MAY 2023
All organizations, large and small, have critical assets to protect, including customer data and differentiating intellectual property that will cause business damage or market setback if stolen.1 As organizations accelerate DevOps practices and deploy applications faster, security teams must manage network access requests and application connectivity requirements in an efficient and secure manner to meet the business needs of greater agility and productivity.
Tufin is a network security policy management solution that drives business agility and protects against threats by automating security management processes. With Tufin, organizations can efficiently implement network access changes, consistently enforce security policies across network environments, and systematically apply network security policy during provisioning processes. Tufin’s security policy automation capabilities decrease the risk of breach and noncompliance, reduce costs, improve productivity for IT teams, and accelerate business value.
Tufin commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying Tufin.2 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of Tufin on their organizations.
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed five representatives with experience using Tufin. For the purposes of this study, Forrester aggregated the interviewees’ experiences and combined the results into a single composite organization with annual revenues of $15 billion, 200 firewalls, and strict compliance requirements.
Prior to using Tufin, these interviewees noted how their organizations relied on spreadsheets and manual processes to manage security policies and network change processes. Prior approaches left their organizations with burdensome levels of manual work for security and network staff, lack of visibility into vulnerabilities and connectivity errors, and difficulty responding to audit and reporting requests. These limitations led to increased risk of breach and high costs to manage network security and compliance activities.
After the investment in Tufin, the interviewees’ organizations automated network security policy management activities, enabling network changes to be analyzed and implemented faster, security policies to be applied consistently across network environments, connectivity management efficiencies, and easier response to audit and reporting requests. Key results from the investment include reduced risk of breach and noncompliance, security policy management labor savings, audit and reporting efficiencies, and acceleration of application and service provisioning.
Consulting Team: Kara Luk, Nick Ferrif
Quantified benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:
Tufin centralizes and automates network security policy management for the composite organization, improving operational efficiency for security teams on activities including network access evaluation and implementation and rule cleanup. Tufin also enables easier reporting and audit preparedness by documenting adherence to regulations and internal policies and tracking network change history, approvals, and exceptions. The ability to automatically generate security attestation and other requested documentation eliminates the need to manually collect information and organize reports for auditors or other parties, saving security team effort. Over three years, the labor cost savings are worth $5 million.
Tufin reduces the probability and impact of a successful breach. With automated risk analysis capabilities for requested network changes, the composite organization’s security teams can better enforce security policies and compliance requirements. Additionally, Tufin identifies risky or unused rules or network objects for cleanup and decommissioning. Improved risk analysis and rule lifecycle management enable the composite’s security teams to reduce attack vectors and improve overall security posture. Over three years, the reduced risk exposure is worth over $3.1 million in avoided breach costs and user downtime for the composite organization.
Tufin enables faster provisioning for applications and services through configuration management capabilities. Better visibility into network topology and security configurations help the composite organization’s networks operations personnel and IT analysts identify configuration and security requirements earlier in the provisioning process and with less manual labor, reducing errors and rework that impact time to business value. Over three years, the labor efficiency is worth over $715,000.
Unquantified benefits. Benefits that provide value for the composite organization but are not quantified in this study include:
SLAs and efforts to implement network changes are significantly reduced, deploying applications faster and accelerating business value delivery.
Automation empowers security staff to handle growing workloads without additional overhead needs. The security team members now focus on higher-value, strategic work over repetitive rule management activities.
Improved reporting capabilities and compliance posture reduce the frequency of third-party audits and associated costs.
Costs. Three-year, risk-adjusted PV costs for the composite organization include:
Licensing costs for Tufin are based on the number of firewall and cloud virtual machine (VM) units. Over three years, the composite organization incurs $3.1 million in licensing costs.
Over three years, implementation, ongoing management, and training costs total $523,100 for the composite organization.
The representative interviews and financial analysis found that a composite organization experiences benefits of $8.83M over three years versus costs of $3.62M, adding up to a net present value (NPV) of $5.21M and an ROI of 144%.
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 Tufin can have on an organization.
Interviewed Tufin stakeholders and Forrester analysts to gather data relative to Tufin.
Interviewed five representatives at four organizations using Tufin to obtain data with respect to costs, benefits, and risks.
