The Total Economic Impact™ Of Astronomer Astro

Cost Savings And Business Benefits Enabled By Astro

A Forrester Total Economic Impact Study Commissioned By Astronomer, January 2024

As products and services increasingly depend on high-quality continuous data, the importance of reliant and scalable data delivery has never been greater. Enterprise leaders who use Apache Airflow to manage data pipelines often struggle with frequent downtime that threatens core business applications, significant labor to upkeep systems, and difficulty deploying and scaling services. Astronomer’s Astro is a managed service that enables Airflow users to achieve improved data stability and observability, accelerated speed to market, and reduced service and infrastructure management.

Astro is a managed service by Astronomer that offers a unified platform to orchestrate and govern data. Astro reduces the workload required for organizations to use Apache Airflow to run their workflows, allows them to accelerate development, and improves security. This is accomplished with Astro’s visibility and controls, intelligent infrastructure management, and tools for developer productivity. Astro automates much of the process of deploying and scaling Airflow, managing existing Airflow directed acyclic graphs (DAGs), writing and testing new code, and upgrading Airflow to the newest release. Astro also provides greater visibility across environments, providing deeper insight for infrastructure teams and business leaders.

Astronomer commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying Astro.1 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of Astro on their organizations.

To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed four representatives with experience using Astro. For the purposes of this study, Forrester aggregated the interviewees’ experiences and combined the results into a single composite organization. The composite is a B2B SaaS organization with 4,000 employees, leverages Airflow for 15 major service releases each year, and spends $200,000 annually on Airflow infrastructure.

Interviewees said that prior to using Astro, their organizations struggled with Airflow instances crashing and the lack of an audit trail to repair and debug data pipelines. In addition, many key staff members relied on a heavily manual process of deploying and managing Airflow instances, rather than spending their time on higher-value and creative work. However, prior attempts yielded limited success, leaving them with lost revenue from unstable services and dissatisfaction from employees and clients.

After the investment in Astro, the interviewees were able to significantly improve the stability of their services that leverage Airflow and allowed employees to reinvest their time toward higher-value work. Key results from the investment include reduced critical services downtime by 70%, reduced time to resolve Airflow issues in noncritical services by 92%, accelerated service release by seven days, reduced infrastructure costs by 45%, and reduced infrastructure management by 75%.

Key Findings

Quantified benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:

  • Accelerated speed to market and time to scale by seven days. Developers in the composite organization benefit from faster feedback loops and the ability to write code at scale, allowing for faster iteration as well as scaling of services. The additional profit enabled by this acceleration is worth $462,000 to the composite organization over a three-year period.
  • Saved 4,200 hours of development time. The faster feedback loops and ability to write code at scale allows developers to free up their time for higher-value projects. This saved time benefits the composite organization by $344,000 over a three-year period.

“Astro speeds up our development with really great documentation, proper Airflow management, and shorter testing cycles.”

Vice president of product and data, SaaS

  • Improved data reliability and organizational security (business value). Astro reduces Airflow incidents for critical services by 60% due to greater observability as well as development best practices, which Astro automatically incorporates into the composite organization’s environments. In addition, remaining critical issues are solved 25% faster as Astro allows for full data traceability and easier debugging. These two improvements combine for a 70% reduction in Airflow downtime for critical services, worth $532,000 over three years.
  • Improved Airflow stability and data visibility (labor efficiency). Astro reduces the number of Airflow incidents for noncritical services by 73% and the mean-time-to-resolution (MTTR) by 67% for any remaining issues. In total, 92% less time is spent resolving these issues, worth $135,000.
  • Reduced Airflow infrastructure and management costs. The composite organization uses Astro to reduce its infrastructure costs in two ways. First, cloud computing becomes more efficient as Astro provides greater consistency in the correct types of Airflow instances deployed. Second, as the composite organization moves to Astro Cloud in Years 2 and 3, infrastructure costs reduce even further. In addition, the composite organization reallocates 75% of an infrastructure engineer’s time as management of infrastructure using Airflow is largely automated and no longer requires the same level of manual governance. The combined infrastructure and management cost savings for the composite organization are $200,000 over a three-year period.

