A Forrester Total Economic Impact™ Study Commissioned By Netskope, October 2024
As modern enterprises shift to the cloud, they must secure access to corporate applications while protecting users and apps from the malicious internet. To do so, networking and security professionals are implementing security service edge (SSE) solutions in growing numbers instead of traditional secure web gateways, firewalls, and VPNs. SSE solutions inspect egress traffic from remote users, buildings, vehicles, or similar remote edge locations, allowing firms to provide Zero Trust access to the web, software-as-a-service (SaaS), infrastructure-as-a-service (IaaS), and public-facing enterprise apps, as well as private applications and resources to ensure data loss prevention and threat protection for any user, device, or location.1
The Netskope One platform features a comprehensive, converged SSE solution that enables organizations with hybrid cloud environments to consolidate and secure access to the web, cloud services, and private apps from any location. The Netskope One platform for SSE offers remote workers secure web and cloud access while allowing network and security teams to enact data loss prevention controls; protect, detect, and mitigate threats; and enforce corporate policies, compliance regulations, and best practices. Unique to Netskope is the NewEdge private network, which allows Netskope to optimize application traffic across and through multiple security services. NewEdge helps reduce the performance issues often encountered with SaaS-based security solutions.
Netskope commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying Netskope SSE.2 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of Netskope SSE on their organizations.
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed four representatives with experience using Netskope SSE. For the purposes of this study, Forrester aggregated the interviewees’ experiences and combined the results into a single composite organization that is a multibillion-dollar firm with 60,000 employees (full-time equivalents [FTEs]) worldwide, half of whom require remote access to private corporate apps.
has an annual revenue of , employs network and security operations professionals, and employees require SSE protection. Custom results are based on user inputs and the TEI case study.
Interviewees said that prior to using Netskope SSE, their organizations faced significant challenges as a result of their outdated and inadequate legacy networking and security environments, including major data breaches marked by data loss. Regular issues with latency and network performance impacted the availability of critical customer- and user-facing apps. Interviewees lamented that these network outages and degradations caused revenue loss as well as unplanned employee downtime — dual blows to their organizations’ profitability. Networking and security staff productivity was impeded by outages, long lists of standing issues, and large volumes of troubleshooting tickets from disgruntled remote workers.
After the investment in Netskope SSE, the interviewees’ organizations were able to consolidate network security infrastructure, decommissioning legacy data centers, physical equipment, and hardware in the process and enabling internal and external labor savings on vendor management, support, and equipment maintenance. Interviewees also highlighted other key results from the investment: They streamlined operations for general networking efforts as well as those related to merger and acquisitions activity; saw an increase in security operations effectiveness; reduced the risk of malware infection, data exfiltration, and other threats; saw improved visibility into, better context for, and stronger security controls to block risky user behavior; and made measurable reductions in security incident volumes and average resolution times.
Quantified benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:
For , this benefit might be worth over three years.
For , this benefit might be worth over three years.
For , this benefit might be worth over three years.
For , this benefit might be worth over three years.
For , this benefit might be worth over three years.
For , this benefit might be worth over three years.
For , this benefit might be worth over three years.
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:
For , these costs could represent over three years.
For , these costs could represent over three years.
For , these costs could represent over three years.
The representative interviews and financial analysis found that a composite organization experiences benefits of $14.48 million over three years versus costs of $6.93 million, adding up to a net present value (NPV) of $7.55 million and an ROI of 109%.
might experience benefits of over three years versus costs of , adding up to an NPV of and an ROI of 0%.
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 Netskope SSE.
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 Netskope SSE can have on an organization.
Interviewed Netskope stakeholders and Forrester analysts to gather data relative to SSE.
Interviewed four representatives at organizations using Netskope SSE 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 Netskope 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 Netskope SSE. For the interactive functionality using Configure Data/Custom Data, 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 Netskope SSE based on the inputs provided and any assumptions made. Forrester does not endorse Netskope or its offerings. Although great care has been taken to ensure the accuracy and completeness of this model, Netskope 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 Netskope make no warranties of any kind.
