Many times during the evaluation process, we are asked if we can provide any kind of help with the financial justification of an investment in Network Performance Monitor. Companies of all sizes can build a strong business case for investing in network management and monitoring software while experiencing a strong return-on-investment (ROI), improved data analysis and reporting, and reduced network downtime.
As a result of these requests, we have built an easy-to-use ROI calculator that allows you to enter information specific to your infrastructure and then generate a custom ROI report that even your CFO will love.
Here’s how it works:
Simply enter your total number of interfaces, nodes, and volumes that you wish to monitor. The calculator will automatically select the correct NPM license.
Annual Cost of Network Management
Here you will tell the calculator how many IT employees you have focused on network management, what their average annual loaded cost is, and how much of their time is dedicated to network monitoring. This information will provide the salary cost of your network management and monitoring.
Annual Cost of Network Downtime
Tell it what the average monthly downtime is, the percent of employees that are affected by system downtime, what the impact to those affected employees’ productivity is, and lastly if there is any impact of network downtime on revenue. You may see this last one if you rely heavily on e-commerce or have a sales floor that would be negatively impacted by network downtime.
Annual Savings from Productivity Improvements by Deploying NPM
Estimate what you think your productivity improvement will be by implementing a network management system as well as the estimated percentage reduction in network downtime.
This is the basic information about your company that will allow the calculator to estimate the ROI: annual revenue, number of employees, total yearly business hours, effective tax rate, and your weighted average cost of capital.
The ROI calculator will automatically graph an estimated cost benefit analysis based on your information and the projected cost of your implementation. It will even create a table with your discounted cumulative net cost savings, net present value, internal rate of return, and payback period.
If you like what you see, then you can download the free report along with a formal quotation and an overview of NPM that can be used as part of your business justification to your manager.
You can check out the ROI calculator for yourself here.