Executive Summary

Enterprises are navigating an inflection point driven not only by a search for efficiencies in data, virtualization, and cloud computing but also by the rising demand for AI infrastructure. Traditional environments built on separate servers, storage, and networking systems have become increasingly fragmented, creating inefficiencies, slowing innovation, and limiting the ability to support conventional applications and emerging AI workloads. These challenges manifest as higher operational costs, extended deployment timelines, and difficulty scaling to meet dynamic, high-performance requirements. As a result, IT decision-makers are increasingly prioritizing integrated, software-driven platforms that can unify operations, improve agility, and provide a scalable foundation for AI and distributed applications, and stateless computing plays a critical role in enabling this transformation. The same agility that modernizes traditional infrastructure can become a strategic enabler for accelerating AI adoption.

Cisco Unified Computing System (UCS), including its management platform Intersight, addresses this market need by combining compute, networking, storage access, and virtualization into a single system. It can help enable rapid provisioning, centralized management, and efficient resource utilization in modern, virtualized, and cloud-ready environments. Furthermore, Intersight now serves as the compute layer for Cisco Cloud Control, Cisco’s unified platform for agentic IT operations that provides the cross-domain visibility and governance required for AI-ready infrastructure.

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

243%

Return on investment (ROI)

 

$15.4M

Net present value (NPV)

 

To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed nine decision-makers with experience using Cisco UCS. For the purposes of this study, Forrester aggregated the experiences of the interviewees and combined the results into a single composite organization, a global technology-driven enterprise with $10 billion in annual revenue and 15,000 employees. Its compute team of six manages 1,500 compute servers before deploying Cisco UCS.

Interviewees said that prior to using Cisco UCS, their organizations relied on complex and fragmented IT environments with limited automation and orchestration. This resulted in heavy and repetitive manual effort, poor scalability, frequent errors caused by configuration drift, slow and disruptive hardware refresh cycles, physical complexity leading to data center space and power constraints, and governance, security, and compliance challenges.

After the investment in Cisco UCS, interviewees reported substantial operational efficiency gains that reduced provisioning times from days or weeks to hours and enabled small teams to manage thousands of servers through automation and standardization. At the same time, they said Cisco UCS and Intersight improved security, reliability, and resilience, with proactive vulnerability detection, consistent configurations, and faster recovery reducing risk and downtime. These efficiencies translated into lower costs and greater strategic agility, allowing their organizations to scale infrastructure, optimize resources, and redirect IT staff toward higher-value, innovation-focused work.

Key Findings

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

  • Improved reliability and availability that results in $14.5 million in savings. Cisco UCS and Intersight strengthen reliability at the composite organization by reducing instances of unplanned downtime due to hardware and security issues. They also strengthen the organization’s security posture by standardizing configurations, automating patching, and providing centralized visibility, which reduces misconfiguration risk. The organization thus shifts from reactive to proactive security management. Cisco UCS and Intersight also cut mean time to resolve (MTTR) for unplanned outages from hours or days to minutes by enabling automated, orchestrated recovery processes with minimal disruption. These capabilities, combined with consistent configurations and centralized visibility, reduce outage risk, eliminate configuration-related failures, and support faster, more reliable remediation at scale.

  • Reduced hardware-related total cost of ownership (TCO) that delivers $5.6 million in cost savings. The organization reduces capital and operational costs by enabling denser infrastructure, fewer physical components, and longer hardware lifecycles. These efficiencies also lower data center footprint, cabling, and infrastructure complexity, reducing colocation costs and simplifying ongoing operations.

  • Redeployed IT labor that frees up $1.6 million in high-value time. Cisco UCS and Intersight dramatically improve IT productivity at the composite organization by automating provisioning, standardizing configurations, and enabling centralized management, reducing deployment times from weeks or months to hours or days. As a result, the organization manages a much larger environment with a lean team and redeploys staff from repetitive operational tasks to higher-value strategic initiatives.

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

  • Better IT team satisfaction and retention. Cisco UCS improves IT team satisfaction and retention by eliminating repetitive manual tasks and enabling engineers to focus on higher-value, strategic work. This shift reduces burnout, makes roles more engaging, and enhances career development, contributing to stronger morale and workforce stability.

  • Cleaner physical architecture. Cisco UCS creates a cleaner, more organized data center architecture by substantially reducing cabling complexity and standardizing layouts through blade chassis and fabric interconnects. This simplified design improves manageability, troubleshooting, and operational efficiency while reducing the clutter and constraints of traditional server environments.

  • Increased strategic agility and scalability. Cisco UCS materially improves strategic flexibility and scalability for the composite organization with policy-based provisioning using templates and pools and software-defined reconfiguration, which allows infrastructure to adapt quickly to changing business needs without hardware changes. This modular, centralized approach supports predictable growth, reduces operational constraints, and enables the composite to scale efficiently while preparing for future technologies and workloads.

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

  • Cisco UCS hardware costs of $5.5 million. The composite organization purchases 1,000 servers comprising approximately 60% blade and 40% rack servers and phases deployment over three years.

  • Internal deployment costs of $632,000. Cisco UCS planning and deployment is a front-loaded investment requiring cross-functional teams to spend time on architecture design, standardization, and scalability modeling, including defining templates, network configurations, and capacity for future growth. While resource-intensive up front, this effort shifts work from manual execution to design and enables long-term efficiencies in deployment, operations, and security.

  • Ongoing management and maintenance costs of $233,000. The organization purchases a support contract from Cisco to enhance the efforts of the lean team managing the infrastructure.

The financial analysis that is based on the interviews found that a composite organization experiences benefits of $21.7 million over three years versus costs of $6.3 million, adding up to a net present value (NPV) of $15.4 million and an ROI of 243%.

“Cisco UCS definitely helped us to grow fast. Without Intersight and UCS X-Series, I doubt we would have been able to meet our leadership’s requirements and absorb as many acquisitions as we did over the last three years, especially with such a small team.”

