Forrester Forrester Consulting Study

The Total Economic Impactof Druva inSync

Executive Summary

In June 2014, Druva commissioned Forrester Consulting to conduct a Total Economic Impact (TEI) study and examine the potential return on investment (ROI) enterprises may realize by implementing inSync. The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of inSync on their organizations.

To better understand the benefits, costs, and risks associated with an inSync implementation, Forrester interviewed several customers who implemented inSync. Druva offers inSync as a comprehensive and unified platform for endpoint data protection and governance without compromising end user productivity. Endpoint devices include laptops (PCs or Macs), smartphones, and tablets. For the mobile workforce, inSync offers rich features like seamless endpoint backup, secure file sharing, data loss prevention mechanisms, and data governance capabilities. These features enable full visibility into corporate data stored on any endpoint and can be easily viewed and managed through a centralized console on a single platform. Druva offers both a private (on-premises) and public cloud version of inSync to customers depending on their need and location.

The organizations interviewed wanted to improve backup and recovery of endpoint data in a cost-effective manner as their workforce grew more mobile. A number of these organizations had multiple homegrown and off-the-shelf products implemented on-premises that were not meeting their needs to have a unified and secure platform for endpoint backup and governance. User experience was also a key factor in these organizations’ decisions to choose inSync, as consistent backup and global adoption across the organization were goals.

inSync improves data protection, encryption management, and backup of endpoints while also driving better governance and compliance. The costs and benefits for a composite organization with 3,000 inSync users, based on customer interviews, are:

  • Investment costs: $1.28 million
  • Total cost savings and benefits: $3.77 million

INSYNC IMPROVES DATA PROTECTION FOR MOBILE ENDPOINTS, DRIVES COST SAVINGS, AND IMPROVES PRODUCTIVITY

Our interviews with four existing customers and subsequent financial analysis found that a composite organization based on these companies experienced the risk-adjusted ROI, benefits, and costs shown in Figure 1.1 See Appendix A for a description of the composite organization.

The composite organization analysis points to benefits of $3,771,742 over three years versus implementation costs of $1,278,377, adding up to a net present value (NPV) of $2,493,364.

With inSync, the organizations interviewed were able to improve data protection, security, and backup of endpoints globally; improve compliance and increase efficiency through eDiscovery enablement; enhance the end user experience and increase collaboration with file sync and share; and maximize IT productivity. With inSync’s cloud deployment, a number of the organizations interviewed were also able to realize significant savings from avoiding the cost of additional investment in on-premises solutions.

FIGURE 1 Financial Summary Showing Three-Year Risk-Adjusted Results

Source: Forrester Research, Inc.

Benefits. The composite organization recognized the following benefits from its inSync implementation that represent those experienced by the interviewed companies. These benefits are all expressed in risk-adjusted, net present value terms:

  • Increased compliance with reduced cost of eDiscovery and data collection. By implementing inSync, organizations interviewed were able to decrease time and effort spent on data collection and consequently lower the cost of eDiscovery for their companies. The composite organization saved $213,073 worth of manpower over three years by using inSync for litigation data collection and discovery.
  • Reduced operational overhead for data backup and recovery. Organizations reported improved IT productivity for their staff by deploying inSync. With the centralization of support processes and self-service through Druva, the composite organization saw a 10% increase in productivity for IT administrators focused on data backup, protection, and recovery. These IT productivity savings are valued at $80,790 over three years.
  • Help desk time savings. In addition to IT admin savings, organizations also reported improved productivity for their service desk operations as inSync drove a reduced number of incidents as well as a shorter time-to-issue-resolution for data recovery. Help desk staff for the composite organization improved their productivity by 10% per year, resulting in a three-year productivity savings of $308,904.
  • Improved user experience leading to business end user productivity savings. End users now had an easier process to back up their data and, for some organizations, collaborate with file sync and share, when compared with their pre-inSync environments. At the same time, easier retrieval of and access to data through inSync enabled users to continue to be productive even when incidents occurred. These business end user productivity savings are valued at $974,959 over three years for the composite organization.
  • Cost avoidance savings versus previous on-premises solution. A number of the organizations interviewed stated that investing in inSync was cheaper than upgrading their legacy data backup on-premises solutions to meet their needs. One company estimated they reduced their costs by 40% when considering the storage infrastructure investment they would have had to make without inSync. The composite organization saved $1,836,701 over three years by implementing inSync instead of upgrading its legacy backup solution.
  • Cost savings for separate archiving solution. Using inSync plus the acquisition of a litigation support tool, the composite organization no longer had to invest in a separate archiving on-premises solution. This has saved the composite organization $357,313 over the three-year analysis.
  • Other benefits experienced by the organizations interviewed include improved data protection for endpoints, improved encryption management and backup of endpoints, and ease of management with one platform for data protection and governance.

