A Forrester New Technology Projected Total Economic Impact™ Study Commissioned By Microsoft, December 2024
In today’s dynamic work environment, unified communication solutions are essential. With remote and flexible work on the rise, seamless communication tools are the fundamental enablers of productivity and collaboration — but native mobile calling has been a gap. According to Forrester, the number of global smartphone users reached 5.8 billion in 2024, with mobile data traffic expected to grow by 50% annually1. Unified communications-as-a-service (UCaaS) platforms meet this demand by bringing meeting, messaging, and calling functionalities —with their simplified IT management, security, and scalability — and integrating them with mobile calling plans, creating a better mobile collaboration experience. The widespread adoption of 4G and 5G networks further underscores the importance of UCaaS in supporting effective flexible work.2
Microsoft Teams Phone Mobile integrates a user’s mobile phone number with their Microsoft Teams account, allowing them to have a single phone number that works across their mobile service and Microsoft Teams and enabling a seamless transition between networks and devices. It is designed to provide a unified communication experience that supports flexible work environments and enhances mobility and connectivity for organizations while allowing them to maintain the right security and compliance operating standards.
Microsoft commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying Teams Phone Mobile.3 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of Teams Phone Mobile on their organizations.
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed seven representatives with experience using Teams Phone Mobile and surveyed 228 respondents from organizations with telephony systems that can be replaced by Teams Phone Mobile. For the purposes of this study, Forrester aggregated the experiences of the interviewees and combined the results into a single composite organization. The composite has 8,000 employees, and 20% are high-mobility, high-connectivity workers.
Interviewees said that prior to using Teams Phone Mobile, their organizations were using on-premises telephony systems with desk phones as well as corporate-provided mobile lines, each with separate numbers and functionalities. This created an environment where employees had to mindfully manage two separate numbers depending on whether they were at their desk or on mobile. Call quality issues (often due to poor network) further disrupted user productivity. On the management side, IT and telephony teams found it challenging to manage multiple numbers and devices for each user, not to mention ensuring that they do so in a secure and compliant manner. All of these factors collectively hindered overall efficiency and connectivity within the organizations.
Interviewees said that after investing in Teams Phone to enable cloud calling and using Teams Phone Mobile to enable connectivity for highly mobile users, their organizations saw enhanced productivity and flexibility, as employees could join calls from anywhere, even while commuting. The platform improved call quality and ensured seamless transitions between Teams and mobile calling functionality, reducing disruptions and boosting communication reliability. Unifying communication tools into a single platform simplified IT and telephony management. Crucially, Teams Phone Mobile ensures that its security and compliance capabilities — like mandated call recording — apply to every conversation.
Base: 228 respondents from organizations with telephony systems that can be replaced by Teams Phone Mobile
Source: A commissioned study conducted by Forrester Consulting on behalf of Microsoft, October 2024
Quantified projected 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:
Forrester modeled a range of projected low-, medium-, and high-impact outcomes based on evaluated risk. This financial analysis projects that the composite organization accrues the following three-year net present value (NPV) for each scenario by enabling Microsoft Teams Phone Mobile:
Projected return on investment (PROI):
Projected benefits PV:
Projected net present value (PNPV):
Total costs:
Figures in chart are projections for the mid-case scenario.
From the information provided in the interviews, Forrester constructed a New Technology: Projected Total Economic Impact™ (New Tech TEI) framework for those organizations considering an investment in Teams Phone Mobile.
The objective of the framework is to identify the potential cost, benefit, flexibility, and risk factors that affect the investment decision. Forrester took a multistep approach to evaluate the projected impact that Teams Phone Mobile can have on an organization.
Interviewed Microsoft stakeholders and Forrester analysts to gather data relative to Teams Phone Mobile.
Interviewed seven representatives of organizations with experience using Teams Phone Mobile in a pilot or beta stage and surveyed 228 respondents from organizations with telephony systems that can be replaced by Teams Phone Mobile to obtain data about projected costs, benefits, and risks.