Netskope 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.
Netskope provided the customer names for the interviews but did not participate in the interviews. The scope of the cybersecurity practice within Forrester is founded in industry knowledge and survey information from global organizations, updated on an annual basis. Further information is available from Forrester Decisions for Security & Risk or a Forrester analyst.
Consulting Team:
Courtenay O’Connor
Marianne Friis
Role | Industry | Revenue | Number of sites |
---|---|---|---|
Senior enterprise architecture manager | Advertising | $10B+ | 380 |
Vice president (VP) of digital experience | Financial services | $5B+ | 3 |
Head of security engineering | Hospitality | $20B+ | 9,000 |
Vice president (VP) of infrastructure | Technology | $500M+ | 1 |
Interviewees discussed their organizations’ inability to leverage legacy network security infrastructure in support of business goals. Prior solutions were not fit for purpose, often resulting in errors, outages, and even breaches as well as wasted spend and costly rework to address these deficiencies. Interviewees offered further insight into their organizations’ challenges, such as:
The interviewees’ organizations searched for a solution that could address the many challenges that their prior network security stacks posed. They discussed their organizations’ processes for evaluating multiple vendors during the proof-of-value phase. Interviewees highlighted Netskope’s strength in demonstrating platform capabilities while delivering well-grounded and insightful business value assessments through Valueskope and the Netskope Business Value Services team.
Interviewees talked about their organizations’ Netskope SSE deployment objectives, including how they wanted to:
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 multibillion-dollar organization is headquartered in North America with global operations; it is supported by 60,000 employees; and it plans to acquire and incorporate nine new companies over three years. The composite aims to improve the profitability of these efforts by mitigating the internal labor needed to securely absorb new companies.
In the prior technology environment, the composite experiences frequent network outages, severe performance degradations, and high latencies with cumbersome procedures to secure remote work. These problems often disrupt financial transactions and internal workflows, causing revenue leakage and costly employee downtime. These recurring issues plague the composite’s 30 networking and security FTEs and bog down its IT support teams.
Suffering from a lack of visibility into its technology stack and distracted by recurring issues, the composite organization suffers a severe data breach caused by an external attack. As a result, the composite experiences data exfiltration, regulatory and customer impacts, as well as considerable damage to the composite organization’s brand.
has an annual revenue of , employs network and security operations professionals, and employees require SSE protection.
Deployment characteristics. Post-breach, authorities require the composite to secure and consolidate its extensive networking footprint, prompting a rip-and-replace transformation of the organization’s technology infrastructure. It replaces legacy communications hubs and other physical hardware with Netskope SSE. In Year 1, 25% of the composite organization’s users are supported by Netskope SSE; that rises to 75% in Year 2 and 90% in Year 3.
As for the composite organization, it is assumed here that in Year 1, 25% of ’s users are supported by Netskope SSE; that rises to 75% in Year 2 and 90% in Year 3.
The following table shows custom results for .
