A FORRESTER NEW TECHNOLOGY PROJECTED TOTAL ECONOMIC IMPACT™ STUDY COMMISSIONED BY MICROSOFT, MARCH 2025
The combined effects of increased distributed workforces and continual pressure for cost-effective IT solutions, simplified management processes, and seamless and robust security measures underscore the need for a comprehensive digital workplace strategy. Using both Windows 365 and Azure Virtual Desktop can enable organizations to harness the strengths of each platform to optimize their virtualization deployments according to varying business demands and user requirements.
Windows 365 and Azure Virtual Desktop are cloud-based solutions from Microsoft that provide desktop virtualization environments to organizations. They enable users to securely access their personalized desktop, apps, settings, and content from the Microsoft cloud on any device, and they cater to different use cases and organization structures.
Windows 365 is a fully managed service that operates on a fixed per-user pricing model regardless of usage, and this can simplify budgeting and eliminate concerns about fluctuating costs based on resource consumption. Microsoft is responsible for the underlying infrastructure, including endpoint management and security, which can make it easier for organizations with limited IT resources or teams that lack virtual desktop infrastructure (VDI) expertise to deploy and manage virtual desktops.
Azure Virtual Desktop is available to organizations as part of a set of eligible licenses they have and use with physical PCs. Microsoft uses a consumption-based pricing model for Azure Virtual Desktop, and the solution provides more extensive flexibility and customization options, albeit with more complex management. Organizations must manage their own Microsoft Azure subscriptions — which includes virtual machine (VM) configurations, networking, storage, and quota — and this may require more advanced technical skills and resources. Azure Virtual Desktop allows for more granular control over the environment, including multisession capabilities and specific application streaming options.
Microsoft commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying Windows 365 together with Azure Virtual Desktop.1 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of deploying, using, and maintaining Windows 365 and Azure Virtual Desktop on their organizations.
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed four decision-makers in organizations using both Windows 365 and Azure Virtual Desktop, and surveyed 207 respondents with experience using one or both of the solutions at their organization. For the purposes of this study, Forrester aggregated the experiences of the interviewees and survey respondents and combined the results into a single composite organization that is a multibillion-dollar global organization with a distributed workforce of 2,000 people including contractors, users with specialized workload needs, and employees who join through acquisition.
Interviewees said that prior to using Windows 365 and Azure Virtual Desktop, their organizations heavily relied on their on-premises infrastructures. They found it difficult to scale and integrate legacy remote and virtual solutions, especially for remote employees, contractors, and third-party partners. Providing secure access to specific tools and systems required complex and often cumbersome solutions, and it was difficult to retain control over shadow IT and ensure consistent security and compliance across various departments and external partners.
Interviewees said that after investing in Windows 365 and Azure Virtual Desktop, their organizations were able to simplify their endpoint management processes, lower infrastructure costs, and improve end-user productivity while helping provide security controls. Key results from the investment include enhanced end-user productivity from faster and more effective provisioning that results in fewer service tickets and reducing latency and outages. The investment also reduced IT infrastructure and PC lifecycle management costs significantly and streamlined security workflows.
Quantified projected 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:
Forrester modeled a range of projected low-, medium-, and high-impact outcomes based on evaluated risk. This financial analysis projects that the composite organization accrues the following three-year net present value (NPV) for each scenario by enabling Windows 365 and Azure Virtual Desktop:
Projected return on investment (PROI)
Projected benefits PV
Projected net present value (PNPV)
Total costs
From the information provided in the interviews and survey, Forrester constructed a New Technology: Projected Total Economic Impact™ (New Tech TEI) framework for those organizations considering an investment in Windows 365 and Azure Virtual Desktop.
The objective of the framework is to identify the potential cost, benefit, flexibility, and risk factors that affect the investment decision. Forrester took a multistep approach to evaluate the projected impact that using Windows 365 and Azure Virtual Desktop together can have on an organization.
Interviewed Microsoft stakeholders and Forrester analysts to gather data relative to Windows 365 and Azure Virtual Desktop.
Interviewed four decision-makers and surveyed 207 respondents at organizations using Windows 365 and/or Azure Virtual Desktop to obtain data about projected costs, benefits, and risks.
Designed a composite organization based on characteristics of the interviewees’ and survey respondents’ organizations.
Constructed a projected financial model representative of the interviews and survey using the New Tech TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewees and survey respondents.
