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Total Economic Impact
Cost Savings And Business Benefits Enabled By Verizon Calling Solutions For Microsoft Teams
A FORRESTER TOTAL ECONOMIC IMPACT STUDY COMMISSIONED BY Verizon, November 2025
Total Economic Impact
A FORRESTER TOTAL ECONOMIC IMPACT STUDY COMMISSIONED BY Verizon, November 2025
Enterprises are finally delivering a unified collaboration experience for employees by blending phone, mobile, and a cloud-based collaboration platform. In addition to enabling both internal and external voice calls, these services allow organizations to consolidate multiple telephony systems, simplify IT management, reduce costs, reduce the disruptions and performance issues associated with legacy telephone solutions, and improve employee productivity, especially for mobile and remote workers.
Verizon Calling Solutions for Microsoft Teams provides three services for a variety of telephony options with Microsoft Teams. The Verizon Mobile for Microsoft Teams (VMMT) service allows a Verizon wireless number to work across all Teams endpoints (cell phone, tablet, laptop), includes Verizon’s voice quality, and centralizes administration. The Verizon VoIP for Operator Connect (VVOC) service provides telephony capabilities via Teams, simplifying administration and removing the need for on-premises equipment and expensive telephony lines. The Verizon Calling with Microsoft Teams (VCMT) service provides a similar offering to VVOC for the Microsoft Direct connect plan, solving complex problems like integrating with call centers, legacy phone equipment, and third-party Session Initiation Protocol (SIP) providers, which expand connectivity to over 110 countries.
Verizon commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying Verizon Calling Solutions for Microsoft Teams.1 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of Verizon Calling Solutions for Microsoft Teams on their organizations.
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed four decision-makers with experience using Verizon Calling Solutions for Microsoft Teams. For the purposes of this study, Forrester aggregated the experiences of the interviewees and combined the results into a single composite organization, which is a US-based global corporation with 65 sites around the world and 5,500 employees.
Interviewees said that prior to using Verizon Calling Solutions for Microsoft Teams, their organizations had fractured telephony solutions that cost a large amount of money, had persistent performance issues, and weren’t effective at meeting the needs of their organizations’ growing remote and mobile workforces. Historically, efforts to save money or improve phone service typically made only incremental improvements that weren’t fully adopted because of resistance to change combined with an inability to completely retire the existing, expensive telephony infrastructure.
After the investment in Verizon Calling Solutions for Microsoft Teams, interviewees shared that their organizations have reduced telephony costs while improving the employee experience. Telephony teams have a single solution with strong visualization, easy-to-use administration, and no major disruptions or performance issues as well as a partnership with Verizon that helps interviewees continue to meet their organization’s telephony needs. Key results from the investment include significant savings from eliminating legacy phone systems and telephony lines, providing a reliable, disruption-free voice service, and improving the calling experience for remote and mobile workers.
Quantified benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:
Eliminating a legacy phone system costing $6.2 million. By transitioning to Verizon’s three Teams services, the composite organization retires the legacy phone system supporting the 65 global sites and 5,500 phone numbers. This includes telephone private branch exchanges (PBXs), desktop phones, and in-building wiring as well as associated software licenses and administrative labor.
Telephony line savings of $3.5 million. The composite organization ensures redundancy, reliability, and performance while eliminating legacy telephony lines across the 65 global sites and porting existing phone numbers to the new solution. It usually requires only internet circuits to provide connectivity to the 65 sites with the new telephony solution.
Administrative and technical staff labor savings of $930,000. The composite organization realizes labor savings of 50% through operational efficiencies and reducing the recovery time from disruptions and performance issues with the legacy telephony solutions.
Employee time savings due to the elimination of phone-related disruptions worth $438,000. The new services eliminate the phone service disruptions that were common with the legacy telephony system.
Unquantified benefits. Benefits that provide value for the composite organization but are not quantified for this study include:
Improved employee satisfaction. The composite organization sees an improvement in employees’ satisfaction due to improved service reliability as well as new features that help them do their jobs more efficiently, which can help them achieve a better work/life balance.
Consistent customer experiences. The composite organization sees an improvement in customer experience, with quicker, more reliable customer service and reduced confusion when employee email signatures and contact details have a single phone number.
More centralization and control. The composite organization now has a centralized solution with proper controls, rather than multiple carriers and telephony systems.
An expanded scope of services. Interviewees noted broad support coverage hours and new functionality that they previously met by buying third-party solutions. These details were not included in initial requirements discussions but were included in the Verizon services.
