Executive Summary
Organizations are under increasing pressure to modernize private cloud environments as they support AI initiatives, cloud-native applications, and growing demands for operational efficiency across private and public cloud environments. Many operate in fragmented environments where compute, storage, networking, and security are managed through disconnected tools and processes, leading to operational silos, inconsistent configurations, and slower provisioning. Adopting a more unified and automated cloud operating model can help organizations streamline infrastructure operations, improve resource utilization, and deliver services to the business more quickly.
VMware Cloud Foundation (VCF) 9 is a unified private-cloud platform that integrates compute, storage, networking, security, and management into a single system. It provides an AI- and Kubernetes-native platform that gives organizations across industries a production-ready path to deploying AI. It helps organizations address fragmented infrastructure and manual operations by standardizing environments, automating lifecycle management, and enabling centralized control. This approach can help simplify operations, improve efficiency, support traditional and modern workloads through a consistent cloud operating model, and deliver a unified cloud consumption experience.
Broadcom commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying VCF 9.1 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of VCF 9 on their organizations.
31% - 137%
Projected return on investment (ROI)
$20,018,185 - $36,069,048
Projected benefits present value (PV)
$4,788,948 - $20,839,811
Projected net present value (PNPV)
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed eight decision-makers and surveyed 55 respondents with experience using VCF 9. For the purposes of this study, Forrester aggregated the experiences of the interviewees and survey respondents and combined the results into a single composite organization representative of a large, complex enterprise with approximately 8,200 employees and annual revenue of $3 billion, operating across on-premises and cloud environments with a mix of traditional and modern workloads.
Interviewees described fragmented infrastructure environments in which networking, storage, virtualization, security, and operations teams relied on separate tools, disconnected workflows, and inconsistent standards. These siloed operating models created manual handoffs, slowed provisioning and troubleshooting, increased management overhead, and made governance more difficult across environments. Efforts to modernize or standardize these environments were often incremental and did not provide a unified approach to infrastructure provisioning, lifecycle management, monitoring, governance, and security operations. These limitations led to delays in service delivery, elevated operational burden, and challenges maintaining consistent security, compliance, and performance.
After the investment in VCF 9, the interviewees’ organizations transitioned to a more unified and standardized operating model built on an integrated software-defined platform. This enabled greater integration across networking, storage, virtualization, security, and infrastructure operations while reducing reliance on separate tools and disconnected workflows. Interviewees said their organizations established more automated, scalable, and standardized processes for provisioning, lifecycle management, monitoring, governance, and troubleshooting across environments. Key results from the investment include faster and more efficient operations; reduced reliance on fragmented tooling; improved visibility, resiliency, security, and compliance; and a more consistent cloud consumption experience across infrastructure and application environments.
The projected outcomes presented in this study are based on modeled assumptions developed from the experiences of interviewees and surveyed users of VCF 9. While interviewees reported realized improvements in areas like operational efficiency, automation, delivery speed, and infrastructure management, Forrester used these findings to estimate the potential three-year financial impact for the composite organization.
Key Findings
Quantified projected benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:
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Reduced infrastructure operations effort through automation and fleet management. This delivers between $3.4 million and $4.2 million in value by reducing routine operational work by up to 33%. Fleet management and lifecycle automation reduce manual effort across infrastructure operations, allowing the composite organization to redeploy time to higher-value engineering and optimization activities.
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Reduced network operations effort through faster provisioning and fewer manual interventions. This delivers between $858,000 and $1.5 million in value by reducing manual provisioning and ticket volume. Policy-based networking and automation enable faster configuration, fewer manual tasks, and a shift from reactive work to more strategic operations.
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Reduced storage operations effort through automation and unified management. This generates between $5.6 million and $6.7 million in value by automating lifecycle management and simplifying storage administration. Time required across storage operations activities is reduced, with a monthly time savings in lifecycle management of 20 hours per storage operations employee. The composite experiences additional savings across new storage deployments, provisioning, troubleshooting/remediation, and recovery-related activities, improving overall operational efficiency.
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Reduced business impact of storage downtime. This delivers between $657,000 and $1.7 million in value by improving resiliency and recovery speed. Unplanned downtime declines by up to 32%, enabling faster failover and minimizing disruption to storage-dependent workloads.
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Reduced infrastructure costs through improved resource utilization and workload consolidation. This delivers between $6.0 million and $13.4 million in value through improved resource utilization and workload consolidation. Utilization improves by up to 15%, allowing the composite organization to defer or avoid incremental infrastructure investments while optimizing existing capacity.
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Eliminated third-party tooling costs through infrastructure and management consolidation. This generates between $543,000 and $1.3 million in value by consolidating infrastructure and management capabilities. Multiple point solutions are replaced with integrated functionality, reducing licensing, maintenance, and administrative overhead.
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Reduced business impact of unplanned infrastructure-related downtime affecting business-critical applications. This delivers between $594,000 and $2.5 million in value by improving stability and incident response for business-critical applications. Enhanced visibility, centralized monitoring, lifecycle management, and automation enable faster detection, diagnosis, and remediation of infrastructure issues. Standardized operations and improved operational consistency reduce recovery times and help minimize the impact of unplanned disruptions affecting business-critical applications.
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Faster infrastructure and application delivery through automation and standardized provisioning. This generates between $1.8 million and $3.6 million in value by reducing delivery time by up to 50%. Automated provisioning, standardized infrastructure templates, centralized lifecycle management, and policy-based operations reduce manual coordination across infrastructure teams and accelerate the delivery of infrastructure resources and application environments. These capabilities enable faster response to business and development requests while improving consistency, governance, and overall delivery speed.
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Reduced financial exposure to material security incidents. This delivers up to $398,000 in value by lowering the likelihood and impact of material events. Improved network segmentation, centralized infrastructure visibility, standardized security controls, and enhanced recovery capabilities help the composite organization identify and contain potential incidents more quickly, reduce lateral movement across environments, accelerate remediation efforts, and strengthen operational resilience. This benefit reflects the reduction in expected costs associated with security incidents based on interviews and survey findings and does not attempt to quantify the full financial impact of large-scale breach events, regulatory penalties, or reputational harm.
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Reduced compliance and audit effort through automation and centralized control management. This delivers up to $148,000 in value by reducing effort by up to 18%. Centralized control management and reporting simplify audit preparation and improve consistency across environments.
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Reduced vulnerability remediation effort through improved efficiency and automation. This delivers up to $618,000 in value by improving remediation speed by 30% to 50%. More efficient, nondisruptive patching and vulnerability management workflows reduce manual coordination, accelerate issue resolution, and improve overall security hygiene. Faster remediation and more consistent vulnerability management also helps reduce exposure to potential security incidents, complementing the separate benefit associated with reduced financial exposure to material security events.
[CONTENT]
| Benefit | Present Value |
|---|---|
| Reduced infrastructure operations effort through automation and fleet management | $3.4M to $4.2M |
| Reduced network operations effort through faster provisioning and fewer manual interventions | $858K to $1.5M |
| Reduced storage operations effort through automation and unified management | $5.6M to $6.7M |
| Reduced business impact of storage downtime | $657K to $1.7M |
| Reduced infrastructure costs through improved resource utilization and workload consolidation | $6.0M to $13.4M |
| Eliminated third-party tooling costs through infrastructure and management consolidation | $543K to $1.3M |
| Reduced business impact of unplanned infrastructure-related downtime | $594K to $2.5M |
| Faster infrastructure and application delivery through automation and standardized provisioning | $1.8M to $3.6M |
| Reduced financial exposure to material security incidents | $75K to $398K |
| Reduced compliance and audit effort through automation and centralized control management | $82K to $148K |
| Reduced vulnerability remediation effort through improved efficiency and automation | $371K to $618K |
Unquantified benefits. Benefits that provide value for the composite organization but are not quantified for this study include:
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Improved adaptability of the infrastructure foundation. The solution enables the composite organization to operate on a standardized, software-defined platform that can adjust more easily to evolving business and technology needs.
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Improved operational consistency, governance, and compliance across environments. The solution standardizes how infrastructure is provisioned, configured, and managed across compute, storage, and networking. This reduces variability in operations, improves adherence to best practices, and strengthens governance and compliance, particularly in large or distributed environments where consistency is difficult to maintain.
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Stronger cross-team coordination and a more unified operating model. The solution provides a common platform and shared visibility across infrastructure, security, and application teams, enabling improved collaboration and alignment for the composite organization.
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Improved platform confidence to support long-term modernization initiatives. The solution increases confidence in the stability and scalability of the underlying infrastructure, enabling the composite organization to pursue modernization efforts such as application transformation and platform standardization.
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Greater alignment between infrastructure capabilities and business priorities. The solution enables the composite organization’s IT teams to more effectively support business objectives by reducing operational complexity and improving responsiveness to changing requirements.
Costs. Three-year, risk-adjusted PV costs for the composite organization include:
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Implementation and ongoing costs total approximately $905,000 and are primarily concentrated upfront. These costs include initial implementation and migration efforts, as well as onboarding and change management activities required to support adoption of automation and centralized management capabilities. The composite organization incurs these costs as part of a one-time modernization initiative required to transition from fragmented environments to a unified platform.
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VCF 9 subscription costs total $14.3 million and represent the primary ongoing investment. The subscription includes licensing and support for a unified platform across compute, storage, networking, security, and management, with costs scaling based on infrastructure footprint and environment size. The subscription also includes service entitlements to support customer adoption and deployment, as well as training and certification resources designed to accelerate time to value. The composite organization transitions from fragmented licensing models to a more predictable and consolidated cost structure aligned to the overall platform.
Forrester modeled a range of projected low-, medium-, and high-impact outcomes based on evaluated risk. Variability across scenarios is primarily driven by differences in realized operational efficiencies, infrastructure utilization improvements, delivery acceleration, and reductions in downtime and security-related impacts. This financial analysis projects that the composite organization accrues the following three-year net present value (NPV) for each scenario by enabling Broadcom VCF 9:
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Projected high impact of a $20,839,811 NPV and projected ROI of 137%.
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Projected medium impact of a $11,163,915 NPV and projected ROI of 73%.
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Projected low impact of a $4,788,948 NPV and projected ROI of 31%.
73% ROI
Projected ROI for the medium-impact scenario
Equivalent to approximately $11.2M in projected net present value (NPV) over three years in the expected scenario.
