A Forrester Total Economic Impact™ Study Commissioned By Broadcom, July 2024
Infrastructure automation is crucial to a firm’s success, and yet it can be complex and continually evolving. Since IT resources, budgets, and time are limited, effective infrastructure automation hinges on having tools that are flexible, integrated, and intelligent. Organizations that leverage automation to support their digital initiatives and modern applications, such as generative AI, can go to market faster, improve productivity, and ensure large-scale compliance.1
As a component of VMware Cloud Foundation, VMware Cloud Foundation Automation (formerly called VMware Aria Automation) is a cloud infrastructure automation solution that delivers a self-service private cloud. The solution empowers users with self-service consumption of Kubernetes and modernized cloud infrastructure-as-a-service (IaaS) capabilities, allowing organizations to harness the power of a private cloud-native ecosystem. VMware Cloud Foundation Automation supports organizations that are looking to new technologies such as Kubernetes, open-source software, multiple clouds, and different operating models and practices like DevOps and platform engineering.
Broadcom, which acquired VMware in November 2023, commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential benefits and financial impacts enterprises may realize by deploying VMware Cloud Foundation Automation.2 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of VMware Cloud Foundation Automation on their organizations.
To better understand the benefits and risks associated with this investment, Forrester interviewed four customers with experience using VMware Cloud Foundation Automation.
Prior to using VMware Cloud Foundation Automation, interviewees said that their organizations had sprawling prior technology environments prone to frequent outages due to noncompliant and unenforceable systems and technologies. Manual processes — both proactive and reactive — were prone to error and led to high volumes of infrastructure support tickets. As a result, interviewees’ organizations suffered from bloated IT management costs and were limited in their abilities to scale to meet business needs.
After the investment in VMware Cloud Foundation Automation, the interviewees’ organizations digitally centralized and transformed their infrastructure and services in support of business growth. This mitigated the burden of technology management through a single, streamlined, and unified ecosystem. In addition to avoiding capital outlays for hardware investments, interviewees pointed out significant internal labor cost savings related to legacy technology management. System administrators accelerated and amplified their provisioning capacity as VMware Cloud Foundation Automation helped stabilize system availability, further contributing productivity improvements across technical and nontechnical teams.
For the purposes of this study, Forrester aggregated the interviewees’ experiences and combined the results into a single composite organization that is a global enterprise based in the United States with revenue of $10 billion per year.
Quantified benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include the following (see Supplemental Material for further information on VMware product-related cost savings and business benefits):
For , this benefit might be worth over three years.
For , this benefit might be worth over three years.
For , this benefit might be worth over three years.
For , this benefit might be worth over three years.
For , this benefit might be worth over three years.
Unquantified benefits. Qualitative benefits that provide value for the composite include time savings that are attributed to higher-value activities, improved compliance and governance, and additional VMware ecosystem benefits.
Cost considerations. VMware Cloud Foundation Automation is a component included in VMware Cloud Foundation, so no product costs are quantified for this study. Interviewees discussed several cost considerations that contributed to their value assessment. These included internal and external costs related to deployment and administration activities and timelines for achieving a mature automation environment.
The representative interviews and financial analysis found that a composite organization experiences benefits of $2.44 million over three years (see Supplemental Material for further information).
might experience benefits of over three years.
Benefits Present Value [PV]
Improvement in network availability
Increase in deployment capacity
Reduction in time to deploy new VMs
From the information provided in the interviews, Forrester constructed a Total Economic Impact™ framework for those organizations considering an investment in VMware Cloud Foundation Automation.
The objective of the framework is to identify the benefit, flexibility, and risk factors that affect the investment decision. Forrester took a multistep approach to evaluate the impact that VMware Cloud Foundation Automation can have on an organization.
Interviewed Broadcom stakeholders and Forrester analysts to gather data relative to VMware Cloud Foundation Automation.
Interviewed four representatives at organizations using VMware Cloud Foundation Automation to obtain data about benefits and risks.
Designed a composite organization based on characteristics of the interviewees’ organizations.
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.
Employed fundamental elements of TEI in modeling the investment impact: benefits, flexibility, and risks. Given the increasing sophistication of ROI analyses related to IT investments, Forrester’s TEI methodology provides a complete picture of the total economic impact of purchase decisions. Please see Appendix A for additional information on the TEI methodology.