VP of technology, cloud compute engineering, financial services

Key Statistics

243%

Return on investment (ROI) 

$21.7M

Benefits PV 

$15.4M

Net present value (NPV) 

<6 months

Payback 

Benefits (Three-Year)

[CHART DIV CONTAINER]
Improved reliability and availability Reduced hardware-related TCO Redeployed IT labor

The Cisco UCS Customer Journey

Drivers leading to the UCS investment

Interviews

Role Industry Region Servers
Head of infrastructure and windows IT consulting Europe 100
Manager, VMware and X86 compute  Financial services United States 3,000
Infrastructure engineering lead Travel and hospitality Global 1,000
Subject matter expert (SME) for server hardware Financial services Global 2,000 to 3,000
VP of technology, cloud compute engineering Financial services United States 1,000
Senior infrastructure domain architect Healthcare United States 2,300
Senior infrastructure domain architect (same organization) Healthcare United States 2,300
Lead engineer, infrastructure team Healthcare United States (regional) 2,300
Senior infrastructure lead Healthcare United States 10,000

Key Challenges

The majority of interviewees described their environment before Cisco UCS as consisting primarily of traditional rack servers housed in multiple data centers (either owned or colocation facilities). They were either using Cisco’s legacy management software with earlier generation Cisco UCS servers or using competitive servers with those brands’ associated management software.

Before adopting Cisco UCS, interviewees consistently described a range of operational challenges that hindered efficiency, scalability, and organizational agility. These pain points were widespread across various industries, reflecting systemic issues in traditional server architectures. Key challenges included:

  • Heavy manual effort and repetitive work. Interviewees’ organizations relied heavily on manual processes to configure servers individually, often repeating the same steps hundreds of times. Small IT teams were overwhelmed managing hundreds of physical servers, with some engineers dedicating nearly all their time to server setup. Routine tasks such as provisioning, patching, and configuration required days (or longer) per server, resulting in months of delays for larger environments. This tedious, error-prone work led to burnout and limited time for strategic initiatives. The lead engineer on the infrastructure team at a healthcare company recalled: “Once you get to a certain scale, trying to manage servers where each one has to be individually configured is completely unreasonable. Just doing the same repetitive tasks over and over — I went crazy doing that.”

  • Poor scalability and high staffing requirements. As environments expanded, operational inefficiencies escalated. Interviewees’ organizations faced a stark choice between significantly increasing headcount or accepting slower delivery, heightened risks, and fragile operations. Some interviewees estimated they would have needed 50% to 200% more staff to scale their environments effectively without a more automated solution.

  • Configuration drift and frequent errors. Traditional setups resulted in unique server configurations, which increased the likelihood of missed settings, inconsistent firmware, and human error during changes. Network and connectivity issues arose frequently, particularly when virtual machines moved between hosts with differing configurations.

  • Limited or immature automation and orchestration. Automation efforts were fragmented and relied on ad hoc scripts, batch files, and poorly documented APIs. Orchestration across compute, network, and storage was virtually absent and required custom development for each platform. Scaling automation was labor-intensive, with limited vendor support or standardization. As described by the manager of VMware and X86 compute at a financial services company: “The orchestration that we were doing before that was batch files and Python scripts. People were automating, but we weren’t orchestrating at that higher level.”

  • Excessive cabling and physical complexity. Traditional rack servers necessitated five or more cables per server, which led to visually cluttered data centers that were difficult to troubleshoot, expensive to modify, and costly to provision and refresh. Network teams had to manage thousands of individual ports, adding coordination overhead and risk. Cable sprawl constrained data center layouts and slowed physical expansions. The SME for server hardware at a financial services company recalled, “We’d have hundreds of feet of copper running from one side of the data center to the other.”

  • Slow and disruptive hardware refresh cycles. Hardware refreshes were lengthy, manual, and risky and often took months to complete. Even modest server replacements required operating system reinstallations, networking reconfiguration, and extended maintenance windows, leading to disruptions in production workloads. Business users frequently experienced slowdowns or interruptions during refresh cycles.

  • Fragmented management and lack of central control. Environments spanned multiple vendors, hardware generations, and management tools, which created challenges in maintaining consistency and enforcing standards. Organizations lacked centralized visibility, leading to blind spots and shadow IT. Appliance servers frequently bypassed central teams, compounding governance challenges.

  • Governance, security, and compliance challenges. Security patching required manual tracking and execution, while inconsistent configurations made it difficult to prove compliance or detect vulnerabilities. Security teams struggled with timely visibility into patching needs, which increased risk exposure and complicated responses to advisories.

  • Data center space, power, and cooling constraints. Inefficient hardware designs consumed excessive rack space and power and forced organizations to spread equipment inefficiently across racks. Growth often necessitated expanding data center footprints instead of optimizing existing space, which drove up costs for power and cooling. The SME for server hardware at a financial services company recalled that, “Power constraints required us to spread our hardware out rather than keep it dense.”

Collectively, these challenges resulted in environments that were labor-intensive, slow to adapt, error-prone, and increasingly misaligned with the speed, security, and regulatory demands of modern businesses. The cumulative inefficiencies — not just hardware costs — were the primary drivers behind organizations’ transitions to Cisco UCS and its unified, automated platform.

“Any time we needed a new network put in service, we could expect to mysteriously find an issue at some point over the next couple weeks. So we would have to play a little game of whack-a-mole finding the places that weren’t quite set right.”

Lead engineer, infrastructure team, healthcare

Composite Organization

Based on the interviews, Forrester constructed a TEI framework, a composite company, and an ROI analysis that illustrates the areas financially affected. The composite organization is representative of the interviewees’ organizations, and it is used to present the aggregate financial analysis in the next section. The composite organization has the following characteristics:

  • Description of composite. The organization is a multinational, technology-driven company with $10 billion in annual revenue and 120 remote branch locations. A team of six engineers manages the company’s 1,000 servers, which encompass national, regional, and global compute operations.

