Executive Summary

Complex IT environments require development teams to simultaneously navigate current infrastructure challenges and plan for future enhancements. This demands significant technical skill and resources that are increasingly constrained by evolving business demands. As such, customers turn to Red Hat Technical Account Managers to help maximize their IT investments.

A Red Hat Technical Account Manager (TAM) provides a single point of contact to help organizations plan and deploy Red Hat software more successfully. Technical Account Managers specialize in a particular Red Hat software product and work side by side with customer teams to proactively guide their technology strategy, enhance security, and mobilize other Red Hat resources on their behalf.

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

386%

Return on investment (ROI)

 

$4.5M

Net present value (NPV)

 

To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed four decision-makers with experience using the TAM service. For the purposes of this study, Forrester aggregated the experiences of the interviewees and combined the results into a single composite organization, which is a global $5 billion organization that deploys RHEL, OpenShift, and Ansible in its technology environment.

Interviewees said that prior to using TAMs, their organizations spent a significant amount of time researching best practices on their own and relying on ad hoc support to develop products and resolve issues related to their Red Hat technology. These approaches proved ineffective and created concern around the potential negative impact that system downtime or a security breach would have on their environment.

After the investment in TAMs, the interviewees said their organizations gained consistent product-level expertise that upskilled their teams, increased overall productivity, and removed development roadblocks. Interviewees explained that Red Hat software supported business-critical, revenue-generating use cases for their organizations, so using TAMs enabled their organizations to enhance the time to market for projects that supported key business objectives and to reduce the impact of both system outages and security breach costs.

Key Findings

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

  • Increased IT/developer productivity, amounting to $745,000 in labor savings. With the TAM, the composite organization’s developers and technical engineers save time on both ongoing project development and planning work as well as resolving issues. The TAM’s product knowledge and direct relationships with Red Hat engineers reduce the time spent waiting for support and attempting to resolve issues internally. Over three years, this is worth $745,000 in labor savings to the composite.

  • Reduced system outage costs by $1.8 million. The TAM serves as a critical resource during system outages related to Red Hat products: They reduce the impact of major unplanned outages and help the composite avoid additional minor incidents throughout the year. Proactive discussions, such as those around product migration timelines, prove critical for ensuring stability within the composite’s overall environment. Over three years, this is worth $1.8 million in cost savings to the composite.

  • Enhanced time to market, accelerating profit realization by $3.0 million. As the composite’s developers gain productivity in their day-to-day project work, they are able to release projects to market faster. A portion of these projects impact customer-facing applications, accelerating the rate at which the composite captures revenue. Over three years, this is worth $3.0 million in accelerated profit to the composite.

  • Strengthened security, reducing the risk of incurring breach costs by $196,000. The TAM regularly talks to the composite about product security measures, such as patching and certificate lifecycles; they also advise on existing vulnerabilities. They play an important role in reducing the risk of incurring breach costs related to both internal and external threats. Over three years, this is worth $196,000 in reduced risk exposure.

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

  • Upskilling developers, system administrators, and infrastructure and platform teams. The TAM provides hands-on workshops to guide and advise team members on their unique architectural environments. These interactive sessions allow a wide range of roles to learn and test new skills critical to their career development.

  • Gaining advanced insight into Red Hat’s product roadmap. Regular meetings with the TAM allow the composite’s developers to learn of upcoming product features and gain an early understanding of how the functionality may influence ongoing project work and add additional benefit to the organization.

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

  • Red Hat fees. The composite pays Red Hat for the services of three TAMs, one for each of the products for which it has a subscription. Over three years, this costs the composite $1.0 million in fees.

  • Ongoing management. Five team members meet with each of the TAMs weekly to discuss ongoing project work and future product strategy. Over three years, this costs the composite $128,000 in labor.

The financial analysis that is based on the interviews found that a composite organization experiences benefits of $5.7 million over three years versus costs of $1.1 million, adding up to a net present value (NPV) of $4.5 million and an ROI of 386%.

“There’s no way we would be at the same level of proficiency with the product [without the TAM].”