Readers should be aware of the following:
This study is commissioned by Broadcom 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 VMware Cloud Foundation Automation. For the interactive functionality using Configure Data/Custom Data, the intent is for the questions to solicit inputs specific to a prospect's business. Forrester believes that this analysis is representative of what companies may achieve with VMware Cloud Foundation Automation based on the inputs provided and any assumptions made. Forrester does not endorse Broadcom or its offerings. Although great care has been taken to ensure the accuracy and completeness of this model, Broadcom and Forrester Research are unable to accept any legal responsibility for any actions taken on the basis of the information contained herein. The interactive tool is provided ‘AS IS,’ and Forrester and Broadcom make no warranties of any kind.
Broadcom 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.
Broadcom provided the customer names for the interviews but did not participate in the interviews.
Consulting Team:
Courtenay O’Connor
Role | Industry | Region | Legacy Infrastructure |
---|---|---|---|
Cloud and system administrator | Oil and gas | Africa | Multiple legacy data centers |
IT architect | Government | Europe | Multiple legacy data centers |
IT executive director | Education | North America | Software-defined data center in the public cloud |
Principal engineer | Media | North America | 85% of workloads in public cloud; multiple legacy data centers |
Prior to the investment in VMware Cloud Foundation Automation, interviewees shared how their organizations dealt with complex, widely distributed, poorly managed, and often hardware-based environments. These environments had costly, cascading impacts to business operations and internal and external users, which overly complicated networking and infrastructure teams’ remit. Interviewees further noted how their organizations struggled with common challenges, including:
The interviewees’ organizations selected VMware Cloud Foundation Automation because it could:
Based on the interviews, Forrester constructed a TEI framework, a composite company, and an ROI analysis that illustrates the areas financially affected. The composite organization is representative of the four interviewees, and it is used to present the aggregate financial analysis in the next section. The composite organization has the following characteristics:
Description of composite. The composite organization is a global enterprise based in the United States. In its prior environment, it dedicated approximately 0.2% of its $10 billion in annual revenue to IT management. It had a siloed, distributed, and complex infrastructure with a number of heterogenous hubs that suffered from poor system availability, averaging 99.6% in availability as a result.
The composite organization deployed an average of 3,000 virtual machines annually with new business needs requiring it to significantly scale its provisioning capacity. In the prior environment, half of all VMs deployed were for developer use in product development and innovation. The composite organization promised a three-day SLA for VM deployment, with the developer wasting 10% of that time waiting for services.
Deployment characteristics. The composite organization deploys VMware Cloud Foundation Automation as part of a broader transition from a sprawling physical footprint to a virtualized VMware Cloud Foundation private cloud. With the investment, it seeks to digitally centralize technology and transform network services while optimizing for availability and cost savings.
Ref. | Benefit | Year 1 | Year 2 | Year 3 | Total | Present Value |
---|---|---|---|---|---|---|
Atr | Optimized technology management | $160,650 $160,650 | $321,300 $321,300 | $481,950 $481,950 | $963,900 $963,900 | $773,679 $773,679 |
Btr | Improved availability | $138,755 $138,755 | $282,847 $282,847 | $421,602 $421,602 | $843,203 $843,203 | $676,654 $676,654 |
Ctr | Optimized deployment agility | $90,585 $90,585 | $181,170 $181,170 | $271,755 $271,755 | $543,510 $543,510 | $436,251 $436,251 |
Dtr | Improved organizationwide productivity | $154,700 $154,700 | $205,190 $205,190 | $253,810 $253,810 | $613,700 $613,700 | $500,906 $500,906 |
Etr | Optimized infrastructure support | $10,988 $10,988 | $21,975 $21,975 | $32,963 $32,963 | $65,927 $65,927 | $52,916 $52,916 |
Total benefits (risk-adjusted) | $555,678 $555,678 | $1,012,482 $1,012,482 | $1,462,080 $1,462,080 | $3,030,240 $3,030,240 | $2,440,406 $2,440,406 | |
Evidence and data. As the interviewees’ organizations adopted a cloud platform, they expected to experience one-off technology hardware and software savings throughout the cloud adoption process. This often came in the form of hard costs, such as licenses, equipment, and software-as-a-service (SaaS) subscription fees. For every technology solution in their prior environment, however, interviewees’ organizations also required resources to manage them.