Employed four fundamental elements of New Tech TEI in modeling the investment’s potential 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 Microsoft 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 Windows 365 and Azure Virtual Desktop.
Microsoft 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.
Microsoft provided the customer names for the interviews but did not participate in the interviews.
Forrester fielded the double-blind survey using a third-party survey partner.
Consulting Team:
Kim Finnerty
Caro Giordano
| Role | Industry | Region | Number of VDI users |
|---|---|---|---|
| Digital modern workplace manager | Food/pharmaceuticals | Global (Europe HQ) | 280 |
| Manager of endpoint services | Technology services | APAC (Japan HQ) | 4,700 |
| CIO | Healthcare technology | Global (US HQ) | 4,000 |
| Innovation architect | Healthcare | US | 300,000 |
Forrester interviewed four decision-makers whose organizations use both Windows 365 and Azure Virtual Desktop and surveyed an additional 207 respondents with experience using one or both of the solutions at their organization. For more details on these individuals and the organizations they represent, see Appendix B.
Both interviewees and survey respondents noted how their organizations struggled with common challenges, including:
Base: 146 respondents with experience using Windows 365 at their organization
Note: Respondents chose up to three benefits.
Source: A commissioned study conducted by Forrester Consulting on behalf of Microsoft, November 2024
Base: 143 respondents with experience using Azure Virtual Desktop 365 at their organization
Note: Respondents chose up to three benefits.
Source: A commissioned study conducted by Forrester Consulting on behalf of Microsoft, November 2024
The interviewees’ and survey respondents’ organizations searched for a solution that could support:
Based on the interviews and survey, 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 four interviewees’ organizations and the 207 survey respondents’ 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 global organization is a multibillion-dollar company with 2,000 employees, and it grows by 5% each year. The organization employs an additional 500 contractors, and turnover for these contractors averages 25% per year. The composite provides individual company-owned laptops to contractors and employees of acquired firms and uses another on-prem VDI solution to meet its needs for virtual desktops.
The “employee” group includes a subset of approximately 200 users, including graphic designers, video production staff, customer service representatives, developers, and data scientists with specialized workload needs. In line with the rest of the organization, the number of these users grows 5% per year.
The organization is undergoing rapid growth and makes one acquisition per year. The number of employees of acquisition targets who need immediate access to internal financial systems starts at 100 and grows 5% per year in subsequent years.
In its prior environment, the composite organization deployed laptops to contractors and new employees acquired via M&A activity. M&A employees experienced a delay in corporate access until a desktop computer arrived. Users with specialized workload needs only had access to local computing resources.
Deployment characteristics. The composite organization begins its migration to a Windows 365 and Azure Virtual Desktop environment by establishing a BYOPC program for its current contractors and offering Windows 365 to new hires and employees of acquisition targets who need immediate access to internal financial systems. Over time, the organization extends Windows 365 to existing employees, eventually migrating more than 50% of the workforce to Windows 365. It offers Azure Virtual Desktop to employees with specialized workloads who would benefit from the platform.
| Projected Benefits | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|
| Total projected benefits (low) | $2,947,455 | $2,216,588 | $2,757,209 | $7,921,252 | $6,582,927 |
| Total projected benefits (mid) | $3,654,460 | $3,048,590 | $3,770,285 | $10,473,335 | $8,674,403 |
| Total projected benefits (high) | $4,361,465 | $3,880,593 | $4,783,361 | $13,025,419 | $10,765,881 |
Evidence and data. Interviewees said reducing latency and outages significantly enhanced end-user productivity by minimizing downtime and speeding up troubleshooting processes. Constant monitoring and tech support resolved issues quickly — often within an hour — to ensure critical operations functioned without prolonged interruptions. This support was crucial for global teams working at all hours, as it prevented extended downtimes and allowed for faster recovery.
