the experiences of the interviewees and survey respondents and combined the results into a single composite organization, which is a global organization with 25,000 employees and revenue of $10 billion per year. The interviewees said that prior to using Microsoft Foundry, it was expensive and inefficient to develop AI applications and agents. Managing underlying compute and storage infrastructure required significant time and resources. Technical teams worked inefficiently across multiple platforms to develop AI applications and agents and did not always have access to the latest AI models. The interviewees were concerned that their organizations lacked appropriate security measures to help ensure responsible AI development and protect their organizations’ data and privacy. After the investment in Microsoft Foundry, the interviewees had a single platform for AI application and model development, reducing development time and costs. With Foundry, their technical teams had access to the latest AI models, including frontier and open-source models. Microsoft managed and maintained the underlying compute infrastructure, ensuring that it was state of the art. With Foundry, interviewees’ technical teams had tools to improve their productivity, including reusable templates and AI model leaderboards to help them select the best AI models to meet their needs. Enterprise-grade security embedded in the Foundry platform and throughout the AI lifecycle accelerated production readiness. “What benefits has your organization experienced with Microsoft Foundry?”[CHART DIV CONTAINER]
Operational efficiencies
Improved customer experience and customer retention
Reduced time to build AI applications and agents
Improved AI model and agent quality
Decreased labor for technical teams
Improved security and compliance
Improved time to market
Increased revenue
Reduced cost to develop and deploy AI applications and agents
Increased product and service innovation
Decreased costs by decommissioning legacy tools
Decreased labor for business end users
Base: 154 AI decision-makers at organizations in the US and Europe using Microsoft Foundry Key FindingsQuantified 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 present value (PV) costs for the composite organization include:
The financial analysis that is based on the interviews and survey found that a composite organization experiences benefits of $49.5 million over three years versus costs of $11.6 million, adding up to a net present value (NPV) of $37.9 million and an ROI of 327%. Key Statistics327%Return on investment (ROI) $49.5MBenefits present value (PV) $37.9MNet present value (NPV) <6 monthsPayback Benefits (Three-Year)[CHART DIV CONTAINER]
Technical team productivity improvement
Streamlined operating expenses
Faster time to market
End-user productivity improvement
Avoided prior infrastructure and services cost
The Microsoft Foundry Customer JourneyDrivers leading to the Microsoft Foundry investmentInterviews
Key ChallengesPrior to adopting Foundry, interviewees’ organizations typically developed AI models and AI agents on their own infrastructure and self-sourced third-party AI models. Interviewees and survey respondents noted how their organizations struggled with common challenges, including:
“What were the key factors or pain points that led your organization to adopt Microsoft Foundry?”[CHART DIV CONTAINER]
Concerns with AI security, privacy, or governanace
Challenges scaling AI infrastructure
Delays and inefficiencies bringing new AI models to market
Limited internal resources to develop AI models and AI agents
Inability to easily customize or fine-tool AI models
Challenges getting started with AI agents
Difficulties orchestrating AI agents
Limited access to third-party and open-source AI models
Challenges tracking AI agent behavior
Concerns about AI model quality
Challenges deploying AI agents in a multicloud environment
Challenges choosing which AI model to use
Base: 154 AI decision-makers at organizations in the US and Europe using Microsoft Foundry Composite OrganizationBased on the interviews and survey, 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 interviewees’ organizations, and it is used to present the aggregate financial analysis in the next section. The composite organization has the following characteristics:
KEY ASSUMPTIONS
Analysis Of BenefitsQuantified benefit data as applied to the compositeTotal Benefits
Technical Team Productivity ImprovementEvidence and data. The interviewees and survey respondents found that their technical teams saved significant time developing AI applications and agents with Foundry, ranging from 10% to 40%.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. The expected financial impact is subject to risks and variation based on several factors:
Results. To account for these risks, Forrester adjusted this benefit downward by 5%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $15.7 million. 35%Technical team time savings by Year 2 “You indicated that Microsoft Foundry has helped your organization’s technical teams save time building AI applications and agents. What percentage of time savings has your organization experienced since using Foundry?”[CHART DIV CONTAINER]
0%
1% to 9%
10% to 29%
30% to 49%
50% to 69%
70% to 89%
Base: 80 AI decision-makers at organizations in the US and Europe who found that Microsoft Foundry reduced their technical team’s time to build AI applications and agents Technical Team Productivity Improvement
Streamlined Operating ExpensesEvidence and data. The interviewees and survey respondents realized operating cost savings with the AI applications and agents developed with Foundry.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. The expected financial impact is subject to risks and variation based on several factors:
