A Forrester Total Economic Impact™ Study Commissioned By Apple, April 2024
More often than ever before, today’s organizations are prioritizing the improvement of their digital employee experiences (DEX) and end-user experiences. 1 A strong DEX contributes to business outcomes such as employee retention, security, and customer satisfaction. 2 By investing in Mac devices for business, whether as a standard offering or as part of a choose-your-own-device (CYOD) program, an organization can improve its DEX while decreasing its total employee device costs and improving its security posture, IT efficiency, and employee productivity.
Apple commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying Mac devices.3 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of Mac devices on their organizations.
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed 11 decision-makers from nine organizations and surveyed 242 hardware decision-makers and 53 end users with experience using Mac devices for business at their organizations. For the purposes of this study, Forrester aggregated the experiences of the interviewees and survey respondents and combined the results into a single composite organization that is a global enterprise organization with more than 50,000 employees.
has about 0 employees and generates $0 in annual revenue. Custom results are based on user inputs and the TEI case study.
Interviewees said that prior to using Mac devices, their organizations struggled with inefficient device provisioning, suboptimal security posturing, and poor device user experiences. Multiple interviewees said small groups of employees at their organizations used Mac devices for work outside of the company’s fully managed IT infrastructure. They said these employees were attracted to the performance of the devices and that they were often previously familiar with the Mac operating system (OS). As the number of employees who wanted to use Mac devices grew, the organizations struggled with a lack of visibility into these unmanaged devices. Attracted to the improved performance and cost of the MacBook Air with Apple silicon, the organizations decided to officially offer Mac devices to employees to bring the Mac devices under management, standardize to a single device type, simplify device security, and/or improve their DEX.
Interviewees said that after their organizations invested in a device choice program that offered Mac devices, a considerable number of employees chose Mac devices. They explained that as a result, their organizations became more secure, and their IT teams became more efficient. At the same time, employees who switched to using Mac devices benefitted from increased performance, improved battery life, and more reliability. Interviewees said the benefits of Mac devices compounded with the number of Macs deployed.
Quantified benefits . Five-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:
For , this benefit might be worth over five years.
For , this benefit might be worth over five years.
For , this benefit might be worth over five years.
For , this benefit might be worth over five years.
For refreshing about 0% of devices per year, this benefit might be worth .
Unquantified benefits. Benefits that provide value for the composite organization but are not quantified for this study include:
Costs. Five-year, risk-adjusted PV costs for the composite organization include:
For , these costs could represent over five years.
For with a total of 0 MacBook devices deployed, these costs could represent over five years.
The financial analysis which is based on the decision-maker interviews and survey found that a composite organization experiences benefits of $76.0 million over five years versus costs of $26.6 million, adding up to a net present value (NPV) of $49.4 million and an ROI of 186%.
might experience benefits of over five years versus costs of , adding up to an NPV of and an ROI of 0%.
Return on investment (ROI)
Benefits PV
Net present value (NPV)
Payback
From the information provided in the interviews and survey, Forrester constructed a Total Economic Impact™ framework for those organizations considering an investment in Mac devices.
The objective of the framework is to identify the cost, benefit, flexibility, and risk factors that affect the investment decision. Forrester took a multistep approach to evaluate the impact that Mac devices can have on an organization.
Interviewed Apple stakeholders and Forrester analysts to gather data relative to Mac devices.
Interviewed 11 decision-makers from nine organizations and surveyed 242 hardware decision-makers and 53 end users of Mac for business at organizations using Mac devices to obtain data about costs, benefits, and risks.
Designed a composite organization based on characteristics of the interviewees’ organizations.
Constructed a financial model representative of the interviews and survey results using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewees.
Employed four fundamental elements of TEI in modeling the investment impact: benefits, costs, flexibility, and risks. Given the increasing sophistication of ROI analyses related to IT investments, Forrester’s TEI methodology provides a complete picture of the total economic impact of purchase decisions. Please see Appendix A for additional information on the TEI methodology.
Readers should be aware of the following:
This study is commissioned by Apple and delivered by Forrester Consulting. It is not meant to be used as a competitive analysis.
Forrester makes no assumptions as to the potential ROI that other organizations will receive. Forrester strongly advises that readers use their own estimates within the framework provided in the study to determine the appropriateness of an investment in Mac devices. For the interactive functionality using Configure Data/Custom Data, the intent is for the questions to solicit inputs specific to a prospect's business. Forrester believes that this analysis is representative of what companies may achieve with Mac devices based on the inputs provided and any assumptions made. Forrester does not endorse Apple or its offerings. Although great care has been taken to ensure the accuracy and completeness of this model, Apple and Forrester Research are unable to accept any legal responsibility for any actions taken on the basis of the information contained herein. The interactive tool is provided ‘AS IS,’ and Forrester and Apple make no warranties of any kind.
Apple 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.
Apple provided the customer names for the interviews but did not participate in the interviews.
