New Analysis - VMware BlogsNew Analysis . April 23, 2008 . Prepared For: Valued Customer Name . Valued Customer Company . Address . ... The results in this report were created from

New Analysis

April 23, 2008

Prepared For: Valued Customer Name

Valued Customer Company Address

Phone Number Web Site

E-mail address

Prepared By:

<name removed> vmware

Third party model, methodology and data provided by:

Disclaimer: The information contained in this presentation represents the current view of Microsoft Corporation on the issues discussed as of the date of publication. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information presented after the date of publication. This white paper is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED, OR STATUTORY, AS TO THE INFORMATION IN THIS DOCUMENT. Complying with all applicable copyright laws is the responsibility of the user. Without limiting the rights under copyright, no part of this document may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise), or for any purpose, without the express written permission of Microsoft Corporation. Microsoft may have patents, patent applications, trademarks, copyrights, or other intellectual property rights covering subject matter in this document. Except as expressly provided in any written license agreement from Microsoft, the furnishing of this document does not give you any license to these patents, trademarks, copyrights, or other intellectual property of Microsoft. © 2007 Microsoft Corporation. All rights reserved.

ROI Analyst™

Copyright © 2001-2008 Alinean, Inc. Page 2

1. Project Overview This ROI and TCO Analysis was created specifically for Valued Customer Company, with research and analysis completed on April 23, 2008. The Microsoft Integrated Virtualization Business Value Analyst was developed independently by ex-Gartner ROI experts from leading ROI tool developer Alinean, Inc. This analysis will help your organization determine the consolidation benefits and TCO advantages of Microsoft's Integrated Virtualization as a key component of moving to Dynamic Core Infrastructure Optimization. The results in this report were created from the Valued Customer Company’s own profile and opportunity metrics (specifically provided by the team) and industry research metrics and financial calculations contained in the Alinean ROI Analyst™ software, an independent financial modeling tool and model developed by worldwide leading and independent analyst ROI consultancy Alinean, The IT Value Experts (http://www.alinean.com).

2. Executive Summary For this analysis a TCO comparison and a risk adjusted cost-benefit analysis of the proposed solution's impact was conducted. Comparing the Solution A: Current (As Is) with Solution B: With Microsoft Integrated Virtualization (To Be) results in a $46,272,174 advantage for With Microsoft Integrated Virtualization (To Be). Comparing the proposed costs and benefits of Solution B: With Microsoft Integrated Virtualization (To Be) versus the As Is opportunities, it was projected that implementing the proposed solutions resulted in $50,756,332 of 3 year cumulative benefits for Valued Customer Company. Of these projected benefits, $40,232,767 are direct (hard) benefits and $10,523,565 are indirect (soft) benefits. Top cumulative benefits for the project include key impacts to specific PC cost categories including:

- Internal Application Time to Market - $6,068,516 - Desktop Virtualization Client Replacement Capital Cost Avoidance - $5,928,316 - Microsoft Integrated Virtualization Licensing Costs - $5,430,884 - Existing Production Server Cost Avoidance - $4,497,483 - Production Server Unplanned Downtime Avoidance - $3,719,330 - Production Server Operations and Administration Efficiency Savings - $2,653,702 - Desktop Virtualization Client Replacement Labor Cost Avoidance - $2,564,592 - Production Server Change Management Efficiency Savings - $2,465,821 - Development and Test Lab Server Provisioning Efficiency Savings - $2,111,618 - Desktop Virtualization Client Change Management Cost Avoidance - $1,829,476

These benefits to Valued Customer Company can be grouped regarding business impact as: - $40,232,767 in IT cost reductions - $10,523,565 in business operating efficiency improvements

The proposed project is expected to help Valued Customer Company meet the following goals and drive the following benefits:

- Reduce IT Capital Costs $25,319,577 - Reduce IT Operations and Administration Costs $12,500,184 - Improve Business Agility $6,068,516 - Reduce Unplanned Downtime $3,719,330 - Reduce Facilities and Overhead Costs $2,398,990 - Improve User Productivity $613,994 - Reduce Business Risk $86,148 - Reduce Planned Downtime $49,592

ROI Analyst™


The proposed project is expected to deliver the following benefits to specified stakeholders of Valued Customer Company:

- PC Manager $21,817,926 - IT Director $17,015,153 - VP Application Development $11,923,253

To implement the proposed project will require Valued Customer Company to make a 3 year cumulative investment of $7,374,577 including:

- $5,982,366 in initial expenses - $5,558,472 in capital expenditures - $1,816,105 in operating expenditures

Comparing the costs and benefits of the proposed project using discounted cash flow analysis and factoring in a risk-adjusted discount rate of 9.5%, the proposed business case predicts:

- Risk Adjusted Return on Investment (RA ROI) of 497% - Return on Investment (ROI) of 588% - Net Present Value (NPV) savings of $35,479,893 - Internal Rate of Return (IRR) of 276% - Payback period of 6.0 month(s)

Note: The project has been risk-adjusted for an overall deployment schedule of 3 months, realized benefits to include 100.0% of direct benefits and 100.0% of indirect benefits and a deployment schedule (adoption curve) of 100.0%,100.0%, and 100.0% over each successive year of the analysis.

3. Valued Customer Company’s Organization Profile For Valued Customer Company, we determined the following organization profile: • Industry: Aerospace and Defense • Primary Operating Locations: United States • Primary Site Locations: Suburban • Total number of employees in the organization: 6,000 The goal(s) of this project analysis include: (√) Production Server Virtualization (√) Development and Test Lab Virtualization (√) Desktop and Application Virtualization Current (As Is) Production Server Profile The current (as is) profile for production servers (before Microsoft Integrated Virtualization is as follows: Production Server / Server

Group Name Number of Servers Server Type

File / print servers 200 2 CPU E-mail servers 50 4 CPU Application servers 40 2 CPU Database servers 24 4 CPU Web servers 50 2 CPU Failover Servers 50 2 CPU Total 414 976 CPUs in total Current (As Is) Development and Test Lab Server Profile The current (as is) profile for development and test lab servers (before Microsoft Integrated Virtualization is as follows:

ROI Analyst™


Development and Test Lab Server / Server Group

Name

Number of Servers Server Type

Development servers 20 2 CPU Unit test servers 40 2 CPU Integration test servers 40 4 CPU Database test servers 20 4 CPU Other development, test and QA servers

0 2 CPU

Failover Servers 0 2 CPU Total 120 360 CPUs in total Current (As Is) Desktop and Application Profile The current (as is) client profile for systems that are under consideration for virtualization:

Client System Profile Desktop PCs Notebook PCs Number of client systems that are candidates for virtualization

3,300 2,700

Expected increase in the number of PCs (starting in year 1)

10.0% 10.0%

Typical upgrade cycle on these client systems (useful life before replacement, in months)

36 36

4. Microsoft Integrated Virtualization Proposed Solution for Improvement for Valued Customer Company

Based on analyzing the overall consolidation opportunities for Valued Customer Company, the following virtualization is recommended: Production Server Virtualization with Microsoft The expected production server utilization planned with Microsoft Server Virtualization is 80.0%, resulting in an expected server consolidation ratio of 5.8 current servers to 1 new server.

Server / Server Group Name

Number of Servers to Consolidate To

Server Type Total Number of VMs to Support

Type of Virtual Server License

Consolidated Production Servers

71 4 CPU 414 Windows Server 2008 Standard

Specify name 0 4 CPU 0 Windows Server 2008 Standard





Total 71 284 CPUs in total 414

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Production Server Virtualization – Competitive Cost Comparison

Production Servers With Microsoft Server Virtualization

Solution With Competitive Server Virtualization

Solution Windows Server 2008 Licensing $51,049 $51,049 Windows Server 2003 Licensing $0 $0 Credit for prior SA Agreements $0 $0 Cost for new SA Agreements $0 $0 Virtualization Management $274,164 $1,091,970 Total $325,213 $1,143,019 Development and Test Lab Server Virtualization with Microsoft The expected development and test server utilization planned with Microsoft Server Virtualization is 80.0%, resulting in an expected server consolidation ratio of 4.6 current servers to 1 new server.


Number of Servers Server Type Total Number of VMs to Support

Type of Virtual Server License

Consolidated Development / Test Servers

26 4 CPU 120 Windows Server 2008 Standard






Total 26 104 CPUs in total 120 Development and Test Lab Server Virtualization – Competitive Cost Comparison

Development and Test Lab Virtualization With Microsoft Lab Virtualization Solution

With Competitive Lab Virtualization Solution

Windows Server 2008 Licensing $18,694 $18,694 Windows Server 2003 Licensing $18,694 $18,694 Credit for prior SA Agreements $0 $0 Cost for new SA Agreements $0 $0 Virtualization Management $86,460 $437,940 Total $123,848 $475,328 Desktop and Application Virtualization with Microsoft

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The type of desktop and application virtualization to be implemented with Microsoft is as follows:

Included? Number of Clients Supported for each

Solution Type (√) Terminal Services 6,000 (√) Hosted Desktop using Windows Vista Enterprise Centralized Desktops 6,000 ( ) Virtual PC 0 (√) Managing images, applications and deployments with Microsoft

Systems Center Virtual Machine Manager 6,000

(√) Application Virtualization using Microsoft MDOP's Softgrid Application Virtualization

6,000

Desktop and Application Virtualization – Competitive Cost Comparison Desktop and Application

Virtualization With Microsoft Desktop Virtualization

Solution With Competitive Desktop Virtualization

Solution Client licenses $958,800 $900,000 Host Server Virtualization software $0 $1,380,000 Virtualization Management Software and Host Server $0 $7,000 Server hardware and OS costs $2,933,600 $3,520,320 Microsoft System Center (including VMM) $258,000 $0 Connection Broker Client licenses $300,000 $300,000 Connection Broker hardware $1,300 $1,300 Total $4,451,700 $6,108,620

5. The Value of Virtualization An infrastructure built with well-managed virtualization will result in lower costs, higher service levels, and greater agility. Specifically, these benefits derive from:

• Server consolidation—By consolidating multiple workloads onto a single hardware platform, you can maintain “one application/one server” while reducing physical server sprawl. This allows you to fully provision the business with less hardware, resulting in lower equipment costs, less electrical consumption for server power and cooling, and requiring less physical space for the server farm.

• Maximized uptime—By compartmentalizing workloads, you prevent one application from impacting

the performance of another, or causing a system crash. Even less stable legacy applications can be operated in a secure, isolated environment.

• Robust disaster recovery—A virtualization strategy allows you to maintain an instant fail-over plan that

provides business continuity throughout disruptive events. With the right tools, you can enable automated back-up, replication, and rapid movement of servers, desktops, and applications.

• Reduced application compatibility testing—By virtualizing applications and delivering them on

demand to desktops, application-to-application conflicts are nearly eliminated. This significantly reduces the amount of regression testing that is required prior to deployment and prevents most compatibility problems.

ROI Analyst™


• Support legacy and LOB applications—Terminal Services and/or desktop virtualization can enable

applications written on older operating platforms to be supported in a current operating system without software code revisions.

• Efficient server maintenance—The flexibility of shifting workloads between physical servers with

minimal disturbance to their operation allows planned server maintenance to be performed without service disruption.

• Streamlined provisioning—Adding workload resources can be accelerated and decoupled from a

hardware acquisition process. If a particular business process requires additional capability to meet business needs (say, a web commerce engine), adding this capability is streamlined and immediate. In an advanced virtualized environment, workload requirements can become self-provisioning, resulting in dynamic resource allocation.

• Reduced complexity—When managing your virtual infrastructure with the same tools for physical

assets, you can reduce system complexity and streamline changes made to the overall infrastructure.

The Use Cases for Virtualization Adopting virtualization across the enterprise should naturally follow a maturation curve. While each scenario provides concrete and compelling benefits, it is best if an organization adopts these approaches in a reasonably defined order. Different circumstances will dictate some modification to this sequence, but the following roadmap can provide guidance on how to best employ virtualization in your organization. Test and Development Environment The natural place to begin piloting all types of virtualization is in the test and development environment. IT managers can model the OS, application, security, and management environment prior to putting these into production in a more streamlined and efficient way, providing greater flexibility and quickly identifying potential conflicts. Virtualization provides the mechanism to rapidly model different environments and experiment with different scenarios, without significant expansion of hardware and physical resources. Typically, virtualization in this scenario is more of a skunkworks project, with the IT staff experimenting with the technology and learning how to manage virtual machines and applications. Production Server Infrastructure Consolidating workloads from a large array of discrete, underutilized physical servers to an environment where complimentary workloads are isolated and aggregated onto a smaller number of physical servers is the most common application of this technology, and is where immediate cost savings can be realized. Server consolidation is an ongoing process—it is more of a journey than an end state. Early on, IT organizations can and should focus on non-business critical production workloads, to harvest the low-hanging fruit while learning how to efficiently manage virtual and physical servers across their infrastructure. As their processes become more mature and the expertise improves, a more proactive strategy that includes business-critical applications makes sense for consolidation. Here, the benefits in disaster recovery and business continuity become more critical than simply cost savings. Finally, as the IT organization becomes adept at managing critical and tactical workloads across a rationalized server infrastructure, it can use virtualization to dynamically assign resources to improve flexibility and scale—increasing the strategic value to the organization. With the right tools and policy-based business processes, the IT organization provides an extremely responsive IT infrastructure that supports business demands while efficiently controlling costs. Desktop Infrastructure - Applications Managing numerous desktop images drives up IT cost and consumes significant IT resources, as does maintaining up-to-date applications and security patches. By separating the application layer from the operating system on the desktop image, an IT organization can remove much of the complexity and management challenges it faces every day. Significant application-to-application regression testing is typically required before deploying a major application or OS update. In an environment where applications are virtualized and delivered on demand to the desktop, application-to-application conflicts are nearly eliminated, since the applications execute without impacting the desktop operating system—or other applications. In addition, application maintenance and security patching is streamlined, since it only

ROI Analyst™


needs to take place at the source, not hundreds or thousands of individual desktops. This not only reduces labor needed for desktop maintenance, but ensures that any security vulnerabilities are adopted immediately and comprehensively. For application to OS compatibility issues, you can use a combination of desktop virtualization and presentation virtualization to run an application in its legacy operating system, hosted on the current desktop. Desktop infrastructure—Presentation In certain circumstances, it is critical that all data reside in a central location rather than becoming distributed across a constellation of desktop PCs. This might be due to confidentiality concerns, regulatory requirements, or end-user mobility needs. A virtualized presentation configuration places all data storage and processing in a central location, with the desktop being simply a presentation of the user interface. Storage and network resources Enterprise Storage and Networks Virtualizing enterprise storage and networks provides another avenue to consolidate resources for greater flexibility and scale. Managing storage and network resources in a virtual environment streamlines resource allocation, provisioning, and maintenance while reducing the apparent system complexity IT managers work with day to day. Overall infrastructure—Business Continuity Converting operating system and application instances into data files streamlines backup, replication and movement, providing a more robust business continuity capability and speeding recovery in the case of an outage or natural disaster.

6. TCO Analysis and Benefit Summary for Valued Customer Company Comparing the Solution A: Current (As Is) with Solution B: With Microsoft Integrated Virtualization (To Be) results in a $46,272,174 advantage for Solution B. For this analysis, the cumulative 3 year TCO comparison for Valued Customer Company is as follows: TCO Comparison Cumulative 3

Year Solution A Current (As

Is) Solution B With

Microsoft Integrated Virtualization (To Be)

Difference (A - B)

Difference (A - B)%

IT Costs Existing Production Server Cost Avoidance

$6,871,794 $2,374,311 $4,497,483 65.4%

New Production Server Purchase Cost Avoidance

$1,478,562 $568,497 $910,065 61.6%

Production Server Power and Cooling Savings

$1,850,393 $392,624 $1,457,769 78.8%

Production Server Space Savings

$522,770 $29,750 $493,020 94.3%

Production Server Networking Savings

$300,960 $77,520 $223,440 74.2%

Production Server Networked Storage Savings

$861,840 $152,760 $709,080 82.3%

Production Server Provisioning Efficiency Savings

$97,120 $2,984 $94,136 96.9%

Production Server Change Management Efficiency Savings

$3,350,367 $627,332 $2,723,035 81.3%

Production Server Operations and Administration Efficiency Savings

$3,530,756 $600,241 $2,930,515 83.0%

Existing Development and Test Lab Server Cost Avoidance

$2,534,580 $869,466 $1,665,114 65.7%

New Development and Test Lab Server Purchase Cost Avoidance

$520,997 $686,466 ($165,469) -31.8%

Development and Test Lab Server Power and Cooling Savings

$659,333 $143,777 $515,556 78.2%

ROI Analyst™


Development and Test Lab Server Space Savings

$191,258 $11,051 $180,207 94.2%

Development and Test Lab Server Networking Savings

$125,400 $29,640 $95,760 76.4%

Development and Test Lab Server Networked Storage Savings

$248,520 $57,000 $191,520 77.1%

Development and Test Lab Server Provisioning Efficiency Savings

$2,582,230 $258,222 $2,324,008 90.0%

Development and Test Lab Software Bug Reproduction Savings

$315,933 $31,595 $284,338 90.0%

Development and Test Lab Support Savings

$1,488,829 $153,584 $1,335,245 89.7%

Desktop Virtualization Client Replacement Capital Cost Avoidance

$10,649,400 $4,997,278 $5,652,122 53.1%

Desktop Virtualization Client Replacement Labor Cost Avoidance

$3,806,120 $1,179,658 $2,626,462 69.0%

Desktop Virtualization Power Cost Avoidance

$1,595,697 $1,595,697 $0 0.0%

Desktop Virtualization Client Software License Cost Avoidance

$771,576 $231,473 $540,103 70.0%

Desktop Virtualization Client Configuration Management Cost Avoidance

$471,346 $141,402 $329,944 70.0%

Desktop Virtualization Client Change Management Cost Avoidance

$2,549,174 $546,196 $2,002,978 78.6%

Desktop Virtualization OS Upgrade Labor Cost Avoidance

$0 $0 $0 0.0%

Desktop Virtualization Client Operations and Support Efficiency

$3,415,015 $1,456,686 $1,958,329 57.3%

Desktop Virtualization Branch Office Server Cost Avoidance

$3,278,880 $2,295,216 $983,664 30.0%

Desktop Virtualization Heterogeneous OS Cost Avoidance

$0 $0 $0 0.0%

Desktop Virtualization Security Incident Labor Avoidance

$98,490 $59,095 $39,395 40.0%

Desktop Virtualization Disaster Recovery Labor Avoidance

$2,054 $821 $1,233 60.0%

Microsoft Integrated Virtualization Licensing Costs

$0 $0 $0 0.0%

Microsoft Integrated Virtualization Implementation and Training Costs

$0 $0 $0 0.0%

Desktop Virtualization PC Recovery Labor Avoidance

$90,283 $27,083 $63,200 70.0%

PC Data Management Risks $51,594 $36,116 $15,478 30.0% Total IT Costs $54,311,271 $19,633,541 $34,677,730 63.8% Business Operating Costs Production Server Planned Downtime Avoidance

$60,983 $6,273 $54,710 89.7%

Production Server Unplanned Downtime Avoidance

$4,573,809 $470,639 $4,103,170 89.7%

Production Server Disaster Recovery Time Savings

$55,977 $23,568 $32,409 57.9%

Internal Application Time to Market

$13,385,005 $6,706,106 $6,678,899 49.9%

ROI Analyst™


Desktop Virtualization Service Desk User Savings

$636,990 $242,058 $394,932 62.0%

Desktop Virtualization End User Operations Savings

$298,008 $14,899 $283,109 95.0%

Desktop Virtualization Security Risk Avoidance

$44,700 $26,823 $17,877 40.0%

Desktop Virtualization Disaster Recovery Risk Avoidance

$932 $278 $654 70.2%

Desktop Virtualization PC Recovery Risk Avoidance

$40,976 $12,292 $28,684 70.0%

Total Business Operating Costs $19,097,380 $7,502,936 $11,594,444 60.7% Business Strategic Costs Production Server Planned Downtime Avoidance - Revenue Impact

$0 $0 $0 0.0%

Production Server Unplanned Downtime Avoidance - Revenue Impact

$0 $0 $0 0.0%

Production Server Disaster Recovery Time Savings

$0 $0 $0 0.0%

Revenue Generating Application Time to Market

$0 $0 $0 0.0%

Total Business Strategic Costs $0 $0 $0 0.0% Total $73,408,651 $27,136,477 $46,272,174 63.0%

Comparing the As Is current costs and opportunities to the proposed solution yields expected benefits of $50,756,332 over the 3 year analysis period, with $40,232,767 in direct (hard) benefits, and $10,523,565 in indirect (soft) benefits.

