New Technology: The Projected Total Economic Impact Of .

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New Technology: The ProjectedTotal Economic Impact Of Cisco Success TracksCost Savings And Business BenefitsEnabled By Cisco Success TracksDecember 2020A FORRESTER TOTAL ECONOMIC IMPACT STUDY COMMISSIONED BY CISCO

Table Of ContentsExecutive Summary . 1Consulting Team: Julia FadzeyevaSanitra DesaiThe Cisco Success Tracks Customer Journey. 6Key Challenges . 6Composite Organization . 6Analysis Of Benefits . 8Time Savings From Simplified Software UpgradeManagement . 8Value Of Time Saved For Product Adoption As AResult Of Learning . 10Reduced Security Risks With Success Tracks . 11. 12Resource Cost Savings From Improved LifecycleManagement . 12Value Of Faster Ticket Initialization As A Result OfCisco Automation . 13Unquantified Benefits . 15Flexibility . 15Analysis Of Costs . 16Implementation, Training, And OngoingManagement Costs . 16Cisco Success Tracks License Fees . 17Financial Summary . 18Appendix A: New Technology: Total EconomicImpact . 19Appendix B: Endnotes . 20ABOUT FORRESTER CONSULTINGForrester Consulting provides independent and objective research-based consulting to help leaders succeed in theirorganizations. For more information, visit forrester.com/consulting. 2020, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based onthe best available resources. Opinions reflect judgment at the time and are subject to change. Forrester , Technographics ,Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All othertrademarks are the property of their respective companies.NEW TECHNOLOGY: THE PROJECTED TOTAL ECONOMIC IMPACT OF CISCO SUCCESS TRACKS

Executive SummaryAs networks become increasingly more complex, organizations must find a way toquickly adopt new technologies, easily track and manage their devices, and ensure astrong security posture. The Cisco Success Tracks offering empowers organizations toshorten time-to-value, reduce the risk of security breaches and unplanned downtime,and improve operational efficiency.Success Tracks is a new suite of service solutionsdelivered via a simple, unified digital experience.KEY STATISTICS BASED ON THE COMPOSITE ORGANIZATIONCisco designed this suite of solutions to helpcustomers realize the full value of their Ciscotechnologies by removing roadblocks and advancingthem toward achieving their goals at every step of thetechnology lifecycle journey.Cisco commissioned Forrester Consulting to conducta Total Economic Impact (TEI) study and examinethe potential return on investment (ROI) enterprisesProjected return oninvestment (PROI)Projected net present value(NPV)96% to 157% 676.1K to 1.1Mmay realize by leveraging Cisco Success Tracks. Thepurpose of this study is to provide readers with alearning, and support available at their fingertipsframework to evaluate the potential financial impactthrough the CX Cloud portal. Success Tracksof Success Tracks on their organizations.provided customers with deeper visibility and aTo better understand the benefits, costs, and risksassociated with this investment, Forrester interviewedrepresentatives from four customers at the earlystages of using Success Tracks. For the purposes ofthis study, Forrester aggregated the experiences ofcontextual view into and across their networkinfrastructure, enabled significant cost savings withanalytics that provided actionable insights, andimproved security posture, operational efficiency, andperformance, which resulted in faster time-to-value.the interviewed customers and combined the resultsinto a single composite organization.Prior to Cisco Success Tracks, interviewedorganizations managed their complex networksmanually. They did not have the tools to managetheir assets and coverage or automate technicalsupport engagements, and they lacked analytics thatcould inform proactive maintenance and updates tominimize network disruptions.With Cisco Success Tracks, customers acquiredaccess to Cisco expertise, best practices, insights,NEW TECHNOLOGY: THE PROJECTED TOTAL ECONOMIC IMPACT OF CISCO SUCCESS TRACKS“Success Tracks via CX Cloudserves as a one-stop shop whereyou can get in and, in just a fewclicks, you are able to see yourdevices at a high level. I can seewhich devices may be havingissues and, of those issues, whichneed to be mitigated right awayversus which can be held off on.You have insight into your wholeportfolio instantaneously.”Manager, global infrastructureengineering, manufacturing1

