The Total Economic Impact™ Of Revenera

Cost Savings And Business Benefits Enabled By Revenera

A Forrester Total Economic Impact™ Study Commissioned By Revenera, April 2025

As technology companies continue to modernize and embrace new software monetization models, effective entitlement management and licensing has become increasingly critical to sustain business growth and agility in a highly competitive market. Legacy approaches often lead to inefficiencies, lost revenue potential, and delays in releasing new products into the market. Organizations need automation-driven solutions in line with modern software consumption trends that enable operational efficiency, improve compliance, and maximize revenue opportunities.

Revenera helps product executives build better products, accelerate time to value, and monetize what matters. Revenera’s solutions help software and technology companies drive top-line revenue with modern software monetization, understand usage and compliance with software usage analytics, empower the use of open source with software composition analysis, and deliver a seamless user experience — for embedded, on-premises, cloud, and SaaS products.

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

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Return on investment (ROI)

426%

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Net present value (NPV)

$28.84M

To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed four decision-makers with experience using Revenera. For the purposes of this study, Forrester aggregated the interviewees’ experiences and combined the results into a single composite organization: a global enterprise specializing in software and technology solutions that generates $2 billion in annual revenue and has 5,000 employees.

Prior to using Revenera, the interviewees noted how their organizations struggled with fragmented manual licensing, entitlement management, and software monetization processes due to a reliance on legacy tools and, in some cases, custom in-house-built solutions. This disjointed approach limited visibility into entitlements and license and product usage; made it difficult to adapt to evolving monetization models such as subscription-based, usage-based, or consumption-based approaches; and created inefficiencies across product delivery and operational workflows. As a result, organizations faced challenges monetizing across both SaaS and on-premises environments, where licensing — defined as the process of enabling and enforcing entitlements by user, device, or usage — was critical. These limitations contributed to revenue leakage, compliance risks, and barriers to scaling more modern, flexible monetization strategies.

After the investment in Revenera, the interviewees’ organizations streamlined their licensing and entitlement management processes through a centralized platform. Key results from the investment include increased annual recurring revenue (ARR) growth, reduced revenue leakage, accelerated time to market, and greater operational efficiency. These improvements not only enhanced day-to-day operations but also positioned organizations for long-term growth and market competitiveness, ultimately improving business outcomes.

Key Findings

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

  • Increased revenue by $19 million by Year 3 due to software monetization model modernization. Revenera’s software monetization and licensing management capabilities enable the composite organization to transition 70% of its traditional perpetual licenses to flexible, subscription-based models by Year 3. This enables more predictable and frequent revenue streams for scalable business growth while also ensuring that the composite stays aligned with market trends and customer preferences. The composite organization sees a total PV benefit of $3.9 million over three years.
     
  • Recaptured revenue totaling $65 million by Year 3 due to improved compliance and streamlined operations. With Revenera’s Compliance Intelligence, Entitlement Management, and Software Licensing solutions in place, the composite organization gains greater visibility into software usage, automates compliance enforcement, and ensures that entitlements are accurately tracked and enforced. This allows the organization to proactively address noncompliant use, overprovisioned licenses, and missed renewals, recapturing 4% of software revenue annually that was previously lost for a total PV of $18.8 million over three years.
     
  • Reduced time to enable licensing and entitlement for new product releases by 90% by Year 3. By automating the process to enable licensing and entitlement management for new software products with Revenera, the composite organization eliminates bottlenecks and launches new products —whether SaaS, cloud-based, or installed locally — into the market more quickly. As a result, it generates revenue sooner and has greater agility to meet fast-evolving market demands, garnering $10.4 million over the three-year study period.
     
  • Created end-user efficiencies that amount to $2.5 million in savings. By automating key processes with Revenera, the composite organization’s IT support, customer support, and developer teams all experience productivity gains. IT support handles fewer routine entitlement queries, as sales and support teams can access data independently through a self-service portal. Customer support sees a significant reduction in the time spent gathering customer entitlement information from multiple sources, which improves response times and customer satisfaction. Meanwhile, developer teams spend less time on custom coding and system maintenance and more on core product innovation and other business improvements.
     

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

  • Enhanced global compliance. Revenera’s flexible software distribution and centralized tracking system allow the composite organization to navigate regional compliance requirements by ensuring software deployments meet specific regulatory needs without disrupting operations.
     
  • Improved customer experience. Having a centralized platform allows customer support teams to access detailed entitlement data for faster, more accurate responses to customers that improve customer relationships.
     
  • Increased sales opportunities due to improved visibility. Real-time software usage insights provided by Revenera give the composite’s account managers better visibility to identify upsell opportunities and engage customers at the optimal time, ultimately boosting sales potential.
     
  • Provided Revenera support. The composite organization benefits from Revenera’s support team, which provides technical guidance and ensures that licensing solutions remain aligned with the organization’s evolving needs.
     

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

  • Revenera software monetization platform costs of $4.3 million over three years. The composite organization pays annual licensing fees based on a revenue-tiered licensing model tied to its software product revenue. Fees increase by 5% each year to account for anticipated growth in software revenue.
     
  • Implementation costs of $2.2 million. The composite organization incurs implementation costs that are primarily driven by internal resource labor for product configuration and system integration. Following a land-and-expand approach, the organization invests heavily in these activities during the initial phase, rolling out core products first and gradually expanding the product portfolio as the system becomes more established. As the foundational infrastructure is established, ongoing efforts decrease in subsequent years. Additionally, the composite organization pays a one-time professional service fee of $200,000 to Revenera for product configuration, integration, and training support.

     
  • Ongoing management effort and training costs of $235,000. The ongoing costs that the composite organization incurs include the time that developers and IT resources dedicate to managing the Revenera platform, as well as costs associated with training its 100 users across customer support, sales, product, and revenue operations.

     

The representative interviews and financial analysis found that a composite organization experiences benefits of $35.62 million over three years versus costs of $6.78 million, adding up to a net present value (NPV) of $28.84 million and an ROI of 426%.
 

$179 million

Revenue recaptured with Revenera due to improved compliance and streamlined operations over three years

4%

Percentage of software revenue leakage due to noncompliant license usage that is recaptured with Revenera

“We chose Revenera over competitors because they are cost-effective, flexible, and support the widest range of use cases relevant to our products. Their strong reputation in the market also made our decision easy.”

Product manager, manufacturing

“We serve [hundreds of thousands of] customers and process a high volume of transactions for highly complex product and SKU structures. Few companies could offer the API-driven, platform-friendly interfaces that Revenera provided us, and the results speak for themselves.”

VP, product, cybersecurity

Key Statistics

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    Return on investment (ROI)

    426%
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    Benefits PV

    $35.62M
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    Net present value (NPV)

    $28.84M
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    Payback

    <6 months
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Benefit (Three-Year)

Increased revenue from software monetization model modernization Increased revenue from improved compliance and streamlined operations Acceleratead time to market End-user efficiencies

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 Revenera.