Key Statistics
31% - 137%
Projected return on investment (PROI)
$20,018,185 - $36,069,048
Projected benefits PV
$4,788,948 - $20,839,811
Projected net present value (PNPV)
$15.2M
Total costs
18%
Average improvement in time to deliver applications
13 hours
Average developer time saved per month through self-service and automation
60%
Reduction in manual network ticket volume reported by survey respondents who use NSX
Three-Year Projected Financial Analysis For The Composite Organization
The Broadcom VMware Cloud Foundation 9 Customer Journey
Drivers leading to the VCF 9 investment
Interviews
| Role | Industry | Headquarters Location | Geographic Focus | Annual Revenue | Employees |
|---|---|---|---|---|---|
| Service owner, virtualization | Manufacturing | Germany | Global | $5.5B | 9,300 |
| Director of architecture and infrastructure | Insurance | Turkey | Europe | $82.0M | 700 |
| Chief information officer | Financial services | United States | North America | Not publicly disclosed | Not publicly disclosed |
| Vice president of platform cloud | Telecommunications | Canada | North America | $16.6B | 25,000 |
| Director, enterprise applications | Information technology | United States | Global | $7.0B | 18,000 |
| Head of global IT and security | Healthcare | United States | North America | $1.9B | 8,000 |
| Director | Real estate | United States | Global | $10.3B | 53,000 |
| Global head of cloud | Financial services | United States | Global | $78.0B | 200,000 |
Key Challenges
Interviewees stated that prior to adopting VCF 9, their organizations operated complex, fragmented infrastructure environments built up over time through a mix of legacy systems and point solutions. Infrastructure provisioning, network changes, lifecycle management, and security processes were often handled through disjointed tools and manual workflows. While many interviewees’ organizations had attempted to modernize through incremental upgrades or partial standardization efforts, these approaches did not fully address underlying complexity, leaving teams with inconsistent operations, limited scalability, and high administrative burden.
Interviewees and survey respondents noted how their organizations struggled with common challenges, including:
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Fragmented infrastructure and tool sprawl limited operational efficiency. Interviewees’ organizations relied on multiple point tools across compute, networking, storage, security, management, and automation, creating silos and duplication of effort. These fragmented environments made it difficult to maintain consistency and increased the time required to manage and troubleshoot infrastructure.
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Manual and slow provisioning constrained business agility. Provisioning new infrastructure and making configuration changes often required manual intervention and coordination across multiple systems and teams. This resulted in slower delivery of services to the business and limited the ability to respond quickly to new demands.
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Complex lifecycle management increased operational burden. Interviewees said their teams struggled to maintain and update infrastructure components consistently due to disconnected processes and tooling. Patch management, upgrades, and lifecycle activities required significant time and coordination across teams.
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Limited standardization created inconsistencies and risk. Without a unified operating model, environments varied across teams and locations, making it difficult to enforce best practices. These inconsistencies increased the risk of misconfiguration, security gaps, and compliance challenges at the interviewees’ organizations.
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High operational overhead reduced IT productivity. Interviewees said teams spent significant time managing routine tasks, responding to tickets, and troubleshooting issues in complex environments. This limited their ability to focus on higher-value initiatives such as modernization and innovation.
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Hybrid and multi-environment complexity strained scalability. Interviewees’ organizations managing mixed workloads across on-premises and cloud environments faced added complexity in maintaining visibility and control. Existing approaches were not well suited to support consistent operations across these distributed environments.
Solution Requirements
The interviewees’ and survey respondents’ organizations searched for a solution that could:
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Unify fragmented infrastructure into a single, integrated platform. Interviewees’ and survey respondents’ organizations sought to replace siloed point tools across compute, networking, storage, and security with a more cohesive approach. They needed a solution that could simplify operations while improving consistency across environments.
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Enable automation and reduce reliance on manual processes. Their teams required capabilities to streamline provisioning, configuration, and lifecycle management. Reducing manual effort was critical to improving speed, scalability, and operational efficiency.
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Standardize operations across environments. Interviewees survey respondents noted their organizations wanted a consistent operating model that could be applied across on-premises and public cloud environments. This included enforcing best practices, reducing variability, and improving governance and control.
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Simplify lifecycle management and ongoing maintenance. Interviewees looked for a solution that could centralize and streamline patching, upgrades, and infrastructure updates. They needed to reduce the complexity and coordination required to maintain systems over time.
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Improve visibility, resiliency, and security posture. Interviewees’ organizations required stronger insight into infrastructure performance and risks, along with built‑in capabilities to support compliance and resilience. This included better ability to manage outages, enforce policies, and protect critical workloads.
Composite Organization
Based on the interviews and survey, Forrester constructed a TEI framework, a composite company, and an ROI analysis that illustrates the areas financially affected. The composite organization is representative of the interviewees’ and survey respondents’ organizations, and it is used to present the aggregate financial analysis in the next section. The composite organization has the following characteristics:
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Description of composite. The composite organization is a large, complex enterprise operating in a data-intensive and highly regulated industry with $3 billinon in annual revenue and 8,200 employees. It has thousands of virtual machines and a significant on-premises infrastructure footprint. It supports a mix of critical business applications across distributed on-premises and cloud environments and relies on a relatively small infrastructure and operations team to manage compute, networking, storage, and security. Prior to modernization, the composite organization operated a partially virtualized environment with fragmented tooling and siloed operations.
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Deployment characteristics. The composite organization adopts VCF 9 through a phased modernization approach, beginning with pilot environments before expanding across core infrastructure. Deployment focuses on consolidating existing tools and standardizing operations while enabling more automated provisioning, lifecycle management, and hybrid infrastructure support over time.
KEY ASSUMPTIONS
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$3 billion in annual revenue
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8,200 employees
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Operates across on-premises and cloud environments with a mix of traditional and modern workloads
Analysis Of Benefits
Quantified benefit data as applied to the composite
Total Projected Benefits
| Benefit | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|
| Total projected benefits (low) | $7,603,293 | $8,149,251 | $8,480,042 | $24,232,586 | $20,018,185 |
| Total projected benefits (mid) | $10,291,982 | $10,639,799 | $10,972,207 | $31,903,988 | $26,393,152 |
| Total projected benefits (high) | $14,174,055 | $14,591,722 | $14,806,402 | $43,572,179 | $36,069,048 |
Reduced Infrastructure Operations Effort Through Automation And Fleet Management
Evidence and data. Interviewees and survey respondents said VCF 9 reduced the time required to perform routine infrastructure operations by enabling more fleet management, improving lifecycle management, and reducing reliance on manual processes. These changes made day-to-day infrastructure operations more efficient and consistent across environments.
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The director of architecture and infrastructure at an insurance organization described meaningful gains in ongoing infrastructure efficiency, stating, “Lifecycle operations are about 70% faster, and provisioning that used to take days can now be done in hours or less.” These improvements reduced time spent on routine administrative work and allowed the team to focus more on maintenance and higher-priority activities.
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The chief information officer at a financial services organization highlighted the impact of consolidation and visibility, noting, “Having a more holistic view across the environment makes it much easier to manage and troubleshoot.” This shift reduced the effort required to diagnose and resolve issues that previously required coordination across multiple teams and tools.
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The vice president of platform cloud in telecommunications emphasized the impact of reducing manual processes, saying, “Network and infrastructure changes that used to take days can now be completed in hours.” Standardized operations, automated workflows, and centralized lifecycle management reduced the level of hands-on administrative effort required for infrastructure provisioning, configuration changes, and ongoing infrastructure operations, enabling the teams to complete common infrastructure tasks more quickly and consistently.
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Interviewees consistently pointed to automation as a key driver of efficiency. As one service owner of virtualization at a manufacturing organization noted: “The goal for the automation was to be faster, have more reliability, and create fewer errors during the process.” In practice, this translated into less time spent on repetitive tasks and more time available for modernization and optimization work.
Modeling and assumptions. Based on the interviews and survey, Forrester assumes the following about the composite organization:
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The composite organization employs a dedicated infrastructure operations team responsible for steady-state fleet management tasks such as lifecycle management, environment maintenance, and routine operational support.
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The composite organization adopts more standardized operational practices and workflows as part of the transition to a unified cloud operating model. While staffing levels remain largely unchanged, teams benefit from reduced operational silos, greater automation, improved lifecycle management, and more consistent infrastructure processes.
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The modeled benefit reflects reductions in time spent on routine infrastructure operations work driven by lifecycle automation, fleet management, and more standardized processes enabled by VCF 9.
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The reduction in effort applies specifically to steady-state operational work and excludes time savings from network provisioning, ticket reduction, delivery acceleration, or downtime avoidance, which are modeled as separate benefits to avoid overlap.
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The model applies a range of time savings that reflects interview feedback, which indicates meaningful efficiency gains in infrastructure operations with benefits increasing over time as adoption expands and processes mature.
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The model assumes that most of the time savings is recaptured and redeployed to higher-value activities, such as modernization, optimization, and proactive engineering work, rather than resulting in direct headcount reduction.
Results. This yields a three-year projected PV ranging from $3,350,035 (low) to $4,207,402 (high).
Benefit A Module: Range Of Three-Year Cumulative Impact, PV
33%
Reduction in time spent on routine infrastructure operations as teams adopt more automated and fleet management
85% of the resulting time savings is redeployed to higher-value engineering and operational activities.
Reduced Infrastructure Operations Effort Through Automation And Fleet Management
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| A1 | Infrastructure operations personnel responsible for routine system administration and operational tasks | Composite | 50 | 50 | 50 | |
| A2LOW | 20% | 24% | 27% | |||
| A2MID | Percentage of reduction in time spent on routine infrastructure operations | Interviews and survey | 22% | 25% | 28% | |
| A2HIGH | 26% | 30% | 33% | |||
| A3 | Fully burdened hourly rate for an infrastructure operations personnel | Composite | $65 | $65 | $65 | |
| A4 | Productivity recapture rate | TEI methodology | 85% | 85% | 85% | |
| AtLOW | $1,149,200 | $1,379,040 | $1,551,420 | |||
| AtMID | Reduced infrastructure operations effort through automation and fleet management | A1*2,080*A2*A3*A4 | $1,264,120 | $1,436,500 | $1,608,880 | |
| AtHIGH | $1,493,960 | $1,723,800 | $1,896,180 | |||
| Three-year projected total: $4,079,660 - $5,113,940 | Three-year projected present value: $3,350,035 - $4,207,402 | |||||
Reduced Network Operations Effort Through Faster Provisioning And Fewer Manual Interventions
Evidence and data. Interviewees and survey respondents said VCF 9 reduced the time and effort required to perform network provisioning and related operational work by introducing more automated, policy-based networking and reducing reliance on manual intervention. These improvements were especially visible in environments where network changes had previously depended on multiple teams, manual configuration steps, or ticket-driven workflows. Standardized provisioning processes, centralized management, and improved coordination across networking, infrastructure, and platform teams further reduced the need for manual ticket handling and repetitive operational activities.