Designed a composite organization based on characteristics of the interviewees’ organizations.
Constructed a projected financial model representative of the interviews using the New Tech TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewees.
Employed four fundamental elements of New Tech TEI in modeling the investment’s potential 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 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 Teams Phone Mobile.
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.
Consulting Team:
Adi Sarosa
Before adopting Teams Phone Mobile, interviewees’ organizations faced challenging communication environments characterized by frequent call issues and the complexity of managing multiple devices and phone numbers per employee. Employees were often tethered to their desk phones to be productive, which was degraded by poor network quality and dropped calls. The reliance on potential calls and notifications coming in on different devices and to different phone numbers created confusion and inefficiencies, both for the users and the IT management teams responsible for maintaining these systems. The issues arose from using a legacy on-prem solution before transitioning to Teams Phone and Teams Phone Mobile.
The interviewees noted how their organizations struggled with common challenges, including:
Base: 228 respondents from organizations with telephony systems that can be replaced by Teams Phone Mobile
Source: A commissioned study conducted by Forrester Consulting on behalf of Microsoft, October 2024
The interviewees’ organizations searched for a solution that could:
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 seven 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 composite organization is a global enterprise with approximately 8,000 employees, and about 20% are classified as high-mobility, high-connectivity workers (e.g., technical field workers, mobile sales personnel). Prior to using Teams Phone Mobile, the composite organization deployed a fixed line through an on-premises telephony system. The high-mobility, high-connectivity workers also received a corporate-provided mobile phone to take calls while mobile. The organization managed this telephony system with five full-time IT employees.
Deployment characteristics. The composite organization progressively adopts Teams Phone Mobile. It starts with a 20% adoption rate in Year 1, which increases to 35% in Year 2 and to 50% in Year 3. This gradual increase reflects the growing reliance on mobile and unified communication solutions. The remainder of the organization is enabled for Teams Phone through a different PSTN connectivity option.
Projected Benefits | Year 1 | Year 2 | Year 3 | Total | Present Value |
---|---|---|---|---|---|
Total projected benefits (low) | $1,773,796 | $3,967,462 | $7,581,728 | $13,322,986 | $10,587,701 |
Total projected benefits (mid) | $3,309,728 | $6,619,394 | $11,349,660 | $21,278,782 | $17,006,585 |
Total projected benefits (high) | $4,845,660 | $9,271,326 | $15,117,592 | $29,234,578 | $23,425,469 |
Evidence and data. Interviewees shared that using Teams Phone Mobile significantly impacted the productivity of users. This was especially prevalent for users who were often mobile, had to take a lot of business-related phone calls while mobile, and previously had to improvise some way of remaining connected — like using personal devices for business. Interviewees explained that with Teams Phone Mobile, employees gained the ability to stay connected and be productive even while commuting because they can take calls on the go and that they can then seamlessly transition to their desks without any disruption. Additionally, they said features like background noise suppression enhance the quality of phone calls, leading to more effective communication and fewer misunderstandings.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Results. This yields a three-year projected PV ranging from $8.7 million (low) to $19.6 million (high).
Base: 228 respondents from organizations with telephony systems that can be replaced by Teams Phone Mobile
Source: A commissioned study conducted by Forrester on behalf of Microsoft, October 2024
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
---|---|---|---|---|---|---|
A1 | Total employees | Composite | 8,000 | 8,000 | 8,000 | |
A2 | Teams Phone Mobile adoption rate | Composite | 20% | 35% | 50% | |
A3 | Percent of users realizing direct productivity gain from using Teams Phone Mobile | Composite | 20% | 20% | 20% | |
A4Low | 5% | 7% | 10% | |||
A4Mid | Productivity gain | Interviews/survey | 10% | 12% | 15% | |
A4High | 15% | 17% | 20% | |||
A5 | Average fully burdened annual salary for an end user | Composite | $81,000 | $81,000 | $81,000 | |
AtLow | $1,296,000 | $3,175,200 | $6,480,000 | |||
AtMid | End-user productivity | A1*A2*A3*A4*A5 | $2,592,000 | $5,443,200 | $9,720,000 | |
AtHigh | $3,888,000 | $7,711,200 | $12,960,000 | |||
Three-year projected total: $10,951,200 to $24,559,200 | Three-year projected present value: $8,670,834 to $19,644,478 |
Evidence and data. Interviewees shared that by switching their organization’s mobile employees to Teams Phone Mobile, their company was able to get rid of its desk phones and fixed lines connected to on-premises telephony solutions. Since the users gained the ability to make and receive calls using their mobile devices, there’s no need for them to have redundant physical desk phones. This leads to direct cost savings.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Results. This yields a three-year projected PV ranging from $1.6 million (low) to $3.3 million (high).
