Post on 22-Jun-2020
brought to you by
ISSUE PAPER
HOW TO KEEP UCC COSTS DOWN AS COMPLEXITY GROWS Compare vendors and assess your Total Cost of Operation
By Robin Gareiss President, Nemertes Research
©NemertesResearch2016!www.nemertes.com!888-241-2685!DN5348
1
HowtoKeepUCCCostsDownasComplexityGrowsNowisthetimetocomparevendorsandassessyourTotalCostofOperation
ByRobinGareissPresident,NemertesResearch
Compass Direction Points:
± Mostdeploymentsremainon-premises,butmovementistowardcloudandhybridIPT/UCCdeployments.Researchshows52.4%ofIPtelephonyand48.1%ofUCCdeploymentsareon-premises.Anevaluationofallarchitecturesiscrucialtogainthemostbenefitfromyoursolution.
± Conductathoroughcostassessment.Totalcostofoperationhasincreasedinthepastyear,soit’stimetore-examinewhatyou’respending.
± ShoreTelTCOislowest.InNemertes’2016TCOresearch,ShoreTel
customersspendtheleastontheirIPTandUCCsolutions.
Q316
©NemertesResearch2016!www.nemertes.com!888-241-2685!DN5348
2
Executive Summary
WiththegrowingadoptionandcomplexityofUnifiedCommunicationsandCollaboration,ITleadersmustconductathoroughassessmentofarchitecture,providers,featuresandoperationalcosts.Evaluatingthosecostsisnotastraightforwardinitiative,notonlybecauseofmulti-vendorenvironments,butalsobecausecompaniesareshiftingarchitecturestohybridorcloud.Nemerteshasconductedresearchtoanalyzereal-worldcostdata,includingcapital,implementation,andoperationalcosts.Theresearchhelpscompaniescomparehowoverallcostschangebasedontheproviderselected.Mostimportant,itincludesongoingoperationalcosts,whicharehardtofactorintoabusinesscaseuntiltheITstaffactuallymustmanagetheproviderinquestion.ThispaperdocumentsthosecostsandprovidesthethreedifferentsampleoutputsfromacostmodeldevelopedbyNemertes,populatedwiththeresearchdata.Weenteredinthecostmodelactualdatafromcompanieswith100employees,750employees,and1,500employees.Ineachofthesecases,whethercloudoron-premises,ShoreTelistheleastexpensivesolutionoverafive-yearassessment.
The Issue
IPtelephonyandUCCtechnologiesarerisingtothetopofmanyITprioritylists,drivenbytheneedtoimprovecommunicationsinternallyandtobolstercustomerexperience.What’smore,thenumberofapplicationsincludedaspartofUCCaregrowing,asaretheintegrationrequirementsbetweencommunicationsandenterpriseapps.GiventheexpandingscopeofUCC,itisnotsurprisingthatcoststoimplementandoperatetheappsareincreasing.Asaresult,it’simperativeforITleaderstobuildsolidbusinesscases,examiningtotalcostofoperationsamongproviderstoensurethebestpossibledecision.Forexample,initialacquisitioncosts(licensingandassociatedcapital)maybeveryappealing,buttheunknownimplementationandongoingoperationalcostscanrapidlyeraseanycostbenefitassociatedwiththoselowerinitialcosts.Forexample,initialacquisitioncostsforMicrosoftoftenarelowerthanAvaya,Cisco,orShoreTel.ButongoingoperationalcostsarelowerwithShoreTelthananyoftheproviders,makingthetotalcostofoperationsovertimemuchless.
