Forrester Research: Total Economic Impact of the Dell Boomi Platform

Forrester: The Total
Economic Impact™ of
the Dell Boomi Platform
Div Manickam, Product and Solutions Marketing Director, Dell Boomi
Gene Leganza, VP and Research Director, Forrester Research
Julia Fadzeyeva, Consultant, Forrester Consulting
2/26/2019

Julia Fadzeyeva
jfadzeyeva@forrester.com
Gene Leganza
gleganza@forrester.com
Div Manickam
div.manickam@dell.com

Agenda
Why did Boomi conduct the Total Economic Impact
study – Div Manickam
Market Landscape and overview of the
challenges – Gene Leganza
Deep dive: The Total Economic Impact Of
The Dell Boomi Platform – Julia Fadzeyeva
Closing thoughts and Q&A

Boomi platform for our customers
Boomi delivers significant cost savings
by reducing the need for outside
consulting and integration services.
– Kelley Moore Paints
We save more than 200 hours per week in
manual processing while delivering mistake-
free, next-day shipping for customers.
- Candy
With Boomi Master Data Hub, our data is correct
everywhere, whether it’s flowing to our HR or
finance applications, or our scientific tools.
– Moderna Therapeutics
Boomi is easy to use and has many
advanced features. We can deal with
most of the situations we encounter
without having to resort to custom coding.
This saves us a lot of time and expense.
- Engie
Our vision is an integration architecture
with multiple best-of breed SaaS
solutions. Boomi makes that possible.
- Dropbox
Integrate

Fastest-growing cloud platform
8.2K
Customers
12.5K
Certifications
65K
Boomers
6
Customers a day
95%
Satisfaction
97%
Direct Renewal

7© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Forrester’s Take On Integration Technology
Market overview

› Context: Forrester’s coverage of integration technology
› Fundamental characteristics of iPaaS and hybrid integration
platforms
› Key trend: The focus on low code

Digital businesses requires agility
Source: Forrester report “A Developer's Guide To Forrester's Strategies For Integration And Digital Business Platforms.”

Integration technologies are varied and evolving
Source: Forrester report “TechRadar: Integration Technologies Q2 2015.”

2016 Research
included a
Vendor
Landscape and
2 Waves

2018 Research
included one
Now Tech and
one Wave

platforms

Category definitions
› In 2016, Forrester defined iPaaS as:
A solution that delivers converged data and application integration
capabilities, such as batch- and message-based transport, data
transformation, connectivity, and orchestration, with the core engine
executing exclusively in the cloud.
› In 2018, Forrester defined iPaaS and hybrid integration platforms as:
Technologies that simplify and reduce the cost of the development,
testing, deployment, and maintenance of application and data interfaces.

Category
attributes

platforms

Research on
low-code
platform
adoption shows
the trend
towards self-
service

Research on
low-code shows
clear results

What is TEI?
Background and methodology

Source: The Total Economic Impact Of The Dell Boomi Platform, November 2018
“Next-level” business case justifications are
increasingly important for technology investments
Very important,
60%
Somewhat
important, 33%
Somewhat unimportant, 4% Not at all important, 3%
Over 90% of IT decision-makers find value in a
business case
TCO ROI TEI
IT impact
IT costs
IT cost savings
Business
impact
User efficiency
Business effectiveness
Risk/
uncertainty
Risk mitigation
Risk versus reward
Strategic
impact
Scalability
Flexibility
What is an effective business case?
Base: 825 IT decision-makers at North American enterprises

RISKS
The objective of the TEI framework is to identify all of
the factors that affect an investment decision
TOTAL
ECONOMIC
IMPACTTM
(TEI)
BENEFITS
FLEXIBILITY
COSTS

Forrester took a multistep approach to evaluate the
impact of the Dell Boomi platform
Start
Due
diligence
Customer
interviews
Create
composite
Create
financial
model
Write case
study
Review and
finalize

Disclosures
The audience should be aware of the following:
› This document is an abridged webinar version of a full case study (Forrester Total Economic Impact of The
Dell Boomi Platform, November 2018).
› The study is commissioned by Dell Boomi and delivered by the Forrester Consulting group.
› Forrester makes no assumptions as to the potential return on investment that other organizations will
receive. Forrester strongly advises that readers should use their own estimates within the framework
provided in the report to determine the appropriateness of an investment in the Dell Boomi platform.
› Dell Boomi reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the
study and its findings and does not accept changes to the study that contradict Forrester’s findings or
obscure the meaning of the study.
› The customer names for the interviews were provided by Dell Boomi.
› Forrester does not endorse Dell Boomi.