  • Deployment characteristics. After spending between six months and one year evaluating proposals and preparing to move its operations to a new infrastructure, the composite organization replaces 50% of its compute infrastructure in Year 1 with Cisco UCS hardware managed by Intersight. It replaces an additional 35% of its compute infrastructure in Year 2 and the final 15% in Year 3.

 KEY ASSUMPTIONS

  • $10 billion annual revenue

  • 15,000 employees

  • 1,000 compute servers

  • Six compute IT team employees

Analysis Of Benefits

Quantified benefit data as applied to the composite

Total Benefits

Ref. Benefit Year 1 Year 2 Year 3 Total Present Value
Atr Improved reliability and availability $3,800,000 $6,400,000 $7,600,000 $17,800,000 $14,453,794
Btr Reduced hardware-related TCO $2,770,779 $2,274,233 $1,612,171 $6,657,183 $5,609,669
Ctr Redeployed IT labor $440,578 $723,636 $858,112 $2,022,326 $1,643,284
  Total benefits (risk-adjusted) $7,011,357 $9,397,869 $10,070,283 $26,479,509 $21,706,747

Improved Reliability And Availability

Evidence and data. Interview evidence indicates that Cisco UCS and Intersight delivered material improvements in business continuity and disaster recovery (DR) by reducing recovery times, minimizing outage impact, and enabling consistent, automated recovery processes. According to the VP of technology, cloud compute engineering at a financial services firm, “Stability is our top priority, and Cisco UCS gives us a platform that’s reliable and scalable across the environment.”

  • Across organizations, recovery and restoration times improved significantly due to stateless architecture and automation. The manager of VMware and X86 compute at a financial services firm reported server recovery taking 5 to 10 minutes versus hours or days previously, with operational tasks reduced from days to minutes. Their orchestration capabilities enabled controlled system recovery following a full DR site outage, with the manager stating, “It allowed us to orchestrate all of that power up sequence.” The two senior infrastructure domain architects at a healthcare company estimated that Cisco Intersight cut their MTTR by approximately 50%, thanks to features like automatic log uploads and proactive return material authorization. One recalled, “We wake up in the morning and someone’s knocking on the door to get into the data center with a part. We didn’t even know there was a problem yet.”

  • Interviewees also said UCS reduced business disruption, even during planned infrastructure events. The lead engineer on the infrastructure team at a healthcare company reported: “In two days, we were able to do a whole [server refresh]. To the business, it was as though [we] were just doing a patch cycle. Users didn’t even notice. Without Cisco UCS, we’d have been doing it for months.”

  • Interviewees found that being able to use policies to create templates and profiles enabled configuration consistency and drove improved resilience. Prior environments experienced configuration drift that led to outages when workloads moved across improperly configured systems. For instance, the lead engineer on the infrastructure team at a healthcare company described the following situation: “A virtual machine (VM) is running somewhere, and it happens to just migrate, which is something VMs do in virtual environments. And it would happen to move somewhere where the tech forgot to tag the network there. It would just not have networking — and boom, there would be an outage. We’d get all these random little outages like this.” They went on to explain that, using Cisco UCS’s centralized templates, “You make a template and you just make copies, so you know for sure that your stuff is provisioned and patched the way you expect.”

  • The improved visibility and centralized control Intersight provided were also critical to enhancing resiliency for interviewees. The head of infrastructure and windows at a European IT consulting firm emphasized the value of managing all of their Cisco UCS domains from a single interface. They said: “We have everything in one view. We come to the dashboard first, and we can see immediately if everything is working fine or not.” This centralization also reduced the risk of oversight, such as missed updates or expired licenses, that could result in downtime. The same head of infrastructure added, “Now we see much earlier … if there is a certificate missing or a contract is running out.”

Overall, interviewees reported that Cisco UCS and Intersight improved business continuity and DR by enabling rapid recovery, reducing disruption, eliminating configuration-driven outages, and supporting automated, repeatable recovery processes at scale.

Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:

  • Before deploying Cisco UCS, the organization experiences 58 hours of unplanned downtime annually (approximately 3.5 minutes per server). (Note: this number reflects interviewee estimates from organizations replacing recent generation Cisco servers. For organizations replacing older or competitive hardware, the legacy downtime could be 20 minutes per server [300 hours total annually] or more.)2

  • These outages cost the organization an average of $250,000 per hour.3

  • After deploying Cisco UCS with Intersight, the organization cuts outage frequency and duration to 20 total hours annually.

  • The organization recognizes this benefit at the rate it rolls in the Cisco UCS servers (50% in Year 1, 85% in Year 2, and 100% in Year 3).

  • Note: Forrester used a conservative estimate for legacy downtime.

Risks. The risks that might impact the financial value of this benefit are related to:

  • The frequency and type of unplanned outages an organization experiences before deploying Cisco UCS.

  • The time it takes to identify and repair a breakdown and the cost to remediate damage from an unplanned outage.

Results. To account for these risks, Forrester adjusted this benefit downward by 20%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $14.5 million.

38

Downtime hours avoided by Year 3

“With the fabric interconnects, you’re not constantly touching individual servers, which really helps with stability.”

SME for server hardware, financial services

Improved Reliability And Availability

Ref. Metric Metric Year 1 Year 2 Year 3
A1 Total unplanned downtime before Cisco UCS/Intersight (hours) Interviews 58 58 58
A2 Total unplanned downtime with Cisco UCS/Intersight (hours) Interviews 20 20 20
A3 Cisco UCS/Intersight roll-in rate Composite 50% 85% 100%
A4 Downtime avoided (hours) (A1-A2)*A3 19 32 38
A5 Average hourly cost of downtime Research data $250,000 $250,000 $250,000
At Improved reliability and availability A4*A5 $4,750,000 $8,000,000 $9,500,000
  Risk adjustment 20%      
Atr Improved reliability and availability (risk-adjusted)   $3,800,000 $6,400,000 $7,600,000
Three-year total: $17,800,000 Three-year present value: $14,453,794

Reduced Hardware-Related TCO

Evidence and data. Interviewees described meaningful reductions in hardware-related costs after adopting Cisco UCS, driven by needing fewer physical components (e.g., servers, cables, adapters), more efficient use of data center space, and the ability to extend hardware lifecycles. These savings reduced capex and ongoing opex, while also lowering the effort and risk associated with hardware refreshes and physical changes in the data center.

