Forrester conducted a total economic impact study in April that followed the progress of five current CloudBlue customers, including two telecommunications companies, two managed service providers and one managed cloud service provider—all with total revenues ranging from $1.2B to $60B.
Following the interviews and financial modeling, Forrester created a composite organization to illustrate the quantifiable benefits and costs of investing in CloudBlue. The objective of this study was to identify the benefits, costs, flexibility and risk factors that affect the decision to partner with CloudBlue.
Here are the benefits identified by the study and the value they offer to organizations:
CloudBlue delivers $10.8M in total customer benefits
The total value of the quantified benefits, after adjusting for risk and present value, amounted to $10.8M over three years. This value is attributed to the following benefits:
- Faster time-to-market and revenue
- Go-to-market savings
- Reduced customer churn
- Resource savings with CloudBlue Connect and its back-office API integrations
How CloudBlue generated signifcant economic impact
Faster time-to-market can be attributed to the ability of customers to onboard new products and begin selling them quickly with CloudBlue. In fact, interviewed customers were able to cut four months out of their time to market.
Microsoft Azure, the computing platform that runs CloudBlue, is another factor that contributed to this acclereated pace. Microsoft Azure provides consistent compliance and control across a portfolio of services with a wide-ranging geographical presence.
With CloudBlue’s Acceleration Services, customers were able to speed up their go-to-market efforts. These services include assisted sales, managed services and help desk support that would cost an organization more than $500K if they attempted to launch and manage these services themselves.
The composite organization in the study experienced declining customer value and rising customer attrition with its legacy, custom-developed cloud services portal. As a result, the company was struggling to grow and retain customers.
Using CloudBlue, the organization was able to reduce churn by offering their customers an intuitive user experience. It also gave service providers the ability to attach value-added services as well as cross sell and upsell to create greater stickiness.
And lastly, CloudBlue customers achieved further resource savings with CloudBlue Connect and its back-office integrations. This capability allowed them to avoid adding 2.5 to 5 FTE developers and 5 to 7.5 back-office workers. This is due to CloudBlue Connect’s simplified onboarding of vendors, services and offers with its robust APIs, which enable the integration of back-office systems and the reduction of manual efforts.
Gain even more savings with CloudBlue
In addition to these quanitifed benefits, the study revealed many more significant discoveries, including:
- $6 million net present value
- Payback period of less than three months with 127% ROI
- 22.4 full time employees saved
Coupled with the power of Microsoft Azure, CloudBlue offers companies a highly scalable and secure platform to grow their cloud businesses while minimizing costs. To learn more about these key findings, the study is available here for download.
Also, organizations can get their own customized Total Economic Impact number that potentially can be achieved by adopting CloudBlue with the digital online calculator available here.