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IDC White Paper | Fostering Business and Organizational Transformation to Generate Business Value with Amazon Web Services
The five-year ROI is then calculated by dividing the NPV by the five-year discounted
investment costs ($62.99 million divided by $9.89 million), which results in a five-year ROI
of 637%.
TABLE 11 Business Value Calculations
$339,100
$254,200
$663,700
$168,900
$333,000
$247,900
$1,555,600
Value per Year per Organization
IT infrastructure cost reductions
Ongoing hardware costs (warranty/maintenance)
Database licensing costs
Power costs
Facilities costs
IT infrastructure and application management efficiencies
Database administration efficiencies
$546,100
$4,387,000
$1,241,800
$1,207,300
$179,900
Application development productivity benefits
Productivity loss avoided benefits
Revenue loss avoided benefits
Regulatory compliance cost savings and efficiencies
Help desk support efficiencies
Infrastructure licensing costs
$155,800
$75,900
$1,823,200
$13,131,200
$69,700
Investment costs
Initial staff deployment time cost (one time)
Initial deployment consulting cost (one time)
AWS cost
Total five-year investment costs
Initial training time and other costs (one time)
IT staff productivity benefits
Risk mitigation — user productivity benefits
$3,872,000
$500,600
$5,469,900
Business analytics team achieving higher productivity
Other users achieving higher productivity
Increased revenue
$20,967,200
$104,835,900
Total benefits (average per year over five years)
Total five-year benefits
Business productivity benefits