Modeling and assumptions. Based on the interviews and survey, Forrester assumes the following about the composite organization:
Results. This yields a three-year projected PV ranging from $3.1 million to $6.2 million.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| A1 | Employees and contractors who use Windows 365 (with or without Azure Virtual Desktop) | Composite | 1,700 | 2,330 | 2,991 | |
| A2Low | 24 | 24 | 24 | |||
| A2Mid | Avoided downtime from latency and outages per user (hours) | Interviews | 36 | 36 | 36 | |
| A2High | 48 | 48 | 48 | |||
| A3 | Average fully burdened hourly rate for a user | Research data | $45 | $45 | $45 | |
| A4 | Productivity recaptured | TEI methodology | 50% | 50% | 50% | |
| AtLow | $918,000 | $1,258,200 | $1,615,140 | |||
| AtMid | End-user productivity gains from reduced latency and outages | A1*A2*A3*A4 | $1,377,000 | $1,877,300 | $2,422,710 | |
| AtHigh | $1,836,000 | $2,516,400 | $3,230,280 | |||
|
Three-year projected total: $3,087,859 to $6,175,718 |
Three-year projected present value: $3,087,859 to $6,175,718 |
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Evidence and data. The interviewees said their organizations reduced PC lifecycle management costs by allowing contractors and select groups of employees to use their own devices with Windows 365, which eliminated the need for frequent hardware replacements, extensive shipping logistics, and inventory management. This approach also minimized the time and resources needed to set up and maintain physical machines, leading to significant cost savings and increased efficiency. Interviewees said that because Windows 365 is a SaaS product, it was easy for their organizations’ existing provisioning teams to deploy and maintain it with no additional investment in developers or other advanced IT specialists.
Modeling and assumptions. Based on the interviews and survey, Forrester assumes the following about the composite organization:
Results. This yields a three-year projected PV ranging from $1.1 million to $1.2 million.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| B1 | Avoided laptops for contractors | Composite | 625 | 125 | 125 | |
| B2 | Cost of a standard laptop | Interviews | $1,200 | $1,200 | $1,200 | |
| B3 | Shipping cost per machine | Interviews | $100 | $100 | $100 | |
| B4 | BYOPC budget per contractor | Interviews | $100 | $100 | $100 | |
| B5 | Subtotal: Cost savings through BYOPC enablement | B1*(B2+B3-B4) | $750,000 | $150,000 | $150,000 | |
| B6 | Contractors onboarded | Composite | 625 | 125 | 125 | |
| B7 | IT provisioning time per machine before Windows 365 (hours) | Interviews | 4 | 4 | 4 | |
| B8 | Subtotal: IT provisioning time (hours) | B6*B7 | 2,500 | 500 | 500 | |
| B9 | Contractors who use Windows 365 | Composite | 500 | 500 | 500 | |
| B10 | IT maintenance time per machine before Windows 365 (hours) | Interviews | 2 | 2 | 2 | |
| B11 | Subtotal: IT maintenance time (hours) | B9*B10 | 1,000 | 1,000 | 1,000 | |
| B12 | Contractors offboarded | Composite | 125 | 125 | 125 | |
| B13 | IT device recovery time per machine before Windows 365 (hours) | Interviews | 4 | 4 | 4 | |
| B14 | Subtotal: IT device recovery time (hours) | B12*B13 | 500 | 500 | 500 | |
| B15 | Subtotal: IT provisioning, maintenance, and device recovery time (hours) | B8+B11+B14 | 4,000 | 2,000 | 2,000 | |
| B16Low | 75% | 75% | 75% | |||
| B16Mid | Reduction in IT provisioning, maintenance and device recovery time with Windows 365 | Interviews | 85% | 85% | 85% | |
| B16High | 95% | 95% | 95% | |||
| B17 | Average fully burdened hourly rate for an IT resource | Research data | $80 | $80 | $80 | |
| B18 | Productivity recaptured | TEI methodology | 50% | 50% | 50% | |
| BtLow | $870,000 | $210,000 | $210,000 | |||
| BtMid | Reduced PC lifecycle management costs | B5+(B15*B16* B17*B18) |
$886,000 | $218,000 | $218,000 | |
| BtHigh | $902,000 | $226,000 | $226,000 | |||
|
Three-year projected total: $1,290,000 to $1,354,000 |
Three-year projected present value: $1,122,239 to $1,176,674 |
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Evidence and data. The interviewees described how faster provisioning significantly boosted end-user productivity by enabling immediate access to necessary tools and systems. Windows 365 allowed new employees and contractors to start working within hours instead of days, eliminating delays associated with shipping physical PCs. Interviewees said this rapid setup is particularly beneficial for overseas teams and external partners because it allows them to work from any location without the need for extensive setup or troubleshooting. Overall, this leads to quicker onboarding, reduced downtime, and enhanced operational efficiency.
