Sample Software Reclaim Model for 50,000 Users

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Return on Investment ................................................................................................................................................ 3

Sample RFI Response ................................................................................................................................................... 3
ROI Analysis Approach ................................................................................................................................................. 3
ROI Overview ............................................................................................................................................................... 3
ROI HIGHLIGHTS: ................................................................................................................................................. 3
ROI Three Year Cash Flow ............................................................................................................................................ 3
ROI Three Year Cash Flow Chart: ..................................................................................................................... 4
ROI Cumulated Cash Flows ....................................................................................................................................... 4
Three Year Cumulated Cash Flow Chart ............................................................................................................. 4
Software Usage Benchmark Summary......................................................................................................................... 5
Software Usage Benchmarks Industry Spread ................................................................................................. 5
Top 10 Most Common Applications Used .......................................................................................................... 6
Software Usage Benchmark Titles Selected for ROI ................................................................................................. 6
Software Usage Benchmarks AppClarity Raw Data ......................................................................................... 6
Software License Savings Monetization Methodology ............................................................................................. 7
Software License Savings Assumptions .............................................................................................................. 7
Software License Savings Worksheet ............................................................................................................... 8
Software License Savings Summary ................................................................................................................. 8
Sample Savings Calculation (Photoshop) ......................................................................................................... 9
Additional Software License Savings ............................................................................................................................ 9
ROI Assumptions .......................................................................................................................................................... 9

NPV

CASH FLOW ANALYSIS

Item Description

Type

Investment:

YEAR 1

YEAR 2

YEAR 3

Total

4,112,901.26

SPEND
1E License Cost

Cap

$ (2,250,000.00) $

(2,250,000.00)

1E Services

Cap

(200,000.00)

1E Maintenance

Exp

(450,000.00) $

(450,000.00) $

(450,000.00) $

(1,350,000.00)

License Savings

Exp

3,700,887.86 $

3,935,794.12 $

Server License Savings

Exp

Summary

Exp

Cap

$ (2,450,000.00) $

(200,000.00) $

NPV Discount Rate

10%

IRR

SAVINGS
$

3,250,887.86

(2,450,000.00) $

3,485,794.12

(450,000.00) $

$
$
$

(450,000.00) $

3 Year Spend: $ (3,800,000.00)

Financial Metrics
Pricing Model
Y1 Total Investment
Total Investment (3 Years)
Total Savings (3 Years)
Return on Investment (ROI)
Payback Period (Months)

Values
Perpetual
($2,450,000)
($3,800,000)
$9,601,383
113%
9.04

1,964,700.90
-

9,601,382.88

1,514,700.90 $

113%

8,251,382.88

Payback (Months)

9.04

(450,000.00) $

(3,800,000.00)

3 Year Save: $

9,601,382.88

12,000,000
10,000,000
8,000,000
Savings

6,000,000

Spend

Cumulated Cash Flows

Savings
Year 1
Year 2
Year 3

4,000,000

Spend
$0

$2,450,000

$3,700,888

$2,900,000

$7,636,682

$3,350,000

$9,601,383

$3,800,000

2,000,000
0

Initial

Year 1

Year 2

Year 3

Overview of Benchmark Results

Analysis of a typical customers full database reveals there

is significant license waste across the whole environment.
Findings below include a sampling of 74 companies across
13 industries totaling 1.7 M seats shows 28% of all
software deployed is unused and 5% is rarely used.

Benchmark Summary by Company

Summary by Company

Total Companies Benchmarked:

# Industries:
Total Seat Count:
Unused:
Rarely Used:
Used:

74
12
1.8 M
28%
5%
67%

Unused:

Rarely Used:

Used:

Benchmark Summary by Software Title

Summary by Software Title

Total Software Packages Benchmarked:

Total Data Points:
Unused:
Rarely Used:
Used:

1,845
466 M
42%
18%
40%

Unused:

Rarely Used:

Industry
# Companies Sum of Size
Communications
4
99700
Engineering
5
47200
Finance
9
625500
Healthcare
8
222000
Manufacturing
10
202300
Retail
5
88500
Services
6
72700
Education
3
15600
Federal
1
15000
Technology
4
112000
Energy
10
75300
Insurance
7
147000
Pharmaceutical
2
30000
Grand Total
74 1,752,800

Used:

Product
Acrobat Professional
Visio Professional
Visual Studio Professional
Visio Standard
Project Standard
Project Professional
Photoshop
Crystal Reports
Illustrator
InDesign

Product

Average of Average of Avg. Rarely Avg. Seat Count of

Sum of Seat
Deployed % Unused % Used %
Count
Customer
Count
12%
24%
10%
22763
64
1456800
6%
25%
24%
23844
61
1454500
2%
48%
18%
24624
58
1428200
10%
25%
25%
23745
60
1424700
10%
37%
18%
24870
57
1417600
6%
27%
25%
22444
63
1414000
2%
29%
14%
21698
63
1367000
4%
54%
11%
27208
50
1360400
2%
33%
16%
22132
59
1305800
1%
39%
16%
23691
54
1279300