Enhanced call quality and reliability. The new services provide the composite organization with better call quality and more reliable connections, eliminating disruptions and associated recovery efforts.
Meeting policies and regulations. The composite organization now meets policy and regulation requirements, including HIPAA, security, and E911 requirements.
A strong partnership and valuable support. The composite organization sees strong customer service and support from Verizon during the implementation and on an ongoing basis.
Costs. Three-year, risk-adjusted PV costs for the composite organization include:
VVOC, VCMT, and VMMT licensing costs of $3.5 million. The composite organization ports 5,000 employees to the three Verizon Calling Solutions for Microsoft Teams, including a Microsoft E3 Teams phone license per user and Teams licenses for individuals without a Teams license.
Implementation cost of $208,000. The composite organization completes the porting and legacy phone system shutdown with minimal travel and in less time than expected. Training is minimal because most users already know how to use Teams.
The financial analysis that is based on the interviews found that a composite organization experiences benefits of $11.1 million over three years versus costs of $3.7 million, adding up to a net present value (NPV) of $7.3 million and an ROI of 197%.
Return on investment (ROI)
Benefits PV
Net present value (NPV)
Payback
| Role | Industry | Region | Number of employees |
|---|---|---|---|
| IT director | Healthcare | United States | 2,500 |
| Project manager | Government | United States: county | 3,400 |
| Director of IT | Government | United States: city | 6,000 |
| Global IT service architect | Technology | Global | 50,000 |
Interviewees shared common challenges related to their legacy telephony environments. Cost was an issue, with expensive telephony infrastructure and phone systems, as well as process inefficiencies and costly service disruptions. The legacy environments were not meeting the needs of the growing mobile workforce, and interviewees’ organizations faced policy and compliance challenges.
Interviewees noted that their organizations struggled with:
Legacy shortcomings. Interviewees described numerous shortcomings with their organizations’ legacy telephony environments. The direct cost was a huge issue, with legacy infrastructure that included legacy telephony lines, and phone systems. Process inefficiencies led to slow turnaround times for requests and labor inefficiencies. Phone users commonly experienced disruptions and poor service quality, and there were associated labor costs to apply often-temporary fixes. Having a blend of solutions and carriers led to more administrative effort, more cost, and various support and service coverage challenges. The global IT service architect at a technology company shared, “We had issues previously where it hit a certain time of the day and we were just sitting here like, ‘I guess after a.m., we’ve got to wait till tomorrow to be able to get something resolved.’” They also noted that, “We had some locations that were paying $1,000 to $2,000 a month with the POTS [plain old telephone service] lines.” The project manager at a government organization described the following situation: “We have judge rotation across our court systems, so some of our most important customers are moving every year. That means all of their phones and their computers need to move with them smoothly, which was a nightmare.” They added: “In some of our old buildings, we still have Wi-Fi dead spots. Not needing the Wi-Fi has been a good thing.”
The need to support mobile workers better. Interviewees described growing mobile worker populations at their organizations, which meant they needed to deal effectively with the challenges associated with previous environments. Mobile workers typically had two phone numbers: a cell phone number and an official office number. Their use of two phone numbers frequently confused other parties or, worse, would lead to calls being marked as spam. Interviewees also shared that their goal for mobile workers was to have seamlessly connected devices, allowing the workers to use the optimal device for the situation, be it a laptop, a tablet, or a cell phone.
Policy and compliance issues. Interviewees described having problems complying with regulations and meeting internal and external policies. Examples of challenges included meeting security policies, E911 regulations, safety policies, and Health Insurance Portability and Accountability Act (HIPAA) regulations. The global IT service architect at a technology company noted that, “The legacy environment was not life-safety compliant.”
The interviewees searched for a solution that could:
Significantly reduce the cost of providing telephony services. Interviewees described a wish to obtain significant costs savings by eliminating their organizations’ legacy phone systems, transitioning from most legacy telephony lines to utilizing internet lines, and obtaining labor savings by reducing the technical and user administration of their organizations’ phone system.
Minimize or eliminate telephony solution disruptions, performance, and compliance issues. Interviewees wanted a telephony solution that had redundancy, offered scalability, and was more resilient than their existing solution. They also wanted a solution that complied better with regulatory and policy requirements.
Improve the experience of mobile and remote workers. Interviewees wanted a solution that provided more capabilities and more simplicity for the growing number of mobile and remote workers at their organizations.
Provide central control. Interviewees’ organizations wanted a single solution that provided central control, including administration, strong reporting, and visibility.