Ref. | Benefit | Year 1 | Year 2 | Year 3 | Total | Present Value |
---|---|---|---|---|---|---|
Atr | Consolidated network security infrastructure | $884,466 $884,466 | $2,653,398 $2,653,398 | $3,184,078 $3,184,078 | $6,721,942 $6,721,942 | $5,389,196 $5,389,196 |
Btr | Improved availability | $394,440 $394,440 | $1,183,321 $1,183,321 | $1,402,455 $1,402,455 | $2,980,216 $2,980,216 | $2,390,218 $2,390,218 |
Ctr | Increased network and security operations effectiveness | $245,025 $245,025 | $735,075 $735,075 | $882,090 $882,090 | $1,862,190 $1,862,190 | $1,492,977 $1,492,977 |
Dtr | Avoided costs of a material breach | $331,118 $331,118 | $993,354 $993,354 | $1,192,025 $1,192,025 | $2,516,497 $2,516,497 | $2,017,556 $2,017,556 |
Etr | Streamlined remote experience | $154,688 $154,688 | $464,063 $464,063 | $556,875 $556,875 | $1,175,626 $1,175,626 | $942,537 $942,537 |
Ftr | Accelerated time to value for mergers and acquisitions | $130,500 $130,500 | $587,250 $587,250 | $939,600 $939,600 | $1,657,350 $1,657,350 | $1,309,902 $1,309,902 |
Gtr | IT help desk optimization | $295,704 $295,704 | $407,592 $407,592 | $441,158 $441,158 | $1,144,454 $1,144,454 | $937,124 $937,124 |
Total benefits (risk-adjusted) | $2,435,942 $2,435,942 | $7,024,053 $7,024,053 | $8,598,280 $8,598,280 | $18,058,275 $18,058,275 | $14,479,510 $14,479,510 | |
Evidence and data. As part of the multiyear shift to a Netskope SSE environment, interviewees discussed how their organizations were able to retire global communications hubs and associated security devices. This resulted in significant reductions in their organizations’ IT capex spending; it also lowered opex spending by limiting the level of internal expertise needed to maintain their legacy infrastructure. Interviewees detailed cost savings related to:
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. Forrester recognizes that these results may not be representative of all experiences. The following factors may impact this benefit:
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 $5.4 million.
For , this benefit may have a three-year, risk-adjusted total PV of .
The following table shows custom results for .
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
---|---|---|---|---|---|---|
A1 | Total revenue in the prior environment | CompositeComposite | $12,500,000,000 $12,500,000,000 | $12,500,000,000 $12,500,000,000 | $12,500,000,000 $12,500,000,000 | |
A2 | Percentage of revenue spent on networking in the prior environment | Interviews | 0.3%0.3% | 0.3%0.3% | 0.3%0.3% | |
A3 | Reduction in networking costs with Netskope SSE | Interviews | 10%10% | 10%10% | 10%10% | |
A4 | Percentage of users supported by Netskope SSE | CompositeTEI case study | 25%25% | 75%75% | 90%90% | |
A5 | Subtotal: Avoided legacy hardware infrastructure costs | A1*A2*A3*A4 | $937,500 $937,500 | $2,812,500 $2,812,500 | $3,375,000 $3,375,000 | |
A6 | Avoided hours of internal labor to maintain legacy infrastructure | Interviews | 3,1203,120 | 3,1203,120 | 3,1203,120 | |
A7 | Fully burdened hourly rate for a network and security operations FTE | CompositeTEI case study | $58 $58 | $58 $58 | $58 $58 | |
A8 | Subtotal: Avoided internal labor costs to maintain legacy infrastructure | A4*A6*A7 | $45,240 $45,240 | $135,720 $135,720 | $162,864 $162,864 | |
At | Consolidated network security infrastructure | A5+A8 | $982,740 $982,740 | $2,948,220 $2,948,220 | $3,537,864 $3,537,864 | |
Risk adjustment | ↓10% | |||||
Atr | Consolidated network security infrastructure (risk-adjusted) | $884,466 $884,466 | $2,653,398 $2,653,398 | $3,184,078 $3,184,078 | ||
Three-year total: $6,721,942 $6,721,942 | Three-year present value: $5,389,196 $5,389,196 |
Evidence and data. Interviewees reported that their organizations increasingly benefited from improved network performance and availability as more of their users were onboarded to Netskope SSE. This meant that revenue-generating systems were more readily available to customers, enhancing profit retention compared with their prior environments. Better uptime also ensured the availability of critical systems that internal end users relied on to be productive in their work. Interviewees described how Netskope SSE helped their organizations:
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. Forrester recognizes that these results may not be representative of all experiences. The following factors may impact this benefit:
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 $2.4 million.
For , this benefit may have a three-year, risk-adjusted total PV of .
The following table shows custom results for .