Costs. The composite organization experienced the following costs, expressed in risk-adjusted present value terms:

  • inSync licensing costs. The composite organization licensed the full suite of inSync, which included file sync and share, governance, data loss prevention, and other services in the cloud, for its 3,000 users. Each user has licenses for inSync on unlimited devices. The total cost to the composite organization for inSync licenses is $1,141,465 over three years.
  • Resource costs for implementation and ongoing management. Organizations interviewed typically took a phased deployment approach for their inSync implementation. These organizations also incurred continuing, albeit minimal, administrative costs for the solution. Total implementation and ongoing management costs of inSync for the composite organization are $136,912 over the three-year analysis.

TEI Framework And Methodology

Introduction

From the information provided in the interviews, Forrester has constructed a Total Economic Impact (TEI) framework for those organizations considering implementing inSync. The objective of the framework is to identify the cost, benefit, flexibility, and risk factors that affect the investment decision.

Approach and Methodology

Forrester took a multistep approach to evaluate the impact that inSync can have on an organization (see Figure 2). Specifically, we:

  • Interviewed Druva marketing and sales personnel, along with Forrester analysts, to gather data relative to inSync and the marketplace for cloud storage.
  • Interviewed four organizations currently using inSync to obtain data with respect to costs, benefits, and risks.
  • Designed a composite organization based on characteristics of the interviewed organizations (see Appendix A).
  • Constructed a financial model representative of the interviews using the TEI methodology. The financial model is populated with the cost and benefit data obtained from the interviews as applied to the composite organization.
  • Risk-adjusted the financial model based on issues and concerns the interviewed organizations highlighted in interviews. Risk adjustment is a key part of the TEI methodology. While interviewed organizations provided cost and benefit estimates, some categories included a broad range of responses or had a number of outside forces that might have raised or lowered them. For that reason, some cost and benefit totals have been risk-adjusted and are detailed in each relevant section.

Forrester employed four fundamental elements of TEI in modeling inSync’s service: benefits, costs, flexibility, and risks.

Given the increasing sophistication that enterprises have regarding ROI analyses related to IT investments, Forrester’s TEI methodology serves to provide a complete picture of the total economic impact of purchase decisions. Please see Appendix B for additional information on the TEI methodology.

FIGURE 2 TEI Approach

Source: Forrester Research, Inc.

Analysis

Composite Organization

For this study, we conducted interviews with representatives from the following four companies that implemented inSync:

  • A US-based commercial contractor and construction company specializing in advanced technology, life sciences, and healthcare projects with approximately 2,000 employees and over $2 billion in annual revenue.
  • A global biopharmaceutical firm with over 5,000 employees and $5 billion in annual revenue.
  • A multinational electronic design automation company with 75 sites globally, 4,500 employees, and over $1 billion in revenue.
  • A Fortune 500 pharmaceutical and health services corporation with over 75,000 employees worldwide.

Based on these interviews, Forrester constructed a TEI framework, a composite company, and an associated ROI analysis that illustrates the areas financially affected. The composite organization that Forrester synthesized from these results represents a large organization of about 4,500 employees with the following additional characteristics:

  • Has $2.5 billion in annual revenue.
  • Is a global organization with multiple sites.
  • Has an IT team of about 50 people.
  • Has 3,000 users of inSync with approximately 1.5 devices each.
  • Uses inSync for backup for laptops and desktops.
  • Will consider using inSync for mobile devices in the future.

The key goal of the composite company, also known as Organization A, was to implement a reliable and secure solution for centralized backup and recovery of endpoint data. A secondary goal was to improve compliance and facilitate an easier data collection process for litigation.

“The most valuable feature of inSync has been the selfserviceability. It is so simple that we can extend that functionality out to any end user and they can manage the backup.”

