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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