Software solution architect, IT

Key Statistics

386%

Return on investment (ROI) 

$5.7M

Benefits PV 

$4.5M

Net present value (NPV) 

<6 MONTHS

Payback 

Benefits (Three-Year)

[CHART DIV CONTAINER]
Improved developer/IT productivity Reduced system outage costs Enhanced time to market Strengthened security

The Red Hat Technical Account Manager Customer Journey

Drivers leading to the TAM investment

Role

Role Industry Region Revenue and
employees
Software solution architect IT North America $34 billion
67,000
Solution architect IT services Latin America Undisclosed
1,000
Platform engineering manager Financial services EMEA $35 billion
80,000
Senior systems administrator Financial services EMEA $3.6 billion
4,000

Key Challenges

Interviewees explained that Red Hat infrastructure (RHEL, OpenShift, Ansible) was heavily integrated into their technology ecosystems, supporting critical applications for both internal and customer-facing use cases. Prior to using the TAM service, these organizations lacked consistent, in-depth expertise to support product stability and security as well as to guide their teams around product development and strategic decision-making. Some of the organizations invested in the TAM service alongside their initial Red Hat technology investment, while others added it on later. Interviewees noted how their organizations struggled with common challenges, including:

  • The risk of incident impact, given complex, large-scale deployments. Given the high level of dependence on Red Hat technology, interviewees emphasized the need for their organizations to minimize incidents due to the potential wide-reaching impact across multiple systems. This was especially critical given the risk to customers and therefore revenue. The platform engineering manager at a financial services organization said: “All the main systems, applications, and microservices for the business run in OpenShift. We have more than 150 clusters. It’s very important.”
    They also noted that, “OpenShift runs our core internal banking application and one of the payment systems for our customers.”

  • Inconsistent, ad hoc technology support. Interviewees explained that ad hoc, consulting-based support did not provide the level of reliability required by their organizations. The senior systems administrator at a financial services organization said: “For OpenShift we started with professional services and after the first phase of the project, the TAM was added. It was introduced in order to have a more constant presence on the environment.”
    They also noted that: “We require quick services. We cannot wait for a long time. … [Standard] Red Hat support requires many case logs.”

  • A lack of Red Hat technology expertise. Some organizations were newer to integrating Red Hat technology into their environments, and as such, in-house developers and engineers were still gaining familiarity with the products. The senior systems administrator at a financial services organization said: “We encountered some type of issues for the first time, which was unique in our environment because we’ve only used the technology for two years. This requires [reliance] on Red Hat knowledge.”

“In large scale environments, the TAM is very important. Critical environments need a fast resolution, and the TAM is the way to achieve this goal.”

Platform engineering manager, financial services

Investment Objectives

The interviewees searched for a solution that could:

  • Understand and become familiar with complex, evolving technology environments.

  • Provide prompt, direct access to Red Hat engineering experts.

  • Act as both a reactive and proactive resource.

  • Advise on critical business objectives, such as product migrations.

  • Optimize the overall environment for stability, security, and compliance.

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 interviewees’ organizations, and it is used to present the aggregate financial analysis in the next section. The composite organization has the following characteristics:

  • Description of composite. The composite organization is a $5 billion global company. The company operates in multiple countries in North America, Europe, and the Middle East and employs 20,000 people.

  • Deployment characteristics. The composite invests in three TAMs, one for each of its Red Hat technology deployments: RHEL, OpenShift, and Ansible. The TAMs work directly with 20 in-house Red Hat developers at the composite.

 KEY ASSUMPTIONS

  • Global operations

  • $5 billion revenues

  • 20,000 employees

  • 20 in-house Red Hat developers

“We have OKRs related to resilience, automations, secured actions, and crisis and incidents. The TAM is responsible for managing the tasks and alignment [across these OKRs].”