~Senior director, enterprise architecture, global biopharmaceutical firm

Interview Highlights

Situation

A common theme among the four organizations interviewed was a desire to implement a cost-effective centralized solution for backup and recovery of endpoint data that would result in better end user adoption and improved compliance. Most of the interviewees had a mix of multiple backup products implemented in different parts of their organizations. Other drivers for these organizations included:

  • To prevent data loss and protect data for their increasingly mobile workforce.
  • Inconsistent backup for endpoint data across the organization.
  • Failed implementation of an on-premises backup solution that resulted in low user adoption and high cost.
  • Desire to switch to an in-cloud model for endpoint backup and recovery as infrastructure costs for legacy on-premises solutions were increasing due to the volume of data that required backup.
  • To find a cost-effective process of addressing regulatory issues that required longer retention of data for litigation purposes.
  • Cumbersome and time-consuming data collection and eDiscovery.
Solution

These organizations selected inSync for endpoint data backup and recovery. A number of these organizations also used inSync to enable eDiscovery, compliance, data loss prevention, and data access. There were some organizations that also used inSync for file sync and share for a smaller segment of their users, though this was a less common use case among the interviewees. All the companies interviewed used inSync in the cloud.

“We had an in-house, on-premises solution that we used for about six or seven years prior to inSync. We have 20,000 endpoints, and we wanted something more state of the art.”

~Service delivery manager, Fortune 500 pharmaceutical and health services company

Results

The interviews revealed that organizations experienced the following benefits:

  • Increased compliance and lower costs with improved data collection and eDiscovery enablement. Using eDiscovery tools and data governance for endpoints saved time for previously laborious data collection processes for litigation and compliance.
  • Productivity savings for IT administrators, help desk operations, and business end users. inSync allowed users to access their data faster through self-service and also made the backup and recovery process faster for IT administrators and help desk staff, leading to increased workforce productivity.
  • Cost avoidance savings for on-premises backup and archiving solutions. inSync’s cloud implementation also contributed to significant savings for organizations that were considering making considerable infrastructure investments in on-premises solutions.
  • Improved data protection for endpoints with a global solution. For several customers, inSync was the first time they were able to consistently implement data backup and protection across all endpoints in their organization. They all noted that it was now easier to recover from data loss and retrieve lost information through inSync.
  • Improved encryption management and backup of endpoints, especially for a mobile workforce. Organizations interviewed saw better data loss prevention through inSync with remote wipe, geolocation, and device encryption, features that they did not have in their pre-Druva environments.
  • Ease of management with one platform for data protection and governance. Organizations noted the ease of management with inSync’s single administration interface/console. One organization also noted that even with one unified systems approach for data protection and governance, it also appreciated that inSync would work across multiple platforms, as it is a cross-platform organization.

“With inSync, there are more backups happening. Consistency and regularity are much better than before. We’ve seen a 30% increase in reliability of the backup.”

~Technical architect, multinational electronic design automation company

“inSync gives us security with data in the cloud. We had file encryption and disk encryption stuff before. It’s the data in the cloud and crossing the LAN that was the important part — being encrypted at rest.”

~Technical architect, multinational electronic design automation company

“The key differentiator for Druva is the encryption component. In reality, Druva is not backing up files; they are backing up blocks of data. We have compliance regulations and NDAs, and that encryption is definitely a plus for us.”

~Director for infrastructure and operations, specialized commercial contractor and construction firm

Benefits

Below are the quantified benefits for the composite organization, which reflect those of the organizations interviewed.

Improved Compliance And Reduction In Cost Of eDiscovery And Data Collection

Compliance was a major concern for those organizations interviewed in highly regulated industries such as construction and pharmaceuticals. As more and more of their workers were becoming mobile, with sensitive work information on email and on their laptops, these companies wanted to manage risk and improve compliance. These companies chose inSync for endpoint protection and governance. At the same time, they recognized that inSync would also benefit their data collection and eDiscovery process for litigation. As one CIO noted: “The key factor for us was litigation. With a data retention policy of 15 years, obtaining data from the field is not an easy task.” This organization estimated that it has saved $100,000 in manpower costs for data management and collection for litigation cases with its move to inSync. One organization noted that 50% of its backup team no longer had to support eDiscovery with inSync’s self-service access, while another organization noted that three people in its information security group saw time savings with inSync.