Benefits Summary Year 1 Year 2 Year 3 Total Total Benefits (to Solution B from Current (AS IS))

$17,046,755 $19,031,657 $14,677,919 $50,756,332

ROI Analyst™


Top Benefits Internal Application Time to Market (Indirect)

$1,513,346 $2,169,129 $2,386,042 $6,068,516

Desktop Virtualization Client Replacement Capital Cost Avoidance

$2,413,125 $3,458,925 $56,266 $5,928,316


$3,441,490 $1,491,764 $497,630 $5,430,884

Existing Production Server Cost Avoidance

$1,499,161 $1,499,161 $1,499,161 $4,497,483

Production Server Unplanned Downtime Avoidance (Indirect)

$905,009 $1,322,519 $1,491,802 $3,719,330

Production Server Operations and Administration Efficiency Savings

$638,995 $941,452 $1,073,256 $2,653,702

Desktop Virtualization Client Replacement Labor Cost Avoidance

$837,485 $1,225,912 $501,194 $2,564,592

Production Server Change Management Efficiency Savings

$593,754 $874,798 $997,269 $2,465,821

Development and Test Lab Server Provisioning Efficiency Savings

$526,588 $754,776 $830,254 $2,111,618

Desktop Virtualization Client Change Management Cost Avoidance

$481,238 $660,900 $687,337 $1,829,476

All other included benefits $4,196,564 $4,632,321 $4,657,708 $13,486,594 Total Top Benefits $17,046,755 $19,031,657 $14,677,919 $50,756,332 Direct Benefits $14,451,046 $15,278,934 $10,502,787 $40,232,767 Indirect Benefits $2,595,710 $3,752,723 $4,175,132 $10,523,565

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ROI Analyst™


7. Investment Summary Requirements for Valued Customer Company To implement the proposed project will require a 3 year cumulative investment of $7,374,577 including:

• $5,982,366 in initial expenses • $5,558,472 in capital expenditures • $1,816,105 in operating expenditures

Investment Summary Initial Year 1 Year 2 Year 3 Total Total Investment $5,982,366 $422,393 $459,467 $510,351 $7,374,577 Capital Expenditure Desktop and Application Virtualization Licensing and Infrastructure Costs (IT)

$3,717,200 $371,720 $408,892 $460,815 $4,958,627

Production Server Virtualization Licensing Cost (IT)

$325,213 $34,321 $34,142 $32,220 $425,896

Development and Test Lab Server Virtualization Licensing Cost (IT)

$123,848 $16,352 $16,433 $17,316 $173,949

Total Capital Expenditure $4,166,261 $422,393 $459,467 $510,351 $5,558,472 Operating Expenditure Desktop and Application Virtualization Professional Services Costs (IT)

$918,000 $0 $0 $0 $918,000

Desktop and Application Server Virtualization Implementation Labor Costs (IT)

$569,036 $0 $0 $0 $569,036

Production Server Virtualization Professional Services Costs (IT)

$195,250 $0 $0 $0 $195,250

Development and Test Lab Server Virtualization Professional Services Costs (IT)

$71,500 $0 $0 $0 $71,500

Production Server Virtualization Implementation Labor Costs (IT)

$45,615 $0 $0 $0 $45,615

Development and Test Lab Server Virtualization Implementation Labor Costs (IT)

$16,704 $0 $0 $0 $16,704

Production Server Virtualization Training Costs (IT)

$0 $0 $0 $0 $0

Desktop and Application Server Virtualization Training Costs (IT)

$0 $0 $0 $0 $0

Development and Test Lab Server Virtualization Training Costs (IT)

$0 $0 $0 $0 $0

Total Operating Expenditure $1,816,105 $0 $0 $0 $1,816,105

ROI Analyst™


8. ROI Analysis for Valued Customer Company Analyzing the opportunity, and applying the proposed Microsoft Solution, the cash flow and key financial metrics were calculated, resulting in a:

- Risk Adjusted Return on Investment (RA ROI) of 497% - Return on Investment (ROI) of 588% - Net Present Value (NPV) savings of $35,479,893 - Internal Rate of Return (IRR) of 276% - Payback period of 6.0 month(s)

ROI Analysis (Solution B) (Probable

Case) Initial Year 1 Year 2 Year 3

Benefits (to Solution B from Current (AS IS))

$0 $17,046,755 $19,031,657 $14,677,919

Cumulative Benefits $17,046,755 $36,078,413 $50,756,332 Investment (Solution B) $5,982,366 $422,393 $459,467 $510,351

ROI Analyst™


Cumulative Investment $5,982,366 $6,404,759 $6,864,226 $7,374,577 Cash Flow ($5,982,366) $16,624,362 $18,572,190 $14,167,568 Cumulative Cash Flow ($5,982,366) $10,641,996 $29,214,187 $43,381,755 ROI 588% Risk Adjusted ROI 497% NPV Savings $35,479,893 IRR 276% Payback period (including deployment period)

6 month(s)

Risk Adjusted Discount Rate 9.5%

ROI Analyst™


Appendix A: Questionnaire (As Is) Microsoft Integrated Virtualization Business Value Analysis

This analysis will help your organization determine the consolidation benefits and TCO advantages of Microsoft's Integrated Virtualization as a key component of moving to Dynamic Core Infrastructure Optimization. Developed independently by ex-Gartner TCO experts from leading ROI consultancy Alinean, this tool collects basic information about your server, development lab and desktop consolidation opportunities, and industry metrics to calculate the IT savings, business benefits, competitive cost savings and return on investment available using Microsoft Virtualization solutions. All metrics can be reviewed and customized for a complete personalized analysis.

Organization Profile What is the closest matching industry for the organization being analyzed? (* = required) Aerospace and Defense n1 What is the primary geographic location of the organizations user sites and data / service centers? * United States n2 What are the primary site locations for the organizations data centers? * Suburban n3 What is the total number of employees in the organization (those in the organization that is in scope for this proposed project)? * 6,000 n4 What are the goals of this project and analysis? * X Production Server Virtualization n5 X Development and Test Lab Virtualization n6 X Desktop and Application Virtualization n7

Current (As Is) Production Server Profile What is the current (as is) profile for production servers (before Microsoft Integrated Virtualization)?* Production Server / Server Group Name Number of Servers Server Type File / print servers 200 2 CPU n8 E-mail servers 50 4 CPU n9 Application servers 40 2 CPU n10 Database servers 24 4 CPU n11 Web servers 50 2 CPU n12 Failover servers 50 2 CPU n13 Total 414 976 CPUs in total What are the total number of users that these production servers support? Internal employees and contractors 6,000 n14 External users (partners and customers) 0 n15 What are the total number of applications that these servers support? 414 n16 What is the average expected growth rate for these servers / groups (starting in year 1)? 10.0% n17 What percentage of the servers are located in branch / remote offices? 30.0% n18

Current (As Is) Development and Test Lab Profile

What is the current (as is) profile for development and test lab servers (before Microsoft Integrated Virtualization)?*

Development and Test Lab Server / Server Group

Name Number of Servers Server Type Development servers 20 2 CPU n19 Unit test servers 40 2 CPU n20 Integration test servers 40 4 CPU n21 Database test servers 20 4 CPU n22 Other development, test and QA servers 0 2 CPU n23 Failover servers 0 2 CPU n24 Total 120 360 CPUs in total What type of development group do these servers support? Internal Development n25 What are the total number of development team members do these servers support? Application developer FTEs 30 n26 QA and test FTEs 30 n27 What is the average expected growth rate for these servers / groups (starting in year 1)? 10.0% n28

Current (As Is) Desktop and Application Profile What is the current (as is) client profile for systems that are under consideration for virtualization?* Client System Profile Desktop PCs Notebook PCs Thin Desktops Number of client systems that are candidates for virtualization 3,300 2,700 0 n29 Expected increase in the number of client systems (starting in year 1) 10.0% 10.0% 10.0% n30

Typical upgrade cycle on these client systems (useful life before replacement, in months) 36 36 60 n31

What percentage of the clients are located in branch / remote offices? 20.0% n32 v1.22

Notes:

ROI Analyst™


1. The type of company or organization. If the organization under analysis is a division of a larger organization, the business for the division. This, along with the industry type and primary site location of the company or organization helps scale key metrics in the tool, particularly relating to salary, revenue / profit, facilities / power costs and any other industry/location-related metrics. 2. The primary geographic location where the company or organization operates, and the location of the company's data centers. The specification should be made for the in-scope users and data centers as part of this project. This, along with the industry type and primary site location of the company or organization helps scale key metrics in the tool, particularly relating to salary, burden rate, facilities / power costs and any other geographic location-related metrics. 3. The primary location of the company or organization's data centers. Metropolitan should be defined as a central city with densely populated surrounding areas with combined population of 250,000 or greater and density greater than 1000 people per square mile. Urban should be defined as a central city populated in a wide-reaching surrounding area with combined population of 250,000 or greater but density less than 1000 people per square mile. Suburban should be defined as having a population of 2500 to 249,999 and adjacent to a metro or urban area. Rural should be defined as having a population of 2500 - 249,999 and not adjacent to a metro area. The figure is used to help scale key metrics in the tool, particularly relating to default salary figures as salaries are normally higher in urban vs. rural settings. 4. The total number of employees in the organization and within the scope of this proposed project. 5. Virtualize the data center production servers. 6. Virtualize the development and test lab systems. 7. Virtualize the desktop client systems and applications / presentation layer(s). 8. The number and type of file / print infrastructure servers. Default assumes 1 server for every 30 employees. 9. The number and type of e-mail, exchange and collaboration servers. Default assumes 1 server for every 120 employees. 10. The number and type of application servers. Default assumes 1 server for every 150 employees. 11. The number and type of database and data warehouse servers. Default assumes 1 server for every 250 employees. 12. The number and type of web servers. Default assumes 1 server for every 120 employees. 13. The number and type of failover / standby servers. This special group of servers is used for failover / redundancy. With virtualization it is possible to substantially reduce the number of these servers from standby / failover / redundant systems to production servers, with failover handled via the virtualization software. Default assumes 1 server for every 120 employees. 14. The number of internal employees and contractors who use these servers. Set by default to the number of employees in the organization. 15. The number of external partner and customer server users. Set by default to zero as it is difficult to estimate external user support from employees or server count. Should be specified with the external users - partners and customers - that the production servers support. 16. The total number of applications that these servers support. Set by default to one application per server. 17. The expected average annual growth rate over the analysis period, starting in year 1, in the number of servers overall. Set by default to 10%, the average growth rate for servers in most typical organizations. 18. The percentage of the total servers which are not located in data center locations, instead located in branch / remote offices. 19. Total number and type of development servers. Default assumes 1 server for every 300 employees. 20. Total and type of unit test servers. Default assumes 1 server for every 150 employees. 21. Total and type of integration test servers. Default assumes 1 server for every 150 employees. 22. Total and type of database test and validation servers. Default assumes 1 server for every 300 employees. 23. Other types of development and test / QA servers. 24. Total failover servers for the development, test and QA resources. This special group of servers is used for failover / redundancy. With virtualization it is possible to substantially reduce the number of these servers from standby / failover / redundant systems to mainline usable servers, with failover handled via the virtualization software. 25. The type of development group that the servers support. This selection is used to specify the business impact of velocity to market and service level related benefits. For internal development, the main beneficiary will be users, with improved productivity and business expense savings. For external development / ISVs, improvements are directly related to revenue. If there is a mix of revenue generating and internal applications, mix should be selected. 26. The total number of Application Developer full time equivalents that these servers are used by and support. Set by default to one developer for every 4 specified servers in total. 27. The total number of QA and test full time equivalents that these servers are used by and support. Set by default to one QA / test for every 4 specified servers in total. 28. Compound annual growth rate in number of development and QA / test servers over analysis period, starting in year 1. Set by default to 10%, the average growth rate for servers in most typical organizations. 29. Number of desktop PCs, Notebook PCs and Thin client desktops in the current environment. Set by default to the total number of PCs and 55% desktops, 45% notebook / laptop PCs in a typical installed base environment. 30. Compound annual growth rate in the number of client systems over the analysis period, starting in year 1. Set by default to 10%, the average growth rate for client PCs/ systems in most typical organizations. 31. The number of months prior to replacement for a typical PC. Set by default to 3 years for both desktop and notebook PCs. 32. The percentage of the client systems not located in main office locations, but instead distributed in branch / remote offices without the benefit of local support and service organizations. Estimated to be 20% in most average environments, but should be set to reflect actual distribution between main office locations and branch / remote offices (those not having local IT support).

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Appendix B: Solution Selection (To Be) Microsoft Integrated Virtualization Proposed Solution

The following is the proposed solution and configuration for Microsoft Server Virtualization for each of the scenarios indicated as in scope for this project, and competitive pricing comparison.

click here For the Investment Tally and ROI Analysis, which solution would you like to analyze: Microsoft n1

Production Server Virtualization with Microsoft

What is the expected production server utilization planned with Microsoft Server Virtualization? 80.0% n2 Expected server consolidation ratio achieved (N current servers to 1 new server) 5.8 to 1 What is the expected specific initial configuration of production servers post consolidation using Microsoft Server Virtualization?


Number of Servers to

Consolidate To Server Type

Total Number of Virtual Machines (VMs) to Support Type of Virtual Server License

Consolidated Production Servers 71 4 CPU 414 Windows Server 2008 Standard n3 Specify name 0 4 CPU 0 Windows Server 2008 Standard n4 Specify name 0 4 CPU 0 Windows Server 2008 Standard n5 Specify name 0 4 CPU 0 Windows Server 2008 Standard n6 Specify name 0 4 CPU 0 Windows Server 2008 Standard n7 Specify name 0 4 CPU 0 Windows Server 2008 Standard n8 Total 71 284 CPUs in total 414 What percentage of the virtualized production servers are blade systems versus traditional rack-mount servers? 100.0% n9 Production Server Virtualization - Competitive Cost Comparison

Based on the virtualization plan above, and detailed pricing and settings below, the costs and competitive advantage of Microsoft Integrated Virtualization for Data Center / Production Server Virtualization. Warning - Check pricing advice and rules as the automated recommendations here may not reflect all licensing rules. For example Standard Edition can run on up to 4 processor servers, and Enterprise Edition can run on up to 8 processor servers, however, an automated check for this does not exist. All pricing for Microsoft and competitive solutions based on: based on publicly available licensing data as researched and provided by Microsoft, January 2008.

Production Servers With Microsoft Server Virtualization Solution With Competitive Server Virtualization Solution Units Unit Price Total Units Unit Price Total Windows Server 2008 Licensing Windows Server 2008 Licensing Standard 71 $719 $51,049 71 $719 $51,049 Enterprise 0 $2,334 $0 0 $2,334 $0 Datacenter 0 $2,381 $0 0 $2,381 $0 Total Windows Server 2008 Licensing 71 $51,049 71 $51,049

Windows Server 2003 Additional Licensing (if any)

Standard 0 $719 $0 0 $719 $0 Enterprise 0 $2,334 $0 0 $2,334 $0 Datacenter 0 $2,381 $0 0 $2,381 $0 Total Windows Server 2003 Licensing 0 $0 0 $0 Credit for prior SA Agreements $0 $0 Cost for new SA Agreements $0 $0

Net Windows Server Licensing (sum of Windows Server 2008 Licensing, Windows Server 2003 Licensing, and cost for SA Agreements, less the credit for SA Agreements) $51,049 $51,049

Virtualization Management Virtualization Software Licensing 0 $0 $0 142 $5,750 $816,500 Virtualization Management Software 0 $0 $0 1 $5,000 $5,000 System Center Enterprise 71 $1,290 $91,590 71 $1,290 $91,590 Third party backup software 0 $5,000 $0 1 $5,000 $5,000

Additional storage space to support virtualization (GB) 8,694 $21.00 $182,574 8,280 $21.00 $173,880

Total for Virtualization Management $274,164 $1,091,970

Total (sum of Net Windows Server licensing and Virtualization Management) $325,213 $1,143,019

Net Licensing savings with Microsoft Integrated Virtualization $817,806

Development and Test Lab Server Virtualization with Microsoft

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What is the expected development and test lab server utilization planned with Microsoft Server Virtualization? 80.0% n10

Server consolidation ratio achieved (N current servers to 1 new server) 4.6 to 1 What is the expected specific configuration of development and test lab servers post consolidation using Microsoft Server Virtualization?

Server / Server Group Name Number of

Servers Server Type

Total Number of Virtual Machines (VMs) to Support Type of Virtual Server License

Consolidated Development / Test Servers 26 4 CPU 120 Windows Server 2008 Standard n11

Specify name 0 4 CPU 0 Windows Server 2008 Standard n12 Specify name 0 4 CPU 0 Windows Server 2008 Standard n13 Specify name 0 4 CPU 0 Windows Server 2008 Standard n14 Specify name 0 4 CPU 0 Windows Server 2008 Standard n15 Specify name 0 4 CPU 0 Windows Server 2008 Standard n16 Total 26 104 CPUs in total 120

What percentage of the virtualized development and test lab servers are blade systems versus traditional rack-mount servers? 100.0% n17

Development and Test Lab Server Virtualization - Competitive Cost Comparison

Based on the virtualization plan above, and detailed pricing and settings below, the costs and competitive advantage of Microsoft Integrated Virtualization for Development and Test Server Virtualization. Warning - Check pricing advice and rules as the automated recommendations here may not reflect all licensing rules. For example Standard Edition can run on up to 4 processor servers, and Enterprise Edition can run on up to 8 processor servers, however, an automated check for this does not exist. All pricing for Microsoft and competitive solutions based on: based on publicly available licensing data as researched and provided by Microsoft, January 2008.

Development and Test Lab Virtualization With Microsoft Lab Virtualization Solution With Competitive Lab Virtualization Solution Units Unit Price Total Units Unit Price Total Windows Server 2008 Licensing Windows Server 2008 Licensing Standard 26 $719 $18,694 26 $719 $18,694 Enterprise 0 $2,334 $0 0 $2,334 $0 Datacenter 0 $2,381 $0 0 $2,381 $0 Total Windows Server 2008 Licensing 26 $18,694 26 $18,694

Windows Server 2003 Additional Licensing (if any)

Standard 26 $719 $18,694 26 $719 $18,694 Enterprise 0 $2,334 $0 0 $2,334 $0 Datacenter 0 $2,381 $0 0 $2,381 $0 Total Windows Server 2003 Licensing 26 $18,694 26 $18,694 Credit for prior SA agreements $0 $0 Cost for new SA agreements $0 $0

Net Windows Server Licensing (sum of Windows Server 2008 Licensing, Windows Server 2003 Licensing, and cost for SA Agreements, less the credit for SA Agreements) $37,388 $37,388

Virtualization Management Virtualization Software Licensing 0 $0 $0 52 $5,750 $299,000 Virtualization Management Software 0 $0 $0 1 $5,000 $5,000 Lab Management 0 $0 $0 1 $45,000 $45,000 System Center Enterprise 26 $1,290 $33,540 26 $1,290 $33,540 Third party backup software 0 $5,000 $0 1 $5,000 $5,000

Additional storage space to support virtualization (GB) 2,520 $21.00 $52,920 2,400 $21.00 $50,400

Total for Virtualization Management $86,460 $437,940

Total (sum of Net Windows Server licensing and Virtualization Management) $123,848 $475,328

Net Licensing savings with Microsoft Integrated Virtualization $351,480

Desktop and Application Virtualization with Microsoft What type of desktop and application virtualization will be implemented (check all that apply)?

Desktop and Application Virtualization with Microsoft Included?

Number of Clients Supported for each

Solution Type Terminal Services X 6,000 n18 Hosted Desktop using Windows Vista Enterprise Centralized Desktops X 6,000 n19 Virtual PC 0 n20

Managing images, applications and deployments with Microsoft System Center X 6,000 n21

Application Virtualization using Microsoft MDOP's Softgrid Application Virtualization X 6,000 n22

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What will you be paying for the following desktop and application virtualization licenses? Terminal Services Client Access License (CAL per PC) $149.80 n23 Windows Vista Enterprise Centralized Desktop (VECD) License per PC $0 n24 Windows Virtual PC License per PC $0 n25 Microsoft MDOP including Microsoft Application Virtualization (license per PC) $10.00 n26 Additional annual charge for Software Assurance (if needed) $0 n27 Average number of clients supported per host server for all virtualized clients 30 n28 Total number of servers needed to support selected Microsoft Integrated virtualization 200 n29 Desktop and Application Virtualization - Competitive Cost Comparison

Based on the virtualization plan above, and detailed pricing and settings below, the costs and competitive advantage of Microsoft Integrated Virtualization for Desktop and Application Virtualization. All pricing for Microsoft and competitive solutions based on: based on publicly available licensing data as researched and provided by Microsoft, January 2008.

Desktop and Application Virtualization With Microsoft Desktop Virtualization Solution With Competitive Desktop Virtualization Solution Units Unit Price Total Units Unit Price Total Client licenses 6,000 $159.80 $958,800 6,000 $150.00 $900,000 n30 Host Server Virtualization software 200 $0.00 $0 240 $5,750.00 $1,380,000 n31

Virtualization Management Software and Host Server 0 $0.00 $0 1 $7,000.00 $7,000

Server hardware and OS costs 200 $14,668.00 $2,933,600 240 $14,668.00 $3,520,320

Microsoft System Center (including VMM) 200 $1,290.00 $258,000 0 $1,290.00 $0

Connection Broker Client licenses 6,000 $50.00 $300,000 6,000 $50.00 $300,000 Connection Broker hardware 1 $1,300.00 $1,300 1 $1,300.00 $1,300 Total $4,451,700 $6,108,620

Net Licensing savings with Microsoft Integrated Virtualization $1,656,920

General Metrics

Will you be implementing Systems Center including Virtual Machine Manager to help better manage the virtualized environment? Yes n32

How much additional cost should be added per server for System Center Server Management Suite Enterprise licensing? $1,290 n33

What is the average annual amortized cost per GB of SAN storage? $21.00 n34 Over the analysis period, what is the decrease in storage cost per GB per year, starting in year 2? 20.0% n35

Because of increases in utilization, average server power and cooling costs often increases over baseline values. What is the estimated increase in power and cooling that should be used for the new servers, above and beyond the typical baseline values? 30.0% n36

Notes: 1. The analysis can be used to investigate the impact on Investment and ROI for Microsoft, or for a Competitive Solution. For the two options, a broad assumption is that the benefits are estimated to be the same, as well as overall implementation labor and services costs. The difference in the analysis will be the licensing and capital investment pricing. Selecting Microsoft will use Microsoft solution pricing, while selecting Competitive Solution will create an analysis using the Competitive Solution pricing. 2. The expected average per server utilization with Microsoft Server Virtualization. Default assumes an 80% server utilization rate with Microsoft Server Virtualization. Can be less for more network or IO intensive applications. Can be less for applications where busy hours overlap. 3. The first group of servers to consolidate to using Microsoft Server Virtualization including the number of servers, server type, virtual machines and virtual server license to implement. Calculated by default based on the current total servers to virtualize, and the consolidation ratio. *Windows Server 2008 editions include Hyper-V. 4. The second group of servers to consolidate to using Microsoft Server Virtualization including the number of servers, server type, virtual machines and virtual server license to implement. *Windows Server 2008 editions include Hyper-V. 5. The third group of servers to consolidate to using Microsoft Server Virtualization including the number of servers, server type, virtual machines and virtual server license to implement. *Windows Server 2008 editions include Hyper-V. 6. The fourth group of servers to consolidate to using Microsoft Server Virtualization including the number of servers, server type, virtual machines and virtual server license to implement. *Windows Server 2008 editions include Hyper-V. 7. The fifth group of servers to consolidate to using Microsoft Server Virtualization including the number of servers, server type, virtual machines and virtual server license to implement. *Windows Server 2008 editions include Hyper-V. 8. The sixth group of servers to consolidate to using Microsoft Server Virtualization including the number of servers, server type, virtual machines and virtual server license to implement. *Windows Server 2008 editions include Hyper-V. 9. The planned percentage implementation of blade systems for the virtualized servers. Helps to save space, power and cooling and provisioning / MACS. 10. The expected average per server utilization with Microsoft Server Virtualization. Default assumes an 80% server utilization rate with Microsoft Server