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The service owner of virtualization at a manufacturing organization described the change in network effort very directly, stating, “In the past when we needed a new network, it was like work for one day and today it’s like 5 minutes.” In the same environment, time spent on network operations dropped from roughly 20 to 30 hours per month to about 1 hour.
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The director of architecture and infrastructure at an insurance company emphasized both provisioning speed and operational simplification: “We segmented our entire system and also when you create some resource, it knows where it belongs to attach. That’s also easy to manage in VCF 9 with the NSX.” The same interviewee said network changes that previously took half a day to a full day could now be completed in 1 to 2 hours.
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The vice president of platform cloud at a telecommunications organization described network enablement as a major source of operational delay before modernization and said the intended future state would reduce changes “from days down to hours.” This reflected the expectation that more integrated networking, automation, standardized provisioning processes, and centralized management would materially reduce manual effort, operational handoffs, and repetitive provisioning and configuration tasks.
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This interviewee continued, noting that NSX-enabled automation materially changed how quickly firewalling and network segmentation could be implemented. Network and firewall requests that had often taken days — and in some cases longer — were expected to be completed in hours once aligned to approved patterns and policies.
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The chief information officer in financial services said their team no longer had a dedicated network function because the platform had simplified and accelerated the work, stating, “We don’t have a network team.” The same interviewee added that network changes that once took days now took minutes or hours, reducing the amount of specialized manual intervention needed for routine work.
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Survey responses reinforced these interview themes. Respondents whose organizations use NSX reported substantial reductions in time spent on network provisioning and manual network ticket volume, showing that policy-based networking and automation meaningfully reduced both planned network work and reactive operational effort.
Modeling and assumptions. Based on the interviews and survey, Forrester assumes the following about the composite organization:
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The composite organization employs infrastructure and network operations personnel who spend meaningful time each month on planned network provisioning and configuration work as well as manual interventions tied to infrastructure-related network activities.
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The modeled benefit captures two distinct value levers: less time required for network provisioning and manual configuration and fewer infrastructure-related network tickets requiring hands-on intervention. These two levers are treated separately to avoid blending planned work with reactive work. The model focuses on the reduction in labor effort associated with network provisioning and ticket resolution activities. Additional benefits related to faster fulfillment of network requests and reduced waiting time between ticket creation and resolution may also exist but are not separately quantified in this analysis.
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The provisioning component reflects the impact of automation and policy-based networking enabled by NSX, which reduces the time required to complete repeatable network configuration and enablement tasks.
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The manual intervention component reflects reduced network-related ticket volume and less hands-on operational effort after more networking activities become standardized, automated, and easier to manage within the platform.
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The model assumes that most of the time savings is recaptured and redeployed to higher-value engineering and operational work rather than treated as direct headcount elimination. This aligns with interview feedback that operational teams generally used the saved time to improve service delivery, maintenance, modernization, and other priority work. The productivity recapture rate represents Forrester’s estimate of the share of realized time savings that can be redirected to productive engineering and operational activities rather than being absorbed by normal operational inefficiencies.
Results. This yields a three-year projected PV ranging from $858,266 (low) to $1,524,465 (high).
Benefit B Module: Range Of Three-Year Cumulative Impact, PV
60%
Reduction in manual network ticket volume reported by survey respondents who use NSX
Reduced Network Operations Effort Through Faster Provisioning And Fewer Manual Interventions
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| B1 | Infrastructure and network operations personnel performing provisioning and configuration tasks | Composite | 42 | 42 | 42 | |
| B2 | Average monthly hours per employee spent on manual network configuration and provisioning tasks prior to NSX | Survey | 18 | 18 | 18 | |
| B3LOW | 42% | 47% | 50% | |||
| B3MID | Percentage of reduction in time required for network provisioning and manual configuration tasks | Interviews and survey | 45% | 50% | 53% | |
| B3HIGH | 60% | 65% | 70% | |||
| B4 | Fully burdened hourly rate for an infrastructure and network operations personnel | Composite | $65 | $65 | $65 | |
| B5 | Productivity recapture rate, representing the share of time savings redeployed to higher-value engineering and operational activities | TEI methodology | 85% | 85% | 85% | |
| B6LOW | $210,516 | $235,577 | $250,614 | |||
| B6MID | Subtotal: Reduced network provisioning time | B1*B2*B3*12*B4*B5 | $225,553 | $250,614 | $265,651 | |
| B6HIGH | $300,737 | $325,798 | $350,860 | |||
| B7 | Monthly infrastructure-related network tickets requiring manual intervention (pre-automation before NSX) | Survey | 325 | 325 | 325 | |
| B8Low | 47% | 55% | 58% | |||
| B8Mid | Percentage of reduction in manual network ticket volume | Interviews and survey | 55% | 60% | 63% | |
| B8High | 62% | 68% | 72% | |||
| B9Low | 1.00 | 1.00 | 1.00 | |||
| B9Mid | Average hours per ticket | Composite | 1.25 | 1.25 | 1.25 | |
| B9High | 2.00 | 2.00 | 2.00 | |||
| B10LOW | $101,273 | $118,511 | $124,976 | |||
| B10MID | Subtotal: Reduced manual network ticket volume | B7*B8*B9*12*B4*B5 | $148,139 | $161,606 | $169,687 | |
| B10HIGH | $267,189 | $293,046 | $310,284 | |||
| BtLOW | $311,789 | $354,088 | $375,590 | |||
| BtMID | Reduced network operations effort through faster provisioning and fewer manual interventions | B6+B10 | $373,692 | $412,220 | $435,338 | |
| BtHIGH | $567,926 | $618,844 | $661,144 | |||
| Three-year projected total: $1,041,467 - $1,847,914 | Three-year projected present value: $858,266 - $1,524,465 | |||||
Reduced Storage Operations Effort Through Automation And Unified Management
Evidence and data. Interviewees and survey respondents said VCF 9 reduced the time required to manage storage environments by simplifying provisioning, lifecycle management, troubleshooting, and recovery-related tasks. These improvements came from more unified administration, improved storage efficiency (deduplication and compression), less fragmented storage management, and greater use of automation across routine storage operations.
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Survey respondents whose organizations use vSAN reported meaningful monthly time savings across several storage activities, including lifecycle management, new storage deployments, provisioning, troubleshooting and remediation, and downtime-related recovery work. The largest time savings appeared in lifecycle management, followed by storage deployment and provisioning.
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Storage efficiency also improved materially in some environments. The director of architecture and infrastructure at an insurance organization explained: “The storage compression, it’s amazing. The deduplication capabilities are insane.” In the same environment, this interviewee’s organization also reduced reliance on separate replication and recovery tooling, supporting a more unified operating model for storage administration.
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Storage resiliency reduced operational disruption as well as administrative burden. The service owner of virtualization in manufacturing told Forrester, “The complete Fibre Channel went down and all the vSAN survived.” This highlighted how a more unified storage environment reduced dependence on traditional storage architectures and simplified operations.
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Recovery-related storage operations also became more efficient. The director of architecture and infrastructure at an insurance organization stated, “Our switch off to primary site to secondary site is decreased from hours to minutes.” That same interviewee said their organization also eliminated additional software licenses tied to replication and recovery, further reducing operational complexity.
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Interviewees consistently described storage operations becoming easier to manage when they reduced the number of separate systems and tools involved in provisioning, lifecycle management, and recovery. The side-by-side synthesis reinforced this pattern, showing storage-related operational gains alongside reduced downtime and lower cost per terabyte.
Modeling and assumptions. Based on the interviews and survey, Forrester assumes the following about the composite organization:
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The composite organization employs a dedicated storage operations team responsible for provisioning, lifecycle management, troubleshooting, and storage-related recovery support across a large enterprise environment.
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The modeled benefit reflects time savings in storage operations work driven by automation and unified management that VCF 9 enables. It captures recurring operational effort rather than infrastructure cost reduction or business downtime impacts, which are modeled separately.
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The model applies activity-level time savings across five storage operating areas: lifecycle management, new storage deployments, provisioning, troubleshooting and remediation, and downtime-related recovery effort. This structure reflects the survey evidence and keeps the benefit grounded in observed operational tasks.
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The model assumes that realization improves over time as teams mature operational practices and expand adoption of more standardized storage management workflows.
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The model assumes that most of the time saved is recaptured and redeployed to higher-value engineering, optimization, and modernization activities rather than resulting in direct headcount elimination.
Results. This yields a three-year projected PV ranging from $5,641,989 (low) to $6,685,011 (high).