Platform engineering manager, financial services

Analysis Of Benefits

Quantified benefit data as applied to the composite

Total Benefits

Ref. Benefit Year 1 Year 2 Year 3 Total Present Value
Atr Improved developer/IT productivity $268,853 $301,613 $334,373 $904,838 $744,897
Btr Reduced system outage costs $675,000 $720,000 $765,000 $2,160,000 $1,783,434
Ctr Enhanced time to market $810,000 $1,215,000 $1,620,000 $3,645,000 $2,957,626
Dtr Strengthened security $78,961 $78,961 $78,961 $236,882 $196,364
  Total benefits (risk-adjusted) $1,832,813 $2,315,573 $2,798,333 $6,946,720 $5,682,321

Improved Developer/IT Productivity

Evidence and data. Interviewees explained that their TAM supported both ongoing project work and future product planning as well as addressing customer cases and IT tickets. The time saved varied depending on the level of maturity for each Red Hat software product within their organization. Some products, such as RHEL, were more stable; others, such as Ansible, were less mature and required more attention for improvements and modifications.

  • The solution architect at an IT services organization estimated time savings of 80% for the team working on OpenShift and 50% for the team working on Ansible and RHEL. They said:

    • On project work: “Most importantly, it has allowed a much faster time to implement new things, reducing the workload on the team. When it comes to complex topics, the internal notes added by the TAM are helpful for us to avoid repeating useless stuff or clarifying anything we wrote poorly. If there is any question over a knowledge base or an article, the direct interaction allows us to reach who wrote the specific knowledge base and understand if there was anything that is not clear to us.”
    • On issue resolution: “The difference is in how the ticket is handled — how much faster and more easily the tickets are solved without back and forth. The TAM is able to collect resources in a much faster and more coordinated way. Plus, there is also the analysis of the logs directly from the TAM that helps us to speed up the interaction between the ticket system and all of the story behind the ticket.”

  • The software solutions architect at an IT organization said:

    • On project work: “A few months ago, we had a customer issue in Qatar with a log file anonymization. The TAM helped us come to a resolution. And just yesterday, we had an issue with another customer in Italy who needed certain routing. Again, the TAM was very, very involved. Without the TAM, I don’t think we would have come up with a mutually acceptable solution between our organization, Red Hat, and the customer.”
    • On issue resolution: “The TAM knows the insights of their company and helps to drive issue resolution. Weekly, we track the overall picture of every issue. We would not get this bird’s-eye view if it was just me and my colleagues.”

  • The platform engineering manager at a financial services organization said:

    • On compliance audit support: “Red Hat supports us in our compliance policies, saving our developer’s time. We have NIST compliance, and all clusters have a baseline applied.”
    • On issue resolution: “In 2024, we had 192 cases opened for the TAM, 90 of which were urgent cases and immediately addressed. In 2025, we had 204 cases opened, and so far this year, 37. This means that the TAM is addressing the problems inside Red Hat, which saves my time — [which is] so important for us.”

“The TAM is the connection to the internal resources within Red Hat. This eases our effort and allows us to focus on other tasks.”

Solution architect, IT services

Modeling and assumptions. To model the value of this benefit, Forrester assumes the following:

  • Twenty developers at the composite receive regular, direct TAM guidance. Note: TAMs interact with many roles across customer teams, including systems administrators, storage admins, network admins, security specialists, and data scientists. These roles may vary from organization to organization. We capture “developers” in this model for simplicity.

  • The developers spend 80% of their time on applications and related projects; 70% of these projects are on Red Hat software. With the TAM, developers save 30% of their time on those projects in Year 1, 35% in Year 2, and 40% in Year 3.

  • The average fully burdened salary for a developer is $130,000.

  • Prior to the TAM, the composite spends 3,400 hours per year addressing IT tickets across RHEL, Ansible, and OpenShift. This is reduced by 75% with the TAM.

  • The average fully burdened hourly rate for a technical engineer is $63.

  • Fifty percent of the time saved is recaptured as productive work.

Risks. The risk that another organization will experience a different magnitude of value from this benefit depends on:

  • The amount of time wasted by both developers and technical engineers due to their misunderstanding or suboptimal use of Red Hat technology.

  • The salaries of the developers and technical engineers.

  • The magnitude of improvement the TAM brings and its rate of increase over time.

  • The degree to which time saved is recaptured by the organization as productive work.

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 $745,000.