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | ||
---|---|---|---|---|---|---|---|
B1 | Average hours of downtime network outages or severe performance degradation in the prior environment | CompositeTEI case study | 2424 | 2424 | 2424 | ||
B2 | Reduced unplanned downtime and system performance attributable to Netskope SSE | Interviews | 15%15% | 15%15% | 15%15% | ||
B3 | Percentage of users automated with Netskope SSE | CompositeA4 | 25%25% | 75%75% | 90%90% | ||
B4 | Total avoided hours of unplanned downtime in the Netskope SSE environment | B1*B2*B3 | 0.90.9 | 2.72.7 | 3.23.2 | ||
B5 | Average revenue at risk per hour of unplanned downtime | Total revenue/ hours in a year (8760) | $1,426,941 $1,426,941 | $1,426,941 $1,426,941 | $1,426,941 $1,426,941 | ||
B6 | Operating margin | CompositeComposite | 11%11% | 11%11% | 11%11% | ||
B7 | Subtotal: avoided lost profit from improved availability | B4*B5*B6 | $141,267 $141,267 | $423,801 $423,801 | $502,283 $502,283 | ||
B8 | Total FTEs | CompositeComposite | 60,00060,000 | 60,00060,000 | 60,00060,000 | ||
B9 | Percentage of FTEs impacted by unplanned downtime in the prior environment | Interviews | 50%50% | 50%50% | 50%50% | ||
B10 | Fully burdened hourly rate for an end user (average) | CompositeTEI case study | $44 $44 | $44 $44 | $44 $44 | ||
B11 | Productivity recapture | Assumption | 25%25% | 25%25% | 25%25% | ||
B12 | Subtotal: avoided unplanned end-user downtime from improved availability | B4*B8*B9*B10*B11 | $297,000 $297,000 | $891,000 $891,000 | $1,056,000 $1,056,000 | ||
Bt | Improved availability | B7+B12 | $438,267 $438,267 | $1,314,801 $1,314,801 | $1,558,283 $1,558,283 | ||
Risk adjustment | ↓10% | ||||||
Btr | Improved availability (risk-adjusted) | $394,440 $394,440 | $1,183,321 $1,183,321 | $1,402,455 $1,402,455 | |||
Three-year total: $2,980,216 $2,980,216 | Three-year present value: $2,390,218 $2,390,218 |
Evidence and data. Shifting to Netskope SSE allowed interviewees’ organizations to automate and even avoid processes they formerly needed to maintain secure and effective infrastructure. In general, interviewees described a more streamlined operational environment that needed fewer resources for proactive environment management and reactive incident resolution.
Interviewees also detailed several ways in which Netskope SSE’s capabilities and automated workflows contributed to:
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. Forrester recognizes that these results may not be representative of all experiences. The following factors may impact this benefit:
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 $1.5 million.
For , this benefit may have a three-year, risk-adjusted total PV of .
The following table shows custom results for .
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
---|---|---|---|---|---|
C1 | Total network and security operations FTEs | CompositeComposite | 3030 | 3030 | 3030 |
C2 | Increased network and security operations effectiveness in the Netskope SSE environment | Interviews | 30%30% | 30%30% | 30%30% |
C3 | Percentage of users supported by Netskope SSE | CompositeA4 | 25%25% | 75%75% | 90%90% |
C4 | Fully burdened annual salary for a network and security operations FTE | CompositeTEI case study | $121,000 $121,000 | $121,000 $121,000 | $121,000 $121,000 |
Ct | Increased network and security operations effectiveness | C1*C2*C3*C4 | $272,250 $272,250 | $816,750 $816,750 | $980,100 $980,100 |
Risk adjustment | ↓10% | ||||
Ctr | Increased network and security operations effectiveness (risk-adjusted) | $245,025 $245,025 | $735,075 $735,075 | $882,090 $882,090 | |
Three-year total: $1,862,190 $1,862,190 | Three-year present value: $1,492,977 $1,492,977 |
Evidence and data. Three of the four interviewees discussed external and identity-based attacks on their organizations in their prior environments. These attacks resulted in material data breaches, causing significant, cascading damages to their organizations and prompting their investments in Netskope SSE. Interviewees listed several areas in which Netskope SSE helped reduce their risk exposure and avoid breach-related costs, including:
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. Forrester recognizes that these results may not be representative of all experiences. The following factors may impact this benefit:
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 $2.0 million.