This benefit primarily centers on the decrease in the interviewees’ organizations IT management costs associated with integration, administration, and maintenance of a proliferation of legacy tools, which further prompts additional hard cost savings and capacity optimization in a virtuous cycle (see Supplemental Material for information on additional technology hardware and management cost savings with the VMware Cloud platform products).
This optimization of technology management manifested in several ways for interviewees’ organizations, including:
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
dedicates $0 to infrastructure costs.
Following the initial adoption of a private cloud with a VMware Cloud Foundation environment, might increase the number of workloads supported by VMware Cloud Foundation Automation by 20% each year.
might streamline and optimize technology management within the VMware Cloud Foundation Automation environment, which might result in an additional 5% savings.
Risks. Organizations may experience results that differ from those presented in the financial model due to:
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 $774,000.
For , this benefit might have a three-year, risk-adjusted total PV of .
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
---|---|---|---|---|---|---|
A1 | Annual infrastructure costs in prior environment | CompositeComposite | $18,900,000 $18,900,000 | $18,900,000 $18,900,000 | $18,900,000 $18,900,000 | |
A2 | Percentage of workloads automated with VMware Cloud Foundation Automation | CompositeTEI case study | 20%20% | 40%40% | 60%60% | |
A3 | Reduction in infrastructure and management costs attributable to VMware Cloud Foundation Automation | Interviews | 5%5% | 5%5% | 5%5% | |
At | Optimized technology management | A1*A2*A3 | $189,000 $189,000 | $378,000 $378,000 | $567,000 $567,000 | |
Risk adjustment | ↓15% | |||||
Atr | Optimized technology management (risk-adjusted) | $160,650 | $321,300 | $481,950 | ||
Three-year total: $963,900 $963,900 | Three-year present value: $773,679 $773,679 |
Evidence and data. Prior to the VMware Cloud Foundation Automation investment, interviewees described how their organizations’ core network services were often plagued with outages despite 24/7 availability requirements for revenue operations (see Benefit C for more on how VMware Cloud Foundation Automation mitigated internal user impacts of downtime). Within the VMware environment — and more so when VMware Cloud Foundation Automation was deployed — interviewees pointed out the following ways in which their organizations softened these impacts, including:
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
experiences average annual unplanned downtime of and might have a 50% likelihood that unplanned downtime results in lost profit. has annual revenue of $0 and might have a profit margin of 11%. might experience an average cost per hour of downtime of $0 in lost revenue.
might increase the number of workloads supported by VMware Cloud Foundation Automation by 20% each year.
might experience a 73% reduction in unplanned downtime attributable to VMware Cloud Foundation automation, avoiding 0 hours of unplanned downtime in Year 1, 0 in Year 2, and 0 in Year 3.
Risks. Organizations may experience results that differ from those presented in the financial model due to:
Results. To account for these variables, Forrester adjusted this benefit downward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $677,000.
For , this benefit might have a three-year, risk-adjusted total PV of .
