Frequently Asked Questions

Forrester TEI Certified ROI Tool for File Server Consolidation

Rev 0.2sc

This document is NetApp restricted and is only be available to NetApp employees and NetApp
channel partners under NDA. Do not share this with anyone not covered by NDA or anyone not
involved in selling NetApp file services.
This is a living document. Download the latest copy from SE/PC directly. Chances are it has changed
since you last saw it. If you have any questions on the ROI tool or would like add questions to this list
for others benefit, e-mail me at Sachin.Chheda@netapp.com.

1. What is the ROI tool for file server consolidation?

The File server consolidation ROI calculator tool is a tool that can help create a business and
financial case for consolidating Windows file servers on to a NetApp NAS solution. This calculator
was recently updated based on new ROI model created by Forrester after interviewing seven real
NetApp customers who consolidated their file servers to NetApp. This tool is Forrester TEICertified which means it has Forresters endorsement (their logo even appears on the ROI report
you can show customers along with ours).
In addition to helping make a business case for consolidation, the ROI tool will help your customer
understand their cost of file servers. Typically the costs of a distributed file serving solution using
Windows and UNIX/Linux servers are spread all over the IT budget, preventing apples to apples
comparison of cost and value. Our tool is intended to help quantify the customers costs and
establish an apples-to-apples comparison.

2. What is the Forrester TEI? Why should my customers care?

The Forrester TEI methodology is one of the most widely used and widely accepted methods for
calculating the ROI and Total Economic Impact for any IT project. When presenting this to
customers, use the following to avoid sounding like an advertisement for the Forrester TEI:
a. TEI is one of the most widely used methodology for ROI calculation which is why we
chose to go this route for creating an ROI tool.
b. While commissioned by NetApp, Forrester takes its objectivity in the TEI analysis very
seriously and makes sure the results are rooted in reality (see disclaimers in the
report)
c. The TEI considers the following factors
i. Cost impact on IT.
ii. Benefits impact on business.
iii. Flexibility future options created by the investment.
iv. Risk uncertainty.
d. Consider using a methodology when evaluating consolidation (or any other IT project).

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If you are looking for a graphic to include on a slide, use the one below

For more information, visit www.forrester.com/TEI.

3. How and where can I use this?

The best time to use the TEI study is after having the initial conversation with the customer where
you have already collected some basic information on the customer and the customers IT
environment
What type of file storage and how much?
Key challenges and sensitivities
Key players (note that youll be talking to the Windows and UNIX or Linux IT
teams here as well as storage teams)
Budget and staffing restrictions
Use of ROI processes (Making a business case can help the customer justify the
project)
Initiatives (will this fit into one of the existing initiatives)
The ROI calculator has several tabs that chronologically collect information on the customers
current file serving environment, costs, and sensitivities and then present the ROI information.
To use the ROI tool, follow this process
1. (Independently) Go through the tool and fill out all the different fields in the different
tabs. The tabs are numbered, so just walk through them.
2. Give the customer a quick overview of the Forrester TEI. We will be posting a short
summary of the TEI process (Forresters slides) and be including a link here as soon
as its available.
3. Sit down with the customer to collect information to the questions on tab 1,
Questionnaire. You dont have to have your NetApp solution ready at this time. Just
collect the information. Make sure the customer is comfortable with the answers (the
more sure the customer is, the less the spread of the risk adjusted ROI). Also enter
the risk percentage.
4. Collect the following information regarding customers:
o Cost of capital
o Power and cooling (see corresponding tab for details)
o Incremental availability costs (these are mostly support related)
o Cost of buying incremental storage (current solution)

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5. (Independently) Enter the price of the NetApp proposal, including all the appropriate
software, support, services, and training. This ROI tool only applies for file services, so
make sure you point out or exclude software that isnt applicable for the ROI for file
server consolidation. Be sure to include the right utilization and deduplication
%age.
6. Depending on the relationship with the customer and the customers comfort level,
walk through the different cost sections or simply present the ROI summary.
We have tried to make the tool as intuitive as possible, so chances are the answers to your
questions on the data fields in the tool are included either in the notes or in comments of the cells.
Send us an e-mail if you have a question that isnt covered in the tool.

4. How do I get the tool? Do I need anything special to run it?

You can download the ROI calculator for file server consolidation from:

PartnerCenter: http://partners.netapp.com/see/mycomm/P_016662

SalesEdge: http://my.netapp.com/psweb/appmanager/mktgportal/mktgdesktop?
_nfpb=true&nodeId=3020&_pageLabel=mktgPS_docdetail&contentId=P_016662

The ROI calculator tool is an Excel 2003 spreadsheet and should run on any computer capable of
running Excel.

