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.
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.
Quantified benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:
Unquantified benefits. Benefits that provide value for the composite organization but are not quantified for this study include:
Costs. Three-year, risk-adjusted PV costs for the composite organization include:
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%.
Return on investment (ROI)
Benefits PV
Net present value (NPV)
Payback
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.
Interviewed GitLab stakeholders and Forrester analysts to gather data relative to GitLab Ultimate.
Interviewed eight representatives from four organizations using GitLab Ultimate 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.
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
| Role | Industry | Revenue | Geography | Employees | GitLab Users |
|---|---|---|---|---|---|
| IT manager (DevSecOps CoE) Senior consultant (EA and DevSecOps) Supervisor (service management technology) |
Finance | $4B | North America | 3,000 | 150 |
| Program manager (FinDev platform) | Finance | $1.5B | EMEA | 5,000 | 2,000 |
| Software architect (cloud-native systems) | Energy/research | $1.3B | EMEA | 2,500 | 19,000 |
| CTO and SVP Product owner (common software development environment) Consultant (DevSecOps) |
Defense | $7.5B | North America | 25,000 | 2,000 |
Before investing in GitLab Ultimate, the interviewees’ organizations grappled with significant challenges due to fragmented delivery environments. They described a reliance on a collection of disjointed tools: version control, continuous integration and continuous delivery (CI/CD), code review, security testing, and project management were handled by separate systems that lacked integration. This fragmented setup created silos within teams, where collaboration was limited and workflows were inefficient. The interviewees’ organizations also struggled with managing multiple tools, which led to high licensing and management costs. Interviewees also noted that their existing tools, while functional, were slow and cumbersome, making it difficult to maintain visibility, security, and compliance across the software development lifecycle. Ultimately, these inefficiencies hindered their ability to meet business needs and remain competitive.
The interviewees noted how their organizations struggled with common challenges, including:
The interviewees’ organizations searched for a solution that could:
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 eight interviewees from four 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 regional, $5-billion company with 5,000 employees. Software development is crucial to the composite organization’s business. In any given year, around half of the organization’s revenue is attributable to its proprietary software (both software developed previously as well as new software enhanced or developed during the year). The other half of the organization’s annual revenues come from work that is not directly tied to software development (e.g., consulting, research, physical product sales, etc.) Accordingly, around 40% of the composite organization’s workforce is involved in software delivery: the organization has 2,000 employees (e.g., developers, etc.) working on cross-functional agile teams.
Security is also crucial for the composite organization, and it has an additional 65 employees on its security team. Security is crucial for business reasons. The organization develops software for critical infrastructure and essential systems. Any security or quality issues could result in significant business disruptions or regulatory fines and, in some cases, issues might even impact human safety. The composite organization therefore works to maintain exceptionally high quality standards for its software. All applications must be error-free, reliable, robust, and impenetrably secure. Security is important to the organization’s brand, and it receives considerable attention from both leadership and customers. The security team is responsible for everything from application security to software supply chain security to cybersecurity and so on.
To keep this study as broadly applicable as possible, Forrester has not specified the composite organization’s industry. However, there are multiple private-sector and public-sector industries in which organizations face these same software development challenges, such as high tech, finance, manufacturing, defense, etc.
Deployment characteristics. Before implementing GitLab Ultimate, the composite organization had a fragmented development environment and relied on a variety of disconnected tools. However, over three years, the organization strategically deploys GitLab Ultimate, focusing on areas such as security and compliance, CI/CD, automated software delivery, agile delivery, SCM, and GitOps. The composite organization first rolls out GitLab Ultimate to around 10% of its software development and security team members in Year 1. After this initial effort is successful, the composite organization expands GitLab usage and rolls out the platform to 50% of its workforce in Year 2. By Year 3, the composite organization’s migration to GitLab is complete and all software development and security team members are using the platform. As the organization migrates to GitLab, it retires much of its prior tooling (however, some legacy tools remain in use).
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|
| R1 | Total employees | Composite | 5,000 | 5,000 | 5,000 |
| R2 | Total software development team members | Composite | 2,000 | 2,000 | 2,000 |
| R3 | Total security team members | Composite | 65 | 65 | 65 |
| R4 | Percentage of software development and security team members using GitLab | Interviews | 10% | 50% | 100% |
| R5 | Software development team members using GitLab | R2*R4 | 200 | 1,000 | 2,000 |
| R6 | Security team members using GitLab | R3*R4 | 7 | 33 | 65 |
| Ref. | Benefit | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|
| Atr | Software development team productivity | $3,176,654 | $15,883,269 | $31,766,539 | $50,826,461 | $39,881,206 |
| Btr | Improved productivity of new hires to the software development team | $184,360 | $921,797 | $1,843,594 | $2,949,751 | $2,314,535 |
| Ctr | Accelerated time to market | $2,999,880 | $14,999,400 | $29,998,800 | $47,998,080 | $37,661,904 |
| Dtr | Security efficiencies | $469,069 | $2,337,619 | $4,671,347 | $7,478,035 | $5,867,995 |
| Etr | Toolchain consolidation | $340,875 | $1,704,375 | $3,408,750 | $5,454,000 | $4,279,505 |
| Total benefits (risk-adjusted) | $7,170,838 | $35,846,460 | $71,689,030 | $114,706,328 | $90,005,145 | |
Evidence and data. Interviewees reported that GitLab empowered their software development teams to work more efficiently by reducing the time spent testing, identifying and remediating issues, and conducting other routine tasks — ultimately enabling teams to focus less on manual tasks across the CI/CD pipeline and more on innovation and delivering high-quality software.
