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Total Economic Impact
Cost Savings And Business Benefits Enabled By Enterprise DaaS
A FORRESTER TOTAL ECONOMIC IMPACT STUDY COMMISSIONED BY devicenow, JANUARY 2026
Total Economic Impact
A FORRESTER TOTAL ECONOMIC IMPACT STUDY COMMISSIONED BY devicenow, JANUARY 2026
As rapid hardware obsolescence challenges traditional IT procurement, companies are increasingly turning to more flexible and scalable solutions. The rise of device as a service (DaaS) reflects a shift toward subscription-based models that reduce upfront capital expenditure (capex), streamline device management, and enhance lifecycle processes. With IT departments under pressure to improve cost efficiency and security, DaaS offers a compelling alternative to traditional asset ownership.
devicenow offers a global solution for workplace hardware, providing a comprehensive package that includes end-user devices, such as laptops, mobile phones, and peripherals, with managed IT support. Its complete lifecycle support, including device staging, last-mile logistics, and end-of-life (EOL) management, relieves IT teams of device management responsibilities and allows them to focus on more strategic business needs.
devicenow commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying Enterprise DaaS.1 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of Enterprise DaaS on their organizations.
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed four IT decision-makers across various industries with experience using Enterprise DaaS for their organizations. For the purposes of this study, Forrester aggregated the experiences of the interviewees and combined the results into a single composite organization, which is a conglomerate with 30,000 employees spread across dozens of locations worldwide.
Interviewees said that prior to using Enterprise DaaS, their IT teams struggled to build consistent inventories of end-user devices, especially if they had recently been through mergers and acquisitions. As a result, they lacked overviews of their IT assets, which created gaps in device security. However, given the high capital expenditure of direct purchases, it was not always possible to provide sets of standardized devices for all employees, or even to update outdated devices. To address these challenges, interviewees looked into subscription-based models like DaaS.
With devicenow Enterprise DaaS, IT teams can replace older devices and work toward building standard sets of devices (e.g., laptops) without incurring substantial upfront costs, while enabling easier hardware management. Interviewees also reported significant time savings on hardware and device management with a DaaS model.
Quantified benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:
IT savings on device management. With devicenow Enterprise DaaS, employees order devices directly and have them delivered. IT teams no longer have to prepare and stage laptops for end users or decommission them at the end of their lifecycles, saving 4.5 hours and 2 hours per device, respectively. Additionally, devicenow handles IT help desk tickets related to hardware issues or incidences, estimated at one incident per month on 1% of devices. Over three years and a cumulative total of 30,000 end-user devices, this translates to €4.6 million in time savings for the IT team.
Cost savings on hardware procurement and logistics. With devicenow DaaS, the composite no longer incurs the upfront costs of purchasing laptops, estimated at €1,000 each. Three-year device lifecycles result in complete asset turnover every three years, equating to capital expenditure of €30 million over the same period. Additionally, the composite needs to account for the cost of shipping devices to users, as well as transfer costs for devices that it must ship internationally. Eliminating these upfront costs saves the composite organization €27.1 million over three years.
Recaptured employee productivity through faster device replacement. The composite benefits from the devicenow DaaS subscription model due to the speed with which its employees receive replacement devices if theirs malfunction or are lost, stolen, or damaged. Before using devicenow, the composite had an unplanned device replacement lead time of up to two weeks. With devicenow, it sees a standard SLA of one to three business days for device replacements, shortening the downtime for employees by approximately 75% (or six business days). The productivity recaptured with devicenow equates to €2.7 million over three years.
Unquantified benefits. Benefits that provide value for the composite organization but are not quantified for this study include:
Improved employee experience. Employees previously had to go through lengthy approval processes to get new devices (or even to replace old ones that were already past the standard three-year lifecycle). With devicenow DaaS, the composite’s employees can order new devices to be sent to them directly, with much fewer approval steps. This gives employees flexibility and choice to renew devices more often, meaning newer, faster devices that empower them instead of slowing them down.