Forrester fielded the double-blind survey using a third-party survey partner.
Consulting Team:
Emma Conroy
Nahida Nisa
Nick Ferrif
Forrester interviewed 11 representatives of nine organizations and surveyed 242 hardware decision-makers and 53 end users with experience using Mac devices for business at their organizations. For more details on these individuals and the organizations they represent, see Appendix B.
Interviewees said that before investing in Mac devices, their organizations primarily deployed PC devices from several brands to all employees. While most of the organizations had not sanctioned Macs for official use, several of the organizations’ IT teams were aware of subsets of employees who were using Mac devices, most often in leadership or software development roles. For some organizations, these devices were not formally managed. The interviewees noted their organizations struggled with common challenges with their device makeups, including:
To solve for these challenges, the interviewees’ organizations evaluated implementing a device choice program that could:
Base: 242 hardware decision-makers at their
organization
Source: A
commissioned study conducted by Forrester Consulting on behalf of Apple,
March 2024
Ultimately, the interviewees’ organizations chose to implement a device choice program that included Mac or to switch to Apple devices entirely.
Base: 242 hardware decision-makers at their
organization
Source: A
commissioned study conducted by Forrester Consulting on behalf of Apple,
March 2024
Based on the interviews and survey results, Forrester constructed a TEI framework, a composite company, and an ROI analysis that illustrates the areas financially affected. The composite organization is representative of the 11 interviewees’ nine organizations, and it is used to present the aggregate financial analysis in the next section. The composite organization has the following characteristics:
Description of composite. The global, multibillion-dollar business-to-consumer organization is headquartered in North America. More than 50,000 of the organization’s employees utilize a personal computer at work, and all personal computers are refreshed on a four-year cycle. The vast majority of employees were given PCs that ran on the PC OS, although a select few were given a choice of personal computer type based on their role or type of work. Some of these employees — mainly those in engineering, data science, creative, design, or executive roles — chose to use a Mac device for work. The organization managed these devices, but it did not have employees with specific expertise of Apple devices or any dedicated to the devices given the very small number of such devices compared to PCs. Many employees utilize iOS devices for work in addition to personal computers.
Deployment characteristics. Decision-makers at the composite organization choose to implement a device choice program for employees. Employees are newly eligible for a choice of device when their existing personal device is retired at the end of its four-year lifespan. Eligible employees can select from multiple device options, including Macs and PCs, within a specified performance tier based on their role and specific responsibilities. The MacBook Air with M1 serves as a capable device option for a range of employees across multiple tiers due to its power and performance.
During the first year of the choice program, when 12,500 employees are offered a choice of device, 30% of eligible employees choose to use a Mac. In the second year, 35% of eligible employees choose a Mac. And in the third year and beyond, 40% of eligible employees choose a Mac.
Overall, during the first three years of the program, the organization deploys a total of 13,125 Macs vs. 24,375 PCs. In order to maintain the same device refresh schedule for all devices, Mac devices are standardized to the organization’s existing four-year device lifespan.
has 0 employees and refreshes about 0% of devices per year. During the first year of the choice program, 0% of eligible employees choose to use a Mac. In the second year, 0% of eligible employees choose a Mac. And in the third year and beyond, 0% of eligible employees choose a Mac.
For a comprehensive analysis of the costs and benefits of each device, this model extends the calculation of the benefits and costs of the Mac devices purchased during Years 1, 2, and 3 through the end of Year 5 of the device choice program. Although Forrester excluded these from the modeled costs and benefits, it assumes the composite organization continues to deploy Mac devices to employees as part of the choice program in these years.
The following table shows custom results for .
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
---|---|---|---|---|---|---|---|
XX1 | Total employees eligible for choice of device | CompositeComposite | 50,00050,000 | 50,00050,000 | 50,00050,000 | 50,00050,000 | 50,00050,000 |
XX2 | Percentage of employees eligible for device refresh with choice of device | CompositeComposite | 25%25% | 25%25% | 25%25% | ||
XX3 | Percentage of employees choosing MacBook Air | CompositeComposite | 30%30% | 35%35% | 40%40% | ||
XX4 | Employees receiving a new MacBook Air device | XX1*XX2*XX3 | 3,7503,750 | 4,3754,375 | 5,0005,000 | ||
XXt | Total employees using Mac devices | XX4, cumulative | 3,7503,750 | 8,1258,125 | 13,12513,125 | 13,12513,125 | 13,12513,125 |
The following table shows custom results for .
