Summary

Google commissioned Forrester to measure the Total Economic Impact of Google Apps, and the results clearly show that productivity gains achieved by switching to Google Apps are even greater than the cost savings. Over a dozen in-depth customer interviews – each with more than a thousand users – plus hundreds of survey responses led Forrester to conclude that deploying Google Apps delivers a very fast payback (even when accounting for change management), and a very large net present value (NPV).

  1. Google Apps can save companies lots of money.
  2. The productivity gains companies can achieve are even bigger than the cost savings.
  3. Many large businesses are moving to Google Apps from on-premises systems.
  4. The savings and productivity benefits of Google Apps far outweigh any change management costs.
  5. Google Apps pays for itself in 7 months.

Key findings

  • Over 300% ROI – The return on investment of switching to Google Apps is 391%. (307% after adjusting for risk.) In plain English, for every dollar spent on Google Apps, the system pays back the initial investment and more than three more dollars in additional business value.
  • Dramatically improved productivity – The value of improved productivity from Google Apps is even greater than costs saved by making the switch. Features like fast email search, integrated IM, message threading, great spam filtering, collaborative sites and real-time, multi-person collaboration in documents, spreadsheets and presentations all contribute to the productivity improvements quantified by Forrester.
  • 38% – 56% typical cost savings – Cost savings vs. legacy on-premises solution included reduced IT administrator time spent on system maintenance, upkeep, patching, upgrades and managing collaborative sites.
  • Break-even under 7 months – The break-even payback period of switching to Google Apps is very short – faster than seven months. After the investment quickly pays for itself, the productivity gains from Google Apps continue to grow year after year.
  • NPV over $10,000,000 – The risk-adjusted Net Present Value (NPV) of switching to Google Apps is over $10,000,000 for the typical large business with 18k employees. Productivity gains contribute over $7,000,000 to this amount.
  • 93% of customers saw positive impact – Ninety-three percent of respondents saw positive, tangible IT and end user impacts that drove ROI.

Research methodology

Forrester conducted more than a dozen in-depth interviews with stakeholders from large customers each with over a thousand users to understand their experiences with Google Apps™. Forrester also analyzed survey responses from hundreds of other customers in their research. Feedback from customers was then used to estimate the “total economic impact” of Google Apps™ across four dimensions:

  • Costs of switching to Google Apps (including licensing, change management, etc.)
  • Benefits of switching to Google Apps (including cost savings, improved productivity, etc.)
  • Flexibility created (new options opened up by switching to Google Apps, like Marketplace applications)
  • Risk (including potential variability in deployment costs and benefits gained)

Forrester then compiled this data and predicted the “total economic impact” of Google Apps for a typical large enterprise with 18k employees and offices on multiple continents. This model – including costs, benefits, flexibility and risk – factored in the typical roll-out and adoption schedules of our messaging and collaboration applications as reported by customers.

Source: http://www.google.com/apps/intl/en/business/pdf/apps_TEI.pdf

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