40%

Developer’s time saved with TAM guidance in Year 3

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Job title, industry

Improved Developer/IT Productivity

Ref. Metric Source Year 1 Year 2 Year 3
A1 Developers receiving TAM guidance Composite 20 20 20
A2 Time spent directly on applications and related projects Composite 80% 80% 80%
A3 Fully burdened salary for a developer Composite $130,000 $130,000 $130,000
A4 Portion of projects affected by the TAM Composite 70% 70% 70%
A5 Time saved with TAM guidance Interviews 30% 35% 40%
A6 Subtotal: Developer time savings A1*A2*A3*A4*A5 $436,800 $509,600 $582,400
A7 Average annual IT hours to resolve issues before the TAM Composite 3,400 3,400 3,400
A8 Time saved with TAM guidance Interviews 75% 75% 75%
A9 Average annual IT hours to resolve issues with the TAM A7*(1-A8) 850 850 850
A10 Fully burdened hourly rate for a technical engineer A3/2080 $63 $63 $63
A11 Subtotal: IT time savings A7*A8*A10 $160,650 $160,650 $160,650
A12 Productivity recapture TEI methodology 50% 50% 50%
At Improved developer/IT productivity (A6+A11)*A12 $298,725 $335,125 $371,525
  Risk adjustment 10%      
Atr Improved developer/IT productivity (risk-adjusted)   $268,853 $301,613 $334,373
Three-year total: $904,838 Three-year present value: $744,897

Reduced System Outage Costs

Evidence and data. Interviewees explained that system outages related to Red Hat technology were quite costly for their organizations, given the critical nature of RHEL, Ansible, and OpenShift in their environments. The TAM served as a key resource in resolving unplanned outages that resulted in downtime, reducing the time and overall impact of these incidents. The TAM also supported these organizations in avoiding additional minor outages through proactive discussions around critical product migrations and file backups.

  • The software solution architect at an IT organization shared the impact of both outage resolution and outage avoidance with the TAM:

    • Unplanned outage: “We had an incident where a single node went down. It was right before Christmas. The TAM was there to support, and it was resolved very fast — within half a day.”
    • Avoided outages: “If our customer has a down system and we don’t respond or cannot resolve it within a certain time, we pay penalties. It’s worth a little insurance of having the TAM.”

  • The platform engineering manager at a financial services organization said: “When we have a crisis, the TAM immediately opens a case and addresses the situation inside Red Hat for us. The TAM also helps make recommendations and analyzes logs [proactively].”

  • The senior systems administrator at a financial services organization explained that 20 to 30 cases are addressed per month, of which five are critical. They said: “For us, a critical case means something happened with underlying storage and services may be impacted. In this case, we take proactive action with health checks and sharing logs.” They also mentioned:

    • Unplanned outages: “There was an incident of downtime where our bank production cluster was down for 3 or 4 hours. If we had the TAM involved, I don’t think we would have had the issue. Our team does not have time to go through 100 pages of PDFs to follow best practices.”
    • Avoided outages: “Last year, we faced one issue when our QA repository database was corrupted. Our repository was totally inaccessible and useless. In that case, the Red Hat TAM helped us write a script to get the images backed up. This was an exceptional help because it could have disrupted the business with lost data.”
    • Critical product migrations: “Last year, there was a major upgrade between the 4.14 to 4.16 [versions]. At that time, the underlying log structure was going to totally change. The timeline was key. We needed to upgrade all of the clusters before October 31 because the supported version had an end of life. This was very crucial and critical. In this case, the TAM helped us by explaining the required key information.”

  • The solution architect at an IT services organization said: “We were able to remove at source or drastically reduce the impact that issues have. One example is from Ansible. There was a change of contractor, and the TAM helped a lot in understanding which problem was happening within Red Hat. With the TAM, it took days. If we had to rely on the ticket going back and forth for every single team, we would probably still be speaking about this incident.”

“Even more important than being reactive, they are proactive. Therefore, we are able to avoid problems. A single incident may cost hundreds of thousands of euros.”

Solution architect, IT services

“If our end customer opens a [Red Hat-related] issue, we must respond within 15 minutes and provide relief within 45 minutes to an hour. No way we can do that without Red Hat help.”