More time for IT to focus on strategic business needs. Eliminating the need for IT teams to stage and deactivate devices allows them to focus their regained time on better understanding and meeting strategic business needs, which they had to deprioritize previously.
Flexibility to choose preferred hardware and brands. Although the composite prefers to standardize the variations of brands and laptop models for employees, it now can offer peripherals of different brands. IT managers no longer have to worry about managing multiple suppliers or being tied to one brand for peripherals and accessories.
Building sustainable IT operations. With devicenow DaaS, the composite’s IT managers get assurance that returned devices are refurbished or responsibly recycled following international environmental and data security standards, which supports their organization’s sustainability goals.
Costs. Three-year, risk-adjusted PV costs for the composite organization include:
devicenow subscription fees. The composite incurs service fees on a per-device basis. The composite uses standard, base laptops and incurs subscription fees of approximately €360 per device per year for a three-year contract. It slowly replaces more than 30,000 owned devices with devicenow DaaS subscriptions over three years, resulting in service fees of €18.2 million.
The financial analysis that is based on the interviews found that a composite organization experiences benefits of €34.4 million over three years versus costs of €18.2 million, adding up to a net present value (NPV) of €16.2 million and an ROI of 89%.
Return on investment (ROI)
Benefits PV
Net present value (NPV)
| Role | Industry | Region | Device subscriptions |
|---|---|---|---|
| Head of digital workplace and collaboration | Healthcare logistics | Europe | 20,000 |
| Global head, infrastructure and IT service management (ITSM) | Healthcare technology | Global | 10,000 |
| IT manager | Professional services | Global | 1,000 |
| Head of IT enterprise services | Engineering and manufacturing | Global | 12,000 |
Interviewees noted how their organizations struggled with common challenges before switching to devicenow, including:
Lack of harmonization in IT security. With multiple mergers and acquisitions over the years, organizations saw that different business units or countries within the organization had varying levels of IT security maturity. Employees also used a range of different laptops, making it more complicated for IT teams to efficiently manage these devices. As a result, they lacked overviews of their IT assets, which created gaps in security. However, given the high capital expenditure of direct purchases, it was not always possible to provide sets of standardized devices for all employees or to update outdated devices.
Spikes in IT spend due to hardware purchases. All four interviewees shared that their finance teams had a high preference for the predictability and homogeneity of opex for IT hardware over capex spending. One interviewee also described how the discontinuation of Windows 10 support in 2025 would have created a huge spike in IT spend if they were to upgrade their laptops all at once.
Suboptimal employee experience. With pressure to keep capex spending low, it was not always possible to provide employees with new devices every two to three years — the standard lifecycle for laptops within the interviewees’ organizations. Employees had to go through lengthy approval processes to justify the need for new laptops, so many made do with outdated laptops, which then created security and business continuity risks. One interviewee described that the stringent approval processes meant there were some employees still using laptops that were six to eight years old.
Given these challenges, the interviewees searched for a solution that would allow them to shift their IT spend from capex to opex. In comparing different leasing and subscription options, interviewees shared that their decision to select devicenow often came down to its wide geographic coverage and flexible business terms — for example, the ability to handle local billing.
Based on the interviews, Forrester constructed a TEI framework, a composite company, and an ROI analysis that illustrates the areas financially affected. The composite organization is representative of the interviewees’ organizations, and it is used to present the aggregate financial analysis in the next section. The composite organization has the following characteristics:
Description of composite. The composite organization is a global manufacturing firm with 30,000 employees spread across 150+ offices and sites worldwide. The organization has a centralized global IT team supported by IT teams in four regional headquarters. Over the years, the organization has made several local acquisitions but has not harmonized IT assets across all new employees.
Deployment characteristics. The composite organization has 30,000 laptops deployed for its employees. Before using devicenow Enterprise DaaS, the IT team purchased and deployed these devices. As standard protocol, the composite assumes a three-year lifecycle/refresh for all devices, with zero residual value. With the switch to devicenow, the organization gradually shifts 10,000 owned devices to device subscriptions each year.