The largest impact resulted from replacing legacy (primarily rack) servers with denser and longer-lasting UCS blade servers. The move allowed interviewees’ organizations to replace at least three legacy servers with two UCS servers. Even though the Cisco UCS servers were slightly more expensive per server, the three-for-two exchange saved these organizations money up front.

Furthermore, the lead engineer on the infrastructure team at a healthcare company explained: “Blade servers are just more densely packed into the physical casing versus a traditional rack mount server. Blade servers usually also don’t have fans.” As a result, interviewees told Forrester they were able to shrink their infrastructure footprint significantly. The same lead engineer stated: “We used to have two giant data centers filled with equipment. Now we’re down to one [smaller] site.” By shrinking their footprint, interviewees explained that their colocation fees (i.e., the cost of owning and maintaining their own data centers) also shrank.

Interviewees highlighted substantial reductions in cabling, small form-factor pluggables, and network ports due to Cisco UCS modular architecture and fabric interconnects. Cisco UCS blade chassis are cabled at the chassis level rather than per server, which interviewees said dramatically reduced the number of cables and ports they needed to purchase, install, and maintain. As the lead engineer at the healthcare company explained: “With a blade server, you only cable the chassis part. A [Cisco UCS] chassis will have eight cables versus eight servers, each needing eight cables.”

While not quantified in this study, some interviewees also noted that deploying Cisco UCS servers allowed them to use a simplified rack design, which saved them the expense and lead times involved in specifying the custom racks they used in their legacy environments.

Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:

  • Before deploying Cisco UCS, the organization uses 1,500 competitive servers in its legacy environment. It refreshes these servers on a rolling basis (300 per year) over a five-year lifecycle.

  • Each server costs approximately $16,000.4

  • The reduction from 1,500 servers to 1,000 servers allows the organization to eliminate 17 racks annually, which reduces its footprint and thus its colocation costs by $204,000 per year (at a rate of $12,000 per rack).

  • Because Cisco UCS’s modular architecture reduces the number of cables required per server, the organization avoids the cost of refreshing them every five years. It replaces all its legacy copper cabling with fewer fiber optic cables, which are initially more expensive but are also more reliable.

  • Finally, the reduced cabling is associated with fewer ports per server. The 620 UCS blade servers and 380 UCS rack servers now require only 1,072 ports (as opposed to the 7,500 ports on the legacy servers). At an average cost of $760 per port, this saves the organization more than $1 million per year once UCS deployment is complete in Year 3.

  • The composite organization recognizes all these hardware cost savings as the new servers roll in at the rate of 50% in Year 1, 35% in Year 2, and the final 15% in Year 3.

Risks. The risks that might impact the financial value of this benefit are related to:

  • The number of servers an organization uses before and after deploying Cisco UCS.

  • The average cost of servers, cables, and ports before Cisco UCS.

  • The refresh rate/lifecycle an organization experiences before installing Cisco UCS.

  • The colocation fees or physical data center maintenance costs an organization incurs in its legacy environment.

Results. To account for these risks, Forrester adjusted this benefit downward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $5.6 million.

17

Racks of servers eliminated

“When you zoom out to what a row of racks looks like, how much of that space actually allows me to do work and how much is overhead? Cisco wins that hands down. … I have a pair of [fabric interconnects] and that’s pretty much all of the overhead.”

Manager of VMware and X86 compute, financial services

Reduced Hardware-Related TCO

Ref. Metric Source Year 1 Year 2 Year 3
B1 Legacy servers refreshed (five-year refresh cycle) Composite 300 300 300
B2 Legacy cost per server Composite $16,000 $16,000 $16,000
B3 Subtotal: Refresh costs avoided B1*B2 $4,800,000 $4,800,000 $4,800,000
B4 Racks eliminated Interviews 17 17 17
B5 Annual colocation fees per rack Composite $12,000 $12,000 $12,000
B6 Subtotal: Footprint reduction cost savings B4*B5 $204,000 $204,000 $204,000
B7 Cables required for 1,500 legacy servers Composite 7,500 7,500 7,500
B8 Copper cables refreshed on 1,500 legacy servers (five-year cycle) Composite 1,500 1,500 1,500
B9 Cost per copper cable (direct attach) Composite $115 $115 $115
B10 Fiber optic cables required for 1,000 Cisco UCS servers Interviews 1,072 1,072 1,072
B11 Cisco hardware purchase rate Composite 50% 35% 15%
B12 Cost per cable for fiber optic cable Composite $275 $275 $275
B13 Subtotal: Reduced cabling costs B8*B9-B10*B11*B12 $25,100 $69,320 $128,280
B14 Total legacy ports required Composite 7,500 7,500 7,500
B15 Total legacy ports refreshed Composite 1,500 1,500 1,500
B16 Average cost per port Composite $760 $760 $760
B17 Total Cisco UCS ports required Interviews 1,072 1,072 1,072
B18 Cisco UCS hardware purchase rate B11 50% 35% 15%
B19 Subtotal: Reduced port costs B15*B16-B17*B16*B18 $732,640 $854,848 $1,017,792
Bt Reduced hardware-related TCO ((B6+B3)*B11) +B13+B19 $3,259,740 $2,675,568 $1,896,672
  Risk adjustment 15%      
Btr Reduced hardware-related TCO (risk-adjusted)   $2,770,779 $2,274,233 $1,612,171
Three-year total: $6,657,183 Three-year present value: $5,609,669

Redeployed IT Labor

Evidence and data. Interviewees reported that Cisco UCS and Intersight materially increased IT team productivity by automating routine tasks, standardizing configurations, and enabling centralized management across compute, network, network operations center (NOC), and support teams. These capabilities not only reduced manual effort and allowed teams to scale operations without proportional increases in staffing but they also enabled redeployment of scarce IT resources to accelerate the accomplishment of strategic priorities for the business.