Benefit C Module: Range Of Three-Year Cumulative Impact, PV
20 hours
Average monthly hours saved per storage operations employee on lifecycle management activities by survey respondents using vSAN
Reduced Storage Operations Effort Through Automation And Unified Management
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| C1 | Storage operations FTEs responsible for provisioning, lifecycle management, and troubleshooting storage environments | Composite | 70 | 70 | 70 | |
| C2 | Average monthly hours saved per storage operations FTE on lifecycle management activities due to VCF 9 | Survey | 20 | 20 | 20 | |
| C3 | Average monthly hours saved per storage operations FTE on new storage deployments due to VCF 9 | Survey | 14 | 14 | 14 | |
| C4 | Average monthly hours saved per storage operations FTE on provisioning activities due to VCF 9 | Survey | 13 | 13 | 13 | |
| C5 | Average monthly hours saved per storage operations FTE on troubleshooting and remediation due to VCF 9 | Survey | 8 | 8 | 8 | |
| C6 | Average monthly hours saved per storage operations FTE on resolving storage-related downtime and recovery activities due to VCF 9 | Survey | 4 | 4 | 4 | |
| C7 | Subtotal: Total average monthly hours saved per storage operations FTE across all activities due to VCF 9 | C2+C3+C4+C5+C6 | 59 | 59 | 59 | |
| C8LOW | 75% | 85% | 90% | |||
| C8MID | Realization factor for storage operations time savings reflecting execution and adoption variability | Composite | 85% | 90% | 95% | |
| C8HIGH | 95% | 100% | 100% | |||
| C9 | Fully burdened hourly rate for a storage infrastructure operations personnel | Composite | $65 | $65 | $65 | |
| C10 | Productivity recapture rate representing the portion of time savings redeployed to higher-value activities | TEI methodology | 85% | 85% | 85% | |
| CtLOW | $2,053,643 | $2,327,462 | $2,464,371 | |||
| CtMID | Reduced storage operations effort through automation and unified management | C1*C7*C8*C9*C10*12 | $2,327,462 | $2,464,371 | $2,601,281 | |
| CtHIGH | $2,601,281 | $2,738,190 | $2,738,190 | |||
| Three-year projected total: $6,845,476 - $8,077,661 | Three-year projected present value: $5,641,989 - $6,685,011 | |||||
Reduced Business Impact Of Storage Downtime
Evidence and data. Interviewees and survey respondents said VCF 9 reduced the business impact of storage-related downtime by improving storage resiliency, simplifying failover and recovery processes, and reducing dependence on more fragmented storage architectures. These improvements helped interviewees’ organizations avoid or shorten disruptions that would otherwise affect storage-dependent workloads and business operations.
-
The director of architecture and infrastructure at an insurance organization emphasized improvements in recovery speed and overall resiliency. In that same environment, their organization retired separate replication and recovery tools, reducing tooling complexity while also lowering the business impact of failover events through faster and more integrated recovery processes.
-
Survey respondents whose organizations use vSAN reported that unplanned storage downtime declined by an average of 26%. That same survey also showed time savings in storage-related lifecycle and recovery activities, reinforcing that stronger resiliency and more integrated management reduced the operational burden and business impact of storage incidents.
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According to interviewees, storage downtime was treated as distinct from storage labor efficiency. Interviewees consistently described improved availability, faster failover, and more resilient storage operations as separate sources of value because they reduced the business consequences of outages rather than simply reducing storage team effort.
Modeling and assumptions. Based on the interviews and survey, Forrester assumes the following about the composite organization:
-
The composite organization experiences a baseline level of annual unplanned storage-related downtime affecting storage-dependent workloads and business operations. This reflects the reality of large, complex enterprise environments that rely on storage availability to support critical systems.
-
The modeled benefit captures the reduction in business impact associated with fewer or shorter storage-related outages due to improved resiliency and system availability enabled by VCF 9. It does not reflect storage team labor savings, which are modeled separately in the storage operations benefit.
-
The reduction percentage is based primarily on survey data showing average improvement in unplanned storage downtime, with interview evidence used to support the direction and credibility of the assumption.
-
The business value of avoided downtime is modeled using a conservative average cost per hour of storage-related disruption. This reflects the operational and service impact of outages affecting storage-dependent applications and environments without extending the benefit into broader infrastructure downtime, which is modeled separately.
-
The model keeps this benefit distinct from broader downtime benefits by focusing only on storage-related downtime and its direct business impact. This avoids overlap with the larger infrastructure downtime category later in the model.
Results. This yields a three-year projected PV ranging from $656,529 (low) to $1,718,912 (high).
Benefit D Module: Range Of Three-Year Cumulative Impact, PV
26%
Average reduction in unplanned storage downtime reported by survey respondents who use vSAN
Reduced Business Impact Of Storage Downtime
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| D1 | Annual baseline hours of unplanned storage-related downtime prior to VCF 9 | Composite | 120 | 120 | 120 | |
| D2LOW | 22% | 22% | 22% | |||
| D2MID | Percentage of reduction in storage-related downtime due to improved resiliency and system availability enabled by VCF 9 | Survey | 26% | 26% | 26% | |
| D2HIGH | 32% | 32% | 32% | |||
| D3LOW | $10,000 | $10,000 | $10,000 | |||
| D3MID | Average business cost per hour of storage-related downtime | Survey | $12,000 | $12,000 | $12,000 | |
| D3HIGH | $18,000 | $18,000 | $18,000 | |||
| DtLOW | $264,000 | $264,000 | $264,000 | |||
| DtMID | Reduced business impact of storage downtime | D1*D2*D3 | $374,400 | $374,400 | $374,400 | |
| DtHIGH | $691,200 | $691,200 | $691,200 | |||
| Three-year projected total: $792,000 - $2,073,600 | Three-year projected present value: $656,529 - $1,718,912 | |||||
Reduced Infrastructure Costs Through Improved Resource Utilization And Workload Consolidation
Evidence and data. Interviewees and survey respondents said VCF 9 improved infrastructure resource utilization by enabling better workload placement, greater resource pooling, more efficient use of storage resources through capabilities like deduplication and compression and more standardized management across compute, storage, and networking. Rather than viewing this benefit as an immediate reduction in all infrastructure spending, interviewees more often described it as a way to use existing capacity more efficiently, avoid unnecessary expansion, and defer incremental infrastructure purchases.
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The chief information officer in financial services described how VCF changed capacity efficiency at scale: “We collapsed our environment by a pretty significant amount,” estimating that their organization reduced hardware by “somewhere between 25% to 50%.” In that same environment, improved infrastructure utilization came from consolidating workloads that had previously run in separate environments.
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The service owner of virtualization at a manufacturer described infrastructure savings more cautiously but still directionally, noting it was “maybe 20%.” That estimate was tied to savings potential from greater use of vSAN, including storage-efficiency capabilities like deduplication and compression, and a more consolidated stack — particularly as legacy storage and infrastructure refresh cycles were evaluated against the broader VCF environment.
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The vice president of platform cloud in telecommunications framed consolidation as a core objective of the platform strategy, emphasizing better workload placement and more efficient use of infrastructure across a large, distributed environment. In that context, improved utilization was not only about lowering footprint but also about delaying or avoiding incremental infrastructure investments while supporting hybrid and multi-environment operations.
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Survey results reinforced these interview themes. Respondents indicated an average 10% improvement in infrastructure utilization after adopting VCF 9, while cost reduction responses clustered around infrastructure-related categories such as hardware, IT labor, and public cloud consumption. This supported the view that improved utilization translated into real but partial infrastructure cost avoidance rather than one-for-one cost elimination.
Modeling and assumptions. Based on the interviews and survey, Forrester assumes the following about the composite organization:
-
The composite organization maintains a large annual infrastructure spend across compute, storage, and networking resources, reflecting the scale and complexity of a large enterprise environment. The model uses this spend as the baseline against which more efficient resource utilization can reduce future infrastructure requirements.
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The modeled benefit reflects avoided or deferred infrastructure spending enabled by improved workload optimization, resource pooling, and better visibility into utilization. It is a cost-avoidance benefit rather than a labor efficiency benefit.
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The model applies a utilization improvement based primarily on survey evidence, with interviewee commentary supporting the direction and credibility of infrastructure consolidation and footprint reduction.
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The model does not assume that all utilization gains are converted directly into savings. Instead, it applies a partial monetization factor to reflect the portion of utilization improvement that realistically results in avoided or deferred infrastructure spend. This keeps the benefit conservative and distinct from direct operational savings.
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This benefit is kept separate from storage operations efficiency, tool consolidation, and downtime reduction. It specifically captures the infrastructure-spend effect of using existing resources more efficiently and reducing the need for incremental capacity.
Results. This yields a three-year projected PV ranging from $6,043,050 (low) to $13,429,001 (high).
Benefit E Module: Range Of Three-Year Cumulative Impact, PV
Reduced Infrastructure Costs Through Improved Resource Utilization And Workload Consolidation
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| E1 | Annual infrastructure spend baseline for compute, storage, and networking resources prior to VCF 9 | Interviews | $60,000,000 | $60,000,000 | $60,000,000 | |
| E2LOW | 9% | 9% | 9% | |||
| E2MID | Percentage of improvement in infrastructure resource utilization | Survey | 11.00% | 11.00% | 11.00% | |
| E2HIGH | 15% | 15% | 15% | |||
| E3LOW | 45% | 45% | 45% | |||
| E3MID | Percentage of infrastructure utilization gains that can be converted into avoided or deferred infrastructure spend | Interviews | 55% | 55% | 55% | |
| E3HIGH | 60% | 60% | 60% | |||
| EtLOW | $2,430,000 | $2,430,000 | $2,430,000 | |||
| EtMID | Reduced infrastructure costs through improved resource utilization and workload consolidation | E1*E2*E3 | $3,630,000 | $3,630,000 | $3,630,000 | |
| EtHIGH | $5,400,000 | $5,400,000 | $5,400,000 | |||
| Three-year projected total: $7,290,000 - $16,200,000 | Three-year projected present value: $6,043,050 - $13,429,001 | |||||
Eliminated Third-Party Tooling Costs Through Infrastructure And Management Consolidation
Evidence and data. Interviewees said VCF 9 reduced reliance on separate third-party infrastructure and management tools by consolidating functionality into a more unified platform. In practice, this benefit showed up as eliminated license costs, reduced maintenance overhead, and less administrative complexity from managing multiple point solutions.
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The director of architecture and infrastructure at an insurance organization described a direct retirement of recovery tools after the transition, stating, “We eliminated the additional software licenses [including Veeam and Zerto after moving those functions onto the VCF 9 platform].” In that same environment, the interviewee estimated those two tool costs at roughly $30,000 per year and $10,000 per year, respectively.
-
The chief information officer in financial services described consolidation as part of a broader simplification of the security and infrastructure stack, noting, “We would not have been able to get to where we are now without the centralized security management.” In that environment, the team avoided layering in multiple additional point products and instead relied more heavily on integrated capabilities within the platform.
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The director at a real estate organization reflected the cost impact of rationalization at a larger scale. In the side-by-side interview synthesis, their organization reduced its estate from 30 tools to 15 and associated that change with about $200,000 in annual savings. This pointed to the financial upside of reducing fragmented tooling in a complex environment.
