Sample Software Reclaim Model for 50,000 Users White Paper
Return on Investment ................................................................................................................................................ 3
Sample RFI Response ................................................................................................................................................... 3
ROI Analysis Approach ................................................................................................................................................. 3
ROI Overview ............................................................................................................................................................... 3
ROI HIGHLIGHTS: ................................................................................................................................................. 3
ROI Three Year Cash Flow ............................................................................................................................................ 3
ROI – Three Year Cash Flow Chart: ..................................................................................................................... 4
ROI – Cumulated Cash Flows ....................................................................................................................................... 4
Three Year Cumulated Cash Flow Chart ............................................................................................................. 4
Software Usage Benchmark Summary......................................................................................................................... 5
Software Usage Benchmarks – Industry Spread ................................................................................................. 5
Top 10 Most Common Applications Used .......................................................................................................... 6
Software Usage Benchmark – Titles Selected for ROI ................................................................................................. 6
Software Usage Benchmarks – AppClarity Raw Data ......................................................................................... 6
Software License Savings – Monetization Methodology ............................................................................................. 7
Software License Savings Assumptions .............................................................................................................. 7
Software License Savings – Worksheet ............................................................................................................... 8
Software License Savings – Summary ................................................................................................................. 8
Sample Savings Calculation – (Photoshop) ......................................................................................................... 9
Additional Software License Savings ............................................................................................................................ 9
ROI Assumptions .......................................................................................................................................................... 9
NPV
Item Description Type Investment: YEAR 1 YEAR 2 YEAR 3 Total 4,112,901.26$
SPEND
1E License Cost Cap (2,250,000.00)$ -$ -$ -$ (2,250,000.00)$ NPV Discount Rate
1E 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
Values
Perpetual
($2,450,000)
($3,800,000)
$9,601,383
113%
9.04
Savings Spend
$0 $2,450,000
Year 1 $3,700,888 $2,900,000
Year 2 $7,636,682 $3,350,000
Year 3 $9,601,383 $3,800,000
Cumulated Cash Flows
Payback Period (Months)
Pricing Model
Financial Metrics
Y1 Total Investment
Total 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
Total Companies Benchmarked: 74
# Industries: 12
Total Seat Count: 1.8 M
Unused: 28%
Rarely Used: 5%
Used: 67%
Total Software Packages Benchmarked: 1,845
Total Data Points: 466 M
Unused: 42%