Modeling and assumptions. Based on the interviews and survey, Forrester assumes the following about the composite organization:
Results. This yields a three-year projected PV ranging from $1.6 million to $1.8 million.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| C1 | Contractors and new employees onboarded | Composite | 1,825 | 755 | 786 | |
| C2 | Provisioning time per user before Windows 365 (days) | Interviews | 4 | 4 | 4 | |
| C3Low | 75% | 75% | 75% | |||
| C3Mid | Reduction in provisioning time with Windows 365 | Interviews | 80% | 80% | 80% | |
| C3High | 85% | 85% | 85% | |||
| C4 | Average fully burdened hourly rate for a user | Research data | $45 | $45 | $45 | |
| C5 | Productivity recaptured | TEI methodology | 50% | 50% | 50% | |
| CtLow | $985,500 | $407,700 | $424,440 | |||
| CtMid | End-user productivity gains from faster provisioning | C1*C2*C3*(C4*8)*C5 | $1,051,200 | $434,880 | $452,736 | |
| CtHigh | $1,116,900 | $462,060 | $481,032 | |||
|
Three-year projected total: $1,817,640 to $2,059,992 |
Three-year projected present value: $1,551,739 to $1,758,638 |
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Evidence and data. The innovation architect at the healthcare company told Forrester their organization reduced costs associated with on-premises operations as much as 40% after migrating to Microsoft cloud services. They also said the company further reduced costs by consolidating the cloud service providers it worked with and shifting more work to Azure.
According to the innovation architect at a healthcare company: “It does reduce the costs significantly because you don’t have a lab, and you have fewer servers in the lab. Obviously, your electricity is less and you don’t need as many people on location, and having fewer labs and fewer servers within our labs has significantly reduced costs. To set up a lab just to run certain on-prem operations costs us anywhere from $5 million to $15 million. And then you have to have one to three lab operators who actually go and monitor our servers and so on. On-prem is pricey.”
The same interviewee then discussed the work their organization did to consolidate cloud providers to further reduce costs: “We use [other cloud service providers], but sparingly, because Azure is so much less expensive and more cost-efficient to use than setting up environments to deploy onto [other providers’] clouds. Those instances cost us a lot more.”
The interviewee added: “We migrated almost all of the applications that were running AI feasibility tests and different AI models to Azure this year because, last year, it cost anywhere from twice as much to three times as much to run those operations with other service providers. The majority of what we’re doing is on Azure now.”
Modeling and assumptions. Based on the interviews and survey, Forrester assumes the following about the composite organization:
Results. This yields a three-year projected PV ranging from $722,000 to $1.5 million.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| D1 | On-premises IT infrastructure cost before Windows 365 and Azure Virtual Desktop | Composite | $1,500,000 | $1,500,000 | $1,500,000 | |
| D2Low | 10% | 20% | 30% | |||
| D2Mid | Reduction in IT infrastructure cost with Windows 365 and Azure Virtual Desktop | Interviews | 20% | 30% | 40% | |
| D2High | 30% | 40% | 50% | |||
| DtLow | $150,000 | $300,000 | $450,000 | |||
| DtMid | Reduced IT infrastructure costs | D1*D2 | $300,000 | $450,000 | $600,000 | |
| DtHigh | $450,000 | $600,000 | $750,000 | |||
|
Three-year projected total: $900,000 to $1,800,000 |
Three-year projected present value: $722,389 to$1,468,445 |
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Evidence and data. The interviewees mentioned several of the security features associated with Windows 365 and Azure Virtual Desktop, including conditional access policies, customer managed keys, MFA, and role-based access control (RBAC), ensuring strict control over data access and transfer. Interviewees said they consider this robust security framework to be crucial for maintaining high standards and resiliency, especially in sensitive and highly regulated sectors such as healthcare and financial services. They also noted that virtualization deployment eliminates the need for physical USB ports, further enhancing security by helping to prevent unauthorized data transfers. They estimated Windows 365 reduced the need for extensive on-premises security infrastructure and personnel and saved their organizations between 20% and 25% of the associated costs.