Executive summary
High-level findings

Source: The Total Economic Impact Of The Dell Boomi Platform, November 2018.
Dell Boomi provides a low-code cloud-
native iPaaS that helps its customers
break down information silos, shortens
time to market and helps optimize the
use of IT resources.

Forrester has
determined
the following
three-year
impact
Based on an analysis of
the Dell Boomi platform
customer feedback and
quantified benefit, cost,
risk, and flexibility
factors.
ROI NPV PAYBACK
307% $4.8 million within 1 year

Analysis
Customer journey and key results

Forrester interviewed six Dell Boomi customers
SALES & MARKETING
TRAVEL & TRANSPORTATION
ENERGY & UTILITIES
An Australian company that uses
Integrate, Hub, and Flow elements of the
Dell Boomi platform
MEDIA & ADVERTISING
A US organization that uses Integrate,
Flow, Hub, and Mediate elements of the
Dell Boomi platform
A US organization that uses Integrate,
Mediate, and Hub elements of the Dell
Boomi platform
A US organization that uses Integrate
and Mediate elements of the Dell Boomi
platform
MANUFACTURING
A US company that uses Integrate and
Exchange elements of the Dell Boomi
platform
CONSTRUCTION
A Canadian organization that uses
Integrate, and Hub elements of the Dell
Boomi platform

The customers shared experiences before and after
using Dell Boomi
The Customer Journey
KEY DRIVERS
•A multitude of integration tools and
lack of governance resulted in
chaos.
•IT organizations struggled to
respond to business needs.
•Decision makers could not trust the
data.
SOLUTION REQUIREMENTS
•Break down silos across a myriad
of systems.
•Help developers build simple,
effective, and robust integrations.
•Empower IT to respond in real time
to business opportunities.
•Enable organizations to easily
connect to external partners.
•Assist organizations in deriving
insights from massive amounts of
data.
KEY RESULTS
• A unified iPaaS breaks down
information silos to build a more
connected business.
•Shortened time-to-market for
integration projects enables business
improvements.
•The Dell Boomi low-code and easy-to-
use platform helps optimize the use of
IT resources.

“Moving to a unified platform allowed us to unify our integration efforts and
see the synergies that come in from this consistent approach. The
acceleration in the amount of time it takes to build out an integration or
deliver a major enhancement to a business process is a tremendous benefit to
the business.”
One interviewee shared the following key result:
Director of application development, sales and marketing for consumer goods

$10
billion
ANNUAL
REVENUE
100 SERVERS
support legacy
integration tools
3 IT FTEs
Manage the
infrastructure
$110,000
Develop burdened
salary
30,000
EMPLOYEES 60 DAYS
To complete a typical
integration
$500,000
Spend on integration
tools
30%
Operating margin
Forrester created a composite organization
representative of customer interviewees

The customers quantified key benefits from the Dell
Boomi investment
Incremental revenue
contribution
Improved integrations,
data exchange with
partners, access to data,
and new workflows,
resulted in $3.4 million
incremental profit.
Cost savings from
transition to the
cloud
A shut down of 100
servers used for legacy
integration solutions and
reassigned IT staff
resulted in $1.5 million.
Avoided cost of
legacy software
By cancelling legacy
software licenses the
organization saved $1.1
million.
Improved IT staff
productivity
Reduction in labor required
to complete an integration
project by 70% resulted in
over $388K in savings.

