The Total Economic Impact™ Of GitLab Ultimate

Cost Savings And Business Benefits Enabled By GitLab Ultimate

A Forrester Total Economic Impact Study Commissioned By GitLab, October 2024

Organizations with fragmented toolchains risk slow software delivery, higher IT costs, and higher security risks — issues that only keep growing as tool sprawl increases. As an integrated software delivery platform (IDSP), GitLab is a single solution for all stages of the development, security, and operations (DevSecOps) lifecycle. Organizations that replaced point solutions and consolidated their toolchains with GitLab improved developer productivity and happiness, lowered their IT costs, and enhanced security. Delivering better software faster — while maintaining the highest security and quality standards — ultimately drove business growth.

GitLab is a comprehensive DevSecOps platform supporting every stage of the software development lifecycle (SDLC) — from initial planning all the way through to production delivery and monitoring and analytics. GitLab is an alternative to fragmented software delivery toolchains comprised of numerous point solutions. Organizations can use GitLab to meet all their software development tooling needs, or they can use GitLab in combination with other tools; organizations with legacy DevSecOps toolchains often adopt GitLab incrementally, replacing their prior toolsets over time. As a single, unified platform, GitLab can improve developer productivity by reducing context switching, streamlining workflows, and incorporating security into every step of the SDLC. With GitLab Duo, GitLab also integrates AI throughout SDLC, further supporting developer and team productivity. GitLab’s enterprise offering is known as GitLab Ultimate.

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

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Return on investment (ROI)

483%

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Net present value (NPV)

$74.6M

To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed eight representatives from four organizations using GitLab Ultimate. For the purposes of this study, Forrester aggregated the interviewees’ experiences and combined the results into a single composite organization. This composite organization is a $5-billion company with 5,000 employees, of which there are 2,000 employees contributing to software delivery (e.g., developers, etc., on cross-functional agile teams). Half of the composite organization’s annual revenue is driven by software development, and the composite operates in a business environment that makes software security and quality especially crucial.

Before investing in GitLab, the interviewees’ organizations had fragmented, sprawling toolchains that were expensive both to license and to manage. Worse, the fragmented nature of the toolchains was hurting software delivery: workflows were cumbersome, collaboration was low, and timelines were long. Because development processes were so inefficient, maintaining high standards for software quality and security was time-consuming and high-effort.

However, investing in GitLab Ultimate enabled the interviewees’ organizations to retire redundant tools and consolidate their toolchains around the GitLab platform. The IT teams realized direct savings by sunsetting software and standardizing tooling. Because GitLab supported more efficient, integrated, and automated workflows, developer productivity improved, and the software development teams delivered projects faster than before. Despite the increased velocity, though, security and quality remained as high as they were before. By integrating security throughout the SDLC, teams were able to catch and fix issues sooner. These improvements in software delivery were boons to business.

Key Findings

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

  • Software development team productivity gains worth $39.9 million. Each developer saves 535 hours per year as regular activities all become more efficient with GitLab. Testing automation enabled by GitLab not only saves developers time, but it also empowers them to test more frequently. Developers detect issues sooner and debug them faster, which improves developer productivity because issues are identified earlier in the SDLC when they are easiest to fix. Overall, having a single, unified interface for all development tasks streamlines workflows, reduces context switching and overhead, and improves collaboration and the developer experience.

305 hours per developer per year

Time reclaimed from inefficient workflows and redirected towards coding2

  • Faster developer onboarding saves $2.3 million. With GitLab, new hires to the composite organization’s software development team ramp up to full productivity 75% faster (i.e., in weeks instead of months). GitLab improves knowledge transfer by helping to standardize workflows and processes, increase documentation, and foster collaboration.

1.5 months

Time to onboard a new developer before GitLab

1.5 weeks

Time to onboard a new developer after GitLab

  • Faster time to market for new software yield benefits of $37.7 million. The productivity gains unlocked with GitLab enable the composite’s software development team to deliver 50% more work with business value than it otherwise would have. Projects are completed faster and sooner than without GitLab, driving revenue. Despite the increase in velocity, software quality and security remain at the same high levels, as the next benefit explains.

50%

More features delivered

  • Security efficiencies save $5.9 million. With GitLab, the cybersecurity and software development teams at the composite organization continue to maintain issue-free software with 81% less effort. GitLab enables these teams to integrate security protocols and scanning throughout all stages of the SDLC (moving security from a final step before release to something every team member is responsible for). As collaboration between developers and security increases, overall issues decline and any potential issues are surfaced and fixed sooner. GitLab also improves visibility into software development processes, thereby reducing the time security and development team members must spend on recurring activities, such as disaster recovery prep and auditing and compliance.

78 hours per security team member per year

Time reclaimed and redirected towards enhancing security3

  • Toolchain consolidation — retiring unnecessary legacy tools — saves $4.3 million in licensing and administration costs. GitLab makes many legacy tools redundant, and retiring tools reduces total spending on software licensing by 25%. The effort that IT spends supporting its toolchain also falls by 75%; the retired legacy tools no longer need to be maintained, and a simplified toolchain standardized around GitLab is easier for IT administrators to support.

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

  • Better developer experience. Productive developers are happy developers. Using GitLab removes frustrations and fosters collaboration and a sense of community.
  • Superior support. GitLab’s partnership and commitment to users empowers organizations to focus on the business challenges of building software rather than on maintaining their toolchains and pipelines.
  • GitLab Duo AI. GitLab Duo integrates AI throughout every stage of the development process. While these features are a nascent part of GitLab’s platform, they have the potential to exponentially improve developer productivity and software quality.

“The look and feel is fantastic. It allows us to do so many things we couldn’t do before.”

Software architect, energy/research

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

  • Licensing costs of $3.4 million. GitLab Ultimate’s flexible licensing model is based on usage.
  • Implementation costs of $744,000. Deploying GitLab throughout the composite organization involves effort from IT administrators as well as (optional) professional services.
  • Ongoing management costs of $1.1 million. Ongoing administration of GitLab is relatively minimal.
  • On-premises infrastructure costs of $5.4 million. Only organizations deploying GitLab on-premises like the composite organization incur this cost.
  • New user training costs $4.8 million. New GitLab users spend about 40 hours on training. This training is flexible (e.g., introductory videos at first and advanced tutorials later on).

The representative interviews and financial analysis found that a composite organization experiences benefits of $90.0 million over three years versus costs of $15.4 million, adding up to a net present value (NPV) of $74.6 million and an ROI of 483%.

Key Statistics

  • icon icon

    Return on investment (ROI)

    483%
  • icon icon

    Benefits PV

    $90.0M
  • icon icon

    Net present value (NPV)

    $74.6M
  • icon icon

    Payback

    <6 months
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Benefits (Three-Year)

Software development team productivity Improved productivity of new hires to the software development team Accelerated time to market Security efficiencies Toolchain consolidation

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 GitLab Ultimate.

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 GitLab Ultimate can have on an organization.

  1. Due Diligence

    Interviewed GitLab stakeholders and Forrester analysts to gather data relative to GitLab Ultimate.

  2. Interviews

    Interviewed eight representatives from four organizations using GitLab Ultimate to obtain data about costs, benefits, and risks.

  3. Composite Organization

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

  4. Financial Model Framework

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

  5. Case Study

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

Disclosures

Readers should be aware of the following:

This study is commissioned by GitLab 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 GitLab Ultimate.

GitLab 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.

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

Consulting Team:

Jeffrey Yozwiak

Zahra Azzaoui

M
K

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