With its inSync implementation, Organization A was able to reduce time spent by its IT data backup team to support the eDiscovery process in litigation cases. Prior to inSync, three people on the backup team had to spend 14 days each on every case. This effort was eliminated with inSync. At an average of five cases a year and an annual fully loaded compensation of $110,500, this represents $89,250 in annual savings for the organization.

Interviewed organizations provided a range of labor savings as a result of faster eDiscovery for litigation to reflect the variability of their pre-inSync environments. To compensate, this benefit was risk-adjusted and reduced by 4%. The risk-adjusted benefit was $85,680 per year. See the section on Risks for more detail.

TABLE 1 Reduction In eDiscovery And Data Collection Costs
Ref.MetricCalculationYear 1Year 2Year 3
A1Number of cases per year555
A2FTEs on backup team for eDiscovery333
A3Hours spent on each case per FTE14 days*8 hours112112112
A4Fully loaded annual compensation$110,500$110,500$110,500
AtCost savings from faster data collectionA1*A2*A3*(A4/2,080)$89,250$89,250$89,250
Risk adjustment4%
AtrCost savings from faster data collection (risk-adjusted)$85,680$85,680$85,680

Source: Forrester Research, Inc.

Reduced Operational Overhead For Data Backup And Recovery

IT administrative savings around data backup, recovery, and protection was a consistent theme among the organizations interviewed. As one biopharmaceutical firm noted: “Productivity benefits — it’s significant for folks in those areas of backup, eDiscovery, help desk, [and] desktop admin. It’s reduced a lot of cycles for them.” With inSync, IT administrators now spend less time managing the data backup, recovery, and protection processes. One technical architect noted that in their pre-inSync environment, “there was hardware to deal with, logs they had to parse, and they had to contact the user.” Interviewees also remarked that the improvement in functionality of inSync’s management console also contributed to time savings for their systems administrators. Estimates of improved productivity for IT administrators among the organizations interviewed ranged from 5% to 15%.

In Organization A’s 50-person IT team, there were six IT administrators focused on data backup, recovery, and protection. These six IT administrators saved, on average, 10% of their time as a result of the inSync implementation. Forrester conservatively estimates that only 50% of those time savings are used for productive work. At an annual fully loaded compensation of $110,500, the total reduction in operational overhead for data backup and recovery is valued at $33,150 per year. This benefit was risk-adjusted and further reduced by 2% for variability. The risk-adjusted total benefit resulting from IT administrative time saved for data backup, protection, and recovery was $32,487 per year.

TABLE 2 IT Administration Savings
Ref.MetricCalculationYear 1Year 2Year 3
B1IT FTEs focused on backup666
B2Average time savings10%10%10%
B3Fully loaded annual compensation$110,500$110,500$110,500
B4Percentage productivity captured50%50%50%
BtIT administration savingsB1*B2*B3*B4$33,150$33,150$33,150
Risk adjustment2%
BtrIT administration savings (risk-adjusted)$32,487$32,487$32,487

Source: Forrester Research, Inc.

Help Desk Time Savings

With inSync’s self-service model, organizations interviewed reported a reduction in the number of service desk support tickets for restoration of lost data and files. For incidents such as lost or stolen laptops or hardware failure, it was now easier to restore files and address data loss. Implementing inSync throughout the organization also centralized the support process and improved help desk efficiency. The organizations interviewed estimated productivity savings ranging from 4% to 10% for their help desk staff with their inSync implementation.

The composite organization had 30 people on its help desk team. It saw its productivity improve by 10% as the time it took to address incidents of data loss decreased and the number of service desk tickets for data loss and recovery were reduced with inSync. At an average fully loaded annual compensation of $84,500 for its help desk staff, which included field engineers, and conservatively assuming that only 50% of that time saved is used for productive work, Organization A’s help desk productivity savings are valued at $126,750 per year. This benefit was risk-adjusted and reduced by 2%, resulting in $124,215 in annual help desk productivity savings for the composite organization.

TABLE 3 Help Desk Productivity Savings
Ref.MetricCalculationYear 1Year 2Year 3
C1Help desk FTEs303030
C2Average time savings10%10%10%
C3Fully loaded annual compensation$84,500$84,500$84,500
C4Percentage productivity captured50%50%50%
CtHelp desk time savingsC1*C2*C3*C4$126,750$126,750$126,750
Risk adjustment2%
CtrHelp desk time savings (risk-adjusted)$124,215$124,215$124,215

Source: Forrester Research, Inc.