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 Revenera can have on an organization.

  1. Due Diligence

    Interviewed Revenera stakeholders and Forrester analysts to gather data relative to Revenera.

  2. Interviews

    Interviewed four people at organizations using Revenera 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 Revenera 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 Revenera.

Revenera 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.

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

Consulting Team:

Zahra Azzaoui

Interviews

Role Industry Region Employees Revenue
Director, R&D Engineering technology Multinational 6,000 $2.5 billion
Director, digital operations Energy Multinational 60,000 $25 billion
Product manager Manufacturing Multinational 90,000 $23 billion
VP, product Cybersecurity Multinational 5,000 $1 billion

Key Challenges

Before investing in Revenera, the interviewees’ organizations relied on fragmented, resource-intensive licensing and entitlement management processes that hindered effective monetization of both SaaS and on-prem products. Some organizations used legacy on-premises tools limited to basic license generation, with no broader entitlement management capabilities. Organizations with some level of entitlement tracking often relied on spreadsheets to manage and reuse keys, which offered limited visibility into activations or customer usage. For hardware-integrated software, organizations often gave away bundled software without standardized licensing, which complicated monetization and required custom service work for more complex products. In other cases, teams had built heavily customized internal systems — like complex CRM configurations — to manage entitlements, which created challenges for both scalability and flexibility.

The interviewees noted how their organizations struggled with common challenges, including:

  • Revenue leakage and compliance risks due to untracked licenses and limited visibility into entitlement usage. Organizations lacked real-time insights into license consumption, which resulted in overprovisioning, underreporting, and ultimately, missed revenue opportunities. Compliance risks also increased as legacy systems struggled to enforce licensing agreements, which made it difficult to prevent unauthorized usage.
     
    • The director of digital operations in energy explained: “Our decision to move to Revenera was driven by the need to improve our financials for one of our [core offerings]. We realized we were significantly underselling its value, and with a major revenue shift ahead, we needed full visibility into our customer base. We needed to know who our customers were, what they had, and how they were using it.”
       
  • Legacy licensing and entitlement systems that lacked scalability and limited the ability to support evolving business models. Interviewees’ organizations relied on outdated, rigid systems that were not designed to accommodate modern licensing approaches, such as usage-based or elastic licensing. As customer needs shifted, these systems became a bottleneck, preventing efficient scaling and slowing time to market for new licensing models.
     
    • The director of R&D in engineering technology explained: “We were trying to develop a way to license access to a private cloud instance that functioned like a multitenant cloud for customers. This meant allowing customers to use [our] applications on that cloud. However, the traditional licensing models in our industry did not lend themselves well to cloud-based licensing.”

      The director of R&D continued: “We explored whether there was a market for usage-based licensing, which was cutting-edge at the time. We successfully proved there was demand, even though we initially used a different software solution focused on reporting rather than licensing. More importantly, we demonstrated that the market existed whether customers were using [our] private cloud or traditional on-premises software. That insight led us to develop elastic licensing, which we built out and ultimately launched with Revenera’s help. They have helped us evolve our licensing strategy.”

      The director of digital operations in energy said: “With the tremendous volume that we support, we could not go back to managing everything off of a spreadsheet. When we came across Revenera as an option, we realized that it was the most cost-effective option.”

“Our goal with Revenera was to create opportunities for new pricing models that better suited our business. We wanted to move away from the traditional model of selling a fixed endpoint or firewall for a set number of years and instead have the flexibility to build modern, consumption-based products and services. Our old environment couldn’t enable the kind of complexity we needed.”

VP, product, cybersecurity

    • The product manager in manufacturing said: “A couple of years ago, [our organization] started putting more effort into evolving our software offerings. In the past, we only sold traditional perpetual licenses with maintenance for on-premises software, but within the last few years, we’ve started moving more toward subscription-based and cloud-hosted software. While we still offer certain products on the classic perpetual model when it makes sense, many of our customers have shifted toward subscription-based licensing. Being able to manage a mix of licensing models is why we needed a platform like Revenera.”
       
  • Cumbersome, manual workflows that created operational inefficiencies. Interviewees described their licensing and entitlement processes as slow and frustrating because they had to rely on spreadsheets, recycled license keys, and disjointed tracking systems. Provisioning licenses took too long, mistakes were common, and teams spent too much time on administrative work instead of focusing on higher-value tasks. Without a streamlined system, it was difficult to manage entitlements effectively, maintain compliance, and deliver a smooth experience for customers.
     
    • The director of digital operations in energy shared: “Before Revenera, we had about a hundred different license keys that we would recycle and track it all on a spreadsheet. It was a huge headache.”
       
  • In-house, custom-built solutions that required extensive IT resources and became a long-term burden. To address unique business requirements, some organizations chose to manage licensing and entitlements through heavily customized internal platforms. Over time, these solutions accumulated technical debt, which resulted in ongoing maintenance efforts, delayed updates, and made integration with other systems more difficult.
     
    • The VP of product in cybersecurity said: “Before Revenera, we had an extensive custom-built system with hundreds of thousands of lines of code — one of the largest implementations of its kind. It became a massive and unwieldy system. With an environment that big, we were reaching the limit of what we could do and were not nearly as agile and we should have been.”

      The VP of product continued: “We had a lot of undifferentiated heavy lifting in our [prior environment]. Developers, architects, and IT people were spending way too much time trying to keep these very large, very complex systems up and running. We had a lot of technical debt, which made debugging, adding, and changing features very difficult and costly. Being agile was nearly impossible.”
       
    • The product manager in manufacturing shared, “We did not want to bear the costs of developing, owning, and managing our own licensing and entitlement platform internally, so we went with Revenera.”

       

“Prior to Revenera, we were managing a gargantuan, complicated system that was a hindrance to our business goals. Our old systems were inflexible, costly to update, and incompatible with the flexible go-to-market strategies we were working towards.”

VP, product, cybersecurity

Investment Objectives

The interviewees’ organizations searched for a solution that could:

  • Reduce revenue leakage and ensure compliance with accurate license tracking.
  • Enhance visibility into customer usage and license consumption to optimize revenue opportunities and improve forecasting.
  • Manage increasing licensing complexity with a unified, scalable system.
  • Reduce manual effort through automation of entitlement and licensing processes.
  • Accelerate time to market by streamlining licensing and entitlement workflows.
  • Eliminate technical debt by modernizing legacy systems and reducing maintenance burdens.

Why did we choose Revenera over the others? We already had an existing relationship, and frankly, Revenera showed a greater interest in what we were trying to achieve from a future-looking perspective. The relationship, combined with their willingness to explore long-term opportunities, made them the stronger partner.”