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
---|---|---|---|---|---|---|
B1 | Users with Teams Phone Mobile | A1*A2 | 1,600 | 2,800 | 4,000 | |
B2 | Cost of on-premises telephony services per user | Composite | $1,200 | $1,200 | $1,200 | |
B3 | Legacy spend impacted by Teams Phone Mobile adoption | B1*B2 | $1,920,000 | $3,360,000 | $4,800,000 | |
B4Low | 20% | 20% | 20% | |||
B4Mid | Percent reduction in annual spend | Interviews/survey | 30% | 30% | 30% | |
B4High | 40% | 40% | 40% | |||
BtLow | $384,000 | $672,000 | $960,000 | |||
BtMid | Savings from retiring on-premises telephony services | B3*B4 | $576,000 | $1,008,000 | $1,440,000 | |
BtHigh | $768,000 | $1,344,000 | $1,920,000 | |||
Three-year projected total: $2,016,000 to $4,032,000 | Three-year projected present value: $1,625,725 to $3,251,450 |
Evidence and data. Interviewees noted that as a direct result of retiring duplicative numbers that users previously had, their organizations significantly enhanced efficiencies for their telephony management teams. This unified approach streamlined tasks such as provisioning, monitoring, and troubleshooting, which allows the team to focus on strategic initiatives rather than routine maintenance. Additionally, interviewees said the management interface is intuitive and the analytics are robust, which provides valuable insights that further optimize the team’s operations and contributes to overall organizational efficiency.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Results. This yields a three-year projected PV ranging from $198,000 (low) to $312,000 (high).
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
---|---|---|---|---|---|---|
C1 | FTEs managing telephony system | Composite | 5 | 5 | 5 | |
C2 | Percent of work directly impacted by Teams Phone Mobile | Survey | 52.5% | 52.5% | 52.5% | |
C3Low | 30% | 35% | 40% | |||
C3Mid | Percent of time savings | Interviews/survey | 40% | 45% | 50% | |
C3High | 50% | 55% | 60% | |||
C4 | Average fully burdened annual salary for an IT administrator | TEI standard | $87,360 | $87,360 | $87,360 | |
CtLow | $68,796 | $80,262 | $91,728 | |||
CtMid | IT efficiencies in managing telephony | C1*C2*C3*C4 | $91,728 | $103,194 | $114,660 | |
CtHigh | $114,660 | $126,126 | $137,592 | |||
Three-year projected total: $240,786 to $378,378 | Three-year projected present value: $197,791 to $311,848 |
Evidence and data. Interviewees told Forrester that using Teams Phone Mobile helped their organizations save on compliance- and security-related costs by providing a platform that meets regulatory requirements and ensures secure communication. Additionally, they said the platform has robust security features that give employees the confidence to work from anywhere because they know their communications are protected. This assurance not only enhances productivity, but also minimizes the risk of compliance breaches, further reducing potential costs.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Results. This yields a three-year projected PV ranging from $93,000 (low) to $218,000 (high).
