PRESENTATION BASED ON MAY 2010 REPORT:

THE TOTAL ECONOMIC IMPACT OF OFFICE 2010, BY FORRESTER CONSULTING

Forrester’s Total Economic Impact of Office 2010

Disclosures

The reader should be aware of the following: The study is commissioned by Microsoft and delivered by the Forrester

Consulting group. Microsoft reviewed and provided feedback to Forrester, but Forrester

maintained editorial control over the study and its findings. The customers for the interviews were provided by Microsoft. Forrester makes no assumptions as to the potential benefits that other

organizations will receive. Forrester strongly advises that readers should use their own estimates within the framework provided in the study to determine the appropriateness of an investment in Microsoft Office 2010.

This study only compares the economic impact of migrating from Office 2007 to Office 2010. For organizations that are currently running Office 2003, this study does not include any additional benefits your organization may receive by moving from Office 2003 to Office 2010, nor does it take into account any additional hardware or migration costs and the risks associated with those costs.

This study is not meant to be used as a competitive product analysis.

Findings: Costs & Benefits of Office 2010

Resulting risk adjusted net present value (NPV) over $7 million, and payback period of 5 months. The resulting risk-adjusted NPV of deploying Office 2010 is $7,415,413.

The payback period is a very quick five months. NPV (risk adjusted) per information worker over $1,400.

*The Organization in this study bought Office 2007 Professional Plus licenses 3 years ago, so it is now renewing its Software Assurance agreement for three years.

Benefits over $9 million. ◦ Quantified benefits accruing to the

Organization amount to $9,044,685 (risk-adjusted, PV) over a three-year period.

Costs of $1.6 million. ◦ The costs for the upgrade to Office

2010 total $1,629,272 present value (PV). Costs include internal labor and Software Assurance renewal fees.*

Benefits for an organization of 5000 information workers, moving from Office 2007.

Costs

“The upgrade to Office 2010 has been easier than previous upgrades — less employee training, fewer help desk calls, and less deployment time for IT.”

-IT operations leader, electronics manufacturing services provider

Forrester found two main sources of cost: deployment and SA renewal fees Deployment: Internal Labor costs — $16,922

With an average fully loaded hourly compensation of $52.88, the total internal labor cost to deploy Office 2010 was $16,922.

License renewal: cost $129.67 each per each of the 5,000 devices in each of Years 1, 2 and 3 for a total cost of $1,945,050

All customers interviewed agreed that the migration from Office 2007 to Office 2010 beta was easier than the earlier migration from Office 2003 to Office 2007, both from an IT deployment standpoint and user-adoption standpoint.

Benefits

“With Office 2010, we can work together in a variety of locations in different time zones in a more cost-effective manner. Co-authoring plus offline access [using SharePoint Foundation Server] make this possible.”

-Director of collaboration and network services, IP and Ethernet solutions provider

Forrester found benefits in four key areas: Simultaneous Co-Authoring — $6,750,900

Benefits of using co-authoring for sales and bidding process amongst 600 sales professionals

OneNote 2010 — $1,980,265 Benefits of using OneNote shared notebooks within an estimated 40 teams to share

data, notes and project information Elimination Of Third-Party Photo/Video Editing Tools — $68,655

Reduced cost of licensing and supporting a third-party photo and video editing tool “Can‘t Live Without Features” Of Office 2010 — $13,631,625

Benefit of “non-headline-grabbing” features of Office 2010. Interviewees (actual customers) described these features as providing productivity benefits that they were not able to quantify on a “per-feature” basis. However, Forrester often heard comments such as “I love it” and “Now that I’ve seen it, I can’t live without it.”

Return on Investment

Appendix

Composite Organization

• All 5,000 information workers currently using Microsoft Office 2007

• Operations in multiple offices across the US, Europe and Asia

US-based company of

5000 information workers

• Reduce costs of team document collaboration• Improve email management• Ensure competitive edge as early adopters of new technology

• Upgrade to Office 2010 without adding new hardware costs

• Reduce the number of vendors’ tools/applications deployed

Goals in Office 2010

deployment:

Methodology

Forrester’s Total Economic Impact™ (TEI) methodology has four primary components:

Given the increasing sophistication that enterprises have regarding cost analyses related to IT investments, Forrester’s TEI methodology can be a tool to help estimate the benefits associated with any project.

Costs

Benefits

Flexibility

Risk

Forrester’s Approach

1. Forrester gathered data from existing Forrester research

relative to next-

generation iWorker

productivity tools

2. Forrester interviewed

Microsoft marketing, sales, and product

management personnel

3. Forrester conducted a series of in-

depth interviews with seven

organizations that, at the time, were using the

Office 2010 beta version.

4. Forrester created a composite

Organization based on the

interviews and

populated the financial framework using data from the

interviews

5. Forrester constructed a financial

model representativ

e of the interviews, which was

used to determine the costs,

benefits and risks of

deploying Microsoft

Office 2010.

Additional Total Economic Impact Studies

Office 2010 TEI

SharePoint 2010 TEI

Exchange 2010 TEI

OCS 2007

R2 TEI

Better Together TEI

Each product has a Total Economic

Impact study available for

review.

In addition, a cross-product

study estimates the “better together” benefits of

deploying the entire stack of

server and client products.