ROI estimating for DCIM investment

Emerson Network Power has launched what is said to be the first third-party developed data centre infrastructure management (DCIM) return-on-investment (ROI) estimating tool. Emerson Network Power commissioned Forrester Consulting to develop the tool in response to the market demand for a rigorous ROI analysis to justify investment in DCIM solutions. Now, enterprises can learn the potential ROI, savings and value they will realise by deploying DCIM.

Monday, 3rd February 2014 Posted 10 years ago in by Phil Alsop

Forrester Consulting interviewed twelve Emerson customers that shared data required to develop the ROI tool. Forrester then used that data to construct a Total Economic Impact™ (TEI) framework for organisations considering implementing DCIM. The framework helps identify the fundamental elements of TEI, including costs, benefits to the entire organisation, flexibility and risk factors that affect the investment decision. The ROI tool then quantifies these TEI elements and uses them to determine traditional and risk-adjusted ROI, net present value (NPV) and payback period. Furthermore, the tool measures benefits by specific DCIM category, allowing customers to see where they get the most value. Those categories include:
· Configuration management
· Capacity management
· Process management
· Alarm and monitoring
· Integration management
· Remote management

“Our customers have been asking for a way to calculate the ROI of DCIM solutions, and now we have it,” said Steve Hassell, president of Emerson Network Power’s Data Center Solutions business. “We are pleased that Forrester Consulting, a highly respected independent research firm, developed this powerful, comprehensive ROI tool, and we’re excited that we can now offer our customers an ROI analysis to help justify adoption of DCIM solutions.“