By Mary Gabra, Manager, Market and Competitive Intelligence, HP Networking
When making any big investments, having a third party find that you are doing the right thing makes the decision a lot easier. This is what I typically do before buying a car or going on a vacation. I look at consumer reviews and make sure I have enough information that shows that I am spending my money in a way that would give me an excellent return.
The same applies when your business is making a decision on investing in your infrastructure. Quantifying Return on Investment (ROI) has always been a question that our customers have for sales people. Vendors can tell you how great our products are and how it will save you money all day long—but if you do not see some hard numbers or some kind of independent finding, it is always a challenge to have a convincing argument. So, in that world, the consumer reviews are a combination of solid customer references and some kind of a third-party research that the products do provide a decent ROI.
Total economic impact of investing in HP Networking solutions: you save!
So, let’s see what’s the story here with HP Networking. HP commissioned Forrester Consulting to examine the total economic impact of investing in HP Networking solutions. The purpose of the study was to provide customers with a framework to evaluate the potential financial impact on their businesses if they invest in HP Networking solutions. The way Forrester did that is by highlighting the costs and benefits of deploying HP Networking solutions across the enterprise of a composite organization that it used for the study. This composite organization is created to represent the data gathered from 5 real customers that Forrester conducted in-depth interviews with. These 5 companies are all large enterprises and they also represent different regions (2 from the Americas, 2 EMEA and 1 from Asia Pac). The composite Organization is a Fortune 1000 global enterprise with two main data centers and several regional campus locations.
Forrester took the data gathered from the customers, deployed their own methodology and models and concluded that HP Networking solutions would provide a “favorable risk-adjusted ROI of 47%, along with a 20-month payback period (breakeven point).” Forrester stated that this” raises confidence that the investment is likely to succeed, as the risks that may threaten the project have already been taken into consideration and quantified. In this study, risks have been modeled conservatively in the hopes of showing worst-case expectations.” See table below on the summary of the ROI result.
What I found most interesting about this customer research was that the initial purchase cost or “price” wasn’t a significant factor for HP’s overall economic benefit. My experience has been that HP often gets lumped into the “lower cost/better value” networking alternative—which in some cases is certainly valid based on the product line. In this enterprise customer-focused research, however, the HP ROI came almost exclusively from savings on the network/IT operational cost-savings side. This type of meaningful, annualized OPEX savings is critical for customers to help reduce their overall IT budget—where OPEX typically consumes as much as 70% of the total spend.
The total savings computed in this study is due to savings from using HP’s single pane of glass management platform (IMC), HP’s high availability solutions due to its unique Intelligent Resilient Framework (IRF), HP’s security solutions as well as HP’s industry leading warranty polices.
The study also concluded that organizations that are likely to achieve similar results are new Greenfield projects and enterprises that have a disparate, complete legacy environment, which includes the high cost of supporting multiple operating systems, versions, releases and networking tiers and platforms.
Don’t just listen to us. Listen to expert analysts and real customers.
So, to conclude here, it is not just HP Networking saying it provides you with compelling ROI benefits. This comes from the lips of customers and the findings of a reputable research firm like Forrester. This study serves the network manager or CIO making that investment by helping you sleep well at night knowing that you made the right decision.
If you are interested in getting more details, the full Forrester study, The Total Economic Impact of HP Networking Solutions (March 2012), is availabl.... Then please share your thoughts and insights on how your business is boosting ROI through infrastructure investments.