©NemertesResearch2016!www.nemertes.com!888-241-2685!DN5348
3
TotalCostof“Ownership”isn’tasrelevantasitoncewas,particularlywithemergingcloudandhybridarchitectures.Now,weanalyzeTotalCostof“Operations,”whichbetterreflectstheimportanceofongoingoperationalcosts.Uncoveringthosetrue,real-worldoperationalcostscanbeachallenge,ifnotimpossiblewithoutresearchorsubstantialexperienceatpreviousorganizations.For11years,Nemerteshasconductedresearchtosubstantiatethecostsbyinterviewingandsurveyinghundredsofcompanies.Thisyear’sstudyincludesinputfromabout300companiesthatareusingvariouscombinationsofIPtelephonyandUCC,architectedinthecloud,on-premises,orboth.Thisreportprovidesinsightintotheoveralladoptiontrends,themovementtocloudandhybridenvironments,andallassociatedcosts.Italsoprovidesexamplesofcostcomparisonsbetweenproviders.ThoughIPtelephonyoftenisapartofUCC,weseparatedthetwoforthisstudy.IPtelephonysimplyincludesvoicecommunications,whileUCCincludesinstantmessaging,presence,audio/video/webconferencing,andunifiedmessaging—typicallyinanintegratedsuite.
IPT/UCC Adoption Trends
On-premisesarchitecturescontinuetobethemostprevalentacrossbothIPtelephonyandUCC,butthat’schanging.Asofthe2016research,almosthalfoforganizationshaveadoptedsomeIPtelephonycloudservices,comparedto29%in2015.ForUCC,morethanhalfofcompanieshaveadoptedcloudservices,comparedto26%in2015.MostorganizationsalsousemorethanoneproviderforIPtelephonyandUCcapabilities.DuringdiscussionswithITleaders,themajoritysaytheywouldliketoconsolidateonasinglevendorforallapps,buttherealityisthatitisnothappeningwiththeexceptionofsmallandthelow-endofmidsizecompanies.Amongcompanieswithfewerthan1,000endpoints,41.1%usethesameproviderforIPtelephonyandUCsuite.It’sworthnotingthatanother11.3%onlyhaveIPtelephonyanduseasingleprovider,comparedtoonly28.6%ofthosewith1,000ormoreendpoints.
Move to Hybrid, Cloud
Weexpectthemarkettosegmentinafewwayswhenitcomestoarchitecturedecisions.Thedriverstowardthosedecisions—aswellasthebenefitsorfallout—varybycompany.Figure1describesthearchitecture“camps”thatarepossible.Single-vendor,single-architectureenvironmentstypicallyarethemostefficienttomanage.ITstaffsonlyneedexpertiseinoneprovider’stechnology.Whenon-prem,theyonlymanageoneproviderandonlyhavetotrainemployeestouseoneuserinterface.Wheninthecloud,theyonlymanageonepartnerandfocusonuseradoptionofoneservice.
©NemertesResearch2016!www.nemertes.com!888-241-2685!DN5348
4
Inmovingtoahybriddeployment,ITleadersshouldpayparticularlycloseattentiontointegrationoffeaturesetsandcallcontrol.Lookforaproviderthatoffersacommonplatformforitscloudoron-premisessolutions,ultimatelydeliveringthesameuserexperienceregardlessoftheplatform.FromanITmanagementstandpoint,thismeanscallcontrol,features,anduserinterfacearebasedonthesameunderlyingtechnology.AlthoughITstaffsstillmustmanagethetechnologyandthepartnerrelationship,theintegrationchallengeswithacommonplatformaregreatlyminimized.Architecture Providers TypicalCompany Benefit/Concern
Allon-premises
Single Small Singlesystemiseasytomanage/Responsibleforday-to-daymanagementwhenitcouldbeoffloadedtocloudprovider
Multiple Large,oftenbecauseofmergers
Best-of-breedfeatures;depreciatewhat’sinstalledandavoidcostofupgradetosinglevendor/Requiresknowledgeofmultiplesystems,increasingcoststomanageandintegrate
Allcloud
Single Allsizes,heavilyweightedtowardsmallandmidsize
Consistentservicesoeasyforusertraining/Lossofsomecontrol,potentiallymorestafftomanageservice
Multiple Fewusetoday,butwillapplytoanysizecompanythatneedsspecificfeature
Willenablebest-of-breedphilosophytoaddcapabilityprimarycloudproviderdoesnotoffer/Cloud-to-cloudintegrationwillbeachallenge
Hybrid
Single Primarilysmallandmidsize
Gradualmigrationfromon-premtocloud,usingsingleprovider(andpotentiallysameplatform)easesmanagement,orplannedhybridarchitecturemoreseamlesswithsinglevendor/Easier,lesscostlytoadopteithercloudoron-prem
Multiple Large,usuallyinthemidstofmigration
Fewbenefitstothisarchitecture;usuallynottheendgoal/Significantchallengestomanagingandintegratingmultiplevendorsacrosson-premandcloud
Figure1:ArchitecturalDifferences
©NemertesResearch2016!www.nemertes.com!888-241-2685!DN5348
5
A Look at Costs
Asstated,NemerteshasgathereddetailedcostsforIPtelephonyandUCCforseveralyears.Wegatherdataoncapital,implementation,andoperationalcosts,eachofwhichincludessub-components.(PleaseseeAddendumfordetailsonthecosts.)Costshavebeendroppingsince2011,butinthepastyear,on-premisescostsgenerallyhaveincreasedamongallprovidersinbothIPtelephonyandUCC.(PleaseseeFigure2.)