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The head of global IT and security in healthcare also saw direct savings from retiring point solutions. In the side-by-side synthesis, their organization removed two tools and associated the change with roughly $100,000 to $150,000 in annual value. This reinforced that the benefit was not limited to backup or recovery tooling alone.
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The global head of cloud at a financial services organization tied consolidation to much broader platform simplification. In the side-by-side analysis, their organization referenced eight to nine tools and associated the consolidation opportunity with about $2 million to $3 million in value, reflecting how eliminating separate products can reduce both direct software cost and the complexity of managing a fragmented stack.
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Interviewees consistently connected this benefit to platform consolidation rather than just lower license spend. The direct cost savings came from retiring tools, while the broader operational value came from reducing the overhead required to manage, maintain, and integrate those tools over time. Interviewees also cited reduced complexity and more centralized management of security and infrastructure functions as additional benefits of operating with fewer tools, although those impacts are not separately quantified in this benefit.
Modeling and assumptions. Based on the interviews and survey, Forrester assumes the following about the composite organization:
-
Prior to VCF 9, the composite organization had accumulated a set of third-party infrastructure and management tools over time to support backup, recovery, monitoring, networking, security, and other operational requirements.
-
The modeled benefit reflects direct cost elimination from retiring a subset of those tools after consolidating infrastructure and management capabilities onto VCF 9. It also reflects modest additional savings from reduced overhead associated with managing fewer standalone products.
-
The model applies an average annual cost per tool based on interview evidence ranging from relatively small point-tool removals to more material consolidation scenarios. This creates a conservative blended assumption appropriate for a composite organization rather than any single customer profile.
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The model assumes that not every prior tool cost is fully eliminated, so only a portion of tooling costs is converted into savings. This keeps the benefit conservative and recognizes that some overlap, transition cost, or partial coexistence may remain.
-
This benefit is kept separate from labor efficiency gains. The direct tool cost removal is captured here, while reduced administrative effort from managing a more unified environment is addressed in the operations efficiency benefits.
Results. This yields a three-year projected PV ranging from $543,377 (low) to $1,270,781 (high).
Benefit F Module: Range Of Three-Year Cumulative Impact, PV
Eliminated Third-Party Tooling Costs Through Infrastructure And Management Consolidation
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| F1 | Third-party infrastructure and management tools eliminated through consolidation enabled by VCF 9 | Composite | 6 | 6 | 6 | |
| F2LOW | $40,000 | $40,000 | $40,000 | |||
| F2MID | Average annual license, maintenance, and administrative cost per third-party tool prior to VCF 9 | Interviews | $60,000 | $60,000 | $60,000 | |
| F2HIGH | $90,000 | $90,000 | $90,000 | |||
| F3 | Percentage of third-party tool costs that can be fully eliminated following consolidation onto VCF 9 | Survey | 90% | 90% | 90% | |
| F4LOW | $2,500 | $2,500 | $2,500 | |||
| F4MID | Additional annual cost savings from reduced overhead associated with managing multiple third-party tools | Interviews | $10,000 | $10,000 | $10,000 | |
| F4HIGH | $25,000 | $25,000 | $25,000 | |||
| FtLOW | $218,500 | $218,500 | $218,500 | |||
| FtMID | Eliminated third-party tooling costs through infrastructure and management consolidation | (F1*F2*F3)+F4 | $334,000 | $334,000 | $334,000 | |
| FtHIGH | $511,000 | $511,000 | $511,000 | |||
| Three-year projected total: $655,500 - $1,533,000 | Three-year projected present value: $543,377 - $1,270,781 | |||||
Reduced Business Impact Of Unplanned Infrastructure-Related Downtime Affecting Business-Critical Applications
Evidence and data. Interviewees and survey respondents said VCF 9 reduced the business impact of unplanned infrastructure-related downtime by improving system stability, increasing visibility across environments, and enabling faster diagnosis and response when incidents occurred. These improvements affected business-critical applications more broadly than storage-specific resiliency alone and helped reduce disruption to end users and core business services.
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The chief information officer at a financial services organization described how the unified environment improved incident response during a major outage: “Ten minutes later, we have a full diagnosis. That’s correct. And an action plan.” In that same environment, the interviewee contrasted this with a previous overnight effort involving multiple teams and tools, underscoring how integrated visibility helped limit business disruption when business-critical services were affected.
-
The service owner of virtualization at a manufacturer described how the environment maintained service continuity even when back-end issues occurred, noting, “From our customers, nobody noticed the problems we had in the back end.” In that case, management issues did not translate into visible workload disruption, illustrating how better stability and isolation reduced the business impact of infrastructure incidents.
-
The director of architecture and infrastructure at an insurance organization tied resiliency improvements directly to customer-facing operations. In that same environment, faster failover and improved performance supported more stable delivery of business-critical systems and reduced the impact of outages affecting core services.
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The global head of cloud at a financial services organization connected VCF 9 to stronger resilience at the application level: “The risk of lateral movement is significantly narrowed. ... We can recover everything within about an hour.” In that environment, the combination of stronger segmentation, faster recovery, and more unified operations reduced the likelihood that infrastructure disruptions would cascade into broader business-critical outages.
-
Survey respondents reinforced these interview themes. They identified security, compliance, and resiliency as a major realized benefit of VCF 9, and respondents reported the strongest improvements in reduced downtime in the event of a cyberattack or other operational disruption, along with simplified management and enhanced recovery readiness.
Modeling and assumptions. Based on the interviews and survey, Forrester assumes the following about the composite organization:
-
The composite organization experiences a recurring level of unplanned infrastructure-related downtime affecting business-critical applications, reflecting the complexity of a large enterprise environment with distributed workloads and high service dependencies.
-
The modeled benefit reflects reductions in the business impact of broader infrastructure incidents due to improved stability, automation, and visibility, along with faster diagnosis and recovery enabled by VCF 9. This benefit focuses on application- and business-service disruption rather than storage-only disruption.
-
The reduction percentage is informed by interview evidence and survey results pointing to stronger recovery readiness, reduced outages, and faster incident response in environments using VCF 9.
-
The average cost per hour represents the business impact of downtime affecting customer-facing and operationally important applications, including lost productivity and service disruption. The model uses a conservative blended estimate rather than attempting to value every possible downstream consequence of an outage.
-
This benefit is modeled separately from storage-downtime reduction and from labor efficiency benefits. It captures the broader business effect of avoiding or shortening infrastructure incidents that affect business-critical applications.
Results. This yields a three-year projected PV ranging from $593,562 (low) to $2,462,182 (high).
Benefit G Module: Range Of Three-Year Cumulative Impact, PV
Reduced Business Impact Of Unplanned Infrastructure-Related Downtime Affecting Business-Critical Applications
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| G1 | Annual baseline hours of unplanned infrastructure-related downtime affecting business-critical applications prior to VCF 9 | Composite | 130 | 130 | 130 | |
| G2LOW | 18% | 18% | 18% | |||
| G2MID | Percentage of reduction in unplanned infrastructure-related downtime due to improved system stability, automation, and visibility enabled by VCF 9 | Interviews and survey | 25% | 25% | 25% | |
| G2HIGH | 32% | 32% | 32% | |||
| G3LOW | $12,000 | $12,000 | $12,000 | |||
| G3MID | Average business cost per hour of infrastructure-related downtime | Interviews | $20,000 | $20,000 | $20,000 | |
| G3HIGH | $28,000 | $28,000 | $28,000 | |||
| G4 | Productivity recapture rate | TEI methodology | 85% | 85% | 85% | |
| GtLOW | $238,680 | $238,680 | $238,680 | |||
| GtMID | Reduced business impact of unplanned infrastructure-related downtime affecting business-critical applications | G1*G2*G3*G4 | $552,500 | $552,500 | $552,500 | |
| GtHIGH | $990,080 | $990,080 | $990,080 | |||
| Three-year projected total: $716,040 - $2,970,240 | Three-year projected present value: $593,562 - $2,462,182 | |||||
Faster Infrastructure And Application Delivery Through Automation And Standardized Provisioning
Evidence and data. Interviewees and survey respondents said VCF 9 accelerated the delivery of infrastructure and application environments by standardizing provisioning workflows, reducing manual coordination, and enabling more automated deployment processes, including capabilities provided through VCF Automation. These improvements shortened the time required to stand up environments, support projects, and respond to business and development needs.
-
The director of architecture and infrastructure at an insurance organization described the change in delivery speed very clearly: “Before, [delivery speed was] five to seven days. After, [it was] a few hours. Improvement [was] 80%+.” In that same environment, provisioning and onboarding became materially faster as standardized provisioning workflows, policy-based operations, automation, and more self-service access to infrastructure resources reduced delivery times and improved developer productivity.
-
The same interviewee also connected the speed gain to business responsiveness, saying, “In a few hours, we are completing [it] from business side request to set up in infra.” The same interviewee noted that modular core systems could scale infrastructure rapidly when business demand increased, reducing delays tied to manual provisioning.
-
The chief information officer at a financial services organization described a dramatic improvement in developer and application environment delivery: “When they wanted to make a change in Azure, it could take them a week. … Now, they need something [and] it’s there.” The same interviewee estimated the shift as roughly five days and 1 hour, highlighting how standardized provisioning processes and automation reduced the time required to deliver infrastructure and application environments.
-
The service owner of virtualization at a manufacturer described the faster build out of infrastructure foundations that support downstream application delivery: “Today for a new workload domain … it takes one day. In the past, it was two to three days.” In that same environment, repeatable deployment made it possible to build, test, rebuild, and standardize environments much more quickly than before.
-
The vice president of platform cloud at a telecommunications organization framed the expected future-state improvement in similar terms, saying that integrated automation and hybrid cloud portability should move deployments from days down to hours. This interviewee reinforced that this improvement would come from using common automation, standardized patterns, and GitOps-style approaches across environments.
-
Survey respondents reinforced these interview themes. Respondents identified operational efficiency and automation as the top realized benefit area, and they reported the strongest productivity gains in provisioning virtual machines and containers, patching and upgrades, and infrastructure-related troubleshooting. Respondents also reported an average 13 hours saved per developer per month through self-service and automation and an 18% improvement in application delivery speed.
Modeling and assumptions. Based on the interviews and survey, Forrester assumes the following about the composite organization:
-
The composite organization fulfills a high annual volume of infrastructure and application delivery requests spanning new environments, updates to existing environments, and delivery work needed to support application and platform teams.