Rarely Used: 18%
Used: 40%
Overview of Benchmark Results
Analysis of a typical customer’s full database reveals there
is significant license waste across the whole environment.
Findings below include a sampling of 74 companies across
13 industries totaling 1.7 M seats shows 28% of all
software 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 Size
Communications 4 99700
Engineering 5 47200
Finance 9 625500
Healthcare 8 222000
Manufacturing 10 202300
Retail 5 88500
Services 6 72700
Education 3 15600
Federal 1 15000
Technology 4 112000
Energy 10 75300
Insurance 7 147000
Pharmaceutical 2 30000
Grand Total 74 1,752,800
Product
Average of
Deployed %
Average of
Unused %
Avg. Rarely
Used %
Avg. Seat
Count
Count of
Customer
Sum of Seat
Count
Acrobat Professional 12% 24% 10% 22763 64 1456800
Visio Professional 6% 25% 24% 23844 61 1454500
Visual Studio Professional 2% 48% 18% 24624 58 1428200
Visio Standard 10% 25% 25% 23745 60 1424700
Project Standard 10% 37% 18% 24870 57 1417600
Project Professional 6% 27% 25% 22444 63 1414000
Photoshop 2% 29% 14% 21698 63 1367000
Crystal Reports 4% 54% 11% 27208 50 1360400
Illustrator 2% 33% 16% 22132 59 1305800
InDesign 1% 39% 16% 23691 54 1279300
Product
Avg. %
Deployed
Avg. %
Unused
Avg. %
Rarely Used
Avg. Seat
Count
#
Customers
Project Standard 9.55% 37% 18% 24870 57
SQL Optimizer for Oracle 1.48% 71% 8% 31707 29
Project Professional 5.91% 27% 25% 22444 63
Acrobat Professional 11.70% 24% 10% 22763 64
Business Objects Enterprise 1.53% 52% 14% 36705 20
Visio Standard 10.07% 25% 25% 23745 60
Visio Professional 5.58% 25% 24% 23844 61
Minitab 2.00% 31% 15% 31494 32
Inventor 1.14% 36% 15% 39947 19
InDesign 1.18% 39% 16% 23691 54
QuickTest Professional 0.67% 35% 12% 39771 24
Crystal Reports 3.80% 54% 11% 27208 50
BusinessObjects 1.31% 40% 14% 55725 16
Toad for Oracle 1.46% 38% 10% 32346 37
Publisher 9.75% 39% 16% 36374 27
Visual Studio Professional 1.76% 48% 18% 24624 58
Photoshop 2.23% 29% 14% 21698 63
Toad Data Modeler 0.84% 65% 13% 32625 28
Product
Avg. %
Deployed
Avg. %
Unused
Avg. %
Rarely Used
Avg. Seat
Count
#
Customers
Illustrator 1.61% 33% 16% 22132 59
Acrobat Standard 14.40% 9% 10% 25610 48
AutoCAD LT 0.51% 40% 15% 30125 36
Creator DE 15.00% 65% 7% 32362 29
Visual Studio Ultimate 1.55% 32% 22% 32521 34
Toad for Data Analysts 0.78% 67% 9% 30286 28
pcAnywhere 4.96% 71% 7% 36476 25
Captivate 0.46% 48% 17% 38481 26
Exceed 0.97% 35% 13% 38971 24
SQL Compare 0.33% 57% 12% 45080 15
WinZip 28.92% 15% 11% 24818 45
Reflection X 0.76% 51% 9% 55642 12
Tableau 0.24% 38% 22% 38723 22
WebEx 20.26% 7% 13% 30079 34
DRAW Graphics Suite 0.50% 44% 15% 43879 19
Dreamweaver 0.87% 37% 17% 28783 40
Dragon NaturallySpeaking 0.74% 37% 9% 44760 20
# Products Included in ROI: 35 Late Vers ion % Reduction: 0%% Recla im - Unused: 75% % New Purchases Per Year: 10%
% Recla im - Rarely Used: 25% # Years Reserve: 2Annual Software Support Cost: 20% % Future Unused 25%
Software Usage Data - 74 Customer Sampling
Price Publisher Product Deployed Unused
Rarely
Used % Unused Product
Avg. %
Deployed
Avg. %
Unused
Avg. %
Rarely Used
Avg. Seat
Count
#
Customers
599.95$ 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 Oracle 1.48% 71% 8% 31707 29
688.00$ Microsoft Project Professional 2954 795 727 27% Project Professional 5.91% 27% 25% 22444 63
288.00$ Adobe Acrobat Professional 5851 1382 571 24% Acrobat Professional 11.70% 24% 10% 22763 64
# Products Included in ROI: 35 Late Vers ion % Reduction: 0%% Recla im - Unused: 75% % New Purchases Per Year: 10%
% Recla im - Rarely Used: 25% # Years Reserve: 2Annual Software Support Cost: 20% % Future Unused 25%
Year 1 Year 2 Year 3
NET SAVINGS: 3,700,888$ 3,935,794$ 1,964,701$
Photoshop INCLUDED in ROI: Yes
Cost 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 3
Purchase Avoidance - #Licenses: 112 112 -
Purchase Avoidance - Savings: $223,000 $223,000 $0
Maintenance Avoidance on Additional Lic: $44,600 $89,200.00
Maintenance Avoidance on Terminated Lic.: $25,100 $25,100 $25,100
Future Unused: $16,350.00 $16,350.00
Net Save: $248,100 $309,050 $130,650
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