Unquantified benefits. Benefits that provide value for the composite organization but are not quantified for this study include:

  • Protected reputation among customers, partners, and organizational stakeholders. Since Airflow is a critical underlying technology for many important services, the composite organization can protect its reputation internally and externally as Astro improves the stability, reliability, and speed of these services to meet internal and external expectations and SLAs.
  • Enabled improved profit margin while scaling services. Scaling services with Astro is not only faster but can also be done with lower headcount and infrastructure costs, improving the profit margin for the composite organization. This is especially important during early and high-growth phases of new products, when efficiency of scale can be difficult to achieve and there are major risks to delaying rollout.
  • Improved the number and quality of artificial intelligence (AI) and machine learning (ML) services. The composite organization benefits as Astro brings together data engineering and machine learning teams on a single platform and enables high-quality training data provided faster and more reliably, in turn allowing for a greater number of artificial intelligence and machine learning services. In addition, freed-up developer and infrastructure engineer time is reallocated to these projects, further increasing the number and quality of services.
  • Accelerated access to new Airflow features. Airflow can be updated with significantly less labor and in less time by using Astro than was possible before. This not only allows employees to work on higher-value projects, but it also allows developers and services to benefit from new Airflow features faster than was possible without Astro.
  • Provided better employee experience. Freeing employees up for higher-value projects not only provides the composite organization value in terms of business results of those projects but also provides a better employee experience. Developers and engineers can reduce the number of mundane tasks, which are now automated by Astro, and focus instead on creative work.
  • Ensured greater protection of personally identifiable information (PII) and compliance with data privacy regulation. The composite organization uses Astro to create a “paper trail” of sensitive data across its data pipelines. This added visibility gives the composite organization more control over PII, ensuring that it is handled and ultimately removed in accordance with all relevant regulations. This also helps the composite organization to avoid substantial fines and loss of customer trust.

Costs. Three-year, risk-adjusted PV costs for the composite organization include:

  • Astro usage-based license costs. The composite organization pays Astronomer according to a usage-based model for services that use Astro, as well as for services that run on Astro Cloud. The combined usage-based costs are $286,000 over a three-year period.
  • Implementation and ongoing labor. Some change management is required as the composite organization assesses its data ecosystem and prioritizes the highest-value services that should move to Astro first. In addition, a data engineer spends 24 hours each year on ongoing Astro management. This time is mostly low-touch and high-level monitoring for brief periods each week. The combined labor, mostly for the initial change management and internal assessment, costs $25,000 over a three-year period.

The representative interviews and financial analysis found that a composite organization experiences benefits of $1.67 million over three years versus costs of $311,000, adding up to a net present value (NPV) of $1.36 million and an ROI of 438%.

“We knew we needed to make an investment to improve our operational excellency for real-time data used by everyone in the company, but we didn’t have resources in our team to provide what people were requesting. It became clear that it’s easier to go with Astro directly to resolve these issues and get new features.”

Tech lead and data architect, SaaS

Key Statistics

  • icon icon

    Return on investment (ROI):

    438%
  • icon icon

    Benefits PV:

    $1.67M
  • icon icon

    Net present value (NPV):

    $1.36M
  • icon icon

    Payback:

    <6 months

Benefits (Three-Year)

Accelerated speed to market and scalability Saved developer time Improved data reliability and organizational security (business value) Improved Airflow stability and data visibility (labor efficiency) Reduced Airflow infrastructure and management costs

TEI Framework And Methodology

From the information provided in the interviews, Forrester constructed a Total Economic Impact™ framework for those organizations considering an investment Astro.

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 Astro can have on an organization.

  1. Due Diligence

    Interviewed Astronomer stakeholders and Forrester analysts to gather data relative to Astro.

  2. Interviews

    Interviewed four representatives at organizations using Astro to obtain data about costs, benefits, and risks.

  3. Composite Organization

    Designed a composite organization based on characteristics of the interviewees’ organizations.

  4. Financial Model Framework

    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.

  5. Case Study

    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.

Disclosures

Readers should be aware of the following:

This study is commissioned by Astronomer 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 Astro.

Astronomer 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.

Astronomer provided the customer names for the interviews but did not participate in the interviews.

Consulting Team:

Chris Layton

Tony Lam

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