For , this benefit may have a three-year, risk-adjusted total PV of .
The following table shows custom results for .
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
---|---|---|---|---|---|
D1 | Likelihood of experiencing one or more breaches per year | Forrester Research | 86%86% | 86%86% | 86%86% |
D2 | Mean cumulative cost of breaches | Forrester Research | $6,603,000 $6,603,000 | $6,603,000 $6,603,000 | $6,603,000 $6,603,000 |
D3 | Percentage of breaches originating from external attacks | Forrester Research | 49%49% | 49%49% | 49%49% |
D4 | Percentage of breaches addressable with Netskope SSE | Forrester Research | 70%70% | 70%70% | 70%70% |
D5 | Annual risk exposure addressable with Netskope SSE | D1*D2*D3*D4 | $1,947,753 $1,947,753 | $1,947,753 $1,947,753 | $1,947,753 $1,947,753 |
D6 | Reduced risk of breaches with Netskope SSE | Interviews | 80%80% | 80%80% | 80%80% |
D7 | Percentage of users supported by Netskope SSE | A4 | 25%25% | 75%75% | 90%90% |
Dt | Avoided costs of a material breach | D5*D6*D7 | $389,551 $389,551 | $1,168,652 $1,168,652 | $1,402,382 $1,402,382 |
Risk adjustment | ↓15% | ||||
Dtr | Avoided costs of a material breach (risk-adjusted) | $331,118 $331,118 | $993,354 $993,354 | $1,192,025 $1,192,025 | |
Three-year total: $2,516,497 $2,516,497 | Three-year present value: $2,017,556 $2,017,556 |
Evidence and data. Interviewees reported that the Netskope SSE environment allowed their organizations to eliminate inefficient security procedures while reducing latency-induced friction. This helped them achieve various benefits, including:
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. Forrester recognizes that these results may not be representative of all experiences. The following factors may impact this benefit:
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 $943,000.
For , this benefit may have a three-year, risk-adjusted total PV of .
The following table shows custom results for .
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
---|---|---|---|---|---|
E1 | Number of end users accessing services remotely | CompositeComposite | 30,00030,000 | 30,00030,000 | 30,00030,000 |
E2 | Total annual minutes per end user to access services remotely | Interviews (1 minute per FTE per workday) | 250250 | 250250 | 250250 |
E3 | Total hours end users spend accessing services remotely per year in prior environment | (E1*E2)/60 | 125,000125,000 | 125,000125,000 | 125,000125,000 |
E4 | Reduction in time for end users to access services remotely with Netskope | Interviews | 50%50% | 50%50% | 50%50% |
E5 | End-user productivity capture | CompositeTEI case study | 25%25% | 25%25% | 25%25% |
E6 | Fully burdened hourly rate for an end user (average) | B10 | $44 $44 | $44 $44 | $44 $44 |
E7 | Percentage of users supported by Netskope SSE | A4 | 25%25% | 75%75% | 90%90% |
Et | Streamlined remote experience | E3*E4*E5*E6*E7 | $171,875 $171,875 | $515,625 $515,625 | $618,750 $618,750 |
Risk adjustment | ↓10% | ||||
Etr | Streamlined remote experience (risk-adjusted) | $154,688 $154,688 | $464,063 $464,063 | $556,875 $556,875 | |
Three-year total: $1,175,626 $1,175,626 | Three-year present value: $942,537 $942,537 |
Evidence and data. Interviewees shared how Netskope SSE helped their organizations reduce costly efforts surrounding merger and acquisition (M&A) workflows by:
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. Forrester recognizes that these results may not be representative of all experiences. The following factors may impact this benefit:
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 $1.3 million.
For , this benefit may have a three-year, risk-adjusted total PV of .
The following table shows custom results for .