Global organization with employees across 150+ locations
30,000 laptops deployed
Global IT team supported by four regional teams
| Ref. | Benefit | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|
| Atr | IT savings on device management | €1,823,783 | €1,848,690 | €1,873,598 | €5,546,070 | €4,593,489 |
| Btr | Cost savings on hardware procurement and logistics | €10,890,000 | €10,890,000 | €10,890,000 | €32,670,000 | €27,081,818 |
| Ctr | Employee productivity recaptured | €427,500 | €1,125,000 | €1,822,500 | €3,375,000 | €2,687,660 |
| Total benefits (risk-adjusted) | €13,141,283 | €13,863,690 | €14,586,098 | €41,591,070 | €34,362,967 |
Evidence and data. All interviewees shared that before devicenow, their IT teams spent significant time staging and deploying devices to employees as well as erasing data and decommissioning devices at the end of their lifecycles. On average, these processes took about 4.5 hours and 2 hours per device, respectively, which took IT employees’ time away from more strategically important work.
With devicenow Enterprise DaaS, employees and/or their managers can order devices through the devicenow portal or their organization’s existing IT service system connected through API. The device is then either delivered to them or collected from them (in the case of devices to be replaced or returned). Interviewees noted that their IT teams no longer had to prepare and stage laptops for end users or decommission them at the end of their lifecycles.
Additionally, interviewees said that devicenow handled IT help desk tickets related to hardware issues or incidents, estimated at one incident per month on 1% of devices. This commonly included malfunctions or hardware component wear and tear (e.g., laptop keyboards, batteries, or screens).
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Staging takes 4.5 hours per device, and decommissioning takes 2 hours per device.
It switches 10,000 owned devices to subscriptions each year as they reach the end of their lifecycles.
About 1% of hardware will surface a hardware issue every month, totaling 12% of devices across one year. Each hardware incident takes 45 minutes to resolve.
Risks. Several factors will impact how much time savings organizations will experience with devicenow Enterprise DaaS. They include:
Standard device replacement rates.
The complexity of staging devices.
Protocols for decommissioning devices.
Results. To account for these risk factors, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of €4.6 million.
Total time savings for each device replacement, including staging and decommissioning
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| A1 | End-user devices | Composite | 30,000 | 30,000 | 30,000 | |
| A2 | End-user devices scheduled for replacement (based on a three-year lifecycle) | Interviews (A1/3) | 10,000 | 10,000 | 10,000 | |
| A3 | Time spent procuring and staging each new device (hours) | Interviews | 4.5 | 4.5 | 4.5 | |
| A4 | Time spent on EOL handling for each old device (hours) | Interviews | 2.0 | 2.0 | 2.0 | |
| A5 | Total time savings on device replacements (hours) | (A3+A4)*A2 | 65,000 | 65,000 | 65,000 | |
| A6 | Device subscriptions | A2CY+A2PY | 10,000 | 20,000 | 30,000 | |
| A7 | Percentage of devices with hardware incidents (one incident per month on 1% of devices) | Interviews | 12% | 12% | 12% | |
| A8 | Devices with hardware incidents | A6*A7 | 1,200 | 2,400 | 3,600 | |
| A9 | Time spent on hardware incident handling (hours) | Interviews | 0.75 | 0.75 | 0.75 | |
| A10 | Total time savings on hardware incident handling (hours) | A8*A9 | 900 | 1,800 | 2,700 | |
| A11 | Total time savings on device replacements and management (hours) | A5+A10 | 65,900 | 66,800 | 67,700 | |
| A12 | Fully burdened hourly rate for an IT hardware manager | €85,000/2,080 | €41 | €41 | €41 | |
| A13 | Productivity recaptured | TEI methodology | 75% | 75% | 75% | |
| At | IT savings on device management | A11*A12*A13 | €2,026,425 | €2,054,100 | €2,081,775 | |
| Risk adjustment | ↓10% | |||||
| Atr | IT savings on device management (risk-adjusted) | €1,823,783 | €1,848,690 | €1,873,598 | ||
| Three-year total: €5,546,070 | Three-year present value: €4,593,489 | |||||
Evidence and data. The largest financial impact of using devicenow DaaS is the avoided capital expenditure of purchasing laptops for employees. Interviewees estimated that, on average, laptops cost €1,000 each. With a device lifecycle of three years, this meant a complete asset turnover every three years, equating to capital expenditure of €30 million over the same period.