-
The modeled benefit reflects time savings from faster and more standardized delivery of infrastructure and application environments. It captures request-based delivery work rather than steady-state administration, network operations, or downtime reduction, which are modeled separately.
-
The average baseline time per request is based on interview and survey evidence, which shows that pre-VCF delivery often required multiple hours and, in some cases, multiple days because provisioning depended on manual coordination, operational handoffs across teams, fragmented tooling, and nonstandardized processes.
-
The reduction factor reflects the combined effect of automation and standardized provisioning enabled by VCF 9. This includes shorter delivery cycles for infrastructure environments, faster turnaround on internal requests, and reduced friction in supporting application teams.
-
The model assumes that the majority of the time savings is recaptured and redeployed to higher-value engineering and operational work. It does not assume additional business value from demand growth or increased request volume, which keeps the benefit focused on productivity improvement.
Results. This yields a three-year projected PV ranging from $1,803,356 (low) to $3,606,714 (high).
Benefit H Module: Range Of Three-Year Cumulative Impact, PV
Faster Infrastructure And Application Delivery Through Automation And Standardized Provisioning
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| H1 | Annual infrastructure and application delivery requests prior to VCF 9 | Composite | 7,500 | 7,500 | 7,500 | |
| H2LOW | 5 | 5 | 5 | |||
| H2MID | Average time required per infrastructure or application delivery request prior to VCF 9 (hours) | Interviews and survey | 6 | 6 | 6 | |
| H2HIGH | 7 | 7 | 7 | |||
| H3LOW | 35% | 35% | 35% | |||
| H3MID | Percentage of reduction in time required to deliver infrastructure and application environments due to automation and standardized provisioning enabled by VCF 9 | Interviews and survey | 45% | 45% | 45% | |
| H3HIGH | 50% | 50% | 50% | |||
| H4 | Fully burdened hourly rate for an app developer involved in delivery activities | Composite | $65 | $65 | $65 | |
| H5 | Productivity recapture rate | TEI methodology | 85% | 85% | 85% | |
| HtLOW | $725,156 | $725,156 | $725,156 | |||
| HtMID | Faster infrastructure and application delivery through automation and standardized provisioning | H1*H2*H3*H4*H5 | $1,118,813 | $1,118,813 | $1,118,813 | |
| HtHIGH | $1,450,313 | $1,450,313 | $1,450,313 | |||
| Three-year projected total: $2,175,468 - $4,350,939 | Three-year projected present value: $1,803,356 - $3,606,714 | |||||
Reduced Financial Exposure To Material Security Incidents
Evidence and data. Interviewees and survey respondents said VCF 9 reduced financial exposure to material security incidents by strengthening segmentation, improving visibility, and making response and recovery more effective. Rather than eliminating all security risk, interviewees described the platform as reducing the likelihood that incidents would spread broadly and limiting the operational and business consequences when security events occurred.
-
The head of global IT and security in healthcare connected the platform directly to avoided incident impact. In that same environment, the interviewee also associated the security and compliance improvements with approximately $1 million in compliance-related value, illustrating how stronger controls and resiliency reduced the financial exposure tied to major security events.
-
The chief information officer at a financial services organization emphasized how much harder it had become for attacks to spread, noting, “The risk of lateral movement is significantly narrowed.” In that same environment, this interviewee described microsegmentation as one of the most important outcomes of the broader platform, reducing the likelihood that a security event would become a larger business incident.
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The vice president of platform cloud in telecommunications described security as one of the central reasons their organization viewed VCF 9 as strategically important, particularly because stronger segmentation and integrated controls reduced the business risk associated with running critical telecom and enterprise workloads on a large, shared infrastructure foundation.
-
The service owner of virtualization at a manufacturing organization described security as the primary operational driver, stating, “Our focus is on security because we’re the only company in the world who can build those optics.” In that same environment, stronger segmentation and faster patching reduced the exposure associated with highly sensitive systems and data.
-
Survey respondents reinforced these interview themes. They identified security, compliance, and resiliency as major realized benefit areas, and respondents reported the strongest improvements in reduced downtime in the event of a cyberattack or other operational disruption, improved recovery readiness, and stronger security posture.
-
Interviewees described this benefit as distinct from operational security labor savings. The value here came from lowering the expected financial impact of significant security incidents by reducing the chance of serious events and the scale of disruption if one occurred.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
-
The composite organization faces a recurring baseline risk of material security incidents affecting critical systems, data, and business operations. This reflects the reality of a large enterprise operating complex, distributed infrastructure in environments where security events can have operational, remediation, and disruption costs.
-
The modeled benefit reflects a reduction in the expected financial exposure tied to material security incidents due to stronger security controls, better visibility, improved resilience, and more effective containment and recovery enabled by VCF 9.
-
The model uses a modest reduction in incident frequency and impact because interview evidence supported stronger security posture and narrower lateral movement risk, but interviewees generally framed this as risk reduction rather than the elimination of major incidents.
-
The average financial impact per incident is intended to capture response, remediation, and business disruption costs associated with significant security events. The model keeps this blended and conservative rather than stacking multiple separate security-loss categories.
-
This benefit is kept separate from compliance labor savings, vulnerability remediation efficiency, and downtime reduction. It captures the expected reduction in financial exposure from material incidents themselves rather than the labor effort associated with managing security operations.
Results. This yields a three-year projected PV ranging from $74,606 (low) to $397,896 (high).
Benefit I Module: Range Of Three-Year Cumulative Impact, PV
Reduced Financial Exposure To Material Security Incidents
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| I1 | Annual material security incidents prior to VCF 9 | Composite | 2 | 2 | 2 | |
| I2LOW | 10% | 10% | 10% | |||
| I2MID | Percentage of reduction in the frequency of material security incidents | Interviews | 15% | 15% | 15% | |
| I2HIGH | 20% | 20% | 20% | |||
| I3LOW | $150,000 | $150,000 | $150,000 | |||
| I3MID | Average financial impact per material security incident | Interviews | $250,000 | $250,000 | $250,000 | |
| I3HIGH | $400,000 | $400,000 | $400,000 | |||
| ItLOW | $30,000 | $30,000 | $30,000 | |||
| ItMID | Reduced financial exposure to material security incidents | I1*I2*I3 | $75,000 | $75,000 | $75,000 | |
| ItHIGH | $160,000 | $160,000 | $160,000 | |||
| Three-year projected total: $90,000 - $480,000 | Three-year projected present value: $74,606 - $397,896 | |||||
Reduced Compliance And Audit Effort Through Automation And Centralized Control Management
Evidence and data. Interviewees and survey respondents said VCF 9 reduced the effort required to support compliance and audit activities by improving centralized visibility, strengthening control consistency, and making it easier to document and validate the environment. Rather than eliminating governance work, the platform made reporting, validation, and audit support more efficient and more repeatable.
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The director of architecture and infrastructure at an insurance organization described the compliance posture after implementation, noting, “Our score is above the average in terms of compliance and the best practices.” In that same environment, their team used benchmark-style assessments and reporting against the VCF 9 environment, which reduced the amount of manual effort required to demonstrate alignment with expected controls.
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The same interviewee also explained, “They made compliance benchmarks with the locally set up VCF 9. ... [The environment was] compliant from the start in many areas.” This shift toward stronger baseline controls meant audit and compliance teams no longer had to manually gather as much evidence after the fact.
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The vice president of platform cloud at a telecommunications organization emphasized the operational importance of improved accountability and cost control visibility, noting, “The promise that it brings on the showback and chargeback abilities is very near and dear to us.” In that same environment, stronger oversight and centralized visibility were part of a broader push to make infrastructure governance more transparent and auditable.
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Survey respondents reinforced these interview themes. They reported improvements across security, compliance, and resiliency, including compliance audits and reporting, and they also indicated that centralized controls and stronger recovery readiness improved how teams managed regulated and business-critical environments.
-
Interviewees consistently framed this benefit as lower effort spent preparing reports, validating controls, and supporting audits in a more standardized environment. This made the benefit distinct from broader security-risk reduction and from day-to-day security operations efficiency.
Modeling and assumptions. Based on the interviews and survey, Forrester assumes the following about the composite organization:
-
The composite organization operates in a complex enterprise environment that requires recurring compliance, audit, and governance efforts to validate controls, prepare documentation, and support internal and external review activities.
-
The modeled benefit reflects reductions in labor effort for compliance and audit support enabled by stronger centralized control management, improved visibility, and more standardized reporting and validation processes in VCF 9.
-
The reduction percentage is based on interview direction and supported by survey feedback indicating improved compliance audits and reporting after adoption of VCF 9.
-
The model applies this benefit only to labor efficiency for compliance, audit, and governance personnel. It does not assume avoided fines, penalties, or audit findings, which keeps the benefit narrower and more defensible.
-
This benefit is kept separate from the modeled reduction in financial exposure to material security incidents and from vulnerability remediation efficiency. It specifically captures the reduced effort required to support compliance and audit work in a more centralized and controlled environment.
Results. This yields a three-year projected PV ranging from $82,439 (low) to $148,390 (high).
Benefit J Module: Range Of Three-Year Cumulative Impact, PV
13%
Reduction in manual compliance and audit effort in the medium-impact scenario
Reduced Compliance And Audit Effort Through Automation And Centralized Control Management
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| J1 | Annual compliance and audit labor hours prior to VCF 9 | Composite | 6,000 | 6,000 | 6,000 | |
| J2LOW | 10% | 10% | 10% | |||
| J2MID | Percentage of reduction in compliance and audit effort enabled by VCF 9 | Interviews | 13% | 13% | 13% | |
| J2HIGH | 18% | 18% | 18% | |||
| J3 | Fully burdened hourly rate for a compliance, audit, and governance personnel | Composite | $65 | $65 | $65 | |
| J4 | Productivity recapture rate | TEI methodology | 85% | 85% | 85% | |
| JtLOW | $33,150 | $33,150 | $33,150 | |||
| JtMID | Reduced compliance and audit effort through automation and centralized control management | J1*J2*J3*J4 | $43,095 | $43,095 | $43,095 | |
| JtHIGH | $59,670 | $59,670 | $59,670 | |||
| Three-year projected total: $99,450 - $179,010 | Three-year projected present value: $82,439 - $148,390 | |||||
Reduced Vulnerability Remediation Effort Through Improved Efficiency And Automation
Evidence and data. Interviewees said VCF 9 reduced the effort required to remediate vulnerabilities by improving patching workflows, centralizing administration, and making it easier to identify and address lifecycle issues across their organizations’ environments. Rather than eliminating security work, these improvements shortened remediation cycles and reduced the amount of manual coordination required across teams. Interviewees also noted that faster and more consistent remediation reduced vulnerability exposure windows and lessened risks associated with delayed response or manual execution.
