October 26, 2014  
Home About Us Contact Us
 Read terms of use
Login Problems?
 on Becoming a Client

Help for Search
Subscribe to the Computer Economics Report. Free sample issue.
Research Sections
Major Studies
IT Management Advisories
Valuation Data
...and More
Register for free research notification
 
ROI and TCO

Business executives are demanding that IT investments deliverable tangible benefits and incur predictable costs. This research section presents current adoption rates along with return on investment (ROI) and total cost of ownership (TCO) studies for a various types of IT investments. Reports in this section are supported by Computer Economics original research on the adoption rates as well as the ROI and TCO characteristics of various types of investments. These reports also include practical recommendations to ensure that benefits are realized.

The following highlights some of our recent popular research in this section.


Desktop Virtualization Adoption Trends and Customer Experience
Desktop virtualization adoption continues to rise. This study provides an overview of key concepts and vendors in this space. We then examine desktop virtualization adoption and investment trends, providing data on how many organizations have the technology in place, how many are in the process of implementing it, and how many are expanding implementations. We present worldwide adoption and investment rates, adoption by organization size, and adoption in North America over time. We also look at the return on investment experience and total cost of ownership experience of adopters and report on how much they are budgeting per user for new and follow-on investments in virtual desktop solutions. (18 pp., 10 fig.)
[Research Byte]

ERP Adoption Trends and Customer Experience
ERP systems have become the platform for integration of data, information, and applications in the well-managed enterprise today. This study helps IT executives understand how aggressively their peers are investing in ERP and the risks and rewards presented by those investments. We report worldwide adoption and investment rates by sector, organization size, and geography. We also measure customer experience in terms of the success rates for return on investment (ROI) and total cost of ownership (TCO). Finally, we assess ERP investment levels for new implementations and improvements to existing systems. We wrap up with our recommendations for improving the ROI of ERP installations. (15 pp., 11 fig.)
[Research Byte]

CRM Adoption Trends and Customer Experience
This study analyzes the market forces that are driving the increased popularity of CRM systems today. We show the three-year trend in CRM adoption and investment rates, with a breakdown by sector, organization size, and geography. We also measure customer experience in terms of the success rates for return on investment (ROI) and total cost of ownership (TCO). Finally, we assess CRM investment levels for new implementations and improvements to existing systems. We wrap up with our recommendations for improving the ROI of CRM. (17pp., 12 fig.)
[Research Byte]

Application Development Outsourcing Trends and Customer Experience
The frequency of application development outsourcing has leveled off after a post-recession rise, and the customer experience remains poor. In light of current trends, this study is designed to help IT executives compare their application development outsourcing strategy with other IT organizations. The study uses three metrics to measure outsourcing activity: it determines how many organizations outsource application development (frequency), how much of the workload is typically outsourced (level), and the change in the amount of work being outsourced (trend). We also measure the cost and service experience of companies that outsource this function, and determine how outsourcing activity and experience vary by organization size and sector. (16 pp., 8 fig.)
[Research Byte]

SaaS Adoption Trends and Customer ExperienceSaaS Adoption Trends and Customer Experience
This study quantifies the current investment trends for software-as-a-service and identifies the benefits driving companies to expand their SaaS implementations. It also identifies which of a wide variety of SaaS applications are driving adoption, and assesses adoption and investment trends by organization size and geography. Finally, we examine the highly positive ROI and TCO experience of adopters and conclude with practical advice for those considering deployment of SaaS solutions.  (26 pp., 11 figs.)
[Research Bytes]

Supply Chain Management (SCM) Adoption and Customer Experience
Competitive pressures, globalization and increasingly complex offshore manufacturing relationships are spurring organizations to expand their supply chain management (SCM) systems, which encompass a wide variety of technologies and capabilities. This report quantifies the current adoption and investment trends for supply chain management systems as well as the benefits that are driving companies to expand their SCM implementations. We assess these trends by organization size, sector and geography. We look at the ROI and TCO experience of those that have adopted SCM along with current investment per SCM user. We conclude with practical advice for those considering investment in SCM technology. (27 pp., 12 figs.)
[Research Byte]


 ITIL Adoption and Best Practices
Providing excellent IT service management to help a business achieve its strategic targets is a much debated but seldom achieved goal. The Information Technology Infrastructure Library (ITIL) is perhaps the most widely accepted framework to accomplish this elusive goal. This study begins with a brief explanation of ITIL's history and current framework for IT service management. We next study ITIL adoption and practice levels in North America, examining levels of adoption by organization size and sector. The study concludes with best-practice suggestions for successful ITIL implementations. (10pp., 5 figs.)
[Research Byte]