Designed a composite organization based on characteristics of the interviewees’ organizations.
Constructed a financial model representative of the interviews 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 Tufin 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 Tufin.
Tufin 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.
Tufin provided the customer names for the interviews but did not participate in the interviews.
Role | Industry | Region | Employees | Revenue |
---|---|---|---|---|
Director of cybersecurity engineering | Financial services | US HQ Global operations | 26,500 | $29.3B USD |
Network security lead | Financial services | Canada HQ Canadian operations | 57,000 | $20.3B CAD |
Network security advisor | Financial services | Canada HQ Canadian operations | 57,000 | $20.3B CAD |
Product owner of security orchestration | Telecommunications | EMEA HQ EMEA operations | 16,000 – 20,000 | €11.4B |
Technical lead for security | Financial services | US HQ US operations | 650 | $329M USD |
Before adopting Tufin, the interviewees’ organizations lacked sophisticated tools for security policy management and network change processes. The organizations relied on tribal knowledge and spreadsheets to define and manage access policies and manual processes to assess and implement network access requests. Dealing with growing, complex network environments, the interviewees’ organizations lacked visibility and workflow automation, leading to weak security posture and slow, labor-intensive policy management processes.
The interviewees noted how their organizations struggled with common challenges, including:
Interviewees shared that the process of requesting, assessing, designing, and implementing network access changes was highly manual without automated workflows and a centralized view of access and security configurations. Interviewees cited SLAs for access changes ranging from two to four weeks. As a result, security policy management was a bottleneck that slowed down provisioning and application deployment.
Interviewees noted how limited visibility into their organizations’ network topography and security configurations created challenges for connectivity management and adherence to security policies.
The network security lead at a financial services organization shared that IT analysts had to manually analyze paths against firewalls and security policies during the application provisioning process. Lack of visibility often caused errors and connectivity issues, which led to rework and lengthened development time. The network security lead said: “Without a single pane of glass for the network topology, it was difficult for the IT analysts to put in a firewall request and be sure that it would cover the rules need. When they put in a request, it would take a week or so for implementation before they could be allowed to attempt their application or development. And then, if it failed because of a firewall, they would need to wait again.”
The technical lead for security at a financial services organization said: “We didn’t know if we were violating company policies. We often opened up access more than we should have because we weren’t aware of a policy or it was misunderstood. We often thought that a change was okay but didn’t know that it actually needed an exception request or an approval.”
Security engineers had to build and enforce rules based on their knowledge of growingly complex network environments and security policies without the aid of automated workflows. Increasing network complexity and access request volumes paired with a lack of visibility and automation made it difficult to carry out these activities in a consistent and agile manner. The product owner of security orchestration at a telecommunications company said: “We didn’t have transparency, so [rule enforcement] depended on the engineer that implemented a change. If the engineer was not well educated, they may not recognize that it is a violation and allow the change.”
The director of cybersecurity engineering at a financial services organization said: “We weren’t being consistent because, well, people aren’t consistent when they write rules and put stuff in. Many rules were less than ideal, so we’d have to go back and manually rework them to be tighter.”
Reporting on network change activity, security enforcement, and vulnerabilities created a further burden on security teams and made it difficult to respond to auditors or other parties in a timely manner. For example, the technical lead for security at a financial services organization said: “We could not generate a report in a fast manner. It would take us days to get a report out to the auditors. It was a painful, manual process.”
The interviewees’ organizations searched for a solution that allowed them to:
The interviewees noted that they evaluated multiple vendors and chose Tufin due to the maturity of the offering. For example, the director of cybersecurity engineering at a financial organization found Tufin to have superior and flexible workflow design and preferable APIs. Additionally, the technical lead for security at a financial services organization said that Tufin best fit their organization’s compliance reporting needs.
Based on the interviews, 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 five interviewees, and it is used to present the aggregate financial analysis in the next section. The composite organization has the following characteristics:
The composite organization is a global company that is headquartered in the US with annual revenues of $15 billion and a total of 25,000 employees. The organization has 25 network security engineers and 20 NetOps engineers that work on provisioning. Additionally, the organization must uphold payment card industry (PCI), Service Organization Control Type 2 (SOC 2), and HIPAA compliance.