  • Across compute teams, Cisco UCS accelerated provisioning and lifecycle management. Before Cisco UCS, server deployment was highly manual and time-intensive, requiring one to two days per server and creating multiyear workloads at scale. In contrast, Cisco UCS reduced provisioning to less than one day per server, with interviewees noting that full environment refreshes were completed in days. The manager of VMware and X86 compute at a financial services firm reported: “We were able to transition all of those domains without rebuilding anything and that saved us — I couldn’t even begin to tell you — tons and tons of engineering hours because … we were able to upgrade in situ. That’s more engineering time for me and my team to look more toward the future.” At enterprise scale, provisioning times decreased from six to eight weeks per blade to approximately 2.5 hours, with the ability to deploy dozens of systems in parallel. The same manager told Forrester: “If I need to replace a server, I just associate the server profile and I’m done. I don’t have to rebuild anything.”

  • Automation and orchestration also enabled leaner staffing models. The manager of VMware and X86 engineering at a financial services firm with 3,000 servers said they use a team of nine to manage all the physical hosts. Without Cisco UCS automation, they estimated needing 12 to 15 staff to do so. This productivity gain allowed their engineers to shift focus away from repetitive execution toward higher-value work. The lead engineer on the infrastructure team at a healthcare organization echoed: “Once it’s running, it just runs. We don’t spend much time in the data center anymore.”

  • Network teams similarly benefited from Cisco UCS’s unified fabric and simplified architecture. By consolidating connectivity at the chassis level, Cisco UCS dramatically reduced cabling and configuration effort. As the lead engineer on the infrastructure team at a healthcare company described, “We have about 100 hypervisors and about 4,000 virtual machines, and the network team has to configure a grand total of eight network ports.” The SME for server hardware in financial services relayed a similar experience, “If there are fewer network cables to plug in, there are fewer network ports for the network team to have to configure, so it’s saving them time.” This consolidation reduced manual configuration steps, lowered error rates, and accelerated deployment of network resources.

  • For operations teams, standardized templates and centralized management reduced incident volume and troubleshooting time. In pre- Cisco UCS environments, inconsistent configurations frequently caused outages when workloads moved between servers. With Cisco UCS policies and templates, teams reported predictable, uniform configurations. Routine operations were also streamlined, with activities such as patching reduced to approximately 3 hours per quarter and executed centrally.

  • Support teams experienced additional productivity gains through automation, proactive monitoring, and simplified lifecycle management. Cisco UCS’s stateless compute infrastructure, delivered via templated server profiles, created portability across physical hardware. According to the lead engineer on the infrastructure team at a healthcare company: “In the olden days, if you bought a server and you needed more network cards in it later, you would have to physically buy those parts and stick them in your server. With Cisco UCS, you can just change a setting and you have those things. Even if they weren’t very expensive, there was just the sheer bureaucracy and paperwork involved in purchasing those supplies.”

  • Finally, centralized management enhanced cross-team collaboration and reduced duplication of effort. Interviewees said that previously, their teams maintained multiple independent environments and replicated configurations manually; with Cisco Intersight, templates and policies were applied across domains from a single control plane, improving consistency and reducing administrative overhead. This further contributed to their organizations’ ability to scale operations and support growth without increasing operational complexity or staffing proportionally. The VP of technology, cloud compute engineering at a financial services firm reported, “We have around a thousand physical servers … and there are only two fulltime employees managing the full lifecycle.”

Overall, the evidence shows that Cisco UCS and Intersight improved IT team productivity by compressing provisioning timelines (from weeks or months to hours or days), reducing operational effort through automation and standardization, simplifying network and infrastructure management, and enabling teams to manage significantly larger environments with the same or fewer resources.

Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:

  • Before deploying Cisco UCS, the organization employs six compute team members. With Cisco UCS in place, IT management redeploys 4.5 compute team members by Year 3.

    • These team members are redeployed to advance other compute function projects (such as building and improving automation frameworks, taking on more advanced infrastructure optimization, and exploring new architectural capabilities and innovations), thus accelerating the time to value for those critical projects.
    • The compute labor productivity improvements take place over the course of the three years in keeping with the rate of Cisco UCS deployment.
    • The average fully burdened annual salary for a compute team member is $135,542.5

  • Similarly, the reduced complexity of the networking requirements for Cisco UCS allow the networking team of 12 employees to redeploy 2.5 FTEs by Year 3.

    • This time is applied toward completing higher-value networking projects on accelerated timelines.
    • The networking labor productivity improvements take place over the course of the three years in keeping with the rate of Cisco UCS deployment.
    • The average fully burdened annual salary for a networking team member is $135,542.6

  • The team of 10 support and overhead employees who work on hardware-related tickets save 10% of their time supporting Cisco UCS rather than the legacy estate by Year 3. These savings are recognized at the rate of 5%/8.5%/10% in keeping with the roll-in rate of the Cisco UCS hardware.

    • Forrester assumes a productivity recapture rate of 50% for the support and overhead team.
    • The average fully burdened annual salary for a support and overhead team member is $121,500.7

Risks. The risks that might impact the financial value of this benefit are related to:

  • The number of employees on an organization’s compute, networking, and support teams.

  • The average fully burdened annual salaries for the involved employees.

Results. To account for these risks, Forrester adjusted this benefit downward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $1.6 million.