Unified Communications Adoption and Experience
This study shows that early adopters are achieving positive results with unified communications, both in return on investment (ROI) and total cost of ownership (TCO). Risk appears low, due to predictable costs. While this technology is still early in its adoption cycle, our research points to rising interest. This article assesses the growth in unified communications by analyzing current adoption and investment activity and provides a view of the ROI and TCO experienced by adopters. We also examine adoption and investment rates by organization size and sector. (13 pp., 7 figs.)
[Research Byte]

Mobile Business Application Adoption and Economic Experience
This study examines adoption and investment trends for mobile business applications, providing data about how many organizations have mobile apps in place, how many are considering such investment, how many are in the implementation stage, and how many are expanding implementations. To give additional insight, we look at the economic experience of those that have implemented mobile apps: we examine return-on-investment experience and balance the potential ROI against the risks, measured in terms of the percentage of organizations that exceed budgets for total cost of ownership. (12 pp., 7 figs.)
[Research Byte]

Legacy System Renewal Adoption, ROI, and TCO
The decision whether to renew or replace legacy applications is an economic one that many IT managers are wrestling with as organizations seek to exploit Internet-enabled business processes and mobile applications. In this study, we assess current adoption and investment rates for legacy system renewal projects based on our annual survey of 200 IT organizations. Next, to determine risks associated with renewal projects we look at the return on investment (ROI) and total cost of ownership (TCO) experiences of organizations that have undertaken such projects. Finally, we examine trends by organization size and conclude with a summation of best practices. (12 pp., 7 figs.)
[Research Byte]

Predictive Analytics ROI and TCO Experience
Business intelligence (BI) solutions are moving beyond monitoring business activity to making predictions about customers, products, and markets. The ultimate objective is to make predictions in real-time so decisions can be automated to increase customer value, reduce fraud, improve operations, or achieve other purposes. This study examines adoption trends for predictive analytics, providing data on how many organizations have the technology in place, how many are implementing it, and how many are expanding implementations. We examine return on investment (ROI) experience, and total cost of ownership (TCO) risk, measured by the percentage of organizations that exceed TCO budgets. We conclude with recommendations on implementing the technology. (13 pp., 7 figs.)
[Research Byte]

Windows 7 Adoption and ROI/TCO Experience
Corporate America appears to be eagerly embracing Microsoft's Windows 7 operating system, a stark and dramatic contrast to the reticent approach shown to its Vista predecessor. This study examines the Windows 7 adoption trend, providing data on how many organizations have the technology in place, how many are implementing it, and how many are expanding implementations. To give additional insight, we look at the economic experience of those that have adopted Windows 7: We examine return on investment (ROI) experience in terms of the percentage of organizations that expect positive and break-even ROI within a two-year period. We also balance the potential ROI against the risks, measured in terms of the percentage of organizations that exceed budgets for total cost of ownership (TCO). (14 pp., 8 figs.)
[Research Byte]

VoIP Adoption, ROI, and TCO Trends
Investment in Voice over IP (VoIP) is widespread and growing, although some organizations are having difficulty precisely estimating their total cost-of-ownership. This study examines VoIP adoption trends, providing data on how many organizations have the technology in place, how many are in the process of implementing it, and how many are expanding implementations. To give additional insight, we look at the economic experience of those that have adopted the technology. We examine return on investment (ROI) experience in terms of the percentage of organizations that report positive and break-even ROI within a two-year period. We also balance the potential ROI against the risks, measured in terms of the percentage of organizations that exceed budgets for total cost of ownership (TCO). (16 pp., 10 figs.)
[Research Byte]

Social Media Adoption Trends
Social media effectively shifts the one-to-many model of traditional publishing and broadcasting to a many-to-many model that fosters and sustains dialogue. Today many IT managers are asking: What does this mean for the enterprise? This study examines how many companies are leveraging social media and what their experiences have been thus far. We provide data on adoption trends, ROI experience, and TCO experience. We also disclose how organization size and sector influence adoption and economic experience with social networking. We conclude with our viewpoint on the potential benefits of enterprise social media. (14 pp., 8 figs.)
[Research Byte]

Storage Virtualization Adoption Trend and Economic Experience
Organizations are having a highly positive economic experience with storage virtualization, nearly as positive as with server virtualization. Nevertheless, adoption rates are moderate and nearly one-third of organizations are still at the researching stage. This study first examines adoption trends, providing information on how many organizations have storage virtualization in place, how many are in the process of implementing it, and how many are expanding existing implementations. We also look at the economic experience of those that have adopted virtualized storage. We examine ROI as the percentage of organizations that achieve positive or break-even ROI within a two-year period. We also balance the potential ROI against the risks, measured in terms of the percentage that exceed budgets for total cost of ownership. (14 pp., 9 figs.)
[Executive Summary]