Software solution architect, IT

Modeling and assumptions. To model the value of this benefit, Forrester assumes the following:

  • The composite experiences one major outage every year. A major outage costs $500,000. With the TAM, the outage time is reduced by 50% in Year 1, 60% in Year 2, and 70% in Year 3.2

  • The composite also avoids five minor outages every year with the TAM’s proactive guidance. A minor outage costs the composite $100,000.3

Risks. The risk that another organization will experience a different magnitude of value from this benefit depends on:

  • The number and severity of system outages they experience.

  • The portion of those outages that can be eliminated or mitigated by improved use of Red Hat products.

  • The rate at which the TAM’s assistance improves system stability.

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 $1.8 million.

Five

Minor outages avoided per year with the TAM

Reduced System Outage Costs

Ref. Metric Source Year 1 Year 2 Year 3
B1 Major unplanned outage Composite 1 1 1
B2 Average cost per major outage Forrester research $500,000 $500,000 $500,000
B3 Outage time saved with TAM Interviews 50% 60% 70%
B4 Additional minor outages avoided with TAM Interviews 5 5 5
B5 Average cost per minor outage Forrester research $100,000 $100,000 $100,000
Bt Reduced system outage costs (B1*B2*B3)+(B4*B5) $750,000 $800,000 $850,000
  Risk adjustment 10%      
Btr Reduced system outage costs (risk-adjusted)   $675,000 $720,000 $765,000
Three-year total: $2,160,000 Three-year present value: $1,783,434

Enhanced Time To Market

Evidence and data. Interviewees explained that some of their Red Hat projects in development affect revenue-generating applications across their organizations. With the TAM’s guidance, their organization’s developers could accelerate project development and release them to market faster.

  • The platform engineering manager at a financial services organization said: “We had an internal portal to deliver automations for our business projects. My team is responsible for developing a catalog for new OpenShift clusters. While my team is developing new features and fixing new bug codes, Red Hat is supporting other issues for us. If we didn’t have the Red Hat team, we would need to contract more developers.”

  • The solution architect at an IT services organization shared: “As an example, we need to build new clusters and we need to define how to make the configuration. With the TAM, we are definitely going to shorten the time needed when it comes to the specific points that are not clear from the knowledge base. I would say 30% to 40% of the time is saved. Depending on the project size, it will vary. But for a project lasting three months, around two weeks [are accelerated].”

  • The software solution architect at an IT organization said: “The TAM helps with requests for enhancement. There was a case where our customer needed an enhancement and the TAM helped to push it faster by providing justification.”

“If you have any revenue-related services running on OpenShift, the TAM services will definitely help to maintain the uptime, make the environment more stable, and support compliance and security resilience.”

Senior systems administrator, financial services

Modeling and assumptions. To model the value of this benefit, Forrester assumes the following:

  • The composite develops 50 Red Hat projects each year; 40% of the projects drive revenue.

  • Before the TAM, each project takes, on average, 12 weeks to get to market. With the TAM, the time to market is accelerated by two weeks in Year 1, three in Year 2, and four in Year 3.

  • The average weekly revenue generated per project is $150,000.

  • The operating margin is 15%.

Risks. The risk that another organization will experience a different magnitude of value from this benefit depends on:

  • The number of Red Hat projects in development and the extent to which they drive revenue.

  • Average development cycles.

  • The revenue impact per project and operating margins.

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 $3.0 million.

Four weeks

Red Hat development projects accelerated by Year 3

Enhanced Time To Market

Ref. Metric Source Year 1 Year 2 Year 3
C1 Red Hat projects in development Composite 50 50 50
C2 Average time to market before TAM (weeks) Interviews 12 12 12
C3 Average time to market after TAM (weeks) Interviews 10 9 8
C4 Weeks accelerated C2-C3C 2 3 4
C5 Percentage of Red Hat projects in development that drive revenue Composite 40% 40% 40%
C6 Weekly revenue generated per project Composite $150,000 $150,000 $150,000
C7 Operating profit Composite 15% 15% 15%
Ct Enhanced time to market C1*C4*C5*C6*C7 $900,000 $1,350,000 $1,800,000
  Risk adjustment 10%      
Ctr Enhanced time to market (risk-adjusted)   $810,000 $1,215,000 $1,620,000
Three-year total: $3,645,000 Three-year present value: $2,957,626