Figure2:On-PremisesCostChangesCapitalCapitalcostsareincreasingslightlywithIPtelephonyanddecreasingwithUCC.InIPtelephony,costsincreased7%yearoveryear,drivenprimarilybycompaniesbuyingnewdevices,suchasheadsetsandvideophones,alongwithcapital,suchasSBCs.WedonotfindprovidersincreasingtheirpricesforIPtelephonycapital.ForUCC,capitalcostsdroppedyearoveryearby25%.Thedecreaseisnotsurprising,giventhecompetitivelandscapeandprovidersbattlingforcustomeracquisition.ImplementationYear-over-yearimplementationcostsnearlytripledwithforIPtelephony,andtheyroseby60%forUCC.Inbothcases,theincreaseisdrivenbyadditionaltimespentplanningandengineering.Additionally,companiesaredevotingmoreresourcesduringtheimplementationphasetointegrationofIPtelephonywithadditionalfunctions(contactcenter,mobileenablement,collaborationapps),andintegrationofUCwithenterpriseapps(ERP,CRM,analytics).Andinbothcases,companiesareusingmorethird-partyprofessionalservicesandsystemsintegrators,whichaddtoimplementationcosts.OperationalForbothIPtelephonyandUCC,ongoingoperationalcostsareincreasing(32%and21%,respectively).ITstaffsarenotgrowing,whiledemandsfrombusinessunitsare.Therefore,moreareusingmanagedservices.Inaddition,theyarespendingmoreontrainingoftheITstafftopreparefornewintegrationsandservicedeliveryarchitecturechanges.Andfinally,equipmentmaintenancecostsareincreasing.
$275
$188
$140
$102 $127
$204
$577
$206 $250
$-
$100
$200
$300
$400
$500
$600
$700
2014 2015 2016
UC Costs, 2014-2016 Capital Implementation Operational
$540 $500
$341 $364
$61 $82 $108
$310
$704
$353
$275
$366
$-
$100
$200
$300
$400
$500
$600
$700
$800
2013 2014 2015 2016
IPT Cost Changes 2013-2016
Capital Implementation Operational
©NemertesResearch2016!www.nemertes.com!888-241-2685!DN5348
6
HistoricalCostsInevaluatingon-premisescostsfromrecentyears,ShoreTelmostfrequentlyhadthelowestandMicrosoftthehighestfirst-yearcosts—acombinationofcapital,implementation,andthefirstyearofoperationalcosts,notedabove.(PleaseseeFigure3.)