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
---|---|---|---|---|---|---|
D1 | Spend related to audit, compliance, and governance | Composite | $500,000 | $500,000 | $500,000 | |
D2Low | 5% | 8% | 10% | |||
D2Mid | Percent reduction in spend with Teams Phone Mobile | Survey | 10% | 13% | 15% | |
D2High | 15% | 18% | 20% | |||
DtLow | $25,000 | $40,000 | $50,000 | |||
DtMid | Savings related to security and compliance activities | D1*D2 | $50,000 | $65,000 | $75,000 | |
DtHigh | $75,000 | $90,000 | $100,000 | |||
Three-year projected total: $115,000 to $265,000 | Three-year projected present value: $93,351 to $217,693 |
Interviewees mentioned the following additional benefits that their organizations experienced but were not able to quantify:
The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement Teams Phone Mobile 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).
Base: 43 respondents from organizations with telephony systems that can be replaced by Teams Phone Mobile
Source: A commissioned study conducted by Forrester Consulting on behalf of Microsoft, October 2024
Ref. | Cost | Initial | Year 1 | Year 2 | Year 3 | Total | Present Value |
---|---|---|---|---|---|---|---|
Etr | Licensing costs for Teams Phone Mobile | $0 | $1,209,600 | $2,116,800 | $3,024,000 | $6,350,400 | $5,121,034 |
Ftr | Teams Phone Mobile Setup And User Training | $14,784 | $185 | $185 | $185 | $15,338 | $15,244 |
Gtr | Ongoing management of Teams Phone Mobile | $0 | $38,438 | $38,438 | $38,438 | $115,315 | $95,591 |
Total costs (risk-adjusted) | $14,784 | $1,248,223 | $2,155,423 | $3,062,623 | $6,481,054 | $5,231,869 | |
Evidence and data. Interviewees said implementing Teams Phone Mobile involves costs their organizations need to pay both to Microsoft and their cellular network providers. The cost to Microsoft typically includes a monthly per-user fee for Teams Phone, which includes Teams Phone Mobile. Additionally, interviewees also said their organizations incur costs from their cellular network providers for mobile connectivity, which varies based on the provider and the specific plan chosen.
Pricing may vary. Contact Microsoft for additional details.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. The actual licensing costs an organization will incur will depend 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 $5.1 million.
Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
---|---|---|---|---|---|---|
D1 | Costs to network service provider | Composite | $192,000 | $336,000 | $480,000 | |
D2 | Costs to Microsoft | Microsoft | $960,000 | $1,680,000 | $2,400,000 | |
Dt | Licensing costs for Teams Phone Mobile | D1+D2 | $0 | $1,152,000 | $2,016,000 | $2,880,000 |
Risk adjustment | ↑5% | |||||
Dtr | Licensing costs for Teams Phone Mobile (risk-adjusted) | $0 | $1,209,600 | $2,116,800 | $3,024,000 | |
Three-year total: $6,350,400 | Three-year present value: $5,121,034 |
Evidence and data. Interviewees shared that setting up Teams Phone Mobile requires a coordinated effort from the IT team and a strategic approach to user training. This typically includes a phased rollout starting with a pilot group and continuous evaluation to ensure that areas needing more training and engagement are identified and addressed.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. The actual time investment an organization will incur will depend 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 $15,000.
Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
---|---|---|---|---|---|---|
F1 | FTEs involved | Composite | 4 | 2 | 2 | 2 |
F2 | Implementation time (hours) | Composite | 75 | |||
F3 | Time for user training and enablement (hours) | Composite | 5 | 2 | 2 | 2 |
F4 | Average fully burdened annual salary for a user requiring training and enablement | TEI standard | $42 | $42 | $42 | $42 |
Ft | Teams Phone Mobile Setup and User Training | F1*(F2+F3)*F4 | $13,440 | $168 | $168 | $168 |
Risk adjustment | ↑10% | |||||
Ftr | Teams Phone Mobile Setup and User Training (risk-adjusted) | $14,784 | $185 | $185 | $185 | |
Three-year total: $15,338 | Three-year present value: $15,244 |
Evidence and data. Interviewees said ongoing management of Teams Phone Mobile requires a coordinated effort from the IT team, typically involving a few administrators who dedicate a portion of their time to these activities. This includes regular updates, maintenance, and user support to ensure the system runs smoothly and securely.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. The actual time investment an organization will need to make will depend 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 $96,000.
Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
---|---|---|---|---|---|---|
G1 | FTEs involved | Composite | 0 | 2 | 2 | 2 |
G2 | Percentage of time | Composite | 20% | 20% | 20% | |
G3 | Average fully burdened annual salary for an IT administrator | TEI standard | $87,360 | $87,360 | $87,360 | |
Gt | Ongoing management of Teams Phone Mobile | G1*G2*G3 | $0 | $34,944 | $34,944 | $34,944 |
Risk adjustment | ↑10% | |||||
Gtr | Ongoing management of Teams Phone Mobile (risk-adjusted) | $0 | $38,438 | $38,438 | $38,438 | |
Three-year total: $115,315 | Three-year present value: $95,591 |
The financial results calculated in the Benefits and Costs sections can be used to determine the PROI and projected NPV for the composite organization’s investment. Forrester assumes a yearly discount rate of 10% for this analysis.
These risk-adjusted PROI and projected NPV 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 | ($14,784) | ($1,248,223) | ($2,155,423) | ($3,062,623) | ($6,481,054) | ($5,231,869) |
Total benefits (low) | $0 | $1,773,796 | $3,967,462 | $7,581,728 | $13,322,986 | $10,587,701 |
Total benefits (mid) | $0 | $3,309,728 | $6,619,394 | $11,349,660 | $21,278,782 | $17,006,585 |
Total benefits (high) | $0 | $4,845,660 | $9,271,326 | $15,117,592 | $29,234,578 | $23,425,469 |
Net benefits (low) | ($14,784) | $525,573 | $1,812,039 | $4,519,105 | $6,841,932 | $5,355,832 |
Net benefits (mid) | ($14,784) | $2,061,505 | $4,463,971 | $8,287,037 | $14,797,728 | $11,774,716 |
Net benefits (high) | ($14,784) | $3,597,437 | $7,115,903 | $12,054,969 | $22,753,524 | $18,193,600 |
PROI (low) | 102% | |||||
PROI (mid) | 225% | |||||
PROI (high) | 348% | |||||
New Technology: Projected Total Economic Impact (New Tech TEI) 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 New Tech TEI methodology helps companies demonstrate and justify the projected tangible value of IT initiatives to both senior management and other key business stakeholders.
Projected Benefits represent the projected value to be delivered to the business by the product. The New Tech TEI methodology places equal weight on the measure of projected benefits and the measure of projected costs, allowing for a full examination of the effect of the technology on the entire organization.
Projected Costs consider all expenses necessary to deliver the proposed value, or benefits, of the product. The projected cost category within New Tech 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 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.
Role | Industry | Total Employees | Current Teams Phone Mobile Adoption |
---|---|---|---|
IT director | Healthcare | 2,500 | 250 |
Director of IT | Government | 6,000 | 200 |
Project manager | Government | 3,400 | 140 |
Manager | Telco | 26,000 | 500 |
Consultant | Professional services | <100 | <100 |
Product owner | Manufacturing | 100,000 | 5,000 |
Service manager | Manufacturing | 10,000 | 3,000 |
Survey Demographics
Base: 228 respondents from organizations with telephony systems that can be replaced by Teams Phone Mobile
Note: Percentages may not total 100 because of rounding.
Source: A commissioned study conducted by Forrester Consulting on behalf of Microsoft, October 2024
Related Forrester Research
What Digital Teams Look Like Today, 2023, Forrester Research, Inc., January 18, 2024.
The Unified Communications As A Service Landscape, Q2 2023, Forrester Research, Inc., May 25, 2023.
1 Source: Consumer Insights: US Technology Usage, 2024, Forrester Research, Inc., Nov 22, 2024.
2 Source: Sharyn Leaver, Predictions 2025: Hard-Won Insights Drive Growth, Forrester Blogs.
3 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.
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