Strengthened Security

Evidence and data. Interviewees emphasized the need for proactive security measures to avoid incidents and associated breach costs. They noted that the TAM played an important role in assessing the overall Red Hat technology environment by notifying them of potential issues and weaknesses. The TAM also addressed existing vulnerabilities, strengthening the security posture of interviewees’ organizations, which rely heavily on Red Hat software for business-critical applications.

  • The solution architect at an IT services organization estimated a saving of 20 days per year on proactive security work that is shifted to the TAM. They said:

    • “There are proactive discussions around security coming from the TAM. As an example, just a couple of days ago, we were discussing the lifecycle of the certificates, which is going to be shortened.”
    • “We do get a notification from TAMs if there is a concern. The TAMs will figure out if it is a known issue or there is an update available. We work on enhancing security that way.”

  • The platform engineering manager at a financial services organization said, “We have a regular schedule to apply and fix our OpenShift clusters, and the TAM supports all these schedules for us.”

  • The senior systems administrator at a financial services organization said, “We are taking the help of the TAM to fix security risks like vulnerabilities and remediations.”

  • The software solution architect at an IT organization said, “The TAM’s notification can save a significant amount of time depending on the severity of vulnerability found and it’s applicability to our solution.”

Modeling and assumptions. To model the value of this benefit, Forrester assumes the following:

  • The total annual risk exposure to security breaches is $2,815,000.4

  • These breaches originate from external attacks targeting organizations; external attacks targeting remote environments; internal incidents within the organization; and attacks or incidents involving the external ecosystem.5

  • Thirty-three percent of those attacks are addressable with Red Hat TAM. The risk of exposure to breach costs is reduced by 10% with the TAM.

Risks. The risk that another organization will experience a different magnitude of value from this benefit depends on:

  • Their average annual rate of security breach.

  • The average cost of breaches.

  • The TAM’s impact on security, which may be higher or lower depending on the security stance before engaging the TAM.

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 $196,000.

Enhanced Time To Market

Ref. Metric Source Year 1 Year 2 Year 3
D1 Total annual risk exposure to security breaches Forrester Research $2,815,000 $2,815,000 $2,815,000
D2 Percent of breaches originating from external attacks targeting organizations; external attacks targeting remote environments; internal incidents; and attacks or incidents involving the external ecosystem Forrester Research 100% 100% 100%
D3 Percent of those attacks addressable with Red Hat TAM Composite 33% 33% 33%
D4 Annual risk exposure addressable with Red Hat TAM D1*D2*D3 $928,950 $928,950 $928,950
D5 Reduced risk of exposure to breach costs from addressable attacks with Red Hat TAM Interviews 10% 10% 10%
Dt Strengthened security D4*D5 $92,895 $92,895 $92,895
  Risk adjustment 15%      
Dtr Strengthened security (risk-adjusted)   $78,961 $78,961 $78,961
Three-year total: $236,882 Three-year present value: $196,364

Unquantified Benefits

Interviewees mentioned the following additional benefits that their organizations experienced but were not able to quantify:

  • Upskilling developers, system administrators, and infrastructure and platform teams. Aside from time-saving benefits, the interviewees described how the TAM service can advance the skill sets of their team members. Hands-on workshops give these teams the opportunity to learn and test new skills in an interactive way, with the support of a live Red Hat expert. The solution architect at an IT services organization said, “TAMs themselves are very useful at upskilling our teams, as they know the product and specialists within the business unit very well.”

  • Gaining advanced insight into Red Hat’s product roadmap. Interviewees explained that during regularly scheduled cadence meetings, the TAM discusses upcoming products. This type of discussion allows their organization to both develop their future technology strategy and influence the way in which Red Hat releases the products to market. The solution architect at an IT services organization said, “We talk about additional features that are still in the wild, under tech review, to influence how the functionality will come into general availability.”
    The senior systems administrator at a financial services organization said: “The TAM shares information with us regarding new products, features, enhancements, and future releases. This includes OpenShift Virtualization and OpenShift AI.”