Ref. | Benefit | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Total | Present Value |
---|---|---|---|---|---|---|---|---|
Atr | Reduced support and management costs | $737,595 $737,595 | $1,598,123 $1,598,123 | $2,581,583 $2,581,583 | $2,581,583 $2,581,583 | $2,581,583 $2,581,583 | $10,080,465 $10,080,465 | $7,297,100 $7,297,100 |
Btr | Reduced and avoided hardware, software, and energy costs | $4,826,003 $4,826,003 | $6,679,151 $6,679,151 | $8,707,103 $8,707,103 | $3,670,853 $3,670,853 | $3,670,853 $3,670,853 | $27,553,961 $27,553,961 | $21,235,562 $21,235,562 |
Ctr | Cost savings from reduced risk of a data breach | $57,340 $57,340 | $114,680 $114,680 | $186,354 $186,354 | $186,354 $186,354 | $186,354 $186,354 | $731,083 $731,083 | $529,909 $529,909 |
Dtr | Improved employee productivity | $4,694,760 $4,694,760 | $10,171,980 $10,171,980 | $16,431,660 $16,431,660 | $16,431,660 $16,431,660 | $16,431,660 $16,431,660 | $64,161,720 $64,161,720 | $46,445,721 $46,445,721 |
Etr | Recovered device residual value | $0 $0 | $0 $0 | $0 $0 | $0 $0 | $801,563 $801,563 | $801,563 $801,563 | $497,707 $497,707 |
Total benefits (risk-adjusted) | $10,315,698 $10,315,698 | $18,563,934 $18,563,934 | $27,906,699 $27,906,699 | $22,870,449 $22,870,449 | $23,672,012 $23,672,012 | $103,328,792 $103,328,792 | $76,005,999 $76,005,999 | |
Evidence and data. According to interviewees, Mac devices were more efficient to provision, required less maintenance and fewer manual updates, and experienced fewer security incidents than other devices, which enabled IT teams to manage more devices per employee. The organizations reduced support and management costs in the following areas:
Base: 242 hardware decision-makers at their
organization
Source: A
commissioned study conducted by Forrester Consulting on behalf of Apple,
March 2024
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. The expected financial impact is subject to risks and variation based on factors including the organization’s:
Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a five-year, risk-adjusted total PV (discounted at 10%) of $7.3 million.
For , this benefit may have a five-year, risk-adjusted total PV of .
The following table shows custom results for .
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||||
---|---|---|---|---|---|---|---|---|---|---|---|
A1 | Average support tickets per PC per year | CompositeComposite | 66 | 66 | 66 | 66 | 66 | ||||
A2 | Percent reduction in support tickets with Mac | Interviews | 60%60% | 60%60% | 60%60% | 60%60% | 60%60% | ||||
A3 | Average cost to resolve tickets per PC | CompositeComposite | $20 $20 | $20 $20 | $20 $20 | $20 $20 | $20 $20 | ||||
A4 | Reduced cost to resolve tickets per Mac | Interviews | 20%20% | 20%20% | 20%20% | 20%20% | 20%20% | ||||
A5 | Support cost per PC | A1*A3 | $120 $120 | $120 $120 | $120 $120 | $120 $120 | $120 $120 | ||||
A6 | Support cost per Mac | A1*(1-A2)*A3* (1-A4) | $38 $38 | $38 $38 | $38 $38 | $38 $38 | $38 $38 | ||||
A7 | Subtotal: Reduced support costs | (A5-A6)*XXt | $307,500 $307,500 | $666,250 $666,250 | $1,076,250 $1,076,250 | $1,076,250 $1,076,250 | $1,076,250 $1,076,250 | ||||
A8 | PCs managed per IT FTE | InterviewsInterviews | 300300 | 300300 | 300300 | 300300 | 300300 | ||||
A9 | Macs managed per IT FTE | InterviewsInterviews | 600600 | 600600 | 600600 | 600600 | 600600 | ||||
A10 | Fully burdened annual compensation for an IT employee | TEI standard TEI standard | $102,410 $102,410 | $102,410 $102,410 | $102,410 $102,410 | $102,410 $102,410 | $102,410 $102,410 | ||||
A11 | IT employee productivity recapture rate | TEI standard | 80%80% | 80%80% | 80%80% | 80%80% | 80%80% | ||||
A12 | Subtotal: Reduced management costs | (XXt/A8-XXt/A9) *A10*A11 | $512,050 $512,050 | $1,109,442 $1,109,442 | $1,792,175 $1,792,175 | $1,792,175 $1,792,175 | $1,792,175 $1,792,175 | ||||
At | Reduced support and management costs | A7+A12 | $819,550 $819,550 | $1,775,692 $1,775,692 | $2,868,425 $2,868,425 | $2,868,425 $2,868,425 | $2,868,425 $2,868,425 | ||||
Risk adjustment | ↓10% | ||||||||||
Atr | Reduced support and management costs (risk-adjusted) | $737,595 $737,595 | $1,598,123 $1,598,123 | $2,581,583 $2,581,583 | $2,581,583 $2,581,583 | $2,581,583 $2,581,583 | |||||
Five-year total: $10,080,465 $10,080,465 | Five-year present value: $7,297,100 $7,297,100 |
Evidence and data. Interviewees said that by purchasing Mac devices, their organizations avoided the cost of the PC devices they would have provided to employees along with the cost of all associated device software. Because Mac devices do not require the additional purchase of an OS license, some of the interviewees’ organizations took advantage of Apple’s automatic OS updates and built-in security features to forego purchasing and deploying endpoint security licenses for Mac devices that they deployed on all PCs.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. The expected financial impact is subject to risks and variation based on factors including the organization’s:
Results. To account for these risks, Forrester adjusted this benefit downward by 15%, yielding a five-year, risk-adjusted total PV (discounted at 10%) of $21.2 million.