Interviewees’ organizations also incurred costs when shipping devices to employees (e.g., remote workers). The cost and effort required to ship devices across borders were even disproportionately higher. One interviewee shared that the process was so complex, they engaged a third-party logistics vendor just to handle international device shipping, and that the cost of these services could be as high as the cost of the devices themselves.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Each device costs €1,000 to purchase directly.
The composite has to ship 50% of devices either to non-office sites or directly to remote workers, costing €120 per device shipped.
It has to transfer 30% of devices internationally (e.g., to remote workers in countries where there are no local company entities), costing €500 per device transferred (or 50% of the cost of the device).
Risks. Several factors will impact the cost savings organizations will experience with devicenow Enterprise DaaS. They include:
Procurement budgets determining the average cost of devices, as well as procurement policies determining the lifecycle and replacement rate of devices.
How IT teams are set up to procure and distribute devices locally.
Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of €27.1 million.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| B1 | Average hardware cost of device | Composite | €1,000 | €1,000 | €1,000 | |
| B2 | New devices procured without devicenow | A2 | 10,000 | 10,000 | 10,000 | |
| B3 | Capex savings | B1*B2 | €10,000,000 | €10,000,000 | €10,000,000 | |
| B4 | Shipping costs (applicable for 50% of devices shipped directly to employees) | Interviews | €120 | €120 | €120 | |
| B5 | Transfer costs (applicable for 30% of devices shipped internationally) | Interviews | €500 | €500 | €500 | |
| B6 | Total shipping and transfer costs avoided |
(B2*B4*0.5)+ (B2*B5*0.3) |
€2,100,000 | €2,100,000 | €2,100,000 | |
| Bt | Cost savings on hardware procurement and logistics | B3+B6 | €12,100,000 | €12,100,000 | €12,100,000 | |
| Risk adjustment | ↓10% | |||||
| Btr | Cost savings on hardware procurement and logistics (risk-adjusted) | €10,890,000 | €10,890,000 | €10,890,000 | ||
| Three-year total: €32,670,000 | Three-year present value: €27,081,818 | |||||
Evidence and data. Interviewees shared that another advantage of using a subscription model like devicenow DaaS was the speed with which employees received replacement devices, especially when these replacements were unplanned due to device malfunctions, damage, or theft/losses. Even if IT teams had spare devices to deploy, it could take days to prepare the paperwork for shipment. At some companies, employees also had to go through formal approval processes before IT teams could start preparing devices for them. As a result, interviewees estimated that the lead times to replace laptops could be up to two weeks.
With devicenow, interviewees’ organizations have a defined, standard SLA of one to three business days for device replacements, shortening the downtime for employees by about 75%.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
It will need to replace about 5% of devices unexpectedly each year (e.g., from losses, theft, or severe hardware or system failures).
The average lead time to get new devices to employees was eight days before devicenow. The average lead time to get new devices to employees with devicenow is two days.
In their unplanned downtime, employees might still have access to their work through a temporary laptop or a second device (e.g., their mobile phones), so the productivity loss during this period is 90%.
Risks. Several factors will impact how much productivity employees will lose when their devices fail. They include:
The availability of spare devices that IT teams keep around.
The agreed-upon SLA with devicenow as part of contractual terms.
Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of €2.7 million.