Director, R&D, engineering technology

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 global enterprise specializing in software and technology solutions that generates $2 billion in annual revenue with 10% year-over-year growth. With a workforce of 5,000 employees, it operates across multiple industries and derives 75% of its revenue from software, while the remaining 25% comes from hardware and professional services.

As part of its long-term strategy, the organization is focused on optimizing software monetization and licensing management to ensure sustainable growth. To meet the evolving demands of its customer base, the company is refining its approach to entitlement tracking, compliance enforcement, and revenue protection. Its software portfolio consists of 85% SaaS solutions and 15% on-premises offerings. The company employs a subscription-based monetization model for 90% of its software products, offering term-based and usage-based options for both SaaS and on-prem solutions. The remaining 10% of monetization is derived from perpetual licenses for on-premises software.

Before investing in Revenera, the composite organization relied on a fragmented system of legacy licensing tools, manual entitlement management, and custom-built solutions to oversee software monetization. This fragmented approach led to revenue leakage, operational inefficiencies, and limited agility in responding to market demands. Additionally, the organization’s reliance on manual processes slowed its transition to subscription-based licensing, preventing predictable revenue growth.

To overcome these challenges, the organization seeks to invest in a centralized platform that streamlines software licensing, automates entitlement tracking, and strengthens compliance enforcement. Through this strategic initiative, the organization aims to eliminate revenue leakage, accelerate its transition to subscription-based monetization, and enhance operational agility — positioning itself for long-term scalability and competitive advantage.

Deployment characteristics. The composite organization utilizes Revenera’s Entitlement Management, Software Licensing, and Compliance Intelligence products to optimize software monetization, licensing, and compliance enforcement. It has 100 Revenera users across customer support, sales, product, and revenue operations: Customer support uses the platform to quickly access licensing data during customer interactions; sales ensures accurate entitlement verification during deal negotiations; product integrates licensing solutions to automate entitlement activation and compliance oversight; and revenue operations leverages licensing data to refine monetization strategies and improve forecasting accuracy.

To facilitate adoption, the organization follows a phased implementation approach, initially deploying Revenera for select core products before expanding usage across its broader software portfolio. The composite integrates with its existing business applications, including ERP and CRM systems to ensure that entitlement and licensing data remain synchronized across systems.

Key Assumptions
  • $2 billion annual revenue, 10% YoY growth
  • 5,000 employees
  • 75% of revenue driven by software
  • 85% SaaS/15% on-prem software mix
  • 90% subscription-based/10% perpetual monetization model

Total Benefits

Ref. Benefit Year 1 Year 2 Year 3 Total Present Value
Atr Increased revenue from software monetization model modernization $860,625 $1,577,813 $2,429,831 $4,868,269 $3,911,932
Btr Increased revenue from improved compliance and streamlined operations $6,885,000 $7,573,500 $8,330,850 $22,789,350 $18,777,273
Ctr Accelerated time to market $3,600,000 $4,207,500 $4,900,504 $12,708,004 $10,431,821
Dtr End-user efficiencies $1,005,525 $1,005,525 $1,005,525 $3,016,575 $2,500,592
  Total benefits (risk-adjusted) $12,351,150 $14,364,338 $16,666,710 $43,382,198 $35,621,618

Increased Revenue From Software Monetization Model Modernization

Evidence and data. Interviewees shared that Revenera’s software monetization and licensing management tools were key to facilitating their organizations’ shift away from traditional, perpetual licensing models to subscription-based models. Through this transition, organizations unlocked more predictable and frequent revenue streams. Rather than relying on one-time license sales, organizations were able to roll out recurring software monetization models that were better aligned with market trends and customer usage patterns without having to rebuild their internal systems. This move helped modernize their monetization approach and paved the way for scalable, long-term growth.
 

  • The director of R&D in engineering technology explained how Revenera’s software monetization and licensing management capabilities have supported their efforts to grow ARR by introducing flexible pricing models that better serve different customer segments: “In an effort to increase our annual recurring revenue, we’ve introduced new recurring pricing models and encouraged people to migrate over time. In some cases, we keep both models available for our larger customers because their sales cycles tend to be several years long, and changing licensing models abruptly is challenging.”

    The director of R&D continued: “We’ve also been able to introduce usage-based licensing to capture more small and medium-sized businesses, where the barrier to entry for traditional models is sometimes too high. If they are hesitant to commit to a long-term purchase, we can now introduce a usage-based product, which is a smaller commitment.”
     
  • The product manager in manufacturing said: “Before implementing Revenera, we didn’t have any mechanisms in place to offer subscription-based licensing. Since rolling it out, we’ve started transitioning our multimillion-dollar line of business to renewable subscriptions. Since we’ve been able to automate invoicing and order management, we can now offer subscription-based licensing in ways we couldn’t before.”
     
  • The director of digital operations in energy shared: “We are actively working to shift more of our on-premises offerings to a subscription model through Revenera. Not only does this transition benefit our business by allowing us to bring in more recurring revenue, but it also allows us to host the solution ourselves, so our customer doesn’t need to have their own infrastructure. It’s a win-win.”
     

Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:

  • The composite organization generates $2 billion in annual revenue, with a 10% year-over-year growth rate.
  • Software products comprise 75% of the composite’s revenue.
  • Fifteen percent of the composite’s software is on-premises.
  • Ten percent of the composite’s software revenue is generated through perpetual licensing.
  • With Revenera, the composite transitions 30% of its perpetual licensing revenue to subscription-based licensing in Year 1, 50% in Year 2, and 70% in Year 3.
  • The composite’s operating margin is 15%.

Risks. This benefit will vary among organizations based on:

  • Annual revenue and growth rate.
  • Average percentage of revenue derived from software products.
  • Average percentage of software that is on-premises.
  • Average percentage of software revenue that is generated through perpetual licensing.
  • Average percentage of perpetual licensing revenue transitioned to subscription-based licensing with Revenera.
  • Operating margin.

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 $3.9 million.