Flexibility

The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement a TAM and later realize additional uses and business opportunities, including:

  • Expanding the TAM relationship to support additional Red Hat applications and new AI-enabled workloads. Interviewees described their plans to continue shifting critical applications to Red Hat infrastructure and anticipated using TAM expertise to support the migrations. The senior systems administrator at a financial services organization said: “All the customer-related banking, mobile banking, online banking, will be moved to OpenShift. Our environment is critical today but will be increasingly critical in the coming years. Hopefully the TAM services continue [to support this].”

Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Total Economic Impact Approach).

Analysis Of Costs

Quantified cost data as applied to the composite

Total Costs

Ref. Cost Initial Year 1 Year 2 Year 3 Total Present Value
Etr TAM fees $0 $418,950 $418,950 $418,950 $1,256,850 $1,041,867
Ftr Ongoing management $0 $51,597 $51,597 $51,597 $154,791 $128,314
  Total costs (risk-adjusted) $0 $470,547 $470,547 $470,547 $1,411,641 $1,170,181

TAM Fees

Evidence and data. Interviewees told Forrester that the fee for a TAM’s services was straightforward; it varied depending on the organization’s location.

Modeling and assumptions. To model the value of this cost, Forrester assumes the following:

  • The composite uses one TAM for each of its Red Hat software subscriptions: RHEL, OpenShift, and Ansible.

  • The standard list price per TAM in North America is $133,000. Fees vary across geographic regions and in accordance with an organization’s unique characteristics. Please contact Red Hat for additional details.

Risks. The risk that another organization will experience a different magnitude of value from this cost depends on:

  • The array of Red Hat products used.

  • Whether they use a TAM for each of those products.

  • Other factors that might affect the annual fee per TAM. To understand these variables fully, readers should contact Red Hat.

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 $1.0M.

TAM Fee

Ref. Metric Source Initial Year 1 Year 2 Year 3
E1 Number of TAMs Composite   3 3 3
E2 Fee per TAM Red Hat   $133,000 $133,000 $133,000
Et TAM Fee E1*E2   $399,000 $399,000 $399,000
  Risk adjustment 5%        
Etr TAM fee (risk-adjusted)   $0 $418,950 $418,950 $418,950
Three-year total: $1,256,850 Three-year present value: $1,041,867

Ongoing Management

Evidence and data. Interviewees explained that their organizations meet regularly — often once per week — with their assigned TAM. They said these meetings include both case reviews and resolution as well as discussions of business goals and upcoming feature releases. While the meetings were often virtual, interviewees also discussed points throughout the year when they met their TAM in-person.

  • The solution architect at an IT services organization said: “Generally, I would say we are more weekly than biweekly in meeting with the TAM. We have changed TAMs, but there has always been a smooth handover from one to the other because they exchange internal information first.”

  • The software solution architect at an IT organization said, “We meet once every two weeks for OpenStack and every week for OpenShift because we have a larger customer base.”

  • The platform engineering manager at a financial services organization said: “We have a delivery cadence once a month to understand if the goals are in line. Around 20 people interact with the TAM.”

  • The senior systems administrator at a financial services organization said: “We have a total team of seven engineers and one manager. Eight people are interacting with the TAM [regularly].”

Modeling and assumptions. To model the value of this cost for the composite organization, Forrester assumes the following:

  • Three TAMs each participate in one customer team meeting per week.

  • Five technical engineers participate in each weekly meeting.

  • The fully burdened hourly rate for the participating technical engineers is $63.

Risks. The risk that another organization will experience a different magnitude of value from this cost depends on:

  • The number of TAMs the organizations uses.

  • The frequency of team meetings with the TAM.

  • The number of employees taking part in each TAM meeting.

  • The average rate of pay for participating team members.

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 $128,000.