Interviewees reported software development team productivity gains for the following activities:
| Activity | How GitLab Helped | Example Successes |
|---|---|---|
| Testing | GitLab’s integrated CI/CD pipelines allowed developers to run tests continuously without manual intervention. This automation reduced the time developers spent on testing activities, freeing them to focus on higher-value tasks and accelerating the software development lifecycle while maintaining high-quality code. | • Each developer saved 20 hours per month due to GitLab’s automated testing. |
| Debugging | With features like real-time monitoring, automated alerts, and integrated debugging tools, developers were able to quickly pinpoint and resolve problems earlier in the software development lifecycle, when they are easier to fix (this is known as “shifting left”). This rapid feedback loop minimized downtime and prevented issues from escalating and prolonging development. | • Time to fix faulty code and rerun tests was reduced from multiple days to a couple of hours. |
| Miscellaneous nonproductive tasks | By unifying development, testing, and deployment workflows into a single interface, GitLab reduced context switching, enabling developers to stay focused without having to switch between multiple tools and environments. This approach allowed software development teams to complete routine tasks more quickly and streamlined the entire development process. | • Reduced context switching with GitLab saved each developer 20 minutes per activity. |
Interviewees reported different improvements in software development team productivity depending on their organizations’ operational frameworks and development practices. These improvements varied across teams, but interviewees consistently highlighted the impact of GitLab Ultimate in streamlining workflows and reducing inefficiencies.
The interviewees described their experiences with GitLab as follows:
Modeling and assumptions. Based on the interviews, Forrester assumes that software development team members at the composite organization save time on their regular testing, debugging, and other miscellaneous tasks with GitLab. For each activity, Forrester makes the following specific assumptions for the composite organization:
Forrester also assumes:
| Activity | Time Per Activity Annually Before Gitlab | Time Per Activity Annually After GitLab |
|---|---|---|
| Testing | 280.8 hours | 22.5 hours |
| Debugging | 257.0 hours | 58.4 hours |
| Miscellaneous nonproductive tasks | 156.0 hours | 78.0 hours |
| Total | 693.8 hours | 158.9 hours |
Risks. The risk (or likelihood) of this benefit varying from organization to organization is relatively low. This is because Forrester modeled the before state of the composite organization using data from Forrester’s Developer Survey, 2023. This survey found that, on average, developers spend 13.5% of their time testing, 11.8% of their time debugging (only issues not related to security), and 7.5% of their time on nonproductive tasks. Because Forrester assumes that developers at the composite organization spend their time in the same ways before adopting GitLab, the benefit calculations are likely to be broadly applicable.
The most likely source of variability is differences in organizational characteristics — i.e., number of developers using GitLab and their average salaries. Variations in these characteristics will have predictable impacts on the results.
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 $39.9 million.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|
| A1 | Software development team members using GitLab | R5 | 200 | 1,000 | 2,000 |
| A2 | Average time per user spent testing before GitLab | Forrester research | 13.5% | 13.5% | 13.5% |
| A3 | Reduction in testing time per user with GitLab | Interviews | 92% | 92% | 92% |
| A4 | Average testing time per user avoided with GitLab (hours) | A2*A3*2,080 | 258 | 258 | 258 |
| A5 | Subtotal: Testing time avoided after GitLab (hours) | A1*A4 | 51,600 | 258,000 | 516,000 |
| A6 | Average time per user spent debugging before GitLab (excluding time spent debugging security issues) | Forrester research | 11.8% | 11.8% | 11.8% |
| A7 | Average reduction in debugging time per user with GitLab | Interviews | 80% | 80% | 80% |
| A8 | Average debugging time per user avoided with GitLab (hours) | A6*A7*2,080 | 196 | 196 | 196 |
| A9 | Subtotal: Debugging time avoided after GitLab (hours) | A1*A8 | 39,200 | 196,000 | 392,000 |
| A10 | Average time per user spent on miscellaneous activities before GitLab | Forrester research | 7.5% | 7.5% | 7.5% |
| A11 | Reduction in miscellaneous activity time per user with GitLab | Interviews | 50% | 50% | 50% |
| A12 | Average miscellaneous activity time per user avoided with GitLab (hours) | A10*A11*2,080 | 78 | 78 | 78 |
| A13 | Subtotal: Miscellaneous activity time avoided after GitLab (hours) | A1*A12 | 15,600 | 78,000 | 156,000 |
| A14 | Fully burdened annual salary for a software development team member | Composite | $138,000 | $138,000 | $138,000 |
| A15 | Productivity recapture | TEI standard | 50% | 50% | 50% |
| At | Software development team productivity | (A5+A9+A13)*(A14/2,080)*A15 | $3,529,615 | $17,648,077 | $35,296,154 |
| Risk adjustment | ↓10% | ||||
| Atr | Software development team productivity (risk-adjusted) | $3,176,654 | $15,883,269 | $31,766,539 | |
| Three-year total: $50,826,461 | Three-year present value: $39,881,206 | ||||
Evidence and data. After implementing GitLab Ultimate, interviewees explained that new developers were able to access code repositories, CI/CD pipelines, and collaborative tools more quickly, accelerating their onboarding. This streamlined environment shortened the ramp-up period to full productivity and enabled new hires to contribute meaningful work sooner. By automating routine tasks and providing clear, consistent processes, GitLab minimized onboarding friction so that new team members could quickly integrate into existing workflows and maintain high development velocity.