For , this benefit may have a five-year, risk-adjusted total PV of .
The following table shows custom results for .
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||||
---|---|---|---|---|---|---|---|---|---|---|---|
B1 | New MacBook Air devices deployed | XX4 | 3,7503,750 | 4,3754,375 | 5,0005,000 | ||||||
B2 | Cost of deployed PC | CompositeComposite | $1,100 $1,100 | $1,100 $1,100 | $1,100 $1,100 | ||||||
B3 | Third-party hardware support contract costs | CompositeComposite | $85 $85 | $85 $85 | $85 $85 | $0 $0 | $0 $0 | ||||
B4 | PC MDM and OS license costs | CompositeComposite | $132 $132 | $132 $132 | $132 $132 | $132 $132 | $132 $132 | ||||
B5 | Security license costs | CompositeComposite | $192 $192 | $192 $192 | $192 $192 | $192 $192 | $192 $192 | ||||
B6 | Subtotal: Avoided hardware and software costs | B1*(B2+B3)+XXt* (B4+B5) | $5,658,750 $5,658,750 | $7,816,875 $7,816,875 | $10,177,500 $10,177,500 | $4,252,500 $4,252,500 | $4,252,500 $4,252,500 | ||||
B7 | Energy costs per PC | CompositeComposite | $15 $15 | $15 $15 | $15 $15 | $15 $15 | $15 $15 | ||||
B8 | Reduced energy costs per Mac | CompositeComposite | 56%56% | 56%56% | 56%56% | 56%56% | 56%56% | ||||
B9 | Employees in office | CompositeComposite | 60%60% | 60%60% | 60%60% | 60%60% | 60%60% | ||||
B10 | Subtotal: Reduced energy costs | XXt*B7*B8*B9 | $18,900 $18,900 | $40,950 $40,950 | $66,150 $66,150 | $66,150 $66,150 | $66,150 $66,150 | ||||
Bt | Reduced and avoided hardware, software, and energy costs | B6+B10 | $5,677,650 $5,677,650 | $7,857,825 $7,857,825 | $10,243,650 $10,243,650 | $4,318,650 $4,318,650 | $4,318,650 $4,318,650 | ||||
Risk adjustment | ↓15% | ||||||||||
Btr | Reduced and avoided hardware, software, and energy costs (risk-adjusted) | $4,826,003 $4,826,003 | $6,679,151 $6,679,151 | $8,707,103 $8,707,103 | $3,670,853 $3,670,853 | $3,670,853 $3,670,853 | |||||
Five-year total: $27,553,961 $27,553,961 | Five-year present value: $21,235,562 $21,235,562 |
Evidence and data. Interviewees cited Apple’s fundamental device architecture, automatic encryption, operating system design and automatic updates, and facilitation of threat detection as contributors to improved overall security of Mac devices. Multiple interviewees pointed to a lower frequency of security incidents on their organization’s Mac devices. Two-thirds of 242 surveyed hardware purchase decision-makers said their organization improved its security management or security posturing by using MacBook Air devices, and they cited an improved ability to detect, respond to, and recover from threats. More than half said their organization reduced the time IT teams spent on compliance and audit activities and decreased the number of security incidents on devices.
Modeling and assumptions. Based on the interviews and Forrester research, Forrester assumes the following about the composite organization:
Risks. The expected financial impact is subject to risks and variation based on factors including the organization’s:
Results. To account for these risks, Forrester adjusted this benefit downward by 20%, yielding a five-year, risk-adjusted total PV (discounted at 10%) of $530,000.
For , this benefit may have a five-year, risk-adjusted total PV of .
The following table shows custom results for .