EXECUTIVE SUMMARYKEY FINDINGSguided resources, engineers have all necessaryQuantified benefits. Risk-adjusted present valueguidance at their fingertips.(PV) quantified benefits include: Reduced risk of a security breach, amountingResource cost savings from reduced timeto between 222K and 333K. Softwarespent on upgrade management, amounting toupdates, product alerts, and service alerts prompt 642K to 764K. Interviewed decision-makersnetwork engineers to install the latest updates,described device upgrades as a critical task thatprotecting them from the latest vulnerabilities.was both manual and-time consuming. SuccessThis reduces their risk of a security breach byTracks delivers automatic device scans and20%.targeted software upgrades that significantly“The learning portion is top-notch.It has helped me with the stuff that Ihad questions about. That’s a reallygood place to get [Cisco product]information.”reduce engineers’ time dedicated to upgrademanagement.Time saved on average perdevice on upgrademanagement with SuccessTracks25 to 30 minutesSenior network administrator, personalcare Resource cost savings from reduced timespent on service coverage managementbetween 20.8K and 24.2K. Management of Cost savings from a reduction in unplannedinventory, contracts, and device lifecycles isdowntime of 442K to 578K. Leveragingautomated with Success Tracks, saving 60% tolearning capabilities, product lifecycle70% of the allocated resource time each month.management, and timely software updates Resource cost savings from more efficientreduces the risk of failure, translating to aticket management between 3.8K andreduced risk of unplanned downtime. When 12.4K. Success Tracks significantly streamlinesdowntime does occur, the length of the outage isthe support engagement process byreduced.automatically filling in the diagnostic data andResource cost savings from product adoptionproviding information and status updates onas a result of e-learning between 48.4K andevery support case in a single place, saving 96.9K. Prior to Cisco Success Tracks,engineers time.organizations relied on engineers to search theUnquantified benefits. Benefits that are notinternet for information on new Cisco productsquantified for this study include:the organizations planned to implement. Whilethe information they found was often useful, the Faster time-to-value. With the new learningsearch was inefficient and left gaps in engineers’opportunities and access to Cisco advisories,knowledge, which made projects moreorganizations can shorten their timelines for newsusceptible to errors. With Success Tracks’product adoption. It allows them to takeadvisories, adoption-journey-focused liveadvantage of their Cisco products weeks fasterwebinars and Q&As, communities, and self-than before.NEW TECHNOLOGY: THE PROJECTED TOTAL ECONOMIC IMPACT OF CISCO SUCCESS TRACKS2

EXECUTIVE SUMMARY Improved executive confidence in IT. HavingSuccess Tracks in place has allowed theinterviewed IT decision-makers to feel moreconfident that their organizations are betterprotected against security threats and that theycan manage their image with executives.Costs. Risk-adjusted PV costs include: Cisco Success Tracks implementation,training, and management costs. Theorganizations initially spent time implementingthe software for the portal and training engineersto use it. Throughout the year, engineers spenttime working in the tool and managing therelationships with Cisco. Cisco Success Tracks services cost. Ciscoservices costs include recurring annual licensefees paid to Cisco.The customer interviews and financial analysis foundthat a composite organization experiences projectedbenefits between 1.4M and 1.8M over three yearsversus costs of 703.5K, adding up to a projected netpresent value (NPV) between 676.1K and 1.1Mand a PROI of 96% to 157%.NEW TECHNOLOGY: THE PROJECTED TOTAL ECONOMIC IMPACT OF CISCO SUCCESS TRACKS3

EXECUTIVE SUMMARYPROIPROJECTED BENEFITS PVPROJECTED NPV96% to 157% 1.4M to 1.8M 676.1K to 1.1MThree-Year Projected Financial Analysis for the Composite Organization 1.2MHigh-Impact NPV, 1.1M, PROI of157% 1.0MMid-Impact NPV, 875.2K, PROI of124%Low-Impact NPV, 676.1K, PROI of96% 800K 600K 400K 200K 0KInitialYear 1Year 2Year 3- 200KFor benefit calculations, Forresterincorporates risk by developing a range ofprojected outcomes—low impact, mediumimpact, and high impact—based on therange of data values acquired duringcustomer interviews. The estimates areincluded for each input variable in the benefitfinancial models. This creates a potentialbenefit range.NEW TECHNOLOGY: THE PROJECTED TOTAL ECONOMIC IMPACT OF CISCO SUCCESS TRACKS4