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
---|---|---|---|---|---|
F1 | Number of new companies acquired and merged with the parent company per year | CompositeScaled for | 22 | 33 | 44 |
F2 | Average hours to onboard an acquired company in the prior environment | Interviews | 10,00010,000 | 10,00010,000 | 10,00010,000 |
F3 | Percentage reduction in hours to onboard a new company to corporate services with Netskope | Interviews | 50%50% | 50%50% | 50%50% |
F4 | Percentage of users supported by Netskope SSE | A4 | 25%25% | 75%75% | 90%90% |
F5 | Total avoided hours to onboard a new company to corporate services in the Netskope SSE environment | F1*F2*F3*F4 | 2,5002,500 | 11,25011,250 | 18,00018,000 |
F6 | Fully burdened hourly rate of a network and security operations FTE | CompositeTEI case study | $58 $58 | $58 $58 | $58 $58 |
Ft | Accelerated time to value for mergers and acquisitions | F5*F6 | $145,000 $145,000 | $652,500 $652,500 | $1,044,000 $1,044,000 |
Risk adjustment | ↓10% | ||||
Ftr | Accelerated time to value for mergers and acquisitions (risk-adjusted) | $130,500 $130,500 | $587,250 $587,250 | $939,600 $939,600 | |
Three-year total: $1,657,350 $1,657,350 | Three-year present value: $1,309,902 $1,309,902 |
Evidence and data. Interviewees discussed how Netskope SSE helped improve network performance and availability as well as decrease the number of failure points in their infrastructure. At the same time, the remote employee experience vastly improved, requiring less end-user effort and resulting in fewer troubleshooting issues. With Netskope SSE, the interviewees said that their organizations were able to:
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. Forrester recognizes that these results may not be representative of all experiences. The following factors may impact this benefit:
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 $937,000.
For , this benefit may have a three-year, risk-adjusted total PV of .
The following table shows custom results for .
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
---|---|---|---|---|---|
G1 | Total IT support tickets related to SSE in the prior environment | InterviewsScaled for | 24,00024,000 | 24,00024,000 | 24,00024,000 |
G2 | Percentage reduction in IT support tickets with Netskope SSE | Interviews | 80%80% | 80%80% | 80%80% |
G3 | Percentage of users supported by Netskope SSE | A4 | 25%25% | 75%75% | 90%90% |
G4 | Total IT support tickets related to remote user access avoided with Netskope SSE | G1*G2*G3 | 4,8004,800 | 14,40014,400 | 17,28017,280 |
G5 | Average hours to resolve IT support tickets related to remote user access in the prior environment | Interviews | 0.50.5 | 0.50.5 | 0.50.5 |
G6 | Subtotal: Hours of avoided IT support due to reduced ticket volume with Netskope SSE | G4*G5 | 2,4002,400 | 7,2007,200 | 8,6408,640 |
G7 | Total IT support tickets remaining in the Netskope SSE environment | G1-G6 | 21,60021,600 | 16,80016,800 | 15,36015,360 |
G8 | Percentage reduction in time to resolve IT support tickets related to remote user access with Netskope SSE | Interviews | 60%60% | 60%60% | 60%60% |
G9 | Subtotal: Hours of avoided IT support due to reduced time to resolve IT support tickets with Netskope SSE | G5*G7*G8 | 6,4806,480 | 5,0405,040 | 4,6084,608 |
G10 | Fully burdened hourly rate for an IT support technician | CompositeTEI case study | $37 $37 | $37 $37 | $37 $37 |
Gt | IT help desk optimization | (G6+G9)*G10 | $328,560 $328,560 | $452,880 $452,880 | $490,176 $490,176 |
Risk adjustment | ↓10% | ||||
Gtr | IT help desk optimization (risk-adjusted) | $295,704 $295,704 | $407,592 $407,592 | $441,158 $441,158 | |
Three-year total: $1,144,454 $1,144,454 | Three-year present value: $937,124 $937,124 |
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 Netskope SSE 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).
The following table shows custom results for .
