The Total Economic Impact™ Of Microsoft Teams Rooms
Cost Savings And Business Benefits Enabled By Teams Rooms
A Forrester Total Economic Impact™ Study Commissioned By Microsoft, March 2024
Organizations today face significant challenges in providing collaborative and engaging environments for their hybrid workforces. Employers and employees alike have higher expectations for offices, which serve as hubs for collaboration both in-person and with remote participants. In this new, dynamic, and flexible environment, they require solutions that enable them to communicate with their customers and colleagues in a way that drives actionability of meetings. Furthermore, they require tools that promote sustained engagement that makes everyone a first-class citizen, whether they are in the office or participating from a remote location. Technical issues and disruptions cannot be accepted in this new world. Leaders desire richer conference room facilities that empower collaboration, productivity, and culture-building. With AI transformation top of mind with customers, these leaders also are looking into their organizations’ conference and meeting spaces for ways AI can change collaboration, productivity, and meeting across their organizations.
Teams Rooms are designed for inclusive collaboration and engagement where everyone has a seat at the table and can fully participate, whether they are at the office or working remotely. With Teams Rooms, any space can be turned into a smart meeting space that becomes intelligently inclusive, richly collaborative, flexible, scalable, and easy to deploy, use, manage, and secure. Using Teams Rooms can increase productivity and decrease costs for both business and technical users.
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 Teams Rooms.1 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of Teams Rooms on their organizations.
Return on investment (ROI)
342%
Net present value (NPV)
$1.27M
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed four representatives with experience using Teams Rooms. For the purposes of this study, Forrester aggregated the interviewees’ experiences and combined the results into a single composite organization.
Interviewees said that prior to using Teams Rooms, their organizations utilized outdated video and collaborative technology solutions that required numerous licenses and significant technical support to set up meetings or mitigate how often meetings failed to start on time. These limitations led to inefficient meetings that did not effectively drive decisions and actionable outcomes because attendees spent significant time resolving the issues.
The interviewees touted that after the investment in Teams Rooms, their
organizations could start meetings immediately and on time, and that workers
could be more collaborative with customers and colleagues whether meeting
attendees participated in person or remotely. Furthermore, they said using Teams
Rooms helped their organizations drive increased employee satisfaction and
higher engagement, which made them more competitive at satisfying and retaining
employees.
Key Findings
Quantified benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:
- Improved user workflow efficiencies during and after meetings, worth $108,000 over three years. The composite organization saves 5,382 hours of business users’ time over three years from Teams Rooms preventing general issues related to workflow productivity.
- Increased employee productivity by reallocating saved commute time to work tasks, worth $679,000 over three years. The composite organization reallocates 17,539 hours of business users’ commuting time to work tasks over three years.
- Reduced time spent by IT admins on room issue resolution, worth $408,000 over three years. Teams Rooms drive the savings of 8,791 hours on room issue resolution by IT admins at the composite organization.
- Increased meeting efficiency by minimizing technical issue disruptions during meetings, worth $398,000 over three years. According to interviews, Teams Rooms deployment is the catalyst in the composite organization’s increasing of meeting efficiency by minimizing technical issue disruptions and savings 7,937 hours of IT support time over three years.
- Improved IT efficiency driven by remote configuration and device analytics, worth $41,000 over three years. Teams Rooms capabilities in remove configuration and device analytics were instrumental in improving IT’s efficiency in the composite organization, worth $10,806 in year 1, $16,981 in year 2, and $23,156 in year 3.
Unquantified benefits. Benefits that provide value for the composite organization but are not quantified for this study include:
- Standardization around one tool or solution. Interviewees told Forrester their organizations were able to move from using numerous tools or solutions (e.g., competing videoconference or web conferencing solutions) and emailing meeting attendees attachments or sharing documents via online texting apps to using one solution with Teams Rooms.
- Increased ability to communicate and collaborate effectively in hybrid work environments. Interviewees noted that previous solutions did not allow their organizations’ workers to communicate and collaborate as effectively as Teams Rooms does. They said that with other solutions, remote participants found it difficult to understand and view who was talking in a conference room in the office. Similarly, remote participants felt like second-class citizens because they were not in-person participants.
- Optimized ability for non-IT users to start meetings on time through easier-to-use solutions. Interviewees unanimously lamented delays in starting meetings, which they said could take at least 5 to 10 minutes per meeting. They explained that Teams Rooms allow for immediate access of meetings through one-touch functionality.
- Increased ability to operate meetings from any location, in the field or at home, and on any device. Interviewees felt Teams Rooms allow their organizations’ employees to access meetings from anywhere — whether they’re in the office or in the field — and from any device, whether it’s a laptop, desktop, or mobile device.
- Streamlined ability to include participants using other solutions. Interviewees said that while most solutions are focused on their own ecosystems, Teams Rooms allow customers to run meetings that offer other solutions to be answered through its touch pad.
Costs. Three-year, risk-adjusted PV costs for the composite organization include:
- Teams Rooms device costs. The composite organization pays risk-adjusted device costs of $139,000 over three years.