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 interviewees’ organizations, 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 is a US-based global corporation with 5,500 employees. It has 65 sites around the world, and each site has an average of nine telephony lines. It experiences frequent disruptions as a result of its legacy phone systems.
Deployment characteristics. The composite includes all 65 global sites in the initial deployment. It ports over 5,000 employees: 2,900 to VVOC; 2,025 to VCMT; and 75 to VMMT.
A US-based global organization
5,500 employees
65 sites
Legacy telephony systems
| Ref. | Benefit | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|
| Atr | Legacy phone system savings | $2,496,000 | $2,496,000 | $2,496,000 | $7,488,000 | $6,207,183 |
| Btr | Telephone line savings | $1,404,000 | $1,404,000 | $1,404,000 | $4,212,000 | $3,491,540 |
| Ctr | Administrative and technical staff labor savings | $374,000 | $374,000 | $374,000 | $1,122,000 | $930,083 |
| Dtr | Phone user time savings due to reduction in phone-related disruptions | $176,000 | $176,000 | $176,000 | $528,000 | $437,686 |
| Total benefits (risk-adjusted) | $4,450,000 | $4,450,000 | $4,450,000 | $13,350,000 | $11,066,492 |
Evidence and data. Interviewees described having a variety of legacy phone systems across their organizations. Their legacy systems were combinations of on-premises systems and telecom data center systems. These included telephone PBXs, desktop phones, and in-building wiring as well as associated software licenses and administrative labor.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
The composite organization includes 65 global sites in the conversion.
The average cost of its legacy solution is $48,000 per site per year.
Risks. This benefit may vary across organizations for the following reasons:
The number of sites.
The cost of the legacy solution.
Infrastructure costs.
Administrative labor cost
Results. To account for these risks, Forrester adjusted this benefit downward by 20%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $6.2 million.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| A1 | Number of legacy phone system sites to be retired | Composite | 65 | 65 | 65 | |
| A2 | Average legacy phone system cost per site per year | Composite | $48,000 | $48,000 | $48,000 | |
| At | Legacy phone system savings | A1*A2 | $3,120,000 | $3,120,000 | $3,120,000 | |
| Risk adjustment | ↓20% | |||||
| Atr | Legacy phone system savings (risk-adjusted) | 2,496,000 | $2,496,000 | $2,496,000 | ||
| Three-year total: $7,488,000 | Three-year present value: $6,207,183 | |||||
Evidence and data. Interviewees described having a variety of telephony lines, including expensive POTS lines. According to the director of IT at a government organization, “Some employees had three phone numbers. We moved to just the desktop number.” The conversion to Verizon Calling Solutions for Microsoft Teams included redundancy and, in some cases, broadband lines, but interviewees reported that their costs were far lower than their previous telephony line costs. The IT director in healthcare explained: “We have eight brick-and-mortar clinics with landline services. … We’ve saved tens of thousands of dollars by cutting the phone lines for those clinics.”
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
The composite organization includes 65 global sites in the conversion.
The average site has nine telephony lines.
The average cost of a legacy telephony line is $3,000 per year.
Risks. This benefit may vary across organizations for the following reasons:
The number of sites.
The number of telephony lines per site.
The cost of the legacy telephony lines.
Results. To account for these risks, Forrester adjusted this benefit downward by 20%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $3.5 million.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| B1 | Number of legacy phone system sites to be retired | A1 | 65 | 65 | 65 | |
| B2 | Average number of telephony lines per site | Composite | 9 | 9 | 9 | |
| B3 | Average telephony line cost per year | Composite | $3,000 | $3,000 | $3,000 | |
| Bt | Telephone line savings | B1*B2*B3 | $1,755,000 | $1,755,000 | $1,755,000 | |
| Risk adjustment | ↓20% | |||||
| Btr | Telephone line savings (risk-adjusted) | 1,404,000 | $1,404,000 | $1,404,000 | ||
| Three-year total: $4,212,000 | Three-year present value: $3,491,540 | |||||
Evidence and data. Interviewees reported that their organizations were able to reduce their telephony administration efforts through operational efficiencies after implementing Verizon Calling Solutions for Microsoft Teams; they also saw time savings as a result of fewer disruptions and performance issues. Basic administration was improved due to having a single provider, which meant fewer phone numbers to manage, process improvements for onboarding, easier moves and removals, less need for training, and better visibility and control. The interviewees said that disruptions and performance were no longer considered an issue for their organizations. The IT director, healthcare, explained: “It has been great for me because I have full control, and I love that. If someone tells me that a line wasn’t working or the key wasn’t working, I know that I can look into it and resolve it.”