Modeling and assumptions. Based on the interviews and survey, Forrester assumes the following about the composite organization:
Results. This yields a three-year projected PV ranging from $60,000 to $122,000.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| E1 | FTEs who managed endpoint security before Windows 365 and Azure Virtual Desktop | Composite | 4 | 4 | 4 | |
| E2Low | 5% | 10% | 15% | |||
| E2Mid | Reduction in time spent managing security after Windows 365 and Azure Virtual Desktop | Interviews | 10% | 15% | 20% | |
| E2High | 15% | 20% | 25% | |||
| E3 | Average fully burdened hourly rate for an IT security administrator | Research data | $60 | $60 | $60 | |
| E4 | Productivity recaptured | TEI methodology | 50% | 50% | 50% | |
| EtLow | $12,480 | $24,960 | $37,440 | |||
| EtMid | Improved security | E1*E2*E3*2,080*E4 | $24,960 | $37,440 | $49,920 | |
| EtHigh | $37,440 | $49,920 | $62,400 | |||
|
Three-year projected total: $74,8800 to $149,760 |
Three-year projected present value: $60,103 to $122,175 |
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Evidence and data. Interviewees said both Windows 365 and Azure Virtual Desktop empower users with self-service options, allowing them to resolve common issues without needing to contact IT support. They explained that real-time monitoring, automated ticket management, and dynamic resource allocation also contribute to these efficiencies, which reduces service and infrastructure costs and allows IT teams to focus on more complex issues rather than being bogged down by routine support requests.
Modeling and assumptions. Based on the interviews and survey, Forrester assumes the following about the composite organization:
Results. This yields a three-year projected PV ranging from $39,000 to $64,000.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| F1 | Employees and contractors who use Windows 365 (with or without Azure Virtual Desktop) | Composite | 1,700 | 2,330 | 2,991 | |
| F2 | Average number of service tickets opened | F1*3 | 5,100 | 6,990 | 8,973 | |
| F3 | Average cost per service ticket | TEI methodology | $15 | $15 | $15 | |
| F4Low | 15% | 15% | 15% | |||
| F4Mid | Percent reduction in the number of service tickets opened following the introduction of Windows 365 and Azure Virtual Desktop | Interviews | 20% | 20% | 20% | |
| F4High | 25% | 25% | 25% | |||
| FtLow | $11,475 | $15,728 | $20,189 | |||
| FtMid | Savings from reduced number of service tickets opened | F2*F3*F4 | $15,300 | $20,970 | $26,919 | |
| FtHigh | $19,125 | $26,213 | $33,649 | |||
|
Three-year projected total: $47,392 to $78,987 |
Three-year projected present value: $38,598 to $64,331 |
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Interviewees and survey respondents 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 Windows 365 together with Azure Virtual Desktop 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 |
|---|---|---|---|---|---|---|---|
| Gtr | Microsoft costs | $0 | $963,900 | $1,285,704 | $1,622,943 | $3,872,547 | $3,158,179 |
| Htr | Migration and ongoing management costs | $114,400 | $36,608 | $36,608 | $73,216 | $260,832 | $232,943 |
| Total costs (risk-adjusted) | $114,400 | $1,000,508 | $1,322,312 | $1,696,159 | $4,133,379 | $3,391,122 | |
Evidence and data. Interviewees told Forrester their organization’s Windows 365 license operates on a fixed per-user per-month pricing model, so it pays a monthly fee per user regardless of usage. In contrast, their Azure Virtual Desktop fees follow a consumption-based model in which monthly costs vary depending on the resources used (e.g., VM size, operational hours). The organizations’ Windows Enterprise E3 licenses entitle them to use Azure Virtual Desktop without the need for Remote Desktop Services Client Access Licenses (RDS CALs).
Pricing may vary. Contact Microsoft for additional details.