The composite organization has 200 firewalls, which it uses to enforce network segmentation. Before Tufin, security policies, rule configurations, and network change requests were managed through spreadsheets, providing lack of sophisticated visibility and leading to manual workflows. The composite adopts Tufin to improve enforcement of security policies and compliance requirements; manage more granular levels of segmentation; improve visibility and audit readiness; and automate network change and rule management processes.
Ref. | Benefit | Year 1 | Year 2 | Year 3 | Total | Present Value |
---|---|---|---|---|---|---|
Atr | Security policy management and audit cost savings | $2,023,789 | $2,023,789 | $2,023,789 | $6,071,366 | $5,032,863 |
Btr | Reduced risk of breach savings | $1,240,775 | $1,240,775 | $1,240,775 | $3,722,325 | $3,085,623 |
Ctr | Application connectivity management cost savings | $287,508 | $287,508 | $287,508 | $862,524 | $714,990 |
Total benefits (risk-adjusted) | $3,552,072 | $3,552,072 | $3,552,072 | $10,656,215 | $8,833,476 |
Evidence and data. Interviewees noted how Tufin centralized and automated network security policy management processes, improving operational efficiency for security teams around activities including network change evaluation and implementation and rule cleanup. By shifting these activities to automated workflows, the security teams reallocated resources to focus on higher-value, strategic work. Interviewees also highlighted that Tufin enabled easier reporting and audit preparedness. Tufin documented adherence to regulations and internal policies and tracked change history, approvals, and exceptions, eliminating the need to collect information and organize reports for auditors or other parties and saving security team effort.
The interviewees highlighted how time to implement access changes or rule modifications for connectivity was significantly reduced with the move to Tufin.
The director of cybersecurity engineering at a financial services organization shared that Tufin automated risk analysis and path design processes for requested access changes, which was previously executed manually. As a result, the time to implement access changes was reduced from 2 hours for typical changes and up to 2.5 days for more complex situations, down to 30 minutes. Similarly, the network security lead at a financial services organization noted that it took 2 to 3 hours less to evaluate and implement changes, saving significant time across the 600 requests received per month.
The product owner of security orchestration at a telecommunications organization shared that it would have been difficult to handle its security requirements without Tufin. Through leveraging risk analysis and target selection capabilities, the organization automatically assessed proposed changes against its unified security policy and design secure network paths, reducing the time to implement a change from two weeks to 15 minutes. They said: “The USP and security policy check are beneficial. Additionally, the automated target selection is aware of the full topology of our network and can suggest where the firewall rules or enforcement points must be implemented.”
The technical lead for security at a financial services organization shared that it took days of effort for security engineers to generate reports for auditors. With Tufin, their organization could leverage a central console for monitoring and documenting compliance with industry regulations and internal policies across its network. Additionally, Tufin provided an audit trail to track and report on change history. They said: “Instead of having to go through the entire environment and extracting a rule to provide compliance to an auditor, we can quickly generate a report. There’s an audit trail as well to see which engineer is doing what and whether we have a properly documented chance process in place.”
Similarly, the head of cybersecurity engineering at a financial services organization utilized Tufin to respond to audit requests, reducing over 40 hours of manual effort for each audit down to 20 to 30 minutes. They shared: “We used to have one person spend a week of their life, twice a year producing audit evidence for compliance. Now, Tufin auto-collects those reports and we provide it to the auditors. It’s moved from 40-plus hours of collecting data down to an auto-report that takes 20 to 30 minutes to produce.”
The director of cybersecurity engineering at a financial services organization also highlighted that Tufin aided their team in investigating and reporting on vulnerabilities, reducing the effort per vulnerability from a range of 8 to 12 hours to 45 minutes: “We would have to go through two different gateways and built a report with Splunk. I would say it probably would have taken us 8 if not 12 hours to collate all of that and figure out the flows and configuration. Reducing a whole day or 12 hours down to less than an hour is great.”
Modeling and assumptions. Forrester assumes the following for the composite organization:
Risks. Forrester understands that these results may not be representative of all experiences and may vary depending on the following factors:
Results. To account for these risks, Forrester adjusted this benefit downward by 5%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $5 million.