Modeling and assumptions. Based on the interviews, Forrester assumes the following for the composite organization:
Risks. This benefit is most likely to vary from organization to organization due to differences in employee turnover rates. Employee turnover rates can vary substantially across industries, roles, etc. Moreover, organizations currently face a unique macroeconomic environment and contemporary trends in employment may or may not reflect what organizations can expect over the long term.
For organizations with higher attrition or hiring rates, this benefit may be higher. To better isolate and show the impact of GitLab Ultimate, Forrester’s model holds total headcount at the composite organization constant. While this is a best practice for Total Economic Impact models, most organizations might expect some growth — and thus potentially greater benefits — over three years.
Ultimately, though, this benefit accounts for only 3% of total benefits to the composite organization. While faster developer onboarding with GitLab Ultimate is important, the improvements in developer productivity (Benefit A) and time to market (Benefit C) are far more significant to the composite organization.
Results. To account for these risks, Forrester adjusted this benefit downward by 5%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $2.3 million.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|
| B1 | Total software development team members | R2 | 2,000 | 2,000 | 2,000 |
| B2 | Employee turnover rate of the software development team | Composite | 15% | 15% | 15% |
| B3 | New hires to the software development team per year | B1*B2 | 300 | 300 | 300 |
| B4 | New hires joining teams using GitLab | B3*R4 | 30 | 150 | 300 |
| B5 | Average time for a new hire to the software development team to become fully productive before GitLab (months) | Composite | 1.5 | 1.5 | 1.5 |
| B6 | Average productivity of a new hire while ramping to full productivity | Composite | 50% | 50% | 50% |
| B7 | Cost to the organization of a new hire’s reduced productivity before GitLab | A14/12*B5*B6 | $8,625 | $8,625 | $8,625 |
| B8 | Reduction in time for a new hire to the software development team to become fully productive after GitLab | Interviews | 75% | 75% | 75% |
| Bt | Improved productivity of new hires to the software development team | B4*B7*B8 | $194,063 | $970,313 | $1,940,625 |
| Risk adjustment | ↓5% | ||||
| Btr | Improved productivity of new hires to the software development team (risk-adjusted) | $184,360 | $921,797 | $1,843,594 | |
| Three-year total: $2,949,751 | Three-year present value: $2,314,535 | ||||
Evidence and data. By offering a comprehensive DevSecOps platform that streamlined development, testing, and deployment processes, GitLab Ultimate enabled interviewees’ organizations to become increasingly agile, releasing new features and updates into the market sooner than they otherwise would have. With faster release cycles of high-quality software, the interviewees’ organizations were able to quickly respond to market demands and enhance their competitive edge, ultimately delivering features that drove customer satisfaction and incremental revenue gains.
Interviewees reported that their teams were delivering code to customers significantly faster since adopting GitLab. Examples included:
Interviewees described their experiences with GitLab as follows:
Modeling and assumptions. Based on the interviews, Forrester assumes the following for the composite organization:
Risks. This risk (or likelihood) of this benefit varying from organization to organization is relatively high. Although the framework for calculating this benefit is broadly applicable, organizations may realize substantially different results due to differences in:
Forrester encourages readers evaluating the potential benefits of faster software delivery and faster times to market to consider the corresponding metrics for their own organizations.