Modeling and assumptions. Based on the interviews and survey, Forrester assumes the following about the composite organization:
Risks. Organizational differences that may impact these costs include:
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 $3.2 million.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| G1 | Standard Windows 365 license cost per user per month | Microsoft | $41 | $41 | $41 | |
| G2 | Contractors who use Windows 365 | Composite | 500 | 500 | 500 | |
| G3 | Subtotal: Windows 365 licensing cost for contractors | G1*G2*12 | $246,000 | $246,000 | $246,000 | |
| G4 | Employees who use Windows 365 | Composite | 1,200 | 1,830 | 2,491 | |
| G5 | Subtotal: Windows 365 licensing cost for employees | G1*G4*12 | $590,400 | $900,360 | $1,225,572 | |
| G6 | Employees who use Azure Virtual Desktop | Composite | 200 | 210 | 221 | |
| G7 | Azure Virtual Desktop compute costs per user per month | Microsoft | $21 | $18 | $15 | |
| G8 | Azure Virtual Desktop storage costs per user per month | Microsoft | $5 | $5 | $5 | |
| G9 | Azure Virtual Desktop networking costs per user per month | Microsoft | $8 | $8 | $8 | |
| G10 | Subtotal: Azure Virtual Desktop compute, storage and networking costs | G6*(G7+G8+G9)*12 | $81,600 | $78,120 | $74,256 | |
| Gt | Microsoft costs | G3+G5+G10 | $0 | $918,000 | $1,224,480 | $1,545,660 |
| Risk adjustment | ↑5% | |||||
| Gtr | Microsoft costs (risk-adjusted) | $0 | $963,900 | $1,285,704 | $1,622,943 | |
| Three-year total: $3,872,723 | Three-year present value: $3,158,312 | |||||
Evidence and data. Interviewees said deployment of Windows 365 and Azure Virtual Desktop at their organizations ranged from three to 18 months, depending on the size and scope. Some organizations handled the deployment on their own while others brought in third parties to manage different aspects of provisioning.
Modeling and assumptions. Based on the interviews and survey, Forrester assumes the following about the composite organization:
Risks. Organizational differences that may impact these costs include:
Results. To account for these risks, Forrester adjusted this cost upward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $233,000.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| H1 | Time spent on migration (months) | Interviews | 3 | |||
| H2 | FTEs involved in migration | Interviews | 5 | |||
| H3 | Percent of time spent on migration | Interviews | 50% | |||
| H4 | Average fully burdened hourly rate for an IT resource | Research data | $80 | $80 | $80 | $80 |
| H5 | Subtotal: Migration cost | (H1/12)*H2*H3*H4*2,080 | $104,000 | |||
| H6 | FTEs dedicated to managing Windows 365 and Azure Virtual Desktop | Interviews | 1 | 1 | 2 | |
| H7 | Percent of time FTEs spend managing Windows 365 and Azure Virtual Desktop | Interviews | 20% | 20% | 20% | |
| H8 | Subtotal: Ongoing management costs | H4*H6*H7*2,080 | $33,280 | $33,280 | $66,560 | |
| Ht | Migration and ongoing management costs | H5+H8 | $104,000 | $33,280 | $33,280 | $66,560 |
| Risk adjustment | ↑10% | |||||
| Htr | Migration and ongoing management costs (risk-adjusted) | $114,400 | $36,608 | $36,608 | $73,216 | |
| Three-year total: $260,832 | Three-year present value: $232,943 | |||||
The financial results calculated in the Benefits and Costs sections can be used to determine the PROI and projected NPV for the composite organization’s investment. Forrester assumes a yearly discount rate of 10% for this analysis.
These risk-adjusted PROI and projected NPV 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 | ($114,400) | ($1,000,508) | ($1,322,312) | ($1,696,159) | ($4,133,379) | ($3,391,122) |
| Total benefits (low) | $0 | $2,947,455 | $2,216,588 | $2,757,209 | $7,921,252 | $6,582,927 |
| Total benefits (mid) | $0 | $3,654,460 | $3,048,590 | $3,770,285 | $10,473,335 | $8,674,403 |
| Total benefits (high) | $0 | $4,361,465 | $3,880,593 | $4,783,361 | $13,025,419 | $10,765,881 |
| Net benefits (low) | ($114,400) | $1,946,947 | $894,276 | $1,061,050 | $3,787,873 | $3,191,805 |
| Net benefits (mid) | ($114,400) | $2,653,952 | $1,726,278 | $2,074,126 | $6,339,956 | $5,283,281 |
| Net benefits (high) | ($114,400) | $3,360,957 | $2,558,281 | $3,087,202 | $8,892,040 | $7,374,759 |
| PROI (low) | 94% | |||||
| PROI (mid) | 156% | |||||
| PROI (high) | 217% | |||||
New Technology: Projected Total Economic Impact (New Tech TEI) 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 New Tech TEI methodology helps companies demonstrate and justify the projected tangible value of business and technology initiatives to both senior management and other key stakeholders.
Projected benefits represent the projected value the solution delivers to the business. The New Tech TEI methodology places equal weight on the measure of projected benefits and projected costs, allowing for a full examination of the solution’s effect on the entire organization.