Adoption Rising for Service Desk Self-Support Tools
Service desk (help desk) managers are under pressure to cut budgets. Although outsourcing is a viable approach to reducing service desk costs, a more strategic approach is to deploy self-support tools to allow users to service their own routine needs, reserving the use of help desk personnel for activities that more truly require their intervention. In this study, we examine trends in the adoption of these self-support tools. We look at adoption trends for the composite sample, by organization size, and by industry sector. We also assess the ROI experience of firms that have adopted these technologies, as well as the risk as measured by the percentage of organizations that exceed budgeted amounts for total cost of ownership. (10 pp., 6 figs.)
[Executive Summary]

Green IT Taking Root Despite Uncertain Payback
The term green IT most frequently refers to initiatives to reduce IT energy consumption but can also entail recycling, proper disposal of toxic materials, and even telecommuting. Although the adoption of green IT is on a sharp upward curve, the economic rationale for these investments is unclear. This study first looks at adoption trends, which provide insight into how many organizations have green IT initiatives, how many are in the process of implemention, and how quickly such environmentally-friendly investments are likely to increase over the next year. We then examine the economic experience of those that already have made such investments by examining the percentage of organizations that report positive and break-even ROI within a two-year period and the percentage that exceed budgets for total cost of ownership. (9 pp., 7 figs.)
[Executive Summary]

Adoption of IT Asset Management Reaching Maturity
IT asset management (ITAM) systems improve the tracking of location, configuration, and identity of computer assets and related data, while reducing the effort required to collect and maintain this information. This study provides an overview of ITAM systems adoption and economic experience. We review key activities supported by ITAM systems and key features found in leading vendor solutions. We then assess adoption trends, return on investment (ROI) experience, and total cost of ownership (TCO) experience of organizations. The data is assessed for the composite sample of 200 organizations and by organization size and sector. We conclude with our recommendations on requirements that ITAM systems should meet. (14 pp., 11 figs.)
[Executive Summary]

SOA Adoption Rising: ROI Positive But Beware of Costs
January, 2009
For years, organizations have been seeking ways to increase the productivity of application development personnel while improving the quality of their information systems. This study documents an increase in adoption of service-oriented architecture (SOA), as an answer to this dilemma. It breaks down adoption by stages of implementation and organization size, and it takes inventory of ROI and TCO experiences with SOA initiatives. We also look at adoption rates for the competing Java and Microsoft .NET frameworks for developing SOA services. In conclusion, we examine the benefits and challenges of SOA in practice and give advice on how to ensure SOA stays a solid investment in the long run. (11 pp., 7 figs.)
[Executive Summary]

Business Intelligence Adoption Trends and Economic Experiences
Nearly 60% of organizations are investing in BI initiatives this year. Yet, obtaining a positive return on investment is not easy. This study provides technology adoption statistics and reports on the ROI and TCO experiences of organizations that have implemented BI solutions, based on our most recent annual survey of over 200 IT organizations. The results are presented for the entire sample and by organization size and sector. We conclude with precautions that IT managers should take to control the total cost of ownership for business intelligence applications. (7 pp., 12 figs.)
[Executive Summary]

Recession No Barrier to Adoption of Network Automation Tools
For many organizations the counts of routers, switches, and other network devices number in the thousands. Manual deployment is labor-intensive, costly, error-prone, and difficult to manage. In this study, we examine adoption trends for network support automation tools by organization size and sector. We also break down the key functions that network automation tools provide, as defined by the leading network management software vendors. (6 pp., 5 figs.)
[Executive Summary]

Open Source Business Applications: Adoption and Participation Trends
In this study, we examine adoption trends and the economic experiences of organizations that have deployed open source business applications. The analysis addresses current adoption levels, current investment activity, return on investment experience, and total cost of ownership experience. We also examine variations in adoption and investment levels by organization size and industry sector. Finally, we look at a related issue: the number or organizations actively contributing to open source development projects. We conclude with key considerations for IT managers who are assessing the suitability of open source business applications. (7 pp., 10 figs.)
[Executive Summary]

Virtualization Improves Productivity of Data Center Staff
One of the least recognized factors of server virtualization ROI is the positive impact that virtualization has on the productivity of data center personnel. In this article, we provide statistics showing that the productivity of data center staff improved significantly from 2006 and 2007, concurrent with an increase in OS virtualization levels. These trends are consistent across Windows, Unix, and Linux platforms. We conclude by summarizing the reasons that data center staff productivity benefits from increasing the level of virtualization. (4 pp., 4 figs.)
[Executive Summary]

Configuration Management Database ROI Requires Careful Implementation
All IT managers need up-to-date knowledge of organizational IT assets and resources. Yet, maintaining timely information on all IT assets, their configurations, and relationships can be a monumental task. One solution to this problem is the Configuration Management Database (CMDB). In this study, we examine adoption trends of CMDB solutions among small, medium, and large companies, as well as the return on investment (ROI) and total cost of ownership (TCO) experiences of the companies that have implemented these systems. We conclude with recommendations for companies considering implementing a CMDB solution. (4 pp., 4 figs.)
[Executive Summary]