Business End User Productivity Savings

With their inSync implementations, the interviewees could now consistently back up data on endpoint devices throughout their organization and improve end user experience for data recovery. Organizations noted that end users could now easily recover the files on their endpoint devices through inSync’s self-service model. One director for infrastructure and operations noted that in their previous environment, users would have to send their laptops to a central location to get their data restored, and they would be without their computers (and thereby, less productive) for a week. This was echoed by interviewees at other organizations — previously, they had an average wait of one week to retrieve files, and now this is less than a day with their inSync implementation. A number of the interviewees also noted that their users had to manually back up their files in the old environment, and now this process is automated with inSync. Organizations that used inSync’s file sync and share feature also saw time savings for a select group of users who were active users of this feature.

Organization A was able to reduce the time to recover lost endpoint data from 40 hours (five days) to 4 hours as its end users could now easily recover their data through inSync instead of sending their computers to IT. These incidents occurred, on average, 10 times a month. Organization A also had a subgroup of heavy users of inSync’s file sync and share feature, and this group saved 30 minutes per week as a result of improved collaboration through file sync and share in the first year of implementation. These time savings improved to 1 hour a week as the users became more adept at using this feature to collaborate.

At an average fully loaded annual compensation of $65,000 per end user, and conservatively assuming that only 75% of these end user productivity savings are captured, the benefit of improved productivity for end users for the composite organization is valued at $284,063 in the first year of implementation. This figure grows to $466,875 in the subsequent years. This business end user productivity benefit was also risk-adjusted and reduced by 2%, resulting in $278,381 in end user productivity savings for Organization A in Year 1.

TABLE 4 Business End User Productivity Savings
Ref.MetricCalculationYear 1Year 2Year 3
D1Incidents per month where user was without a computer101010
D2Previous time without access to data (hours)404040
D3Current time without access to data (hours)444
D4Time savings in data restore/access per incident (hours)D2 – D3363636
D5Users who are file-share pros300300300
D6Time savings in data access/collaboration (hours per week)0.51.01.0
D7Average end user fully loaded annual compensation$65,000$65,000$65,000
D8Total user time savings per year (hours)(D1*D4*12)+(D5*D6*52)12,12019,92019,920
D9Percentage productivity captured75%75%75%
DtEnd user productivity savingsD8*(D7/2080)*D9$284,063$466,875$466,875
Risk adjustment2%
DtrEnd user productivity savings (risk-adjusted)$278,381$457,538$457,538

Source: Forrester Research, Inc.

Cost Avoidance Savings For On-Premises Solution

By implementing inSync in the cloud, these organizations also saw savings from avoiding the cost of implementing and maintaining their own on-premises solution. The services delivery manager at one Fortune 500 corporate noted that the company had an in-house, on-premises solution for about six or seven years and that one of the main benefits of inSync was the savings it achieved by having its endpoint data backup and recovery solution in the cloud instead of on-premises. A director for infrastructure and operations at one company noted that through inSync, it eliminated 50% of the effort to support an environment for an on-premises endpoint backup and recovery solution. This organization estimated that as its endpoint storage needs grew by 15% annually, it would have spent $1.8 million for an on-premises solution versus the $300,000 it would spend for inSync over three years. One global pharmaceutical firm estimated that inSync was 60% cheaper than the storage infrastructure it would have bought and estimated that inSync saved it at least $1.5 million in upfront costs to upgrade its legacy on-premises solution to fit its needs. The organization also noted it would incur additional costs for three full-time equivalents (FTEs) each year to manage the on-premises environment.

With inSync, Organization A avoided an upfront infrastructure investment of $1.5 million to upgrade its storage environment and continue supporting its legacy on-premises solution. By moving to inSync in the cloud, it also saved the cost of two FTEs per year to support and maintain this environment. At an annual fully loaded compensation of $110,500 per FTE, the cost avoidance savings for Organization A is quantified at approximately $1.91 million over three years (present value). This benefit was risk-adjusted and reduced by 4% for variability. The risk-adjusted total benefit of cost avoidance of an on-premises solution savings was $1,836,701 over three years.