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
---|---|---|---|---|---|---|
B1 | Average annual unplanned downtime prior to using VMware Cloud Foundation Automation | CompositeComposite | 0.2%0.2% | 0.2%0.2% | 0.2%0.2% | |
B2 | Reduction in unplanned downtime attributable to VMware Cloud Foundation Automation | Interviews | 73%73% | 73%73% | 73%73% | |
B3 | Percentage of workloads automated with VMware Cloud Foundation Automation | A2 | 20%20% | 40%40% | 60%60% | |
B4 | Annual unplanned downtime with VMware Cloud Foundation Automation | B1*B3*(1-B2)+B1*(1-B3) | 0.17%0.17% | 0.14%0.14% | 0.11%0.11% | |
B5 | Avoided hours of unplanned downtime with VMware Cloud Foundation Automation | 8,760*(B1-B4) | 2.62.6 | 5.35.3 | 7.97.9 | |
B6 | Annual revenue | CompositeComposite | $10,000,000,000 $10,000,000,000 | $10,000,000,000 $10,000,000,000 | $10,000,000,000 $10,000,000,000 | |
B7 | Likelihood that unplanned downtime resulted in lost profit in the prior environment | CompositeTEI case study | 50%50% | 50%50% | 50%50% | |
B8 | Operating profit margin | CompositeTEI case study | 11%11% | 11%11% | 11%11% | |
B9 | Average cost per hour of unplanned downtime | B6*B7*B8/8,760 | $62,785 $62,785 | $62,785 $62,785 | $62,785 $62,785 | |
Bt | Improved availability | B5*B9 | $163,241 $163,241 | $332,761 $332,761 | $496,002 $496,002 | |
Risk adjustment | ↓15% | |||||
Btr | Improved availability (risk-adjusted) | $138,755 $138,755 | $282,847 $282,847 | $421,602 $421,602 | ||
Three-year total: $843,203 $843,203 | Three-year present value: $676,654 $676,654 |
Evidence and data. Interviewees discussed how the automation solution helped their organizations reimagine how they deploy environments on a virtualized IaaS platform. Although the nature of deployments varied as widely as the organizations themselves, interviewees pointed to wide-ranging efficiencies that conferred a multitude of benefits on their respective organizations, including:
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
deploys 0 annually, spending an average of 0 hours per deployment.
Following the initial transition to the VMware Cloud Foundation environment, might increase the number of workloads supported by VMware Cloud Foundation Automation by 20% each year.
With VMware Cloud Foundation Automation, might reduce the labor time to deploy new virtual machines by 50%, recapturing 0 labor hours in Year 1, 0 in Year 2, and 0 in Year 3. might also amplify its capacity to deploy additional machines by 60%.
Risks. Organizations may experience results that differ from those presented in the financial model due to:
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 $436,000.
For , this benefit might have a three-year, risk-adjusted total PV of .
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
---|---|---|---|---|---|
C1 | Total number of new virtual machines deployments in the prior environment | CompositeComposite | 3,0003,000 | 3,0003,000 | 3,0003,000 |
C2 | Average hours to deploy new virtual machines in the prior environment | InterviewsInterviews | 2.52.5 | 2.52.5 | 2.52.5 |
C3 | Reduction in time to deploy new virtual machines to VMware Cloud Foundation Automation | Interviews | 50%50% | 50%50% | 50%50% |
C4 | Percentage of workloads automated with VMware Cloud Foundation Automation | B3 | 20%20% | 40%40% | 60%60% |
C5 | Total recaptured labor hours | C1*C2*C3*C4 | 750750 | 1,5001,500 | 2,2502,250 |
C6 | Fully burdened hourly salary for a systems admin | CompositeTEI case study | $61 $61 | $61 $61 | $61 $61 |
C7 | Subtotal: Deployment efficiencies | C5*C6 | $45,750 $45,750 | $91,500 $91,500 | $137,250 $137,250 |
C8 | Amplified deployment capacity with VMware Cloud Foundation Automation | Interviews | 60%60% | 60%60% | 60%60% |
C9 | Total additional VMs deployed via amplified deployment capacity with VMware Cloud Foundation Automation | C1*C4*C8 | 360360 | 720720 | 1,0801,080 |
C10 | Subtotal: Deployment optimizations | C2*C6*C9 | $54,900 $54,900 | $109,800 $109,800 | $164,700 $164,700 |
Ct | Optimized deployment agility | C7+C10 | $100,650 $100,650 | $201,300 $201,300 | $301,950 $301,950 |
Risk adjustment | ↓10% | ||||
Ctr | Optimized deployment agility (risk-adjusted) | $90,585 $90,585 | $181,170 $181,170 | $271,755 $271,755 | |
Three-year total: $543,510 $543,510 | Three-year present value: $436,251 $436,251 |
Evidence and data. Interviewees pointed out how VMware Cloud Foundation Automation’s preceding benefits further cascaded throughout their organizations by both avoiding downtime for end users in general, as well as improving productivity and time to value for costly developer resources. In particular, interviewees shared how VMware Cloud Foundation Automation:
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
’s 0 FTEs might have a 5% chance of downtime during an outage.