Reduction in waiting time for unplanned device replacements
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| C1 | Owned devices (without devicenow) | A1 | 30,000 | 30,000 | 30,000 | |
| C2 | Percentage of end-user devices with unplanned failure | Interviews | 5% | 5% | 5% | |
| C3 | Devices with unplanned failure and replacement | C1*C2 | 1,500 | 1,500 | 1,500 | |
| C4 | Average lead time for device replacement without devicenow (days) | Interviews | 8 | 8 | 8 | |
| C5 | Lost productivity due to unplanned device failure/replacement without devicenow (days) | 90%*C3*C4 | 10,800 | 10,800 | 10,800 | |
| C6 | Rented devices with devicenow | A6 | 10,000 | 20,000 | 30,000 | |
| C7 | Rented devices with unplanned failure and replacement | C2*C6 | 500 | 1,000 | 1,500 | |
| C8 | Average lead time for device replacement for rented devices (days) | Interviews | 2 | 2 | 2 | |
| C9 | Lost productivity due to unplanned device failure/replacement with devicenow (days) | 90%*C7*C8 | 900 | 1,800 | 2,700 | |
| C10 | Owned devices with devicenow | C1-C6 | 20,000 | 10,000 | 0 | |
| C11 | Owned devices with unplanned failure | C2*C10 | 1,000 | 500 | 0 | |
| C12 | Lost productivity due to unplanned device failure/replacement of owned devices with devicenow (days) | C4*C11 | 8,000 | 4,000 | 0 | |
| C13 | Lost productivity due to unplanned device failure/replacement with devicenow (days) | C9+C12 | 8,900 | 5,800 | 2,700 | |
| C14 | Reduction in lost productivity (days) | C5-C13 | 1,900 | 5,000 | 8,100 | |
| C15 | Average fully burdened daily salary for an employee | €65,000/260 | €250 | €250 | €250 | |
| Ct | Employee productivity recaptured | C14*C15 | €475,000 | €1,250,000 | €2,025,000 | |
| Risk adjustment | ↓10% | |||||
| Ctr | Employee productivity recaptured (risk-adjusted) | €427,500 | €1,125,000 | €1,822,500 | ||
| Three-year total: €3,375,000 | Three-year present value: €2,687,660 | |||||
Interviewees mentioned the following additional benefits that their organizations experienced but were not quantified for the financial model:
Improved employee experience. Employees previously went through lengthy approval processes to get new devices (or even to replace old ones that were already past the standard three-year lifecycle). Pressure to keep capex spending low also deterred employees from requesting replacements, even if their devices started slowing down. With devicenow, interviewees said that their employees could easily order new devices with no impact on the organization’s expenses. This gave employees flexibility and choice to renew devices more often, meaning newer, faster devices that enabled them to work more efficiently instead of slowing them down.
More time for IT to focus on strategic business needs. IT teams regained time by eliminating the need to stage and deactivate devices, which they focused on better understanding and meeting strategic business needs — activities they may not have had time for in the past.
Flexibility to choose preferred hardware and brands. Although most interviewees’ organizations preferred to standardize the variations of brands and laptop models for employees, they now had the option to offer peripherals of different brands. IT managers no longer had to worry about managing multiple suppliers or being tied to one brand for peripherals.
Building sustainable IT operations. With devicenow, IT managers also received assurance that returned devices are refurbished or responsibly recycled following international environmental and data security standards, supporting their organizations’ sustainability goals. It also saved IT teams the trouble of dealing with device EOL treatment.
The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement Enterprise DaaS and later realize additional uses and business opportunities, including:
Expanding devicenow DaaS deployment. Although the composite organization described in the study deployed only laptops, interviewees’ organizations utilized DaaS for both laptops and mobile phones for office-based workers. They also recognized the potential to expand DaaS deployment to include tablets and peripherals, or to include frontline workers.
Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Total Economic Impact Approach).
| Ref. | Cost | Initial | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|---|
| Dtr | devicenow service fees | €0 | €3,780,000 | €7,560,000 | €11,340,000 | €22,680,000 | €18,204,207 |
| Total costs (risk-adjusted) | €0 | €3,780,000 | €7,560,000 | €11,340,000 | €22,680,000 | €18,204,207 |
Evidence and data. In switching to a subscription model for devices, interviewees incurred devicenow service fees, which included device procurement, deployment, management, and support throughout device lifecycles. Contractual agreements varied by organization, but in general, they paid service fees on a per device per month basis, allowing some flexibility in adjusting device quantity based on their changing needs.
