1e’s sample software reclaim model for 50,000 users

8/20/2019 1E’s Sample Software Reclaim Model for 50,000 Users

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Sample Software Reclaim Model for 50,000 UsersWhite Paper

Return on Investment ................................................................................................................................................ 3Sample RFI Response ................................................................................................................................................... 3ROI Analysis Approach ................................................................................................................................................. 3ROI Overview ............................................................................................................................................................... 3

ROI HIGHLIGHTS: ................................................................................................................................................. 3ROI Three Year Cash Flow ............................................................................................................................................ 3ROI – Three Year Cash Flow Chart: ..................................................................................................................... 4

ROI – Cumulated Cash Flows ....................................................................................................................................... 4Three Year Cumulated Cash Flow Chart ............................................................................................................. 4

Software Usage Benchmark Summary......................................................................................................................... 5Software Usage Benchmarks – Industry Spread ................................................................................................. 5Top 10 Most Common Applications Used .......................................................................................................... 6

Software Usage Benchmark – Titles Selected for ROI ................................................................................................. 6Software Usage Benchmarks – AppClarity Raw Data ......................................................................................... 6

Software License Savings – Monetization Methodology ............................................................................................. 7Software License Savings Assumptions .............................................................................................................. 7

Software License Savings – Worksheet ............................................................................................................... 8Software License Savings – Summary ................................................................................................................. 8Sample Savings Calculation – (Photoshop) ......................................................................................................... 9

Additional Software License Savings ............................................................................................................................ 9ROI Assumptions .......................................................................................................................................................... 9


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NPVItem Description Type Investment: YEAR 1 YEAR 2 YEAR 3 Total 4,112,901.26$

SPEND1E License Cost Cap (2,250,000.00)$ -$ -$ -$ (2,250,000.00)$ NPV Discount Rate1E Services Cap (200,000.00)$ -$ -$ -$ (200,000.00)$ 10%

1E Maintenance Exp (450,000.00)$ (450,000.00)$ (450,000.00)$ (1,350,000.00)$SAVINGS IRR

License Savings Exp 3,700,887.86$ 3,935,794.12$ 1,964,700.90$ 9,601,382.88$ 113%

Server License Savings Exp -$ -$ -$ -$Summary Exp -$ 3,250,887.86$ 3,485,794.12$ 1,514,700.90$ 8,251,382.88$ Payback (Months)

Cap (2,450,000.00)$ -$ -$ -$ 9.04

(2,450,000.00)$ (450,000.00)$ (450,000.00)$ (450,000.00)$ (3,800,000.00)$3 Year Spend: (3,800,000.00)$ 3 Year Save: 9,601,382.88$

CASH FLOW ANALYSIS

ValuesPerpetual

($2,450,000)($3,800,000)$9,601,383

113%9.04

Savings Spend

$0 $2,450,000Year 1 $3,700,888 $2,900,000Year 2 $7,636,682 $3,350,000Year 3 $9,601,383 $3,800,000

Cumulated Cash Flows

Payback Period (Months)

Pricing ModelFinancial Metrics

Y1 Total InvestmentTotal Investment (3 Years)Total Savings (3 Years)Return on Investment (ROI)

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

Initial Year 1 Year 2 Year 3

Savings

Spend


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Total Companies Benchmarked: 74# Industries: 12

Total Seat Count: 1.8 MUnused: 28%

Rarely Used: 5%Used: 67%

Total Software Packages Benchmarked: 1,845Total Data Points: 466 M

Unused: 42%Rarely Used: 18%

Used: 40%

Overview of Benchmark Results

Analysis of a typical customer’s full database reveals thereis significant license waste across the whole environment.Findings below include a sampling of 74 companies across13 industries totaling 1.7 M seats shows 28% of allsoftware deployed is unused and 5% is rarely used.

Summary by Company

Summary by Software Title

Unused: Rarely Used: Used:

Benchmark Summary by Company

Unused: Rarely Used: Used:

Benchmark Summary by Software Title

Industry # Companies Sum of SizeCommunications 4 99700Engineering 5 47200Finance 9 625500Healthcare 8 222000Manufacturing 10 202300Retail 5 88500

Services 6 72700Education 3 15600Federal 1 15000Technology 4 112000Energy 10 75300Insurance 7 147000Pharmaceutical 2 30000Grand Total 74 1,752,800


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ProductAverage ofDeployed %

Average ofUnused %

Avg. RarelyUsed %

Avg. SeatCount

Count ofCustomer

Sum of SeatCount

Acrobat Professional 12% 24% 10% 22763 64 1456800Visio Professional 6% 25% 24% 23844 61 1454500Visual Studio Professional 2% 48% 18% 24624 58 1428200Visio Standard 10% 25% 25% 23745 60 1424700Project Standard 10% 37% 18% 24870 57 1417600Project Professional 6% 27% 25% 22444 63 1414000Photoshop 2% 29% 14% 21698 63 1367000Crystal Reports 4% 54% 11% 27208 50 1360400Illustrator 2% 33% 16% 22132 59 1305800InDesign 1% 39% 16% 23691 54 1279300