6+

Compute and network FTEs redeployed

“I can definitely say that we manage this infrastructure with two full-time employees only because we have Cisco UCS X and Intersight.”  

VP of technology, cloud compute engineering, financial services

Redeployed IT Labor

Ref. Metric Source Year 1 Year 2 Year 3
C1 Compute team members Composite 6.0 6.0 6.0
C2 Compute FTEs redeployed Interviews 2.3 3.8 4.5
C3 Fully burdened annual salary for a compute team member Research data $135,542 $135,542 $135,542
C4 Subtotal: Compute labor redeployed C2*C3 $311,747 $515,060 $609,939
C5 Network and NOC team members Composite 12 12 12
C6 Network FTEs redeployed Interviews 1.3 2.1 2.5
C7 Fully burdened annual salary for a network team member Research data $135,542 $135,542 $135,542
C8 Subtotal: Network labor redeployed C6*C7 $176,205 $284,638 $338,855
C9 Support and overhead team members Composite 10 10 10
C10 Productivity improvement Interviews 5% 8.5% 10%
C11 Fully burdened annual salary for a support and overhead team member Research data $121,500 $121,500 $121,500
C12 Productivity recapture TEI methodology 50% 50% 50%
C13 Subtotal: Improved support productivity C9*C10*C11 *C12 $30,375 $51,638 $60,750
Ct Redeployed IT labor C4+C8+C13 $518,327 $851,336 $1,009,544
  Risk adjustment 15%      
Ctr Redeployed IT labor (risk-adjusted)   $440,578 $723,636 $858,112
Three-year total: $2,022,326 Three-year present value: $1,643,284

Unquantified Benefits

Interviewees mentioned the following additional benefits that their organizations experienced but were not able to quantify:

  • IT team satisfaction and retention. Interviewees described a clear but largely unquantified benefit of improved IT team satisfaction, engagement, and retention from eliminating repetitive, manual work and gaining the ability to focus on higher-value activities. Before Cisco UCS, engineers often spent significant time performing monotonous, manual tasks, such as provisioning hundreds of servers individually. The lead engineer on the infrastructure team at a healthcare company characterized this type of work: “The team was doing the same repetitive task over and over. I would go crazy doing that.” With Cisco UCS’s automation and template-based provisioning, these tasks were largely removed. The manager of VMware and X86 compute at a financial services firm explained that this allowed teams to avoid “exhausting themselves, taking the same command a thousand times,” and to instead “think about some new thing that is going to help us accelerate and track even greater growth.”
    Interviewees emphasized that this shift not only reduced burnout but also made roles more intellectually engaging, enabling staff to develop new skills and contribute strategically rather than operationally. Additionally, the lead engineer on the infrastructure team at a healthcare company pointed out that the specialized nature of Cisco UCS expertise was professionally valuable, saying, “It’s kind of a rare skill set,” further reinforcing retention by increasing career opportunities and job satisfaction. Collectively, these factors point to a qualitative but meaningful improvement in workforce morale and stability, as teams transitioned from labor-intensive maintenance toward more rewarding, forward-looking engineering work.

  • Cleaner physical architecture. Interviewees also described a meaningful qualitative benefit of Cisco UCS as creating a cleaner and more orderly physical architecture within the data center, driven primarily by reduced cabling, simplified layouts, and standardized rack designs. By leveraging blade chassis and fabric interconnects, their organizations dramatically decreased the volume and complexity of connections. The lead engineer on the architecture team at a healthcare company explained that instead of managing 10 cables for every server, Cisco UCS allows consolidation so that “a chassis will have far fewer cables.”
    The manager of VMware and X86 compute at a financial services company highlighted that UCS enabled “very little extra cabling inside of our racks” and eliminated the need for copper in favor of fiber connections. They noted, “I got away from any copper, which was a big concern for us.” Interviewees emphasized that beyond aesthetics, this cleaner architecture improved manageability, made it easier to understand and troubleshoot environments, and reduced the operational friction associated with dense, tangled cabling and ad hoc hardware additions.

Flexibility

The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement Cisco UCS and later realize additional uses and business opportunities, including:

  • Strategic agility and scalability. Interviewees consistently described Cisco UCS as enabling significant strategic flexibility and scalability, allowing their organizations to adapt infrastructure rapidly in response to growth, changing business requirements, and future technology demands. This flexibility was achieved through a combination of profile-based provisioning, centralized orchestration, and modular architecture, which together decoupled workloads from specific hardware and reduced the operational constraints typically associated with scaling environments.
    A core enabler of this agility was Cisco UCS’s ability to treat compute resources as interchangeable, standardized components. Interviewees emphasized that servers no longer needed to be configured individually but could instead be rapidly provisioned or reconfigured using templates and server profiles, supporting planned growth and time-sensitive initiatives.
    Organizations also gained agility from being able to easily adapt infrastructure to evolving workload requirements. Cisco UCS enabled dynamic reconfiguration of network, compute, and storage characteristics through software-defined policies, avoiding the need for hardware changes. One interviewee said that capabilities such as adjusting network interface allocations could be achieved through configuration rather than physical upgrades, eliminating delays associated with procurement and installation. This allowed their organization to respond more quickly to changing application needs, new technologies, and emerging workloads such as AI.
    Additionally, interviewees highlighted Cisco UCS’s role in enabling long-term scalability through modular design and forward planning. Their organizations prebuilt capacity into their environments — such as deploying additional chassis and cabling in advance — and then populated them incrementally as demand increased. As a result, scaling became a predictable, low-friction exercise rather than a disruptive project.

Interviewees emphasized the future-facing benefits of this flexibility. By reducing dependency on manual processes and rigid hardware configurations, Cisco UCS positions their organizations to support continued growth, increasing regulatory demands, and evolving architectural models (e.g., hybrid cloud and high-performance workloads). Teams that previously would have needed to expand staffing were able to scale infrastructure without proportional increases in headcount, enabling them to pursue new initiatives and innovations rather than being constrained by operational overhead.