-
The service owner of virtualization at a manufacturer described the improvement in patching and vulnerability response directly, saying, “If I patch the whole environment, I would say with VCF 9 [it’s] 30% faster.” In that same environment, the faster patching process reflected fewer manual steps and a quicker path to closing vulnerabilities across the infrastructure.
-
This interviewee also tied the improvement to centralized lifecycle management, noting, “With the whole thing with fleet management and the way to download patches … we can actually be faster than before.” This pointed to a more streamlined remediation process rather than simply more staff effort.
-
The side-by-side interview synthesis reinforced this pattern. It showed about 30% faster patching in manufacturing and 30% to 40% faster remediation in financial services, indicating that interviewees’ organizations were seeing measurable reductions in the time required to address vulnerabilities and apply fixes.
-
Survey respondents reinforced these interview themes through reported improvements in security posture, reduced downtime in the event of a cyberattack or operational disruption, and more efficient operations across infrastructure, security, and compliance teams. Taken together, these findings supported a distinct efficiency benefit tied to remediation effort rather than broader incident avoidance alone.
Modeling and assumptions. Based on the interviews and survey, Forrester assumes the following about the composite organization:
-
The composite organization dedicates a substantial amount of annual labor effort to vulnerability remediation activities across security and infrastructure teams. This includes identifying, prioritizing, patching, validating, and coordinating remediation work across business-critical environments.
-
The modeled benefit reflects reduced labor effort required to remediate vulnerabilities due to improved efficiency and automation enabled by VCF 9. It captures the operational work associated with remediation rather than the avoided business impact of major incidents, which is modeled separately.
-
The reduction range is based primarily on interview evidence showing materially faster patching and remediation cycles, supported by broader survey evidence pointing to improved security posture and more efficient security-related operations.
-
The model assumes that the majority of time savings is recaptured and redeployed to higher-value security and modernization priorities rather than resulting in direct headcount reduction. This reflects interview feedback that their organizations generally redirected security effort rather than eliminating roles.
-
This benefit is kept separate from the modeled reduction in financial exposure to material security incidents. Its value comes from the labor efficiency of faster remediation, while the incident benefit captures the expected reduction in the financial impact of serious security events.
Results. This yields a three-year projected PV ranging from $370,976 (low) to $618,294 (high).
Benefit K Module: Range Of Three-Year Cumulative Impact, PV
30% to 50%
Reduction in time required to remediate and patch improvements
Reduced Vulnerability Remediation Effort Through Improved Efficiency And Automation
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| K1 | Annual vulnerability remediation labor hours prior to VCF 9 | Composite | 9,000 | 9,000 | 9,000 | |
| K2LOW | 30% | 30% | 30% | |||
| K2MID | Percentage of reduction in time required to remediate vulnerabilities enabled by VCF 9 | Interviews | 40% | 40% | 40% | |
| K2HIGH | 50% | 50% | 50% | |||
| K3 | Fully burdened hourly rate for a security and vulnerability management personnel | Composite | $65 | $65 | $65 | |
| K4 | Productivity recapture rate | TEI methodology | 85% | 85% | 85% | |
| KtLOW | $149,175 | $149,175 | $149,175 | |||
| KtMID | Reduced vulnerability remediation effort through improved efficiency and automation | K1*K2*K3*K4 | $198,900 | $198,900 | $198,900 | |
| KtHIGH | $248,625 | $248,625 | $248,625 | |||
| Three-year projected total: $447,525 - $745,875 | Three-year projected present value: $370,976 - $618,294 | |||||
Unquantified Benefits
Interviewees and survey respondents mentioned the following additional benefits that their organizations experienced but were not able to quantify:
-
Improved adaptability of the infrastructure foundation. Interviewees described how a standardized, software-defined platform created a more flexible and extensible environment that can support evolving business and technology needs. Rather than requiring frequent redesigns or workarounds, their organizations could more easily adjust infrastructure to accommodate new requirements, improving long-term agility and maintainability.
-
Improved operational consistency and governance across environments. Interviewees reported that standardization across compute, storage, and networking reduced variability in how environments were configured and managed. This helped enforce best practices, improve governance, and reduce dependence on individual team expertise, especially in large or distributed organizations.
-
Stronger cross-team coordination and a more unified operating model. Interviewees said that consolidating infrastructure and management into a unified platform improved coordination between infrastructure, security, and application teams. This created a more aligned operating approach, reduced friction between groups, and improved shared visibility across environments.
-
Improved platform confidence to support long-term modernization initiatives. Interviewees described increased confidence in their infrastructure foundation after adopting VCF 9. This made it easier to pursue broader modernization efforts, including application transformation and platform standardization, without concern about underlying infrastructure limitations.
-
Greater alignment between infrastructure capabilities and business priorities. Interviewees said that moving to a more unified and standardized platform enabled their IT teams to better support business initiatives and respond to changing requirements. This improved their organizations’ ability to deliver on strategic objectives without being constrained by legacy infrastructure complexity.
Flexibility
The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement VCF 9 and later realize additional uses and business opportunities, including:
-
Enabling future adoption of advanced technologies such as AI, Kubernetes, and modern application platforms. Interviewees described VCF 9 as providing a standardized, software-defined foundation that supported emerging initiatives such as private AI services, Kubernetes-based application modernization, and cloud-native development. Interviewees indicated that this flexibility allowed their organizations to expand into these areas more easily over time, without requiring significant rearchitecture of their existing infrastructure.
-
Supporting expansion into hybrid, distributed, and geographically dispersed deployment models. Interviewees said VCF 9 enabled a more flexible operating model across on-premises, hybrid cloud, and edge environments. This allowed their organizations to deploy workloads across environments based on business and technical needs and to extend their infrastructure footprint without introducing additional complexity or fragmentation.
-
Providing a platform for incremental adoption of advanced services and capabilities over time. Interviewees described plans to expand their use of VCF 9 by adopting additional services such as advanced security, recovery, or networking capabilities. This ability to layer on new functionality over time allowed their organizations to realize additional value from the platform as their needs evolve rather than requiring new point solutions or major reinvestment.
Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Total Economic Impact Approach).
Analysis Of Costs
Quantified cost data as applied to the composite
Total Costs
| Ref. | Cost | Initial | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|---|
| Ltr | Implementation and ongoing costs | $880,425 | $9,870 | $9,870 | $9,870 | $910,035 | $904,970 |
| Mtr | Annual VCF 9 subscription | $0 | $5,760,000 | $5,760,000 | $5,760,000 | $17,280,000 | $14,324,267 |
| Total costs (risk-adjusted) | $880,425 | $5,769,870 | $5,769,870 | $5,769,870 | $18,190,035 | $15,229,237 |
Implementation And Ongoing Costs
Evidence and data. Interviewees said the primary costs associated with VCF 9 included initial implementation and migration effort and modest ongoing platform administration. These organizations also invested time in training and enablement activities to support adoption. Interviewees noted that available training, certification, and service entitlements could help support adoption and accelerate time to value. These costs were generally viewed as necessary to transition from fragmented environments to a more standardized and automated infrastructure foundation.
-
The director of architecture and infrastructure at an insurance organization described the implementation as structured and manageable, noting, “We started with a phased approach, including testing and validation before rollout.” In that environment, implementation effort was concentrated in upfront planning, deployment, and migration activities rather than extended disruption to operations.
-
The service owner of virtualization at a manufacturing organization described the importance of testing during implementation, saying, “We also use a lab environment just to test … and to validate everything.” This reflected the need for interviewees’ organizations to invest time and resources upfront to ensure a successful rollout and minimize downstream issues.
-
Interviewees consistently noted that implementation required coordination across teams and some level of professional services or internal effort, particularly when migrating from legacy or highly fragmented environments. However, several interviewees emphasized that this was a one-time effort tied to modernization rather than an ongoing cost burden.
-
Training and enablement were also part of the upfront investment. Interviewees described onboarding teams to new tools and workflows, including automation, lifecycle management, and integrated platform capabilities, to ensure successful adoption and long-term value realization.
-
Ongoing platform administration was described as relatively modest compared to pre-VCF environments. Interviewees said that centralized management and automation reduced the need for ongoing manual effort, although a baseline level of administration and monitoring remained necessary to operate the environment.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
-
The composite organization incurs an initial one-time implementation and migration cost reflecting planning, deployment, configuration, and transition from legacy environments to VCF 9. This cost is front-loaded and occurs prior to or during initial adoption.
-
The composite organization also incurs additional upfront costs for training, onboarding, and enablement to ensure that infrastructure and operations teams can effectively use VCF 9 capabilities, including automation and centralized management.
-
Ongoing costs are limited to a relatively small level of platform administration and management effort. This reflects interview feedback that VCF 9 simplifies ongoing operations but does not eliminate the need for basic system oversight and maintenance.
-
The model assumes that ongoing administrative costs remain stable over time and are not a primary cost driver relative to the initial implementation or the broader platform subscription, which is modeled separately.
Risks. The value of this cost can vary across organizations due to the following:
-
Variation in implementation scope and complexity. Organizations with highly customized or fragmented legacy environments may require more time, resources, or external support to complete migration and deployment activities.
-
Differences in internal expertise and training requirements. Organizations with less familiarity with VCF components or automation practices may incur higher training and enablement costs to support adoption.
-
Variation in deployment approach and scale. Organizations that adopt VCF 9 more broadly or more quickly across environments may incur higher upfront costs compared to those that take a phased or incremental approach.
-
Variation in hardware investment requirements. Hardware investment requirements may vary by organization depending on the condition of the existing environment, refresh timing, and deployment approach. The study does not separately model net-new hardware purchases as an implementation cost and instead focuses on implementation, migration, training, and ongoing administration costs identified by interviewees.
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 $905,000.