Results. To account for these risks, Forrester adjusted this benefit downward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $12.3 million. 10%Reduction in impacted operating expenses by Year 2 “You indicated that your organization has been able to streamline operations and reduce operating expenses with Microsoft Foundry. On average, by what percentage has your organization been able to decrease its expenses since using Foundry?”[CHART DIV CONTAINER]
0%
1% to 5%
6% to 10%
11% to 20%
21% to 30%
30% or more
Note: Percentages may not total 100 due to rounding Streamlined Operating Expenses
Faster Time To MarketEvidence and data. Foundry reduced the overall AI application and AI agent development cycle for interviewees’ and survey respondents’ organizations. Easier infrastructure management and enhanced technical team productivity contributed to the time savings. The faster AI application and agent development cycle allowed organizations to launch new revenue-generating products faster, accelerating incremental revenue.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. The expected financial impact is subject to risks and variation based on several factors:
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 $12.3 million. $17 millionIncremental profit over three years “You noted that AI models and agents Microsoft Foundry enables have contributed to increased revenue. In which of the following ways has your organization experienced this impact?”[CHART DIV CONTAINER]
Created new revenue streams
Increased customer engagement
Improved existing revenue streams
Improved customer retention
Accelerated time to market for products or services
Improved operations
Increased innovation
Others
Base: 66 AI decision-makers at organizations in the US and Europe whose organizations experienced an increase in revenue with Microsoft Foundry Faster Time To Market
End-User Productivity ImprovementEvidence and data. The interviewees and survey respondents found that the AI applications and agents developed with Foundry helped their employees save time. The interviewees estimated that the time savings for end users varied from 2% to 30% based on roles and use cases. The survey respondents reported that approximately one-third of the AI agents they develop with Foundry target human assistance.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. The expected financial impact is subject to risks and variation based on several factors:
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 $4.8 million. 10%End-user time savings “You indicated that AI models and AI agents built with Microsoft Foundry have helped your organization’s end users save time. What percentage of time savings has your organization experienced since using Foundry?”[CHART DIV CONTAINER]
0%
1% to 9%
10% to 29%
30% to 49%
50% to 69%
70% to 89%
Base: 42 AI decision-makers at organizations in the US and Europe who experienced business end-user time savings with Microsoft Foundry End-User Productivity Improvement
Avoided Prior Infrastructure And Services CostEvidence and data. After adopting Foundry, the interviewees’ and survey respondents’ organizations were able to reduce spending on legacy infrastructure and tools that had been supporting AI application and model development. They were also able to reduce the support required for AI application and model development.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. The expected financial impact is subject to risks and variation based on several factors:
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 $4.3 million. Avoided Prior Infrastructure And Services Cost
Unquantified BenefitsInterviewees and survey respondents mentioned the following additional benefits that their organizations experienced but were not able to quantify:
“How much value do the following security and governance features provide to your organization?”[CHART DIV CONTAINER]
Enterprise-grade It security
Encryption of data at rest and in transit
Ability to detect and block prompt injection attacks and malicious code
Third-party AI model screening for malware and vulnerabilities
Ability to detect and redact personally indentifiable information
Compliance certifications
Integration with Microsoft Defender
Ability to detect and filter toxic or biased content
Foundry Locale for remote or disconnected environments
Ability to detect and correct hallucinations
Significant value
Above average value
Base: 154 AI decision-makers at organizations in the US and Europe using Microsoft Foundry “How much do you agree with the following statements? For my organization, Microsoft Foundry has enabled:”[CHART DIV CONTAINER]
Easier model grounding or knowledge sources integration
Easier AI model fine-tuning
More cost-effective AI model development
Improved AI model accuracy
Improved AI agent quality
Access to a wide variety of data sources
Strongly agree/agree
Base: 154 AI decision-makers at organizations in the US and Europe using Microsoft Foundry FlexibilityThe value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement Microsoft Foundry 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 Total Economic Impact Approach). Analysis Of CostsQuantified cost data as applied to the compositeTotal Costs
Microsoft Foundry CostEvidence and data. Foundry costs are typically consumption based and will vary based on which Foundry services are used.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. The cost of Microsoft Foundry will vary based on:
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 $8.2 million. Microsoft Foundry Cost
