Disclaimer

The financial metrics presented in this Excel calculator are for example purposes only. These metrics
represent estimates used by Microsoft Academy in developing a cash flow and return on investment a
for purposes of this white paper. The cost categories for calculating total cost of ownership (TCO) metr
conform to commonly used categories for TCO analysis. The direct and indirect cost categories have b
modified to meet the specific needs of developing a cash flow model for assessing the financial value
video podcasting portal such as Microsoft Academy. Users may need to modify the cost categories to m
the specific and unique circumstances of their own organization. Results from using this cash flow and
calculator will vary based on the organizations specific and unique circumstance. This calculator is pr
as-is, and Microsoft does not make any warranties, express or implied, with respect to the calculato
calculator is provided for informational purposes only, and nothing contained in this calculator or in th
attached white paper is intended to constitute professional, legal or financial advice. Use of the calcu
at the users own risk, and the user is solely responsible for its use of or reliance on any results, estim
projected or actual, obtained using the calculator.
2010 Microsoft Corporation. All right reserved.

Year 1
Pilot

Direct Costs

Year 2

TCO Life
Cycle

Year 3

% of
Total Cost

Hardware
Server

Peripherals
Network components

$
$

5,000 $
4,000 $

Total Hardware Cost

18,000 $

27,000 $

18,000 $

$
$

$
$

5,000
4,000

18,000 $

License

42,100 $

42,100 $

36,000

45,000

84,200

1%

Software

SW Development

$
$

10,525 $
50,000 $

21,050 $
50,000 $

21,050 $
50,000 $

52,625
150,000

SW Management

100,000 $

100,000 $

100,000 $

300,000

Total Software Cost

202,625 $

213,150 $

171,050 $

586,825

$
$

200,000 $
100,000 $

300,000 $
200,000 $

400,000 $
250,000 $

900,000
550,000

SW Maintenance

9%

Management
Architect/Admin
Systems Hosting
Reporting

50,000 $

50,000 $

50,000 $

150,000

Total Management Cost

350,000 $

550,000 $

650,000 $

1,550,000

Support Staf

50,000 $

100,000 $

100,000 $

250,000

Total Support Cost

50,000 $

100,000 $

100,000 $

250,000

50,000 $

25%

Support

4%

Implementation
Development/Customization/Integration
Total Implementation Cost
Total Direct Costs

50,000 $

679,625 $

Managed Service Costs - Program Management

(Indirect Costs)

Year 1
Pilot

881,150 $

Year 2

50,000

50,000

1%

921,050 $

2,481,825

40%

TCO Life
Cycle

Year 3

% of
Total Cost

Academy Program
Program Management

200,000 $

400,000 $

600,000 $

1,200,000

Account Management
Business Operations

$
$

200,000 $
150,000 $

400,000 $
250,000 $

600,000 $
400,000 $

1,200,000
800,000

Marketing / Promotions

120,000 $

180,000 $

250,000 $

550,000

Total Program Cost

670,000 $

1,230,000 $

1,850,000 $

3,750,000

Total Indirect Costs

670,000 $

1,230,000 $

1,850,000 $

3,750,000

60%

Total Costs

1,349,625 $

2,111,150 $

2,771,050 $

6,231,825

100%

TCO/Year

2,077,275

Year 1
Pilot

Cost Avoidance (ROI)

ROI - $ (negative amount means SAVINGS)

ROI - %
ROI/Year

60%

Year 2

(5,823,974) $
432%

TCO Life
Cycle

Year 3

(12,948,246) $
613%

(16,697,440) $
603%

(35,469,660)
569%

5,109
(17,605,614)
(17,600,505)
(37,068,995)

$
$
$
$

(17,605,614)
(17,600,505)
(17,600,505)
(59,301,990)

(34,297,945) $
1238%

(53,070,165)
852%

(13,900,495)

Substitution of Large Scale Events - Based on FY10 Data (Potential Cost Avoidance)
Nr of Virtual MS Employees
Cost Savings $3446 / Participant
Total Cost Avoidance Virtual Large Event
Total Potential Cost Avoidance (incl. partly substitution of large scale events)

Total Potential ROI - $ (negative amount means SAVINGS)