70%

Average percentage of perpetual licensing revenue transitioned to subscription-based licensing with Revenera by Year 3

$38 million

Revenue from transitioning from perpetual- to subscription-based licensing over three years

Increased Revenue From Software Monetization Model Modernization

Ref. Metric Source Year 1 Year 2 Year 3
A1 Total revenue Composite $2,000,000,000 $2,200,000,000 $2,420,000,000
A2 Average percentage of revenue derived from software products Composite 75% 75% 75%
A3 Revenue from software products A1*A2 $1,500,000,000 $1,650,000,000 $1,815,000,000
A4 Average percentage of software that is on-prem Composite 15% 15% 15%
A5 Average percentage of software revenue from perpetual licensing Composite 10% 10% 10%
A6 Average percentage of perpetual licensing revenue transitioned to subscription-based licensing with Revenera Interviews 30% 50% 70%
A7 Revenue from transitioning to subscription-based licensing A3*A4*A5*A6 $6,750,000 $12,375,000 $19,057,500
A8 Operating margin Composite 15% 15% 15%
At Increased revenue from software monetization model modernization A7*A8 $1,012,500 $1,856,250 $2,858,625
  Risk adjustment ↓15%      
Atr Increased revenue from software monetization model modernization (risk-adjusted)   $860,625 $1,577,813 $2,429,831
Three-year total: $4,868,269 Three-year present value: $3,911,932

Increased Revenue From Improved Compliance And Streamlined Operations

Evidence and data. Before implementing Revenera, interviewees reported significant revenue leakage due to various forms of license noncompliance — including piracy, underreported usage, and misuse of entitlements — and ineffective license tracking. Interviewees’ organizations struggled with limited visibility into software usage and license compliance and often relied on manual reviews that only surfaced major discrepancies during renewals — leaving smaller, persistent revenue drains unnoticed. Customers exceeding their paid entitlements or using demo versions beyond the allotted period frequently slipped through the cracks.
 

Revenera’s Compliance Intelligence, Entitlement Management, and Software Licensing solutions provided real-time insights into software usage, enabling organizations to detect noncompliance, enforce proper entitlement usage, and ensure effective license tracking and management earlier and with greater confidence. This visibility helped organizations close revenue gaps by identifying misuse and enforcing license agreements before losses escalated. Interviewees also shared that receiving license expiry notifications and leveraging automated entitlement enforcement helped prevent revenue loss by ensuring timely renewals and proactive compliance without disrupting customer relationships.
 

  • The director of R&D in engineering technology said: “We’ve integrated Revenera into our financial system, so everything from royalty reporting to usage-based licensing and entitlement management is now streamlined. This gives us better visibility into who we’ve given licenses to, so we can track whether customers have more licenses than they’ve paid for. We’ve been able to recover a lot of revenue from overprovisioned licenses that would’ve otherwise gone unnoticed.”

    The VP of product in cybersecurity shared: “Historically, we did not pursue customers who were slightly overprovisioned unless it was a gross overuse case. We often waited until renewal cycles to address discrepancies. However, Revenera gives us the capability to track software usage with more precision, particularly for term licenses, and decide when and how to take action. The data it provides allows us to evaluate and take action with more confidence should we need to enforce overprovisioning penalties.”

    The VP of product continued: “We plan to use [Revenera] to introduce workflows for license expiry notifications to give customers proactive reminders when they’ve exceeded entitlements or when their licenses have expired. The goal is to help keep honest customers honest and maintain compliance without being overly aggressive.”

    The VP of product concluded: “While we haven’t enforced over-provisioning restrictions yet, Revenera gives us the capability to do so if needed. This allows us to be more intentional about compliance. We want to strike the right balance between revenue protection and customer experience.”
     

Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:

  • The composite organization generates 90% of its software revenue from subscription-based licensing.
  • Before Revenera, the composite loses 4% of revenue each year due to noncompliance and ineffective license tracking.
  • The composite’s operating margin is 15%.

Risks. This benefit will vary among organizations based on:

  • Revenue derived from software products.
  • Average percentage of software revenue derived from subscription-based licensing.
  • Average percentage of revenue lost due to noncompliance and ineffective license tracking before Revenera.
  • Operating margin.

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 $18.8 million.

$179 million

Revenue recaptured with Revenera due to improved compliance and streamlined operations over three years

“With a customer base [in the hundreds of thousands], it’s impossible to have direct sales relationships with everyone, which meant we didn’t have full visibility into how licenses are deployed across an entire estate. Revenera acts as our single source of truth for entitlement tracking to help us identify cases where customers consistently exceed their entitlements.”

VP, product, cybersecurity

Increased Revenue From Improved Compliance And Streamlined Operations

Ref. Metric Source Year 1 Year 2 Year 3
B1 Revenue from software products A3 $1,500,000,000 $1,650,000,000 $1,815,000,000
B2 Average percentage of software revenue from subscription-based licensing Composite 90% 90% 90%
B3 Average percentage of revenue lost due to noncompliance and ineffective license tracking before Revenera Interviews 4% 4% 4%
B4 Revenue recaptured with Revenera B1*B2*B3 $54,000,000 $59,400,000 $65,340,000
B5 Operating margin A8 15% 15% 15%
Bt Increased revenue from improved compliance and streamlined operations B4*B5 $8,100,000 $8,910,000 $9,801,000
  Risk adjustment ↓15%      
Btr Increased revenue from improved compliance and streamlined operations (risk-adjusted)   $6,885,000 $7,573,500 $8,330,850
Three-year total: $22,789,350 Three-year present value: $18,777,273

Accelerated Time To Market

Evidence and data. Before Revenera, interviewees’ organizations faced significant delays in enabling licensing and entitlement before releasing new software products to the market. These delays created bottlenecks, where products were ready but remained unsellable due to the time-consuming process of defining, generating, and enabling software licenses and entitlements. In some cases, organizations even had to delay product launches or abandon planned releases altogether because of the slow pace of licensing integrations. Organizations often spent months on manual integrations with order management systems, front-end interface development, and the creation of administrative tools for license management.
 

These inefficiencies slowed product launches, delayed revenue generation, and hindered businesses from quickly capitalizing on market demand. With Revenera’s automated software licensing and entitlement management, organizations were able to accelerate time to market by streamlining these previously manual processes. This allowed them to generate revenue sooner, respond to customer demands faster, and maintain a competitive edge in their industry.
 

  • The product manager in manufacturing said: “Implementing licensing and entitlement systems for new products could take over a year [in the prior environment]. We had to figure out how to integrate with order management systems, build a front-end interface, and create an administrative tool for managing licenses. Although the overall project may span several months with different components occurring at different times, the time required to enable licensing and entitlement now takes only one month.”

    The product manager continued: “The value here is clear: We’re able to do in a month what used to take over a year. Now, when we onboard a new product, it’s just a small portion of our standard work process, rather than a major challenge that we need to figure out. Previously, this was considered a high-risk area of our development process, but now, it’s a well-established part of each project. It means we can launch new products faster.”

    The product manager concluded: “Before Revenera, we would have had to wire things together, test in production and QA, and verify that the new license worked, which was a much more complex and time-consuming process. Now, for products that are already onboarded and have their licensing and entitlement systems set up in Revenera, adding a new license takes just a few minutes. You simply open Revenera, enter the new SKU, and it’s done. Of course, there are additional steps, like updating our ERP system, but overall, the time required is drastically reduced compared to before.”