ProductAvg. %Deployed

Avg. %Unused

Avg. %Rarely Used

Avg. SeatCount

#Customers

Project Standard 9.55% 37% 18% 24870 57SQL Optimizer for Oracl 1.48% 71% 8% 31707 29Project Professional 5.91% 27% 25% 22444 63Acrobat Professional 11.70% 24% 10% 22763 64Business Objects Ente rp 1.53% 52% 14% 36705 20Visio Standard 10.07% 25% 25% 23745 60Visio Professional 5.58% 25% 24% 23844 61Minitab 2.00% 31% 15% 31494 32Inventor 1.14% 36% 15% 39947 19InDesign 1.18% 39% 16% 23691 54QuickTest Professional 0.67% 35% 12% 39771 24Crystal Reports 3.80% 54% 11% 27208 50BusinessObjects 1.31% 40% 14% 55725 16Toad for Oracle 1.46% 38% 10% 32346 37Publisher 9.75% 39% 16% 36374 27Visual Studio Professio 1.76% 48% 18% 24624 58Photoshop 2.23% 29% 14% 21698 63Toad Data Modeler 0.84% 65% 13% 32625 28

ProductAvg. %Deployed

Avg. %Unused

Avg. %Rarely Used

Avg. SeatCount

#Cust

Illustrator 1.61% 33% 16% 22132 Acrobat Standard 14.40% 9% 10% 25610 AutoCAD LT 0.51% 40% 15% 30125Creator DE 15.00% 65% 7% 32362 Visual Studio Ultimate 1.55% 32% 22% 32521Toad for Data Analysts 0.78% 67% 9% 30286pcAnywhere 4.96% 71% 7% 36476 Captivate 0.46% 48% 17% 38481 Exceed 0.97% 35% 13% 38971

SQL Compare 0.33% 57% 12% 45080WinZip 28.92% 15% 11% 24818 Reflection X 0.76% 51% 9% 55642Tableau 0.24% 38% 22% 38723 WebEx 20.26% 7% 13% 30079 DRAW Graphics Suite 0.50% 44% 15% 43879Dreamweaver 0.87% 37% 17% 28783 Dragon NaturallySpe aki 0.74% 37% 9% 44760


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# Products Included in ROI: 35 Late Version % Re duction: 0%% Reclaim - Unused: 75% % New Purchas es Per Year: 10%

% Reclai m - Rarely Used: 25% # Years Rese rve: 2Annual Software Support Cost: 20% % Future Unus ed 25%


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Software Usage Data - 74 Customer Sampling

Price Publisher Product Deployed Unused RarelyUse d % Unuse d Pr oduct Avg. %Deployed Avg. %Unused Avg. %Rarely Used Avg. SeatCount #Customers599.95$ Microsoft Project Standard 4775 1752 874 37% Project Standard 9.55% 37% 18% 24870 57

2,250.00$ Quest Software SQL Optimizer for Oracle 739 522 62 71% SQL Optimizer for Oracl 1.48% 71% 8% 31707 29688.00$ Microsoft Project Professional 2954 795 727 27% Project Professional 5.91% 27% 25% 22444 63288.00$ Adobe Acrobat Professional 5851 1382 571 24% Acrobat Professional 11.70% 24% 10% 22763 64

# Products Included in ROI: 35 Late Version % Reduction: 0%% Reclaim - Unused: 75% % New Purchas es Per Year: 10%

% Reclaim - Ra rely Used: 25% # Years Reserve: 2Annual Software Support Cost: 20% % Future Unused 25%

Year 1 Year 2 Year 3NET SAVINGS: 3,700,888$ 3,935,794$ 1,964,701$


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Photoshop INCLUDED in ROI: YesCost of License: $2,000 Total to be Removed: 286

Annual Support Charge: $400 Late Version Percentage Reduction: 0%Unused: 327 Total for Reclaim: 286

Unused Percentage Removed: 75% Number Purchased/Yr: 112 Unused Removed: 245 Number of Years Reserve: 2.0

Rarely Used 162 Total Target # of Licenses to Reserve: 223 Rarely Used Percentage Removed: 25% Total Target Licenses for Reclaim: 223

Rarely Used Removed: 40.50 Licenses Immediately Terminated: 63

Year 1 Year 2 Year 3Purchase Avoidance - #Licenses: 112 112 - Purchase Avoidance - Savings: $223,000 $223,000 $0

Maintenance Avoidance on Additional Lic: $44,600 $89,200.00Maintenance Avoidance on Terminated Lic.: $25,100 $25,100 $25,100

Future Unused: $16,350.00 $16,350.00Net Save: $248,100 $309,050 $130,650


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1e’s sample software reclaim model for 50,000 users

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