Figure3:IPTFirst-YearCosts,AllSizes
Figure4:IPTFirst-YearCosts,RolloutsWith<1,000Endpoints
Whenevaluatingfirst-yearcostsforspecificsizesofrollouts,moreprovidersemerge.Forexample,amongcompanieswithfewerthan1,000endpoints,ShoreTel,again,has
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
2013 2014 2015 2016
IP Telephony First-Year Costs, All Sizes of Rollouts
ShoreTel Cisco Avaya Microsoft OVERALL MEDIAN
$882
$670
$870
$1,379
$1,008
$1,176
$1,017
$995
$1,322
$1,670
$1,267 $1,383
$1,234
$951
$1,480 $1,408
$785
$1,519
$1,872
$999
$1,520
$500
$700
$900
$1,100
$1,300
$1,500
$1,700
$1,900
$2,100
2014 2015 2016
IP Telephony First-Year Costs (<1,000 Endpoints)
ShoreTel Alcatel Lucent Avaya Microsoft Mitel NEC Cisco
©NemertesResearch2016!www.nemertes.com!888-241-2685!DN5348
7
thelowestfirst-yearcostsperendpoint,andeitherNECorCiscohasthehighestperendpoint.ThoughShoreTel’scapitalcostsaregreaterthanmedian,itsimplementationandoperationalcostsarethelowestofallproviders.NEC’shighimplementationcostsandCisco’shighoperationalcostscontributedmosttotheirhighestcosts.(PleaseseeFigure4.)
Cost Model Tool
NemerteshastakenthedatacompiledinitsUCTCOresearch,andpopulateditinacostmodeltool.The2016projectincludedinterviewswith25ITleaders,andpre-qualified,electronicsurveysofanother274companieswithmorethan100employees.Toaugmenttheresearchwithadditionaldatafromsmallercompanies,weconductedanothersurveyfocusingon341companieswithfewerthan100employees.Weanalyzedthedatabysizeoforganizationandbyprovider,normalizingcloudcostsbynumberoflicensesandon-premisescostsbynumberofendpoints.Wethenpopulatedthetoolwithdefaultdatafromourresearch,alongwithdataentrythatITprofessionalscanentertocustomizetheoutputtotheirownuniqueconfigurations.
Cost Model Examples
Weevaluatedthreescenarios:Companieswith100,750,and1,500employees.Ineachfigurethatfollows,readerscanseeactualoutputfromthetool,populatedwithour2016data.Ineachscenario,ShoreTeldemonstratesthegreatestcostsavingsandlowestoverallcostoverafive-yearperiod,whencomparedtotheindustryaverageandvariousprovidersforbothon-premisesandcloud.(Thetoolcanruncalculationsforseveralvendors;wesimplyselectedvendorsrandomlyforillustrativepurposes.)Weassumeeachcompanystartswithanon-premisesdeployment(andassociatednumbersforstaffing,ITbudget,equipmentmaintenance,managedservices,etc.)ofwidelyusedvendors–Cisco(100-employeeexample),Avaya(750-employeeexample),andMicrosoft(1,500-employeeexample).Wethencomparewithaselectionofproviderstheongoingoperationalcostsofrunningthoseenvironmentswithacompletechangetoanewon-premisesrolloutorcloudservice.Forcloudservices,wefactorininitialimplementationoftheservice,monthlysubscription,andongoingoperationalcostsforstaffingandmanagedservices.Thecloudanalysisincludesanoptiontorenthandsets.Inthescenariosweran,weoptedtonotincludehandsetsintheanalysis(eitherrentedorpurchases)becauseactual
©NemertesResearch2016!www.nemertes.com!888-241-2685!DN5348
8
pricesafternegotiationsareconsistentforlike-for-likehandsets,regardlessofvendors.Notethatourresearchgenerallyshowsstaffingactuallygoesupduringatleastthefirsttwoyearsofaclouddeployment,socostsavingsdonotalwayshappen.Inevaluatingthecloudscenariosfor750and1,500employees,thelackofcostsavingsisdrivenbythestaffingoperationalcoststomanagethesolutionandthepartner,theinitialimplementationcosts,andthemonthlysubscriptioncosts.Thereal-worldcostsforeachofthosecomponentsvariesbyproviderandisreflectedonthecostmodeloutput.Theon-premiseschartsillustrateannualizedsavingsovertheexistingsolution.Wecalculatethecostoverthefive-yearterm,andannualizeittoshowtherelativecostsavingsamongvendors.Wethenshowwhattherelativeannualcostsareforeachsolution—thefirstyearbeingthehighestbecauseitincorporatescapitalandimplementationcosts.Inscenarioswherecompaniesspreadoutthedeploymentbeyondthefirstyear,thecapital,implementation,andadditionaloperationalcostswouldfollowfromtheyearofinstallation.Thecloudchartsalsoshowannualizedcostsavingsovertheexistingsolution.Asourresearchdemonstrates,costsdropforsmallrolloutsmovingtothecloud.However,astherolloutsizesincrease,thesavingsovertheexistingsolutionsarenotascommon.InShoreTel’scase,thesavingsaresizable,insomecases.WefoundthatShoreTel’simplementationcostsareaboutthesameormorethancompetitors,butresearchparticipantswhousedShoreTeldevotedfewerITstaffmemberstomanagingthesolutionandrelationshipthandidthoseusingcompetitors.Additionally,ShoreTel’sactualsubscriptioncostswerelowerthancompetitors.Sooverafive-yearperiod,thesavingsaddsup.ShoreTel’soperationalcostshavebeenthelowestornearlythelowestsinceNemertesstartedtheresearch11yearsago.