     

Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:

  • Ten percent of the composite organization’s software revenue is attributable to new software development, rather than recurring revenue.
  • The composite releases 0.5 new software products per year, or one new product every two years.
  • Before Revenera, it takes the composite 160 hours each year to enable licensing and entitlement.
  • With Revenera, the composite experiences an 80% reduction in time to enable licensing and entitlement.
  • The composite’s operating margin is 15%.

Risks. This benefit will vary among organizations based on:

  • Average percentage of software revenue is attributable to new software development, rather than recurring revenue.
  • Frequency of software product releases with licensing and entitlement management enabled by Revenera.
  • Time to enable licensing and entitlement before Revenera.
  • Operating margin.

Results. To account for these risks, Forrester adjusted this benefit downward by 20%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $10.4 million.

90%

Reduction in time to enable licensing and entitlement by Year 3 with Revenera

$106 million

Incremental revenue from automated software licensing and entitlement management for new product releases over three years

Accelerated Time To Market

Ref. Metric Source Year 1 Year 2 Year 3
C1 Percentage of software revenue attributable to new software development (rather than recurring revenue) Composite 10% 10% 10%
C2 Revenue from new software development A3*C1 $150,000,000 $165,000,000 $181,500,000
C3 Average new product releases with licensing and entitlement management enabled with Revenera Composite 0.5 0.5 0.5
C4 Average revenue per product release C2*C3 $75,000,000 $82,500,000 $90,750,000
C5 Time to enable licensing and entitlement before Revenera (hours) Composite 160 160 160
C6 Reduction in time to enable licensing and entitlement with Revenera Interviews 80% 85% 90%
C7 Time to enable licensing and entitlement per product release avoided with Revenera (hours) (rounded) C5*C6 128 136 144
C8 Average revenue impact per hour per product release C4/C5 $468,750 $515,625 $567,188
C9 Incremental revenue from automated software licensing and entitlement management for new product releases with Revenera C3*C7*C8 $30,000,000 $35,062,500 $40,837,536
C10 Operating margin A8 15% 15% 15%
Ct Accelerated time to market C9*C10 $4,500,000 $5,259,375 $6,125,630
  Risk adjustment ↓20%      
Ctr Accelerated time to market (risk-adjusted)   $3,600,000 $4,207,500 $4,900,504
Three-year total: $12,708,004 Three-year present value: $10,431,821

End-User Efficiencies

Evidence and data. Interviewees’ organizations reported significant efficiency gains for their IT support, customer support, and developer teams after implementing Revenera. They shared the following regarding the impact on each role:
 

  • IT support savings. Before implementing Revenera, interviewees shared that their organizations’ IT support teams allocated significant time to fulfilling requests from sales and service teams to pull customer entitlement data. These requests often required manual searches across multiple systems, including CRMs, spreadsheets, and internal databases. With Revenera’s self-service capabilities, sales and support teams were able to independently access entitlement data through a centralized platform, allowing IT support resources to spend less time handling routine data requests and more time on strategic initiatives.
     
    • The director of digital operations in energy explained: “Our sales, commercial, and service people now have access to [Revenera’s Entitlement Management solution], so they can look up customer data on their own. They no longer have to reach out to tech support for questions about what exists once they have access. Because this has made us much more efficient, we’ve continued to put effort into educating teams on how to access Revenera on their own, so they don’t have to refer to a spreadsheet or call somebody.”
       
  • Customer support savings. Interviewees explained that their customer support teams previously had to manually gather customer entitlement data from multiple sources, such as CRMs, spreadsheets, and IT systems, to effectively engage with customers. This process was time-consuming and often resulted in delayed responses to customer inquiries. With Revenera, all customer licensing information was consolidated into a single platform, so customer support agents could quickly access the information they needed to respond to customer queries in real time. This streamlined access significantly reduced time spent searching for data and improved their overall efficiency.
     
    • The product manager in manufacturing shared that instead of spending 2 hours per customer call tracking down license information across teams and systems, the customer support team now gets an instant report with Revenera. They said: “Before implementing Revenera, it was difficult for customer support teams to quickly identify which licenses a customer had. To gather that information, they would need to reach out to multiple teams across different business units to ask about the customer’s products. They would also have to go into CRMs and spreadsheets, or ask IT for an audit report, but there was no centralized system. Now, with Revenera, the customer support team can instantly access a clear snapshot of what licenses a customer has, whether active or expired, without having to search through multiple systems.”
       
  • Developer savings. Before Revenera, interviewees’ organizations allocated developers to custom development for entitlement management in complex in-house systems. These tasks, which involved continuous updates, bug fixes, and bespoke coding, diverted their focus from core activities like product development and business innovation. By implementing Revenera, organizations automated entitlement management and eliminated the need for custom code development and manual system updates.
     
    • The VP of product in cybersecurity said that prior to Revenera, they would have between 10 to 12 developers dedicated to custom code development and managing the entitlement system. Reflecting on the effort required from these developers in the prior environment, they said: “If [our developers] weren’t working on keeping the system running, they were trying to implement changes, which was particularly difficult because of how complex our system was. Now, those developers are focused on more important tasks. We have four or five people still working with the entitlement system, but most of their time is spent adding reporting capabilities or exploring new ways to enhance our business operations. We’re looking at new features, capabilities, and ways to improve our go-to-market strategy.”

      The product manager in manufacturing said: “When we talked to different business units within our organization about implementing on Revenera, we sometimes faced the question: ‘Why can’t we just do this on our own? Why can’t we just publish our own web pages to activate products?’ The answer was that the costs, both in terms of headcount and infrastructure, would be significant. Having multiple products — with different ways to build and manage them and various systems to support each one — adds up quickly. Even if some of them shared the same platform, we’d still have to build and manage several systems on our own. With Revenera, we’ve been able to reduce that complexity from many different methods down to just one or two.”

      The product manager continued: “Building our own license management tool in-house would require a five- to 10-person development team just to build and maintain it. Our contract with Revenera is significantly less than the cost of doing it internally. Along with the cost savings, our Revenera contract gives us the flexibility to scale up to tens of millions in tiered licenses, which is something our in-house infrastructure simply wouldn’t be able to support.”

      The product manager concluded: “Arguably one of the biggest advantages for us is that we no longer need to build, maintain, and support the integrations with our ERP systems and other business applications. Revenera allows us to avoid repeated integration efforts across different divisions using the system. That’s huge for us.”