- Installation of devices and other hardware. The composite organization incurs a risk-adjusted $162,000 for the installation of devices and other hardware over three years.
- IT setup, configuration time, and support for rooms and devices. The composite organization incurs a risk-adjusted $41,000 for IT setup, configuration time, and support for rooms and devices over three years.
- Teams Rooms license cost. The composite organization incurs a risk-adjusted $28,000 for Teams Rooms licenses over three years.
The representative interviews and financial analysis found that a composite organization experiences benefits of $1.63 million over three years versus costs of $370,000, adding up to a net present value (NPV) of $1.27 million and an ROI of 342%.
Key Statistics
-
Return on investment (ROI)
342%
-
Benefits PV
$1.63M
-
Net present value (NPV)
$1.27M
-
Payback
<6 months
Benefits (Three Year)
Improved user workflow efficiencies during and after meetings Increased employee productivity by reallocating saved commute time to work tasks Reduced time spent by IT admins on room issue resolution Increased meeting efficiency by minimizing technical issue disruptions during meetings Improved IT efficiency driven by remote configuration and device analyticsTEI Framework And Methodology
From the information provided in the interviews, Forrester constructed a Total Economic Impact™ framework for those organizations considering an investment in Microsoft Teams Rooms.
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 Teams Rooms can have on an organization.
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Due Diligence
Interviewed Microsoft stakeholders and Forrester analysts to gather data relative to Teams Rooms.
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Interviews
Interviewed four representatives at organizations using Teams Rooms to obtain data about costs, benefits, and risks.
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Composite Organization
Designed a composite organization based on characteristics of the interviewees’ organizations.
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Financial Model Framework
Constructed a financial model representative of the interviews using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewees.
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Case Study
Employed four fundamental elements of TEI in modeling the investment impact: benefits, costs, flexibility, and risks. Given the increasing sophistication of ROI analyses related to IT investments, Forrester’s TEI methodology provides a complete picture of the total economic impact of purchase decisions. Please see Appendix A for additional information on the TEI methodology.
Disclosures
Readers should be aware of the following:
This study is commissioned by 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 Teams Rooms.
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.
Consulting Team:
Roger Nauth
Drivers leading to the Teams Rooms investment
Interviews
| Role | Industry | Region | Employees | Revenues |
|---|---|---|---|---|
| Information technology manager | State government | US | 2,600 | $22B |
| Senior manager of technology | Agriculture | US | 2,300 | $17B |
| Senior director of information services | Nonprofit | US | 215 | $61M |
| Vice president of information technology | Automotive services | US | 3,000 | $350M |
Key Challenges
The interviewees noted how their organizations struggled with common challenges, including:
- A need for dedicated IT resource to provide meeting support. Interviewees told Forrester that a big pain point they suffered prior to deploying Teams Rooms was needing to allocate IT resource support for meetings.
- Lost productivity due to not starting meetings on time. Interviewees said their organizations suffered significant productivity losses because of a lack of being able to start meetings on time due to technical startup issues related to their previous video and collaboration solutions.
- Lack of collaboration between in-person and remote employees. Interviewees explained to Forrester that their organizations’ employees were limited in being able to effectively communicate and collaborate when having meetings that included both in-person and remote attendees.
- The unique challenges of meeting rooms. Interviewees said their organizations suffered from having to deal with unique challenges in their various meeting rooms. For example, one room may have certain video setup such as a large monitor or a telecommunications device while other rooms may have audio communications solutions but limited or no monitors. Having to address these unique challenges caused a strain on interviewees and their organizations.
- Multiple licenses for prior solutions. Some interviewees discussed the need for multiple licenses of previously used technology in order to conduct a meeting. If meeting participants were not privy to the necessary licenses, they could not communicate with their peers.
- Poor document-sharing experiences. Interviewees said that before using Teams Rooms, their organizations used a hodgepodge approach to collaborating with one another. In order to share a document, they may have had to actually email such a document and then have limited capabilities in sharing that document in real time with their colleagues, managers, and customers.
Composite Organization
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 four interviewees, 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, which is based in the US, generates more than $1 billion in annual revenue. It has 2,800 employees operating in a hybrid work environment, working in offices, and working remotely. The composite organization has complex work environments and diverse use cases, such as using Teams Rooms for customer meetings, internal meetings, and especially for optimizing communication, collaboration, and engagement.
Deployment characteristics. The composite organization deploys Teams Rooms of different sizes. It deploys Teams Rooms to some of its board rooms and focus rooms, and it has Teams Rooms in large, medium, and small rooms.
Quantified benefit data as applied to the composite
Total Benefits
| Ref. | Benefit | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|
| Atr | Improved user workflow efficiencies during and after meetings | $29,601 | $44,402 | $59,202 | $133,205 | $108,085 |
| Btr | Increased employee productivity by reallocating saved commute time to work tasks | $273,319 | $273,319 | $273,319 | $819,958 | $679,704 |
| Ctr | Reduced time spent by IT admins on room issue resolution | $62,969 | $157,424 | $293,857 | $514,250 | $408,126 |
| Dtr | Increased meeting efficiency by minimizing technical issue disruptions during meetings | $108,918 | $163,375 | $217,834 | $490,127 | $397,699 |
| Etr | Improved IT efficiency driven by remote configuration and device analytics | $10,806 | $16,981 | $23,156 | $50,944 | $41,256 |
| Total benefits (risk-adjusted) | $485,613 | $655,501 | $867,369 | $2,008,483 | $1,634,870 | |
Improved User Workflow Efficiencies During And After Meetings
Evidence and data. Interviewees said Teams Rooms functionality prevented general issues that could interrupt business productivity during and after meetings, which enhanced the ability of workers to be productive and added value to their meetings.