TABLE 5 Cost Avoidance For On-Premises Solution
Ref.MetricCalculationYear 1Year 2Year 3
E1Upfront infrastructure investment$1,500,000
E2FTEs required for support/management222
E3Fully loaded annual compensation$110,500$110,500$110,500
EtCost avoidance savings for on-premises solutionE1+(E2*E3)$1,721,000$221,000$221,000
Risk adjustment4%
EtrCost avoidance savings for on-premises solution (risk-adjusted)$1,652,160$212,160$212,160

Source: Forrester Research, Inc.

Cost Avoidance Savings — Archiving Solution

As mentioned earlier, compliance was a growing concern for a number of organizations interviewed and a main factor in their decision to purchase inSync. For these companies, their industries were experiencing increasing regulation. The ability to cost-effectively comply with these regulations to minimize the effect of litigation through more effective eDiscovery was a strategic priority. One organization interviewed stated that its purchase and implementation of inSync in combination with the acquisition of a litigation support tool saved it the cost of investing in a separate archiving solution. This archiving solution would have been a more expensive option for the company.

The composite organization was able to avoid the cost of a separate archiving solution that would have cost $550,000 upfront with an additional $40,000 per year in maintenance. To be able to fully utilize inSync archiving features for its needs, Organization A also acquired an additional litigation support tool that was compatible with inSync at a cost of $250,000. Total cost avoidance savings for the organization over three years have a net present value of $372,201. This benefit was risk-adjusted and reduced by 4% for variability. The risk-adjusted net present value total benefit resulting from cost avoidance of a separate archiving solution was $357,313.

TABLE 6 Cost Savings — Archiving Solution
Ref.MetricCalculationYear 1Year 2Year 3
F1Alternative archiving solution upfront cost$550,000
F2Alternative archiving solution annual maintenance$40,000$40,000$40,000
F3One-time investment for litigation support tool$250,000
FtCost savings — archiving solutionF1 + F2 – F3$340,000$40,000$40,000
Risk adjustment4%
FtrCost savings — archiving solution (risk-adjusted)$326,400$38,400$38,400

Source: Forrester Research, Inc.

Total Benefits

Table 7 shows the total of all benefits across the five areas listed above, as well as present values (PVs) discounted at 10%. Over three years, the composite organization expects risk-adjusted total benefits to be a PV of more than $3.77 million.

TABLE 7 Total Benefits (Risk-Adjusted)
BenefitInitialYear 1Year 2Year 3TotalPresent Value
Reduction in eDiscovery and data collection costs$0$85,680$85,680$85,680$257,040$213,073
IT administration savings$0$32,487$32,487$32,487$97,461$80,790
Help desk time savings$0$124,215$124,215$124,215$372,645$308,904
Business end user productivity savings$0$278,381$457,538$457,538$1,193,456$974,959
Cost avoidance for on-premises solution$0$1,652,160$212,160$212,160$2,076,480$1,836,701
Cost savings — archiving solution$0$326,400$38,400$38,400$403,200$357,313
Total benefits$0$2,499,323$950,480$950,480$4,400,282$3,771,742

Source: Forrester Research, Inc.

Costs

The composite organization experienced a number of costs associated with its inSync solution:

  • inSync licensing costs.
  • Internal resource costs for implementation and ongoing management.

Organization A was already implementing a network upgrade as a separate project, so there were no additional network costs with its inSync implementation.

inSync Licensing Costs

The composite organization purchased inSync for 3,000 users and multiple devices per user and chose a cloud deployment. The implementation included endpoint backup and recovery, file sync and share, data loss prevention, eDiscovery enablement, and compliance. The total cost to the organization for inSync is $450,000 per year. To account for variability in inSync fees depending on each organization’s endpoint backup requirements, this cost was risk-adjusted up by 2%. The risk-adjusted net present value cost of inSync over the three years was $1,141,465. See the section on Risks for more detail.

Resource Costs For Implementation And Ongoing Management

Most of the organizations interviewed took a phased approach with their inSync deployments. Ease of deployment with Druva was a consistent theme, with no training or major changes to the IT process required.