Ref. | Cost | Initial | Year 1 | Year 2 | Year 3 | Total | Present Value |
---|---|---|---|---|---|---|---|
Htr | Netskope SSE licensing | $0 $0 | $1,102,500 $1,102,500 | $3,307,500 $3,307,500 | $3,969,000 $3,969,000 | $8,379,000 $8,379,000 | $6,717,712 $6,717,712 |
Itr | Implementation and training | $134,746 $134,746 | $22,968 $22,968 | $7,656 $7,656 | $7,656 $7,656 | $173,026 $173,026 | $167,705 $167,705 |
Jtr | Platform management | $0 $0 | $7,125 $7,125 | $21,376 $21,376 | $25,651 $25,651 | $54,152 $54,152 | $43,416 $43,416 |
Total costs (risk-adjusted) | $134,746 $134,746 | $1,132,593 $1,132,593 | $3,336,532 $3,336,532 | $4,002,307 $4,002,307 | $8,606,178 $8,606,178 | $6,928,833 $6,928,833 | |
Evidence and data. The interviewees discussed their organizations’ respective Netskope SSE licensing components. Most of the interviewees’ organizations routed a majority, if not all, of their users through the Netskope SSE environment. Licensing costs ramped up as interviewees’ organizations onboarded more users in keeping with organic growth. While all included premium support in their packages, interviewees described how their organizations’ specific use cases for Netskope SSE phased in some combination of the following solutions over a multiyear period:
When reflecting on the overall value of their Netskope SSE solutions, the VP of infrastructure in the technology industry underscored the value that Netskope SSE brought to their organization: “We have it all [and] I would buy it again. I would have bought it earlier if I could.”
Modeling and assumptions. The composite selects the Netskope SSE-PA Enterprise Package inclusive of ZTNA private access with advanced capabilities for DLP, threat protection, UEBA, and analytics. The composite also deploys dedicated egress IP addresses, remote browser isolation, FWaaS, digital experience management, and CASB API Enterprise for one or more managed SaaS apps.
Licensing covers 25% of the organization’s users in Year 1 and increases to support 75% of users in Year 2 and 90% by the end of Year 3. This adoption curve also includes the total number of apps and serves as a cost driver for the composite’s enterprise package licensing; it also includes Premium Plus Support, which the composite purchases in all three years of the investment.
Risks. Forrester recognizes that these results may not be representative of all experiences. The following factors may impact this cost.
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 $6.7 million.
For , these costs may have a three-year, risk-adjusted total PV of . Please note that these licensing costs are based on high-level estimates and do not constitute a quote.
The following table shows custom results for .
Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
---|---|---|---|---|---|---|
H1 | Netskope SSE subscription and support licensing | CompositeScaled for | $0 $0 | $1,050,000 $1,050,000 | $3,150,000 $3,150,000 | $3,780,000 $3,780,000 |
Ht | Netskope SSE licensing | H1 | $0 $0 | $1,050,000 $1,050,000 | $3,150,000 $3,150,000 | $3,780,000 $3,780,000 |
Risk adjustment | ↑5% | |||||
Htr | Netskope SSE licensing (risk-adjusted) | $0 $0 | $1,102,500 $1,102,500 | $3,307,500 $3,307,500 | $3,969,000 $3,969,000 | |
Three-year total: $8,379,000 $8,379,000 | Three-year present value: $6,717,712 $6,717,712 |
Evidence and data. Interviewees offered insight into the various stages of their organizations’ Netskope SSE implementations, which included:
Modeling and assumptions. The composite organization experiences the following implementation and training costs:
Risks. Forrester recognizes that these results may not be representative of all experiences. The following factors may impact this cost:
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 $168,000.
For , these costs may have a three-year, risk-adjusted total PV of .
The following table shows custom results for .
Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
---|---|---|---|---|---|---|
I1 | Total resources dedicated to the implementation effort | InterviewsScaled for | 66 | 00 | 00 | 00 |
I2 | Average hours of implementation effort per resource | Interviews | 312312 | 00 | 00 | 00 |
I3 | Fully burdened hourly rate for an implementation resource | CompositeTEI case study | $58 $58 | $58 $58 | $58 $58 | $58 $58 |
I4 | Subtotal: Implementation | I1*I2*I3 | $108,576 $108,576 | $0 $0 | $0 $0 | $0 $0 |
I5 | Cumulative number of resources trained on Netskope | InterviewsScaled for | 1515 | 3030 | 3030 | 3030 |
I6 | Number of new trainees | I5-I5(PV) | 1515 | 1515 | 00 | 00 |
I7 | Training hours for a new user | Interviews | 1616 | 1616 | 1616 | 1616 |
I8 | Annual ongoing training | Interviews | 00 | 44 | 44 | 44 |
I9 | Subtotal: Training | ((I6*I7)+(I5*I8))*I3 | $13,920 $13,920 | $20,880 $20,880 | $6,960 $6,960 | $6,960 $6,960 |
It | Implementation and training | I4+I9 | $122,496 $122,496 | $20,880 $20,880 | $6,960 $6,960 | $6,960 $6,960 |
Risk adjustment | ↑10% | |||||
Itr | Implementation and training (risk-adjusted) | $134,746 $134,746 | $22,968 $22,968 | $7,656 $7,656 | $7,656 $7,656 | |
Three-year total: $173,026 $173,026 | Three-year present value: $167,705 $167,705 |
Evidence and data. Compared with their prior legacy networking environments, interviewees indicated that Netskope SSE platform management took a smaller portion of their organizations’ ongoing focus. They shared how their organizations administered the solution, with activities including standing internal scrums, regular roadmap meetings with Netskope, and ongoing policy calibration.
Modeling and assumptions. The composite organization experiences the following platform management costs:
Risks. Forrester recognizes that these results may not be representative of all experiences. The following factors may impact this cost:
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 $43,000.
For , these costs may have a three-year, risk-adjusted total PV of .
The following table shows custom results for .
Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
---|---|---|---|---|---|---|
J1 | Total resources dedicated to maintaining Netskope | InterviewsScaled for | 00 | 33 | 33 | 33 |
J2 | Annual hours per resource dedicated to maintaining Netskope | Interviews | 00 | 156156 | 156156 | 156156 |
J3 | Blended fully burdened hourly rate for a network and security operations resource | CompositeTEI case study | $58 $58 | $58 $58 | $58 $58 | $58 $58 |
J4 | Percentage of users supported by Netskope SSE | CompositeA4 | 0%0% | 25%25% | 75%75% | 90%90% |
Jt | Platform management | J1*J2*J3*J4 | $0 $0 | $6,786 $6,786 | $20,358 $20,358 | $24,430 $24,430 |
Risk adjustment | ↑5% | |||||
Jtr | Platform management (risk-adjusted) | $0 $0 | $7,125 $7,125 | $21,376 $21,376 | $25,651 $25,651 | |
Three-year total: $54,152 $54,152 | Three-year present value: $43,416 $43,416 |
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.
The following table shows custom results for .
Initial | Year 1 | Year 2 | Year 3 | Total | Present Value | |
---|---|---|---|---|---|---|
Total costs | ($134,746)($134,746) | ($1,132,593)($1,132,593) | ($3,336,532)($3,336,532) | ($4,002,307)($4,002,307) | ($8,606,178)($8,606,178) | ($6,928,833)($6,928,833) |
Total benefits | $0 $0 | $2,435,942 $2,435,942 | $7,024,053 $7,024,053 | $8,598,280 $8,598,280 | $18,058,275 $18,058,275 | $14,479,510 $14,479,510 |
Net benefits | ($134,746)($134,746) | $1,303,348 $1,303,348 | $3,687,521 $3,687,521 | $4,595,973 $4,595,973 | $9,452,097 $9,452,097 | $7,550,677 $7,550,677 |
ROI | 109%109% | |||||
Payback | <6 months<6 months | |||||
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 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 Security Service Edge Solutions Landscape, Q4 2023, Forrester Research, Inc., December 5, 2023.
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.
3 Source: Forrester Research, Inc. Forrester annually assesses cybersecurity metrics through interviews, surveys, and expertise in the field. Analyses are provided with information rooted with specific data sets most accurately applied to the situations that have been collected in the study.
4 Build Your Sustainable Cloud To Lower Emissions And Meet Your Sustainability Goals, Forrester Research, Inc., August 23, 2024
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