Implementation And Ongoing Costs
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| L1 | Initial platform implementation and migration costs | Composite | $800,000 | |||
| L2 | Training, onboarding, and enablement costs | Composite | $38,500 | |||
| L3 | Ongoing platform administration and management costs | Composite | $9,400 | $9,400 | $9,400 | |
| Lt | Implementation and ongoing costs | L1+L2+L3 | $838,500 | $9,400 | $9,400 | $9,400 |
| Risk adjustment | ↑5% | |||||
| Ltr | Implementation and ongoing costs (risk-adjusted) | $880,425 | $9,870 | $9,870 | $9,870 | |
| Three-year total: $910,035 | Three-year present value: $904,970 | |||||
Annual VCF 9 Subscription
Evidence and data. Interviewees said the primary ongoing cost of VCF 9 was the annual subscription, which included licensing and support for the integrated platform. Interviewees generally viewed this as a shift from multiple point-tool costs and fragmented licensing models to a more consolidated, recurring platform cost.
-
The chief information officer at a financial services organization said that, while the platform introduced a significant recurring cost, it aligned more directly with the scale and scope of the environment and reduced reliance on multiple vendors and licensing agreements.
-
The vice president of platform cloud in telecommunications described the subscription as being tied to environment size and configuration — particularly infrastructure footprint such as hosts and capacity. In that environment, the subscription scaled alongside infrastructure growth and usage.
-
Interviewees consistently noted that while subscription costs were higher than some legacy licensing models, they reflected a more comprehensive platform with integrated capabilities across compute, storage, networking, and management.
-
Interviewees framed the subscription as a predictable, transparent cost structure compared to fragmented spend across multiple vendors, tools, and infrastructure components in their organizations’ previous environments.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
-
The composite organization incurs an annual subscription cost for VCF 9 that reflects licensing and support for the integrated platform across compute, storage, networking, and management layers.
-
The subscription cost is tied to the scale of the environment, including infrastructure footprint, such as hosts, clusters, and capacity, and therefore remains consistent across the modeled period in a steady-state scenario.
-
The model uses a representative annual subscription level consistent with a large enterprise deployment based on interview ranges and scaling assumptions aligned to the composite organization profile.
-
The subscription is modeled as a recurring operational expense and represents the primary ongoing cost of the solution separate from one-time implementation and minimal ongoing administration costs.
Risks. The value of this cost can vary across organizations due to the following:
-
Variation in infrastructure scale and deployment footprint. Organizations with larger environments, higher core counts, or more extensive deployments will incur higher subscription costs.
-
Differences in components and services deployed. Organizations that adopt additional VCF components or advanced services may experience higher subscription costs compared to more limited deployments.
-
Vendor pricing structures and contract terms. Subscription pricing can vary based on enterprise agreements, discounting, contract duration, and negotiation outcomes.
Results. To account for these risks, Forrester adjusted this cost upward by 0%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $14.3 million.
Annual VCF 9 Subscription
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| M1 | Annual VCF 9 subscription | Composite | $5,760,000 | $5,760,000 | $5,760,000 | |
| Mt | Annual VCF 9 subscription | M1 | $0 | $5,760,000 | $5,760,000 | $5,760,000 |
| Risk adjustment | 0% | |||||
| Mtr | Annual VCF 9 subscription (risk-adjusted) | $0 | $5,760,000 | $5,760,000 | $5,760,000 | |
| Three-year total: $17,280,000 | Three-year present value: $14,324,267 | |||||
Financial Summary
Consolidated Three-Year, Risk-Adjusted Metrics
Three-Year Projected Financial Analysis For The Composite Organization
Cash Flow Analysis (Risk-Adjusted)
| Initial | Year 1 | Year 2 | Year 3 | Total | Present Value | |
|---|---|---|---|---|---|---|
| Total costs | ($880,425) | ($5,769,870) | ($5,769,870) | ($5,769,870) | ($18,190,035) | ($15,229,237) |
| Total benefits (low) | $0 | $7,603,293 | $8,149,251 | $8,480,042 | $24,232,586 | $20,018,185 |
| Total benefits (mid) | $0 | $10,291,982 | $10,639,799 | $10,972,207 | $31,903,988 | $26,393,152 |
| Total benefits (high) | $0 | $14,174,055 | $14,591,722 | $14,806,402 | $43,572,179 | $36,069,048 |
| Net benefits (low) | ($880,425) | $1,833,423 | $2,379,381 | $2,710,172 | $6,042,551 | $4,788,948 |
| Net benefits (mid) | ($880,425) | $4,522,112 | $4,869,929 | $5,202,337 | $13,713,953 | $11,163,915 |
| Net benefits (high) | ($880,425) | $8,404,185 | $8,821,852 | $9,036,532 | $25,382,144 | $20,839,811 |
| PROI (low) | 31% | |||||
| PROI (mid) | 73% | |||||
| PROI (high) | 137% |
Please Note
The financial results calculated in the Benefits and Costs sections can be used to determine the PROI and projected NPV for the composite organization’s investment. Forrester assumes a yearly discount rate of 10% for this analysis.
These risk-adjusted PROI and projected NPV values are determined by applying risk-adjustment factors to the unadjusted results in each Benefit and Cost section.
The initial investment column contains costs incurred at “time 0” or at the beginning of Year 1 that are not discounted. All other cash flows are discounted using the discount rate at the end of the year. PV calculations are calculated for each total cost and benefit estimate. NPV calculations in the summary tables are the sum of the initial investment and the discounted cash flows in each year. Sums and present value calculations of the Total Benefits, Total Costs, and Cash Flow tables may not exactly add up, as some rounding may occur.
From the information provided in the interviews and survey, Forrester constructed a New Technology: Projected Total Economic Impact™ (New Tech TEI) framework for those organizations considering an investment in VCF 9.
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 projected impact that VCF 9 can have on an organization.
Due Diligence
Interviewed Broadcom stakeholders and Forrester analysts to gather data relative to VCF 9.
Early-Implementation Interviews And Survey
Interviewed eight decision-makers and surveyed 55 respondents at organizations using VCF 9 in a pilot or beta stage to obtain data about projected costs, benefits, and risks.
Composite Organization
Designed a composite organization based on characteristics of the interviewees’ and survey respondents’ organizations.
Projected Financial Model Framework
Constructed a projected financial model representative of the interviews and survey using the New Tech TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewees and survey respondents.
Case Study
Employed four fundamental elements of New Tech TEI in modeling the investment’s potential impact: benefits, costs, flexibility, and risks. Given the increasing sophistication of ROI analyses related to IT investments, Forrester’s TEI methodology provides a complete picture of the total economic impact of purchase decisions. Please see Appendix A for additional information on the TEI methodology.
Total Economic Impact Approach
Projected benefits
Projected benefits represent the projected value the solution delivers to the business. The New Tech TEI methodology places equal weight on the measure of projected benefits and projected costs, allowing for a full examination of the solution’s effect on the entire organization.
Projected costs
Projected 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
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
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.”
Financial Terminology
Present value (PV)
The present or current value of (discounted) cost and benefit estimates given at an interest rate (the discount rate). The PVs of costs and benefits feed into the total NPV of cash flows.
Projected net present value (PNPV)
The projected 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.
Projected return on investment (PROI)
A project’s expected return in percentage terms. ROI is calculated by dividing net benefits (benefits less costs) by costs.
Discount rate
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%.
Productivity recapture rate
Productivity recapture reflects the percentage of time savings that is redeployed to higher-value engineering, operational, or business activities. Forrester applies productivity recapture assumptions to account for the fact that not all time savings translate directly into productive work or measurable business value.
Appendix A
NEW TECHNOLOGY: Projected Total Economic Impact
New Technology: Projected Total Economic Impact (New Tech TEI) is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists solution providers in communicating their value proposition to clients. The New Tech TEI methodology helps companies demonstrate, justify, and realize the tangible value of business and technology initiatives to both senior management and other key stakeholders.
Appendix B
Survey Demographics
[CONTENT]
| ROLE | |
|---|---|
| Director | 56% |
| Vice president | 35% |
| C-level executive | 9% |
[CONTENT]
| GEOGRAPHY | |
|---|---|
| EMEA | 36% |
| North America | 35% |
| APAC | 26% |
| LATAM | 4% |
[CONTENT]
| DEPARTMENT/FUNCTIONAL AREA | |
|---|---|
| IT (servers, storage, network, security) | 26% |
| Infrastructure and operations | 20% |
| Cloud platform | 18% |
| DevOps | 15% |
| Platform engineering | 9% |
| Application infrastructure | 7% |
| Site reliability engineering (SRE) | 5% |
[CONTENT]
| EMPLOYEES | |
|---|---|
| 5,000 to 9,999 | 29% |
| 2,500 to 4,999 | 22% |
| 10,000 to 19,999 | 18% |
| 1,000 to 2,499 | 15% |
| 20,000+ | 11% |
| 500–999 | 6% |
[CONTENT]
| INDUSTRY | |
|---|---|
| IT/technology services | 11% |
| Financial services | 9% |
| Healthcare | 7% |
| Telecommunications | 7% |
| Manufacturing/production of high-tech products | 7% |
| Insurance | 6% |
| Retail | 6% |
| Manufacturing/ production of industrial products | 6% |
| Construction and engineering | 4% |
| Entertainment, leisure, and hospitality | 4% |
| Government | 4% |
| Manufacturing/CPG | 4% |
| Media | 4% |
| Pharmaceuticals and medical equipment | 4% |
| Professional services | 4% |
| Advertising/marketing | 2% |
| Education and social services | 2% |
| Natural resources and mining | 2% |
| Primary production (agriculture, forestry, fishing, etc.) | 2% |
[CONTENT]
| ANNUAL REVENUE | |
|---|---|
| $750M to $999M | 24% |
| $1B to $2.9B | 24% |
| $500M to $749M | 18% |
| $3B to $4.9B | 16% |
| $5B to $9.9B | 15% |
| $10B+ | 4% |
Appendix C
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.
Disclosures
Readers should be aware of the following:
This study is commissioned by Broadcom 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 VCF 9.
Broadcom 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.
Broadcom provided the customer names for the interviews but did not participate in the interviews.
Forrester fielded the double-blind survey using a third-party survey partner.
Consulting Team:
Roger Nauth
Published
August 2026