Support Contract

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					Microsoft Services Essential Support
Return on Investment (ROI) Calculator
                              Introduction
Purpose
This ROI Calculator provides a financial estimate of the benefits associated with a Microsoft Services Essential Support contract to assist
in the justification process

Approach
The ROI Calculator considers each element of the Microsoft Services Essential Support contract in terms of the value
provided. This value to the organisation could be in the form of cost savings for elements which would otherwise have to be
purchased separately. The calculations also include consideration of the potential cost to the business should a critical
(Severity A) incident occur and the contribution which Microsoft Services Essential Support can make to minimising this cost.


Layout of the ROI Calculator
The ROI Calculator consists of four worksheets;

Introduction (This sheet) - Providing information to assist in making use of the tool
ROI Details - Containing the detailed assumptions and calculations
ROI Summary - Providing the summary figures and calculating ROI
Plan Options - Providing a summary of the options available

All inputs and assumptions should be entered into the ROI Details worksheet. An initial set of costs and assumptions have
been included on this sheet. All figures in green can be changed to suit your own circumstances and experience as required.


How to use the ROI Calculator
(You might like to print this page off so that you have the details to hand)
Step 1. Go to the ROI Details sheet and select the required Plan Option.
Step 2. Enter the number of servers and desktops in your organisation.
Step 3. Review the assumptions (in green) associated with each element of the detailed analysis and amend as necessary
to best align with your own information on costs, incident occurences, support requirements and probabilities.
Step 4. When you are comfortable with all the assumptions, go to the ROI Summary sheets to see the estimate for Return
on Investment based on these figures.

Important Note
This ROI Calculator has been populated with assumptions and estimates to provide an example from which to build your
own ROI assessment. You should adapt the ROI calculator assumptions to incoporate figures which reflect your own
estimates and experience. The ROI calcualator is provided as a guide only and does not guarantee performance or service
delivery.
es Essential Support contract to assist




ontract in terms of the value
which would otherwise have to be
he business should a critical
t can make to minimising this cost.




t of costs and assumptions have
tances and experience as required.




analysis and amend as necessary
s and probabilities.
s to see the estimate for Return




ample from which to build your
 res which reflect your own
uarantee performance or service
Microsoft Services Essential Support
Return on Investment (ROI) Calculator
                                 ROI Details
     Step 1. Select required Option Plan
                         Calculations based on       Plan 1

  Step 2. Enter information about your organisation
A Number of Servers                      30
B Number of Desktops                    500

     Step 3. Review Assumptions for each element of the Essential Support Service
     Support Account Management
     Service Description.
     Telephone-based Technical Account Specialist (TAS) who regularly monitors your environment, plans the most effective u
     resources available and researches issues you are about to face to reduce incidents, improve availability and lower your s



     Equivalent Cost of Services Provided
                                                                Units
  Technical Support Specialist (TAS) time
C
  spent on support queries
                                                       20       hours

  Efficiency gained through TAS knowledge
D
  level and access to internal support
                                                      50%
  Equivalent time spent on support queries (C
E
  x D)
                                                       40       hours

F Cost of MCSE qualified Engineer                      £25      per hour

     Total Value of Support Account
G
     Management (E x F)
                                                     £1,000

     Problem Resolution Support
     Service Description
     A fast reliable route to technical support engineers with the depth of knowledge to effect a speedy resolution when softwar
     start to impact your business.

     Likelihood of a Business Critical
     Disruption (Severity A Incident)                           Units
  Frequency of Severity A incidents on                          per server
H
  Servers
                                                      0.01      per year
     Frequency of Severity A incidents on                       per desktop
 I
     Desktops
                                                     0.0001     per year
  Combined estimate of Severity A incident in
J your organisation ((A x H) + (B x I))               0.35
                                                                per year
    Hourly Cost of Downtime                              Units
K Revenue generated per employee                £100     per hour

L Number of employees
  Productivity during Business Critical
M
  Disruption
                                                 50%


    Hourly Cost of Downtime
N
    (K x (B or L) x (1-M))
                                               £25,000 per hour



    Total Cost of Downtime
    Option 1 - Internal Resources only                   Units
                                                         business
O Time to resolve                                 16     hours

P Total Annual Cost of Downtime (O x J x N)   £140,000 per year

    Option 2 - Ad-hoc external resources                 Units
                                                         business
Q Time to engage and instruct                     4      hours
                                                         business
R Time to resolve                                 10     hours
S Hourly cost of ad-hoc external resource       £200     per hour
  Total cost of ad-hoc external resources
T
  (R x S)
                                               £2,000
  Total Cost of Downtime
U
   (((Q + R) x J x N) + T)
                                              £124,500

    Option 3 - Microsoft Services Essential Support      Units

                                                         business
V Time to resolve                                 8      hours

    Total Cost of Downtime
W
    (V x J x N)
                                               £70,000

  Evaluation of Options
  Maximum Estimated Saving in Costs of
X Downtime with Essential Support              £70,000
   ((P - W) or (U - W))
  Minimum Estimated Saving in Cost of
Y Downtime                                     £54,500
  (P - W) or (U - W))

    Support Assistance
    Service Description
     Telephone access to technical specialists who can help answer your more complex queries on how to undertake specific t
     for future changes within your Microsoft installation


     Equivalent cost of obtaining these
     services                                                    Units
 Z Support Assistance Hours provided                    10       hours
   Cost of consulting services from alternative
AA
   supplier
                                                      £100       per hour

   Total Value of Support Assistance
AB
   (Z x AA)
                                                     £1,000

     Microsoft Premier Online
     Service Description.
     Password protected access to a comprehensive series of support resources.


