Commissioned by IBM, Forrester Consulting have released a report that details the cost savings and business benefits enabled by IBM i running on Power hardware or in the cloud.
The report highlights the reliability and security of the IBM i and with the integration of the operating system with the database, provides the best environment for business to reduce system downtime and admin support costs, as well as improving productivity too.
The three key takeaways within the report are as follows [ROI/NVP based over a three year period]:
A Return of Investment calculation of 171%
The report detailed that the interviewed businesses reported a reduction in the number of times they experienced downtime compared to other systems used in the past. Technical support costs were therefore reduced while productivity was up which impacted their return on investment.
The ROI was calculated as a project’s expected return in percentage terms by dividing net benefits (benefits less costs) by costs.
A Net Present Value calculation of $595k
The positive effect of the reductions in costs and downtime had ramifications over the three year period with calculated net present value.
The present or current value of (discounted) future net cash flows given an interest rate (the discount rate). A positive project NPV normally indicates that the investment should be made, unless other projects have higher NPVs.
Payback within 8 month
As a result of the lower cost of ownership, the reduction in ERP license fees, value of the hardware and reduced day-to-day administration costs, the conclusion was that the ‘composite’ business would receive payback on their investment within 8 months.
The report also detailed the unquantifiable benefits including trust and peace of mind against uptime and security while detailing the integration options and flexibility of the platform.
In summary, the Total Economic Impact [a methodology developed by Forrester Research] of adopting the IBM i platform as the primary enterprise solution for business was sound. Indeed, the three year figures suggested that (against the previous enterprise incumbents) IBM i provided the perfect blend of technology, security, uptime and productivity.
For more details, you can download the Forrester report using the button below.