©NemertesResearch2016!www.nemertes.com!888-241-2685!DN5348
9
Scenario1:100-EmployeeFinancial-ServicesFirm,On-Premises
$56,681
$71,296
$52,116
$98,400
5
$491,999 with ShoreTel0.39%
8%
On-Prem Cost Analysis The Nemertes Cost Analysis Tools has calculated the following results for your organization. This section provides an overview of the cost benefits of this technology.
TCO Overview for IP Telephony/UC On-Premises Prepared for: Mary Smith Acme Corp IPT/UC ANALYSIS
Your annual savings with Industry Average:
Your annual IPT/UC savings with Mitel:
Years for cost analysis:
Best 5-year financial gain
Your annual IPT/UC savings with Avaya:
Your annual savings with ShoreTel:
Percentage of annual IT budget savedPercentage of annual revenue saved
$0##
$50,000##
$100,000##
$150,000##
$200,000##
Year#1# Year#2# Year#3# #Year#4## #Year#5##
Annual Costs
#Industry#Average## Mitel# Avaya# ShoreTel#
#$?####
#$20,000##
#$40,000##
#$60,000##
#$80,000##
#$100,000##
#$120,000##
Industry#Average# #Mitel## Avaya# ShoreTel#
Annualized Cost Savings Over Current Solution
©NemertesResearch2016!www.nemertes.com!888-241-2685!DN5348
10
Scenario1a:100-EmployeeFinancial-ServicesFirm,Cloud
$41,079
$38,125
$21,808
$67,916
5
$339,579 with ShoreTel0.27%
5%
TCO Overview for IP Telephony/UC CloudPrepared for: Mary Smith Acme Corp IPT/UC ANALYSIS
Cloud Cost Analysis The Nemertes Cost Analysis Tools has calculated the following results for your organization, comparing costs for your current solution with cloud offerings. This section provides an overview of the cost benefits of this technology.
Your annual savings with 8x8:
Your annual savings with Vonage:
Years for cost analysis:
5-year financial gain
Your annual savings with Mitel:
Your annual savings with ShoreTel:
Percentage of revenue savedPercentage of IT budget saved
!$#!!!!
!$20,000!!
!$40,000!!
!$60,000!!
!$80,000!!
8x8! !Vonage!! Mitel! ShoreTel!
Annualized*Cost*Savings*
!$#!!
!$20,000!!
!$40,000!!
!$60,000!!
!$80,000!!
!$100,000!!
!$120,000!!
Year!1! Year!2! Year!3! !Year!4!! !Year!5!!
Annual*Cost*Comparison*
!8x8!! !Vonage!! !Mitel!! !ShoreTel!!
©NemertesResearch2016!www.nemertes.com!888-241-2685!DN5348
11
Scenario2:750-EmployeeManufacturingCompany,On-Premises
$281,840
$229,158
$207,372
$514,524
5
$2,572,618 with ShoreTel0.30%11%
On-Prem Cost Analysis The Nemertes Cost Analysis Tools has calculated the following results for your organization, comparing costs for your current solution with ShoreTel's new Cloud and On-Site offerings. This section provides an overview of the cost benefits of this technology.