Following the initial transition to the VMware Cloud Foundation environment, might increase the number of workloads supported by VMware Cloud Foundation Automation by 20% each year.
might avoid 0 hours of employee downtime in Year 1, 0 in Year 2, and 0 in Year 3.
Risks. Organizations may experience results that differ from those presented in the financial model due to:
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 $501,000.
For , this benefit might have a three-year, risk-adjusted total PV of .
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
---|---|---|---|---|---|
D1 | Total FTEs | CompositeComposite | 20,00020,000 | 20,00020,000 | 20,00020,000 |
D2 | Avoided hours of unplanned downtime with VMware Cloud Foundation Automation | B5 | 2.62.6 | 5.35.3 | 7.97.9 |
D3 | Percentage of FTEs impacted during unplanned downtime | CompositeTEI case study | 5%5% | 5%5% | 5%5% |
D4 | Productivity recapture | TEI standard | 50%50% | 50%50% | 50%50% |
D5 | Total avoided hours of unplanned downtime with VMware Cloud Foundation Automation | D1*D2*D3*D4 | 1,3001,300 | 2,6502,650 | 3,9503,950 |
D6 | Fully burdened hourly salary for an end user | Bureau of Labor Statistics | $44 $44 | $44 $44 | $44 $44 |
D7 | Subtotal: Reduced end-user downtime from improved availability with VMware Cloud Foundation Automation | D5*D6 | $57,200 $57,200 | $116,600 $116,600 | $173,800 $173,800 |
D8 | Total VMs deployed in the VMware Cloud Foundation Automation environment for developer use | (C1*(1+C8))/2 | 2,4002,400 | 2,4002,400 | 2,4002,400 |
D9 | Reduced hours to fulfill provisioning request with VMware Cloud Foundation Automation | Interviews | 1616 | 1616 | 1616 |
D10 | Percentage of time wasted while waiting | CompositeTEI case study | 10%10% | 10%10% | 10%10% |
D11 | Productivity recapture rate | CompositeTEI case study | 50%50% | 50%50% | 50%50% |
D12 | Fully burdened hourly salary for a developer | CompositeTEI case study | $65 $65 | $65 $65 | $65 $65 |
D13 | Subtotal: Reduced developer downtime from self-service infrastructure with VMware Cloud Foundation Automation | D8*D9*D10*D11*D12 | $124,800 $124,800 | $124,800 $124,800 | $124,800 $124,800 |
Dt | Improved organizationwide productivity | D7+D13 | $182,000 $182,000 | $241,400 $241,400 | $298,600 $298,600 |
Risk adjustment | ↓15% | ||||
Dtr | Improved organizationwide productivity (risk-adjusted) | $154,700 $154,700 | $205,190 $205,190 | $253,810 $253,810 | |
Three-year total: $613,700 $613,700 | Three-year present value: $500,906 $500,906 |
Evidence and data. Compared to their prior environments and to their VMware Cloud Foundation environments without VMware Cloud Foundation Automation, interviewees noted that the preceding benefits eased pressure on the IT support function. Optimizing technology management, improving availability, and optimizing for deployment agility led to numerous downstream improvements and allowed their organizations to streamline their IT support function in terms of infrastructure, networking, and end-user experience.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
fields 0 infrastructure-related tickets per month.
Following initial transition to the VMware Cloud Foundation environment, might increase the number of workloads supported by VMware Cloud Foundation Automation by 20% each year.
might avoid 60% of infrastructure-related tickets, totaling 0 tickets in Year 1, 0 in Year 2, and 0 in Year 3. might also avoid 75% of the effort required to vet deployment requests.
Risks. Organizations may experience results that differ from those presented in the financial model due to:
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 $53,000.
For this benefit might have a three-year, risk-adjusted total PV of .