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Virtualization. Can be less for more network or IO intensive applications. Can be less for applications where busy hours overlap. 11. The first group of servers to consolidate to using Microsoft Server Virtualization including the number of servers, server type, virtual machines and virtual server license to implement. Calculated by default based on the current total servers to virtualize, and the consolidation ratio. 12. The second group of servers to consolidate to using Microsoft Server Virtualization including the number of servers, server type, virtual machines and virtual server license to implement. 13. The third group of servers to consolidate to using Microsoft Server Virtualization including the number of servers, server type, virtual machines and virtual server license to implement. 14. The fourth group of servers to consolidate to using Microsoft Server Virtualization including the number of servers, server type, virtual machines and virtual server license to implement. 15. The fifth group of servers to consolidate to using Microsoft Server Virtualization including the number of servers, server type, virtual machines and virtual server license to implement. 16. The sixth group of servers to consolidate to using Microsoft Server Virtualization including the number of servers, server type, virtual machines and virtual server license to implement. 17. The implementation of blade systems for the virtualized servers. Helps to save space, power and cooling and provisioning / MACS. 18. Microsoft Terminal Services virtualizes the presentation of entire desktops or specific applications, enabling your customers to consolidate applications and data in the data center while providing broad access to local and remote users. It lets an ordinary Windows desktop application run on a shared server machine yet present its user interface on a remote system, such as a desktop computer or thin client. Terminal Services works with standard Windows applications—no changes are required. Instead, an entire desktop, complete with all application user interfaces, can be presented across a network by the Remote Desktop Connection. Running on a client machine, this software communicates with Terminal Services using the Remote Desktop Protocol (RDP), sending only key presses, mouse movements, and screen data. This minimalist approach lets RDP work over low-bandwidth connections such as dial-up lines. RDP also encrypts traffic, allowing more secure access to applications. 19. Centralized Desktop for PCs: Windows Vista Enterprise Centralized Desktop (VECD) provides licensing for Windows Vista Enterprise virtual machines (VMs) running on servers on top of PCs running Windows. This enables enterprises to combine PC productivity and local execution with the advantages of centralized deployment. Centralized Desktop for Thin Clients: To centralize desktop computers on the server on thin clients, use Windows VECD to provide secure Windows Vista Enterprise VMs on a server-based infrastructure delivering the Windows experience to reduced desktop hardware. 20. Vista Enterprise includes licensing for 4 Virtual PCs per system. 21. System Center can deliver improved management of virtualized environments, including: > Centralized deployment and management of virtual machines > Intelligent Placement analysis to determine the best servers for virtualization > Quick physical-to-virtual and virtual-to-virtual conversion > Ease of use with a familiar interface and seamless integration with other Microsoft products > Faster deployments with administrator-managed self-service provisioning > Resource efficiency with server consolidation and increased processor utilization > Quick automation via PowerShell scripting integration 22. Transform applications into virtualized services that are rapidly available - Microsoft SoftGrid Application Virtualization is the only virtualization solution that delivers applications that are never installed and dynamically delivered, on demand. Whether deployed on desktops, laptops or, terminal servers, SoftGrid changes application management from a series of manual tasks into an automated, streamlined process that accelerates the pace and reduces the cost of business. 23. Pricing based on average list price - February 2008. 24. Pricing based on average list price - February 2008. Assumes no additional fees needed to implement VECD by default. 25. Pricing based on average list price - February 2008. Assumes no additional fees needed to implement by default. 26. Pricing based on average list price - February 2008. 27. Average annual cost over analysis period for SA. Specify if SA renewal is part of this project proposal. 28. The average number of clients that can be effectively supported per host server. Set by default to be 120 clients per host for terminal services, 30 clients per host for VECD, and 45 clients per host for Softgrid. 29. Based on number of clients per type, the number of servers estimated to support the virtualized desktop / application environment. 30. Edit Microsoft solution's unit price above. Average unit total of all client licenses here. 31. For competitive solutions, assume that 25 PCs supported per host server. Assumes a 2 CPU server as the typical supporting server configuration (see below). 32. The System Center Server Management Suite Enterprise includes Virtual Machine Manager as well as Enterprise Management Licenses (MLs) for System Center 2007 Configuration Manager, Data Protection Manager and Operations Manager. An Enterprise license provides rights to manage both the physical and virtualized instances running on a server, but a Standard license can just manage the operating system and the hardware. 33. The additional cost per virtualized server for System Center/ Requires that Software Assurance be included or extended for the server operating system licenses. 34. The average cost per GB for SAN storage. Includes amortized purchase cost + annual support and maintenance contract costs 35. The average annual compound decrease in per GB storage cost over the analysis period, starting in year 2. 36. The uplift to normal server power and cooling costs based on extra workload / utilization for virtualized servers.

ROI Analyst™


Appendix C: TCO and Benefit Details Internal Application Time to Market With Microsoft Integrated Virtualization, application lifecycle time can be reduced by helping to reduce the time for lab and system configuration, and bug reproduction. Resources can be freed from manual configuration and bug support tasks to more valuable application lifecycle management and support tasks. Releasing applications earlier can help drive business benefits of these internal applications including productivity gains and cost savings. Cumulative Benefits (3 - Year): $6,068,516 Organization financial benefit type: Operating Expense (Allocated) Values map to benefit class: Indirect Benefits Goal: Improve Business Agility Stakeholder: VP Application Development

Internal Application Time to Market - Internal Development Projects Current (As Is) Benefits with Microsoft

(To Be)

Proposed with Microsoft

Virtualization (To Be) Major software releases Number of releases per year 6 6 Duration (in days) to provision test / QA systems 16.0 50.0% 8.0 Duration (in days) to reproduce bugs 20.0 50.0% 10.0 Total days per year for provisioning and bug reproduction 216.0 108.0 108.0 Average value per day $16,438 $16,438 Total annual provisioning and bug reproduction lifecycle business value cost $3,550,608 $1,775,304 $1,775,304 Software upgrade releases Number of releases per year 10 10 Duration (in days) to provision test / QA systems 5.3 50.0% 2.7 Duration (in days) to reproduce bugs 6.7 50.0% 3.4 Total days per year for provisioning and bug reproduction 120.0 59.0 61.0 Average value per day $4,110 $4,110 Total annual provisioning and bug reproduction lifecycle business value cost $493,200 $242,490 $250,710 Total $4,043,808 $2,017,794 $2,026,014 Major software releases reduction in application lifecycle 18.0 days per release 9.0% Software upgrade releases reduction in application lifecycle 5.9 days per release 8.8%

Internal Application Time to Market Year 1 Year 2 Year 3 Year 4 Year 5 Current (As Is) $4,043,808 $4,448,189 $4,893,008 $5,382,309 $5,920,540 With Microsoft Integrated Virtualization (To Be) $2,026,014 $2,228,615 $2,451,477 $2,696,625 $2,966,288 Total net savings (As Is - To Be) $2,017,794 $2,219,574 $2,441,531 $2,685,684 $2,954,252 Average growth in costs and benefits (increase in releases, test cycles per build and provisioning requests) 10.0%

Realized Benefits (Probable) Year 1 Year 2 Year 3 Solution A Current (As Is) $4,043,808 $4,448,189 $4,893,008 Solution B With Microsoft Integrated Virtualization (To Be)

$2,026,014 $2,228,615 $2,451,477

Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

$2,017,794 $2,219,574 $2,441,531

Q1 $0.00 $504,448.50 $554,893.50 Q2 $504,448.50 $554,893.50 $610,382.75 Q3 $504,448.50 $554,893.50 $610,382.75 Q4 $504,448.50 $554,893.50 $610,382.75 Realized Total Benefits $1,513,346 $2,169,129 $2,386,042 Desktop Virtualization Client Replacement Capital Cost Avoidance

With Microsoft Integrated Virtualization, existing PCs do not need to be upgraded as often in order to support new operating systems and applications, helping to extend the lifecycle and avoid replacements. This can help avoid capital investments to purchase these new replacement systems. Cumulative Benefits (3 - Year): $5,928,316 Organization financial benefit type: Net Fixed Assets (NFA - Allocated) Values map to benefit class: Direct Benefits Goal: Reduce IT Capital Costs Stakeholder: PC Manager

ROI Analyst™


Current (As Is) Client Replacement Costs Year 1 Year 2 Year 3 Year 4 Year 5 Current desktop PCs replacement plans 1,573 1,730 1,903 2,094 2,303 Desktop PC client replacement costs $900 $900 $900 $900 $900 Desktop PC replacement capital cost $1,415,700 $1,557,000 $1,712,700 $1,884,600 $2,072,700 Current notebook PCs replacement plans 1,287 1,416 1,557 1,713 1,884 Notebook PC client replacement costs $1,400 $1,400 $1,400 $1,400 $1,400 Notebook PC replacement capital cost $1,801,800 $1,982,400 $2,179,800 $2,398,200 $2,637,600

Lifecycle Extension

Current Replacement

Lifecycle (in months)

Planned Extension of Lifecycle with

Microsoft Virtualization

Planned Extended Lifecycle with

Microsoft Virtualization (in

months) n1 Desktop PC lifecycle extension 36 68.0% 60 Notebook PC lifecycle extension 36 68.0% 60

Proposed (To Be) Client Replacement Costs Year 1 Year 2 Year 3 Year 4 Year 5 Current desktop PCs replacement plans 1,573 1,730 1,903 2,094 2,303 Percentage to migrate to thin client solutions 0.0% 0.0% 0.0% 0.0% 0.0% Thin client migrations 0 0 0 0 0 Cost for thin clients $250 $250 $250 $250 $250 Total thin client migration cost $0 $0 $0 $0 $0 With extended lifecycle, minus the thin client migrations, the planned desktop PC client replacements 0 0 1,573 1,730 1,903 Desktop PC client replacement costs $900 $900 $900 $900 $900 Desktop PC replacement capital cost $0 $0 $2,993,419 $3,622,620 $4,382,609 Total desktop PC capital costs with Microsoft Virtualization $0 $0 $2,993,419 $3,622,620 $4,382,609 Current notebook PCs replacement plans 1,287 1,416 1,557 1,713 1,884 Percentage to migrate to thin client solutions 0.0% 0.0% 0.0% 0.0% 0.0% Thin client migrations 0 0 0 0 0 Cost for thin clients $250 $250 $250 $250 $250 Total thin client migration cost $0 $0 $0 $0 $0 With extended lifecycle, the planned notebook PC client replacements 0 0 1,287 1,416 1,557 Notebook PC client replacement costs $1,400 $1,400 $1,400 $1,400 $1,400 Notebook PC replacement capital cost $0 $0 $2,003,859 $2,425,608 $2,933,388 Total notebook PC capital costs with Microsoft Virtualization $0 $0 $2,003,859 $2,425,608 $2,933,388 Total proposed (To Be) client replacement capital costs $0 $0 $4,997,278 $6,048,228 $7,315,997

Desktop Virtualization Client Replacement Capital Cost Avoidance Year 1 Year 2 Year 3 Year 4 Year 5

Current (As Is) $3,217,500 $3,539,400 $3,892,500 $4,282,800 $4,710,300 With Microsoft Integrated Virtualization (To Be) $0 $0 $4,997,278 $6,048,228 $7,315,997 Total Net Savings (As Is - To Be) $3,217,500 $3,539,400 ($1,104,778) ($1,765,428) ($2,605,697) Notes: 1. Set on Solution Selection


$0 $0 $4,997,278


$3,217,500 $3,539,400 ($1,104,778)

Q1 $0.00 $804,375.00 $884,850.00 Q2 $804,375.00 $884,850.00 ($276,194.50) Q3 $804,375.00 $884,850.00 ($276,194.50) Q4 $804,375.00 $884,850.00 ($276,194.50) Realized Total Benefits $2,413,125 $3,458,925 $56,266

ROI Analyst™



To implement the Microsoft Integrated Virtualization solution, an investment in licensing is required for servers, virtualization software and virtualization management. These costs are specified on Solution Selection page and detailed in Investment section - summarized here for TCO comparison only. Cumulative Benefits (3 - Year): $5,430,884 Organization financial benefit type: Net Fixed Assets (NFA - Allocated) Values map to benefit class: Direct Benefits Goal: Reduce IT Capital Costs Stakeholder: PC Manager

Production Server Virtualization Licensing Costs Initial / Year 1 Year 2 Year 3 Year 4 Year 5 Windows Server licensing $56,801 $6,471 $6,471 $7,190 $7,909 Virtualization Management $302,733 $27,671 $25,749 $25,338 $25,138 Total $359,534 $34,142 $32,220 $32,528 $33,047

Development and Test Lab Server Virtualization Licensing Costs Initial / Year 1 Year 2 Year 3 Year 4 Year 5

Windows Server licensing $44,578 $7,909 $9,347 $10,066 $10,785 Virtualization Management $95,622 $8,524 $7,969 $7,471 $8,333 Total $140,200 $16,433 $17,316 $17,537 $19,118

Desktop and Application Server Virtualization Licensing Costs Initial / Year 1 Year 2 Year 3 Year 4 Year 5

Virtualization Client licensing $1,054,680 $105,468 $116,015 $127,680 $140,464 Virtualization Host Servers and Management Software $3,034,240 $303,424 $344,800 $372,384 $413,760 Total $4,088,920 $408,892 $460,815 $500,064 $554,224 Total Server Virtualization Implementation and Training

Costs Initial / Year 1 Year 2 Year 3 Year 4 Year 5 Total $4,588,654 $459,467 $510,351 $550,129 $606,389

Realized Benefits (Probable) Year 1 Year 2 Year 3 Solution A Current (As Is) $0 $0 $0 Solution B With Microsoft Integrated Virtualization (To Be)

$0 $0 $0


$4,588,654 $459,467 $510,351

Q1 $0.00 $1,147,163.50 $114,866.75 Q2 $1,147,163.50 $114,866.75 $127,587.75 Q3 $1,147,163.50 $114,866.75 $127,587.75 Q4 $1,147,163.50 $114,866.75 $127,587.75 Realized Total Benefits $3,441,490 $1,491,764 $497,630 Existing Production Server Cost Avoidance

With Microsoft Integrated Virtualization, existing server workloads can be consolidated on fewer physical servers, with typical consolidation ratios of 3:1 to 8:1 consolidations. With this consolidation, existing server assets can be retired or reallocated, reducing annual amortized purchase costs and annual support and maintenance contract expenses. Cumulative Benefits (3 - Year): $4,497,483 Organization financial benefit type: Net Fixed Assets (NFA - Cumulative) Values map to benefit class: Direct Benefits Goal: Reduce IT Capital Costs Stakeholder: IT Director

Current (As Is) Production Server Annual Costs Number of Servers Total Number of CPUs

Average Annual Cost per Server

(amortized purchase price + support and

maintenance contracts) Total Annual Cost

File / print servers 200 400 $4,694 $938,800 E-mail servers 50 200 $9,387 $469,350 Application servers 40 80 $4,694 $187,760 Database servers 24 96 $9,387 $225,288

ROI Analyst™


Web servers 50 100 $4,694 $234,700 Failover servers 50 100 $4,694 $234,700 Total 414 976 $2,290,598 With Microsoft Integrated Virtualization, server consolidation ratio expected: 5.8 to 1

Proposed with Microsoft Virtualization (To Be) Production Server Annual Costs Number of Servers Total Number of CPUs




Consolidated Production Servers 71 284 $11,147 $791,437 Specify name 0 0 $11,147 $0 Specify name 0 0 $11,147 $0 Specify name 0 0 $11,147 $0 Specify name 0 0 $11,147 $0 Specify name 0 0 $11,147 $0 Total 71 284 $791,437

Existing Production Server Cost Avoidance Year 1 Year 2 Year 3 Year 4 Year 5 Current (As Is) $2,290,598 $2,290,598 $2,290,598 $2,290,598 $2,290,598 With Microsoft Integrated Virtualization (To Be) $791,437 $791,437 $791,437 $791,437 $791,437 Total Net Savings (As Is - To Be) $1,499,161 $1,499,161 $1,499,161 $1,499,161 $1,499,161 Annual growth in costs and savings (if any - starting in year 2) 0.0% n1 Notes: 1. Annual growth in costs and savings expected (if any).


$791,437 $791,437 $791,437


$1,499,161 $1,499,161 $1,499,161

Q1 $0.00 $1,499,161.00 $1,499,161.00 Q2 $1,499,161.00 $0.00 $0.00 Q3 $0.00 $0.00 $0.00 Q4 $0.00 $0.00 $0.00 Realized Total Benefits $1,499,161 $1,499,161 $1,499,161 Production Server Unplanned Downtime Avoidance

With Microsoft Integrated Virtualization, reliability of servers can be improved through automated performance and availability and workload management, helping to reallocate workloads should issues occur. Cumulative Benefits (3 - Year): $3,719,330 Organization financial benefit type: Operating Expense (Allocated) Values map to benefit class: Indirect Benefits Goal: Reduce Unplanned Downtime Stakeholder: IT Director

Production Server Unplanned Downtime Avoidance Current (As Is) Benefits with Microsoft

(To Be)


Virtualization (To Be) Total number of servers 414 71 Annual unplanned downtime hours per year 5.00 40.0% 3.00 Total unplanned downtime hours per year 2,070.0 1,857.0 213.0 Average number of internal users impacted per unplanned downtime hour 180.00 180.00 Percentage productivity impact 10.0% 10.0% n1 Total person hours of lost productivity for internal users 37,260.0 33,426.0 3,834.0 Average burdened hourly salary for users $36.10 $36.10 Total unplanned downtime annual cost $1,345,086 $1,206,679 $138,407

Production Server Unplanned Downtime Avoidance Year 1 Year 2 Year 3 Year 4 Year 5

ROI Analyst™


Current (As Is) $1,345,086 $1,517,257 $1,711,466 $1,930,534 $2,177,642 With Microsoft Integrated Virtualization (To Be) $138,407 $156,124 $176,108 $198,650 $224,077 Total Net Savings (As Is - To Be) $1,206,679 $1,361,133 $1,535,358 $1,731,884 $1,953,565 Annual growth in costs and savings (if any - starting in year 2) 12.8% n2 Notes: 1. May be higher for To Be solution as consolidation of servers occurs. 2. Annual growth in costs and savings expected (if any). Includes specified growth in number of servers, as well as expected increase in annual salary.


$138,407 $156,124 $176,108


$1,206,679 $1,361,133 $1,535,358

Q1 $0.00 $301,669.65 $340,283.25 Q2 $301,669.65 $340,283.25 $383,839.50 Q3 $301,669.65 $340,283.25 $383,839.50 Q4 $301,669.65 $340,283.25 $383,839.50 Realized Total Benefits $905,009 $1,322,519 $1,491,802 Production Server Operations and Administration Efficiency Savings

With Microsoft Integrated Virtualization, consolidation of physical servers can help to reduce overhead tasks relating to break-fix management and support, inventory and asset management, vendor management, and backup and recover / disaster recovery planning. These savings are usually proportional to the physical server consolidation savings. Cumulative Benefits (3 - Year): $2,653,702 Organization financial benefit type: Operating Expense (Allocated) Values map to benefit class: Direct Benefits Goal: Reduce IT Operations and Administration Costs Stakeholder: IT Director

Production Server Operations and Administration Efficiency Savings Current (As Is) Benefits with

Microsoft (To Be)


Virtualization (To Be) Annual person hours per year Break-fix management / problem management 6,486.0 83.0% 1,102.6 Performance and availability management 5,188.8 83.0% 882.1 Backup / recover and disaster recovery planning 3,706.3 83.0% 630.1 Security management 2,882.7 83.0% 490.1 Asset management 1,945.8 83.0% 330.8 Total person hours per year 20,209.6 16,773.9 3,435.7 Average burdened hourly salary for server provisioning labor $47.72 $47.72 Total annual change management labor costs $964,402 $800,450 $163,952 Average travel costs per year $62,100 83.0% $10,557 Total annual change management labor and travel costs $1,026,502 $851,993 $174,509

Production Server Operations and Administration Efficiency Savings Year 1 Year 2 Year 3 Year 4 Year 5

Current (As Is) $1,026,502 $1,170,212 $1,334,042 $1,520,808 $1,733,721 With Microsoft Integrated Virtualization (To Be) $174,509 $198,940 $226,792 $258,543 $294,739 Total Net Savings (As Is - To Be) $851,993 $971,272 $1,107,250 $1,262,265 $1,438,982 Annual growth in costs and savings (if any - starting in year 2) 14.0% n1 Notes: 1. Annual growth in costs and savings expected (if any). Includes specified growth in annual tasks, as well as expected increase in annual salary.