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
Dtr Cisco UCS hardware cost $1,300,140 $2,210,238 $2,600,280 $0 $6,110,659 $5,458,440
Etr Internal deployment costs $497,536 $124,384 $25,938 $0 $647,858 $632,049
Ftr Ongoing management and maintenance $40,862 $69,465 $81,723 $81,723 $273,774 $232,952
  Total costs (risk-adjusted) $1,838,538 $2,404,087 $2,707,942 $81,723 $7,032,291 $6,323,441

Cisco UCS Hardware Cost

Evidence and data. Interviewees explained that they purchased a combination of UCS blade and rack servers from Cisco or its partners and that the cost of the servers included the hardware itself, appropriate fabric interconnects, and licensing fees for Intersight platform management. Pricing may vary. Contact Cisco for additional information.

Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:

  • The organization deploys 1,000 Cisco UCS servers, comprising 62% blades and 38% rack servers.

    • The annual cost per blade server, including Cisco Intersight licensing, is $18,840.8
    • The annual cost per rack server, including Cisco Intersight licensing, is $14,880.9
    • The organization purchases the hardware as it rolls it out — 50% before Year 1 (the Initial period), 35% more before Year 2, and the final 15% before Year 3.

Risks. The risks that might impact the financial value of this cost are related to:

  • The number and mix of servers deployed.

  • The actual price per server.

Results. To account for these risks, Forrester adjusted this cost upward by 5%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $5.5 million.

Cisco UCS Hardware Cost

Ref. Metric Source Initial Year 1 Year 2 Year 3
D1 Total Cisco UCS blade servers deployed Composite 310 527 620 0
D2 Cost per blade server (including hardware, fabric, and Intersight) Cisco $18,840 $18,840 $18,840 $18,840
D3 Total Cisco UCS rack servers deployed Composite 190 323 380 0
D4 Cost per rack server (including hardware, fabric, and Intersight) Cisco $14,880 $14,880 $14,880 $14,880
D5 Total server cost D1*D2+D3*D4 $8,667,600 $14,734,920 $17,335,200 $0
D6 Annualized cost D5/7 $1,238,229 $2,104,989 $2,476,457 $0
Dt Cisco UCS hardware cost D6 $1,238,229 $2,104,989 $2,476,457 $0
  Risk adjustment 5%        
Dtr Cisco UCS hardware cost (risk-adjusted)   $1,300,140 $2,210,238 $2,600,280 $0
Three-year total: $6,110,659 Three-year present value: $5,458,440

Internal Deployment Costs

Evidence and data. Interviewees described the planning and design phase of the Cisco UCS deployment as deliberate, cross-functional, and front-loaded, requiring coordination between infrastructure, networking, and architecture teams to define standards, capacity, and operational models before implementation began. This phase was characterized by detailed evaluation, architectural modeling, and up-front standardization efforts, which interviewees emphasized were essential to realizing the later benefits of automation, scalability, and operational efficiency.

Internal teams defined target-state architecture and deployment patterns. This included determining domain sizes, rack layouts, and scalability limits; for example, optimizing configurations such as blade counts per domain to ensure performance characteristics (e.g., near line-rate bandwidth per server). Infrastructure teams spent time modeling how environments would scale over time, including planning for multiple growth cycles rather than immediate needs.

Engineering resources defined baseline configurations for compute, network, and firmware, which would later be encapsulated in Cisco UCS server profiles and templates. This required careful coordination with network teams to define VLANs, addressing schemes, and connectivity models, as well as agreement on firmware levels and lifecycle policies. Interviewees emphasized that this up-front work replaced the need for repeated per-server configuration later, effectively shifting effort from execution to design.

Interviewees also highlighted the importance of up-front learning and training, noting that Cisco UCS required an initial investment in understanding its model. However, they indicated that this learning curve was manageable (comprising a day or two of focused training) and enabled more efficient operations thereafter.

Finally, the planning phase included forward-looking considerations for resilience and security, such as designing multisite deployments for redundancy, enabling centralized management through Intersight, and ensuring that automation and orchestration could support regulated operational requirements. This included designing for scenarios such as DR environments and ensuring environments were architected to minimize lateral movement in the event of compromise.

Overall, interviewees described the planning and design phase as a resource-intensive but high-value investment, where cross-functional teams concentrated effort on architecture, standardization, and scalability. This upfront work enabled downstream efficiencies in deployment, operations, and security, and was seen as foundational to realizing the broader benefits of Cisco UCS.

Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:

  • The compute team spends most of its time over a four-month period on activities such as requirements gathering, capacity planning, architecture and design decisions, network and connectivity planning, storage integration planning, Cisco UCS server profile strategy, strategy and compliance planning, documentation, and transition planning.

  • The same team then rolls out the new hardware:

    • The entire team spends approximately 20% of its time installing and provisioning the first 500 servers before Year 1.
    • Four members spend approximately 20% of their time installing and provisioning the next 350 servers before Year 2.
    • It takes two team members less than one month to deploy the final 150 servers before Year 3.

  • The fully burdened hourly rate for a compute team member is $65.

Risks. The risks that might impact the financial value of this cost are related to:

  • The extent and complexity of the planning and design requirements.

  • The speed at which a team rolls out the hardware.

  • The average salaries of the team members involved in these activities.

Results. To account for these risks, Forrester adjusted this cost upward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $632,000.