       

Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:

  • IT support savings:
    • The composite organization dedicates four IT support resources to servicing sales and support teams before Revenera.
    • The composite reassigns 75% of these IT support resources due to Revenera’s self-service capabilities.
    • The average fully burdened annual salary of an IT support resource is $54,000.
  • Customer support savings:
    • The composite has a customer support team of 30 employees.
    • Before Revenera, each customer support resource spent 25 hours per quarter gathering customer data around entitlement and licensing.
    • With Revenera, the composite experiences a 95% reduction in time spent gathering customer data around entitlement and licensing.
    • The average fully burdened hourly rate of a customer support resource is $30.
    • For this benefit, the composite has a productivity recapture rate of 50%. Customer support resources spend half of the time they save on activities that generate business value, but not all reclaimed time is dedicated to value-added work.
  • Developer savings:
    • The composite dedicated six developers to custom development for entitlement management before Revenera.
    • With Revenera, the composite reassigns 90% of these developer resources.
    • The average fully burdened annual salary of a developer is $182,500.

Risks. This benefit will vary among organizations based on:

  • IT support savings:
    • IT support resources dedicated to servicing sales/support teams before Revenera.
    • Average fully burdened annual salary of an IT support resource.
  • Customer support savings:
    • Customer support team size.
    • Time spent gathering customer data around entitlement and licensing before Revenera.
    • Average fully burdened hourly rate of a customer support resource.
  • Developer savings:
    • Developer team size working on internal software development before Revenera.
    • Average fully burdened annual salary of a developer.

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 $2.5 million.

End User Efficiencies

Ref. Metric Source Year 1 Year 2 Year 3
D1 IT support resources dedicated to servicing sales/support teams before Revenera Composite 4 4 4
D2 Reduction in IT support resources with Revenera due to self-service Interviews 75% 75% 75%
D3 IT support resources reassigned with Revenera D1*D2 3 3 3
D4 Average fully burdened annual salary of an IT support resource Composite $54,000 $54,000 $54,000
D5 Subtotal: IT support savings D3*D4 $162,000 $162,000 $162,000
D6 Customer support team Composite 30 30 30
D7 Time spent gathering customer data around entitlement and licensing per customer support resource per quarter (hours) Composite 25 25 25
D8 Reduction in time spent gathering customer data around entitlement and licensing with Revenera Interviews 95% 95% 95%
D9 Time spent gathering customer data around entitlement and licensing avoided with Revenera (hours) D6*D7*4*D8 2,850 2,850 2,850
D10 Average fully burdened hourly rate of a customer support resource Composite $30 $30 $30
D11 Productivity recapture TEI methodology 50% 50% 50%
D12 Subtotal: Customer support savings D9*D10*D11 $42,750 $42,750 $42,750
D13 Developer team dedicated to custom development for entitlement management before Revenera Composite 6 6 6
D14 Reduction in developer resources with Revenera Interviews 90% 90% 90%
D15 Developer resources reassigned with Revenera (rounded) D13*D14 5 5 5
D16 Average fully burdened annual salary of a developer resource Composite $182,500 $182,500 $182,500
D17 Subtotal: Developer savings D15*D16 $912,500 $912,500 $912,500
Dt End-user efficiencies D5+D12+D17 $1,117,250 $1,117,250 $1,117,250
  Risk adjustment ↓10%      
Dtr End-user efficiencies (risk-adjusted)   $1,005,525 $1,005,525 $1,005,525
Three-year total: $3,016,575 Three-year present value: $2,500,592

3

IT support resources reassigned due to self-service with Revenera

95%

Reduction in time customer support resources spent gathering customer data around entitlement and licensing with Revenera

90%

Developer resources reassigned due to Revenera who were previously dedicated to internal software development

Unquantified Benefits

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

  • Enhanced global compliance. Interviewees reported that using Revenera helped their organizations to more effectively navigate regional compliance requirements. By providing flexible software distribution options and a centralized system for tracking deployments, organizations could ensure that they met specific regulatory needs without disrupting operations.
     
    • The director of digital operations in energy said: “Sometimes, there are certain regions that don’t want their software deployed from the cloud and instead ask us to send it by DVD. To accommodate this, we make the software available in Revenera so we can track it, but we also send the DVD. Other than that, most people just receive their software electronically through Revenera based on what they are entitled to use, and compliance issues rarely come up.”
       
  • Improved customer experience. Interviewees noted that Revenera’s centralized platform improved customer interactions by providing better visibility into entitlements and support needs. Previously, organizations faced challenges in tracking customer licensing and service agreements, which often led to inconsistent support. With Revenera, customer support teams can easily access comprehensive reports on each customer’s entitlements to ensure that inquiries are adequately addressed, which ultimately strengthened customer relationships.
     
    • The product manager in manufacturing said: “Before Revenera, there was no easy way to differentiate between customers on maintenance or subscription and those who weren’t. We ended up providing support to everyone, which was costly. Now, with Revenera, we can quickly identify who is paying for maintenance or subscriptions, which allows us to manage support resources more effectively and set clear expectations with customers.”

      The product manager continued: “Revenera gives us the ability to segment customers by their support status so that we can provide tiered support and offer premium services to those who are paying for ongoing maintenance or subscription. We wouldn’t have been able to do any of this without centralized tooling.”
       
  • Increased sales opportunities due to improved visibility. Interviewees reported that Revenera transformed the way account managers engage with customers and identify upsell opportunities. Before investing in the platform, organizations had limited visibility into utilization data, such as fulfilment rates, feature usage, and service denials, which made it difficult for account managers to anticipate needs or initiate meaningful conversations around potential expansions. With Revenera, organizations had access to accurate, real-time software usage data and customizable notifications to better manage pipelines and engage customers at the right time — helping to increase the likelihood of securing new sales opportunities.
     
    • The director of R&D in engineering technology said: “One of the biggest challenges in our industry is that account managers often reengage customers a year later with little more than anecdotal feedback from conversations. There’s no clear view into actual usage, which makes it hard to steer sales conversations and identify the best next steps with customers. Revenera gives us analytics around what customers are using, and that insight changes everything.”

      The director of R&D continued: “We’re now having more frequent conversations with customers when they are nearing the end of their credits or have already used them up. We’re able to initiate discussions about purchasing more often.”

       
  • Provided Revenera support. Interviewees shared that Revenera’s customer support played a key role in helping their teams navigate licensing and entitlement management with confidence. With direct access to engineers who provide guidance and technical expertise around deployment, troubleshooting, and ongoing system optimization, interviewees described Revenera’s support approach as responsive and collaborative. Revenera continues to work closely with the interviewees’ organizations to ensure their licensing solutions remain aligned with evolving business needs.
     
    • The VP of product in cybersecurity said: “Revenera’s support team has been very collaborative throughout this process. They weren’t just collaborative in the usual sales-process sense — they took a customer-centric approach that addressed our technical needs. Whenever we have an issue, we can get on the phone with their engineers to help resolve it. It’s not just about Revenera’s features and functionality — we also chose them because they showed that they care about our success.”
       

Any large-scale business system transformation comes with its challenges, but Revenera was extraordinarily good at helping us navigate that journey. They had people on call 24 hours a day, including weekends, for two weeks straight to make sure we had the support we needed at every stage.