$174,509 $198,940 $226,792

ROI Analyst™



$851,993 $971,272 $1,107,250

Q1 $0.00 $212,998.25 $242,818.00 Q2 $212,998.25 $242,818.00 $276,812.50 Q3 $212,998.25 $242,818.00 $276,812.50 Q4 $212,998.25 $242,818.00 $276,812.50 Realized Total Benefits $638,995 $941,452 $1,073,256 Desktop Virtualization Client Replacement Labor Cost Avoidance

With Microsoft Integrated Virtualization, existing PCs do not need to be upgraded as often in order to support new operating systems and applications, helping to extend the lifecycle and avoid replacements. This can help avoid capital investments to purchase these new replacement systems. Cumulative Benefits (3 - Year): $2,564,592 Organization financial benefit type: Net Fixed Assets (NFA - Allocated) Values map to benefit class: Direct Benefits Goal: Reduce IT Capital Costs Stakeholder: PC Manager

Current (As Is) Client Replacement Labor Costs Year 1 Year 2 Year 3 Year 4 Year 5 Current desktop PCs replacement plans 1,573 1,730 1,903 2,094 2,303 Person hours to manage new PC deployment 5.0 5.0 5.0 5.0 5.0 Person hours to manage old PC retirement 1.8 1.8 1.8 1.8 1.8 Total person hours 10,696 11,764 12,940 14,239 15,660 Average burdened salary for desktop provisioning $39.77 $41.36 $43.01 $44.73 $46.52 Total labor cost $425,380 $486,559 $556,549 $636,910 $728,503 Additional disposal fees, procurement, setup or installation fees per client deployment $120.00 $120.00 $120.00 $120.00 $120.00 Total fees $188,760 $207,600 $228,360 $251,280 $276,360 Total desktop PC replacement labor costs $614,140 $694,159 $784,909 $888,190 $1,004,863 Current notebook PCs replacement plans 1,287 1,416 1,557 1,713 1,884 Person hours to manage new PC deployment 5.0 5.0 5.0 5.0 5.0 Person hours to manage old PC retirement 1.8 1.8 1.8 1.8 1.8 Total person hours 8,752 9,629 10,588 11,648 12,811 Average burdened salary for desktop provisioning $39.77 $41.36 $43.01 $44.73 $46.52 Total labor cost $348,067 $398,255 $455,390 $521,015 $595,968 Additional disposal fees, procurement, setup or installation fees per client deployment $120.00 $120.00 $120.00 $120.00 $120.00 Total fees $154,440 $169,920 $186,840 $205,560 $226,080 Total desktop PC replacement labor costs $502,507 $568,175 $642,230 $726,575 $822,048 Total current (As Is) PC replacement labor costs $1,116,647 $1,262,334 $1,427,139 $1,614,765 $1,826,911

Proposed (To Be) Client Replacement Labor Costs Year 1 Year 2 Year 3 Year 4 Year 5 Desktop PC to thin client replacement plans 0 0 0 0 0 Person hours to manage new thin client deployment 1.0 1.0 1.0 1.0 1.0 Person hours to manage old PC retirement 1.8 1.8 1.8 1.8 1.8 Total person hours 0.0 0.0 0.0 0.0 0.0 Average burdened salary for desktop provisioning $39.77 $41.36 $43.01 $44.73 $46.52 Total labor cost $0 $0 $0 $0 $0 Additional disposal fees, procurement, setup or installation fees per client deployment $120.00 $120.00 $120.00 $120.00 $120.00 Total fees $0 $0 $0 $0 $0 Total desktop PC replacement labor costs $0 $0 $0 $0 $0 Notebook PC to thin client replacement plans 0 0 0 0 0 Person hours to manage new thin client deployment 1.0 1.0 1.0 1.0 1.0 Person hours to manage old PC retirement 1.8 1.8 1.8 1.8 1.8 Total person hours 0.0 0.0 0.0 0.0 0.0 Average burdened salary for desktop provisioning $39.77 $41.36 $43.01 $44.73 $46.52 Total labor cost $0 $0 $0 $0 $0 Additional disposal fees, procurement, setup or installation fees per client deployment $60.00 $60.00 $60.00 $60.00 $60.00 Total fees $0 $0 $0 $0 $0 Total notebook PC replacement labor costs $0 $0 $0 $0 $0 Proposed (To Be) desktop PCs replacement plans with Microsoft Virtualization 0 0 1,573 1,730 1,903 Person hours to manage new PC deployment 5.0 5.0 5.0 5.0 5.0 Person hours to manage old PC retirement 1.8 1.8 1.8 1.8 1.8

ROI Analyst™


Total person hours 0.0 0.0 10,696.4 11,764.0 12,940.4 Average burdened salary for desktop provisioning $39.77 $41.36 $43.01 $44.73 $46.52 Total labor cost $0 $0 $460,052 $526,204 $601,987 Additional disposal fees, procurement, setup or installation fees per client deployment $120.00 $120.00 $120.00 $120.00 $120.00 Total fees $0 $0 $188,760 $207,600 $228,360 Total desktop PC replacement labor costs $0 $0 $648,812 $733,804 $830,347 Proposed (To Be) notebook PCs replacement plans with Microsoft Virtualization 0 0 1,287 1,416 1,557 Person hours to manage new PC deployment 5.0 5.0 5.0 5.0 5.0 Person hours to manage old PC retirement 1.8 1.8 1.8 1.8 1.8 Total person hours 0.0 0.0 8,751.6 9,628.8 10,587.6 Average burdened salary for desktop provisioning $39.77 $41.36 $43.01 $44.73 $46.52 Total labor cost $0 $0 $376,406 $430,696 $492,535 Additional disposal fees, procurement, setup or installation fees per client deployment $120.00 $120.00 $120.00 $120.00 $120.00 Total fees $0 $0 $154,440 $169,920 $186,840 Total notebook PC replacement labor costs $0 $0 $530,846 $600,616 $679,375 Total (To Be) replacement labor costs $0 $0 $1,179,658 $1,334,420 $1,509,722 Desktop Virtualization Client Replacement Labor Cost

Avoidance Year 1 Year 2 Year 3 Year 4 Year 5 Current (As Is) $1,116,647 $1,262,334 $1,427,139 $1,614,765 $1,826,911 With Microsoft Integrated Virtualization (To Be) $0 $0 $1,179,658 $1,334,420 $1,509,722 Total Net Savings (As Is - To Be) $1,116,647 $1,262,334 $247,481 $280,345 $317,189


$0 $0 $1,179,658


$1,116,647 $1,262,334 $247,481

Q1 $0.00 $279,161.75 $315,583.50 Q2 $279,161.75 $315,583.50 $61,870.25 Q3 $279,161.75 $315,583.50 $61,870.25 Q4 $279,161.75 $315,583.50 $61,870.25 Realized Total Benefits $837,485 $1,225,912 $501,194 Production Server Change Management Efficiency Savings

With Microsoft Integrated Virtualization, physical changes can be performed in a virtual environment leading to dramatic 40-80% improvements in reducing the person hours it takes to perform new server installations including avoidance of procurement and vendor management costs, physical hardware setup and deployment, as well as better OS / application setup and delivery efficiency. Cumulative Benefits (3 - Year): $2,465,821 Organization financial benefit type: Operating Expense (Allocated) Values map to benefit class: Direct Benefits Goal: Reduce IT Operations and Administration Costs Stakeholder: IT Director

Production Server Change Management Efficiency Savings Current (As Is) Benefits with

Microsoft (To Be)


Virtualization (To Be) Number of physical moves and reconfigurations 414 100% 0 Person hours per physical move and reconfiguration 2.6 100% 0.0 Total person hours 1,076.4 1,076.4 0.0 Number of operating system patches 4,968 0% 4,968 Person hours per operating system patch 2.0 70.0% 0.6 Total person hours 9,936.0 6,955.2 2,980.8 Number of application patches and upgrades 1,656 0% 1,656 Person hours per operating system patch 2.0 70.0% 0.6 Total person hours 3,312.0 2,318.4 993.6 Total person hours for all tasks 14,324.4 10,350.0 3,974.4 Average burdened hourly salary for server provisioning labor $45.89 $45.89

ROI Analyst™


Total annual change management labor costs $657,347 $474,962 $182,385 Average travel costs per year $316,710 100.0% $0 Total annual change management labor and travel costs $974,057 $791,672 $182,385

Production Server Change Management Efficiency Savings Year 1 Year 2 Year 3 Year 4 Year 5

Current (As Is) $974,057 $1,110,425 $1,265,885 $1,443,109 $1,645,144 With Microsoft Integrated Virtualization (To Be) $182,385 $207,919 $237,028 $270,212 $308,042 Total Net Savings (As Is - To Be) $791,672 $902,506 $1,028,857 $1,172,897 $1,337,102 Annual growth in costs and savings (if any - starting in year 2) 14.0% n1 Notes: 1. Annual growth in costs and savings expected (if any). Includes specified growth in annual tasks, as well as expected increase in annual salary.

Realized Benefits (Probable) Year 1 Year 2 Year 3 Solution A Current (As Is) $974,057 $1,110,425 $1,265,885 Solution B With Microsoft Integrated Virtualization (To Be)

$182,385 $207,919 $237,028


$791,672 $902,506 $1,028,857

Q1 $0.00 $197,918.00 $225,626.50 Q2 $197,918.00 $225,626.50 $257,214.25 Q3 $197,918.00 $225,626.50 $257,214.25 Q4 $197,918.00 $225,626.50 $257,214.25 Realized Total Benefits $593,754 $874,798 $997,269 Development and Test Lab Server Provisioning Efficiency Savings

With Microsoft Integrated Virtualization, physical changes can be performed in a virtual environment leading to dramatic 60-90% improvements in reducing the person hours it takes to perform development and test lab / QA new server installations and configurations. Cumulative Benefits (3 - Year): $2,111,618 Organization financial benefit type: Operating Expense (Allocated) Values map to benefit class: Direct Benefits Goal: Reduce IT Operations and Administration Costs Stakeholder: VP Application Development

Development and Test Lab Server Provisioning Efficiency Savings - Internal Development Projects Current (As Is) Benefits with

Microsoft (To Be)


Virtualization (To Be) Major software releases Number of releases per year 6 6 Average number of test cycle builds per release 10 10 Average number of test server provisioning requests per release 50 50 Total number of server provisioning requests per year 3,000 0 3,000 Average number of person hours to provision a typical test / lab server 4.0 90.0% 0.4 Total provisioning person hours per year 12,000 10,800 1,200 Average burdened labor cost per hour for server provisioning $45.89 $45.89 Total annual provisioning cost $550,680 $495,612 $55,068 Software upgrade releases Number of releases per year 10 10 Average number of test cycle builds per release 5 5 Average number of test server provisioning requests per release 25 25 Total number of server provisioning requests per year 1,250 0 1,250 Average number of person hours to provision a typical test / lab server 4.0 90.0% 0.4 Total provisioning person hours per year 5,000 4,500 500 Average burdened labor cost per hour for server provisioning $45.89 $45.89 Total annual provisioning cost $229,450 $206,505 $22,945 Total $780,130 $702,117 $78,013

Development and Test Lab Server Provisioning Efficiency Savings - Revenue Generatiing Projects (ISV) Current (As Is)

Benefits with Microsoft (To Be)


Virtualization (To Be) Major software releases Number of releases per year 0 0

ROI Analyst™


Average number of test cycle builds per release 12 12 Average number of test server provisioning requests per release 60 60 Total number of server provisioning requests per year 0 0 0 Average number of person hours to provision a typical test / lab server 4.0 90.0% 0.4 Total provisioning person hours per year 0 0 0 Average burdened labor cost per hour for server provisioning $45.89 $45.89 Total annual provisioning cost $0 $0 $0 Software upgrade releases Number of releases per year 0 0 Average number of test cycle builds per release 6 6 Average number of test server provisioning requests per release 30 30 Total number of server provisioning requests per year 0 0 0 Average number of person hours to provision a typical test / lab server 4.0 90.0% 0.4 Total provisioning person hours per year 0 0 0 Average burdened labor cost per hour for server provisioning $45.89 $45.89 Total annual provisioning cost $0 $0 $0 Total $0 $0 $0

Development and Test Lab Server Provisioning Efficiency Savings Year 1 Year 2 Year 3 Year 4 Year 5

Current (As Is) $780,130 $858,143 $943,957 $1,038,353 $1,142,188 With Microsoft Integrated Virtualization (To Be) $78,013 $85,814 $94,395 $103,835 $114,219 Total Net Savings (As Is - To Be) $702,117 $772,329 $849,562 $934,518 $1,027,969 Average growth in costs and benefits (increase in releases, test cycles per build and provisioning requests) 10.0%

Realized Benefits (Probable) Year 1 Year 2 Year 3 Solution A Current (As Is) $780,130 $858,143 $943,957 Solution B With Microsoft Integrated Virtualization (To Be)

$78,013 $85,814 $94,395


$702,117 $772,329 $849,562

Q1 $0.00 $175,529.25 $193,082.25 Q2 $175,529.25 $193,082.25 $212,390.50 Q3 $175,529.25 $193,082.25 $212,390.50 Q4 $175,529.25 $193,082.25 $212,390.50 Realized Total Benefits $526,588 $754,776 $830,254 Desktop Virtualization Client Change Management Cost Avoidance

With Microsoft Integrated Virtualization, change management for clients is streamlined and centralized, making it easier to update operating systems and manage changes to applications. (new deployments, updates and retirements). Based on the type of virtualization selected, upgrade regression testing and deployment costs are reduced at varying levels, from 10% for basic virtualization using terminal services, to 60% or more using application virtualization. Cumulative Benefits (3 - Year): $1,829,476 Organization financial benefit type: Operating Expense (Allocated) Values map to benefit class: Direct Benefits Goal: Reduce IT Operations and Administration Costs Stakeholder: PC Manager

Desktop Virtualization Client Change Management Cost Avoidance Current (As Is) Benefits with

Microsoft (To Be)


Virtualization (To Be) Operating system updates (patches) Annual number of times operating system updates are performed per year 12 12 Average number of clients upgraded per cycle 4,800 4,800 Average annual person hours per client upgraded 0.18 80.0% 0.04 Total annual person hours per upgrade 10,368.0 8,064.0 2,304.0 Average hourly burdened labor cost $39.77 $39.77 Total annual labor cost for OS updates $412,335 $320,705 $91,630 New application deployments Annual number of times new application deployments are performed per year 4 4 Average number of clients upgraded per cycle 600 600 Average annual person hours per client upgraded 0.20 80.0% 0.04 Total annual person hours per upgrade 480.0 384.0 96.0 Average hourly burdened labor cost $39.77 $39.77

ROI Analyst™


Total annual labor cost for new application deployments $19,090 $15,272 $3,818 Application upgrades Annual number of times application upgrades are performed per year 4 4 Average number of clients upgraded per cycle 900 900 Average annual person hours per client upgraded 0.15 80.0% 0.03 Total annual person hours per upgrade 540.0 432.0 108.0 Average hourly burdened labor cost $39.77 $39.77 Total annual labor cost for application upgrades $21,476 $17,181 $4,295 Application updates (patches) Annual number of times application updates are performed per year 12 12 Average number of clients updated per cycle 1,800 1,800 Average annual person hours per client updated 0.20 80.0% 0.04 Total annual person hours per updated 4,320.0 3,456.0 864.0 Average hourly burdened labor cost $39.77 $39.77 Total annual labor cost for application updates $171,806 $137,445 $34,361 Application retirement Annual number of times application retirements are performed per year 4 4 Average number of clients affected per cycle 900 900 Average annual person hours per client affected 0.10 80.0% 0.02 Total annual person hours per retirement cycle 360.0 288.0 72.0 Average hourly burdened labor cost $39.77 $39.77 Total annual labor cost for application retirement $14,317 $11,454 $2,863 Total annual change management labor cost $639,024 $502,057 $136,967

Change Management Travel costs Current (As Is) Benefits with

Microsoft (To Be)


Virtualization (To Be) Total annual change management travel cost $177,600 78.6% $38,006

Desktop Virtualization Client Change Management Cost Avoidance Year 1 Year 2 Year 3 Year 4 Year 5

Current (As Is) $816,624 $849,289 $883,261 $918,591 $955,335 With Microsoft Integrated Virtualization (To Be) $174,973 $181,972 $189,251 $196,821 $204,694 Total Net Savings (As Is - To Be) $641,651 $667,317 $694,010 $721,770 $750,641 Annual growth in costs and benefits 4.0% n1 Notes: 1. Annual growth in annual salaries from Current Practices.


$174,973 $181,972 $189,251


$641,651 $667,317 $694,010

Q1 $0.00 $160,412.75 $166,829.25 Q2 $160,412.75 $166,829.25 $173,502.50 Q3 $160,412.75 $166,829.25 $173,502.50 Q4 $160,412.75 $166,829.25 $173,502.50 Realized Total Benefits $481,238 $660,900 $687,337 Microsoft Integrated Virtualization Implementation and Training Costs

To implement the Microsoft Integrated Virtualization solution, internal labor, professional services and training may be required. These costs are specified in Solution Selection, and detailed in the Investment section - summarized here for TCO comparison only. Cumulative Benefits (3 - Year): $1,816,105 Organization financial benefit type: Net Fixed Assets (NFA - Allocated) Values map to benefit class: Direct Benefits Goal: Reduce IT Capital Costs Stakeholder: PC Manager Production Server Virtualization Implementation and

Training Costs Initial / Year 1 Year 2 Year 3 Year 4 Year 5

ROI Analyst™


Production Server Virtualization Professional Services Costs $195,250 $0 $0 $0 $0 Production Server Virtualization Implementation Labor Costs $45,615 $0 $0 $0 $0 Production Server Virtualization Training Costs $0 $0 $0 $0 $0 Total $240,865 $0 $0 $0 $0

Development and Test Lab Virtualization Implementation and Training Costs Initial / Year 1 Year 2 Year 3 Year 4 Year 5

Development and Test Lab Virtualization Professional Services Costs $71,500 $0 $0 $0 $0 Development and Test Lab Virtualization Implementation Labor Costs $16,704 $0 $0 $0 $0 Development and Test Lab Virtualization Training Costs $0 $0 $0 $0 $0 Total $88,204 $0 $0 $0 $0

Desktop and Application Virtualization Implementation and Training Costs Initial / Year 1 Year 2 Year 3 Year 4 Year 5

Desktop and Application Virtualization Professional Services Costs $918,000 $0 $0 $0 $0 Desktop and Application Virtualization Implementation Labor Costs $569,036 $0 $0 $0 $0 Desktop and Application Virtualization Training Costs $0 $0 $0 $0 $0 Total $1,487,036 $0 $0 $0 $0 Total Server Virtualization Implementation and Training

Costs Initial / Year 1 Year 2 Year 3 Year 4 Year 5 Total $1,816,105 $0 $0 $0 $0


$0 $0 $0


$1,816,105 $0 $0

Q1 $0.00 $454,026.25 $0.00 Q2 $454,026.25 $0.00 $0.00 Q3 $454,026.25 $0.00 $0.00 Q4 $454,026.25 $0.00 $0.00 Realized Total Benefits $1,362,079 $454,026 $0 Desktop Virtualization Client Operations and Support Efficiency

With Microsoft Integrated Virtualization, PC configuration management and security is centralized and better managed / controlled helping to proactively avoid incidents, and reducing PC administration and support costs as a result. Cumulative Benefits (3 - Year): $1,788,694 Organization financial benefit type: Operating Expense (Allocated) Values map to benefit class: Direct Benefits Goal: Reduce IT Operations and Administration Costs Stakeholder: PC Manager

Desktop Virtualization Client Operations and Support Efficiency Current (As Is) Benefits with

Microsoft (To Be)


Virtualization (To Be) Client service desk costs Client related service desk calls per year 20,520 50.0% 10,260 Average burdened labor cost per client incident service desk call $36.54 24.0% $27.77 Total annual client incident service desk costs $749,801 $464,881 $284,920 PC administration costs Number of break-fix management FTEs 1.60 43.0% 0.91 Number of performance and availability management FTEs 0.32 24.0% 0.24 Number of security and compliance management FTEs 1.28 33.0% 0.86 Number of asset management, licensing and inventory FTEs 0.96 8.0% 0.88 Total FTEs 4.16 0.00 2.89 Average burdened labor cost per PC engineering FTE $82,719 24.0% $62,866 Total annual labor costs $344,111 $162,428 $181,683

ROI Analyst™


Total annual related travel costs $83 47.2% $44 Total PC support and administration costs $1,093,995 $627,348 $466,647 Desktop Virtualization Client Operations and Support

Efficiency Year 1 Year 2 Year 3 Year 4 Year 5 Current (As Is) $1,093,995 $1,137,755 $1,183,265 $1,230,596 $1,279,820 With Microsoft Integrated Virtualization (To Be) $466,647 $485,313 $504,726 $524,915 $545,912 Total Net Savings (As Is - To Be) $627,348 $652,442 $678,539 $705,681 $733,908 Annual growth in costs and benefits 4.0% n1 Notes: 1. Annual growth in annual salaries from Current Practices.


$466,647 $485,313 $504,726


$627,348 $652,442 $678,539

Q1 $0.00 $156,837.00 $163,110.50 Q2 $156,837.00 $163,110.50 $169,634.75 Q3 $156,837.00 $163,110.50 $169,634.75 Q4 $156,837.00 $163,110.50 $169,634.75 Realized Total Benefits $470,511 $646,168 $672,015 Existing Development and Test Lab Server Cost Avoidance

With Microsoft Integrated Virtualization, existing server workloads can be consolidated on fewer physical servers, with typical consolidation ratios of 3:1 to 8:1 consolidations. With this consolidation, existing server assets can be retired or reallocated, reducing annual amortized purchase costs and annual support and maintenance contract expenses. Cumulative Benefits (3 - Year): $1,526,354 Organization financial benefit type: Net Fixed Assets (NFA - Allocated) Values map to benefit class: Direct Benefits Goal: Reduce IT Capital Costs Stakeholder: VP Application Development

Current (As Is) Development and Test Lab Server Annual Costs Number of Servers Total Number of CPUs




Development servers 20 2 $4,694 $93,880 Unit test servers 40 2 $4,694 $187,760 Integration test servers 40 4 $9,387 $375,480 Database test servers 20 4 $9,387 $187,740 Other development, test and QA servers 0 2 $4,694 $0 Failover servers 0 2 $4,694 $0 Total 120 16 $844,860 With Microsoft Integrated Virtualization, server consolidation ratio expected: 4.6 to 1

Proposed with Microsoft Virtualization (To Be) Development and Test Lab Server Annual Costs Number of Servers Total Number of CPUs




Consolidated Development / Test Servers 26 4 $11,147 $289,822 Specify name 0 4 $11,147 $0 Specify name 0 4 $11,147 $0 Specify name 0 4 $11,147 $0 Specify name 0 4 $11,147 $0 Specify name 0 4 $11,147 $0 Total 26 24 $289,822

Existing Development and Test Lab Server Cost Avoidance Year 1 Year 2 Year 3 Year 4 Year 5

ROI Analyst™


Current (As Is) $844,860 $844,860 $844,860 $844,860 $844,860 With Microsoft Integrated Virtualization (To Be) $289,822 $289,822 $289,822 $289,822 $289,822 Total Net Savings (As Is - To Be) $555,038 $555,038 $555,038 $555,038 $555,038 Annual growth in costs and savings (if any - starting in year 2) 0.0% n1 Notes: 1. Annual growth in costs and savings expected (if any).


