Originally published on VMware Cloud Blog by Bill Roth
We’re pleased to announce the new Forrester Total Economic Impact™ (TEI Study) entitled “The Total Economic Impact™ Of VMware Cloud On AWS: Cost Savings and Business Benefits Enabled By VMware Cloud On AWS.” You can download the entire study here (details required to access). This study updates a study we published in 2019 with newer data, taken from customers who are using the service.
What is a Forrester Total Economic Impact report?
What is a Forrester TEI study? Forrester describes it as developing “business value justification analysis to help organizations understand the financial impact of a technology investment.” You can find more about the Total Economic Impact methodology here. Essentially, the process involves talking to a number of our customers and asking them about their experiences using VMware Cloud on AWS. All we do is provide the names. We, the vendor, are not allowed to be part of the conversation or know what they said. All we see is the final report. Once the team at Forrester has discussions with the customers, they take the discussions and create a composite sample customer. Then they build a model based on their TEI methodology and write the paper. We, the vendor, get to make comments on the draft, but Forrester will not do anything to alter the fundamental conclusions.
The New Total Economic Impact Report
So, what does the new report say? In short, there we some great statistics in the report. The composite organization:
- Saved $1M by avoiding application redesign (p. 1)
- Reduced labor hours by 50% for infrastructure operations (p. 2)
- Saw a 99% ROI over 3 years (p. 3), which means for every $1 they spent, they got back $1.99.
- Saw a 53.4% reduction in infrastructure (p. 4)
The best part of the TEI study is that they show you the math. After a summary of the conclusions, the report shows the makeup of the composite organization (p. 8), and the composite workload derived from it. The report then goes into the underlying calculations in the section “Analysis of Benefits”(p. 9).
Calculating the VMware Cloud on AWS Savings
It is reasonable to ask how savings are calculated. At VMware, our Cloud Economics group has built its own model for helping customers understand the value of the VMware Cloud platform. This group has done well north of 2000 analyses and sees roughly the same results. To understand how VMware has calculated the value of VMware Cloud on AWS, download the whitepaper: “Comparing VMware Cloud to Traditional Public Cloud by Total Cost of Ownership“.
The friendly folks at Forrester have also helped us with several customer case studies they call Total Economic Impact Spotlights. Here are the latest Spotlights:
- Digital Media Company
- Health Care Leaders
- Public University
- Financial Services Company
- Other VMware Cloud on AWS TEI Spotlights here
Note: Total Economic Impact is a trademark of Forrester Research Inc.