Internal Deployment Costs

Ref. Metric Source Initial Year 1 Year 2 Year 3
E1 Time devoted to predeployment planning (hours) Interviews 4,160 0 0 0
E2 Time devoted to server deployment (hours) Interviews 2,496 1,664 347 0
E3 Fully burdened hourly rate for a compute team member C3/2,080 $65 $65 $65 $65
Et Internal deployment costs (E1+E2)*E3 $432,640 $108,160 $22,555 $0
  Risk adjustment 15%        
Etr Internal deployment costs (risk-adjusted)   $497,536 $124,384 $25,938 $0
Three-year total: $647,858 Three-year present value: $632,049

Ongoing Management And Maintenance

Evidence and data. Interviewees described ongoing Cisco UCS maintenance as highly automated and low-touch, requiring relatively limited internal resource effort compared to legacy environments. Activities primarily involved periodic patching, monitoring alerts, and refining automation. The manager of VMware and X86 compute at a financial services organization noted quarterly patch cycles took approximately 3 hours to complete across the environment. Teams also spent time maintaining and improving automation code.

Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:

  • While 1.5 FTEs continue to maintain and manage the compute infrastructure with Cisco UCS, their cost has already been accounted for in Benefit C, where 1.5 of the original six compute team members remain dedicated to that management and maintenance role.

  • The organization also purchases a support package from Cisco at a cost of $74,294 per year at full deployment (Year 3).

Risks. The risks that might impact the financial value of this cost are related to the specific support package an organization purchases.

Results. To account for these risks, Forrester adjusted this cost upward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $233,000.

Ongoing Management And Maintenance

Ref. Metric Source Initial Year 1 Year 2 Year 3
F1 Annual support contract fees Interviews $37,147 $63,150 $74,294 $74,294
Ft Ongoing management and maintenance F1 $37,147 $63,150 $74,294 $74,294
  Risk adjustment 10%        
Ftr Ongoing management and maintenance (risk-adjusted)   $40,862 $69,465 $81,723 $81,723
Three-year total: $273,774 Three-year present value: $232,952

Financial Summary

Consolidated Three-Year, Risk-Adjusted Metrics

Cash Flow Chart (Risk-Adjusted)

[CHART DIV CONTAINER]
Total costs Total benefits Cumulative net benefits Initial Year 1 Year 2 Year 3

Cash Flow Analysis (Risk-Adjusted)

  Initial Year 1 Year 2 Year 3 Total Present Value
Total costs ($1,838,538) ($2,404,087) ($2,707,942) ($81,723) ($7,032,291) ($6,323,441)
Total benefits $0 $7,011,357 $9,397,869 $10,070,283 $26,479,509 $21,706,747
Net benefits ($1,838,538) $4,607,270 $6,689,927 $9,988,560 $19,447,218 $15,383,306
ROI           243%
Payback           <6 months

 Please Note

The financial results calculated in the Benefits and Costs sections can be used to determine the ROI, NPV, and payback period for the composite organization’s investment. Forrester assumes a yearly discount rate of 10% for this analysis.

These risk-adjusted ROI, NPV, and payback period values are determined by applying risk-adjustment factors to the unadjusted results in each Benefit and Cost section.

The initial investment column contains costs incurred at “time 0” or at the beginning of Year 1 that are not discounted. All other cash flows are discounted using the discount rate at the end of the year. PV calculations are calculated for each total cost and benefit estimate. NPV calculations in the summary tables are the sum of the initial investment and the discounted cash flows in each year. Sums and present value calculations of the Total Benefits, Total Costs, and Cash Flow tables may not exactly add up, as some rounding may occur.

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

The objective of the framework is to identify the cost, benefit, flexibility, and risk factors that affect the investment decision. Forrester took a multistep approach to evaluate the impact that Cisco UCS can have on an organization.

Due Diligence

Interviewed Cisco stakeholders and Forrester analysts to gather data relative to Cisco UCS.

Interviews

Interviewed nine decision-makers at organizations using Cisco UCS to obtain data about costs, benefits, and risks.

Composite Organization

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

Financial Model Framework

Constructed a financial model representative of the interviews using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewees.

Case Study

Employed four fundamental elements of TEI in modeling the investment impact: benefits, costs, flexibility, and risks. Given the increasing sophistication of ROI analyses related to IT investments, Forrester’s TEI methodology provides a complete picture of the total economic impact of purchase decisions. Please see Appendix A for additional information on the TEI methodology.

Total Economic Impact Approach

Benefits

Benefits represent the value the solution delivers to the business. The TEI methodology places equal weight on the measure of benefits and costs, allowing for a full examination of the solution’s effect on the entire organization.

Costs

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.

Net present value (NPV)

The present or current value of (discounted) future net cash flows given an interest rate (the discount rate). A positive project NPV normally indicates that the investment should be made unless other projects have higher NPVs.

Return on investment (ROI)

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%.

Payback

The breakeven point for an investment. This is the point in time at which net benefits (benefits minus costs) equal initial investment or cost.

Appendix A

Total Economic Impact

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.

Appendix B

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.

2 Source: 2024-2025 Global Server Hardware, Server OS Reliability Results, ITIC, April 2025.

3 Ibid.

4 The research for this study was completed before recent scarcity pricing actions, which have significantly increased the cost of memory and storage.

5 Source: Modeled Wage Estimates (MWE) : U.S. Bureau of Labor Statistics

6 Source: Bureau of Labor Statistics, One-Screen Data Search

7 Source: Modeled Wage Estimates (MWE) : U.S. Bureau of Labor Statistics

8 The research for this study was completed before recent scarcity pricing actions, which have significantly increased the cost of memory and storage.

Disclosures

Readers should be aware of the following:

This study is commissioned by Cisco 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 UCS. For any interactive functionality, the intent is for the questions to solicit inputs specific to a prospect’s business. Forrester believes that this analysis is representative of what companies may achieve with UCS based on the inputs provided and any assumptions made. Forrester does not endorse Cisco or its offerings. Although great care has been taken to ensure the accuracy and completeness of this model, Cisco and Forrester Research are unable to accept any legal responsibility for any actions taken on the basis of the information contained herein. The interactive tool is provided ‘AS IS,’ and Forrester and Cisco make no warranties of any kind.

Cisco 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.

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

Consulting Team:

Kim Finnerty

Published

August 2026