VP, product, cybersecurity

Flexibility

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

  • Business agility. Interviewees shared how Revenera has helped their organizations quickly adjust to changing market demands and take advantage of new opportunities. The platform’s analytics provided insights into trends that helped them proactively identify shifts in customer needs and emerging market opportunities. With these insights, organizations were able to make more informed decisions about pricing, product offerings, and go-to-market strategies to remain competitive in a rapidly evolving landscape.
     
    • The product manager in manufacturing explained: “Revenera has allowed us to explore new business models that would have been difficult to implement in the past. We’re developing a new offering that will have variable costs tied to power usage, so we’re working to align costs with the actual value we deliver. Without Revenera, we would have defaulted to a flat subscription or perpetual pricing model, but now we can offer flexible pricing tied to measurable savings. It’s been a great enabler for us."
       
    • The VP of product in cybersecurity shared: “Revenera has laid the groundwork for us to explore ways to incorporate new features, capabilities, and functionality into our overall business operations. We’ve been using what we learned to work on product enhancements, new go-to-market approaches, and a more efficient renewal process.”
       

Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Appendix A).

Total Costs

Ref. Cost Initial Year 1 Year 2 Year 3 Total Present Value
Etr Fees to Revenera $0 $1,650,000 $1,732,500 $1,819,125 $5,201,625 $4,298,554
Ftr Implementation costs $1,204,434 $726,831 $459,228 $0 $2,390,493 $2,244,717
Gtr Ongoing management effort and training $54,600 $72,503 $72,503 $72,503 $272,108 $234,903
  Total costs (risk-adjusted) $1,259,034 $2,449,334 $2,264,231 $1,891,628 $7,864,226 $6,778,174

Fees To Revenera

Evidence and data. Interviewees reported that their organizations paid annual fees to Revenera based on a revenue-tiered licensing model tied to their software product revenue. Pricing was set upfront and remained fixed over the typical three-year agreement term.
 

They described Revenera’s cost structure as a scalable model that aligned with business growth over time: As software revenue increased year over year, future contract tiers adjusted accordingly. Interviewees noted that this structure provided cost predictability and helped ensure that licensing usage stayed aligned with the benefits their organizations realized from Revenera.
 

Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:

  • The composite organization enters into a three-year agreement with Revenera, with annual fees determined at contract signing that increase 5% year over year to reflect anticipated growth in software product revenue.
  • Pricing is fixed for the duration of each contract term and reevaluated at renewal based on updated software revenue levels.
  • Pricing may vary. Contact Revenera for additional details.

Risks. This benefit will vary among organizations based on:

  • The size and growth trajectory of an organization’s software product revenue.
  • The specific licensing terms, discounts, or custom pricing structures negotiated.

Results. To account for these risks, Forrester adjusted this cost upward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $4.3 million.

Fees To Revenera

Ref. Metric Source Initial Year 1 Year 2 Year 3
E1 Annual licensing cost Composite   $1,500,000 $1,575,000 $1,653,750
Et Fees to Revenera E1 $0 $1,500,000 $1,575,000 $1,653,750
  Risk adjustment ↑10%        
Etr Fees to Revenera (risk-adjusted)   $0 $1,650,000 $1,732,500 $1,819,125
Three-year total: $5,201,625 Three-year present value: $4,298,554

Implementation Costs

Evidence and data. Interviewees described their organizations’ implementation of Revenera as a land-and-expand approach, beginning with a few core products and gradually expanding across the product portfolio once they established the foundational infrastructure. Organizations paid Revenera’s professional services fee for initial rollout planning, product configuration, and training during the onboarding process. This fee covered the initial setup and helped streamline the integration of Revenera into existing systems.
 

The initial focus was on integrating business systems and applications, configuring licensing models, and automating entitlement processes. During this phase, organizations collaborated across three key teams:

  • Developers led the technical integration, set up the licensing models, and ensured the compatibility of new products with the system. They worked closely with the other teams to ensure smooth integration.
     
  • Revenue operations aligned the entitlement processes with the sales systems to enable accurate tracking and faster order processing. It was important to ensure that systems would work seamlessly as new products were introduced.
     
  • IT resources managed the underlying infrastructure and ensured data security and smooth integration across platforms. Their work laid the foundation for scalable product rollouts.
     

Once the foundational infrastructure was in place, future product rollouts required a significantly smaller time investment.

  • The director of digital operations in energy said: “To implement [Revenera], we needed people from various departments, including technology, product, software engineering, sales and service, commercial, sourcing, and manufacturing. They all needed to be educated and engaged in the process to make it happen. We had to configure the software not just for Revenera but also for our [other business applications], so it was a substantial effort across multiple teams.”
     
  • The director of digital operations continued: “The initial deployment took about four months after we established internal approval and procedures. After that period, we spent about six months integrating the new functionality into our software. That process involved programming the required features, conducting rigorous testing to ensure everything was functioning as expected, and then preparing for the go-live phase.”
     
  • The VP of product in cybersecurity shared: “Our implementation was a two-and-a-half-year journey. We had to migrate five years’ worth of data across multiple systems, including our CRM and ERP, and rationalize everything in the new system. We also had to involve legal and compliance before we could go live. It was a big undertaking as part of a larger business transformation.”
     
  • The product manager in manufacturing said: “We’ve spent the last few years working with our business units to onboard them onto Revenera. To do that, we’ve had to transform our ordering process to align with the new monetization models. There were a lot of things we had to build and adjust outside of Revenera itself to support this new way of doing this. Through it, we’ve learned a lot and have become more efficient with time.”

    The product manager continued: “In the first two years, we onboarded four products, and in the last year alone, we’ve onboarded around eight to 10 products. We plan to integrate another six to 10 products within the next year using the experience we’ve gained.”
     

Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:

  • The composite organization pays a one-time professional services fee to Revenera for the initial rollout planning, product configuration, and training during onboarding.
     
  • A mix of FTEs, including developers, revenue operations, and IT resources, are involved in the composite’s implementation.
     
    • Four developer FTEs spend 100% of their time on implementation in the first year. In Years 2 and 3, their time commitment decreases to 75% and 50%, respectively, as the focus shifts to system maintenance and further product integrations.
       
    • The average fully burdened annual salary of a developer resource is $182,500.
       
    • Two revenue operations FTEs spend 60% of their time on implementation in Year 1. In Years 2 and 3, their time commitment decreases to 40% and 20%, respectively, as the entitlement processes become more streamlined.
       
    • The average fully burdened annual salary of revenue operations resource is $108,000.
       
    • Two IT FTEs spend 60% of their time on implementation in Year 1. In Years 2 and 3, their time commitment decreases to 40% and 20%, respectively, as they focus on ensuring smooth integration and maintaining system security.
       
