improving_it_economics_and_gaining - WHITE P APER Improving...

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W HI TE P AP E R I mprovi ng I T Economi cs and Gaining Business Value with CA’s Enterprise IT Management Software: An ROI Study Sponsored by: CA Randy Perry Eric Hatcher Tim Grieser November 2008 EXECUTIVE SUMMARY Recent dislocations in the world economy have driven IT economics & especially the cost and value of IT operations & to the forefront of IT concerns. With this situation in mind, we present the results of an IDC study, sponsored by CA, to quantify the benefits, cost savings, and return on investment (ROI) that can be achieved by customers using CA’s Enterprise IT Management (EITM) software products to help manage their IT infrastructure and operations. The study is based on using standard IDC ROI methodology to calculate the costs of performing common IT administrative, operational, and support functions (both before and after implementing management software) and calculate a three-year ROI based on IT productivity, user productivity, cost savings, and revenue increase. CA’s EITM software encompasses a wide-ranging portfolio, including Application Performance Management, Infrastructure Management, and Service Management solutions. IDC conducted in-depth survey-based interviews with eight large enterprises, headquartered in North America, concerning their use of CA’s EITM products. These companies have mature IT organizations with heterogeneous server platforms, with an average IT budget of 2.7% of annual company revenue. The companies represent vertical segments in finance, computer services, management services, telecommunications, and entertainment. Key Study Findings The companies interviewed in this study have deployed from one to 13 CA EITM solutions across three categories: Application Performance Management, Infrastructure Management, and Service Management. Results were normalized in terms of per 100 users to get comparable results. Key findings of this study can be summarized as follows. ! All eight companies interviewed in this study experienced positive returns on investment from deploying CA EITM solutions, with an average ROI of 433% over a three-year period and payback of the initial investment in less than one year. ! On average, the companies received annual benefits from using CA EITM solutions of over $76,000 per 100 users. Global Headquarters: 5 Speen Street Framingham, MA 01701 USA P.508.872.8200 F.508.935.4015 www.idc.com
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2 #214817 '2008 IDC ! The most significant benefit generated by the management products is the automation of IT tasks and the subsequent increase in IT productivity. Increased IT productivity accounted for 61.4% of total benefits for the CA customers. ! The companies were able to reduce their downtime significantly, increasing the available hours of productive work. Improvements in user productivity accounted for an average of 21.8% of total benefits. ! Other major benefits included average direct cost savings of $9,621 per 100
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improving_it_economics_and_gaining - WHITE P APER Improving...

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