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 $37.7 million.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| C1 | Revenue (before GitLab) | Composite | $5,000,000,000 | $5,000,000,000 | $5,000,000,000 | |
| C2 | Percentage of revenue attributed to software development | Composite | 50% | 50% | 50% | |
| C3 | Percentage of software development revenue attributed to new software development (rather than recurring revenue) | Composite | 20% | 20% | 20% | |
| C4 | Revenue from software development (before GitLab) | C1*C2*C3 | $500,000,000 | $500,000,000 | $500,000,000 | |
| C5 | Total software development team members | R2 | 2,000 | 2,000 | 2,000 | |
| C6 | Total available time per software development team member (weeks) | Composite | 52 | 52 | 52 | |
| C7 | Release frequency before GitLab (weeks) | Composite | 2 | 2 | 2 | |
| C8 | Software releases per developer before GitLab | C6/C7 | 26 | 26 | 26 | |
| C9 | Revenue per release per developer | C4/C5/C8 | $9,615 | $9,615 | $9,615 | |
| C10 | Percentage of releases accelerated with GitLab | Interviews | 50% | 50% | 50% | |
| C11 | Reduction in delivery time for releases accelerated with GitLab | Interviews | 50% | 50% | 50% | |
| C12 | Software releases per developer with GitLab | C6*(100%-C10)/ C7+C6*C10/(C7* (100%-C11)) | 39 | 39 | 39 | |
| C13 | Incremental releases per software development team member after GitLab | C12-C8 | 13 | 13 | 13 | |
| C14 | Software development team members using GitLab | R5 | 200 | 1,000 | 2,000 | |
| C15 | Incremental revenue from software development team members using GitLab | C9*C13*C14 | $24,999,000 | $124,995,000 | $249,990,000 | |
| C16 | Operating margin | Composite | 15% | 15% | 15% | |
| Ct | Accelerated time to market | C15*C16 | $3,749,850 | $18,749,250 | $37,498,500 | |
| Risk adjustment | ↓20% | |||||
| Ctr | Accelerated time to market (risk-adjusted) | $2,999,880 | $14,999,400 | $29,998,800 | ||
| Three-year total: $47,998,080 | Three-year present value: $37,661,904 | |||||
Evidence and data. Interviewees highlighted that investing in GitLab Ultimate reduced the time and effort required for both security teams and developers to manage and mitigate security risks throughout the software development lifecycle.
Interviewees noted substantial productivity improvements around security and compliance-related activities with GitLab Ultimate:
| Activity | Example Successes | |
|---|---|---|
| Compliance | • Faster auditing. The external auditing process was shortened from several weeks to less than one week with GitLab automating 18 out of 25 quality criteria for internal assessments. • Faster reporting. DevOps report creation, which previously required 6 hours per month, was automated with real-time dashboards in GitLab, reducing the time required to less than 1 hour. • Developer time savings. Time spent creating a software bill of materials (SBOM) was eliminated, saving approximately 300 hours annually for the DevOps team. |
|
| Operations | • Productivity gains. Shifting left, automating processes, and improving workflows increased team productivity by 15%. • Productivity gains. Security team efficiency for addressing vulnerabilities improved by 3% • Productivity gains. Shifting left saved approximately 22 FTEs. • Disaster prep efficiency. Preparation time for disaster recovery fell from eight weeks with eight FTEs to two to three weeks with three FTEs. • Faster upgrades. Time to upgrade pipelines fell from one week to between just 6 to 20 hours. • Faster scanning. The entire security process — from moving files to scanning them to processing the results — was 13 times faster. |
|
| Incident response | • Fewer issues. New security findings in production environments decreased by 20% to 25%. • Faster responses. Integrating security testing into pipelines reduced average response times from up to 30 days to just 1 hour. |
|
Interviewees also described their experiences with GitLab as follows:
Modeling and assumptions. Based on the interviews, Forrester assumes that with GitLab, security team members at the composite organization save time when 1) investigating and responding to incidents and 2) performing regular hardening tasks (e.g., preparing to recover from disasters, etc.). For each activity, Forrester makes the following specific assumptions:
Based on the interviews, Forrester also assumes that with GitLab, software development team members at the composite organization save time when performing security-related development activities including supporting auditing and compliance efforts and debugging security issues. For each activity, Forrester makes the following specific assumptions:
Finally, Forrester assumes the average fully burdened annual salary for a security team member is $116,000.12 Like software development team members, security team members work 40 hours per week and capture and productively use 50% of the time they save with GitLab.
| Team | Activity | Time Per Activity Annually Before Gitlab | Time Per Activity Annually After GitLab |
|---|---|---|---|
| Security | Incident investigating and response | 139.4 hours | 39.0 hours |
| Security | Disaster recovery prep | 62.4 hours | 7.5 hours |
| Total | 201.8 hours | 46.5 hours | |
| Development | Auditing and compliance support | 80.1 hours | 8.0 hours |
| Development | Security issue debugging | 11.6 hours | 9.3 hours |
| Total | 91.7 hours | 17.3 hours | |
Risks. The risk (or likelihood) of this benefit varying from organization to organization is relatively low. This is because Forrester modeled the before state of the composite organization using data from Forrester’s Security Survey, 2023, which found that, on average, security team members spend 6.7% of their time investigating and responding to cybersecurity incidents. Because Forrester assumes that team members at the composite organization spend their time similarly before adopting GitLab, the benefit calculations are likely to be broadly applicable.
However, this benefit captures only efficiencies the composite organization realizes while maintaining its current security posture after adopting GitLab. This benefit does not capture potential improvements in security posture (e.g., fewer incidents/issues, lower risk profile, etc.) The interviewees all said that their organizations’ software was already extraordinarily secure and error-free before they started using GitLab. This was due to business requirements and partly a function of the industries the interviewees’ organizations operated in. According to the interviewees, they could not feasibly raise software security or quality any higher. Without GitLab, though, achieving such high standards was extremely time-consuming, and for the interviewees, GitLab improved security by enabling them to maintain their exceptionally high standards more efficiently. Thus, organizations with different (i.e., more standard) business requirements for security and quality might see even greater benefits from GitLab due to additional improvements in security posture (e.g., reduced risk of breaches, etc.).