- The senior manager of technology at an agriculture company told Forrester: “I would say that [Teams Rooms offer] that ability to engage and include people who aren’t physically in the same space. It’s much easier to hop on a call and have them not be second-class citizens. And then, the collaboration is [also] great. [It’s helpful] being able to share a document or co-author a document using Office 365.”
- The senior director of information services at a nonprofit organization told Forrester: “We [implemented Teams Rooms] because collaboration was crucial to us, and we implemented like we did because consistency and ease of use was critical for us. And we fortunately had leadership that recognized the value of the tech.”
- The vice president of information technology at an automotive services company told Forrester: “We just needed better collaboration tools, something that was more consistent, [and] something that we knew would work. When we would have a board meeting, we had to make sure that all of this stuff worked, and we needed something that was a solid solution where everyone was able to engage, feel like first-class citizens, be heard, and be seen.”
- The senior director of information services at a nonprofit organization said: “One of the things we really wanted to make sure that we had was a quality user experience where we could present content and be able to interact — [even] it was a room full of people, presenting can be difficult when everyone’s in the room. Because we are a highly collaborative organization, we wanted to create environments in which we could present stuff easier and clearer. And so that’s really why we implemented Teams Rooms.”
Modeling and assumptions. To calculate the value of this benefit for the composite organization, Forrester assumes the following:
- The composite organization’s total meeting room utilization is 47,840 hours in Year 1, 71,760 hours in Year 2, and 95,680 hours in Year 3.
- The composite organization’s total employee time saved due to Teams Rooms preventing general issues is 1,196 hours in Year 1, 1,794 hours in Year 2, and 2,392 hours in Year 3.
- The composite saves 5,382 hours of business user time over three years due to Teams Rooms preventing general issues related to workflow productivity. This leads to improved risk-adjusted user workflow efficiencies during and after meetings of $29,601 in Year 1, $44,402 in Year 2, and $59,202 in Year 3.
- The average number of large rooms is two in Year 1, three in Year 2, and four in Year 3.
- The average number of medium rooms is eight in Year 1, 12 in Year 2, and 16 in Year 3.
- The average number of small rooms is six in Year 1, nine in Year 2, and 12 in Year 3.
- The average number of employees per meeting in large, medium, and small rooms is 20, 10, and six, respectively.
- The average utilization per week in large, medium, and small rooms is 4, 5, and 10 hours, respectively.
- The percentage of total meetings hours disrupted by technology issues that affect business users’ workflow is 30%.
- The average time lost due to each issue is 5 minutes.
- The fully burdened hourly salary of a business user is $55.
- Forrester uses a productivity recapture percentage of 50%.
Risks. The value of this benefit can vary across organizations due to the variations in the following:
- The organization’s number of rooms, including how many large, medium, and small rooms have Teams Rooms deployed.
- The average utilization of rooms.
- The average fully loaded salaries of business users, which vary by industry and geography.
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 $108,000.
Improved User Workflow Efficiencies During And After Meetings
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|
| A1 | Average number of large rooms | Interviews | 2 | 3 | 4 |
| A2 | Average number of employees per meeting in large rooms | Composite | 20 | 20 | 20 |
| A3 | Average utilization per week in large rooms (hours) | Interviews | 4 | 4 | 4 |
| A4 | Subtotal: Weekly utilization of large rooms (hours) | A1*A2*A3 | 160 | 240 | 320 |
| A5 | Average number of medium rooms | Interviews | 8 | 12 | 16 |
| A6 | Average number of employees per meeting in medium rooms | Interviews | 10 | 10 | 10 |
| A7 | Average utilization per week in medium rooms (hours) | Interviews | 5 | 5 | 5 |
| A8 | Subtotal: Weekly utilization of medium rooms (hours) | Interviews | 400 | 600 | 800 |
| A9 | Average number of small rooms | Interviews | 6 | 9 | 12 |
| A10 | Average number of employees per meeting in small rooms | Interviews | 6 | 6 | 6 |
| A11 | Average utilization per week in small rooms (hours) | Interviews | 10 | 10 | 10 |
| A12 | Subtotal: Weekly utilization of small rooms (hours) | Interviews | 360 | 540 | 720 |
| A13 | Work weeks per year | TEI standard | 52 | 52 | 52 |
| A14 | Subtotal: Total meeting room utilization per year (hours) | (A4+A8+A12)* A13 |
47,840 | 71,760 | 95,680 |
| A15 | Percentage of total meeting time disrupted by technology issues that affect business users’ workflows (hours) | Interviews | 30% | 30% | 30% |
| A16 | Average time lost due to each issue (minutes) | Interviews | 5 | 5 | 5 |
| A17 | Subtotal: Total employee time saved with Teams Rooms preventing general issues (hours) | A14*A15*A16/60 | 1,196 | 1,794 | 2,392 |
| A18 | Productivity recapture (i.e., percentage of recaptured time used productively) | TEI standard | 50% | 50% | 50% |
| A19 | Average fully burdened hourly rate of a business user | TEI standard | $55 | $55 | $55 |
| At | Improved user workflow efficiencies during and after meetings | A17*A18*A19 | $32,890 | $49,335 | $65,780 |
| Risk adjustment | ↓10% | ||||
| Atr | Improved user workflow efficiencies during and after meetings (risk-adjusted) | $29,601 | $44,402 | $59,202 | |
| Three-year total: $133,205 | Three-year present value: $108,085 | ||||
Increased Employee Productivity By Reallocating Saved Commute Time To Work Tasks
Evidence and data. Interviewees told Forrester that Teams Rooms allowed their organizations to be more productive and reallocate saved commute time to work tasks.