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
---|---|---|---|---|---|
E1 | Total annual infrastructure-related help desk tickets in the prior environment | CompositeComposite | 4,8004,800 | 4,8004,800 | 4,8004,800 |
E2 | Percentage of workloads automated with VMware Cloud Foundation Automation | B3 | 20%20% | 40%40% | 60%60% |
E3 | Percentage of tickets avoided through self-service infrastructure with VMware Cloud Foundation Automation | Interviews | 60%60% | 60%60% | 60%60% |
E4 | Annual tickets deflected by VMware Cloud Foundation Automation | E1*E2*E3 | 576576 | 1,1521,152 | 1,7281,728 |
E5 | Average help desk cost per ticket | CompositeTEI case study | $15 $15 | $15 $15 | $15 $15 |
E6 | Subtotal: Reduced help desk ticket volumes from VMware Cloud Foundation Automation self service | E4*E5 | $8,640 $8,640 | $17,280 $17,280 | $25,920 $25,920 |
E7 | Annual system admin hours for vetting deployment request tickets in prior environment | InterviewsScaled for | 780780 | 780780 | 780780 |
E8 | Time savings for vetting deployment requests with VMware Cloud Foundation Automation | Interviews | 75.0%75.0% | 75.0%75.0% | 75.0%75.0% |
E9 | Fully burdened hourly salary for a systems admin | C6 | $61 $61 | $61 $61 | $61 $61 |
E10 | Productivity recapture rate | TEI standard | 50%50% | 50%50% | 50%50% |
E11 | Subtotal: Reduced time to vet deployment request tickets with VMware Cloud Foundation Automation self service | E2*E7*E8*E9*E10 | $3,569 $3,569 | $7,137 $7,137 | |
Et | Optimized infrastructure support | E6+E11 | $12,209 $12,209 | $24,417 $24,417 | $36,626 $36,626 |
Risk adjustment | ↓10% | ||||
Etr | Optimized infrastructure support (risk-adjusted) | $10,988 $10,988 | $21,975 $21,975 | $32,963 $32,963 | |
Three-year total: $65,927 $65,927 | Three-year present value: $52,916 $52,916 |
Interviewees mentioned the following additional benefits that their organizations experienced but were not quantified for this study:
The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement VMware Cloud Foundation Automation and later realize additional uses and business opportunities, including:
Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Appendix A).
Evidence and data. VMware Cloud Foundation Automation is an integrated component of VMware Cloud Foundation, VMware's private cloud solution. Interviewees cited the following cost considerations relative to a value assessment of their VMware Cloud Foundation Automation environments:
Risks. Organizations may experience results that differ from those presented in the financial model due to:
Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists vendors in communicating the value proposition of their products and services to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of IT initiatives to both senior management and other key business stakeholders.
Benefits represent the value delivered to the business by the product. The TEI methodology places equal weight on the measure of benefits, allowing for a full examination of the effect of the technology on the entire organization.
Flexibility represents the strategic value that can be obtained for some future additional investment building on top of the initial investment already made. Having the ability to capture that benefit has a PV that can be estimated.
Risks measure the uncertainty of benefit estimates given: 1) the likelihood that estimates will meet original projections and 2) the likelihood that estimates will be tracked over time. TEI risk factors are based on “triangular distribution.”
“The Total Economic Impact of VMware Cloud Foundation,” a commissioned study conducted by Forrester Consulting on behalf of Broadcom, publication forthcoming.
“The Total Economic Impact of VMware ANS,” a commissioned study conducted by Forrester Consulting on behalf of Broadcom, publication forthcoming .
1 Source: The State Of Infrastructure Automation, 2023, Forrester Research, Inc., July 31, 2023.
2 Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists vendors in communicating the value proposition of their products and services to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of IT initiatives to both senior management and other key business stakeholders.
Cookie Preferences
Accept Cookies
A cookie is a small text file that a website saves on your computer or mobile
device when you visit the site. It enables the website to remember your actions (data inputs, website
navigation), so you don’t have to re-enter data when you come back to the site or browse from one page to
another.
Behavioral information collected by our web analytics vendor is used to analyze
data pertaining to visitor trends, plan website enhancements, and measure overall website effectiveness. We
may also use cookies or web beacons to help us offer you products, programs, or services that may be of
interest to you and to deliver relevant advertising. We may use third-party advertising companies to help
tailor website content to users or to serve ads on our behalf. These companies may also employ cookies and
web beacons to measure advertising effectiveness.
Please accept cookies and the collection of behavioral information to receive
full functionality and enhance your experience. If you decline cookies, some features of the website may not
function normally.
Please see our
Privacy Policy for more information.
https://mainstayadvisor.com/go/mainstay/gdpr/policy.html