$289,822 $289,822 $289,822


$555,038 $555,038 $555,038

Q1 $0.00 $138,759.50 $138,759.50 Q2 $138,759.50 $138,759.50 $138,759.50 Q3 $138,759.50 $138,759.50 $138,759.50 Q4 $138,759.50 $138,759.50 $138,759.50 Realized Total Benefits $416,278 $555,038 $555,038 Production Server Power and Cooling Savings

With Microsoft Integrated Virtualization, existing servers can be retired or reallocated and existing servers avoided, helping to reduce the cost for power and cooling, and reduce carbon emissions, helping to save carbon credit costs, and strategically drive a "greener IT". Cumulative Benefits (3 - Year): $1,321,408 Organization financial benefit type: Operating Expense (Allocated) Values map to benefit class: Direct Benefits Goal: Reduce Facilities and Overhead Costs Stakeholder: IT Director Average cost per kWatt hour $0.092 n1 Operating hours per server per year 8,736 n2

Current (As Is) Production Server Power and Cooling Costs Number of Servers

Total Operating and Cooling Power per

Server (watts)

Total Operating Power per Year

(kWatts) Total Annual Cost File / print servers 200 1,430 2,498,496.000 $229,362 E-mail servers 50 2,600 1,135,680.000 $104,255 Application servers 40 1,430 499,699.200 $45,872 Database servers 24 2,600 545,126.400 $50,043 Web servers 50 1,430 624,624.000 $57,340 Failover servers 50 1,430 624,624.000 $57,340 Total 414 678,600 5,928,249.600 $544,212

Proposed with Microsoft Virtualization (To Be) Production Server Power and Cooling Annual Costs Number of Servers


Server (watts)


(kWatts) Total Annual Cost Consolidated Production Servers 71 2,028 1,257,879.168 $115,473 Specify name 0 2,028 0.000 $0 Specify name 0 2,028 0.000 $0 Specify name 0 2,028 0.000 $0 Specify name 0 2,028 0.000 $0 Specify name 0 2,028 0.000 $0 Total 71 143,988 1,257,879.168 $115,473

kWatts per year Year 1 Year 2 Year 3 Year 4 Year 5 Current (As Is) 5,928,249.600 6,686,607.327 7,541,976.226 8,506,766.228 9,594,974.777 With Microsoft Integrated Virtualization (To Be) 1,257,879.168 1,418,790.474 1,600,285.990 1,804,998.903 2,035,899.246 Total Net Savings (As Is - To Be) 4,670,370.432 5,267,816.853 5,941,690.236 6,701,767.325 7,559,075.531

Carbon Emission Reduction (year 1)

Total Operating and Cooling Power

Savings (kWatts)

Average CO2 Emission per kWh of Electrical Power (in

lbs) Total Operating

Hours

Total Carbon Emission Reduction

(in lbs) With Microsoft Integrated Virtualization (To Be) 4,670,370.432 1.341 8,736 54,713,277,522 n3

Production Server Power and Cooling Savings Year 1 Year 2 Year 3 Year 4 Year 5

ROI Analyst™


Current (As Is) $544,212 $613,829 $692,352 $780,920 $880,817 With Microsoft Integrated Virtualization (To Be) $115,473 $130,245 $146,906 $165,699 $186,896 Total Net Savings (As Is - To Be) $428,739 $483,584 $545,446 $615,221 $693,921 Annual growth in costs and savings (if any - starting in year 2) 12.8% n4 Notes: 1. Default is the average cost of electricity per watt hour in the U.S. according to Energy Information Administration, "Average Retail Price of Electricity to Ultimate Customer by End-Use Sector, by State." http://www.eia.doe.gov/cneaf/electricity/epm/table5_6_b.html 2. Assumes 24 hours per day, 7 days per week, 52 weeks per year of server operating power on and operating hours. 3. U.S. national average CO2 emission is 1.341 lbs per kWh of electrical power. This number can vary depending on region of the country and source of fuel for the power generating station (power plant), with Eastern coal being higher in CO2, followed by Western lignite coal, petroleum and natural gas, hydro, nuclear, thermo and wind, among others. Energy costs will vary by region and state, as well as from residential to business, based on power consumption levels. IT equipment energy costs need to reflect cooling costs that can be as much as twice those of the actual IT equipment, depending on the PUE (power usage effectiveness) of the data center. A typical gallon of gasoline (octane level will vary) will on average generate about 20 lbs of CO2. Approximately (this number is constantly changing) 78% of CO2 emissions in the U.S. are tied to electrical power generation. Carbon offset credits from organizations such as Terrapass can cost in the range of 250 USD per lb up to 10 metric tons of CO2 and 200 USD per pound for larger quantities up to 35 metric tons of CO2. One metric ton is equivalent to 2204.62262 lbs. 4. Annual growth in costs and savings expected (if any). Includes specified growth in power costs, as well as expected increase in the number of servers.


$115,473 $130,245 $146,906


$428,739 $483,584 $545,446

Q1 $0.00 $107,184.75 $120,896.00 Q2 $107,184.75 $120,896.00 $136,361.50 Q3 $107,184.75 $120,896.00 $136,361.50 Q4 $107,184.75 $120,896.00 $136,361.50 Realized Total Benefits $321,554 $469,873 $529,980 Development and Test Lab Support Savings

With Microsoft Integrated Virtualization, QA labs can run more test cases more efficiently, and help in reproducing bugs more effectively by providing quick provisioning of specific test and client environments, helping the team produce software that is more reliable, and help resolving issues more quickly when they are identified. Cumulative Benefits (3 - Year): $1,213,217 Organization financial benefit type: Operating Expense (Allocated) Values map to benefit class: Direct Benefits Goal: Reduce IT Operations and Administration Costs Stakeholder: VP Application Development

Development and Test Lab Support Savings - Internal Development Projects Current (As Is) Benefits with

Microsoft (To Be)


Virtualization (To Be) Major software releases Number of releases per year 6 6 Number of software error / bug related trouble tickets generated per release on average 50 50 Average call handling person hours per trouble ticket 0.5 90.0% 0.1 Total application bug handling service desk person hours per year 150 120 30 Average burdened labor cost per hour for service desk support $35.49 $35.49 Total annual bug service desk cost $5,324 $4,259 $1,065 Average developer / QA person hours per trouble ticket 10.0 90.0% 1.0 Total application bug handling developer / QA person hours per year 3,000 2,700 300 Average burdened labor cost per hour for developer / QA $54.45 $54.45 Total annual developer / QA bug handling cost $163,350 $147,015 $16,335 Software upgrade releases Number of releases per year 10 10 Number of software error / bug related trouble tickets generated per release on average 50 50 Average call handling person hours per trouble ticket 0.5 90.0% 0.1 Total application bug handling service desk person hours per year 250 200 50 Average burdened labor cost per hour for service desk support $35.49 $35.49 Total annual bug service desk cost $8,873 $7,098 $1,775 Average developer / QA person hours per trouble ticket 10.0 90.0% 1.0 Total application bug handling developer / QA person hours per year 5,000 4,500 500

ROI Analyst™


Average burdened labor cost per hour for developer / QA $54.45 $54.45 Total annual developer / QA bug handling cost $272,250 $245,025 $27,225 Total $449,797 $403,397 $46,400

Development and Test Lab Software Bug Reproduction Savings - Revenue Generating Projects (ISV) Current (As Is) Benefits with

Microsoft (To Be)


Virtualization (To Be) Major software releases Number of releases per year 0 0 Number of software error / bug related trouble tickets generated per release on average 50 50 Average call handling person hours per trouble ticket 0.5 90.0% 0.1 Total application bug handling service desk person hours per year 0 0 0 Average burdened labor cost per hour for service desk support $35.49 $35.49 Total annual bug service desk cost $0 $0 $0 Average developer / QA person hours per trouble ticket 10.0 90.0% 1.0 Total application bug handling developer / QA person hours per year 0 0 0 Average burdened labor cost per hour for developer / QA $54.45 $54.45 Total annual developer / QA bug handling cost $0 $0 $0 Software upgrade releases Number of releases per year 0 0 Number of software error / bug related trouble tickets generated per release on average 50 50 Average call handling person hours per trouble ticket 0.5 90.0% 0.1 Total application bug handling service desk person hours per year 0 0 0 Average burdened labor cost per hour for service desk support $35.49 $35.49 Total annual bug service desk cost $0 $0 $0 Average developer / QA person hours per trouble ticket 10.0 90.0% 1.0 Total application bug handling developer / QA person hours per year 0 0 0 Average burdened labor cost per hour for developer / QA $54.45 $54.45 Total annual developer / QA bug handling cost $0 $0 $0 Total $0 $0 $0

Development and Test Lab Support Savings Year 1 Year 2 Year 3 Year 4 Year 5 Current (As Is) $449,797 $494,777 $544,255 $598,681 $658,549 With Microsoft Integrated Virtualization (To Be) $46,400 $51,040 $56,144 $61,758 $67,934 Total Net Savings (As Is - To Be) $403,397 $443,737 $488,111 $536,923 $590,615 Average growth in costs and benefits (increase in releases, test cycles per build and provisioning requests) 10.0%


$46,400 $51,040 $56,144


$403,397 $443,737 $488,111

Q1 $0.00 $100,849.25 $110,934.25 Q2 $100,849.25 $110,934.25 $122,027.75 Q3 $100,849.25 $110,934.25 $122,027.75 Q4 $100,849.25 $110,934.25 $122,027.75 Realized Total Benefits $302,548 $433,652 $477,018 New Production Server Purchase Cost Avoidance

With Microsoft Integrated Virtualization, new server workloads can be consolidated onto fewer physical servers (see Existing Production Server Cost Avoidance), typically eliminating the need to add as many new servers to support new application and services deployments. With this consolidation, new server asset purchases can be avoided or reduced, reducing the annual amortized purchase costs for these new servers and eliminating related server annual support and maintenance contract expenses. Cumulative Benefits (3 - Year): $910,065 Organization financial benefit type: Net Fixed Assets (NFA - Cumulative) Values map to benefit class: Direct Benefits Goal: Reduce IT Capital Costs Stakeholder: IT Director

Current (As Is) New Production Server Costs Year 1 Year 2 Year 3 Year 4 Year 5 File / print servers Number of new server additions 20 22 24 27 29

ROI Analyst™


Number of new CPU additions 40 44 48 54 58 Average annual cost per server $4,694 $4,694 $4,694 $4,694 $4,694 Total cumulative additional costs per year $93,880 $197,148 $309,804 $436,542 $572,668 E-mail servers Number of new server additions 5 6 6 7 7 Number of new CPU additions 20 24 24 28 28 Average annual cost per server $9,387 $9,387 $9,387 $9,387 $9,387 Total cumulative additional costs per year $46,935 $103,257 $159,579 $225,288 $290,997 Application servers Number of new server additions 4 4 5 5 6 Number of new CPU additions 8 8 10 10 12 Average annual cost per server $4,694 $4,694 $4,694 $4,694 $4,694 Total cumulative additional costs per year $18,776 $37,552 $61,022 $84,492 $112,656 Database servers Number of new server additions 2 3 3 3 4 Number of new CPU additions 8 12 12 12 16 Average annual cost per server $9,387 $9,387 $9,387 $9,387 $9,387 Total cumulative additional costs per year $18,774 $46,935 $75,096 $103,257 $140,805 Web servers Number of new server additions 5 6 6 7 7 Number of new CPU additions 10 12 12 14 14 Average annual cost per server $4,694 $4,694 $4,694 $4,694 $4,694 Total cumulative additional costs per year $23,470 $51,634 $79,798 $112,656 $145,514 Failover servers Number of new server additions 5 6 6 7 7 Number of new CPU additions 10 12 12 14 14 Average annual cost per server $4,694 $4,694 $4,694 $4,694 $4,694 Total cumulative additional costs per year $23,470 $51,634 $79,798 $112,656 $145,514 New servers added 41 47 50 56 60 Cumulative new server count 41 88 138 194 254 Cumulative new server annual cost $225,305 $488,160 $765,097 $1,074,891 $1,408,154 With Microsoft Integrated Virtualization, server consolidation ratio expected: 5.8 to 1

Proposed (To Be) New Production Server Costs Year 1 Year 2 Year 3 Year 4 Year 5 Number of new server additions post consolidation 8 9 9 10 11 Number of new CPU additions 32 36 36 40 44 Average annual weighted average cost per server $11,147 $11,147 $11,147 $11,147 $11,147 Total cumulative additional costs per year $89,176 $189,499 $289,822 $401,292 $523,909

New Production Server Purchase Cost Avoidance Year 1 Year 2 Year 3 Year 4 Year 5 Current (As Is) $225,305 $488,160 $765,097 $1,074,891 $1,408,154 With Microsoft Integrated Virtualization (To Be) $89,176 $189,499 $289,822 $401,292 $523,909 Total Net Savings (As Is - To Be) $136,129 $298,661 $475,275 $673,599 $884,245


$89,176 $189,499 $289,822


$136,129 $298,661 $475,275

Q1 $0.00 $298,661.00 $475,275.00 Q2 $136,129.00 $0.00 $0.00 Q3 $0.00 $0.00 $0.00 Q4 $0.00 $0.00 $0.00 Realized Total Benefits $136,129 $298,661 $475,275 Desktop Virtualization Branch Office Server Cost Avoidance

With Microsoft Integrated Virtualization, some branch office server infrastructure may be consolidated or retired, replaced with centralized virtualized servers to support the branch office applications. Cumulative Benefits (3 - Year): $901,692

ROI Analyst™


Organization financial benefit type: Net Fixed Assets (NFA - Allocated) Values map to benefit class: Direct Benefits Goal: Reduce IT Capital Costs Stakeholder: PC Manager

Desktop Virtualization Branch Office Server Cost Avoidance Current (As Is) Benefits with

Microsoft (To Be)


Virtualization (To Be) Number of branch servers 80 30.0% 56 Average annual cost per server per year $13,662 $13,662 n1 Total branch office server cost per year $1,092,960 $327,888 $765,072

Desktop Virtualization Branch Office Server Cost Avoidance Year 1 Year 2 Year 3 Year 4 Year 5

Current (As Is) $1,092,960 $1,092,960 $1,092,960 $1,092,960 $1,092,960 With Microsoft Integrated Virtualization (To Be) $765,072 $765,072 $765,072 $765,072 $765,072 Total Net Savings (As Is - To Be) $327,888 $327,888 $327,888 $327,888 $327,888 Annual growth in costs and benefits 0.0% Notes: 1. Includes amortized capital cost of the infrastructure + annual support and administration contract, backup management, administration, power, cooling and facilities costs.


$765,072 $765,072 $765,072


$327,888 $327,888 $327,888

Q1 $0.00 $81,972.00 $81,972.00 Q2 $81,972.00 $81,972.00 $81,972.00 Q3 $81,972.00 $81,972.00 $81,972.00 Q4 $81,972.00 $81,972.00 $81,972.00 Realized Total Benefits $245,916 $327,888 $327,888 Production Server Networked Storage Savings

With Microsoft Integrated Virtualization, existing servers can be retired or reallocated and new server purchases avoided, helping to reduce the cost for supporting or implementing a networked storage environment. Cumulative Benefits (3 - Year): $644,670 Organization financial benefit type: Net Fixed Assets (NFA - Allocated) Values map to benefit class: Direct Benefits Goal: Reduce IT Capital Costs Stakeholder: IT Director

Current (As Is) Production Server Network Costs Year 1 Year 2 Year 3 Year 4 Year 5 Cumulative number of servers 455 502 552 608 668 Percentage of servers on SAN 100.0% 100.0% 100.0% 100.0% 100.0% Number of servers on SAN 455 502 552 608 668 Number of HBAs per server 2 2 2 2 2 Total number of HBAs 910 1,004 1,104 1,216 1,336 Annual cost per HBA $190.00 $190.00 $190.00 $190.00 $190.00 Total annual cost for HBAs $172,900.00 $190,760.00 $209,760.00 $231,040.00 $253,840.00 Number of SAN switch ports per HBA 2 2 2 2 2 Number of SAN switch ports consumed in total 1,820 2,008 2,208 2,432 2,672 Ports available per switch 16 16 16 16 16 Total number of switches 114 126 138 152 167 Annual cost per switch $2,280.00 $2,280.00 $2,280.00 $2,280.00 $2,280.00 Total annual cost $259,920 $287,280 $314,640 $346,560 $380,760

Proposed with Microsoft Virtualization (To Be) Production Server Network Costs Year 1 Year 2 Year 3 Year 4 Year 5

Cumulative number of servers 79 88 97 107 118 Percentage of servers on SAN 100.0% 100.0% 100.0% 100.0% 100.0% Number of servers on SAN 79 88 97 107 118 Number of HBAs per server 2 2 2 2 2

ROI Analyst™


Total number of HBAs 158 176 194 214 236 Annual cost per HBA $190.00 $190.00 $190.00 $190.00 $190.00 Total annual cost for HBAs $30,020.00 $33,440.00 $36,860.00 $40,660.00 $44,840.00 Number of SAN switch ports per HBA 2 2 2 2 2 Number of SAN switch ports consumed in total 316 352 388 428 472 Ports available per switch 16 16 16 16 16 Total number of switches 20 22 25 27 30 Annual cost per switch $2,280.00 $2,280.00 $2,280.00 $2,280.00 $2,280.00 Total annual cost $45,600 $50,160 $57,000 $61,560 $68,400

Production Server Networked Storage Savings Year 1 Year 2 Year 3 Year 4 Year 5 Current (As Is) $259,920 $287,280 $314,640 $346,560 $380,760 With Microsoft Integrated Virtualization (To Be) $45,600 $50,160 $57,000 $61,560 $68,400 Total Net Savings (As Is - To Be) $214,320 $237,120 $257,640 $285,000 $312,360


$45,600 $50,160 $57,000


$214,320 $237,120 $257,640

Q1 $0.00 $53,580.00 $59,280.00 Q2 $53,580.00 $59,280.00 $64,410.00 Q3 $53,580.00 $59,280.00 $64,410.00 Q4 $53,580.00 $59,280.00 $64,410.00 Realized Total Benefits $160,740 $231,420 $252,510 Desktop Virtualization Client Software License Cost Avoidance

With Microsoft Integrated Virtualization, application distribution can be better monitored and managed, eliminating the common issue of overbuying software licenses, or having only temporarily used licenses not re-distributed to those users who need access. Cumulative Benefits (3 - Year): $492,017 Organization financial benefit type: Net Fixed Assets (NFA - Allocated) Values map to benefit class: Direct Benefits Goal: Reduce IT Capital Costs Stakeholder: PC Manager

Desktop Virtualization Client Software License Cost Avoidance Current (As Is) Benefits with

Microsoft (To Be)


Virtualization (To Be) Current annual software spending $2,400,000 $2,400,000 Percentage estimate of overspending on unused / not properly allocated licenses 10.00% 70.0% 3.00% Total annual overspending $240,000 $168,000 $72,000

Desktop Virtualization Client Software License Cost Avoidance Year 1 Year 2 Year 3 Year 4 Year 5

Current (As Is) $240,000 $256,800 $274,776 $294,010 $314,591 With Microsoft Integrated Virtualization (To Be) $72,000 $77,040 $82,433 $88,203 $94,377 Total Net Savings (As Is - To Be) $168,000 $179,760 $192,343 $205,807 $220,214 Annual growth in costs and benefits 7.0% n1 Notes: 1. Annual growth in licensing spending / overspend, from Current Practices.


$72,000 $77,040 $82,433


$168,000 $179,760 $192,343

Q1 $0.00 $42,000.00 $44,940.00 Q2 $42,000.00 $44,940.00 $48,085.75

ROI Analyst™


Q3 $42,000.00 $44,940.00 $48,085.75 Q4 $42,000.00 $44,940.00 $48,085.75 Realized Total Benefits $126,000 $176,820 $189,197 Development and Test Lab Server Power and Cooling Savings

With Microsoft Integrated Virtualization, existing servers can be retired or reallocated and existing servers avoided, helping to reduce the cost for power and cooling, and reduce carbon emissions, helping to save carbon credit costs, and strategically drive a "greener IT". Cumulative Benefits (3 - Year): $467,330 Organization financial benefit type: Operating Expense (Allocated) Values map to benefit class: Direct Benefits Goal: Reduce Facilities and Overhead Costs Stakeholder: VP Application Development Average cost per Watt hour $0.0918 n1 Operating hours per server per year 8,736 n2

Current (As Is) Development and Test Lab Server Power and Cooling Costs Number of Servers


server (watts)


(kWatts) Total Annual Cost Development servers 20 1,430 249,849.600 $22,936 Unit test servers 40 1,430 499,699.200 $45,872 Integration test servers 40 2,600 908,544.000 $83,404 Database test servers 20 2,600 454,272.000 $41,702 Other development, test and QA servers 0 1,430 0.000 $0 Failover servers 0 1,430 0.000 $0 Total 120 241,800 2,112,364.800 $193,914

Proposed with Microsoft Virtualization (To Be) Development and Test Lab Server Power and Cooling

Annual Costs Number of Servers


Server (watts)


(kWatts) Total Annual Cost Consolidated Development / Test Servers 26 2,028 460,631.808 $42,286 Specify name 0 2,028 0.000 $0 Specify name 0 2,028 0.000 $0 Specify name 0 2,028 0.000 $0 Specify name 0 2,028 0.000 $0 Specify name 0 2,028 0.000 $0 Total 26 52,728 460,631.808 $42,286

kWatts Consumed per Year Year 1 Year 2 Year 3 Year 4 Year 5 Current (As Is) 2,112,364.800 2,382,584.220 2,687,370.839 3,031,146.587 3,418,899.059 With Microsoft Integrated Virtualization (To Be) 460,631.808 519,557.075 586,020.222 660,985.514 745,540.569 Total Net Savings (As Is - To Be) 1,651,732.992 1,863,027.145 2,101,350.617 2,370,161.073 2,673,358.490

Carbon Emission Reduction (year 1)

Total Operating and Cooling Power

Savings (kWatts)

Average CO2 emission per kWh of Electrical Power (in

lbs) Total Operating

Hours

Total Carbon Emission Reduction

(in lbs) With Microsoft Integrated Virtualization (To Be) 1,651,732.992 1.341 8,736 19,350,012,360 n3 Development and Test Lab Server Power and Cooling

Savings Year 1 Year 2 Year 3 Year 4 Year 5 Current (As Is) $193,914 $218,720 $246,699 $278,257 $313,852 With Microsoft Integrated Virtualization (To Be) $42,286 $47,695 $53,796 $60,678 $68,440 Total Net Savings (As Is - To Be) $151,628 $171,025 $192,903 $217,579 $245,412 Annual growth in costs and savings (if any - starting in year 2) 12.8% n4 Notes: 1. From Current Practices 2. From Current Practices 3. U.S. national average CO2 emission is 1.341 lbs per kWh of electrical power. This number can vary depending on region of the country and source of fuel for the power generating station (power plant), with Eastern coal being higher in CO2, followed by Western lignite coal, petroleum and natural gas, hydro, nuclear, thermo and wind, among others. Energy costs will vary by region and state, as well as from residential to business, based on power consumption levels. IT equipment energy costs need to reflect cooling costs that can be as much as twice those of the actual IT equipment, depending on the PUE (power usage effectiveness) of the data center. A typical gallon of gasoline (octane level will vary) will on average generate about 20 lbs of CO2. Approximately (this number is constantly changing) 78% of CO2 emissions in the U.S. are tied to electrical power generation. Carbon offset credits from organizations such as Terrapass can cost in the range of 250 USD per lb up to 10 metric tons of CO2 and 200 USD per pound for larger quantities up to 35 metric tons of CO2. One metric ton is equivalent to 2204.62262 lbs. 4. Annual growth in costs and savings expected (if any). Includes specified growth in power costs, as well as expected increase in the number of servers.

