Data campaign

IDC White Paper | The Business Value of AWS Data Lakes, Analytics, and ML Services 26 IDC White Paper, Sponsored by Amazon Doc. # US46241320 These benefits manifested themselves into an average of 42% reduction in infrastructure costs, 17% more efficient analytics teams, and a five-to-one return on these organizations' investment into AWS data lakes, analytics, and machine learning. These benefits were reported through the interviews IDC conducted for this study. Users told IDC about eased management needs for their analytics-supporting infrastructure, reduced costs, and a wide range of analytics platforms that improved their analytics operations. These benefits manifested themselves into an average of 42% reduction in infrastructure costs, 17% more efficient analytics teams, and a five-to-one return on these organizations' investment into AWS data lakes, analytics, and machine learning. Appendix – Methodology IDC's standard ROI methodology was utilized for this project. This methodology is based on gathering data from current users of the AWS Data Lakes solution as the foundation for the model. Based on interviews with organizations using it, IDC performed a three-step process to calculate the ROI and payback period: Note: All numbers in this document may not be exact due to rounding. Gathered quantitative benefit information during the interviews using a before-and- after assessment of the impact of AWS Data Lakes. In this study, the benefits included staff time savings and productivity benefits, and operational cost reductions. Created a complete investment (five-year total cost analysis) profile based on the interviews. Investments go beyond the initial and annual costs of using the AWS service platform and can include additional costs related to migrations, planning, consulting, and staff or user training. Calculated the ROI and payback period. IDC conducted a depreciated cash-flow analysis of the benefits and investments for the organizations' use of AWS over a five-year period. ROI is the ratio of the net present value (NPV) and the discounted investment. The payback period is the point at which cumulative benefits equal the initial investment. IDC bases the payback period and ROI calculations on a number of assumptions, which are summarized as follows: Time values are multiplied by burdened salary (salary + 28% for benefits and overhead) to quantify efficiency and manager productivity savings. For purposes of this analysis, based on the geographic locations of the interviewed organizations, IDC has used assumptions of an average fully loaded $100,000-per-year salary for IT staff members, and an average fully loaded salary of $70,000 for non-IT staff members. IDC assumes that employees work 1,880 hours per year (47 weeks x 40 hours). The net present value of the five-year savings is calculated by subtracting the amount that would have been realized by investing the original sum in an instrument yielding a 12% return to allow for the missed opportunity cost. This accounts for both the assumed cost of money and the assumed rate of return. Further, because IT solutions require a deployment period, the full benefits of the solution are not available during deployment. To capture this reality, IDC prorates the benefits on a monthly basis and then subtracts the deployment time from the first-year savings.

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