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||||
---|---|---|---|---|---|---|---|---|---|---|---|
C1 | Likelihood of experiencing one or more breach per year | Forrester research | 89%89% | 89%89% | 89%89% | 89%89% | 89%89% | ||||
C2 | Mean cumulative cost of breaches | Forrester research | $5,065,000 $5,065,000 | $5,065,000 $5,065,000 | $5,065,000 $5,065,000 | $5,065,000 $5,065,000 | $5,065,000 $5,065,000 | ||||
C3 | Percent of breaches originating from external attacks or internal incidents | Forrester research | 71.3%71.3% | 71.3%71.3% | 71.3%71.3% | 71.3%71.3% | 71.3%71.3% | ||||
C4 | Risk exposure from data breaches via external attack or internal incident | C1*C2*C3 | $3,214,097 $3,214,097 | $3,214,097 $3,214,097 | $3,214,097 $3,214,097 | $3,214,097 $3,214,097 | $3,214,097 $3,214,097 | ||||
C5 | Reduced likelihood of data breach via external attack or internal incident with Mac devices | Interviews | 15%15% | 15%15% | 15%15% | 15%15% | 15%15% | ||||
C6 | Percent of breaches originating from lost or stolen assets | Forrester research | 10.2%10.2% | 10.2%10.2% | 10.2%10.2% | 10.2%10.2% | 10.2%10.2% | ||||
C7 | Risk exposure from data breaches via lost or stolen assets | C1*C2*C6 | $459,801 $459,801 | $459,801 $459,801 | $459,801 $459,801 | $459,801 $459,801 | $459,801 $459,801 | ||||
C8 | Reduced likelihood of a data breach via lost or stolen assets with Mac | Interviews | 90%90% | 90%90% | 90%90% | 90%90% | 90%90% | ||||
C9 | Percent of employees using Mac | XXt/XX1 | 8%8% | 16%16% | 26%26% | 26%26% | 26%26% | ||||
Ct | Cost savings from reduced risk of a data breach | (C4*C5+C7*C8) *C9 | $71,675 $71,675 | $143,350 $143,350 | $232,943 $232,943 | $232,943 $232,943 | $232,943 $232,943 | ||||
Risk adjustment | ↓20% | ||||||||||
Ctr | Cost savings from reduced risk of a data breach (risk-adjusted) | $57,340 $57,340 | $114,680 $114,680 | $186,354 $186,354 | $186,354 $186,354 | $186,354 $186,354 | |||||
Five-year total: $731,083 $731,083 | Five-year present value: $529,909 $529,909 |
Evidence and data. Interviewees and surveyed end users highlighted faster device startup, saved time, and improved productivity for employees who chose to switch to Mac devices. They said faster processing speeds, better application reliability and performance, a more intuitive user experience, and a longer battery life all contributed to improving overall employee engagement and productivity. Overall, 70% of surveyed Mac end users reported that using a Mac device at work contributed to higher levels of productivity and 55% said it led to higher satisfaction.
Base: 53 end users with experience using Mac
devices for business at their organization
Source: A commissioned study conducted by
Forrester Consulting on behalf of Apple, March 2024
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. The expected financial impact is subject to risks and variation based on factors including the organization’s:
Results. To account for these risks, Forrester adjusted this benefit downward by 20%, yielding a five-year, risk-adjusted total PV (discounted at 10%) of $46.4 million.
For , this benefit may have a five-year, risk-adjusted total PV of .
The following table shows custom results for .
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||||
---|---|---|---|---|---|---|---|---|---|---|---|
D1 | Time saved monthly per Mac user waiting for device to start up or update (minutes) | Interviews | 4545 | 4545 | 4545 | 4545 | 4545 | ||||
D2 | Time saved monthly per Mac user on issue investigation and resolution (minutes) | Interviews | 5555 | 5555 | 5555 | 5555 | 5555 | ||||
D3 | Fully burdened hourly salary for an employee | TEI standard TEI standard | $42 $42 | $42 $42 | $42 $42 | $42 $42 | $42 $42 | ||||
D4 | End-user productivity recapture rate | TEI standard | 40%40% | 40%40% | 40%40% | 40%40% | 40%40% | ||||
D5 | Subtotal: Savings from time saved due to quicker device startup and issue resolution | XXt*(D1+D2)/60* 12*D3*D4 | $1,260,000 $1,260,000 | $2,730,000 $2,730,000 | $4,410,000 $4,410,000 | $4,410,000 $4,410,000 | $4,410,000 $4,410,000 | ||||
D6 | Fully burdened annual salary for an employee | TEI standard TEI standard | $87,780 $87,780 | $87,780 $87,780 | $87,780 $87,780 | $87,780 $87,780 | $87,780 $87,780 | ||||
D7 | Increased productivity for employees choosing Mac | Interviews | 3.5%3.5% | 3.5%3.5% | 3.5%3.5% | 3.5%3.5% | 3.5%3.5% | ||||
D8 | End-user productivity recapture rate | D4 | 40%40% | 40%40% | 40%40% | 40%40% | 40%40% | ||||
D9 | Subtotal: Value of improved end-user productivity | XXt*D6*D7*D8 | $4,608,450 $4,608,450 | $9,984,975 $9,984,975 | $16,129,575 $16,129,575 | $16,129,575 $16,129,575 | $16,129,575 $16,129,575 | ||||
Dt | Improved employee productivity | D5+D9 | $5,868,450 $5,868,450 | $12,714,975 $12,714,975 | $20,539,575 $20,539,575 | $20,539,575 $20,539,575 | $20,539,575 $20,539,575 | ||||
Risk adjustment | ↓20% | ||||||||||
Dtr | Improved employee productivity (risk-adjusted) | $4,694,760 $4,694,760 | $10,171,980 $10,171,980 | $16,431,660 $16,431,660 | $16,431,660 $16,431,660 | $16,431,660 $16,431,660 | |||||
Five-year total: $64,161,720 $64,161,720 | Five-year present value: $46,445,721 $46,445,721 |
Evidence and data. Interviewees’ organizations had a variety of approaches to device lifetime and recycling or reutilization. Refresh rates ranged from three to five years, though some interviewees said their organization still supported devices that were up to nine years old. Most organizations that utilized both Mac and PC devices standardized both device types onto the same device lifecycle rate. For organizations that purchased their devices and received a residual value for trading them in at the end of their specified lifecycles, the residual valuation depended on device age, technical specifications, and specific agreements between external partners. Interviewees who knew residual values their organization received for device types reported that they received higher amounts for Mac devices than equivalent PCs to the order of 30% of the device cost. The retail CTO told Forrester, “The value after three years of a Mac is still way higher than any [PC] laptop on the market, so it keeps its value.”