- The vice president of information technology at an automotive services company said, “Before [using] Teams Rooms, employees felt like they had to attend meetings in person to be full participants [and] first-class citizens.”
- The senior manager of technology at an agriculture company said: “There’s been an impact overall organization-wide from travel. People still do travel, but I can’t imagine it’s as much as it was prior to us implementing Teams Rooms.”
- The information technology manager at a state government organization said: “Teams Rooms users can [use it] from home or they can do it from wherever. We do a lot of fieldwork, as well. And, so, those in the field can call in to a Teams Room on their phone or on their iPad or if they’re at home or if they’re in the office or if they’re in a conference room. So, they can really do it from anywhere. And the way we have it configured is all of our senior leadership, our directors, and deputies have a device, and then our midsize to large conference rooms each have a device or will have a device in them.”
Modeling and assumptions. To calculate the value of this benefit for the composite organization, Forrester assumes the following:
- The composite organization’s total number of employees is 2,800.
- The number of days per week actually worked at home is 1.5, from which Forrester used a multiplier of 0.29 (1.5 days/five days).2
- Before using Teams Rooms, the composite’s employees spent an average of four days in the office per week.
- The average one-way commute time is 30 minutes.
- Work weeks per year, excluding vacation and personal time off, is 48.
- The composite organization’s number of employees who work hybrid after the Teams Rooms implementation is 812.
- With Teams Rooms, the composite avoids 38,976 total hours of employee commute time per year.
- The composite organization reallocates 17,539 hours of business users’ commuting time to work tasks over three years.
- This leads to increased employee productivity that saves the composite $273,319 per year or $679,704 over three years.
- With Teams Rooms, the composite’s employees spend an average of three days in the office per week.
- The percentage of time saved that is available to spend on work tasks from avoided commute time is 30%.3
- The composite has a productivity recapture percentage of 50%.
- The fully burdened hourly salary of a business user is $55.
Risks. The value of this benefit can vary across organizations due to variations in the following:
- The organization’s number of hybrid workers.
- The average one-way and roundtrip commute times in different regions, such as urban, suburban, and rural areas.
- The average fully loaded salaries of business users, which vary by industry and geography.
Results. To account for these risks, Forrester adjusted this benefit downward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $609,000.
Increased Employee Productivity By Reallocating Saved Commute Time To Work Tasks
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|
| B1 | Total employees | Composite | 2,800 | 2,800 | 2,800 |
| B2 | Days per week actually worked at home | Stanford Institute for Economic Policy Research | 1.5 | 1.5 | 1.5 |
| B3 | Multiplier for employees working from home | Stanford Institute for Economic Policy Research | 0.29 | 0.29 | 0.29 |
| B4 | Subtotal: Employees working hybrid after Teams Rooms | B1*B3 | 812 | 812 | 812 |
| B5 | Average days per week in the office before Teams Rooms | Interviews | 4 | 4 | 4 |
| B6 | Average days per week in the office after Teams Rooms | Composite | 3 | 3 | 3 |
| B7 | Average one-way commute time (minutes) | Interviews | 30 | 30 | 30 |
| B8 | Work weeks per year (excluding vacation and personal time off) | TEI standard | 48 | 48 | 48 |
| B9 | Subtotal: Total employee commute time per year avoided after Teams Rooms (hours) | B4*(B5-B6)*B7*2 /60*B8 | 38,976 | 38,976 | 38,976 |
| B10 | Percentage of time saved that is available to spend on work tasks from commute time avoided | National Bureau of Economic Research | 30% | 30% | 30% |
| B11 | Productivity recapture (percentage of time available to spend on work tasks that is actually used productively on work tasks) | TEI standard | 50% | 50% | 50% |
| B12 | Average fully burdened hourly rate of business user | A18 | $55 | $55 | $55 |
| Bt | Increased employee productivity by reallocating saved commute time to work tasks | B9*B10*B12 | $321,552 | $321,552 | $321,552 |
| Risk adjustment | ↓15% | ||||
| Btr | Increased employee productivity by reallocating saved commute time to work tasks (risk-adjusted) | $273,319 | $273,319 | $273,319 | |
| Three-year total: $819,958 | Three-year present value: $679,704 | ||||
Reduced Time Spent By IT Admins On Room Issue Resolution
Evidence and data. Interviewees said their organizations benefit significantly from a reduction in time IT specialists spend on room issue resolution with Teams Rooms.