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 $5.9 million.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|
| D1 | Security team members using GitLab | R6 | 7 | 33 | 65 |
| D2 | Average time per user spent investigating and responding to security incidents before GitLab | Forrester research | 6.7% | 6.7% | 6.7% |
| D3 | Reduction in incident investigation and response time per user with GitLab | Interviews | 72% | 72% | 72% |
| D4 | Average incident investigation and response time per user avoided with GitLab (hours) | D2*D3*2,080 | 100 | 100 | 100 |
| D5 | Subtotal: Incident investigation and response time avoided after GitLab (hours) | D1*D4 | 700 | 3,300 | 6,500 |
| D6 | Percentage of security team members involved in disaster recovery prep | Interviews | 20% | 20% | 20% |
| D7 | Average time per user spent on disaster recovery prep before GitLab | Interviews | 15% | 15% | 15% |
| D8 | Reduction in disaster recovery prep time per user with GitLab | Interviews | 88% | 88% | 88% |
| D9 | Subtotal: Disaster recovery prep time avoided after GitLab (hours) | (D1*D6)*(2,080*D7*D8) | 384 | 1,812 | 3,569 |
| D10 | Software development team members using GitLab | R5 | 200 | 1,000 | 2,000 |
| D11 | Average time per user spent supporting auditing/compliance before GitLab | Interviews | 3.85% | 3.85% | 3.85% |
| D12 | Reduction in time per user spent supporting auditing/compliance with GitLab | Interviews | 90% | 90% | 90% |
| D13 | Average time per user to support auditing/compliance avoided with GitLab (hours) | D11*D12*2,080 | 72 | 72 | 72 |
| D14 | Subtotal: Auditing/compliance support time avoided after GitLab (hours) | D10*D13 | 14,400 | 72,000 | 144,000 |
| D15 | Average time per user spent debugging before GitLab | Forrester research | 12.4% | 12.4% | 12.4% |
| D16 | Percentage of debugging time spent on security issues before GitLab | Interviews | 4.5% | 4.5% | 4.5% |
| D17 | Reduction in time per user spent addressing security issues with GitLab | Interviews | 20% | 20% | 20% |
| D18 | Average time per user to address security issues avoided with GitLab (hours) | D15*D16*D17*2,0 80 | 2 | 2 | 2 |
| D19 | Subtotal: Security issue debugging time avoided after GitLab (hours) | D10*D18 | 400 | 2,000 | 4,000 |
| D20 | Fully burdened annual salary for a security team member | Composite | $116,000 | $116,000 | $116,000 |
| D21 | Fully burdened annual salary for a software development team member | A14 | $138,000 | $138,000 | $138,000 |
| D22 | Productivity recapture | TEI standard | 50% | 50% | 50% |
| Dt | Security efficiencies | [(D5+D9)*(D20/2,080)+ (D14+D19)*(D21/2,080)]*D22 | $521,188 | $2,597,354 | $5,190,386 |
| Risk adjustment | ↓10% | ||||
| Dtr | Security efficiencies (risk-adjusted) | $469,069 | $2,337,619 | $4,671,347 | |
| Three-year total: $7,478,035 | Three-year present value: $5,867,995 | ||||
Evidence and data. Before investing in GitLab Ultimate, the interviewees’ organizations managed sprawling toolchains. Tools often overlapped, and interviewees described their legacy toolchains as both inefficient and opaque. After switching GitLab, the interviewees noted their organizations realized direct cost savings as they retired now-redundant legacy tools. The interviewees’ organizations benefited both by avoiding licensing costs for tools they no longer needed and by saving time on toolchain administration. For their organizations’ IT departments, toolchains consolidated around GitLab were significantly easier to manage than the vast arrays of tools they had supported before.
Interviewees reported the following benefits from toolchain consolidation:
| Cost Category | Example Successes |
|---|---|
| Software licensing costs | • GitLab replaced more than seven different tools, which the interviewees’ organizations completely retired after the investment. • Consolidating prior tools reduced total software licensing costs by 25% to 30%. • Retiring redundant security tools saved $400,000. • Sunsetted three out of the 13 core applications in the prior toolchain achieved a 23.1% reduction in the application set. |
| IT administration effort | • Toolchain management effort fell by 90%. • Previously, six engineers were required to support the prior toolchain. Since consolidating the toolchain with GitLab, only three engineers were required. • Saved one FTE by retiring a homegrown tool. • Maintenance effort for a specific tool was reduced by 80%. |
Interviewees further described their experiences with GitLab as follows:
Modeling and assumptions. Based on the interviews, Forrester assumes the following for the composite organization:
Risks. The risk (or likelihood) of this benefit varying from organization to organization is relatively low. This is because Forrester modeled the before state of the composite organization using data from Forrester’s 2024 IT And Digital Budget Benchmarks. The benefit calculations are likely to be broadly applicable.
