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Economic Validation: Analyzing the Economic Benefits of Intelligent Search using Amazon Kendra 8 © 2022 TechTarget, Inc. All Rights Reserved. Figure 3. Amazon Kendra 5-year TCO Savings Compared to Building and Managing a Traditional Search Solution Source: ESG, a division of TechTarget, Inc. What the Numbers Mean Comparing Amazon Kendra to a traditional search solution, our model predicted that: • The organization could lower its TCO by 75% in the first year and have a ready-to-use intelligent search tool for their customers or employees. With the Amazon Kendra managed service, there is no need for infrastructure, and the development costs for the search tool are reduced due to a smaller need for data science/ML engineering staff. • For the remaining four years, the organization could see 85% savings each year, as compared with the development and operation of a traditional search tool. As a fully managed service, customers only pay for the subscription and a part-time staffer for administration/maintenance purposes. • It's important to note that this model does not consider the significant ROI improvement of getting into production two years sooner than the on-premises model. • Over five years, the overall TCO savings predicted by ESG's model is 82%. ESG then created two simple models based on customer cases to illustrate the impact of Amazon Kendra on two distinct types of organizations. The first one is a research and development organization that had a 25% improvement in staff productivity when their employees used Amazon Kendra. This model could also apply to any company building an intranet search site. ESG assumed a company with 8,000 research scientists, with an average yearly salary of $107,551. Based on internet research and conversations with customers, we assumed that 20% of employees spent their working time looking for information, with a success rate of about 55%. As seen in Figure 4, the ESG model predicted that the R&D organization using Amazon Kendra could expect $75.7M in savings from the increased productivity of their employees. Additional benefits include the possibility of innovating faster, potential revenue increases, and reduced risk and liability. $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 Traditional Search Amazon Kendra Enterprise Search Costs ($/5 Years) Hardware Cluster Management Data Scientists/ML Experts Developers IT Administration/Maintenance Subscription 82% Lower 5-year TCO

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