ROI Analyst™


Realized Benefits (Probable) Year 1 Year 2 Year 3

Solution A Current (As Is) $193,914 $218,720 $246,699 Solution B With Microsoft Integrated Virtualization (To Be)

$42,286 $47,695 $53,796


$151,628 $171,025 $192,903

Q1 $0.00 $37,907.00 $42,756.25 Q2 $37,907.00 $42,756.25 $48,225.75 Q3 $37,907.00 $42,756.25 $48,225.75 Q4 $37,907.00 $42,756.25 $48,225.75 Realized Total Benefits $113,721 $166,176 $187,434 Production Server Space Savings

With Microsoft Integrated Virtualization, existing servers can be retired or reallocated and purchasing of new server purchases avoided, helping to reduce current data center space, and avoid potentially having to expand and add additional data center space. Includes savings in amortized build out costs and annual mortgage / rent costs per square foot / meter saved. Cumulative Benefits (3 - Year): $446,902 Organization financial benefit type: Operating Expense (Allocated) Values map to benefit class: Direct Benefits Goal: Reduce Facilities and Overhead Costs Stakeholder: IT Director Average usable U space per typical server rack 24 Average square feet per rack 6.0 Average annual cost (amortized build out and rent / mortgage) per square feet of data center space $1,250.00 n1

Current (As Is) Production Server Data Center Space Annual Costs Number of Servers

Total "U" Rack Space Consumed per

Server Total Square Feet

Consumed Total Annual Cost File / print servers 200 1.0 50 $62,500 E-mail servers 50 2.0 25 $31,250 Application servers 40 1.0 10 $12,500 Database servers 24 2.0 12 $15,000 Web servers 50 1.0 13 $16,250 Failover servers 50 1.0 13 $16,250 Total 414 488 123 $153,750

Proposed with Microsoft Virtualization (To Be) Data Center Space Annual Costs Number of Servers



Consumed Total Annual Cost Consolidated Production Servers 71 0.4 7 $8,750 Specify name 0 0.4 0 $0 Specify name 0 0.4 0 $0 Specify name 0 0.4 0 $0 Specify name 0 0.4 0 $0 Specify name 0 0.4 0 $0 Total 71 28 7 $8,750

Production Server Space Savings Year 1 Year 2 Year 3 Year 4 Year 5 Current (As Is) $153,750 $173,418 $195,602 $220,624 $248,847 With Microsoft Integrated Virtualization (To Be) $8,750 $9,869 $11,131 $12,555 $14,161 Total Net Savings (As Is - To Be) $145,000 $163,549 $184,471 $208,069 $234,686 Annual growth in costs and savings (if any - starting in year 2) 12.8% n2 Notes: 1. Specifies the annual cost per square foot/meter of data center space, fully burdened for rent and amortized build out of the data center infrastructure such as raised flooring, power distribution, conduit and cabling access and cooling. 2. Annual growth in costs and savings expected (if any). Includes specified growth in power costs, as well as expected increase in the number of servers.


$8,750 $9,869 $11,131

ROI Analyst™



$145,000 $163,549 $184,471

Q1 $0.00 $36,250.00 $40,887.25 Q2 $36,250.00 $40,887.25 $46,117.75 Q3 $36,250.00 $40,887.25 $46,117.75 Q4 $36,250.00 $40,887.25 $46,117.75 Realized Total Benefits $108,750 $158,912 $179,240 Desktop Virtualization Service Desk User Savings

With Microsoft Integrated Virtualization, PC configuration management and support is centralized and simplified, helping organizations proactively avoid issues and reducing the time it takes to resolve incidents when they do occur. This can help reduce user downtime related to incident problem resolution. Cumulative Benefits (3 - Year): $357,627 Organization financial benefit type: Operating Expense (Allocated) Values map to benefit class: Indirect Benefits Goal: Improve User Productivity Stakeholder: PC Manager

Desktop Virtualization Service Desk User Savings Current (As Is) Benefits with Microsoft

(To Be)


Virtualization (To Be) Number of client related service desk calls per year 20,520 50.0% 10,260 Average duration for problem resolution (hours) per incident 0.50 24.0% 0.38 Total incident resolution related downtime person hours per year 10,260.0 6,361.2 3,898.8 Average burdened hourly salary for users $36.10 $36.10 Total end user operations annual cost $370,386 $229,639 $140,747 Realized costs 50.0% 50.0% Realized costs $185,193 $114,819 $70,374 Desktop Virtualization Service Desk User Savings Year 1 Year 2 Year 3 Year 4 Year 5

Current (As Is) $185,193 $211,120 $240,677 $274,372 $312,784 With Microsoft Integrated Virtualization (To Be) $70,374 $80,226 $91,458 $104,262 $118,859 Total Net Savings (As Is - To Be) $114,819 $130,894 $149,219 $170,110 $193,925 Annual growth in costs and savings (if any - starting in year 2) 14.0% n1 Notes: 1. Annual growth in costs and savings expected (if any). Includes specified growth in number of client computers, as well as expected increase in annual salary.


$70,374 $80,226 $91,458


$114,819 $130,894 $149,219

Q1 $0.00 $28,704.75 $32,723.50 Q2 $28,704.75 $32,723.50 $37,304.75 Q3 $28,704.75 $32,723.50 $37,304.75 Q4 $28,704.75 $32,723.50 $37,304.75 Realized Total Benefits $86,114 $126,875 $144,638 Desktop Virtualization Client Configuration Management Cost Avoidance

With Microsoft Integrated Virtualization, the need for infrastructure to support electronic software distribution is centralized, helping to reduce secondary server investments. Cumulative Benefits (3 - Year): $301,364 Organization financial benefit type: Net Fixed Assets (NFA - Allocated) Values map to benefit class: Direct Benefits Goal: Reduce IT Capital Costs Stakeholder: PC Manager

ROI Analyst™


Desktop Virtualization Client Configuration Management Cost Avoidance Current (As Is) Benefits with

Microsoft (To Be)


Virtualization (To Be) Annual spending on Electronic Software Distribution (ESD) infrastructure / servers $91,440 70.0% $27,432 ESD server and infrastructure savings $64,008 Average annual person hours spent on managing the ESD servers and infrastructure 1,248.0 70.0% 374.4 Average hourly burdened salary for server administration $47.72 $47.72 Total ESD management annual labor cost $59,555 $41,689 $17,866 Total costs $150,995 $105,697 $45,298

Desktop Virtualization Client Configuration Management Cost Avoidance Year 1 Year 2 Year 3 Year 4 Year 5

Current (As Is) $150,995 $157,035 $163,316 $169,849 $176,643 With Microsoft Integrated Virtualization (To Be) $45,298 $47,110 $48,994 $50,954 $52,992 Total Net Savings (As Is - To Be) $105,697 $109,925 $114,322 $118,895 $123,651 Annual growth in costs and benefits 4.0% n1 Notes: 1. Annual growth in annual salaries from Current Practices.


$45,298 $47,110 $48,994


$105,697 $109,925 $114,322

Q1 $0.00 $26,424.25 $27,481.25 Q2 $26,424.25 $27,481.25 $28,580.50 Q3 $26,424.25 $27,481.25 $28,580.50 Q4 $26,424.25 $27,481.25 $28,580.50 Realized Total Benefits $79,273 $108,868 $113,223 Development and Test Lab Software Bug Reproduction Savings

With Microsoft Integrated Virtualization, QA labs can more easily reconfigure the environment to help teams reproduce critical issues, helping to reduce workloads for bug reproduction. Cumulative Benefits (3 - Year): $258,352 Organization financial benefit type: Operating Expense (Allocated) Values map to benefit class: Direct Benefits Goal: Reduce IT Operations and Administration Costs Stakeholder: VP Application Development

Development and Test Lab Software Bug Reproduction Savings - Internal Development Projects Current (As Is) Benefits with

Microsoft (To Be)


Virtualization (To Be) Major software releases Number of releases per year 6 6 Average number of bugs that need to be reproduced per release 50 50 Average person hours spent per release to reproduce bugs 3.0 90.0% 0.3 Total bug reproduction person hours per year 900 810 90 Average burdened labor cost per hour for bug reproduction $39.77 $39.77 Total annual bug reproduction cost $35,793 $32,214 $3,579 Software upgrade releases Number of releases per year 10 10 Average number of bugs that need to be reproduced per release 50 50 Average person hours spent per release to reproduce bugs 3.0 90.0% 0.3 Total bug reproduction person hours per year 1,500 1,350 150 Average burdened labor cost per hour for bug reproduction $39.77 $39.77 Total annual bug reproduction cost $59,655 $53,689 $5,966 Total $95,448 $85,903 $9,545 Development and Test Lab Software Bug Reproduction Savings - Revenue Generatiing Projects (ISV) Current (As Is) Benefits with Proposed with

ROI Analyst™


Microsoft (To Be) Microsoft Virtualization (To Be)

Major software releases Number of releases per year 0 0 Average number of bugs that need to be reproduced per release 50 50 Average person hours spent per release to reproduce bugs 3.0 90.0% 0.3 Total bug reproduction person hours per year 0 0 0 Average burdened labor cost per hour for bug reproduction $39.77 $39.77 Total annual bug reproduction cost $0 $0 $0 Software upgrade releases Number of releases per year 0 0 Average number of bugs that need to be reproduced per release 50 50 Average person hours spent per release to reproduce bugs 3.0 90.0% 0.3 Total bug reproduction person hours per year 0 0 0 Average burdened labor cost per hour for bug reproduction $39.77 $39.77 Total annual bug reproduction cost $0 $0 $0 Total $0 $0 $0 Development and Test Lab Software Bug Reproduction

Savings Year 1 Year 2 Year 3 Year 4 Year 5 Current (As Is) $95,448 $104,993 $115,492 $127,041 $139,745 With Microsoft Integrated Virtualization (To Be) $9,545 $10,500 $11,550 $12,705 $13,976 Total Net Savings (As Is - To Be) $85,903 $94,493 $103,942 $114,336 $125,769 Average growth in costs and benefits (increase in releases, test cycles per build and provisioning requests) 10.0%


$9,545 $10,500 $11,550


$85,903 $94,493 $103,942

Q1 $0.00 $21,475.75 $23,623.25 Q2 $21,475.75 $23,623.25 $25,985.50 Q3 $21,475.75 $23,623.25 $25,985.50 Q4 $21,475.75 $23,623.25 $25,985.50 Realized Total Benefits $64,427 $92,346 $101,580 Desktop Virtualization End User Operations Savings

With Microsoft Integrated Virtualization, PC configuration management and support is centralized and simplified, helping organizations avoid users having to help manage their client systems (end user operations costs). Cumulative Benefits (3 - Year): $256,367 Organization financial benefit type: Operating Expense (Allocated) Values map to benefit class: Indirect Benefits Goal: Improve User Productivity Stakeholder: PC Manager

Desktop Virtualization End User Operations Savings Current (As Is) Benefits with Microsoft

(To Be)


Virtualization (To Be) Total number of client systems 6,000 6,000 Average person hours per year spent by users on end user operations tasks 4.00 95.0% 0.20 Total end user operations person hours per year 24,000.0 22,800.0 1,200.0 Average burdened hourly salary for users $36.10 $36.10 Total end user operations annual cost $866,400 $823,080 $43,320 Realized costs 10.0% 10.0% Realized costs $86,640 $82,308 $4,332 Desktop Virtualization End User Operations Savings Year 1 Year 2 Year 3 Year 4 Year 5 Current (As Is) $86,640 $98,770 $112,598 $128,362 $146,333 With Microsoft Integrated Virtualization (To Be) $4,332 $4,938 $5,629 $6,417 $7,315 Total net savings (As Is - To Be) $82,308 $93,832 $106,969 $121,945 $139,018 Annual growth in costs and savings (if any - starting in year 2) 14.0% n1 Notes:

ROI Analyst™


1. Annual growth in costs and savings expected (if any). Includes specified growth in number of client computers, as well as expected increase in annual salary.


$4,332 $4,938 $5,629


$82,308 $93,832 $106,969

Q1 $0.00 $20,577.00 $23,458.00 Q2 $20,577.00 $23,458.00 $26,742.25 Q3 $20,577.00 $23,458.00 $26,742.25 Q4 $20,577.00 $23,458.00 $26,742.25 Realized Total Benefits $61,731 $90,951 $103,685 Production Server Networking Savings

With Microsoft Integrated Virtualization, existing servers can be retired or reallocated and new server purchases avoided, helping to reduce the cost for networking. Cumulative Benefits (3 - Year): $191,520 Organization financial benefit type: Net Fixed Assets (NFA - Allocated) Values map to benefit class: Direct Benefits Goal: Reduce IT Capital Costs Stakeholder: IT Director

Current (As Is) Production Server Network Costs Year 1 Year 2 Year 3 Year 4 Year 5 Cumulative number of servers 455 502 552 608 668 Number of network ports per server 2 2 2 2 2 Number of network ports consumed in total 910 1,004 1,104 1,216 1,336 Ports available per switch 16 16 16 16 16 Total number of switches 0 63 69 76 84 Annual cost per switch $2,280 $2,280 $2,280 $2,280 $2,280 Total annual cost $0 $143,640 $157,320 $173,280 $191,520

Proposed with Microsoft Virtualization (To Be) Production Server Network Costs Year 1 Year 2 Year 3 Year 4 Year 5

Cumulative number of servers 79 88 97 107 118 Number of network ports per server 2 2 2 2 2 Number of network ports consumed in total 158 176 194 214 236 Ports available per switch 16 16 16 16 16 Total number of switches 10 11 13 14 15 Annual cost per switch $2,280 $2,280 $2,280 $2,280 $2,280 Total annual cost $22,800 $25,080 $29,640 $31,920 $34,200

Production Server Networking Savings Year 1 Year 2 Year 3 Year 4 Year 5 Current (As Is) $0 $143,640 $157,320 $173,280 $191,520 With Microsoft Integrated Virtualization (To Be) $22,800 $25,080 $29,640 $31,920 $34,200 Total Net Savings (As Is - To Be) ($22,800) $118,560 $127,680 $141,360 $157,320

Realized Benefits (Probable) Year 1 Year 2 Year 3 Solution A Current (As Is) $0 $143,640 $157,320 Solution B With Microsoft Integrated Virtualization (To Be)

$22,800 $25,080 $29,640


($22,800) $118,560 $127,680

Q1 $0.00 ($5,700.00) $29,640.00 Q2 ($5,700.00) $29,640.00 $31,920.00 Q3 ($5,700.00) $29,640.00 $31,920.00 Q4 ($5,700.00) $29,640.00 $31,920.00 Realized Total Benefits ($17,100) $83,220 $125,400

ROI Analyst™


Development and Test Lab Server Networked Storage Savings

With Microsoft Integrated Virtualization, existing servers can be retired or reallocated and new server purchases avoided, helping to reduce the cost for supporting or implementing a networked storage environment. Cumulative Benefits (3 - Year): $173,850 Organization financial benefit type: Net Fixed Assets (NFA - Allocated) Values map to benefit class: Direct Benefits Goal: Reduce IT Capital Costs Stakeholder: VP Application Development

Current (As Is) Development and Test Lab Server Network Costs Year 1 Year 2 Year 3 Year 4 Year 5

Cumulative number of servers 132 144 158 174 192 Percentage of servers on SAN 100.0% 100.0% 100.0% 100.0% 100.0% Number of servers on SAN 132 144 158 174 192 Number of HBAs per server 2 2 2 2 2 Total number of HBAs 264 288 316 348 384 Annual cost per HBA $190 $190.00 $190.00 $190.00 $190.00 Total annual cost for HBAs $50,160 $54,720.00 $60,040.00 $66,120.00 $72,960.00 Number of SAN switch ports per HBA 2 2 2 2 2 Number of SAN switch ports consumed in total 528 576 632 696 768 Ports available per switch 16 16 16 16 16 Total number of switches 33 36 40 44 48 Annual cost per switch $2,280.00 $2,280.00 $2,280.00 $2,280.00 $2,280.00 Total annual cost $75,240 $82,080 $91,200 $100,320 $109,440

Proposed with Microsoft Virtualization (To Be) Development and Test Lab Server Network Costs Year 1 Year 2 Year 3 Year 4 Year 5

Cumulative number of servers 29 32 35 38 42 Percentage of servers on SAN 100.0% 100.0% 100.0% 100.0% 100.0% Number of servers on SAN 29 32 35 38 42 Number of HBAs per server 2 2 2 2 2 Total number of HBAs 58 64 70 76 84 Annual cost per HBA $190.00 $190.00 $190.00 $190.00 $190.00 Total annual cost for HBAs $11,020 $12,160.00 $13,300.00 $14,440.00 $15,960.00 Number of SAN switch ports per HBA 2 2 2 2 2 Number of SAN switch ports consumed in total 116 128 140 152 168 Ports available per switch 16 16 16 16 16 Total number of switches 8 8 9 10 11 Annual cost per switch $2,280.00 $2,280.00 $2,280.00 $2,280.00 $2,280.00 Total annual cost $18,240 $18,240 $20,520 $22,800 $25,080 Development and Test Lab Server Networked Storage

Savings Year 1 Year 2 Year 3 Year 4 Year 5 Current (As Is) $75,240 $82,080 $91,200 $100,320 $109,440 With Microsoft Integrated Virtualization (To Be) $18,240 $18,240 $20,520 $22,800 $25,080 Total Net Savings (As Is - To Be) $57,000 $63,840 $70,680 $77,520 $84,360


$18,240 $18,240 $20,520


$57,000 $63,840 $70,680

Q1 $0.00 $14,250.00 $15,960.00 Q2 $14,250.00 $15,960.00 $17,670.00 Q3 $14,250.00 $15,960.00 $17,670.00 Q4 $14,250.00 $15,960.00 $17,670.00 Realized Total Benefits $42,750 $62,130 $68,970 Development and Test Lab Server Space Savings

With Microsoft Integrated Virtualization, existing servers can be retired or reallocated and purchasing of new server purchases avoided, helping to reduce current data center space, and avoid potentially having to expand and add additional data center space. Includes savings in amortized build out costs and annual mortgage / rent costs per square foot / meter saved.

ROI Analyst™


Cumulative Benefits (3 - Year): $163,350 Organization financial benefit type: Operating Expense (Allocated) Values map to benefit class: Direct Benefits Goal: Reduce Facilities and Overhead Costs Stakeholder: VP Application Development Average usable U space per typical server rack 24 n1 Average square feet per rack 6.0 n2 Average annual cost (amortized build out and rent / mortgage) per square feet of data center space $1,250.00 n3

Current (As Is) Development and Test Lab Server Data Center Space Annual Costs Number of Servers



Consumed Total Annual Cost Development servers 20 1.0 5.0 $6,250 Unit test servers 40 1.0 10.0 $12,500 Integration test servers 40 2.0 20.0 $25,000 Database test servers 20 2.0 10.0 $12,500 Other development, test and QA servers 0 1.0 0.0 $0 Failover servers 0 1.0 0.0 $0 Total 120 180.0 45.0 $56,250

Proposed with Microsoft Virtualization (To Be) Data Center Space Annual Costs Number of Servers



Consumed Total Annual Cost Consolidated Development / Test Servers 26 0.4 2.6 $3,250 Specify name 0 0.4 0.0 $0 Specify name 0 0.4 0.0 $0 Specify name 0 0.4 0.0 $0 Specify name 0 0.4 0.0 $0 Specify name 0 0.4 0.0 $0 Total 26 10.4 2.6 $3,250

Development and Test Lab Server Space Savings Year 1 Year 2 Year 3 Year 4 Year 5 Current (As Is) $56,250 $63,446 $71,562 $80,716 $91,041 With Microsoft Integrated Virtualization (To Be) $3,250 $3,666 $4,135 $4,664 $5,261 Total Net Savings (As Is - To Be) $53,000 $59,780 $67,427 $76,052 $85,780 Annual growth in costs and savings (if any - starting in year 2) 12.8% n4 Notes: 1. From Current Practices 2. From Current Practices 3. From Current Practices 4. Annual growth in costs and savings expected (if any). Includes specified growth in power costs, as well as expected increase in the number of servers.