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. The expected financial impact is subject to risks and variation based on factors including the organization’s:
Results. To account for these risks, Forrester adjusted this benefit downward by 5%, yielding a five-year, risk-adjusted total PV (discounted at 10%) of $498,000.
For refreshing about 0% of devices per year, this benefit may have a five-year, risk-adjusted total PV of .
The following table shows custom results for .
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||||
---|---|---|---|---|---|---|---|---|---|---|---|
E1 | Average cost per Mac device | CompositeComposite | $0 $0 | $1,299 $1,299 | |||||||
E2 | Residual value of Mac after four years | InterviewsInterviews | 30%30% | 30%30% | 30%30% | 30%30% | 30%30% | ||||
E3 | Recovered value of Mac devices | E1*E2 | $0 $0 | $390 $390 | |||||||
E4 | Average cost per PC | B2 | $0 $0 | $1,100 $1,100 | |||||||
E5 | Residual value of PCs after four years | InterviewsInterviews | 15%15% | 15%15% | 15%15% | 15%15% | 15%15% | ||||
E6 | Recovered value of PCs | E4*E5 | $0 $0 | $165 $165 | |||||||
Et | Recovered device residual value | B1(4 years prior) *(E3-E6) B1(4 years prior) *(E3-E6) | $0 $0 | $0 $0 | $0 $0 | $0 $0 | $843,750 $843,750 | ||||
Risk adjustment | ↓5% | ||||||||||
Etr | Recovered device residual value (risk-adjusted) | $0 $0 | $0 $0 | $0 $0 | $0 $0 | $801,563 $801,563 | |||||
Five-year total: $801,563 $801,563 | Five-year present value: $497,707 $497,707 |
Interviewees mentioned the following additional benefits that their organizations experienced but were not able to quantify:
The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement the use of Mac devices at their organization and later realize additional uses and business opportunities, including:
Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Appendix A ).
The following table shows custom results for .
Ref. | Cost | Initial | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Total | Present Value |
---|---|---|---|---|---|---|---|---|---|
Ftr | Implementation and management labor costs | $243,984 $243,984 | $182,988 $182,988 | $243,984 $243,984 | $243,984 $243,984 | $243,984 $243,984 | $243,984 $243,984 | $1,402,908 $1,402,908 | $1,113,424 $1,113,424 |
Gtr | Hardware and software deployment costs | $0 $0 | $6,682,500 $6,682,500 | $8,687,250 $8,687,250 | $10,840,500 $10,840,500 | $3,118,500 $3,118,500 | $3,118,500 $3,118,500 | $32,447,250 $32,447,250 | $25,465,494 $25,465,494 |
Total costs (risk-adjusted) | $243,984 $243,984 | $6,865,488 $6,865,488 | $8,931,234 $8,931,234 | $11,084,484 $11,084,484 | $3,362,484 $3,362,484 | $3,362,484 $3,362,484 | $33,850,158 $33,850,158 | $26,578,918 $26,578,918 | |
Evidence and data. Interviewees said their organizations incurred labor costs in the following areas:
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. The expected investment is subject to risks and variation based on several factors that may increase costs or extend deployment, including:
Results. To account for these risks, Forrester adjusted this cost upward by 15%, yielding a five-year, risk-adjusted total PV (discounted at 10%) of $1.1 million.
For , these costs may have a five-year, risk-adjusted total PV of .
The following table shows custom results for .
Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
F1 | Internal implementation FTEs | CompositeComposite | 44 | ||||||||||
F2 | Fully burdened hourly compensation for an implementation resource | TEI standard TEI standard | $51 $51 | $51 $51 | $51 $51 | $51 $51 | $51 $51 | $51 $51 | |||||
F3 | Implementation time (weeks) | CompositeComposite | 2626 | ||||||||||
F4 | FTEs who provide ongoing platform support | CompositeComposite | 0 | 1.51.5 | 2.02.0 | 2.02.0 | 2.02.0 | 2.02.0 | |||||
Ft | Implementation and management labor costs | (F1*F2*F3*40) + (F4*F2*2080) | $212,160 $212,160 | $159,120 $159,120 | $212,160 $212,160 | $212,160 $212,160 | $212,160 $212,160 | $212,160 $212,160 | |||||
Risk adjustment | ↑15% | ||||||||||||
Ftr | Implementation and management labor costs (risk-adjusted) | $243,984 $243,984 | $182,988 $182,988 | $243,984 $243,984 | $243,984 $243,984 | $243,984 $243,984 | $243,984 $243,984 | ||||||
Five-year total: $1,402,908 $1,402,908 | Five-year present value: $1,113,424 $1,113,424 |
Evidence and data. With investment in a Mac choice program, the interviewees’ organizations incurred hardware and software costs for Mac devices consisting of the devices themselves, AppleCare, a MDM solution, and the security software installed on the devices.
Modeling and assumptions. Based on the interviews, Forrester assumes the following for the composite organization:
Risks . The expected investment is subject to risks and variation based on several factors that may increase costs, including:
Results. To account for these risks, Forrester adjusted this cost upward by 10%, yielding a five-year, risk-adjusted total PV (discounted at 10%) of $25.5 million.
For , these costs may have a five-year, risk-adjusted total PV of .
The following table shows custom results for .
Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
G1 | New MacBook Air devices deployed | XX4 | 0 | 3,7503,750 | 4,3754,375 | 5,0005,000 | ||||||
G2 | Average cost of a MacBook Air device | E1 | 0 | $1,299 $1,299 | $1,299 $1,299 | $1,299 $1,299 | ||||||
G3 | Subtotal: Cost of new Mac devices | G1*G2 | 0 | $4,871,250 $4,871,250 | $5,683,125 $5,683,125 | $6,495,000 $6,495,000 | $0 $0 | $0 $0 | ||||
G4 | Cumulative MacBook Air devices used by employees | XXt | 0 | 3,7503,750 | 8,1258,125 | 13,12513,125 | 13,12513,125 | 13,12513,125 | ||||
G5 | Average cost of AppleCare per Mac | CompositeComposite | 0 | $105 $105 | $105 $105 | $105 $105 | ||||||
G6 | Third-party MDM cost per Mac | CompositeComposite | 0 | $120 $120 | $120 $120 | $120 $120 | $120 $120 | $120 $120 | ||||
G7 | Security software licensing | CompositeComposite | 0 | $96 $96 | $96 $96 | $96 $96 | $96 $96 | $96 $96 | ||||
G8 | Subtotal: AppleCare, MDM, and software costs | G1*G5+G4* (G6+G7 ) | 0 | $1,203,750 $1,203,750 | $2,214,375 $2,214,375 | $3,360,000 $3,360,000 | $2,835,000 $2,835,000 | $2,835,000 $2,835,000 | ||||
Gt | Hardware and software deployment costs | G3+G8 | $0 $0 | $6,075,000 $6,075,000 | $7,897,500 $7,897,500 | $9,855,000 $9,855,000 | $2,835,000 $2,835,000 | $2,835,000 $2,835,000 | ||||
Risk adjustment | ↑10% | |||||||||||
Gtr | Hardware and software deployment costs (risk-adjusted) | $0 $0 | $6,682,500 $6,682,500 | $8,687,250 $8,687,250 | $10,840,500 $10,840,500 | $3,118,500 $3,118,500 | $3,118,500 $3,118,500 | |||||
Five-year total: $32,447,250 $32,447,250 | Five-year present value: $25,465,494 $25,465,494 |
Based on the interviewees and Forrester research, the following table compares the five-year costs of a MacBook Air versus the five-year costs of a PC for the composite organization. The cost of a MacBook Air is $3,273, while the cost of a PC is $3,820, which is a difference of $547. These costs do not include the costs of infrastructure updates, implementation, or provisioning.
For the cost of a MacBook Air is estimated to $0 , while the cost of a PC is estimated to $0 , which is a difference of $0 . These costs do not include the costs of infrastructure updates, implementation, or provisioning.
The following table shows custom results for .
METRIC | MacBook Air | PC |
---|---|---|
Device cost | $1,299$1,299 | $1,100$1,100 |
Support contract | $105$105 | $85$85 |
Incremental security software | $400$400 | $801$801 |
Incremental MDM/OS license | $500$500 | $550$550 |
Service ticket resolution | $158$158 | $500$500 |
Additional IT management | $713$713 | $1,422$1,422 |
Energy costs | $29$29 | $63$63 |
(Device residual value) | ($266)($266) | ($113)($113) |
Risk adjustment | $355$355 | ($588)($588) |
Total 5-year cost: | $3,273$3,273 | $3,820$3,820 |
The financial results calculated in the Benefits and Costs sections can be used to determine the ROI, NPV, and payback period for the composite organization’s investment. Forrester assumes a yearly discount rate of 10% for this analysis.