EXECUTIVE SUMMARYTEI FRAMEWORK AND METHODOLOGYFrom the information provided in the interviews,Forrester constructed a New Technology: ProjectedDUE DILIGENCEInterviewed Cisco stakeholders and ForresterTotal Economic Impact (New Tech TEI) frameworkanalysts to gather data relative to the Successfor those organizations considering an investment inTracks.the Cisco Success Tracks.The objective of the framework is to identify thepotential cost, benefit, flexibility, and risk factors thataffect the investment decision. Forrester took amultistep approach to evaluate the impact that CiscoSuccess Tracks can have on an organization.EARLY IMPLEMENTATION CUSTOMERINTERVIEWSInterviewed four decision-makers atorganizations using Success Tracks to obtaindata with respect to projected costs, benefits,and risks.COMPOSITE ORGANIZATIONDesigned a composite organization based oncharacteristics of the interviewed organizations.FINANCIAL MODEL FRAMEWORKConstructed a financial model representative ofthe interviews using the New Tech TEIDISCLOSURESmethodology and risk-adjusted the financialReaders should be aware of the following:model based on issues and concerns of theThis study is commissioned by Cisco and delivered byForrester Consulting. It is not meant to be used as acompetitive analysis.interviewed organizations.Forrester makes no assumptions as to the potential ROIthat other organizations will receive. Forrester stronglyadvises that readers use their own estimates within theframework provided in the report to determine theappropriateness of an investment in Success Tracks.Cisco reviewed and provided feedback to Forrester, butForrester maintains editorial control over the study and itsfindings and does not accept changes to the study thatcontradict Forrester’s findings or obscure the meaning ofthe study.Cisco provided the customer names for the interviews butdid not participate in the interviews.NEW TECHNOLOGY: THE PROJECTED TOTAL ECONOMIC IMPACT OF CISCO SUCCESS TRACKSCASE STUDYEmployed four fundamental elements of NewTech TEI in modeling the projected investmentimpact: benefits, costs, flexibility, and risks.Given the increasing sophistication of ROIanalyses related to IT investments, Forrester’sTEI methodology provides a complete picture ofthe total economic impact of purchasedecisions. Please see Appendix A for additionalinformation on the New Tech TEI methodology.5

The Cisco Success Tracks Customer JourneyDrivers leading to the Cisco investmentInterviewed OrganizationsIndustryGeographyIntervieweeRevenue; network sizePersonal productsGlobalSenior network administrator 3.6B; 10,000 usersManufacturingGlobalManager, global infrastructureengineering 6B; 18,000 usersGovernmentEuropeInfrastructure architectDid not provideEducationNorth AmericaDirector of network services 200M; 40,000 usersKEY CHALLENGES“We used to have a solution thatjust monitored our devices, but itwas too reactive and spread out.We needed to monitor from acentralized location that took careof all our inventory.”Prior to investing in Cisco Success Tracks,interviewees’ organizations managed their complexnetworks and assets manually and aimed to resolvethe following common challenges: Lack of full visibility into their asset inventoryled to inefficiencies. With thousands of assetsManager, global infrastructureengineering, manufacturingto manage, interviewees needed a convenientway to monitor networks and manage projectsand contracts in one place. In cases when organizations did not catch expired warranties orCOMPOSITE ORGANIZATIONproducts nearing end of life, they were at higherBased on the interviews, Forrester constructed a TEIrisk of unplanned downtime.framework, a composite company, and a ROIKeeping up with security upgrades was slowand inefficient. Managing upgrades and patchesto the infrastructure was manual and timeconsuming, often leaving organizationsvulnerable to security risks. analysis that illustrates the areas financially affected.The composite organization is representative of thefour companies that Forrester interviewed and isused to present the aggregate financial analysis inthe next section. The composite organization has thefollowing characteristics:New projects took a long time to implement.Engineers relied on finding technical informationand advice in publicly available sources,including video-sharing platforms, forums, andwhite papers, and did not have a way to connectdirectly to Cisco experts.NEW TECHNOLOGY: THE PROJECTED TOTAL ECONOMIC IMPACT OF CISCO SUCCESS TRACKS6

THE CISCO SUCCESS TRACKS CUSTOMER JOURNEYDescription of composite. The composite is aglobal company with 2 billion in annual revenue andhas 10,000 employees spread across multiplelocations. The organization has 10 network supportengineers, operating inside a larger IT organization,and their responsibilities include contract, inventory,and lifecycle management.Prior to Cisco Success Tracks, network engineershad to troubleshoot network issues on their own.Key assumptions 2B revenue10,000 users10 network engineersCisco clientWhen they implemented new products or whenissues surfaced, engineers searched the internet foradvice from peers or tracked down more seniorengineers within the organization, which resulted inmore effort and a slower time-to-resolution.Engineers also searched for relevant product andsecurity alerts, which raised both costs and the risksof a security breach or unplanned downtime. OnceCisco made Success Tracks available, theorganization implemented it to improve networkvisibility and engineers’ productivity.NEW TECHNOLOGY: THE PROJECTED TOTAL ECONOMIC IMPACT OF CISCO SUCCESS TRACKS7