Implementation And MaintenanceEvidence and data. The interviewees found it easy to implement Foundry. Their technical teams were able to begin using Foundry quickly and the learning curve was straightforward.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. The implementation and maintenance cost will vary based on:
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 $3.4 million. 2 monthsTime to pilot and test Foundry Implementation And Maintenance
Financial SummaryConsolidated Three-Year, Risk-Adjusted MetricsCash Flow Chart (Risk-Adjusted)[CHART DIV CONTAINER]
Total costs
Total benefits
Cumulative net benefits
Initial
Year 1
Year 2
Year 3
Cash Flow Analysis (Risk-Adjusted)
Please NoteThe 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. 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. From the information provided in the interviews and survey, Forrester constructed a Total Economic Impact™ framework for those organizations considering an investment in Microsoft Foundry. 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 Microsoft Foundry has on an organization. Due DiligenceInterviewed Microsoft stakeholders and Forrester analysts to gather data relative to Microsoft Foundry. Interviews And SurveyInterviewed 10 decision-makers at five organizations and surveyed 154 respondents at organizations using Microsoft Foundry to obtain data about costs, benefits, and risks. Composite OrganizationDesigned a composite organization based on characteristics of the interviewees’ and survey respondents’ organizations. Financial Model FrameworkConstructed a financial model representative of the interviews and survey using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewees and survey respondents. Case StudyEmployed 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. Total Economic Impact ApproachBenefitsBenefits represent the value the solution delivers to the business. The TEI methodology places equal weight on the measure of benefits and costs, allowing for a full examination of the solution’s effect on the entire organization. CostsCosts comprise all expenses necessary to deliver the proposed value, or benefits, of the solution. The methodology captures implementation and ongoing costs associated with the solution. FlexibilityFlexibility represents the strategic value that can be obtained for some future additional investment building on top of the initial investment already made. The ability to capture that benefit has a PV that can be estimated. RisksRisks 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.” Financial TerminologyPresent value (PV)The present or current value of (discounted) cost and benefit estimates are given at an interest rate (the discount rate). The PVs of costs and benefits feed into the total NPV of cash flows. 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. Return on investment (ROI)A project’s expected return in percentage terms. ROI is calculated by dividing net benefits (benefits less costs) by costs. Discount rateThe 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%. PaybackThe breakeven point for an investment. This is the point in time at which net benefits (benefits minus costs) equal initial investment or cost. Appendix ATotal Economic ImpactTotal Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists solution providers in communicating their value proposition to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of business and technology initiatives to both senior management and other key stakeholders. Appendix BSurvey Demographics[CONTENT]
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Note: Percentages may not total 100 due to rounding. Appendix CSupplemental MaterialRelated Forrester Research Agentic AI Glossary, Forrester Research, Inc., October 8, 2025. Predictions 2026: Cloud Computing, Forrester Research, Inc., October 21, 2025. Appendix DEndnotes1 Forrester defines agentic AI as “systems of foundation models, rules, architectures, and tools that enable software programs to flexibly plan and adapt to resolve goals by taking action in their environment, with increasing levels of autonomy.” Source: Agentic AI Glossary, Forrester Research, Inc., October 8, 2025. 2 Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists solution providers in communicating their value proposition to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of business and technology initiatives to both senior management and other key stakeholders. 3 Source: Stern School of Business at NYU. DisclosuresReaders should be aware of the following: This study is commissioned by Microsoft 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 Foundry. For any interactive functionality, the intent is for the questions to solicit inputs specific to a prospect’s business. Forrester believes that this analysis is representative of what companies may achieve with Foundry based on the inputs provided and any assumptions made. Forrester does not endorse Microsoft or its offerings. Although great care has been taken to ensure the accuracy and completeness of this model, Microsoft and Forrester Research are unable to accept any legal responsibility for any actions taken on the basis of the information contained herein. The interactive tool is provided ‘AS IS,’ and Forrester and Microsoft make no warranties of any kind. Microsoft 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. Microsoft provided the customer names for the interviews but did not participate in the interviews. Forrester fielded the double-blind survey using a third-party survey partner. Consulting Team:
Jennifer Adams PublishedFebruary 2026 |
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