Cost/Benefit Analysis
The following numbers were derived using Microsoft business value tools for Windows Vista deployment and life-cycle management. All monetary amounts are stated as U.S. dollars.
On This Page
Key Deployment Assumptions
Key Financial Indicators
Cost Breakdown
Benefits Analysis
Key Deployment Assumptions
Software License Costs |
|
Users receiving upgrade |
6,549 |
Software license cost (per computer) |
$0 |
Training Costs |
|
Training hours per upgraded user |
1 hour |
Training cost (cost to develop training per user) |
$6 |
Desktop Deployment Costs |
|
Desktop Imaging |
|
Number of images currently used |
13 |
Number of different hardware setups that require separate images |
2 |
Number of different departmental setups that require separate images |
6 |
Estimated IT time required to create each image |
93 hours |
Images required with the Windows Vista operating system |
13 |
Application Compatibility Remediation |
|
Number of core applications requiring testing for Windows Vista deployment |
112 |
Average hours of testing per application |
9 hours |
Percentage of applications that will require remediation |
15% |
Average time spent per application requiring remediation |
12 hours |
Third-party application costs per user |
- |
Infrastructure Remediation |
|
Standard hardware refresh cycle |
36 months |
Additional desktops replaced for Windows Vista deployment |
1,119 |
Desktops requiring upgrades |
100 |
Additional laptops replaced for Windows Vista deployment |
197 |
Laptops will requiring hardware upgrades |
50 |
Expected Hardware Costs |
|
New desktop |
$900 |
New laptop |
$1,600 |
Upgrade desktop (hardware + labor) |
$150 |
Upgrade laptop (hardware + labor) |
$150 |
Planning & Organization |
|
Planning and organization time required |
1,000 hours |
Deployment Process |
|
End-user downtime |
0.12 hour |
Deployment Method Used (depends on connection bandwidth and management infrastructure) |
|
Manual Deployment |
5% |
Lite Touch Deployment |
15% |
Zero Touch Deployment |
80% |
The following financial calculations are estimates based on information available through calculation tools and industry research. The final budgeting and basis for which items shall be included in this project require an in-depth audit and confirmation. Of note are the exclusions of hardware purchases intended to be refreshed during the coming year as well as hardware that is more than three years old and overdue for refresh. The costs of the Enterprise Agreement for Microsoft desktop operating systems and Office products are also excluded from this calculation. The Enterprise Agreement in place includes the software licenses associated with this project.
Key Financial Indicators
|
Year One |
Year Two |
Year Three |
Total |
---|---|---|---|---|
Cost |
($1,983,000) |
|
|
($1,983,000) |
Operating System Benefits |
$1,643,490 |
$1,643,490 |
$1,643,490 |
$4,930,470 |
Net Cash Flow |
($339,510) |
$1,643,490 |
$1,643,490 |
$2,947,470 |
Net Present Value (NPV) |
($339,510) |
$1,429,122 |
$1,242,715 |
$2,332,327 |
Discount Rate |
|
|
|
15% |
IRR |
|
|
|
64% |
Payback Period ( (Total Investment/Total Benefits) × 12) |
|
|
|
14 months |
Number of Desktops Deployed |
|
|
|
6549 |
Cost per Desktop |
|
|
|
($303) |
Software |
|
|
|
($0) |
Training |
|
|
|
($43) |
Planning & Imaging |
|
|
|
($5) |
Application Remediation |
|
|
|
($9) |
Hardware |
|
|
|
($205) |
Planning |
|
|
|
($7) |
Deployment Process |
|
|
|
($34) |
Cost Breakdown
Cost Type |
One-Time Amount |
---|---|
Software |
($0) |
Training |
($279,000) |
Imaging |
($31,000) |
Application Remediation |
($58,000) |
Hardware |
($1,345,000) |
Planning |
($48,000) |
Deployment Process |
($222,000) |
Total Costs |
($1,983,000) |
Benefits Analysis
The following table displays the main benefits from Windows Vista and Office Enterprise 2007. Operating system and additional benefits have been calculated for three years; benefit calculation assumes the years begin after all deployments are complete.
Quantified Annual Operating System Benefits
Business Benefits
IT Department Benefits |
Annual Benefits |
---|---|
Reduced Security Mgmt |
$222,000 |
Reduced Information Theft |
$90,000 |
PC Recycling |
$26,000 |
Automated Desktop Management |
$100,000 |
Reduced Help Desk Support |
$104,000 |
Reduced Image Management |
$25,000 |
Third-Party Application Savings |
$65,490 |
Performance and Reliability |
$518,000 |
Computer Failures |
$3,000 |
Power Management |
$195,000 |
Application Responsiveness |
$6,000 |
Information Management |
$289,000 |
Total Benefits |
$1,643,490 |
Total annual benefits resulting from this project are $1,643,490. These benefits were derived using the Windows Vista early adopter data from Microsoft and take into account the assumptions stated in the “Project Description” section.
Download
Get the Microsoft Solution Accelerator for Business Desktop Deployment 2007
Update Notifications
Sign up to learn about updates and new releases
Feedback