Projected 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 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.
| TITLE | |
|---|---|
| C-level executive | 10% |
| Vice president | 18% |
| Director | 29% |
| Manager | 43% |
| INDUSTRY | |
|---|---|
| Retail | 9% |
| Other manufacturing | 8% |
| Healthcare | 7% |
| Telecommunications services | 7% |
| Financial services and/or insurance | 6% |
| Consumer products, food and/or beverage manufacturing | 5% |
| Transportation and logistics | 5% |
| Advertising and/or marketing | 5% |
| Business or professional services | 5% |
| Energy, utilities and/or waste management | 5% |
| Government | 5% |
| Travel and hospitality | 5% |
| Electronics | 4% |
| Media and/or leisure | 4% |
| Technology and/or technology services | 4% |
| Construction | 3% |
| Chemicals and/or metals | 3% |
| Consumer services | 3% |
| Education | 3% |
| Nonprofits | 1% |
| Legal services | 1% |
| Agriculture | 0% |
| COUNTRY | |
|---|---|
| United States | 19% |
| Canada | 11% |
| India | 11% |
| Australia | 10% |
| Japan | 10% |
| United Kingdom | 8% |
| The Netherlands | 7% |
| Germany | 6% |
| Mexico | 5% |
| France | 5% |
| Brazil | 4% |
| Spain | 4% |
| ANNUAL REVENUE | |
|---|---|
| $200M to $299M | 13% |
| $300M to $399M | 20% |
| $400M to $499M | 15% |
| $500M to $999M | 16% |
| $1B to $5B | 20% |
| >$5B | 15% |
Related Forrester Research
The State Of End-User Computing (EUC), 2024, Forrester Research, Inc., May 30, 2024.
Are You Overspending On Microsoft 365?, Forrester Research, Inc., May 20, 2024.
The Year Of The AI PC Is 2025, Forrester Research, Inc., March 28, 2024.
The State Of VDI, 2023, Forrester Research, Inc., October 20, 2023.
Tracy Woo, Naveen Chhabra, Andrew Hewitt, Brent Ellis, Paddy Harrington, Allie Mellen, David Holmes, VMware Customers: Brace For Impact, Forrester Blogs.
How To Secure Your Virtual Desktop Infrastructure Deployment, Forrester Research, Inc., April 13, 2022.
Andrew Hewitt, The Anywhere Operating System, Forrester Blogs.
1 Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists solution providers in communicating their value proposition to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of business and technology initiatives to both senior management and other key stakeholders.
2 The percentages referenced in this section are based on 143 survey respondents representing organizations using Azure Virtual Desktop and responding to the following question: “What are your primary use cases for Azure Virtual Desktop?” Source: A commissioned study conducted by Forrester Consulting on behalf of Microsoft, November 2024.
3 The percentages referenced in this section are based on 207 survey respondents representing organizations using Windows 365 and/or Azure Virtual Desktop and responding to the following question: “What are the most valuable benefits your organization has experienced from [Windows 365/Azure Virtual Desktop]?” Source: A commissioned study conducted by Forrester Consulting on behalf of Microsoft, November 2024.
4 The percentages referenced in this section are based on 146 survey respondents representing organizations using Windows 365 and responding to the following question: “Approximately how much does your organization save per user/desktop by issuing virtual desktops rather than physical hardware? Please consider the cost to purchase/lease hardware, shipping costs, asset maintenance, lease management, etc.” Source: A commissioned study conducted by Forrester Consulting on behalf of Microsoft, November 2024.
5 The percentages referenced in this section are based on 143 survey respondents representing organizations using Azure Virtual Desktop and responding to the following question: “Approximately how much does your organization save per user/desktop by issuing virtual desktops with Azure Virtual Desktop rather than physical hardware? Please consider the cost to purchase/lease hardware, shipping costs, asset maintenance, lease management, etc.” Source: A commissioned study conducted by Forrester Consulting on behalf of Microsoft, November 2024.
6 The percentage referenced in this sentence is based on 146 survey respondents representing organizations using Windows 365 and responding to the following question: “Approximately what percentage of total working time on the IT team is saved by using Windows 365?” Source: A commissioned study conducted by Forrester Consulting on behalf of Microsoft, November 2024.
7 The percentage referenced in this sentence is based on 146 survey respondents representing organizations using Windows 365 and responding to the following question: “Approximately how much faster do new/acquired employees or contractors get access to the apps and files required to do their job with Windows 365 vs. providing them with a company PC?” Source: A commissioned study conducted by Forrester Consulting on behalf of Microsoft, November 2024.