Organization A had four FTEs spending 50% of their time on the initial implementation for three months. The second phase of the deployment took two months for the same four workers at 50% of their time. Following this, Organization A had these same four FTEs each spend 6 hours a month on ongoing management and administration of inSync. The total resource costs for implementation and ongoing management for the composite organization is $124,466 (net present value) over the three-year analysis. As implementation costs may vary by organization, this cost was risk-adjusted up by 10%. The total net present value risk-adjusted internal labor cost for implementation and ongoing management was $136,912.

TABLE 8 Resource Costs — Implementation And Ongoing Management
Ref.MetricCalculationInitialYear 1Year 2Year 3
F1FTE resources used4444
F2Hours spent per FTE2602337272
F3Fully loaded annual compensation$110,500$110,500$110,500$110,500
FtResource costs — implementation and ongoing managementF1*F2*(F3/2080)$55,250$49,583$15,300$15,300
Risk adjustment10%
FtrResource costs — implementation and ongoing management (risk-adjusted)$60,775$54,542$16,830$16,830

Source: Forrester Research, Inc.

Total Costs

Table 9 shows the total of all costs as well as associated present values, discounted at 10%. Over three years, the composite organization expects costs to total a net present value of approximately $1.28 million.

TABLE 9 Total Costs (Risk-Adjusted)
CostInitialYear 1Year 2Year 3TotalPresent Value
inSync licensing costs$0$459,000$459,000$459,000$1,377,000$1,141,465
Resource costs — implementation and ongoing management$60,775$54,542$16,830$16,830$148,977$136,912
Total costs$60,775$513,542$475,830$475,830$1,525,977$1,278,377

Source: Forrester Research, Inc.

Flexibility

Flexibility, as defined by TEI, represents an investment in additional capacity or capability that could be turned into business benefit for some future additional investment. This provides an organization with the “right” or the ability to engage in future initiatives but not the obligation to do so. There are multiple scenarios in which a customer might choose to use inSync and later realize additional uses and business opportunities. Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Appendix B).

The ability to also back up system and application settings is also integrated into the inSync backup and restore solution. With this, customers can gain additional benefits when their organizations go through an OS migration or device refresh as, one interviewee stated, “it is much easier to refresh with data in the cloud.” This organization estimated that the use of inSync for future technology refreshes would save 30% of the time it would normally take its field engineering team to conduct a technology refresh. It also wanted to be able to expand inSync functionality not just to recovery of the files but recovery of the entire desktop as well, noting “there are tremendous benefits as a company to be able to do that very efficiently, and strategically, so that you don’t lose productivity in incidents like hard drive interruption and recovery.”

Additional productivity savings may be realized as organizations expand their use of inSync to other endpoints within the company such as mobile devices (cell phones, iPads, etc.). Organizations also talked about further integrating inSync as part of its compliance and governance ecosystem, with one biopharmaceutical firm stating that building search and indexing type capability in a system to work with inSync would improve its risk management processes. Companies would see gains in enterprise security should they decide to explore this kind of integration for future use.

Risks

Forrester defines two types of risk associated with this analysis: “implementation risk” and “impact risk.” Implementation risk is the risk that a proposed investment in inSync may deviate from the original or expected requirements, resulting in higher costs than anticipated. Impact risk refers to the risk that the business or technology needs of the organization may not be met by the investment in inSync, resulting in lower overall total benefits. The greater the uncertainty, the wider the potential range of outcomes for cost and benefit estimates.

TABLE 10 Benefit And Cost Risk Adjustments
BenefitsAdjustment
Productivity savings2%
All other benefit categories4%
CostsAdjustment
inSync licensing costs2%
Resource costs — implementation and ongoing management10%

Source: Forrester Research, Inc.

Quantitatively capturing investment risk and impact risk by directly adjusting the financial estimates results provides more meaningful and accurate estimates and a more accurate projection of the ROI. In general, risks affect costs by raising the original estimates, and they affect benefits by reducing the original estimates. The risk-adjusted numbers should be taken as “realistic” expectations since they represent the expected values considering risk.

The following impact risks that affect benefits are identified as part of the analysis:

  • IT and help desk productivity savings are dependent on the size and structure of organizations’ IT teams.
  • Business end user productivity savings will vary depending on the number of inSync users and use cases implemented.
  • Existing data backup, archiving, and data collection systems will varty in organizations’ pre-inSync environment.

