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How much is faster collaboration worth to businesses?
Wednesday, November 10, 2010
Over the last few years, saving money on an email solution has been the most common driver for companies switching from legacy on-premises systems to
Google Apps
. But customers aren’t just using Google Apps for email. They’re also adopting innovative teamwork tools like web-based documents, spreadsheets, presentations and project sites, and we now know the value of improved productivity by “going Google” is actually even larger than the substantial cost savings.
To quantify the complete value of Google Apps including collaboration and productivity benefits, we enlisted the help of Forrester Consulting to measure the “Total Economic Impact” that a typical company can expect over three years, moving from legacy on-premises infrastructure to Google’s web-based solution. After dozens of in-depth customer and stakeholder interviews and hundreds of survey responses from IT administrators and end-users, we're excited to share the research results, and we invite you to
download and share Forrester's report
.
The key findings of Forrester’s analysis bring the benefits of Google Apps into sharp focus. The following results are what a typical large customer with 18,000 employees and several offices around the world can experience by making the switch.
Over 300% ROI
The return on investment of switching to Google Apps is 391%. (307% after adjusting for risk.) In plain English, for every dollar spent on Google Apps, the system pays back the initial investment and more than three more dollars in additional business value.
Dramatically improved productivity
The value of improved productivity from Google Apps is even greater than costs saved by making the switch. Features like fast email search, integrated IM, message threading, great spam filtering, collaborative sites and real-time, multi-person collaboration in documents, spreadsheets and presentations all contribute to the productivity improvements quantified by Forrester.
Break-even under 7 months
The break-even payback period of switching to Google Apps is very short – faster than seven months. After the investment quickly pays for itself, the productivity gains from Google Apps continue to grow year after year.
NPV over $10,000,000
The risk-adjusted Net Present Value (NPV) of switching to Google Apps is over $10,000,000 for the typical large business. Productivity gains contribute over $7,000,000 to this amount.
Of course, both Google and Forrester strongly advise readers to conduct their own impact analysis when evaluating Google Apps, but this research solidifies what the Google Apps team has been hearing loud and clear from customers about the business benefits they’ve experienced. If you’re already using Google Apps, we’d love to hear
your story
too, and maybe even feature your organization in the future.
Posted by Jeremy Milo, Google Apps Marketing Manager
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