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 $4.3 million.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|
| E1 | Percentage of revenue allocated to IT budget (before GitLab) | Forrester research | 2.4% | 2.4% | 2.4% |
| E2 | Percentage of IT budget allocated to software (before GitLab) | Forrester research | 19% | 19% | 19% |
| E3 | Percentage software budget allocated to licensing costs of software development and security tools (before GitLab) | Composite | 50% | 50% | 50% |
| E4 | Licensing costs for software development and security toolchain before GitLab | C1*E1*E2*E3 | $11,400,000 | $11,400,000 | $11,400,000 |
| E5 | Percentage of software development and security team members using GitLab | R4 | 10% | 50% | 100% |
| E6 | Reduction in licensing costs for development and security toolchain by retiring tools with GitLab | Interviews | 25% | 25% | 25% |
| E7 | Subtotal: Toolchain licensing costs avoided after GitLab | E4*E5*E6 | $285,000 | $1,425,000 | $2,850,000 |
| E8 | Toolchain administrators | Composite | 25 | 25 | 25 |
| E9 | Time spent on toolchain administration before GitLab (hours) | E8*2,080*80% | 41,600 | 41,600 | 41,600 |
| E10 | Reduction in toolchain administration time with GitLab | Interviews | 75% | 75% | 75% |
| E11 | Subtotal: Toolchain administration time avoided after GitLab (hours) | E9*E5*E10 | 3,120 | 15,600 | 31,200 |
| E12 | Fully burdened annual salary for an IT admin | Composite | $125,000 | $125,000 | $125,000 |
| E13 | Productivity recapture | TEI standard | 50% | 50% | 50% |
| Et | Toolchain consolidation | E7+E11*(E12/2,080)*E13 | $378,750 | $1,893,750 | $3,787,500 |
| Risk adjustment | ↓10% | ||||
| Etr | Toolchain consolidation (risk-adjusted) | $340,875 | $1,704,375 | $3,408,750 | |
| Three-year total: $5,454,000 | Three-year present value: $4,279,505 | ||||
Interviewees mentioned the following additional benefits that their organizations experienced but were not able to quantify:
The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement GitLab Ultimate and later realize additional uses and business opportunities, including:
Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Appendix A).
| Ref. | Cost | Initial | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|---|
| Ftr | GitLab Ultimate licensing costs | $0 | $270,508 | $1,349,924 | $2,698,542 | $4,318,974 | $3,389,011 |
| Gtr | Implementation | $588,500 | $117,832 | $58,916 | $0 | $765,248 | $744,311 |
| Htr | Ongoing management | $0 | $85,800 | $429,000 | $858,000 | $1,372,800 | $1,077,174 |
| Itr | On-premises infrastructure | $0 | $434,700 | $2,169,300 | $4,336,500 | $6,940,500 | $5,446,068 |
| Jtr | New user training | $0 | $601,128 | $2,398,704 | $2,996,928 | $5,996,760 | $4,780,516 |
| Total costs (risk-adjusted) | $588,500 | $1,509,968 | $6,405,844 | $10,889,970 | $19,394,282 | $15,437,080 | |
Evidence and data. Interviewees reported that GitLab’s scalable pricing model, which adjusts according to user count and feature needs, enabled them to manage costs efficiently while supporting their growth. This flexibility ensured that as their requirements evolved, their investment in GitLab remained aligned with their budget and expansion goals.
The CTO and SVP in defense said: “Based on our research, GitLab aligned with our vision. With [other competitors], we would have had to negotiate complex licenses. We wanted to avoid that complexity, and GitLab provided a straightforward solution.”
Modeling and assumptions. Forrester assumes the composite organization’s licensing cost per user for GitLab Ultimate is $99 per month ($1,188 per year).
Risks. The risk (or likelihood) of this cost varying from organization to organization is relatively low. Pricing for GitLab Ultimate might vary depending on a variety of factors (e.g., feature and usage requirements). Readers should contact GitLab for additional details.
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 $3.4 million.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| F1 | Total GitLab users | R5+R6 | 207 | 1,033 | 2,065 | |
| F2 | Cost per user for GitLab Ultimate license | Composite | $1,188 | $1,188 | $1,188 | |
| Ft | GitLab Ultimate licensing costs | F1*F2 | $245,916 | $1,227,204 | $2,453,220 | |
| Risk adjustment | ↑10% | |||||
| Ftr | GitLab Ultimate licensing costs (risk-adjusted) | $0 | $270,508 | $1,349,924 | $2,698,542 | |
| Three-year total: $4,318,974 | Three-year present value: $3,389,011 | |||||
Evidence and data. Interviewees described land-and-expand approaches to deploying GitLab, i.e., they started with core use cases and then scaled their usage of the platform — in terms of both functionality and user count — over time. They leveraged both internal resources and professional services for their initial implementation periods, which took months to complete. However, interviewees noted that in subsequent years, expanding their GitLab usage required significantly less effort.
The program manager in finance said: “It took [several] months to customize the platform before we started using it with the first team. We then expanded to three and eventually six teams. We had two to four GitLab professional services team members help with implementation and customization. We also worked with a GitLab customer success team member who helped us ask the right questions and focus on key areas. It was a very helpful part of our implementation journey.”
The program manager continued: “We approached implementation in our usual way. We worked with a mixed team of internal developers and external members to speed up the process and provide us with the expertise we needed. With this method, we were able to scale faster.”