TCO Overview for IP Telephony/UC On-Premises Prepared for: Mary Smith Acme Corp IPT/UC ANALYSIS
Your annual savings with Industry Average:
Your annual IPT/UC savings with Cisco:
Years for cost analysis:
Best 5-year financial gain
Your annual IPT/UC savings with Microsoft:
Your annual savings with ShoreTel:
Percentage of annual IT budget savedPercentage of annual revenue saved
$0##
$200,000##
$400,000##
$600,000##
$800,000##
$1,000,000##
Year#1# Year#2# Year#3# #Year#4## #Year#5##
Annual Costs
#Industry#Average## Cisco# Microso?# ShoreTel#
#$D####
#$100,000##
#$200,000##
#$300,000##
#$400,000##
#$500,000##
#$600,000##
Industry#Average# #Cisco## Microso?# ShoreTel#
Annualized Cost Savings Over Current Solution
©NemertesResearch2016!www.nemertes.com!888-241-2685!DN5348
12
Scenario2a:750-EmployeeManufacturingCompany,Cloud
$32,031
($12,841)
($111,962)
$281,912
5
$1,409,560 with ShoreTel0.17%
6%
Cloud Cost Analysis The Nemertes Cost Analysis Tools has calculated the following results for your organization, comparing costs for your current solution with cloud offerings. This section provides an overview of the cost benefits of this technology.
Your annual savings with 8x8:
Your annual savings with Vonage:
Years for cost analysis:
5-year financial gain
Your annual savings with Mitel:
Your annual savings with ShoreTel:
Percentage of revenue savedPercentage of IT budget saved
TCO Overview for IP Telephony/UC CloudPrepared for: Mary Smith Acme Corp IPT/UC ANALYSIS
!$(200,000)!
!$(100,000)!
!$)!!!!
!$100,000!!
!$200,000!!
!$300,000!!
!$400,000!!
8x8! !Vonage!! Mitel! ShoreTel!
Annualized*Cost*Savings*
!$)!!!$100,000!!!$200,000!!!$300,000!!!$400,000!!!$500,000!!!$600,000!!!$700,000!!!$800,000!!!$900,000!!
Year!1! Year!2! Year!3! !Year!4!! !Year!5!!
Annual*Cost*Comparison*
!8x8!! !Vonage!! !Mitel!! !ShoreTel!!
©NemertesResearch2016!www.nemertes.com!888-241-2685!DN5348
13
Scenario3a:1,500-EmployeeHealthcareCompany,On-Premises
$280,521
$163,154
$293,277
$709,058
5
$3,545,292 with ShoreTel0.24%
9%
Your annual IPT/UC savings with Avaya:
Your annual savings with ShoreTel:
Percentage of annual IT budget savedPercentage of annual revenue saved
Your annual savings with Industry Average:
Your annual IPT/UC savings with Cisco:
Years for cost analysis:
Best 5-year financial gain
On-Prem Cost Analysis The Nemertes Cost Analysis Tools has calculated the following results for your organization. This section provides an overview of the cost benefits of this technology.
TCO Overview for IP Telephony/UC On-Premises Prepared for: Mary Smith Acme Corp IPT/UC ANALYSIS
$0##
$500,000##
$1,000,000##
$1,500,000##
$2,000,000##
$2,500,000##
Year#1# Year#2# Year#3# #Year#4## #Year#5##
Annual Costs
#Industry#Average## Cisco# Avaya# ShoreTel#
#$@#####$100,000###$200,000###$300,000###$400,000###$500,000###$600,000###$700,000###$800,000##
Industry#Average# #Cisco## Avaya# ShoreTel#
Annualized Cost Savings Over Current Solution
©NemertesResearch2016!www.nemertes.com!888-241-2685!DN5348
14
Scenario3b:1,500-EmployeeHealthcareCompany,Cloud
($305,408)
($354,457)
($653,432)
$325,123
5
$1,625,613 with ShoreTel0.11%
4%
TCO Overview for IP Telephony/UC CloudPrepared for: Mary Smith Acme Corp IPT/UC ANALYSIS
Cloud Cost Analysis The Nemertes Cost Analysis Tools has calculated the following results for your organization, comparing costs for your current solution with cloud offerings. This section provides an overview of the cost benefits of this technology.