Analysis Of BenefitsQuantified benefit data as applied to the compositeTotal Projected BenefitsYear 1Year 2Year 3TotalPresentValueTotal projected benefits (low) 541,586 552,844 572,827 1,667,257 1,379,621Total projected benefits (mid) 616,084 631,875 660,742 1,908,701 1,578,712Total projected benefits (high) 703,244 723,689 761,565 2,188,499 1,809,578Projected BenefitsTIME SAVINGS FROM SIMPLIFIED SOFTWARE“CX Cloud helps me understandand prioritize my maintenancecycles, on where I need to focusmy attention on doing upgradesand fixing things. Our annualupgrades were kind of done almostwith a hammer. Today, we do itwith a scalpel because I know theissues and which version ofsoftware fixes that. Now we aredoing upgrades more tacticallybecause CX Cloud provides theinformation about security or bugsthat are potentially impactful to ourconfiguration and our platform.”UPGRADE MANAGEMENTEvidence and data. All interviewees describedkeeping devices upgraded as a priority; however,before Success Tracks, the upgrade process wasprimarily manual.“We would try to upgrade on a regular basis, butsometimes that’s just not possible or we miss adevice, and it will sit there for a year or two beforebeing upgraded. It was all manual,” said a seniornetwork administrator at a personal care company.Success Tracks’ automatic device scans andtargeted software upgrades to the right versionremoved pressure from IT and significantly reducedDirector of network services, educationtime dedicated to upgrade management.“With thousands of devices, engineers wastedprobably a good hour or two every day digging intoModeling and assumptions. For the compositethe information about a piece of equipment and itsorganization, Forrester assumes:software version,” remarked the manager and globalinfrastructure engineer at a manufacturing company. The organization manages 10,500 devices inYear 1; this number grows 1% YoY.With Success Tracks, engineers save time inidentifying devices that are running on nonoptimal per year.software versions. Success Tracks displays the topOS versions to consider for upgrade based onEach device requires, on average, one upgrade Engineers save, on average, 25 to 30 minutesfeatures available and issues resolved in latestper day on upgrade management, as a result ofreleases, and engineers can then review detailsrelying on Success Tracks Insights and Analytics.behind each recommended target OS version anddecide whether they are ready to upgrade.NEW TECHNOLOGY: THE PROJECTED TOTAL ECONOMIC IMPACT OF CISCO SUCCESS TRACKS8

ANALYSIS OF BENEFITS The average hourly burdened salary for anThis benefit yields a three-year projected PV ranginginfrastructure engineer is 58.from 642K to 764K.Time Savings From Simplified Software Upgrade ManagementRef.MetricA1Number of managed devicesA2Average number of times a devicerequires an upgradeCalculationYear 1Year 2Year 3Increases by 450.451.001.001.00 58 58 58 255,780 258,338 260,921 274,050 276,791 279,558 304,500 307,545 310,620A3LowA3MidAverage time savings per devicewith Success Tracks (hours)25 to 30 minInfrastructure professional averagehourly rate (rounded) 120,000/2,080 hoursTime savings from simplifiedsoftware upgrade -year total:Three-year present value: 642,064 to 764,361 775,039 to 922,665COST SAVINGS FROM A REDUCTION IN“Through the CX Cloud, SuccessTracks has predictive failure withthe logs, so I have much morevisibility into problems such asbugs. We are also able tounderstand how to prioritize ourmaintenance cycles so I can focusmy attention on doing upgradesand fixing things when they need tobe done. We now have a betterunderstanding of what’s to come.”UNPLANNED DOWNTIMEEvidence and data. Through surveys and multipleclient engagements, Forrester has found that mostorganizations have experienced some type ofnetwork downtime in the past three years.Interviewed decision-makers thus aimed to reducethe risk of downtime and shorten the length of theoutage when it inevitably happened.With Cisco Success Tracks, organizations couldproactively detect faults into which they previouslyDirector of network services, educationhad no visibility. Software updates reduced the risk ofbugs, an

Mid-Impact NPV, 875.2K, PROI of Low-Impact NPV, 676.1K, PROI of 96%- 200K 0K 200K 400K 600K 800K 1.0M 1.2M Initial Year 1 Year 2 Year 3 Three-Year Projected Financial Analysis for the Composite Organization incorporates risk by developing a range of projected outcomes—low impact, medium impact, and high impact—based on the

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