- The information technology manager at a state government organization told Forrester: “With Teams Rooms, the [measure of performance] was starting on time … which has improved significantly regarding who is in that meeting from vendors coming to meetings with our own employees. Teams has made it so our meetings are starting on time.”
- The vice president of information technology at an automotive services company said, “Having folks — even the external folks — being able to be productive right out of the gate as soon as you get in there was great.”
- The senior director of information services at a nonprofit organization told Forrester: “Five [minutes] was probably the average for delays of meetings due to technical issues. Sometimes it would get worse. It depends on the larger-scale meetings and some of our challenges we’re doing like board meetings or things like that. The last thing we want to do is have those snafus. I used to have a staff member on-site to be able to help with the connectivity and all of that. I do not do that anymore. I just make sure that I have a team member who runs through there and makes sure everything’s powering up and there’s nothing wonky going on. But, with advanced notice, now I don’t even have to do that.”
Modeling and assumptions. To calculate the value of this benefit for the composite organization, Forrester assumes the following:
- With Teams Rooms, the composite organization saves 2,153 hours in Year 1, 5,382 in Year 2, and 10,046 in Year 3.
- With Teams Rooms, the composite saves 8,791 hours on IT admin room issue resolution, and this time is used productively on other work tasks.
- This yields savings of $69,966 in Year 1, $174,915 in Year 2, and $326,508 in Year 3.
- The composite’s total meeting room utilization is 47,840 hours in Year 1, 71,760 hours in Year 2, and 95,680 hours in Year 3.
- The percentage of meeting time disrupted by technical startup issues prevented by Teams Rooms’ one-touch join functionality is 30%.
- The average time lost per technical startup issues is 30 minutes per issue.
- The percentage of time used productively is 50%.
- The fully burdened hourly salary of an IT help desk analyst is $65.
Risks. The value of this benefit can vary across organizations due to variations in the following:
- The organization’s existing efficiency in handling technical startup issues.
- The average fully loaded salaries of IT help desk analysts, which vary by industry and geography.
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 $408,000.
Reduced Time Spent By IT Admins On Room Issue Resolution
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|
| C1 | Total meeting room utilization per year (hours) | A14 | 47,840 | 71,760 | 95,680 |
| C2 | Percentage of meeting time disrupted by technical startup issues prevented by Teams Rooms’ one-touch join functionality | Interviews | 30% | 30% | 30% |
| C3 | Average time lost per technical startup issue (minutes) | Interviews | 30 | 30 | 30 |
| C4 | Percentage of instances that are handled remotely | Interviews | 30% | 50% | 70% |
| C5 | Subtotal: Total employee time saved because Teams Rooms’ OneTouch Join prevents technical startup issues (hours) | C1*C2*C3/60 | 2,153 | 5,382 | 10,046 |
| C6 | Percentage of saved time used productively | Interviews | 50% | 50% | 50% |
| C7 | Average fully burdened hourly rate of an IT help desk analyst FTE | TEI standard | $65 | $65 | $65 |
| Ct | Reduced time spent by IT admins on room issue resolution | C5*C6*C7 | $69,966 | $174,915 | $326,508 |
| Risk adjustment | ↓10% | ||||
| Ctr | Reduced time spent by IT admins on room issue resolution (risk-adjusted) | $62,969 | $157,424 | $293,857 | |
| Three-year total: $514,250 | Three-year present value: $408,126 | ||||
Increased Meeting Efficiency By Minimizing Technical Issue Disruptions During Meetings
Evidence and data. Interviewees told Forrester that using Teams Rooms drove increased meeting efficiency by containing technical disruptions during meetings.
- The senior manager of technology at an agriculture company told Forrester: “It feels to me much more like at least [for] the meetings I’m in that have remote people, they’re much more inclusive and engaged. I would say prior to that, if somebody was remote, there could be issues with getting them on the audio. Previously, content sharing was nonexistent, even just for someone who maybe was either a full-time remote person or someone in a different office. You can connect with video and kind of get that more personal connection, I guess. And I think, now, the world has changed.”
- The senior director of information services at a nonprofit organization said, “One of the things that we wanted to make sure that we’re doing is creating an experience and demystifying technology because that is always a barrier when going into meetings — and nothing starts a meeting off worse than having technology issues.”
Modeling and assumptions. To calculate the value of this benefit for the composite organization, Forrester assumes the following:
- Prior to using Teams Rooms, weekly IT support time per meeting room was 2 hours and 15 minutes (or 135 minutes) per issue.
- With Teams Rooms, weekly IT support time per meeting room is 0.13 hours (or 7.8 minutes) per issue.