The following implementation risks that affect costs are identified as part of this analysis:

  • Annual licensing costs are dependent on the scope of the inSync implementation, as some organizations may choose not to implement the full suite of solutions for inSync.
  • Implementation costs could also vary depending on the complexity of the data migration required.

Table 10 shows the values used to adjust for risk and uncertainty in the cost and benefit estimates. Readers are urged to apply their own risk ranges based on their own degree of confidence in the cost and benefit estimates.

Financial Summary

The financial results calculated in the Benefits and Costs sections can be used to determine the ROI, NPV, and payback period for the composite organization’s investment in inSync.

Table 11 below shows the risk-adjusted ROI, NPV, and payback period values. These values are determined by applying the risk-adjustment values from in the Risks section to the unadjusted results in each relevant cost and benefit section.

FIGURE 3 Cash Flow Chart (Risk-Adjusted)

Source: Forrester Research, Inc.

TABLE 11 Cash Flow (Risk-Adjusted)
InitialYear 1Year 2Year 3TotalPresent Value
Costs($60,775)($513,542)($475,830)($475,830)($1,525,977)($1,278,377)
Benefits$0$2,499,323$950,480$950,480$4,400,282$3,771,742
Net benefits($60,775)$1,985,782$474,650$474,650$2,874,306$2,493,364
ROI195%
Payback period0.4 months

Source: Forrester Research, Inc.

Druva inSync: Overview

The following information is provided by Druva. Forrester has not validated any claims and does not endorse Druva or its offerings.

To help solve the risks and challenges associated with proliferation of endpoint devices, Druva created the inSync platform. inSync is a complete and unified IT solution for managing and securing data with no compromise to end user productivity. It has been designed from the ground up with today’s mobile workforce in mind to support bring-your-own-devices (BYOD) policies. inSync offers rich features like seamless endpoint backup, secure file sharing, data loss prevention mechanisms, and data governance capabilities. These features enable full visibility into corporate data stored on any endpoint and can be easily viewed and managed through a centralized console on a single platform.

Growth and complexity of data in the enterprise has increased sharply, thereby driving storage and bandwidth costs up. Druva takes a unique approach to data deduplication (elimination of redundant data) to help customers address these challenges. inSync’s industry-leading and patented global deduplication technology enables customers to dramatically reduce the amount of storage and bandwidth required for backups and file sharing. With inSync’s unique global deduplication, customers can see up to 90% savings in storage space, thereby substantially reducing bandwidth requirements and speeding up backups. inSync backs up data in unique and small independent blocks, resulting in scrambled storage and making it difficult to reassemble the file in case of a breach in the system. In addition, these blocks are encrypted (256 bit AES encryption in flight) to further enhance security, and Druva leverages its world-class security certifications to ensure that data is secured safely. inSync offers both an on-premises and cloud option for its customers depending on their needs. Druva uses Amazon Web Services for its cloud deployment, providing the utmost flexible, reliable, scalable, and secure solution for its customers.

Druva brings to market the first endpoint eDiscovery enablement solution. inSync minimizes cost while increasing end user productivity by enabling organizations to search across custodians, data, and devices; quickly place legal holds; and preserve relevant data in place without the need to export it to an intermediary server. With inSync, organizations can easily improve compliance by facilitating an easier data collection process for litigation or internal investigations.

inSync provides customers:

  • Access to data 24x7x365, enabling business continuity to avoid lost productivity from data loss.
  • Data breach prevention on lost or stolen devices with end-to-end security, including data encryption in transit, in storage, and on-device.
  • Time and resource savings from single-touch mass deployment and centralized management.
  • Increased productivity with self-service restore, mobile and web access to data, plus file sharing in an easy-to-use, integrated solution.
  • Gain up to 90% less storage and increase bandwidth cost savings with global, block, and application-aware deduplication.

Disclosures

The reader should be aware of the following:

  • The study is commissioned by Druva and delivered by Forrester Consulting. It is not meant to be used as a competitive analysis.
  • Forrester makes no assumptions as to the potential return on investment that other organizations will receive. Forrester strongly advises that readers use their own estimates within the framework provided in the report to determine the appropriateness of an investment in inSync.
  • Druva reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study and its findings and does not accept changes to the study that contradict Forrester’s findings or obscure the meaning of the study.
  • Druva provided the customer names for the interviews but did not participate in the interviews.

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More Resources

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