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | ||
---|---|---|---|---|---|---|---|
A1 | Number of network changes | Composite | 5,000 | 5,000 | 5,000 | ||
A2 | Hours per network change prior to Tufin | Interviews | 4 | 4 | 4 | ||
A3 | Hours per network change with Tufin | Interviews | 0.25 | 0.25 | 0.25 | ||
A4 | Reduction in effort for network changes (rounded) | (A2-A3)/A2 | 94% | 94% | 94% | ||
A5 | Hourly network security engineer fully burdened salary | TEI Standard | $88 | $88 | $88 | ||
A6 | Subtotal: Network change cost savings | A1*A2*A4*A5 | $1,654,400 | $1,654,400 | $1,654,400 | ||
A7 | Number of network security engineers | Composite | 25 | 25 | 25 | ||
A8 | Percentage of time spent on ongoing rule maintenance | Interviews | 10% | 10% | 10% | ||
A9 | Reduction in effort for ongoing rule maintenance | Interviews | 85% | 85% | 85% | ||
A10 | Subtotal: Rule maintenance cost savings | 2080 hours*A5*A7*A8*A9 | $388,960 | $388,960 | $388,960 | ||
A11 | Network security engineer FTEs working on audit preparation and reporting | Interviews | 0.5 | 0.5 | 0.5 | ||
A12 | Audit preparation and reporting efficiency gain | Interviews | 95% | 95% | 95% | ||
A13 | Subtotal: Audit preparation and reporting cost savings | 2080*A5*A11*A8 | $86,944 | $86,944 | $86,944 | ||
At | Security policy management and audit cost savings | A6+A10+A13 | $2,130,304 | $2,130,304 | $2,130,304 | ||
Risk adjustment | ↓5% | ||||||
Atr | Security policy management and audit cost savings (risk-adjusted) | $2,023,789 | $2,023,789 | $2,023,789 | |||
Three-year total: $6,071,366 | Three-year present value: $5,032,863 | ||||||
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Evidence and data. Interviewees shared that Tufin reduced the probability and impact of a successful breach. With automated risk analysis capabilities, security teams gained visibility into requested network changes and their impact on security posture, improving their ability to uphold corporate security policies and compliance requirements. Additionally, Tufin provided a means to identify risky and unused rules or network objects for cleanup and decommissioning. With better capabilities to manage risk analysis and rule lifecycle management, the organizations reduced attack vectors and improved overall security posture.
Modeling and assumptions. Forrester assumes the following for the composite organization:
Risks. Forrester understands that these results may not be representative of all experiences and may vary depending on the following factors:
Results. o account for these risks, Forrester adjusted this benefit downward by 15%, yielding a three-year, risk-adjusted total PV of $3.1 million.
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | ||
---|---|---|---|---|---|---|---|
B1 | Average number of breaches per year | Forrester research | 2.5 | 2.5 | 2.5 | ||
B2 | Average potential cost of breach, excluding internal user downtime | Forrester research | $654,846 | $654,846 | $654,846 | ||
B3 | Percentage of unpatched vulnerabilities that cause breach | Industry research | 60% | 60% | 60% | ||
B4 | Reduced risk of breach with Tufin due to improved vulnerability management | Interviews | 80% | 80% | 80% | ||
B5 | Avoided costs of remediation, customer resolution, fines, brand rebuild, and all other external-facing costs (rounded) | B1*B3*B2*B4 | $785,815 | $785,815 | $785,815 | ||
B6 | Number of internal business users | Composite | 22,500 | 22,500 | 22,500 | ||
B7 | Hourly business user fully burdened salary | TEI standard | $52 | $52 | $52 | ||
B8 | Hours of diminished internal user productivity hours per breach | Forrester research | 4 | 4 | 4 | ||
B9 | Average percentage of employees impacted per breach | TEI standard | 12% | 12% | 12% | ||
B10 | Cost of reduced internal productivity | B1*B3*B4*B6*B7*B8*B9 | $673,920 | $673,920 | $673,920 | ||
Bt | Reduced risk of breach savings | B5+B10 | $1,459,735 | $1,459,735 | $1,459,735 | ||
Risk adjustment | ↓15% | ||||||
Btr | Reduced risk of breach savings (risk-adjusted) | $1,240,775 | $1,240,775 | $1,240,775 | |||
Three-year total: $3,722,325 | Three-year present value: $3,085,623 | ||||||
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Evidence and data. Interviewees noted that Tufin enabled faster provisioning for applications and services by driving configuration management efficiencies. With better visibility into network topology and security configurations, network operations personnel and IT analysts could identify configuration requirements earlier in the provisioning process and with less manual labor, reducing errors and rework that had previously impacted time to business value.