     Reduction in costs for incidents
     raised                                                      Units
AC Estimate of incidents raised per year                20       per year
   Reduction in incidents raised as a result of
AD
   access to Online resources
                                                       50%
   Incidents no longer required
AE
   (AC x AD)
                                                        10
AF Cost of Microsoft Professional Incident            £185
   Total Value of Incidents Avoided
AG
   (AE x AF)
                                                     £1,850

     Microsoft TechNet Support Resource
     Service Description.
     A comprehensive resource to give you fast, convenient access to all the critical technical information, security resources a
     you need to evaluate, deploy and support Microsoft products.


     Equivalent cost of obtaining these
     services                                                    Units
AH TechNet Plus subscription                          £705
     Total Value of TechNet Plus
AI                                                     £705
     subscription (AH)

     Technical Support Training Workshops
     Service Description.
     Technical support focused, hands-on workshops, designed to help you and your team discover the essentials of Microsoft
     the context of common business scenarios as well as best practice in operations.


     Equivalent cost of obtaining these
     services
AJ Workshop places included                              5       days
AK Cost of workshop place                             £995      per day
   Total Value of Workshops
AL                                                   £4,975
   (AJ x AK)

     Microsoft e-Learning Library (MeLL)
     Service Description.
     A powerful tool for providing in-depth software training and reference materials on the Microsoft produts and technologies
     to your organisation.

     Equivalent cost of obtaining these
     services                                                   Units
AJ MeLL Users included                                 10
AK Cost per user                                      £230
     Total Value of e-Learning services
AL                                                   £2,300
     (AJ x AK)
             Figures in Green are initial assumptions and should be reviewed and
                     modifiied as appropriate to suit your own experience




             Plan Option details




 of the Essential Support Service


egularly monitors your environment, plans the most effective use of
face to reduce incidents, improve availability and lower your support costs.




             Notes
             Estimate of support hours provided based on Microsoft
             experience

             Reduced time required for TAS to process queries

             Typical time spent by your support staff on support queries




             What it would cost to provide this service yourself




depth of knowledge to effect a speedy resolution when software problems




             Notes
             Estimate based on Microsoft historical data for support
             contract customers
             Estimate based on Microsoft historical data for support
             contract customers
Notes
Will depend on industry sector and business type. £100 is an
estimated average.
Default figure is the number of desktops.
Some work may still be possible during the disruption

This is a conservative estimate as it does not take into
account factors such as impact on customer satisfaction,
competitive position and costs of recovery. Some industry
estimates for the total cost to the business of downtime are in
excess of £1 million per hour.


Notes
How long it would take to return systems to normal operations
in the event of a critical incident, without the use of any
external resources



Notes
How long it would take to evaluate the nature of the problem,
identify a suitable external resources and instruct them to
assist.
How long it would take for the external resource to return
systems to normal operation.




Notes
Based on proactive support activities, in-depth knowledge of
your configuration and rapid access to required technical
expertise. Microsoft would expect 70% of all Severity A calls to
be resolved within 8 hours.




Business revenues which would otherwise be lost
wer your more complex queries on how to undertake specific tasks or plan




              Notes
              Depends on Plan Option selected

              Typical range is from £100 to £200 per hour

              What it would cost to purchase this service on its own




upport resources.



              Notes
              Default, based on Microsoft experience, is 2 incidents per year
              for every 3 servers




              Current cost

              What you would save by reducing support incidents




ess to all the critical technical information, security resources and the tools
s.



              Notes


              What it would cost to purchase this service on its own




 to help you and your team discover the essentials of Microsoft products in
practice in operations.



              Comments
              Depends on Plan Option selected
             What it would cost to purchase this service on its own




eference materials on the Microsoft produts and technologies that are vital




             Notes
             Depends on Plan Option selected


             What it would cost to purchase this service on its own
Microsoft Services Essential Support
Return on Investment (ROI) Calculator
                                           ROI Summary
                                    (All estimates based on Plan 1)
Service Area                 Service
                             Accounting Reporting
Support Account Management   Planning and Resource Facilitation
                             Case Monitoring and Escalation Management
                             Problem Resolution Support
Problem Resolution Support
                             Critical Situation Management
Support Assistance           Infrastructure Support Assistance
                             Microsoft Premier Online
Information Services
                             TechNet
                             Workshops
Knowledge Transfer
                             Microsoft Enterprise Learning Library
                             Estimate of Total Value Delivered

                                                                      Price

                                        Return on Investment (ROI) %
Value

 £1,000


£54,500
 £1,000
 £1,850
   £705
 £4,975
 £2,300
£66,330

£15,000

 442%
Microsoft Services Essential Support
Return on Investment (ROI) Calculator
                                                  Plan Options
Two Essential Support standard plans are available to suit your business needs.
The support available from each plan is as follows:


                                                                                        Plan 1
                                 Accounting Reporting                                  Quarterly
Support Account Management       Planning and Resource Facilitation                     Included
                                 Case Monitoring and Escalation Management        Business Hours Only
                                 Problem Resolution Support (Requests)                     10
Problem Resolution Support
                                 Critical Situation Management                            24x7
Support Assistance               Infrastructure Support Assistance (Hours)                 10
                                 Microsoft Premier Online                               Included
Information Services
                                 TechNet                                                Included
                                 Workshops (Places)                                         5
Knowledge Transfer
                                 Microsoft Enterprise Learning Library (Users)             10
Price                                                                                   £15,000
      Plan 2
       Monthly
      Included
Business Hours Only
         20
        24x7
         20
      Included
      Included
         10
         20
      £27,000

				
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Description: Support Contract document sample