ROI (Potential) - %
ROI/Year (Potential) $

$
$
$
$

(7,173,599)

$
$
$
$

(5,823,974) $
432%

(15,059,396)

$
$
$
$

(12,948,246) $
613%

(17,690,055)
Potential Cost Avoidance / Participant
Potential Avoidance Factor

$(3,446)
80

Cost Class Room Training

10,000
1,000

Webcast Cost (Academy Live)

$
$

15,000
4,000

Total Cost

$
$

30,000
3,000

$
$
Total Cost per Participant / hour (25 Participants $

50,000
80,000
320

SME Time $125/hr 8 hrs

Course Material Development
Trainer Delivery Cost (2 days)
Total Cost
Total Cost / hr
T&E 25 Participants

Total Cost incl. Participant T&E

$
$

1,500
1,000

Total Cost / hr

$
$

2,500
2,500

Total Cost / hr per Participant (150)

Cost Avoidance / Participant

Avoidance Factor

SME Time $125/hr 8 hrs

Cost In-Person Enterprise Marketing Summit

Conference Cost (Venue, Handouts, Website)
T&E 400 Participants each $2.5k (3 days)
Total Cost
Total Cost per Participant

Rental
Monthly

Virtual Briefing (Live Meeting)

$
$

Content Development

17

(303)
19

Cost Virtual Enterprise Marketing Summit

$
$

150,000
1,000,000

Videos and Webcasting Costs

$
$

1,150,000
2,875

Total Cost

Program Management, Website, etc.

Total Cost per Participant (400 participants)

Cost Avoidance / Participant

Avoidance Factor
Cost In-Person Large Event

$
$

60,000
140,000

$
$

200,000
500

(2,375)
6

Virtual Large Event Cost

T&E per Participant

Conference Cost per Participant

$
$

2,000
1,490

Cost per virtual Session delivery

nr of virtual sessions

$
$

760
264

Total Large Event Cost per Participant

3,490

Subtotal
Project Mgmt

$
$

200,640
10,000

Vendor Travel Cost

Landing page on Academy Portal

$
$

Total

Total avg. Cost per session

Nr of unique virtual employees

Cost per virtual employee

Potential Cost Avoidance / Participant

Potential Avoidance Factor

5,000
8,000

223,640
847

5109
44
(3,446)
80

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61

Utility
Deposit
Electric
Water
10000
200
2500
200
2500
200
2500
200
2500
200
2500
200
2500
200
2500
200
2500
200
2500
200
2500
200
2500
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
2700
200
200
200

Average monthly Cost

Telephone
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100

Misc
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150

100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100

10550
3050
3050
3050
3050
3050
3050
3050
3050
3050
3050
3050
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
3250
550
550

Initial Setup
Booking Fee
Franshise Fee
Legal fee
Beamind Lisence
Lisence agreement
Hub software Key
Intial property Equipment
Marketting Set
software key
I/Q Math Hands On
Bubbly playground
Aizy action gym
Shanthi play and learn corner
Ozmo Science galary
Whizzy IQ maths lab
Early discovery prog
Central front signage
signage for facilities
Sigange common area - tape
signage for EDP
signage for QL 123
Class room name signage
Qdees art work CD
Qdees operation resources CD
Beamind Marketing
Audio CD
Classroom Equipment
Furniture
Bella Music Studio
PC x 4
General Equipment
Cooking Utensills
Gas Stove
Fridge
Rice cooker
Electric kettle
Fire extingusher x 2
ceilling fan x 6
Lights
Smoke detector

Cost Cut
3000
22000
1000
1500
100
50

4465
1600
2850
3188
1640
1104
759
465
426
5120
2260
1530
306
0
100
30
30
840
30

7403
325
11000

800
200
750
100
100
200
900
400
200

8000

6%
3180
23320
1060
1590
106
53

after interview

Exterior Painting
Fire escape
Children toilet x 2
Flag pole
AC
CCTV
MISC
Rental
Transport, Teacher recruit & etc
refundable security deposit

10000 ???
4000
400
1200
6000
6000
7500
4000

fter interview

Commision and Royalty

per student

3%
5%
33 per student per month
67.5 per student per term

x11
x4

No. of students