Flawed ROI Calculator

I usually enjoy the articles and get useful information from the Network World newsletters I receive via email. Today I received one of their product central alert newsletter that contained a link to and IDC ROI Calculator for IBM’s Tivoli Netcool. Since I am in the business of network management I thought it would be a good idea to have a look. After providing all of my information to get access to this tool I proceeded to enter the parameters that would calculate how much money I would save by using IBM Tivoli Netcool.

The savings were astronomical- so much so that I couldn’t believe it. Naturally I opted to test the ROI calculator by entering information that would or should change my ROI to over a year instead of 3 months. Still huge savings. So I then entered the following:

6400 Clients
revenue  $43/client/month
20 IT Staff
20 Operations Staff.
1 Trouble call per month
1 minute call average
1 Incident per month
1 Hour average downtime per incident.

The average Annual Benefit came out to $1,113,167
Savings from avoided hires – $713,000 – With one incident per month, how can this be????
Savings from reduction in tools – $174,000 – if I dont take any calls why would I need these tools???

 So – I went even lower….

6400 Clients
revenue  $43/client/month
1 IT Staff
1 Operations Staff.
1 Trouble call per month
1 minute call average
1 Incident per month
1 Hour average downtime per incident.

This time I only saved $249,000

These ROI tools are nothing more than Marketing and Sales tools designed to make you believe that you will save money and at the same time collect you information – for what, who knows – but they have mine.

Purchasing a tool will not save you money… Investing in skilled people and only way to manage a network – the tools can just help them do the job a little faster.

I am disappointed that IDC would release such a flawed ROI tool.

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