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
The composite organization has 5,500 phones.
After implementing Verizon Calling Solutions for Microsoft Teams, the composite reduces the administrative and technical staff time needed from two full-time employees (FTEs) per 1,000 phones to one FTE per 1,000 phones.
The average fully burdened salary of an administrative and technical FTE is $80,000 per year.
Risks. This benefit may vary across organizations for the following reasons:
The number of phones.
The capabilities of previous systems and their administration requirements.
The frequency and complexity of disruptions and performance issues.
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 $930,000.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| C1 | Number of phones | Composite | 5,500 | 5,500 | 5,500 | |
| C2 | Administrative and technical staff labor required prior to conversion (FTEs per 1,000) | Interviews | 2 | 2 | 2 | |
| C3 | Administrative and technical staff labor required after implementing Verizon Calling Solutions for Microsoft Teams (FTEs per 1,000) | Interviews | 1 | 1 | 1 | |
| C4 | Fully burdened salary of a system administrator and technical FTE | Composite | $80,000 | $80,000 | $80,000 | |
| Ct | Administrative and technical staff labor savings | C1*(C2-C3)* C4/1,000 | $440,000 | $440,000 | $440,000 | |
| Risk adjustment | ↓15% | |||||
| Ctr | Administrative and technical staff labor savings (risk-adjusted) | $374,000 | $374,000 | $374,000 | ||
| Three-year total: $1,122,000 | Three-year present value: $930,083 | |||||
Evidence and data. Interviewees described experiencing service disruptions with their legacy solutions that frequently lasted for hours. Sometimes, they were unable to resolve these until the next day due to provider support challenges or there not being a simple solution to the challenge.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
5,500 phone users are affected by disruptions with the legacy solution.
On average, each user experiences 2 hours of disruption per year.
The average fully burdened hourly rate for a phone user at the composite is $40.
The composite is able to capture productivity savings of 50%.
Risks. This benefit may vary across organizations for the following reasons:
The number of phone users.
The frequency and severity of disruptions.
The labor rates for phone users.
The productivity savings captured.
Results. To account for these risks, Forrester adjusted this benefit downward by 20%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $438,000.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| D1 | Number of phones | C1 | 5,500 | 5,500 | 5,500 | |
| D2 | Disrupted hours saved per phone user per year | Interviews | 2 | 2 | 2 | |
| D3 | Average fully burdened hourly rate for an employee | Composite | $40 | $40 | $40 | |
| D4 | Productivity savings captured by the composite organization | TEI methodology | 50% | 50% | 50% | |
| Dt | Phone user time savings due to reduction in phone-related disruptions | D1*D2*D3*D4 | $220,000 | $220,000 | $220,000 | |
| Risk adjustment | ↓20% | |||||
| Dtr | Phone user time savings due to reduction in phone-related disruptions (risk-adjusted) | $176,000 | $176,000 | $176,000 | ||
| Three-year total: $528,000 | Three-year present value: $437,686 | |||||
Interviewees mentioned the following additional benefits that their organizations experienced but were not able to quantify:
Improved employee satisfaction. Interviewees shared that employee satisfaction has improved for several key reasons. They said their employees are able to do their job better as a result of optimized device communications optimization and having a single phone number; they also appreciate having consistently reliable service. Interviewees also noted that employees found that they are achieving better work/life balance. The government director of IT described how: “The majority of our workforce is ‘on the move.’ People actually don’t want to be in an office environment — we want them with our constituents.” The IT director at a healthcare organization explained, “Most of our staff are very mobile, so VMMT is the default choice for those employees.” The global IT service architect also explained that, “Minimal disruption and improved support led to positive feedback from internal stakeholders.”
Consistent customer experiences. Interviewees described how they enabled better customer service by being able to contact customers more reliably as well as transfer and follow up with them more quickly. The IT director at a healthcare company described how their organization’s VMMT and VCMT services enabled employees to give out direct mobile phone numbers because they could now track it within the Microsoft Teams environment, noting, “We’ve absolutely seen better patient care because of it.”
More centralization and control. Interviewees described feeling in control of their organization’s telephony environment for the first time. The interviewees said the new solution was a complete makeover of their legacy systems that had different carriers, different phone systems, varying telephony line types, and a lack of visibility. The global IT service director, technology, explained: “Supporting a voice environment these days is much easier than in the past. This allows us much more control over telephony expenses.”