- With Teams Rooms, the composite organization saves 1,764 hours in Year 1, 2,646 in Year 2, and 3,528 in Year 3.
- With Teams Rooms, the composite organization saves 7,937 hours of IT support time over three years by minimizing technical issue disruptions.
- This accounts for an increase in meeting efficiency that saves the composite $108,918 in Year 1, $163,375 in Year 2, and $217,834 in Year 3.
- There are 52 work weeks per year.
- The fully burdened hourly salary of an IT support technician is $65.
Risks. The value of this benefit can vary across organizations due to variations in the following:
- The organization’s existing dedicated IT support for meetings.
- The effectiveness of the organization’s IT support technicians in handling issues for meeting rooms.
- The average fully loaded salaries of IT support technicians, which vary by industry and geography.
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 $398,000.
Increased Meeting Efficiency By Minimizing Technical Issue Disruptions During Meetings
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|
| D1 | IT support time per meeting room per week before Teams Rooms (hours) | Interviews | 2.25 | 2.25 | 2.25 |
| D2 | IT support time per meeting room per week with Teams Rooms (hours) | Interviews | 0.13 | 0.13 | 0.13 |
| D3 | Subtotal: Number of meeting rooms with Teams Rooms devices | A1+A5+A9 | 16 | 24 | 32 |
| D4 | Work weeks per year | TEI standard | 52 | 52 | 52 |
| D5 | Subtotal: Total IT support time saved per year with Teams Rooms (hours) | (D1-D2)*D3*D4 | 1,764 | 2,646 | 3,528 |
| D6 | Average hourly rate of an IT support technician | TEI standard | $65 | $65 | $65 |
| Dt | Increased meeting efficiency by minimizing technical issue disruptions during meetings | D5*D6 | $114,650 | $171,974 | $229,299 |
| Risk adjustment | ↓5% | ||||
| Dtr | Increased meeting efficiency by minimizing technical issue disruptions during meetings (risk-adjusted) | $108,918 | $163,375 | $217,834 | |
| Three-year total: $490,127 | Three-year present value: $397,699 | ||||
Improved IT Efficiency Driven By Remote Configuration And Device Analytics
Evidence and data. Interviewees told Forrester their organizations benefit significantly from Teams Rooms’ remote configuration and device analytics capabilities.
The senior director of information services at a nonprofit organization told Forrester, “Microsoft has really invested in having the components to be able to remotely and effectively manage the rooms themselves, [and] to get better advanced warnings, notifications, and all that. … That has made a world of difference from my seat because I now know before the users know. So, the user experience has absolutely just taken off with being able to have those tools available to me, and it has significantly reduced the amount of time that I have to manage the meetings.”
Modeling and assumptions. To calculate the value of this benefit for the composite organization, Forrester assumes the following:
- The composite organization experienced a reduced cost as a result of Teams’ remote configuration of $9,750, $16,250, and $22,750 in years 1, 2, and 3, respectively.
- The reduced cost as a result of device analytics automation functionality was $1,625 annually.
- Improved IT efficiency driven by remove configuration and device analytics was $10,806, $16,981, and $23,156 in years 1, 2, and 3, respectively.
- The number of issues the composite organization required FTEs to resolve issues in-person at the respective room was 1,000.
- The reduction of previously manually resolved issues that are resolved through Remote Management is 30%.
- The average amount of time to resolve an in-person issue is 30 minutes.
- The fully burdened hourly salary of an IT support technician is $65.
- The number of issues that need manual resolution prior to Teams Rooms is 500.
Risks. The value of this benefit can vary across organizations due to variations in the following:
- Variations in the number of issues the composite organization required FTEs to resolve issues in-person at respective rooms.
- Differences in the average amount of time organizations spend on average resolving each issue.
- Differences in the number of issues that need manual resolution in organizations prior to Teams Rooms.
- Average fully loaded salaries of IT support technicians would vary by industry and geography.
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 $41,000.
Improved IT Efficiency Driven By Remote Configuration And Device Analytics
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|
| E1 | Issues that require FTEs to resolve them in person | Composite | 1,000 | 1,000 | 1,000 |
| E2 | Reduction of issues that were previously resolved manually that are resolved through remote management | Composite | 30% | 50% | 70% |
| E3 | Subtotal: Number of issues automated through remote management | E1*E2 | 300 | 500 | 700 |
| E4 | Average amount of time to resolve an in-person issue (hours) | Interviews | 0.5 | 0.5 | 0.5 |
| E5 | Average fully burdened hourly salary of an IT support FTE | TEI standard | $65 | $65 | $65 |
| E6 | Subtotal: Reduced cost as a result of use of remote management | E3*E4*E5 | $9,750 | $16,250 | $22,750 |
| E7 | Issues that needed manual resolution prior to using Teams Rooms | Interviews | 500 | 500 | 500 |
| E8 | Percent reduction of issues that were previously resolved manually that are automated with Teams Rooms | Composite | 10% | 10% | 10% |
| E9 | Subtotal: Issues automated through portal recognition and automation capabilities | E7*E8 | 50 | 50 | 50 |
| E10 | Average time to resolve an in-person issue (hours) | Interviews | 0.5 | 0.5 | 0.5 |
| E11 | Average fully burdened hourly salary of an IT support FTE | TEI standard | $65 | $65 | $65 |
| E12 | Subtotal: Reduced cost as a result of automation of issue resolution | E9*E10*E11 | $1,625 | $1,625 | $1,625 |
| Et | Improved IT efficiency driven by remote configuration and device analytics | E6+E12 | $11,375 | $17,875 | $24,375 |
| Risk adjustment | ↓5% | ||||
| Etr | Improved IT efficiency driven by remote configuration and device analytics (risk-adjusted) | $10,806 | $16,981 | $23,156 | |
| Three-year total: $50,944 | Three-year present value: $41,256 | ||||
Unquantified Benefits
Interviewees mentioned the following additional benefits that their organizations experienced but were not able to quantify:
- Standardization around one tool or solution. Interviewees told Forrester their organizations were able to go from using numerous tools or solutions (e.g., competing videoconference and web conferencing solutions, email attachments, sharing via online texting apps) to using one solution with Teams Rooms.