Ongoing Management

Ref. Metric Source Initial Year 1 Year 2 Year 3
F1 Meeting hours per year per TAM Interviews   52 52 52
F2 Team members per TAM meeting Composite   5 5 5
F3 Fully burdened hourly rate for a technical engineer involved in TAM meetings A10   $63 $63 $63
F4 Number of TAMs E1   3 3 3
Ft Ongoing management F1*F2*F3*F4 $0 $49,140 $49,140 $49,140
  Risk adjustment 5%        
Ftr Ongoing management (risk-adjusted)   $0 $51,597 $51,597 $51,597
Three-year total: $154,791 Three-year present value: $128,314

Financial Summary

Consolidated Three-Year, Risk-Adjusted Metrics

Cash Flow Chart (Risk-Adjusted)

[CHART DIV CONTAINER]
Total costs Total benefits Cumulative net benefits Initial Year 1 Year 2 Year 3

Cash Flow Analysis (Risk-Adjusted)

  Initial Year 1 Year 2 Year 3 Total Present Value
Total costs $0 ($470,547) ($470,547) ($470,547) ($1,411,641) ($1,170,181)
Total benefits $0 $1,832,813 $2,315,573 $2,798,333 $6,946,720 $5,682,321
Net benefits $0 $1,362,266 $1,845,026 $2,327,786 $5,535,079 $4,512,140
ROI           386%
Payback           <6 months

 Please Note

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.

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.

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

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 Technical Account Managers can have on an organization.

Due Diligence

Interviewed Red Hat stakeholders and Forrester analysts to gather data relative to Red Hat Technical Account Managers.

Interviews

Interviewed four decision-makers at organizations using Red Hat Technical Account Managers to obtain data about costs, benefits, and risks.

Composite Organization

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

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.

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.

Total Economic Impact Approach

Benefits

Benefits represent the value the solution delivers to the business. The TEI methodology places equal weight on the measure of benefits and costs, allowing for a full examination of the solution’s effect on the entire organization.

Costs

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

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

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.”

Financial Terminology

Present value (PV)

The present or current value of (discounted) cost and benefit estimates given at an interest rate (the discount rate). The PVs of costs and benefits feed into the total NPV of cash flows.

Net present value (NPV)

The present or current value of (discounted) future net cash flows given an interest rate (the discount rate). A positive project NPV normally indicates that the investment should be made unless other projects have higher NPVs.

Return on investment (ROI)

A project’s expected return in percentage terms. ROI is calculated by dividing net benefits (benefits less costs) by costs.

Discount rate

The interest rate used in cash flow analysis to take into account the time value of money. Organizations typically use discount rates between 8% and 16%.

Payback

The breakeven point for an investment. This is the point in time at which net benefits (benefits minus costs) equal initial investment or cost.

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 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.

Appendix B

Endnotes

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 Source: “Cost Of A Cybersecurity Breach Survey, Q4 2020,” Forrester Consulting, 2020.

3 Ibid.

4 Cumulative breach costs are computed using the composite organization’s size (revenue or number of employees) as an input to a regression analysis of reported total cumulative costs for all breaches for organizations that experienced at least one breach in the past 12 months. “Using your best estimate, what was the total cumulative cost of all breaches experienced by your organization in the past 12 months?” Base: 1,740 global security decision-makers who have experienced a breach in the past 12 months. Source: Forrester’s Security Survey, 2025.
The cumulative breach cost is then multiplied by a 67% likelihood for organizations to experience one or more breaches in a given year. “How many times do you estimate that your organization’s sensitive data was potentially compromised or breached in the past 12 months?” Base: 2,643 global security decision-makers. Source: Forrester’s Security Survey, 2025.

5 Percent of breaches by primary attack vector for breaches, as reported by security decision-makers whose organizations experienced at least one breach in the last 12 months. “Of the times that your organization’s sensitive data was potentially compromised or breached in the past 12 months, please indicate how many of each fall into the categories below.” Base: 1,766 global security decision-makers who have experienced a breach in the past 12 months. Source: Forrester’s Security Survey, 2025.

Disclosures

Readers should be aware of the following:

This study is commissioned by Red Hat 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 Red Hat TAM.

Red Hat 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.

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

Consulting Team:

Sarah Lervold

Published

June 2026