Dell Boomi unified iPaaS drove incremental revenue
(gross profit)
Incremental revenue – $3.4 million over three years
• Each interviewed organization used the Dell Boomi platform to improve both
business operations and the ways in which organizations serve their
customers.
• They built new integrations for internal systems, improved data exchange
with partners, introduced new workflow automations, and simplified access to
data and insights.
• These improvements resulted in incremental revenue for their organizations.
Additional revenue Operating margin Risk adjustment
$2 – $10 million 30% ▼15%

A transition to the cloud resulted in savings on
infrastructure cost and management
Cost savings from transition to the cloud – $1.5 million
over three years
• Prior to Dell Boomi, on premise integration tools required the infrastructure to
host them. IT staff were charged with maintaining the associated
infrastructure.
• As a result of the full or partial migration to the cloud organizations shut down
the servers used for the legacy solutions and reassigned the IT staff
dedicated to infrastructure management.
FTEs managing
infrastructure
Servers shut down Cost of one server Risk adjustment
3 IT FTEs 100 $4,999 ▼15%

Retiring previous integration solutions eliminated
license fees and reduced the burden on IT staff
Avoided cost of legacy software – $1.1 million over
three years
• Prior to Dell Boomi, on premise integration tools required IT staff to maintain
them. And upgrades were necessary every three years.
• As a result of the full or partial migration to Dell Boomi organizations shut
down the legacy solutions and reassigned the IT staff dedicated to
maintenance.
Cost of legacy
solutions
IT FTEs supporting
legacy tools
FTE’s time spent on
maintenance
Risk adjustment
$500,000 2 50% ▼10%

Development timelines were shortened by 70%,
leading to an increase in IT staff productivity
Improved IT staff productivity – $388,568 over three
years
• The Dell Boomi low-code environment allowed IT staff to reduce the time
spent in development and testing phases, introducing new features to
existing integrations.
• Dell Boomi enabled IT to significantly cut integration project timelines and
serve their business customers faster.
Number of
new
integration
projects
Average
project
duration
Reduction in
FTE’s labor
IT staff required to
complete a project
Productivity
captured
Risk
adjustment
20 60 days 70% 6 50% ▼5%

The ease of use for
the Dell Boomi
platform enables
developers to wear
different hats.
Improved data
quality facilitates
decision making.
A centralized
platform reduces
time to troubleshoot
system errors.
Additionally, there are benefits to using the Dell
Boomi platform that the customers couldn’t quantify
Unified platform
contributes to a
culture shift in
integration work
being more mindful.

Customers incurred two categories of cost to use the
Dell Boomi platform
Fees to Dell Boomi
• Fees for Dell Boomi license and
support
• Determined by the Boomi elements
included and usage
• Support amount to 25% of the platform
cost.
Implementation and
management
• 6 FTEs involved in implementation for
6 months
• 2 FTEs manage the platform for 10%
of their time
• Organization engages Dell Boomi
professional services as needed

TEI analyses also includes flexibility and risk factors
FLEXIBILITY
Dell Boomi provides an organization
with the ability to engage in future
initiatives for additional benefit
•The Dell Boomi cloud-native
platform positions organizations for
digital transformation and growth.
•The low-code platform empowers
citizen developers.
•Dell Boomi prepares organizations
for IoT and AI.
IMPACT RISK
Business/technology needs may not
be met by investment in Dell Boomi,
resulting in lower benefits
•The opportunities for integration
that exist at each organization.
•Lack of organizational commitment
to integration efforts.
•Hardware / software used
previously to support integration.
IMPLEMENTATION RISK
Proposed investment in Dell Boomi may
deviate from expected requirements,
resulting in higher costs
•Higher complexity of the migration of
the former integration solutions to Dell
Boomi and the need for professional
services.
•Increased implementation scope.

Financial summary
Three-year model

Three-year model summary results
ROI
307%
NPV
$4.8 million
Payback
within 1 year
-$1.0 M
$1.0 M
$2.0 M
$3.0 M
$4.0 M
$5.0 M
$6.0 M
$7.0 M
Initial Year 1 Year 2 Year 3
Cash
flows
Total costs
Total benefits
Cumulative net benefits

QuestionsDownload the Report – https://boomi.com/content/report/the-total-economic-
impact-of-the-dell-boomi-platform/

Forrester Research: Total Economic Impact of the Dell Boomi Platform

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