Businesses remain under severe pressure to evolve IT to support digital transformation programs.
Agility, responsiveness and cost-effectiveness are essential to stay relevant to employees, customers, partners and other stakeholders.
To meet these challenges, businesses are turning in increasing numbers to the cloud and Software as a Service applications.
Unfortunately, many transformation programs — not to mention IT business-as-usual — are being hobbled by middleware incapable of meeting the demands of modern businesses.
These traditional products typically run in on-premise environments and are characterised by high maintenance and licensing costs. In many cases, businesses must run several integration tools that — ironically — do not talk to each other.
Fortunately, the emergence of enterprise-quality Integration Platform as a Service (iPaaS) is enabling businesses and organisations to overcome the middleware challenge.
These new iPaaS products enable customers to reduce costs, time and other resources needed for integration; consolidate the integration products running in an environment; and provide a starting point for businesses and organisations to embrace the potential of the cloud. The benefits of deploying these products can run into millions of dollars.
These issues are discussed in a report called The Total Economic Impact of The Dell Boomi Platform by Forrester Research.
Dell Boomi supports two deployment models: an in-the-cloud model for use when all integration points are cloud-based; and an on-premise model for use when any integration points reside within the corporate network.
The goals are to break down information silos, automate workflows, secure real-time access to data across applications and business partners, and provide data analysis and management capabilities.
To determine the Total Economic Impact (TEI) and return on investment businesses and organisations could achieve with Dell Boomi, the vendor engaged research firm Forrester Research.
To prepare its report, Forrester interviewed six Dell Boomi customers from six industries. To calculate the TEI of Dell Boomi, Forrester created a ‘composite organisation’ based on the interviewed customers.
The researchers calculated the quantified benefits of Dell Boomi on the basis of:
- Incremental revenue generated when organisations connected data from siloed systems and allowed different parts of the organisation to interact with that data;
- Retiring previous integration solutions, eliminating licence fees and reducing the burden on IT staff;
- Shortening development times and consequently improving staff productivity; and
- Reducing infrastructure costs and management by transitioning to the cloud.
Forrester made several assumptions for the composite organisation that transitions to the cloud with Dell Boomi, including: the reassignment of three full-time equivalent employees from integration product infrastructure to value-add projects; the shutting down of 100 servers over three years (50 in year one and 25 each in years two and three); and the costs of servers, software, maintenance and facilities.
Based on these assumptions, Forrester calculated the risk-adjusted total benefit resulting from a move to the cloud over three years as nearly $1.5 million.
“The interviewed organisations described one of the key benefits as cost savings from replacing their on-premise integration solutions with the cloud-native Dell Boomi platform,” the researchers wrote.
Savings from moving to the cloud are just one component of a net present value of $4.8 million and a return on investment of 307 per cent over three years, Forrester reports.
About this author
Andrew Birmingham is the director of the Which-50 Digital Intelligence Unit of which Dell Boomi is a corporate member. Our members provide their insights and expertise for the benefit of the Which-50 community. Membership fees apply.