The Total Economic Impact™ Of Dell Premier

Cost Savings And Business Benefits Enabled By Premier

A Forrester Total Economic Impact Study Commissioned By Dell Technologies and AMD, February 2024

Common challenges like fragmented processes, noncompliant purchases, rogue spending, security flaws, and device inconsistencies plague IT procurement teams, who are increasingly seeking automation. Dell Premier offers quick e-procurement and streamlined processes through a centralized online portal and integrations. These solutions enable productivity enhancements, risk management, and cost controls; and frees up procurement resources to focus on strategic initiatives.

Dell Premier brings innovation to e-procurement through its suite of complimentary tools designed to simplify and expand access to IT purchasing, asset management, and accelerated deployment. Dell Premier saves organizations time and money, and improves employee productivity.

Dell Premier offers a single site that is personalized for specific buying needs, with consistent pricing and products. IT procurement teams can customize solutions according to whether they need to digitally modernize locally or globally. For both local and global businesses, Dell integrates Premier with ERP systems to streamline the purchasing process for punchout or buyer-hosted catalogs. Dell’s API technology allows teams to extend their existing IT service management (ITSM) systems, even if they’re hosted by another provider, to Dell’s Premier purchasing environment. Dell customers can deploy any combination — if not all — of the solutions to best serve their business and IT needs.

Dell Technologies and AMD commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying Premier.1 Dell Technologies and AMD, who continually partner with each other to evolve their own technologies, are now also working together to provide modern data center solutions that power digital innovation for other businesses. The partnership seeks to advance technological boundaries, which will aid businesses in accelerating growth, optimizing operations, and minimizing risks. This study serves to equip readers with a comprehensive framework for evaluating Premier's potential financial impact, driving innovation by addressing challenges, enhancing efficiencies, and enabling next-generation outcomes.

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Return on investment (ROI)

324%324%

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Net present value (NPV)

$2.36M$2.36M

To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed six representatives at four organizations and surveyed 207 additional respondents with experience using Premier. Survey respondents came from organizations across 10 countries: 41% from APAC, 29% from EMEA, 20% from North America, and 10% from South America. Their organizations ranged in size, between 100 to more than 20,000 employees. For the purposes of this study, Forrester aggregated the interviewees’ experiences and combined the results into a single composite organization that is a global enterprise with $5 billion in annual revenue and has 25,000 employees, and 95% of employees interact directly with Premier through their ITSM system. The procurement team comprises 25 people and the composite organization’s annual spending averages $22.5 million, or $900 per employee. All financial findings presented in this study are based on the details of the composite organization.

purchases IT devices for about 0 employees, has 0 (estimated) procurement-team members, and receives approximately 0 procurement-related IT helpdesk tickets per year. Custom results are based on these inputs and the TEI case study.

Interviewees said that prior to using Premier, their organizations navigated decentralized IT procurement processes that demanded substantial time and effort to coordinate equipment orders across departments. Manual processes created common issues like inconsistent pricing and the lack of standardized device configurations for orders globally. This led to rogue spending and a loss of productivity across the organization.

After the investment in Premier, the interviewees gained access to a centralized IT purchasing platform that automates workflows, which creates efficiencies for procurement and IT teams as well as new hires. With standard configurations and custom personalized product bundles, teams can better control spending across all users. Access to Premier also enhances the relationship organizations share with their Dell representative, who engages in high-level strategic solutioning.

“What outcomes of working with Dell Premier have you experienced at your organization? (Select all that apply.)”

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Base: 207 global decision-makers who are managers and above in IT roles
Source: A commissioned study conducted by Forrester Consulting on behalf of Dell, November 2023

Key Findings

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

  • Increased efficiency of procurement team by 20%. The procurement team reduces the amount of resources dedicated to the entire procurement lifecycle from quoting through to delivery as a result of automation through Premier. This is worth $430,000 over a three-year term.

For with 0 procurement team members (estimate), this benefit might be worth over three years.

