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.

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Return on investment (ROI)

342%

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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%.

“It feels to me … [that remote workers feel] much more [included] and engaged [with Teams Rooms]. I would say prior to that, if somebody was remote, there could be issues with getting them on the audio. 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 get that more personal connection.”

Senior manager of technology, agriculture

Key Statistics

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    Return on investment (ROI)

    342%
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    Benefits PV

    $1.63M
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    Net present value (NPV)

    $1.27M
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    Payback

    <6 months
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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 analytics

TEI Framework And Methodology

From the information provided in the interviews, Forrester constructed a Total Economic Impact™ framework for those organizations considering an investment in 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.

  1. Due Diligence

    Interviewed Microsoft stakeholders and Forrester analysts to gather data relative to Teams Rooms.

  2. Interviews

    Interviewed four representatives at organizations using Teams Rooms to obtain data about costs, benefits, and risks.

  3. Composite Organization

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

  4. Financial Model Framework

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

  5. Case Study

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

Disclosures

Readers should be aware of the following:

This study is commissioned by 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

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