Modeling and assumptions. Forrester assumes the following for the composite organization:
Risks. Forrester understands that these results may not be representative of all experiences and may vary depending on the following factors:
Results. To account for these risks, Forrester adjusted this benefit downward by 5%, yielding a three-year, risk-adjusted total PV of $715,000.
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |||
---|---|---|---|---|---|---|---|---|
C1 | NetOps engineers | Composite | 20 | 20 | 20 | |||
C2 | Percentage of time spent on application connectivity management | Assumption | 10% | 10% | 10% | |||
C3 | Application connectivity management time savings with Tufin | Interviews | 75% | 75% | 75% | |||
C4 | Hourly NetOps engineer fully burdened salary | TEI Standard | $97 | $97 | $97 | |||
Ct | Application connectivity management cost savings | 2,080 hours*C1*C2*C3*C4 | $302,640 | $302,640 | $302,640 | |||
Risk adjustment | ↓5% | |||||||
Ctr | Application connectivity management cost savings (risk-adjusted) | $287,508 | $287,508 | $287,508 | ||||
Three-year total: $862,524 | Three-year present value: $714,990 | |||||||
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Interviewees mentioned the following additional benefits that their organizations experienced but were not able to quantify:
Interviewees noted that they significantly reduced effort and SLAs for implementing network changes, enabling their organizations to deploy applications or services faster and accelerate delivery of business value. For example, the director of cybersecurity engineering at a financial services organization reduced their SLA from seven to four days. Similarly, the technical lead for security at a financial services organization reduced SLAs from weeks down to days: “Before Tufin, firewall implementations were taking weeks to a month. Now with Tufin, I can deploy it in minutes as soon as the request is received and we can help the company deploy applications faster.”
Interviewees also shared that automation enabled their organizations to effectively handle growing workloads without needing to add additional staff and security team members could focus on more strategic work. The product owner for security orchestration at a financial services organization noted that their organizations would have needed to hire eight to ten additional FTEs to manage its security requirements and policies without the automation provided by Tufin. The technical lead for security at a financial services organization highlighted that Tufin enabled their organization to shift security policy management activities to junior security resources, enabling senior team members to focus on larger strategic projects. Additionally, the director of cybersecurity engineering at a financial services organization said that staff could refocus on analysis work instead of rule writing.
The technical lead for security at a financial services organization shared that Tufin reduced third-party auditor costs. With better reporting capabilities and improved compliance posture, their organization could more easily provide information to auditors and the frequency of third- party audit requests was reduced, decreasing associated costs by 50%.
The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement Tufin and later realize additional uses and business opportunities, including additional value through integrations. Several interviewees had either integrated or were in the process of integrating Tufin with tools such as IT service management (ITSM) solutions or intelligence portals to drive additional use cases. For example, the technical lead for security at a financial services organization said, “We are working on getting Tufin integrated with [our service management tool], so we can keep track of how many changes there are and management can execute the approval workflows in there and be able to track the process.”
Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Appendix A.)
Ref. | Costs | Initial | Year 1 | Year 2 | Year 3 | Total | Present Value |
---|---|---|---|---|---|---|---|
Dtr | Licensing fees | $0 | $1,244,880 | $1,244,880 | $1,244,880 | $3,734,640 | $3,095,832 |
Etr | Implementation, ongoing management, and training fees | $271,463 | $101,201 | $101,201 | $101,201 | $575,066 | $523,135 |
Total costs (risk-adjusted) | $271,463 | $1,346,081 | $1,346,081 | $1,346,081 | $4,309,706 | $3,618,967 |
Evidence and data. Licensing costs for Tufin were based on the number of firewall and cloud VM units. Interviewees noted that their organizations utilized Tufin’s SecureTrack+ and SecureChange+ solutions.