8 The percentage referenced in this sentence is based on 143 survey respondents representing organizations using Azure Virtual Desktop and responding to the following question: “Approximately how much faster do new/acquired employees or contractors get access to the apps and files required to do their job with Azure Virtual Desktop vs. providing them with a company PC?” Source: A commissioned study conducted by Forrester Consulting on behalf of Microsoft, November 2024.
9 The percentages referenced in this sentence are based on 207 survey respondents representing organizations using Windows 365 and/or Azure Virtual Desktop and responding to the following question: “What are the most valuable benefits your organization has experienced from [Windows 365/Azure Virtual Desktop]?” Source: A commissioned study conducted by Forrester Consulting on behalf of Microsoft, November 2024.
10 The percentage referenced in this sentence is based on 207 survey respondents representing organizations using Windows 365 and/or Azure Virtual Desktop and responding to the following question: “Approximately what reduction has the organization experienced in help ticket volume?” Source: A commissioned study conducted by Forrester Consulting on behalf of Microsoft, November 2024.
11 The percentage referenced in this sentence is based on 146 survey respondents representing organizations using Windows 365 and responding to the following question: “Approximately what reduction has the organization experienced in help ticket volume?” Source: A commissioned study conducted by Forrester Consulting on behalf of Microsoft, November 2024.
12 The percentage referenced in this sentence is based on 143 survey respondents representing organizations using Azure Virtual Desktop and responding to the following question: “Approximately what reduction has the organization experienced in help ticket volume as a result of Azure Virtual Desktop?” Source: A commissioned study conducted by Forrester Consulting on behalf of Microsoft, November 2024.
13 The percentage referenced in this sentence is based on 146 survey respondents representing organizations using Windows 365 and responding to the following question: “What are the most valuable benefits your organization has experienced from [Windows 365/Azure Virtual Desktop]?” Source: A commissioned study conducted by Forrester Consulting on behalf of Microsoft, November 2024.
14 The percentage referenced in this sentence is based on 143 survey respondents representing organizations using Azure Virtual Desktop and responding to the following question: “What are the most valuable benefits your organization has experienced from [Windows 365/Azure Virtual Desktop]?” Source: A commissioned study conducted by Forrester Consulting on behalf of Microsoft, November 2024.
15 The percentages referenced in this sentence are based on 146 survey respondents representing organizations using Windows 365 and 143 survey respondents with experience using Azure Virtual Desktop and responding to the following question: “What are the most valuable benefits your organization has experienced from [Windows 365/Azure Virtual Desktop]?” Source: A commissioned study conducted by Forrester Consulting on behalf of Microsoft, November 2024.
16 The percentages referenced in this sentence are based on 143 survey respondents representing organizations using Azure Virtual Desktop and responding to the following question: “What are your primary use cases for Azure Virtual Desktop?” Source: A commissioned study conducted by Forrester Consulting on behalf of Microsoft, November 2024.
17 The percentage referenced in this sentence is based on 82 survey respondents representing organizations using both Windows 365 and Azure Virtual Desktop and responding to the following question: “Are Windows 365 and Azure Virtual Desktop managed by different teams in IT?” Source: A commissioned study conducted by Forrester Consulting on behalf of Microsoft, November 2024.
18 The number of licenses referenced is based on 146 survey respondents representing organizations using Windows 365 and responding to the following question: “How many Windows 365 licenses does your organization have?” Source: A commissioned study conducted by Forrester Consulting on behalf of Microsoft, November 2024; The number of FTEs referenced is based on 136 survey respondents representing organizations Windows 365 and giving a valid response to the following question: “How many FTEs manage/maintain Windows 365 on an ongoing basis?” Source: A commissioned study conducted by Forrester Consulting on behalf of Microsoft, November 2024.
19 The number of Azure Virtual Desktops referenced is based on 143 survey respondents representing organizations using Azure Virtual Desktop and responding to the following question: “How many Azure Virtual Desktops does your organization manage?” Source: A commissioned study conducted by Forrester Consulting on behalf of Microsoft, November 2024; The number of FTEs referenced is based on 134 survey respondents representing organizations using Azure Virtual Desktop and giving a valid response to the following question: “How many FTEs manage/maintain Azure Virtual Desktop on an ongoing basis?” Source: A commissioned study conducted by Forrester Consulting on behalf of Microsoft, November 2024.
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