Your annual savings with 8x8:
Your annual savings with Vonage:
Years for cost analysis:
5-year financial gain
Your annual savings with Mitel:
Your annual savings with ShoreTel:
Percentage of revenue savedPercentage of IT budget saved
!$(800,000)!
!$(600,000)!
!$(400,000)!
!$(200,000)!
!$+!!!!
!$200,000!!
!$400,000!!
8x8! !Vonage!! Mitel! ShoreTel!
Annualized*Cost*Savings*
!$+!!!$200,000!!!$400,000!!!$600,000!!!$800,000!!
!$1,000,000!!!$1,200,000!!!$1,400,000!!!$1,600,000!!!$1,800,000!!
Year!1! Year!2! Year!3! !Year!4!! !Year!5!!
Annual*Cost*Comparison*
!8x8!! !Vonage!! !Mitel!! !ShoreTel!!
©NemertesResearch2016!www.nemertes.com!888-241-2685!DN5348
15
Conclusion and Recommendations
IPtelephonyandUCCdeploymentsareincreasinglybroadandcomplex.MoreappsareincludedintheintegrationforanoverallUnifiedCommunicationsstrategy.AndalthoughITleaderswouldliketocentralizeonasingleproviderandasinglearchitecture,thatdoesnothappenfrequentlyenough.Providersarerapidlyimprovingtheiron-premises,cloud,andhybridsolutions.Inparticular,theyareawarethatmanyorganizationswanthybridarchitectures,eithertemporarilyastheytransitionfromon-premisestocloud,orpermanentlyforvariousbusinessreasons.Selectingaproviderwithacommonarchitectureiscrucialtosuccessintechnology,vendor,andendusermanagement.AlongwithanincreasedfocusonhowUCCsolutionscanmakethecompanymoreeffectiveandproductive,ITleadersmustre-examinecosts.Movingtocloudmaydowondersforagility,butorganizationsoftendonotsavemoney.Soifcost-savingsistheprimarydriver,besuretoevaluateallcostsanddeterminewhichvendorwillachievethatgoal.Regardlessofwhicharchitectureultimatelywins,selectingaproviderwithanaffordableoperationalcostisthemostimportantTCOcomponent(vs.capitalorimplementation).Operationalcostfiguresextendmuchlongerthantheone-timecapitalorimplementationcosts.
©NemertesResearch2016!www.nemertes.com!888-241-2685!DN5348
16
Addendum
Nemertesgatherscostdatainthefollowingareas:Measurement Includes FormulaOn-Prem FormulaCloudCapital PBX,endpoint
devicesandlicenses,servers,otherhardware.Insomecases,bundledlicensesincludecertainUCapps
=(stafftime*loadedhourlyrate)+3rdpartycosts/numberofendpoints
=totalcapitalcosts/numberoflicenses
Implementation Stafftimeandthird-partyconsultantsandintegrators
=(stafftime*loadedhourlyrate)+3rdpartycosts/numberofendpoints
=(stafftime*loadedhourlyrate)+3rdpartycosts/numberoflicense
Operational Stafftime,equipmentmaintenance,3rdpartymanagedservices,trainingandcertification.MonthlyserviceforCloudservices
=((numberofFTEs*averageannualloadedsalary)+(equipmentmaintenance+managedservices+training/certification))/numberofendpoints
=((numberofFTEs*averageannualloadedsalary)+(equipmentmaintenance+managedservices+training/certification))/numberoflicenses
AboutNemertesResearch:NemertesResearchisaresearch-advisoryandstrategic-consultingfirmthatspecializesinanalyzingandquantifyingthebusinessvalueofemergingtechnologies.YoucanlearnmoreaboutNemertesResearchatourWebsite,www.nemertes.com,orcontactusdirectlyatresearch@nemertes.com.