In addition to cost savings, they noted that administration takes less time, the telephony employees are more responsive to customer requests, and difficulties in resolving disruption problems are in the past. According to the director of IT in healthcare, “In the past, we had disjointed services. Now we have everything in one solution.” They added, “We had been using call center software for five years. With VCMT, we actually feel in control of our phone system.”
An expanded scope of services. The Verizon services exceeded interviewees’ expectations by providing greater support coverage hours as well as functionality that interviewees handled previously by buying third-party solutions.
Enhanced call quality and reliability. Interviewees noted that not only did the new services provide better overall call quality and more reliable connections but they also improved the probability that calls would get routed to the right people — often directly helping retain more business. The IT director at a healthcare company described how they routed calls now when going on vacation: “I can just forward my calls to my help staff or forward my number to a partner … and they can do the same thing when they’re off.”
Compliance with policies and regulations. Interviewees said they have been able to match service selection with their policy and regulation requirements and are satisfied with the compliance improvements that they have seen. The global IT service architect at a technology company shared, “The new solution is compliant with life-safety regulations, unlike the legacy environment.”
A strong partnership and valuable support. The interviewees said that Verizon provides a high level of customer service and support, and they praised both its work during the initial implementation and in providing ongoing assistance. The IT director at a healthcare company said: “Our representative has really bent over backwards for us. … They’re welcoming, very honest, and [they] have taken care of us. … They’ve definitely helped us with our vision of staying mobile and connected. I can’t see ourselves anywhere else right now.”
The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement Verizon Calling Solutions For Microsoft Teams and later realize additional uses and business opportunities, including:
Control improvements that offer easier scaling and administration. The global IT service architect at technology company described it well, saying, “This cloud-based solution allows for easier scaling and adaptation across regions.”
The ability to adjust calling numbers easily. The IT director at a healthcare company explained how having the ability to switch numbers improved organizational agility: “Teams is your native dialer. But if you want a Verizon number on top of it, we can change the native dialer to Verizon and the Teams number is still there to use in Teams.”
Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Total Economic Impact Approach).
| Ref. | Cost | Initial | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|---|
| Ftr | VVOC, VCMT, and VMMT licensing costs | $0 | $1,415,520 | $1,415,520 | $1,415,520 | $4,246,560 | $3,520,189 |
| Gtr | Implementation cost | $207,720 | $0 | $0 | $0 | $207,720 | $207,720 |
| Total costs (risk-adjusted) | $207,720 | $1,415,520 | $1,415,520 | $1,415,520 | $4,454,280 | $3,727,909 |
Evidence and data. The composite organization pays annual licensing costs for its use of Verizon services with Microsoft Teams and an E3 Teams phone license. It adds a Microsoft Teams license for employees without Teams. Pricing may vary. Contact Verizon and Microsoft for additional details.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
2,900 individuals use the VVOC service, 2,025 individuals use the VCMT service, and 75 individuals use the VMMT service.
The annual Microsoft E3 Teams phone license is $96 per user.
The annual licensing list price for the VVOC service is $102 per user.
The annual licensing list price for the VCMT service is $168 per user.
The annual licensing list price for the VMMT service is $48 per user.
25% of individuals require a Microsoft Teams license, at $48 per user per year.
Risks. These costs may vary across organizations for the following reasons:
The number of individual users.
The distribution of services.
Pricing.
The percentage of individuals without a Microsoft Teams license.