- Increased ability to communicate and collaborate effectively in hybrid work environments. Interviewees noted that other solutions did not allow their organizations to communicate and collaborate as effectively as Teams Rooms do. They said that with other solutions, remote participants found it difficult to understand and view who was talking in a conference room in the office. Similarly, remote participants felt like second-class citizens from not being in-person participants.
- Optimized ability for non-IT users to start meetings on time through easier-to-use solutions. Interviewees unanimously lamented the delays in starting meetings and said most last at least 5 to 10 minutes per meeting. They explained that using Teams Rooms allows for immediate access of meetings through one-touch functionality.
- Increased ability to operate meetings from any location, in the field or home, and on any device. Interviewees said using Teams Rooms allows their organizations’ employees to access meetings from anywhere — whether they are in the office or in the field — and from any device — whether it’s a laptop, desktop, or mobile device.
- High adoption of meeting rooms with Teams Rooms. Interviewees told Forrester that the adoption of Teams Rooms at their organizations is extremely high. The senior director of information services at a nonprofit organization said, “We have 90% to 95% adoption of Teams Rooms.”
- Streamlined ability to include participants using other solutions. Interviewees said that while most solutions are focused on their own ecosystems, Teams Rooms allow organizations to run meetings that offer other solutions (e.g., Zoom) to be answered through its touch pad.
Quantified cost data as applied to the composite
Total Costs
| Ref. | Cost | Initial | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|---|
| Ftr | Teams Rooms devices | $74,384 | $37,192 | $37,192 | $0 | $148,768 | $138,932 |
| Gtr | Installation of devices and other hardware | $86,763 | $43,381 | $43,381 | $0 | $173,525 | $162,052 |
| Htr | IT setup, configuration time, and support for rooms and devices | $21,840 | $10,920 | $10,920 | $0 | $43,680 | $40,792 |
| Itr | Annual Teams Rooms license cost | $0 | $7,680 | $11,520 | $15,360 | $34,560 | $28,043 |
| Total costs (risk-adjusted) | $182,987 | $99,173 | $103,013 | $15,360 | $400,533 | $369,819 | |
Teams Rooms Devices
Modeling and assumptions. The composite organization pays Microsoft a risk-adjusted total of $138,932 over three years for devices.
Risks. The value of this cost can vary across organizations due to variations in the following:
- The number of large, medium, and small rooms the organization adds each year.
- Changes in kit device costs, which depends on negotiation between Microsoft and its suppliers and partners.
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 $139,000.
Teams Rooms Devices
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|---|
| F1 | Large rooms | Interviews | 2 | 1 | 1 | 0 | |
| F2 | Estimated cost of Teams Rooms devices for one large room | Composite | $5,170 | $5,170 | $5,170 | ||
| F3 | Medium rooms | Interviews | 8 | 4 | 4 | 0 | |
| F4 | Estimated cost of Teams Rooms devices for one medium room | Composite | $4,616 | $4,616 | $4,616 | ||
| F5 | Small rooms | Interviews | 6 | 3 | 3 | 0 | |
| F6 | Estimated cost of Teams Rooms devices for one small room | Composite | $3,930 | $3,930 | $3,930 | ||
| Ft | Teams Rooms devices | F1*F2+F3*F4+F5* F6 | $70,842 | $35,421 | $35,421 | $0 | |
| Risk adjustment | ↑5% | ||||||
| Ftr | Teams Rooms devices (risk-adjusted) | $74,384 | $37,192 | $37,192 | $0 | ||
| Three-year total: $148,768 | Three-year present value: $138,932 | ||||||
Installation Of Devices And Other Hardware
Modeling and assumptions. The composite organization pays Microsoft a risk-adjusted total of $162,052 over three years for the installation of devices and other hardware according to varying rates by room size.
Risks. The value of this cost can vary across organizations due to variations in the following:
- The average fully burdened annual salaries and hourly rates of the FTEs who install Microsoft Teams Rooms devices at the organization.
- The availability of skilled FTEs required to install Microsoft Teams Rooms devices.
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 $162,000.