Application Consolidation: Adoption Trends and Benefits
Although consolidation of multiple applications or multiple system instances into a single system can be a great undertaking, the resulting benefits can be huge. This study investigates the payoffs and risks associated with application consolidation, which is based on our survey of more than 200 IT organizations. We provide statistics on the adoption rate for application consolidation along with the percentage of organizations that experience positive or negative return on investment (ROI). Analysis of  application consolidation cost experiences are also included along with the quantitative effect that application consolidation has on IT budgets. The report concludes with  practical guidelines for application consolidation that mitigate the risks of the effort. (6 pp., 8 figs.)
[Executive Summary]

Reassessing Storage Area Network Economics
Storage area networks are demonstrating strong financial returns as the technology continues its move into mainstream computing. This report examines the benefits of storage area network (SAN) technology and looks at adoption rates for small, medium, and large organizations. We also compare adoption rates with the return on investment (ROI) and total cost of ownership (TCO) experiences of various-sized organizations. We conclude with recommendations for achieving maximum benefits while improving the TCO of this technology. (4 pp., 4 figs.)

Handheld Email Devices: Adoption Rates, ROI, and TCO
How deeply have handheld email devices, such as the Blackberry and Treo, penetrated the enterprise? How fast is usage growing? Do the benefits of these products outweigh the costs? To find out, Computer Economics conducted a survey of over 200 IT organizations in which we asked specific questions about adoption levels, user counts, and the economic characteristics of these devices. Our analysis shows that these devices are widely deployed and are continuing to grow in popularity among business users. Furthermore, while the ROI for these devices appears positive overall, our total cost of ownership statistics may indicate that some organizations are not adequately budgeting for the support of these devices. (5 pp., 7 figs.)
[Executive Summary]

Radio Frequency Identification (RFID) Adoption Stalls
Although the promises of Radio Frequency Identification (RFID) are great, the adoption rate of RFID technology has stalled significantly in the last year. What went wrong? This article examines RFID adoption statistics in the U.S. and Canada by industry sector, and reports the ROI experiences of organizations that have implemented RFID. It also analyzes the factors that are contributing to the slow-down in RFID adoption rates along with the applications and environments where RFID appears to be showing the strongest success. (10 pp., 6 figs.)
[Executive Summary]

Data Center OS Trends and Economic Characteristics
A recently completed Computer Economics survey of senior IT executives provides data on the average processing workload managed by the major operating systems running in today's data centers: Windows, Unix, Linux, mainframes, OS/400, and Netware. The workload percentages are broken down by size of organization and by industry sector. The conclusion: in most industries, Windows leads in share of processing workload. However, there are warning signs in the ROI and TCO for all three operating systems. We analyze these warning signs and provide guidelines for optimizing the economic characteristics of these operating systems.  (8 pp., 9 figs.)
[Executive Summary]

Software On-Demand: Lowering the TCO of Business Systems
Software on-demand vendors, such as Salesforce.com, Netsuite, and Employease, deliver software applications as a service instead of selling them on a license basis. This report summarizes the history and basic concepts of software on-demand and analyzes its potential to radically reduce the total cost of ownership for software buyers and the operational costs of software vendors. It also outlines the challenges that software on-demand faces in gaining widespread adoption. 

Internet-Based EDI Poised to Surpass VANs
Although use of Electronic Data Interchange (EDI) for e-commerce predates commercial use of the Internet, utilization of the Internet as the basis for EDI is rapidly gaining ground over EDI based on traditional use of value-added networks (VANs). According to statistics gathered by Computer Economics, adoption of Internet-based EDI will soon surpass VAN-based EDI, due to its more attractive ROI and TCO characteristics.

Using Economic Value (EVA) to Justify IT Investments
For a new IT investment to be approved, the CIO must be able to write a business case that speaks directly to executive management in the language of shareholder value. For many companies, this means understanding the basic concept of Economic Value Added (EVA)--a powerful tool for calculating the business value of an IT investment. This report is an "EVA primer," providing a simple example of the EVA calculation for a fictitious company and the improvement in EVA from a proposed IT investment. The report discusses an example of the use of EVA in justifying a new system to a corporate parent, along with the reasons that improved asset turnover is often the best way to improve EVA through new IT investments. (6 pp., 3 figs.)
[Executive Summary]

 


 

 

To find articles on other topics,
simply use the search field in the header area of each page.
 


Help Desk    Alliances     Privacy Policy  >

© 2014, Computer Economics, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
   Computer Economics • 2082 Business Center Dr. Ste 240, Irvine, CA 92612 • tel: (949) 831-8700