  • Increased efficiency of IT team due to 15% reduction in helpdesk tickets and 30 minutes saved per device on time to configure a system. The IT team gains efficiencies in two areas with process and device standardizations. Time spent on configuring Dell devices was cut by 30 minutes per device, and time dedicated to answering end users’ IT procurement-related helpdesk ticket requests was reduced by 15%. These are worth $449,000 over a three-year term.

For this benefit might be worth over three years.

  • Decreased device costs by 10% due to standardization. Device standardization prevents excessive procurement of devices for specific user groups and ensures negotiated discounts are applied consistently across orders. This saves the composite organization $2 million over a three-year period.

For this benefit might be worth over three years.

  • Increased new hire efficiency by receiving equipment 67% faster. Access to Dell equipment at the time of onboarding enables new hires to realize an improved speed to productivity. This generates value-add from new hires for the organization that is worth $249,000 over three years.

For this benefit might be worth over three years.

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

  • Increased ability for self-service. Premier’s platform is easy to navigate, which allows end users to procure Dell equipment without disrupting the procurement team. It also allows for cross-functional teams to complete necessary reporting and manage order statuses, purchase histories, and accounts.
  • Improved shipping accuracy. Accurate forecasting enables procurement teams and end users alike to effectively plan for periods of productivity spikes that require Dell devices, rather than waiting and wasting resources.
  • Strengthened relationship with Dell representative. Automation allows the Dell representative to focus on strategically supporting the organization’s future procurement direction, beyond providing order support and quote assistance.

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

  • Initial internal effort. Some internal effort is necessary for implementation and maintenance, more so in relation to integrations of internal systems (e.g., ERP, ITSM) to Premier. The initial setup took four FTEs (full time employees) three months to complete.

For , these costs could represent over three years.

  • Ongoing internal management and programmatic expenses. One and a half procurement FTEs dedicate their time to ongoing internal management and development of Premier. Configuration costs total $75,000 annually.

For , these costs could represent over three years.

The representative interviews and financial analysis found that a composite organization experiences benefits of $3.09 million over three years versus costs of $728,000, adding up to a net present value (NPV) of $2.36 million and an ROI of 324%.

might experience benefits of over three years versus costs of , adding up to an NPV of and an ROI of 0%.

Reduced annual Dell-related procurement effort:

Up to 20%

“Our company grows faster than processes sometimes allow. Dell Premier provided the answer that we needed. Where do we go to look at our quotes, orders, order our equipment, or download our invoices? Rather than having to juggle between three different Dell websites or engage our inside salesperson, there’s one central place where we can do everything.”

Head of IT operations, traffic control services and safety

Key Statistics

  • icon icon

    Return on investment (ROI)

    324%324%
  • icon icon

    Benefits PV

    $3.09M$3.09M
  • icon icon

    Net present value (NPV)

    $2.36M$2.36M
  • icon icon

    Payback

    <6 months<6 months
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  • icon icon
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Benefits (Three-Year)

Increased procurement team efficiency Increased IT team efficiency Decreased device costs due to standardization Increased new hire efficiency

TEI Framework And Methodology

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

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 Premier can have on an organization.

  1. Due Diligence

    Interviewed Dell stakeholders and Forrester analysts to gather data relative to Premier.

  2. Interviews and Survey

    Interviewed six representatives at four organizations and surveyed 207 respondents at organizations using Premier to obtain data about costs, benefits, and risks.

  3. Composite Organization

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

  4. Financial Model Framework

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

  5. Case Study

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

Disclosures and Disclaimers

Readers should be aware of the following:

This study is commissioned by Dell Technologies and AMD 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 Premier. For the interactive functionality using Configure Data/Custom Data, the intent is for the questions to solicit inputs specific to a prospect's business. Forrester believes that this analysis is representative of what companies may achieve with Dell Premier based on the inputs provided and any assumptions made. Forrester does not endorse Dell or its offerings. Although great care has been taken to ensure the accuracy and completeness of this model, Dell 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 Dell make no warranties of any kind.

Dell 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.

Dell 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

Sarah Lervold

Jonathan Lipsitz

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