Transcript Cisco`s Internal Business Case & ROI for IP Telephony

Cray Inc. ROI Case Study
ROI Calculator
•
Deployment Details
Global market leader in high-end supercomputers
Multi-site deployment
Replaced existing PBX with IP Telephony
650 phones
Required data network upgrade to handle time-sensitive
voice traffic
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ROI Findings
Payback—7 months
ROI Drivers:
Cost of Cisco IP Telephony and data gear cost the
same as PBX
Improved productivity of network support staff by
33%
Reduced MAC’s costs by $30K/year
Reduced inter-office calling charges by $25K/year
Summary Sheet
© 2002, Cisco Systems, Inc. All rights reserved.
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Menlo College ROI Case Study
• Deployment Details
•Single-site educational institution
•720 phones
Screenshot of ROI Summary
•Old environment consisted of a mix between
Centrex and PBX
•Analysis includes costs of data network upgrade
• ROI Findings
•Payback – 8 months
•Total Technology Benefit- $1.4M over 5 years
•ROI Drivers:
•Saved $800K in PBX equipment, maintenance
and installation costs
•Able to significantly improve communication
services to students that generated $324K of
revenue per year
•Reduced Moves, Adds and Changes by $24K
annually
© 2002, Cisco Systems, Inc. All rights reserved.
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• ROI = 126%
(Relative Scale)
• Payback Month = 10
• NPV (@12 %) = $60 million
Deployment of Converged
E-Business Applications:
IP & Web Foundation
Expanded to Include Voice
2001
2000
(US$)
Net Benefit
Business Benefit of Cisco IP Telephony
Actual ROI Results for Cisco EMEA:
FY2000 - FY2005
$2.6 m
=$340/emp.
2000
© 2002, Cisco Systems, Inc. All rights reserved.
$12.4m
$9.4m
=$1625/emp.
=$1230/emp.
2001
2003
2002
2002
2004
2005
$33m
$33m
=$4320/emp.
=$4320/emp.
2003
2004
Year
2005
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