Modeling and assumptions. Based on the interviews, Forrester assumes that the composite organization incurs average DaaS service fees of €360 per device per year. This is an estimate provided by devicenow and should not be taken as a quote.
Risks. Service fees for organizations will differ based on the types and specifications of devices required, location, and other business terms.
Results. To account for these differences, Forrester adjusted this cost upward by 5%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of €18.2 million.
Average annual subscription fee per device
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| D1 | Devices rented | A6 | 10,000 | 20,000 | 30,000 | |
| D2 | DaaS subscription costs per device | Composite | €360 | €360 | €360 | |
| Dt | devicenow service fees | D1*D2 | €0 | €3,600,000 | €7,200,000 | €10,800,000 |
| Risk adjustment | ↑5% | |||||
| Dtr | devicenow service fees (risk-adjusted) | €0 | €3,780,000 | €7,560,000 | €11,340,000 | |
| Three-year total: €22,680,000 | Three-year present value: €18,204,207 | |||||
| Initial | Year 1 | Year 2 | Year 3 | Total | Present Value | |
|---|---|---|---|---|---|---|
| Total costs | €0 | (€3,780,000) | (€7,560,000) | (€11,340,000) | (€22,680,000) | (€18,204,207) |
| Total benefits | €0 | €13,141,283 | €13,863,690 | €14,586,098 | €41,591,070 | €34,362,967 |
| Net benefits | €0 | €9,361,283 | €6,303,690 | €3,246,098 | €18,911,070 | €16,158,760 |
| ROI | 89% |
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 Enterprise DaaS.
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 Enterprise DaaS can have on an organization.
Interviewed devicenow stakeholders and Forrester analysts to gather data relative to Enterprise DaaS.
Interviewed four decision-makers at organizations using Enterprise DaaS to obtain data about costs, benefits, and risks.
Designed a composite organization based on characteristics of the interviewees’ organizations.
Constructed a financial model representative of the interviews using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewees.
Employed four fundamental elements of TEI in modeling the investment impact: benefits, costs, flexibility, and risks. Given the increasing sophistication of ROI analyses related to IT investments, Forrester’s TEI methodology provides a complete picture of the total economic impact of purchase decisions. Please see Appendix A for additional information on the TEI methodology.
Benefits represent the value the solution delivers to the business. The TEI methodology places equal weight on the measure of benefits and costs, allowing for a full examination of the solution’s effect on the entire organization.
Costs comprise all expenses necessary to deliver the proposed value, or benefits, of the solution. The methodology captures implementation and ongoing costs associated with the solution.
Flexibility represents the strategic value that can be obtained for some future additional investment building on top of the initial investment already made. The ability to capture that benefit has a PV that can be estimated.
Risks measure the uncertainty of benefit and cost estimates given: 1) the likelihood that estimates will meet original projections and 2) the likelihood that estimates will be tracked over time. TEI risk factors are based on “triangular distribution.”
The present or current value of (discounted) cost and benefit estimates given at an interest rate (the discount rate). The PV of costs and benefits feeds into the total NPV of cash flows.
The present or current value of (discounted) future net cash flows given an interest rate (the discount rate). A positive project NPV normally indicates that the investment should be made unless other projects have higher NPVs.
A project’s expected return in percentage terms. ROI is calculated by dividing net benefits (benefits less costs) by costs.
The interest rate used in cash flow analysis to take into account the time value of money. Organizations typically use discount rates between 8% and 16%.
The breakeven point for an investment. This is the point in time at which net benefits (benefits minus costs) equal initial investment or cost.
Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists solution providers in communicating their value proposition to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of business and technology initiatives to both senior management and other key stakeholders.
1 Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists solution providers in communicating their value proposition to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of business and technology initiatives to both senior management and other key stakeholders.
Readers should be aware of the following:
This study is commissioned by devicenow 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 Enterprise DaaS.
devicenow 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.
devicenow provided the customer names for the interviews but did not participate in the interviews.
Josephine Phua
January 2026
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