5. Anything specific I need to be aware of when using this tool?

As mentioned earlier, customers typically have a hard time quantifying the costs for distributed file
server environments because the costs are spread all over the place. Make sure to walk them
through all the different costs they incur, including software costs, cost of downtime, support,
storage costs (check if they using either SAN or DAS), and so on.
Make sure to also include manageability software in your proposed solution (such as VFM
[Virtual File Manager], Operations Manager, and so on). This represents tremendous value to
the customer in terms of added capabilities and administrative/time saving.
Also get the customer started thinking about the difference in implementing a consolidated file
services solution in terms of:
Lower downtime (represented by business impact in the ROI tool)
Increased productivity and flexibility of the IT and end users (represented by the
organizational flexibility option)
Repurposing existing servers used (represented by credit for repurposing)

6. Describe the model used in calculating the ROI for file serving
Here is a graphical view of the model. The NetApp solution costs are presented in the blue box
(solution cost plus planning, services, and training). The savings are presented in the green box,
starting with the cost savings of the file servers, and include:
Repurpose credit
Tape savings
Power, space, and cooling
General management saving

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Overhead in file restoration and backup

(If applicable) improved efficiency with management software
(If applicable) support for UNIX and Windows file sharing (eliminating gateways such as
Samba)
Business savings/value covering reduced downtime (planned and unplanned) and added
flexibility

NetApp

Savings with NetApp

+
NetApp
Solution
Cost

1/2 FTE
Mgmt

KW-Hr

Planning,
Services
and
Training
cost

1/3 FTE
File
Restore

FTE
Backup

+
Server
Repurpose
Credit

File
Servers
Costs

1/8 FTE
Ops
and
Prot Mgr

1/8
FTE
VFM

3/8 FTE
Samba

Tape
Related
Costs
Saving
s

Power,
Cooling,
and Space
Cost
Savings

+
Business
Downtime
Flexibility
(Planned and
Unplanned)

If applicable

There are two options to consider when quantifying the cost savings of the file servers. These are
described in the graphic below (associated with the gray box shown below). Note that the cost of
the file servers is presented and used as a lifecycle cost, which covers hardware, software, and
support costs. This is an easier number to discuss with customers and agree on because it
combines all costs and presents them as an annual cost.

Original File
Servers
Refreshed
File Servers

Added File
Servers

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Option 1:
Assume original file servers have an annual lifecycle cost (hardware, software, support, and so
on). In this option, annual file server lifecycle costs = annual costs of (existing/refreshed)
servers + new file servers added for growth.
Option 2:
Assume original file servers have $0 annual costs (make sure to account for any costs in
question 7). In this option, annual file server lifecycle costs = annual costs of refreshed servers
+ new file servers added for growth.

7. We also have an Oliver Wyman study on TCO of Windows file server

consolidation. How do I position both these studies? Arent they the
same thing?
In a nutshell, they are complementary studies. The Oliver Wyman study is focused on comparing
the TCO of NetApp vs. EMC (NetApp is approximately 30% to 40% lower). The Forrester study is
focused on ROI of consolidating file servers. Use the Oliver Wyman study when competing with
EMC and use the Forrester ROI tool and upcoming case study when selling our file server solution
to a green field account.
The Oliver Wyman study on Windows file server consolidation was a study commissioned by
NetApp that evaluated the total cost of ownership of a NetApp and EMC Windows file services
solution. Like the Forrester TEI study, Oliver Wyman used real-world customers to build its model.
Oliver Wyman interviewed not only NetApp customers, but also EMC NAS customers. The end
result of this study was a report comparing the TCO of a NetApp Windows file services solution
versus an EMC equivalent. You can find the Oliver Wyman report and the customer presentation
on the Windows file services page on SalesEdge and PartnerCenter (links below):

SalesEdge: http://my.netapp.com/psweb/appmanager/mktgportal/mktgdesktop?
_nfpb=true&nodeId=3020&_pageLabel=mktgPS_generic

PartnerCenter: http://www.netapp.com/mycommunities/PartnerCenter/3020

8. I need to modify the tool to model my customers special situation. How

do I do this?
Because this model is based on the Forrester TEI study, we dont allow the model to be modified
in any form. If modified, we can not claim it to be TEI certified. This is why the file is protected.

2008 NetApp. All rights reserved. Specifications are subject to change without notice. NetApp, the NetApp logo, Go further, faster, VFM,
and Virtual File Manager are trademarks or registered trademarks of NetApp, Inc. in the United States and/or other countries. Windows is a
registered trademark of Microsoft Corporation. Linux is a registered trademark of Linus Torvalds. UNIX is a registered trademark of The
Open Group. All other brands or products are trademarks or registered trademarks of their respective holders and should be treated as such.

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