    • The average fully burdened annual salary of an IT resource is $72,900.
       

Risks. This benefit will vary among organizations based on:

  • The scope and complexity of the product portfolio.
     
  • The number and fully burdened annual salaries of FTEs dedicated to implementation.
     
  • The complexity, size, and scope of the transition from legacy systems to Revenera.
     

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 $2.2 million.

Implementation Costs

Ref. Metric Source Initial Year 1 Year 2 Year 3
F1 Revenera professional services fee Composite $200,000      
F2 Developer resources involved in implementation Composite 4 4 4  
F3 Average percentage of developer resource time spent on implementation Interviews 100% 75% 50%  
F4 Average fully burdened annual salary of developer resource D16 $182,500 $182,500 $182,500  
F5 Revenue operations resources involved in implementation Composite 2 2 2  
F6 Average percentage of revenue operations resource time spent on implementation Interviews 60% 40% 20%  
F7 Average fully burdened annual salary of revenue operations resources, blended Composite $108,000 $108,000 $108,000  
F8 IT resources involved in implementation Composite 2 2 2  
F9 Average percentage of IT resource time spent on implementation Interviews 60% 40% 20%  
F10 Average fully burdened annual salary of IT resource Composite $72,900 $72,900 $72,900  
F11 Subtotal: Implementation effort (F2*F3*F4)+(F5*F6*F7)+(F8*F9*F 10) $947,080 $692,220 $437,360  
Ft Implementation costs F1+F11 $1,147,080 $692,220 $437,360 $0
  Risk adjustment ↑5%        
Ftr Implementation costs (risk-adjusted)   $1,204,434 $726,831 $459,228 $0
Three-year total: $2,390,493 Three-year present value: $2,244,717

Ongoing Management Effort And Training

Evidence and data. Interviewees indicated that the ongoing management of Revenera required consistent but relatively low effort across developer and IT teams. Activities included maintaining infrastructure, managing system updates, handling troubleshooting, and ensuring that the platform remained integrated and aligned with business needs. Interviewees also mentioned collaborating with Revenera’s support team to help resolve technical issues as they arose.

Interviewees shared that training requirements for Revenera were minimal. Most users did not need more than two days of training to become proficient in core tasks such as entitlement management, license activation, and reporting. Training was typically concentrated around initial onboarding, with smaller waves of new users trained over time to accommodate organizational growth or role changes.

  • The VP of product in cybersecurity explained the ongoing effort required to keep Revenera running smoothly: “Maintaining the platform on a daily basis requires very few people. Occasionally, we’ll have a spike in team engagement, like when we’re preparing to release a new product, but generally, it doesn’t take a huge amount of effort to make sure the system is up to date.”

    The VP of product also described training effort as a modest time commitment: “It only takes a few hours to train users on Revenera. Since it operates transparently behind other systems, once they learn how to use it, they don’t need to interact with it on a daily basis. Revenera’s rich set of APIs means we can do a ton of integrations to enhance our users’ experience.”
     
  • The director of digital operations in energy said: “Training on Revenera is straightforward and is largely self-service. When users learn how to access the software, activation IDs, and download packages, it’s already built into the training process. They typically spend about half a day familiarizing themselves with software licensing and getting up to speed on the system.”

    The director of digital operations continued: “Day-to-day, management of our system involves a small team. One engineer handles new product integrations, and two software operations specialists review orders and make adjustments in Revenera accordingly. My primary focus is on managing changes and addressing nonroutine issues, and our digital technology specialist spends time on system-related concerns outside of product management.”

    The director concluded: “We also regularly work with Revenera on technical issues. The digital technology team tracks and follows up on cases related to bugs or system challenges to make sure they’re resolved. Beyond routine management, we also have weekly calls with Revenera’s customer success manager for additional support on optimizing the system and exploring new features.”
     

Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:

  • One developer and one IT FTE each dedicate 25% of their time to ongoing management activities, including maintaining configurations, managing entitlements, and supporting integrations.
    • The average fully burdened annual salary of a developer resource is $182,500.
    • The average fully burdened hourly rate of an IT resource is $72,900.
  • 100 users are trained at initial rollout, with 10 additional users trained in each subsequent year to account for attrition and backfilling.
  • Each user requires 10 hours of training.
  • The average fully burdened hourly blended rate of a user is $52.

Risks. This benefit will vary among organizations based on:

  • The scope and complexity of the product portfolio, including the level of customization and the number of integrations requiring ongoing support.
  • The number and fully burdened annual salaries of developer and IT FTEs involved in ongoing management.
  • The number of users requiring initial and ongoing training, which could vary based on company size and employee turnover.
  • The length of training time required for users, which may vary depending on the complexity of the Revenera system and the prior experience of the users.

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 $235,000.

Ongoing Management Effort And Training

Ref. Metric Source Initial Year 1 Year 2 Year 3
G1 Developer resources dedicated to ongoing management Composite   1 1 1
G2 Average fully burdened hourly rate of developer resource D16   $182,500 $182,500 $182,500
G3 IT resources dedicated to ongoing management Composite   1 1 1
G4 Average fully burdened hourly rate of IT resource F10   $72,900 $72,900 $72,900
G5 Average percentage of time spent on ongoing management Interviews   25% 25% 25%
G6 Subtotal: Ongoing management effort (G1*G2*G5)+(G3*G4*G5)   $63,850 $63,850 $63,850
G7 Total Revenera users requiring training Composite 100 10 10 10
G8 Average time spent on training (hours) Interviews 10 10 10 10
G9 Average fully burdened hourly rate of user, blended Composite $52 $52 $52 $52
G10 Subtotal: Training costs G7*G8*G9 $52,000 $5,200 $5,200 $5,200
Gt Ongoing management effort and training G6+G10 $52,000 $69,050 $69,050 $69,050
  Risk adjustment ↑5%        
Gtr Ongoing management effort and training (risk-adjusted)   $54,600 $72,503 $72,503 $72,503
Three-year total: $272,108 Three-year present value: $234,903

Cash Flow Chart (Risk-Adjusted)

Total costs Total benefits Cumulative net benefits Initial Year 1 Year 2 Year 3
  • icon

    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 ($1,259,034) ($2,449,334) ($2,264,231) ($1,891,628) ($7,864,226) ($6,778,174)
Total benefits $0 $12,351,150 $14,364,338 $16,666,710 $43,382,198 $35,621,618
Net benefits ($1,259,034) $9,901,817 $12,100,107 $14,775,083 $35,517,972 $28,843,444
ROI           426%
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 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.

Total Economic Impact Approach

  • icon

    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.

  • icon

    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.

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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. 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.”

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    PRESENT VALUE (PV)

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

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    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.

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    RETURN ON INVESTMENT (ROI)

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

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    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%.

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    PAYBACK PERIOD

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

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: 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.

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