Installation Of Devices And Other Hardware
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|---|
| G1 | Estimated installation costs for one large room | Composite | $7,438 | $7,438 | $7,438 | $0 | |
| G2 | Estimated installation costs for one medium room | Composite | $6,009 | $6,009 | $6,009 | $0 | |
| G3 | Estimated installation costs for one small room | Composite | $3,280 | $3,280 | $3,280 | $0 | |
| Gt | Installation of devices and other hardware | F1*G1+F3*G2+F5* G3 | $82,631 | $41,316 | $41,316 | $0 | |
| Risk adjustment | ↑5% | ||||||
| Gtr | Installation of devices and other hardware (risk-adjusted) | $86,763 | $43,381 | $43,381 | $0 | ||
| Three-year total: $173,525 | Three-year present value: $162,052 | ||||||
IT Setup, Configuration Time, And Support For Rooms And Devices
Modeling and assumptions. The composite organization pays Microsoft a risk-adjusted total of $40,792 over three years for IT setup, configuration time, and support for rooms and devices.
Risks. The value of this cost can vary across organizations due to variations in the following:
- The average fully burdened annual salaries and hourly rates of the FTEs who set up, configure, and support Microsoft Teams Rooms at the organization.
- The availability of skilled FTEs required to set up, configure, and support Microsoft Teams Rooms.
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 $41,000.
IT Setup, Configuration Time, And Support For Rooms And Devices
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|---|
| H1 | Total new rooms | F1+F3+F5 | 16 | 8 | 8 | 0 | |
| H2 | IT setup and configuration time per room (hours) | Interviews | 20 | 20 | 20 | 0 | |
| H3 | Average fully burdened hourly salary of an IT support technician | TEI standard | $65 | $65 | $65 | $0 | |
| Ht | IT setup, configuration time, and support for rooms and devices | H1*H2*H3 | $20,800 | $10,400 | $10,400 | $0 | |
| Risk adjustment | ↑5% | ||||||
| Htr | IT setup, configuration time, and support for rooms and devices (risk-adjusted) | $21,840 | $10,920 | $10,920 | $0 | ||
| Three-year total: $43,680 | Three-year present value: $40,792 | ||||||
Annual Teams Rooms License Cost
Modeling and assumptions. The composite organization pays Microsoft a risk-adjusted total of $28,043 over three years for its Teams Rooms license cost.
Risks. The value of this cost can vary across organizations due to variations in the following:
- Whether or not the organization receives preferred pricing.
- Changes in pricing as the organization grows and requires additional rooms deployed with Teams Rooms.
Results. To account for these risks, Forrester adjusted this cost upward by 0%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $28,000.
Annual Teams Rooms License Cost
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|---|
| I1 | Monthly license cost per room | Composite | $0 | $40 | $40 | $40 | |
| I2 | Annual license cost per room | I1*12 | $0 | $480 | $480 | $480 | |
| I3 | Number of Teams Rooms | D3 | $0 | 16 | 24 | 32 | |
| It | Annual Teams Rooms license cost | G2*G3 | $0 | $7,680 | $11,520 | $15,360 | |
| Risk adjustment | 0% | ||||||
| Itr | Annual Teams Rooms license cost (risk-adjusted) | $0 | $7,680 | $11,520 | $15,360 | ||
| Three-year total: $34,560 | Three-year present value: $28,043 | ||||||
Consolidated Three-Year Risk-Adjusted Metrics
Cash Flow Chart (Risk-Adjusted)
Total costs Total benefits Cumulative net benefits-
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.
Cash Flow Analysis (Risk-Adjusted Estimates)
| Initial | Year 1 | Year 2 | Year 3 | Total | Present Value | |
|---|---|---|---|---|---|---|
| Total costs | ($182,987) | ($99,173) | ($103,013) | ($15,360) | ($400,533) | ($369,819) |
| Total benefits | $0 | $485,613 | $655,501 | $867,369 | $2,008,483 | $1,634,870 |
| Net benefits | ($182,987) | $386,440 | $552,487 | $852,009 | $1,607,950 | $1,265,051 |
| ROI | 342% | |||||
| Payback | <6 months | |||||
Appendix A: Total Economic Impact
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.
Total Economic Impact Approach
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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.
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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.
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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.
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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.
Appendix B: Supplemental Material
Related Forrester Research
The Future Of The Office, Forrester Research, Inc., September 7, 2022.
Master Hybrid Meetings With These Five Steps, Forrester Research, Inc., March 6, 2023.
The Forrester Wave™: Unified Communications As A Service (UCaaS), Q3 2023, Forrester Research, Inc., September 19, 2023.
The Future Of Work Requires A Better Collaboration Model, Forrester Research, Inc., July 17, 2023.
APPENDIX C: ENDNOTES
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 Source: Jose Maria Barrero, Nicholas Bloom, Steven J. Davis, The Evolution of Working from Home, Stanford Institute for Economic Policy Research, July 2023.
3 Source: Nicholas Bloom, Ruobing Han, James Liang, How Hybrid Working From Home Works Out, National Bureau of Economic Research, January 2023.
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