$3,250 $3,666 $4,135


$53,000 $59,780 $67,427

Q1 $0.00 $13,250.00 $14,945.00 Q2 $13,250.00 $14,945.00 $16,856.75 Q3 $13,250.00 $14,945.00 $16,856.75 Q4 $13,250.00 $14,945.00 $16,856.75 Realized Total Benefits $39,750 $58,085 $65,515 Development and Test Lab Server Networking Savings

With Microsoft Integrated Virtualization, existing servers can be retired or reallocated and new server purchases avoided, helping to reduce the cost for networking. Cumulative Benefits (3 - Year): $87,210 Organization financial benefit type: Net Fixed Assets (NFA - Allocated) Values map to benefit class: Direct Benefits Goal: Reduce IT Capital Costs Stakeholder: VP Application Development

ROI Analyst™


Current (As Is) Development and Test Lab Server Network Costs Year 1 Year 2 Year 3 Year 4 Year 5

Cumulative number of servers 132 144 158 174 192 Number of network ports per server 2 2 2 2 2 Number of network ports consumed in total 264 288 316 348 384 Ports available per switch 16 16 16 16 16 Total number of switches 17 18 20 22 24 Annual cost per switch $2,280.00 $2,280 $2,280 $2,280 $2,280 Total annual cost $38,760 $41,040 $45,600 $50,160 $54,720

Proposed with Microsoft Virtualization (To Be) Development and Test Lab Server Network Costs Year 1 Year 2 Year 3 Year 4 Year 5

Cumulative number of servers 29 32 35 38 42 Number of network ports per server 2 2 2 2 2 Number of network ports consumed in total 58 64 70 76 84 Ports available per switch 16 16 16 16 16 Total number of switches 4 4 5 5 6 Annual cost per switch $2,280.00 $2,280 $2,280 $2,280 $2,280 Total annual cost $9,120 $9,120 $11,400 $11,400 $13,680 Development and Test Lab Server Networking Savings Year 1 Year 2 Year 3 Year 4 Year 5 Current (As Is) $38,760 $41,040 $45,600 $50,160 $54,720 With Microsoft Integrated Virtualization (To Be) $9,120 $9,120 $11,400 $11,400 $13,680 Total Net Savings (As Is - To Be) $29,640 $31,920 $34,200 $38,760 $41,040


$9,120 $9,120 $11,400


$29,640 $31,920 $34,200

Q1 $0.00 $7,410.00 $7,980.00 Q2 $7,410.00 $7,980.00 $8,550.00 Q3 $7,410.00 $7,980.00 $8,550.00 Q4 $7,410.00 $7,980.00 $8,550.00 Realized Total Benefits $22,230 $31,350 $33,630 Production Server Provisioning Efficiency Savings

With Microsoft Integrated Virtualization, physical changes can be performed in a virtual environment leading to dramatic 40-80% improvements in reducing the person hours it takes to perform new server installations including avoidance of procurement and vendor management costs, physical hardware setup and deployment, as well as better OS / application setup and delivery efficiency. Cumulative Benefits (3 - Year): $85,283 Organization financial benefit type: Operating Expense (Allocated) Values map to benefit class: Direct Benefits Goal: Reduce IT Operations and Administration Costs Stakeholder: IT Director

Current (As Is) Production Server Provisioning Labor Costs Year 1 Year 2 Year 3 Year 4 Year 5

Number of new servers added per year 41 47 50 56 60 Person hours per server add task Server procurement and vendor management 1.5 1.5 1.5 1.5 1.5 Server hardware setup, configuration, and deployment 4.6 4.6 4.6 4.6 4.6 Operating system installation, configuration and deployment 4.0 4.0 4.0 4.0 4.0 Application installation, configuration and deployment 4.0 4.0 4.0 4.0 4.0 Additional on-site travel time 0.6 0.6 0.6 0.6 0.6 Total person hours per addition 14.7 14.7 14.7 14.7 14.7 Total for all server adds per year 602.7 690.9 735.0 823.2 882.0 Average hourly burdened labor costs for server provisioning $45.89 $47.73 $49.64 $51.63 $53.70 Total annual server add labor costs $27,658 $32,977 $36,485 $42,502 $47,363

Proposed with Microsoft Virtualization (To Be) Production Server Provisioning Labor Costs Year 1 Year 2 Year 3 Year 4 Year 5

Number of new physical servers added per year 8 9 9 10 11

ROI Analyst™


Person hours per server add task Server procurement and vendor management 1.5 1.5 1.5 1.5 1.5 Server hardware setup, configuration, and deployment 4.6 4.6 4.6 4.6 4.6 Additional on-site travel time 0.6 0.6 0.6 0.6 0.6 Total Person Hours per Addition 6.7 6.7 6.7 6.7 6.7 Total person hours for all server adds per year 30.8 30.8 30.8 30.8 30.8 Average hourly burdened labor costs for server provisioning $45.89 $47.73 $49.64 $51.63 $53.70 Total annual server add labor costs $1,413 $1,470 $1,529 $1,590 $1,654 Number of logical server additions per year 41 47 50 56 60 Operating system installation, configuration and deployment 1.2 1.2 1.2 1.2 1.2 Application installation, configuration and deployment 1.2 1.2 1.2 1.2 1.2 Total person hours per addition 2.4 2.4 2.4 2.4 2.4 Total for all server adds per year 19.2 21.6 21.6 24.0 26.4 Average hourly burdened labor costs for server provisioning $45.89 $47.73 $49.64 $51.63 $53.70 Total annual server add labor costs $881 $1,031 $1,072 $1,239 $1,418

Production Server Provisioning Efficiency Savings Year 1 Year 2 Year 3 Year 4 Year 5 Current (As Is) $27,658 $32,977 $36,485 $42,502 $47,363 With Microsoft Integrated Virtualization (To Be) $881 $1,031 $1,072 $1,239 $1,418 Total Net Savings (As Is - To Be) $26,777 $31,946 $35,413 $41,263 $45,945

Savings in per Physical Server Provisioning Tasks (used above)

Per Task Savings with Microsoft Integrated Virtualization Server

Server procurement and vendor management 0.0% n1 Server hardware setup, configuration, and deployment 0.0% n2 Operating system installation, configuration and deployment 70.0% n3 Application installation, configuration and deployment 70.0% n4 Additional on-site travel time 0.0% Notes: 1. Physical servers still need to be purchased regardless of the environment 2. Physical servers still need to be installed and setup regardless of the environment. 3. With Microsoft Virtualization, operating system installation, configuration and deployment are greatly simplified, especially when System Center / Virtual Machine Manager is utilized. 4. With Microsoft Virtualization, application installation, configuration and deployment are greatly simplified, especially when System Center / Virtual Machine Manager is utilized.


$881 $1,031 $1,072


$26,777 $31,946 $35,413

Q1 $0.00 $6,694.25 $7,986.50 Q2 $6,694.25 $7,986.50 $8,853.25 Q3 $6,694.25 $7,986.50 $8,853.25 Q4 $6,694.25 $7,986.50 $8,853.25 Realized Total Benefits $20,083 $30,654 $34,546 Desktop Virtualization PC Recovery Labor Avoidance

With Microsoft Integrated Virtualization, PC configuration management and support is centralized and PC restoration virtualized from hardware, making recovery possible to any network connected PC, helping to reduce the workload to get the OS, applications and data restored quickly should a PC become corrupted or damaged. Cumulative Benefits (3 - Year): $57,230 Organization financial benefit type: Operating Expense (Allocated) Values map to benefit class: Direct Benefits Goal: Reduce IT Operations and Administration Costs Stakeholder: PC Manager

ROI Analyst™


Desktop Virtualization PC Recovery Labor Avoidance Current (As Is) Benefits with

Microsoft (To Be)


Virtualization (To Be) Number of clients affected by crashes per year 165 0.0% 165 Average IT person hours per affected client to perform recovery 4.0 70.0% 1.2 Total recovery related IT person hours per year 660.0 462.0 198.0 Average burdened hourly salary for PC engineering staff $39.77 $39.77 Total disaster recovery labor annual cost $26,248 $18,374 $7,874 Desktop Virtualization PC Recovery Labor Avoidance Year 1 Year 2 Year 3 Year 4 Year 5 Current (As Is) $26,248 $29,923 $34,112 $38,888 $44,332 With Microsoft Integrated Virtualization (To Be) $7,874 $8,976 $10,233 $11,666 $13,299 Total Net Savings (As Is - To Be) $18,374 $20,947 $23,879 $27,222 $31,033 Annual growth in costs and savings (if any - starting in year 2) 14.0% n1 Notes: 1. Annual growth in costs and savings expected (if any). Includes specified growth in number of client computers, as well as expected increase in annual salary.


$7,874 $8,976 $10,233


$18,374 $20,947 $23,879

Q1 $0.00 $4,593.50 $5,236.75 Q2 $4,593.50 $5,236.75 $5,969.75 Q3 $4,593.50 $5,236.75 $5,969.75 Q4 $4,593.50 $5,236.75 $5,969.75 Realized Total Benefits $13,780 $20,304 $23,146 Production Server Planned Downtime Avoidance

With Microsoft Integrated Virtualization, planned downtime can be avoided by reducing the amount of physical maintenance required, and providing for flexible job reallocation, enabling any physical scheduled maintenance to be conducted without any user impact. Cumulative Benefits (3 - Year): $49,592 Organization financial benefit type: Operating Expense (Allocated) Values map to benefit class: Indirect Benefits Goal: Reduce Planned Downtime Stakeholder: IT Director

Production Server Planned Downtime Avoidance Current (As Is) Benefits with Microsoft

(To Be)


Virtualization (To Be) Total number of servers 414 71 Annual planned downtime hours per year 4.00 40.0% 2.40 Total planned downtime hours per year 1,656.0 1,485.6 170.4 Average number of internal users impacted per planned downtime hour 30.00 30.00 Percentage productivity impact 1.0% 1.0% n1 Total person hours of lost productivity for internal users 496.8 445.7 51.1 Average burdened hourly salary for users $36.10 $36.10 Total planned downtime annual cost $17,934 $16,089 $1,845 Production Server Planned Downtime Avoidance Year 1 Year 2 Year 3 Year 4 Year 5

Current (As Is) $17,934 $20,230 $22,819 $25,740 $29,035 With Microsoft Integrated Virtualization (To Be) $1,845 $2,081 $2,347 $2,647 $2,986 Total Net Savings (As Is - To Be) $16,089 $18,149 $20,472 $23,093 $26,049 Annual growth in costs and savings (if any - starting in year 2) 12.8% n2 Notes:

ROI Analyst™


1. May be higher for To Be solution as consolidation of servers occurs. 2. Annual growth in costs and savings expected (if any). Includes specified growth in number of servers, as well as expected increase in annual salary.


$1,845 $2,081 $2,347


$16,089 $18,149 $20,472

Q1 $0.00 $4,022.25 $4,537.25 Q2 $4,022.25 $4,537.25 $5,118.00 Q3 $4,022.25 $4,537.25 $5,118.00 Q4 $4,022.25 $4,537.25 $5,118.00 Realized Total Benefits $12,067 $17,634 $19,891 Desktop Virtualization Security Incident Labor Avoidance

With Microsoft Integrated Virtualization, PC configuration management and support is centralized and controlled, helping to assure that latest updates are applied and better secure PCs against viruses, worm or other malware issues and risks. This can help to eliminate the issues and reduce the labor cost for IT having to respond and resolve the issues. Cumulative Benefits (3 - Year): $35,674 Organization financial benefit type: Operating Expense (Allocated) Values map to benefit class: Direct Benefits Goal: Reduce IT Operations and Administration Costs Stakeholder: PC Manager

Desktop Virtualization Security Incident Labor Avoidance Current (As Is) Benefits with

Microsoft (To Be)


Virtualization (To Be) Number of clients affected by viruses and malware each year 180 40.0% 108 Average IT person hours per affected client to perform recovery 4.0 0.0% 4.0 Total incident resolution related IT person hours per year 720.0 288.0 432.0 Average burdened hourly salary for PC engineering staff $39.77 $39.77 Total security incidents annual labor cost $28,634 $11,453 $17,181

Desktop Virtualization Security Incident Labor Avoidance Year 1 Year 2 Year 3 Year 4 Year 5

Current (As Is) $28,634 $32,643 $37,213 $42,423 $48,362 With Microsoft Integrated Virtualization (To Be) $17,181 $19,586 $22,328 $25,454 $29,018 Total Net Savings (As Is - To Be) $11,453 $13,057 $14,885 $16,969 $19,344 Annual growth in costs and savings (if any - starting in year 2) 14.0% n1 Notes: 1. Annual growth in costs and savings expected (if any). Includes specified growth in number of client computers, as well as expected increase in annual salary.


$17,181 $19,586 $22,328


$11,453 $13,057 $14,885

Q1 $0.00 $2,863.25 $3,264.25 Q2 $2,863.25 $3,264.25 $3,721.25 Q3 $2,863.25 $3,264.25 $3,721.25 Q4 $2,863.25 $3,264.25 $3,721.25 Realized Total Benefits $8,590 $12,656 $14,428 Production Server Disaster Recovery Time Savings

ROI Analyst™


With Microsoft Integrated Virtualization, remote / branch server recovery time can be dramatically reduced eliminating the need for physical bare metal restoration, helping to get operations and the workforce back up and running for branch office / remote server issues. Cumulative Benefits (3 - Year): $29,377 Organization financial benefit type: Operating Expense (Allocated) Values map to benefit class: Indirect Benefits Goal: Reduce Business Risk Stakeholder: IT Director

Production Server Disaster Recovery Time Savings Current (As Is) Benefits with Microsoft

(To Be)


Virtualization (To Be) Risk of a site issue per year 12.5% 12.5% Expected recovery hours 15.0 60.0% 6.0 Total average recovery hours per year 1.9 1.1 0.8 Average number of internal users impacted per planned downtime hour 600 600 Percentage productivity impact 40.0% 40.0% n1 Total person hours of lost productivity for internal users 456.0 264.0 192.0 Average burdened hourly salary for users $36.10 $36.10 Total planned downtime annual cost $16,462 $9,531 $6,931 Production Server Disaster Recovery Time Savings Year 1 Year 2 Year 3 Year 4 Year 5 Current (As Is) $16,462 $18,569 $20,946 $23,627 $26,651 With Microsoft Integrated Virtualization (To Be) $6,931 $7,818 $8,819 $9,948 $11,221 Total Net Savings (As Is - To Be) $9,531 $10,751 $12,127 $13,679 $15,430 Annual growth in costs and savings (if any - starting in year 2) 12.8% n2 Notes: 1. May be higher for To Be solution as consolidation of servers occurs. 2. Annual growth in costs and savings expected (if any). Includes specified growth in number of servers, as well as expected increase in annual salary.


$6,931 $7,818 $8,819


$9,531 $10,751 $12,127

Q1 $0.00 $2,382.75 $2,687.75 Q2 $2,382.75 $2,687.75 $3,031.75 Q3 $2,382.75 $2,687.75 $3,031.75 Q4 $2,382.75 $2,687.75 $3,031.75 Realized Total Benefits $7,148 $10,446 $11,783 Desktop Virtualization PC Recovery Risk Avoidance

With Microsoft Integrated Virtualization, PC configuration management and support is centralized and PC restoration virtualized from hardware, making recovery possible to any network connected PC, helping to reduce the workload to get the OS, applications and data restored quickly should a PC become corrupted or damaged. Cumulative Benefits (3 - Year): $25,974 Organization financial benefit type: Operating Expense (Allocated) Values map to benefit class: Indirect Benefits Goal: Reduce Business Risk Stakeholder: PC Manager

Desktop Virtualization PC Recovery Risk Avoidance Current (As Is) Benefits with Microsoft

(To Be)


Virtualization (To Be) Number of clients affected by crashes per year 165 0.0% 165 Average user downtime hours per affected client to perform recovery 4.00 70.0% 1.20 Total recovery related downtime person hours per year 660.0 462.0 198.0 Average burdened hourly salary for users $36.10 $36.10 Total annual downtime cost $23,826 $16,678 $7,148 Realized costs 50.0% 50.0% Realized costs $11,913 $8,339 $3,574

ROI Analyst™


Desktop Virtualization PC Recovery Risk

Avoidance Year 1 Year 2 Year 3 Year 4 Year 5 Current (As Is) $11,913 $13,581 $15,482 $17,649 $20,120 With Microsoft Integrated Virtualization (To Be) $3,574 $4,074 $4,644 $5,294 $6,035 Total net savings (As Is - To Be) $8,339 $9,507 $10,838 $12,355 $14,085 Annual growth in costs and savings (if any - starting in year 2) 14.0% n1 Notes: 1. Annual growth in costs and savings expected (if any). Includes specified growth in number of client computers, as well as expected increase in annual salary.


$3,574 $4,074 $4,644


$8,339 $9,507 $10,838

Q1 $0.00 $2,084.75 $2,376.75 Q2 $2,084.75 $2,376.75 $2,709.50 Q3 $2,084.75 $2,376.75 $2,709.50 Q4 $2,084.75 $2,376.75 $2,709.50 Realized Total Benefits $6,254 $9,215 $10,505 Desktop Virtualization Security Risk Avoidance

With Microsoft Integrated Virtualization, PC configuration management and support is centralized and controlled, helping to assure that latest updates are applied and better secure PCs against viruses, worm or other malware issues and risks. This can help to eliminate the issues and reduce the downtime to users. Cumulative Benefits (3 - Year): $16,188 Organization financial benefit type: Operating Expense (Allocated) Values map to benefit class: Indirect Benefits Goal: Reduce Business Risk Stakeholder: PC Manager

Desktop Virtualization Security Risk Avoidance Current (As Is) Benefits with Microsoft

(To Be)


Virtualization (To Be) Number of clients affected by viruses and malware each year 180 40.0% 108 Average downtime hours per affected client 4.00 0.0% 4.00 Total incident resolution related downtime person hours per year 720.0 288.0 432.0 Average burdened hourly salary for users $36.10 $36.10 Total annual downtime cost $25,992 $10,397 $15,595 Realized costs 50.0% 50.0% Realized costs $12,996 $5,198 $7,798

Desktop Virtualization Security Risk Avoidance Year 1 Year 2 Year 3 Year 4 Year 5 Current (As Is) $12,996 $14,815 $16,889 $19,253 $21,948 With Microsoft Integrated Virtualization (To Be) $7,798 $8,890 $10,135 $11,554 $13,172 Total net savings (As Is - To Be) $5,198 $5,925 $6,754 $7,699 $8,776 Annual growth in costs and savings (if any - starting in year 2) 14.0% n1 Notes: 1. Annual growth in costs and savings expected (if any). Includes specified growth in number of client computers, as well as expected increase in annual salary.


$7,798 $8,890 $10,135


$5,198 $5,925 $6,754

ROI Analyst™


Q1 $0.00 $1,299.50 $1,481.25 Q2 $1,299.50 $1,481.25 $1,688.50 Q3 $1,299.50 $1,481.25 $1,688.50 Q4 $1,299.50 $1,481.25 $1,688.50 Realized Total Benefits $3,898 $5,743 $6,547 PC Data Management Risks

With Microsoft Integrated Virtualization, PC data can be more effectively managed, especially removing the data from the client and storing it centrally. This can result in substantial reduction in risk from client stored data and data theft / disclosure risks / costs. Cumulative Benefits (3 - Year): $14,016 Organization financial benefit type: Operating Expense (Allocated) Values map to benefit class: Direct Benefits Goal: Reduce Business Risk Stakeholder: PC Manager

PC Data Management Risks Current (As Is) Benefits with

Microsoft (To Be)


Virtualization (To Be) Annual risk of a client data related theft or disclosure 3.0% 30.0% 2.1% Average cost per event if realized $500,000 $500,000 Total data theft and disclosure costs $15,000 $4,500 $10,500

PC Data Management Risks Year 1 Year 2 Year 3 Year 4 Year 5 Current (As Is) $15,000 $17,100 $19,494 $22,223 $25,334 With Microsoft Integrated Virtualization (To Be) $10,500 $11,970 $13,646 $15,556 $17,734 Total Net Savings (As Is - To Be) $4,500 $5,130 $5,848 $6,667 $7,600 Annual growth in costs and savings (if any - starting in year 2) 14.0% n1 Notes: 1. Annual growth in costs and savings expected (if any). Includes specified growth in number of client computers, as well as expected increase in annual salary.


$10,500 $11,970 $13,646


$4,500 $5,130 $5,848

Q1 $0.00 $1,125.00 $1,282.50 Q2 $1,125.00 $1,282.50 $1,462.00 Q3 $1,125.00 $1,282.50 $1,462.00 Q4 $1,125.00 $1,282.50 $1,462.00 Realized Total Benefits $3,375 $4,972 $5,668 Desktop Virtualization Disaster Recovery Labor Avoidance

With Microsoft Integrated Virtualization, PC configuration management and support is centralized and PC restoration virtualized from hardware, making recovery possible to any network connected PC, helping to reduce the workload to get sites and workforces up and running should a disaster occur. Cumulative Benefits (3 - Year): $1,116 Organization financial benefit type: Operating Expense (Allocated) Values map to benefit class: Direct Benefits Goal: Reduce IT Operations and Administration Costs Stakeholder: PC Manager

Desktop Virtualization Disaster Recovery Labor Avoidance Current (As Is) Benefits with

Microsoft (To Be)


Virtualization (To Be) Number of clients affected by disaster issues per year 30 0.0% 30 Average IT person hours per affected client to perform recovery 0.5 70.0% 0.2 Total recovery related IT person hours per year 15.0 9.0 6.0

ROI Analyst™


Average burdened hourly salary for PC engineering staff $39.77 $39.77 Total disaster recovery labor annual cost $597 $358 $239

Desktop Virtualization Disaster Recovery Labor Avoidance Year 1 Year 2 Year 3 Year 4 Year 5

Current (As Is) $597 $681 $776 $885 $1,009 With Microsoft Integrated Virtualization (To Be) $239 $272 $310 $353 $402 Total Net Savings (As Is - To Be) $358 $409 $466 $532 $607 Annual growth in costs and savings (if any - starting in year 2) 14.0% n1 Notes: 1. Annual growth in costs and savings expected (if any). Includes specified growth in number of client computers, as well as expected increase in annual salary.


$239 $272 $310


$358 $409 $466

Q1 $0.00 $89.50 $102.25 Q2 $89.50 $102.25 $116.50 Q3 $89.50 $102.25 $116.50 Q4 $89.50 $102.25 $116.50 Realized Total Benefits $268 $396 $452 Desktop Virtualization Disaster Recovery Risk Avoidance

With Microsoft Integrated Virtualization, PC configuration management and support is centralized and PC restoration virtualized from hardware, making recovery possible to any network connected PC, helping to reduce the time it takes to get sites and workforces up and running should a disaster occur. Cumulative Benefits (3 - Year): $592 Organization financial benefit type: Operating Expense (Allocated) Values map to benefit class: Indirect Benefits Goal: Reduce Business Risk Stakeholder: PC Manager

Desktop Virtualization Disaster Recovery Risk Avoidance Current (As Is) Benefits with Microsoft

(To Be)


Virtualization (To Be) Number of clients affected by disaster issues per year 30 0.0% 30 Average user downtime hours per affected client to perform recovery 0.50 70.0% 0.15 Total recovery related downtime person hours per year 15.0 10.5 4.5 Average burdened hourly salary for users $36.10 $36.10 Total annual downtime cost $542 $380 $162 Realized costs 50.0% 50.0% Realized costs $271 $190 $81

Desktop Virtualization Disaster Recovery Risk Avoidance Year 1 Year 2 Year 3 Year 4 Year 5

Current (As Is) $271 $309 $352 $401 $457 With Microsoft Integrated Virtualization (To Be) $81 $92 $105 $120 $137 Total net savings (As Is - To Be) $190 $217 $247 $281 $320 Annual growth in costs and savings (if any - starting in year 2) 14.0% n1 Notes: 1. Annual growth in costs and savings expected (if any). Includes specified growth in number of client computers, as well as expected increase in annual salary.