Modeling and assumptions. Forrester assumes the following for the composite organization:
Risks. Forrester understands that these results may not be representative of all experiences and may vary depending on the following factors:
Results. To account for these risks, Forrester adjusted this cost upward by 5%, yielding a three- year, risk-adjusted total PV (discounted at 10%) of $3.1 million.
Ref | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | |
---|---|---|---|---|---|---|---|
D1 | Tufin licensing fees | Interviews | $0 | $1,185,600 | $1,185,600 | $1,185,600 | |
Dt | Licensing fees | D1 | $0 | $1,185,600 | $1,185,600 | $1,185,600 | |
Risk adjustment | ↑5% | ||||||
Dtr | Licensing fees (risk-adjusted) | $0 | $1,244,880 | $1,244,880 | $1,244,880 | ||
Three-year total: $3,734,640 | Three-year present value: $3,095,832 | ||||||
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Evidence and data. The interviewees’ organizations incurred costs associated with implementation, ongoing management, and training:
Modeling and assumptions. Forrester assumes the following for the composite organization:
Risks. Forrester understands that these results may not be representative of all experiences and may vary depending on the following factors:
Results. To account for these risks, Forrester adjusted this cost upward by 5%, yielding a three- year, risk-adjusted total PV of $523,100.
Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | |
---|---|---|---|---|---|---|---|
E1 | Months to implement Tufin | Interviews | 6 | ||||
E2 | Number of network security engineer resources dedicated to implementation | Interviews | 4 | ||||
E3 | Percent of workload dedicated to implementation | Interviews | 50% | ||||
E4 | Annual network security engineer fully burdened salary | TEI Standard | $182,250 | $182,250 | $182,250 | $182,250 | |
E5 | Professional services costs | Interviews | $50,000 | ||||
E6 | Subtotal: Implementation costs | E1*E2*E3*E4/12+E5 | $232,250 | ||||
E7 | Number of network security engineer FTEs dedicated to ongoing management | Interviews | 0.5 | 0.5 | 0.5 | ||
E8 | Subtotal: Ongoing management costs | E4*E7 | $91,125 | $91,125 | $91,125 | ||
E9 | Number of network security engineers participating in training | Interviews | 25 | 5 | 5 | 5 | |
E10 | Hours of training | Interviews | 12 | 12 | 12 | 12 | |
E11 | Subtotal: training costs (rounded) | E4/2080*E9*E10 | $26,286 | $5,257 | $5,257 | $5,257 | |
Et | Implementation, ongoing management, and training fees | E6+E8+E11 | $258,536 | $96,382 | $96,382 | $96,382 | |
Risk adjustment | ↑5% | ||||||
Etr | Implementation, ongoing management, and training fees (risk-adjusted) | $271,463 | $101,201 | $101,201 | $101,201 | ||
Three-year total: $575,066 | Three-year present value: $523,135 | ||||||
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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.
Initial | Year 1 | Year 2 | Year 3 | Total | Present Value | |
---|---|---|---|---|---|---|
Total costs | ($271,463) | ($1,346,081) | ($1,346,081) | ($1,346,081) | ($4,309,706) | ($3,618,967) |
Total beneifts | $0 | $3,552,072 | $3,552,072 | $3,552,072 | $10,656,215 | $8,833,476 |
Net benefits | ($271,463) | $2,205,990 | $2,205,991 | $2,205,991 | $6,346,509 | $5,214,509 |
ROI | 144% | |||||
Payback period (months) | <6 | |||||
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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.
1 Source: “The Forrester Tech TideTM: Zero Trust Threat Prevention, Q4 2022,” Forrester Research, Inc., October 21, 2022.
2 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.
3 Source: Forrester Consulting Cost Of A Cybersecurity Breach Survey, Q1 2021. Forrester Consulting conducted an online survey of 351 cybersecurity leaders at global enterprises in the US, the UK, Canada, Germany, and Australia. Survey participants included managers, directors, VPs, and C-level executives who are responsible for cybersecurity decision-making, operations, and reporting. Questions provided to the participants sought to evaluate leaders’ cybersecurity strategies and any breaches that have occurred within their organizations. Respondents opted into the survey via a third-party research panel, which fielded the survey on behalf of Forrester in November 2020.
4 Source: “Costs and Consequences of Gaps in Vulnerability Response,” Ponemon Institute, 2019.
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