Modeling and assumptions. Based on the interviews, Forrester assumes the following for the composite organization:
Risks. The risk (or likelihood) of this cost varying from organization to organization is moderate. The interviewees reported similar implementation costs when adjusted (or normalized) for various characters (e.g., number of users, etc.). However, the more that an organization differs from the composite (e.g., in terms of size, industry, business model, etc.), the more likely it is that the organization may experience a different scale of implementation costs — either disproportionately higher or lower. Implementation costs can also be affected by an organization’s existing IT environment (e.g., from overall IT complexity and business constraints to specific tools in the legacy toolchain). Lastly, some organizations may opt to substitute internal IT implementation effort for additional professional services (or vice versa). The implementation costs modeled — both internal IT effort and professional services — are representative of the experiences of the interviewees’ organizations only. The costs are not benchmarks, and readers should consult both their internal teams and GitLab when estimating their own professional services costs.
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 $744,000.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| G1 | Total implementation time from toolchain administrators (hours) | Interviews | 6,240 | 1,250 | 625 | 0 |
| G2 | Professional services | Interviews | $160,000 | $32,000 | $16,000 | $0 |
| Gt | Implementation | G1*(E12/2,080)+G2 | $535,000 | $107,120 | $53,560 | $0 |
| Risk adjustment | ↑10% | |||||
| Gtr | Implementation (risk-adjusted) | $588,500 | $117,832 | $58,916 | $0 | |
| Three-year total: $765,248 | Three-year present value: $744,311 | |||||
Evidence and data. Interviewees reported updating GitLab Ultimate more frequently than other platforms, but they described overall management effort as relatively minimal due to self-service capabilities that enabled users to troubleshoot and resolve issues without IT administrator support.
Modeling and assumptions. Based on the interviews, Forrester assumes the following for the composite organization:
Risks. The risk (or likelihood) of this cost varying from organization to organization is relatively low. The most likely source of variability is in the amount of time toolchain administrators spend managing GitLab, which could vary based on deployment characteristics (e.g., scale/scope or features deployed), user support needs (e.g., for documentation or ongoing support), business requirements (e.g., enhanced security needs), or other reasons.
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 $1.1 million.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| H1 | Toolchain administrators | E8 | 25 | 25 | 25 | |
| H2 | Percentage of software development and security team members using GitLab | R4 | 10% | 50% | 100% | |
| H3 | Percentage of toolchain administrator time allocated to ongoing management of GitLab for users | Interviews | 25% | 25% | 25% | |
| H4 | Subtotal: Toolchain administrator time spent on ongoing management of GitLab (hours) | H1*H2*H3*2,080 | 1,300 | 6,500 | 13,000 | |
| Ht | Ongoing management | H4*(E12/2,080) | $0 | $78,000 | $390,000 | $780,000 |
| Risk adjustment | ↑10% | |||||
| Htr | Ongoing management (risk-adjusted) | $0 | $85,800 | $429,000 | $858,000 | |
| Three-year total: $1,372,800 | Three-year present value: $1,077,174 | |||||
Evidence and data. For business reasons, the interviewees’ organizations opted to run GitLab Ultimate from on-premises infrastructure rather than via the public cloud. This created some additional ongoing costs associated with the platform. While the interviewees were comfortable with and had chosen GitLab in part because of its security, their organizations operated in business environments that necessitated on-premise deployments (e.g., for the organization in the defense industry, contracts often required on-premises tools for security reasons; for the organization in the energy and research space, maintaining a private cloud both enhanced security and reduced latency, etc.).
Modeling and assumptions. Based on the interviews, Forrester assumes the on-premises IT infrastructure that the composite organization uses to run GitLab Ultimate costs the organization about $2,000 per GitLab user per year. Total costs thereby increase as the organization expands its GitLab usage and deployment.
Risks. The risk (or likelihood) of this cost varying from organization to organization is moderate. The business reasons spurring the interviewees to run GitLab on-premises may not apply to many other organizations. While the interviewees’ usage of GitLab Ultimate to build software for the most demanding business needs is a testament to the strength of the GitLab platform, other organizations may not face such stringent requirements. Forrester accounts for on-premises infrastructure costs in this study both to be conservative and to accurately report the interviewees’ experiences. However, in contrast to the interviewees’ organizations, many organizations are likely to use GitLab Ultimate via the public cloud and thus avoid on-premises infrastructure costs altogether. Organizations that do may realize lower costs and higher ROIs than the composite.
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 $5.4 million.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|---|
| I1 | Total GitLab users | F1 | 207 | 1,033 | 2,065 | ||
| I2 | Approximate on-premises infrastructure cost per GitLab user | Interviews | $2,000 | $2,000 | $2,000 | ||
| It | On-premises infrastructure | I1*I2 | $0 | $414,000 | $2,066,000 | $4,130,000 | |
| Risk adjustment | ↑5% | ||||||
| Itr | On-premises infrastructure (risk-adjusted) | $0 | $434,700 | $2,169,300 | $4,336,500 | ||
| Three-year total: $6,940,500 | Three-year present value: $5,446,068 | ||||||
Evidence and data. Interviewees said that GitLab Ultimate’s intuitive interface and extensive documentation flattened the learning curve for new users.