$81 $92 $105


$190 $217 $247

ROI Analyst™


Q1 $0.00 $47.50 $54.25 Q2 $47.50 $54.25 $61.75 Q3 $47.50 $54.25 $61.75 Q4 $47.50 $54.25 $61.75 Realized Total Benefits $142 $210 $240

ROI Analyst™


Appendix D: Investment Details Desktop and Application Virtualization Licensing and Infrastructure Costs

The cost for training classes / certification to implement the planned Microsoft Development and Test Lab Server Virtualization. Cumulative Cost (3 - Year): $4,958,627 Organization financial cost type: Net Fixed Assets (NFA) Values map to expense category: Capital Expenditure Desktop and Application Virtualization

Licensing and Infrastructure Costs Initial Year 1 Year 2 Year 3 Year 4 Year 5 Terminal Services Number of clients 6,000 600 660 726 799 879 Cost per client $149.80 $149.80 $149.80 $149.80 $149.80 $149.80 Total cost $898,800 $89,880 $98,868 $108,755 $119,690 $131,674 Hosted Desktop using Windows Vista Enterprise Centralized Desktops Number of clients 6,000 600 660 726 799 879 Cost per client $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total cost $0 $0 $0 $0 $0 $0 Virtual PC Number of clients 0 0 0 0 0 0 Cost per client $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total cost $0 $0 $0 $0 $0 $0 Application Virtualization using Microsoft MDOP's Softgrid Application Virtualization Number of clients 6,000 600 660 726 799 879 Cost per client $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 Total cost $60,000 $6,000 $6,600 $7,260 $7,990 $8,790 Total client licensing costs $958,800 $95,880 $105,468 $116,015 $127,680 $140,464

Host Servers Initial Year 1 Year 2 Year 3 Year 4 Year 5 Number of servers to support / host clients 200 20 22 25 27 30 Cost per server $12,502 $12,502 $12,502 $12,502 $12,502 $12,502 Total cost $2,500,400 $250,040 $275,044 $312,550 $337,554 $375,060

Microsoft Systems Center including Virtual Machine Manager Initial Year 1 Year 2 Year 3 Year 4 Year 5

Number of licenses 200 20 22 25 27 30 Cost per license $1,290 $1,290 $1,290 $1,290 $1,290 $1,290 Total cost $258,000 $25,800 $28,380 $32,250 $34,830 $38,700

With Competitive Solution Units Unit Price Total Client licenses 6,000 $150.00 $900,000 Host Server Virtualization software 240 $5,750.00 $1,380,000 Virtualization Management Software and Host Server 1 $7,000.00 $7,000 Server hardware and OS costs 240 $14,668.00 $3,520,320 Microsoft System Center (including VMM) 0 $1,290.00 $0 Connection Broker Client licenses 6,000 $50.00 $300,000 Connection Broker hardware 1 $1,300.00 $1,300 Total $6,108,620 Total for Microsoft $3,717,200 $371,720 $408,892 $460,815 $500,064 $554,224

Realized Costs Initial Year 1 Year 2 Year 3 Worksheet / Ideal Cost (Purchased) $3,717,200 $371,720 $408,892 $460,815 Annual Cash Flow $3,717,200 $371,720 $408,892 $460,815 Q1 $92,930.00 $102,223.00 $115,203.75 Q2 $92,930.00 $102,223.00 $115,203.75 Q3 $92,930.00 $102,223.00 $115,203.75 Q4 $92,930.00 $102,223.00 $115,203.75 Realized Total $3,717,200 $371,720 $408,892 $460,815

ROI Analyst™


Desktop and Application Virtualization Professional Services Costs

The cost for professional services to implement the planned Microsoft Desktop and Application Server Virtualization. Cumulative Cost (3 - Year): $918,000 Organization financial cost type: Operating Expenses Values map to expense category: Operating Expenditure Desktop and Application Virtualization

Professional Services Costs Initial Year 1 Year 2 Year 3 Year 4 Year 5 Planning and design costs $198,000 $0 $0 $0 $0 $0 Deployment costs $720,000 $0 $0 $0 $0 $0 Other costs $0 $0 $0 $0 $0 $0 Total $918,000 $0 $0 $0 $0 $0

Realized Costs Initial Year 1 Year 2 Year 3 Worksheet / Ideal Cost (Purchased) $918,000 $0 $0 $0 Annual Cash Flow $918,000 $0 $0 $0 Q1 $0.00 $0.00 $0.00 Q2 $0.00 $0.00 $0.00 Q3 $0.00 $0.00 $0.00 Q4 $0.00 $0.00 $0.00 Realized Total $918,000 $0 $0 $0 Desktop and Application Server Virtualization Implementation Labor Costs

The cost for internal / contract labor costs to implement the planned Microsoft Desktop and Application Server Virtualization. Cumulative Cost (3 - Year): $569,036 Organization financial cost type: Operating Expenses Values map to expense category: Operating Expenditure

Desktop and Application Server Virtualization Implementation Labor

Costs Initial Year 1 Year 2 Year 3 Year 4 Year 5 Planning and design costs Person hours 3,200.0 0.0 0.0 0.0 0.0 0.0 Hourly labor rate $45.89 $47.73 $49.64 $51.63 $53.70 $55.85 Total cost $146,848 $0 $0 $0 $0 $0 Deployment costs Person hours 9,200.0 0.0 0.0 0.0 0.0 0.0 Hourly labor rate $45.89 $47.73 $49.64 $51.63 $53.70 $55.85 Total cost $422,188 $0 $0 $0 $0 $0 Other costs Person hours 0.0 0.0 0.0 0.0 0.0 0.0 Hourly labor rate $45.89 $47.73 $49.64 $51.63 $53.70 $55.85 Total cost $0 $0 $0 $0 $0 $0 Total $569,036 $0 $0 $0 $0 $0

Realized Costs Initial Year 1 Year 2 Year 3 Worksheet / Ideal Cost (Purchased) $569,036 $0 $0 $0 Annual Cash Flow $569,036 $0 $0 $0 Q1 $0.00 $0.00 $0.00 Q2 $0.00 $0.00 $0.00 Q3 $0.00 $0.00 $0.00 Q4 $0.00 $0.00 $0.00 Realized Total $569,036 $0 $0 $0 Production Server Virtualization Licensing Cost The cost for Microsoft or Competitive (see Solution Selection at top for setting) Server and Virtualization Licensing for the Production Servers.

ROI Analyst™


Cumulative Cost (3 - Year): $425,896 Organization financial cost type: Net Fixed Assets (NFA) Values map to expense category: Capital Expenditure

Windows Server 2008 Licensing Initial Year 1 Year 2 Year 3 Year 4 Year 5 Windows Server 2008 Standard Licensing Number of units 71 8 9 9 10 11 Unit cost $719 $719 $719 $719 $719 $719 Total $51,049 $5,752 $6,471 $6,471 $7,190 $7,909 Windows Server 2008 Enterprise Licensing Number of units 0 0 0 0 0 0 Unit cost $2,334 $2,334 $2,334 $2,334 $2,334 $2,334 Total $0 $0 $0 $0 $0 $0 Windows Server 2008 Datacenter Licensing Number of units 0 0 0 0 0 0 Unit cost $2,381 $2,381 $2,381 $2,381 $2,381 $2,381 Total $0 $0 $0 $0 $0 $0 Total Windows Server 2008 Licensing $51,049 $5,752 $6,471 $6,471 $7,190 $7,909

Windows Server 2003 Licensing Initial Year 1 Year 2 Year 3 Year 4 Year 5 Windows Server 2003 Standard Licensing Number of units 0 0 0 0 0 0 Unit cost $719 $719 $719 $719 $719 $719 Total $0 $0 $0 $0 $0 $0 Windows Server 2003 Enterprise Licensing Number of units 0 0 0 0 0 0 Unit cost $2,334 $2,334 $2,334 $2,334 $2,334 $2,334 Total $0 $0 $0 $0 $0 $0 Windows Server 2003 Datacenter Licensing Number of units 0 0 0 0 0 0 Unit cost $2,381 $2,381 $2,381 $2,381 $2,381 $2,381 Total $0 $0 $0 $0 $0 $0 Total Windows Server 2003 Licensing $0 $0 $0 $0 $0 $0 Windows Server SA Credits, Agreement

Licensing and Net Windows Server Licensing Costs Initial Year 1 Year 2 Year 3 Year 4 Year 5

Credit for prior SA Agreements $0 $0 $0 $0 $0 $0 Cost for new SA Agreements $0 $0 $0 $0 $0 $0 Net Windows Server Licensing $51,049 $5,752 $6,471 $6,471 $7,190 $7,909

Virtualization Management Initial Year 1 Year 2 Year 3 Year 4 Year 5 Virtualization Software Licensing Number of units 0 0 0 0 0 0 Unit cost $0 $0 $0 $0 $0 $0 Total $0 $0 $0 $0 $0 $0 Virtualization Management Software Number of units 0 0 0 0 0 0 Unit cost $0 $0 $0 $0 $0 $0 Total $0 $0 $0 $0 $0 $0 System Center Enterprise (Virtual Machine Manager) Number of units 71 8 9 9 10 11 Unit cost $1,290 $1,290 $1,290 $1,290 $1,290 $1,290 Total $91,590 $10,320 $11,610 $11,610 $12,900 $14,190 Third party backup software Number of units 0 0 0 0 0 0 Unit cost $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 Total $0 $0 $0 $0 $0 $0 Additional storage space to support virtualization (GB) Number of GB 8,694 869 956 1052 1157 1273 Unit cost per GB $21.00 $21.00 $16.80 $13.44 $10.75 $8.60 Total $182,574 $18,249 $16,061 $14,139 $12,438 $10,948 Total for Virtualization and Management Software $274,164 $28,569 $27,671 $25,749 $25,338 $25,138 Total (net Windows Server licensing + total virtualization management) $325,213 $34,321 $34,142 $32,220 $32,528 $33,047

ROI Analyst™


Realized Costs Initial Year 1 Year 2 Year 3 Worksheet / Ideal Cost (Purchased) $325,213 $34,321 $34,142 $32,220 Annual Cash Flow $325,213 $34,321 $34,142 $32,220 Q1 $8,580.25 $8,535.50 $8,055.00 Q2 $8,580.25 $8,535.50 $8,055.00 Q3 $8,580.25 $8,535.50 $8,055.00 Q4 $8,580.25 $8,535.50 $8,055.00 Realized Total $325,213 $34,321 $34,142 $32,220 Production Server Virtualization Professional Services Costs

The cost for professional services to implement the planned Microsoft Production Server Virtualization. Cumulative Cost (3 - Year): $195,250 Organization financial cost type: Operating Expenses Values map to expense category: Operating Expenditure

Production Server Virtualization Professional Services Costs Initial Year 1 Year 2 Year 3 Year 4 Year 5

Planning and design costs $53,250 $0 $0 $0 $0 $0 Deployment costs $142,000 $0 $0 $0 $0 $0 Other costs $0 $0 $0 $0 $0 $0 Total $195,250 $0 $0 $0 $0 $0

Realized Costs Initial Year 1 Year 2 Year 3 Worksheet / Ideal Cost (Purchased) $195,250 $0 $0 $0 Annual Cash Flow $195,250 $0 $0 $0 Q1 $0.00 $0.00 $0.00 Q2 $0.00 $0.00 $0.00 Q3 $0.00 $0.00 $0.00 Q4 $0.00 $0.00 $0.00 Realized Total $195,250 $0 $0 $0 Development and Test Lab Server Virtualization Licensing Cost The cost for Microsoft Server and Virtualization Licensing for the Development and Test Lab Servers. Cumulative Cost (3 - Year): $173,949 Organization financial cost type: Net Fixed Assets (NFA) Values map to expense category: Capital Expenditure

Windows Server 2008 Licensing Initial Year 1 Year 2 Year 3 Year 4 Year 5 Windows Server 2008 Standard Licensing Number of units 26 10 11 13 14 15 Unit cost $719 $719 $719 $719 $719 $719 Total $18,694 $7,190 $7,909 $9,347 $10,066 $10,785 Windows Server 2008 Enterprise Licensing Number of units 0 0 0 0 0 0 Unit cost $2,334 $2,334 $2,334 $2,334 $2,334 $2,334 Total $0 $0 $0 $0 $0 $0 Windows Server 2008 Datacenter Licensing Number of units 0 0 0 0 0 0 Unit cost $2,381 $2,381 $2,381 $2,381 $2,381 $2,381 Total $0 $0 $0 $0 $0 $0 Total Windows Server 2008 Licensing $18,694 $7,190 $7,909 $9,347 $10,066 $10,785

Windows Server 2003 Licensing Initial Year 1 Year 2 Year 3 Year 4 Year 5 Windows Server 2003 Standard Licensing

ROI Analyst™


Number of units 26 0 0 0 0 0 Unit cost $719 $719 $719 $719 $719 $719 Total $18,694 $0 $0 $0 $0 $0 Windows Server 2003 Enterprise Licensing Number of units 0 0 0 0 0 0 Unit cost $2,334 $2,334 $2,334 $2,334 $2,334 $2,334 Total $0 $0 $0 $0 $0 $0 Windows Server 2003 Datacenter Licensing Number of units 0 0 0 0 0 0 Unit cost $2,381 $2,381 $2,381 $2,381 $2,381 $2,381 Total $0 $0 $0 $0 $0 $0 Total Windows Server 2003 Licensing $18,694 $0 $0 $0 $0 $0 Windows Server SA Credits, Agreement

Licensing and Net Windows Server Licensing Costs Initial Year 1 Year 2 Year 3 Year 4 Year 5

Credit for prior SA Agreements $0 $0 $0 $0 $0 $0 Cost for new SA Agreements $0 $0 $0 $0 $0 $0 Net Windows Server Licensing $37,388 $7,190 $7,909 $9,347 $10,066 $10,785

Virtualization Management Initial Year 1 Year 2 Year 3 Year 4 Year 5 Virtualization Software Licensing Number of units 0 0 0 0 0 0 Unit cost $0 $0 $0 $0 $0 $0 Total $0 $0 $0 $0 $0 $0 Virtualization Management Software Number of units 0 0 0 0 0 0 Unit cost $0 $0 $0 $0 $0 $0 Total $0 $0 $0 $0 $0 $0 Lab Management Number of units 0 0 0 0 0 0 Unit cost $0 $0 $0 $0 $0 $0 Total $0 $0 $0 $0 $0 $0 System Center Enterprise (Virtual Machine Manager) Number of units 26 3 3 3 3 4 Unit cost $1,290 $1,290 $1,290 $1,290 $1,290 $1,290 Total $33,540 $3,870 $3,870 $3,870 $3,870 $5,160 Third party backup software Number of units 0 0 0 0 0 0 Unit cost $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 Total $0 $0 $0 $0 $0 $0 Additional storage space to support virtualization (GB) Number of GB 2,520 252 277 305 335 369 Unit cost per GB $21.00 $21.00 $16.80 $13.44 $10.75 $8.60 Total $52,920 $5,292 $4,654 $4,099 $3,601 $3,173 Total for Virtualization and Management Software $86,460 $9,162 $8,524 $7,969 $7,471 $8,333 Total (net Windows Server licensing + total virtualization management) $123,848 $16,352 $16,433 $17,316 $17,537 $19,118

Realized Costs Initial Year 1 Year 2 Year 3 Worksheet / Ideal Cost (Purchased) $123,848 $16,352 $16,433 $17,316 Annual Cash Flow $123,848 $16,352 $16,433 $17,316 Q1 $4,088.00 $4,108.25 $4,329.00 Q2 $4,088.00 $4,108.25 $4,329.00 Q3 $4,088.00 $4,108.25 $4,329.00 Q4 $4,088.00 $4,108.25 $4,329.00 Realized Total $123,848 $16,352 $16,433 $17,316 Development and Test Lab Server Virtualization Professional Services Costs

The cost for professional services to implement the planned Microsoft Development and Test Lab Server Virtualization. Cumulative Cost (3 - Year): $71,500 Organization financial cost type: Operating Expenses

ROI Analyst™


Values map to expense category: Operating Expenditure

Development and Test Lab Server Virtualization Professional Services Costs Initial Year 1 Year 2 Year 3 Year 4 Year 5 Planning and design costs $19,500 $0 $0 $0 $0 $0 Deployment costs $52,000 $0 $0 $0 $0 $0 Other costs $0 $0 $0 $0 $0 $0 Total $71,500 $0 $0 $0 $0 $0

Realized Costs Initial Year 1 Year 2 Year 3 Worksheet / Ideal Cost (Purchased) $71,500 $0 $0 $0 Annual Cash Flow $71,500 $0 $0 $0 Q1 $0.00 $0.00 $0.00 Q2 $0.00 $0.00 $0.00 Q3 $0.00 $0.00 $0.00 Q4 $0.00 $0.00 $0.00 Realized Total $71,500 $0 $0 $0 Production Server Virtualization Implementation Labor Costs

The cost for internal / contract labor costs to implement the planned Microsoft Production Server Virtualization. Cumulative Cost (3 - Year): $45,615 Organization financial cost type: Operating Expenses Values map to expense category: Operating Expenditure

Production Server Virtualization Implementation Labor Costs Initial Year 1 Year 2 Year 3 Year 4 Year 5

Planning and design costs Person hours 284.0 0.0 0.0 0.0 0.0 0.0 Hourly labor rate $45.89 $47.73 $49.64 $51.63 $53.70 $55.85 Total cost $13,033 $0 $0 $0 $0 $0 Deployment costs Person hours 710 0 0 0 0 0 Hourly labor rate $45.89 $47.73 $49.64 $51.63 $53.70 $55.85 Total cost $32,582 $0 $0 $0 $0 $0 Other costs Person hours 0 0 0 0 0 0 Hourly labor rate $45.89 $47.73 $49.64 $51.63 $53.70 $55.85 Total cost $0 $0 $0 $0 $0 $0 Total $45,615 $0 $0 $0 $0 $0

Realized Costs Initial Year 1 Year 2 Year 3 Worksheet / Ideal Cost (Purchased) $45,615 $0 $0 $0 Annual Cash Flow $45,615 $0 $0 $0 Q1 $0.00 $0.00 $0.00 Q2 $0.00 $0.00 $0.00 Q3 $0.00 $0.00 $0.00 Q4 $0.00 $0.00 $0.00 Realized Total $45,615 $0 $0 $0 Development and Test Lab Server Virtualization Implementation Labor Costs

The cost for internal / contract labor costs to implement the planned Microsoft Development and Test Lab Server Virtualization. Cumulative Cost (3 - Year): $16,704 Organization financial cost type: Operating Expenses Values map to expense category: Operating Expenditure

Development and Test Lab Server Virtualization Implementation Labor

Costs Initial Year 1 Year 2 Year 3 Year 4 Year 5 Planning and design costs

ROI Analyst™


Person hours 104.0 0.0 0.0 0.0 0.0 0.0 Hourly labor rate $45.89 $47.73 $49.64 $51.63 $53.70 $55.85 Total cost $4,773 $0 $0 $0 $0 $0 Deployment costs Person hours 260.0 0.0 0.0 0.0 0.0 0.0 Hourly labor rate $45.89 $47.73 $49.64 $51.63 $53.70 $55.85 Total cost $11,931 $0 $0 $0 $0 $0 Other costs Person hours 0.0 0.0 0.0 0.0 0.0 0.0 Hourly labor rate $45.89 $47.73 $49.64 $51.63 $53.70 $55.85 Total cost $0 $0 $0 $0 $0 $0 Total $16,704 $0 $0 $0 $0 $0

Realized Costs Initial Year 1 Year 2 Year 3 Worksheet / Ideal Cost (Purchased) $16,704 $0 $0 $0 Annual Cash Flow $16,704 $0 $0 $0 Q1 $0.00 $0.00 $0.00 Q2 $0.00 $0.00 $0.00 Q3 $0.00 $0.00 $0.00 Q4 $0.00 $0.00 $0.00 Realized Total $16,704 $0 $0 $0 Production Server Virtualization Training Costs

The cost for training classes / certification to implement the planned Microsoft Production Server Virtualization. Cumulative Cost (3 - Year): $0 Organization financial cost type: Operating Expenses Values map to expense category: Operating Expenditure Production Server Virtualization Training

Costs Initial Year 1 Year 2 Year 3 Year 4 Year 5 Number of courses 0 0 0 0 0 0 Cost per course $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total cost $0 $0 $0 $0 $0 $0

Realized Costs Initial Year 1 Year 2 Year 3 Worksheet / Ideal Cost (Purchased) $0 $0 $0 $0 Annual Cash Flow $0 $0 $0 $0 Q1 $0.00 $0.00 $0.00 Q2 $0.00 $0.00 $0.00 Q3 $0.00 $0.00 $0.00 Q4 $0.00 $0.00 $0.00 Realized Total $0 $0 $0 $0 Desktop and Application Server Virtualization Training Costs

The cost for training classes / certification to implement the planned Microsoft Desktop and Application Server Virtualization. Cumulative Cost (3 - Year): $0 Organization financial cost type: Operating Expenses Values map to expense category: Operating Expenditure

Desktop and Application Server Virtualization Training Costs Initial Year 1 Year 2 Year 3 Year 4 Year 5

Number of courses 0 0 0 0 0 0 Cost per course $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total cost $0 $0 $0 $0 $0 $0

Realized Costs Initial Year 1 Year 2 Year 3 Worksheet / Ideal Cost (Purchased) $0 $0 $0 $0

ROI Analyst™


Annual Cash Flow $0 $0 $0 $0 Q1 $0.00 $0.00 $0.00 Q2 $0.00 $0.00 $0.00 Q3 $0.00 $0.00 $0.00 Q4 $0.00 $0.00 $0.00 Realized Total $0 $0 $0 $0 Development and Test Lab Server Virtualization Training Costs

The cost for training classes / certification to implement the planned Microsoft Development and Test Lab Server Virtualization. Cumulative Cost (3 - Year): $0 Organization financial cost type: Operating Expenses Values map to expense category: Operating Expenditure

Development and Test Lab Server Virtualization Training Costs Initial Year 1 Year 2 Year 3 Year 4 Year 5

Number of courses 0 0 0 0 0 0 Cost per course $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total cost $0 $0 $0 $0 $0 $0

Realized Costs Initial Year 1 Year 2 Year 3 Worksheet / Ideal Cost (Purchased) $0 $0 $0 $0 Annual Cash Flow $0 $0 $0 $0 Q1 $0.00 $0.00 $0.00 Q2 $0.00 $0.00 $0.00 Q3 $0.00 $0.00 $0.00 Q4 $0.00 $0.00 $0.00 Realized Total $0 $0 $0 $0

ROI Analyst™


Appendix E: Realized Benefit Schedule The Implementation Plan and Realized Benefits section establishes how the benefits calculations are adjusted for various risks and realizations in order to create more conservative, risk adjusted results. These adjustments include:

• Project implementation plan and potential delays (benefits do not get realized until after deployment)

• Discounting of direct (hard) or indirect (soft) benefits • Adoption curve (delays in realizing full benefits based on rollout or user adoption delays)

Realized Benefits and Schedule Project Implementation Plan (months from kickoff to deployment)

3

Default Realized Benefits Direct Benefits (Hard) 100.0% Indirect Benefits (Soft) 100.0% Benefit Schedule/Adoption Curve (starting from deployment)

First Year (months 1-12 from deployment) 100.0% Second Year (months 13-24 from deployment) 100.0% Third Year (months 25-36 from deployment) 100.0%

ROI Analyst™


Appendix F: Project Risk Cost of Capital / Discount Rate: 9.5%

Risks of Implementing / Deploying This Project

Likelihood Impact

Requirements No Risk (0) No Impact (0) Schedule No Risk (0) No Impact (0) Resource Capability and Maturity No Risk (0) No Impact (0) Technology / Infrastructure No Risk (0) No Impact (0) Vendor / Service Provider No Risk (0) No Impact (0) Management Commitment and Funding No Risk (0) No Impact (0) User Acceptance No Risk (0) No Impact (0) Market / Business Environment No Risk (0) No Impact (0) Total Risk Score: 0.0% Risk Adjusted Discount Rate: 9.5%

Documents

New Analysis - VMware BlogsNew Analysis . April 23, 2008 . Prepared For: Valued Customer Name . Valued Customer Company . Address . ... The results in this report were created from