Results. To account for these risks, Forrester adjusted this cost upward by 20%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $3.5 million.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| F1 | Individuals converted to VVOC | Composite | 2,900 | 2,900 | 2,900 | |
| F2 | Cost per Microsoft E3 Teams phone license per user per year | Estimate | $96 | $96 | $96 | |
| F3 | VVOC licensing per user per year | Verizon list price | $102 | $102 | $102 | |
| F4 | Subtotal: VVOC licensing cost | F1*(F2+F3) | $574,200 | $574,200 | $574,200 | |
| F5 | Individuals converted to VCMT | Composite | 2,025 | 2,025 | 2,025 | |
| F6 | Cost per Microsoft E3 Teams phone license per user per year | Estimate | $96 | $96 | $96 | |
| F7 | VCMT licensing per user per year | Verizon list price | $168 | $168 | $168 | |
| F8 | Subtotal: VCMT licensing cost | F5*(F6+F7) | $534,600 | $534,600 | $534,600 | |
| F9 | Individuals converted to VMMT | Composite | 75 | 75 | 75 | |
| F10 | Cost per Microsoft E3 Teams phone license per user per year | Estimate | $96 | $96 | $96 | |
| F11 | VMMT licensing per user per year | Verizon list price | $48 | $48 | $48 | |
| F12 | Subtotal: VMMT licensing cost | F9*(F2+F11) | $10,800 | $10,800 | $10,800 | |
| F13 | Individuals converted to VVOC, VCMT, or VMMT | F1+F5+F9 | 5,000 | 5,000 | 5,000 | |
| F14 | Percent of individuals requiring a Microsoft Teams license | Composite | 25% | 25% | 25% | |
| F15 | Microsoft Teams licenses | Estimate | $48 | $48 | $48 | |
| F16 | Subtotal: Basic Teams licensing cost | F13*F14*F15 | $60,000 | $60,000 | $60,000 | |
| Ft | VVOC, VCMT, and VMMT licensing costs | F4+F8+F12+F16 | $0 | $1,179,600 | $1,179,600 | $1,179,600 |
| Risk adjustment | ↑20% | |||||
| Ftr | VVOC, VCMT, and VMMT licensing costs (risk-adjusted) | $0 | $1,415,520 | $1,415,520 | $1,415,520 | |
| Three-year total: $4,246,560 | Three-year present value: $3,520,189 | |||||
Evidence and data. Interviewees shared that focused implementation teams exceeded their original expectations for project timelines, and their teams were able to complete the implementation with minimal travel, if any. They also noted that user training was minimal because most of the users already knew how to use Microsoft Teams. The global IT service architect at a technology company shared, “Since the majority of those users were already on Teams calling, little to no training was required.”
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
The composite organization includes 65 global sites in the conversion.
Preparing for and cutting over to VVOC and VCMT services takes 24 hours per site.
Central planning, the removal of the prior solution, scheduling, and coordination with Verizon takes 24 hours per site.
The fully burdened hourly cost for the implementation team members is $55.
Risks. These costs may vary across organizations for the following reasons:
The number of sites.
The skills and availability of the telephony implementation team.
Site complexity.
Labor rates.
Results. To account for these risks, Forrester adjusted this cost upward by 20%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $208,000.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| G1 | Number of sites | A1 | 65 | |||
| G2 | VVOC and VCMT prep and cutover time per site (hours) | Interviews | 24 | |||
| G3 | Central planning, removal of prior solution, scheduling, and coordination with Verizon | Interviews | 24 | |||
| G4 | Fully burdened hourly labor for implementation team | Composite | $55 | |||
| G5 | Number of VMMT users | F9 | 75 | |||
| G6 | System administrator setup time per user (hours) | Interviews | 0.5 | |||
| G7 | Fully burdened hourly labor for system administrator | Composite | $40 | |||
| Gt | Implementation cost | G1*(G2+G3)*G4+G5*G6*G7 | $173,100 | $0 | $0 | $0 |
| Risk adjustment | ↑20% | |||||
| Gtr | Implementation cost (risk-adjusted) | $207,720 | $0 | $0 | $0 | |
| Three-year total: $207,720 | Three-year present value: $207,720 | |||||
| Initial | Year 1 | Year 2 | Year 3 | Total | Present Value | |
|---|---|---|---|---|---|---|
| Total costs | ($207,720) | ($1,415,520) | ($1,415,520) | ($1,415,520) | ($4,454,280) | ($3,727,909) |
| Total benefits | $0 | $4,450,000 | $4,450,000 | $4,450,000 | $13,350,000 | $11,066,492 |
| Net benefits | ($207,720) | $3,034,480 | $3,034,480 | $3,034,480 | $8,895,720 | $7,338,583 |
| ROI | 197% | |||||
| Payback | <6 months |
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 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, Forrester constructed a Total Economic Impact™ framework for those organizations considering an investment in Verizon Calling Solutions for Microsoft Teams.
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 Verizon Calling Solutions for Microsoft Teams can have on an organization.
Interviewed Verizon stakeholders and Forrester analysts to gather data relative to Verizon Calling Solutions for Microsoft Teams.
Interviewed four decision-makers at organizations using Verizon Calling Solutions for Microsoft Teams 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.
Benefits 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.
Costs 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.
Flexibility 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.
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.
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.
Endnotes
1 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.
Readers should be aware of the following:
This study is commissioned by Verizon 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 Verizon Calling Solutions for Microsoft Teams.
Verizon 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.
Verizon provided the customer names for the interviews but did not participate in the interviews.
Eric Hall
November 2025
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