A Forrester survey with customer interviews shows GTT clients using GTT SD-WAN, can generate an ROI of 213% and investment payback period of less than six months. The business benefits of GTT’s SD-WAN contributing to this ROI include reduced network downtime, optimized network access costs and resource savings from a managed service. The clients surveyed experienced improved productivity with an average 25 days saved across the organization.
Prior to using GTT SD-WAN, both interviewed customers used a static network connectivity method to access their hosted applications and services, which yielded limited success in establishing cloud environments or increasing cloud adoption. This left the customers with high latency, unreliable application delivery, and a lack of flexibility when building or developing cloud environments. The customers wanted to update their network infrastructure to keep up with a rapidly evolving digital environment. Both customers selected GTT, citing the provider’s ability to efficiently manage bandwidth and provide consistent high-speed connectivity, as well as the unique capability to support virtual environments — all available as a managed service.
The following risk-adjusted present value (PV) quantified benefits are representative of those experienced by the organizations interviewed. They reflect the financial analysis associated with the combination of both organizations (referred to throughout the study as the composite organization). All values are reported in three-year net present value (NPV):
Downtime avoidance resulting in $406K of productivity gains. By facilitating concurrent active lines and bonding circuits to route traffic dynamically, GTT SD-WAN can actively and intelligently optimize networks to ensure there is no impact of downtime on employees.
- Network management time savings of $51K. By offering a fully managed service network, GTT SD-WAN frees up network administrators’ time from dealing with network configuration and downtime issues.
- Reduced network costs resulting in $105K of cost savings. By switching to an SD-WAN architecture with GTT, customers reduced costs associated with their previous MPLS environment. These savings were driven by aligning the application requirement more closely to the access method, selecting lower-cost access options for lower priority traffic.
- $43,975 per site across 20 sites. Forrester determined an NPV of $43,975 per site at an organization with 20 sites deploying SD-WAN connections.
- Increased network speed by up to 200%. Forrester quantified the direct impact of GTT SD-WAN on user productivity through faster network speed. Uploading large files over a slow network takes time and impacts worker productivity. Through faster network speed, operational user productivity improved by a risk-adjusted PV of $352K.
Costs. The interviewed organizations experienced the following risk-adjusted PV costs:
- Solution costs totaling $379K. These are the costs associated with using GTT SD-WAN for the composite organization
- Internal labor and implementation costs, totaling $35K. This is the cost of IT resources to implement and maintain the network for the composite organization.
- Total Benefits. Forrester’s interviews with existing clients and subsequent financial analysis found that an organization would experience benefits of $1.29M over three years versus costs of $414K, adding up to a net present value (NPV) of $880K and an ROI of 213%
Other benefits include improved cloud application performance, simplified WAN complexity, failover protection and standardized networking infrastructure across different locations.
For our frequent readers, the benefits of SD-WAN should come as no surprise. What is likely very exciting though is these quantified ROI numbers and the payback time of less than six months.
Sure, it is a small sample size and every organization is different but SD-WAN Expo attendees have reported cost savings and investment payback as big reasons to deploy software-defined wide area networking solutions.
Similar to VoIP, Technology which leverages arbitrage always sees consistent growth – as long as the arbitrage is still there.
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