These risk-adjusted ROI, NPV, and payback period values are determined by applying risk-adjustment factors to the unadjusted results in each Benefit and Cost section.
The following table shows custom results for .
Initial | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Total | Present Value | |
---|---|---|---|---|---|---|---|---|
Total costs | ($243,984)($243,984) | ($6,865,488)($6,865,488) | ($8,931,234)($8,931,234) | ($11,084,484)($11,084,484) | ($3,362,484)($3,362,484) | ($3,362,484)($3,362,484) | ($33,850,158)($33,850,158) | ($26,578,918)($26,578,918) |
Total benefits | $0 $0 | $10,315,698 $10,315,698 | $18,563,934 $18,563,934 | $27,906,699 $27,906,699 | $22,870,449 $22,870,449 | $23,672,012 $23,672,012 | $103,328,792 $103,328,792 | $76,005,999 $76,005,999 |
Net benefits | ($243,984)($243,984) | $3,450,210 $3,450,210 | $9,632,700 $9,632,700 | $16,822,215 $16,822,215 | $19,507,965 $19,507,965 | $20,309,528 $20,309,528 | $69,478,634 $69,478,634 | $49,427,081 $49,427,081 |
ROI | 186%186% | |||||||
Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists vendors in communicating the value proposition of their products and services to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of IT initiatives to both senior management and other key business stakeholders.
Benefits represent the value delivered to the business by the product. The TEI methodology places equal weight on the measure of benefits and the measure of costs, allowing for a full examination of the effect of the technology on the entire organization.
Costs consider all expenses necessary to deliver the proposed value, or benefits, of the product. The cost category within TEI captures incremental costs over the existing environment for ongoing costs associated with the solution.
Flexibility represents the strategic value that can be obtained for some future additional investment building on top of the initial investment already made. Having the ability to capture that benefit has a PV that can be estimated.
Risks measure the uncertainty of benefit and cost estimates given: 1) the likelihood that estimates will meet original projections and 2) the likelihood that estimates will be tracked over time. TEI risk factors are based on “triangular distribution.”
The initial investment column contains costs incurred at “time 0” or at the beginning of Year 1 that are not discounted. All other cash flows are discounted using the discount rate at the end of the year. PV calculations are calculated for each total cost and benefit estimate. NPV calculations in the summary tables are the sum of the initial investment and the discounted cash flows in each year. Sums and present value calculations of the Total Benefits, Total Costs, and Cash Flow tables may not exactly add up, as some rounding may occur.
Role | Industry | Number of employees | Mac usage |
---|---|---|---|
VP of clinical systems | Healthcare | 19,000 | Mixed, role-dependent |
CTO | Financial services | 3,500 | All Mac devices |
IT superintendent | Financial services | 3,500 | All Mac devices |
Architect | Retail | 34,000 | Device choice program |
Senior MacOS engineer | Healthcare | 12,000 | Device choice program |
Director of IT infrastructure | Foods manufacturing and distribution | 50,000 | Mixed, role-dependent |
Global head of Apple partnership | Technology services | 250,000 | Mixed, role-dependent |
CTO | Retail | 1,000 | All Mac devices |
Principal product manager | Food and beverage | 250,000 | Device choice program |
Lead systems analyst | Food and beverage | 250,000 | Device choice program |
Director of mobile product and innovation | Financial services | 80,000 | Device choice program |
Base: 242 hardware decision-makers and 53 end
users with experience using Mac devices for business at their
organization
Source: A
commissioned TEI study conducted by Forrester Consulting on behalf of Apple,
March 2024
Base: 242 hardware decision-makers and 53 end
users with experience using Mac devices for business at their
organization
Source: A
commissioned TEI study conducted by Forrester Consulting on behalf of Apple,
March 2024
Base: 242 hardware decision-makers and 53 end
users with experience using Mac devices for business at their
organization
Source: A
commissioned TEI study conducted by Forrester Consulting on behalf of Apple,
March 2024
Base: 53 end users with experience using
MacBook Air at their organization
Source: A
commissioned TEI study conducted by Forrester Consulting on behalf of Apple,
March 2024
Related Forrester Research
The State Of End-User Experience Management, 2024 , Forrester Research, Inc., February 28, 2024.
The Forrester Wave™: Unified Endpoint Management, Q4 2023 , Forrester Research, Inc., November 20, 2023.
Assess Your End-User Experience Management Maturity , Forrester Research, Inc., April 10, 2023.
1 Source: The End-User Experience Management Solutions Landscape, Q1 2024 , Forrester Research, Inc., March 1, 2024.
2 Source: Save IT Operating Costs With End-User Experience Management , Forrester Research, Inc., May 2, 2023.
3 Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists vendors in communicating the value proposition of their products and services to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of IT initiatives to both senior management and other key business stakeholders.
4 Source: Forrester Analytics Business Technographics Security Survey, 2023
5 Ibid.
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