Modeling and assumptions. Based on the interviews, Forrester assumes users at the composite organization who are new to GitLab complete 40 hours (five full workdays) of training. This training is flexible and diverse (e.g., webinars, videos, documentation, discussions with colleagues; introductory as well as advanced materials; scheduled/required sessions plus self-motivated learning; etc.) but totals up to 40 hours per user overall.
Risks. The risk (or likelihood) of this cost varying from organization to organization is relatively low. The most likely source of variability might be users’ prior experience with GitLab; users may need more or less training accordingly.
In practice, new user training takes a variety of forms: organizations may offer formal, required training sessions; users may research solutions to their problems on their own; users may learn from their colleagues; organizations may develop their own training materials and/or they may contract with GitLab or third-parties for training, etc. When this training occurs can vary as well: some training may be necessary to get started and then some learning may occur months or even years later. Forrester’s model for the composite organization accounts for all this variability. Based on the interviews, Forrester assumes that new GitLab users become fully proficient after spending a total of 40 hours learning the platform. The format and schedule of that training can vary significantly, but the composite organization still incurs the cost of its employees’ time until those employees become fully proficient with a new platform.
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 $4.8 million.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|---|
| J1 | Total GitLab users | F1 | 207 | 1,033 | 2,065 | ||
| J2 | New GitLab users | J1-J1PY | 207 | 826 | 1,032 | ||
| J3 | Training time per new GitLab user (hours) | Interviews | 40 | 40 | 40 | ||
| J4 | Fully burdened hourly rate for a new GitLab user | [(R5*A14+R6*D20)/ (R5+R6)]/2,080 | $66 | $66 | $66 | ||
| Jt | New user training | J2*J3*J4 | $0 | $546,480 | $2,180,640 | $2,724,480 | |
| Risk adjustment | ↑10% | ||||||
| Jtr | New user training (risk-adjusted) | $0 | $601,128 | $2,398,704 | $2,996,928 | ||
| Three-year total: $5,996,760 | Three-year present value: $4,780,516 | ||||||
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.
| Initial | Year 1 | Year 2 | Year 3 | Total | Present Value | |
|---|---|---|---|---|---|---|
| Total costs | ($588,500) | ($1,509,968) | ($6,405,844) | ($10,889,970) | ($19,394,282) | ($15,437,080) |
| Total benefits | $0 | $7,170,838 | $35,846,460 | $71,689,030 | $114,706,328 | $90,005,145 |
| Net benefits | ($588,500) | $5,660,870 | $29,440,616 | $60,799,060 | $95,312,046 | $74,568,065 |
| ROI | 483% | |||||
| Payback | <6 | |||||
Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists vendors in communicating the value proposition of their products and services to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of IT initiatives to both senior management and other key business stakeholders.
Benefits represent the value delivered to the business by the product. The TEI methodology places equal weight on the measure of benefits and the measure of costs, allowing for a full examination of the effect of the technology on the entire organization.
Costs consider all expenses necessary to deliver the proposed value, or benefits, of the product. The cost category within TEI captures incremental costs over the existing environment for 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. Having 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 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.
1 Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists vendors in communicating the value proposition of their products and services to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of IT initiatives to both senior management and other key business stakeholders.
2 Forrester finds that developers save a total of 609 hours per year with GitLab due to improvements throughout the SDLC (see Benefit A: Software Development Team Productivity and Benefit D: Security Efficiencies). Forrester then conservatively assumes that half of that time saved is used productively (i.e., on work generating business value). Some of the time developers save is consumed by less-productive activities (e.g., meetings, coffee breaks, chatting with coworkers, etc.).
3 Forrester finds that security team members save a total of 155 hours per year with GitLab (see Benefit D: Security Efficiencies). Forrester then conservatively assumes that half of that time saved is used productively (i.e., on work generating business value). Some of the time saved is consumed by less-productive activities (e.g., meetings, coffee breaks, chatting with coworkers, etc.).
4 Source: Forrester’s Developer Survey, 2023.
5 Ibid.
6 Ibid.
7 Source: TIER: US Software Developer Labor Market, 2024, Forrester Research, Inc., June 10, 2024.
8 Sources: Evgenia Kuzmenko, The Costs of Quiet Quitting: Hidden Consequences of Employee Turnover in Software Development, Kitrum, May 2, 2023; Greg Lewis, Industries with the Highest (and Lowest) Turnover Rates, LinkedIn, August 11, 2022.
9 Source: John Hall, The Cost Of Turnover Can Kill Your Business And Make Things Less Fun, Forbes, May 9, 2019.
10 Source: Aswath Damodaran, Margins by Sector (US), NYU Stern, January 2024.
11 Source: Forrester’s Security Survey, 2023.
12 Source: Average Salary for People with Jobs in Computer/Network Security, Payscale, August 2024.
13 Source: 2024 IT And Digital Budget Benchmarks, North America, Forrester Research, Inc., May 21, 2024.
14 Source: Average Information Technology (IT) Manager Salary, Payscale, August 2024.
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