Avg. %
Avg. %
Deployed Unused

Project Standard
9.55%
SQL Optimizer for Oracle 1.48%
Project Professional
5.91%
Acrobat Professional
11.70%
Business Objects Enterprise 1.53%
Visio Standard
10.07%
Visio Professional
5.58%
Minitab
2.00%
Inventor
1.14%
InDesign
1.18%
QuickTest Professional
0.67%
Crystal Reports
3.80%
BusinessObjects
1.31%
Toad for Oracle
1.46%
Publisher
9.75%
Visual Studio Professional 1.76%
Photoshop
2.23%
Toad Data Modeler
0.84%

37%
71%
27%
24%
52%
25%
25%
31%
36%
39%
35%
54%
40%
38%
39%
48%
29%
65%

Avg. %
Avg. Seat
Rarely Used Count

18%
8%
25%
10%
14%
25%
24%
15%
15%
16%
12%
11%
14%
10%
16%
18%
14%
13%

24870
31707
22444
22763
36705
23745
23844
31494
39947
23691
39771
27208
55725
32346
36374
24624
21698
32625

#
Customers

57
29
63
64
20
60
61
32
19
54
24
50
16
37
27
58
63
28

Product

Avg. %
Avg. %
Deployed Unused

Illustrator
1.61%
Acrobat Standard
14.40%
AutoCAD LT
0.51%
Creator DE
15.00%
Visual Studio Ultimate
1.55%
Toad for Data Analysts
0.78%
pcAnywhere
4.96%
Captivate
0.46%
Exceed
0.97%
SQL Compare
0.33%
WinZip
28.92%
Reflection X
0.76%
Tableau
0.24%
WebEx
20.26%
DRAW Graphics Suite
0.50%
Dreamweaver
0.87%
Dragon NaturallySpeaking 0.74%

33%
9%
40%
65%
32%
67%
71%
48%
35%
57%
15%
51%
38%
7%
44%
37%
37%

Avg. %
Avg. Seat #
Rarely Used Count
Customers

16%
10%
15%
7%
22%
9%
7%
17%
13%
12%
11%
9%
22%
13%
15%
17%
9%

22132
25610
30125
32362
32521
30286
36476
38481
38971
45080
24818
55642
38723
30079
43879
28783
44760

59
48
36
29
34
28
25
26
24
15
45
12
22
34
19
40
20

# Products Incl uded i n ROI:

% Recl ai m - Unus ed:
% Recl ai m - Rarel y Us ed:
Annual Software Support Cos t:

35
75%
25%
20%

Late Vers i on % Reducti on:

% New Purchas es Per Year:
# Years Res erve:
% Future Unus ed

0%
10%
2
25%

Software Usage Data - 74 Customer Sampling

$
$
$
$

Price
599.95
2,250.00
688.00
288.00

Publisher
Microsoft
Quest Software
Microsoft
Adobe

Product
Project Standard
SQL Optimizer for Oracle
Project Professional
Acrobat Professional

# Products Incl uded i n ROI:

% Recl ai m - Unus ed:
% Recl ai m - Rarel y Us ed:
Annual Software Support Cos t:

Deployed Unused

4775
739
2954
5851

1752
522
795
1382

35
75%
25%
20%

NET SAVINGS: $

Rarely
Used % Unused

874
62
727
571

37%
71%
27%
24%

Product

Avg. %
Avg. %
Deployed Unused

Project Standard
9.55%
SQL Optimizer for Oracle 1.48%
Project Professional
5.91%
Acrobat Professional
11.70%

37%
71%
27%
24%

Late Vers i on % Reducti on:

% New Purchas es Per Year:
# Years Res erve:
% Future Unus ed

Year 1
3,700,888 $

Year 2
3,935,794 $

Avg. %
Avg. Seat
Rarely Used Count

18%
8%
25%
10%

24870
31707
22444
22763

0%
10%
2
25%
Year 3
1,964,701

#
Customers

57
29
63
64

Photoshop
Cost of License:
Annual Support Charge:
Unused:
Unused Percentage Removed:
Unused Removed:
Rarely Used
Rarely Used Percentage Removed:
Rarely Used Removed:

$2,000
$400
327
75%
245
162
25%
40.50

Purchase Avoidance - #Licenses:

Purchase Avoidance - Savings:
Maintenance Avoidance on Additional Lic:
Maintenance Avoidance on Terminated Lic.:
Future Unused:
Net Save:

INCLUDED in ROI: Yes

Total to be Removed:
286
Late Version Percentage Reduction:
0%
Total for Reclaim:
286
Number Purchased/Yr:
112
Number of Years Reserve:
2.0
Total Target # of Licenses to Reserve:
223
Total Target Licenses for Reclaim:
223
Licenses Immediately Terminated:
63
Year 1
Year 2
Year 3
112
112
$223,000
$223,000
$0
$44,600
$89,200.00
$25,100
$25,100
$25,100
$16,350.00
$16,350.00
$248,100
$309,050
$130,650

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