Alcatel-Lucent Managed Business Network - Manual (Page 11)

Alcatel-Lucent Managed Business Networking Solution 11
Containing OPEX with the Alcatel-Lucent 5620
Service Aware Manager
Forrester Consulting examined the potential ROI service providers can realize
by deploying the Alcatel-Lucent 5620 Service Aware Manager (SAM). Based
on interviews with four existing customers, Forrester constructed a TEI frame-
work for a composite organization and associated ROI analysis to illustrate
the financial impact areas. The study yielded the following key findings from
deploying the Alcatel-Lucent 5620 SAM as an element, network and service
management solution:
table 1: forrester’s study of the alcatel-lucent 5620 saM, risk-adjusted roi
suMMary financial results original estiMate risK-adJusted
ROI 90% 73%
Payback period (years) 0.8 0.9
Total costs (PV) ($1,403,370) ($1,444,528)
Total benefits (PV) $2,440,295 $2,269,086
Total (NPV) $1,265,207 $1,052,840
• ROI – As shown in Table 1, the risk-adjusted ROI for the composite
company is 73 percent, with a break-even point (payback period) of
10 months after deployment.
• Benefits –The implementation showed productivity gains in both provisioning
and technical support, cost avoidance in script maintenance and strategic
flexibility in new service deployments.
• Costs – Implementation expenses included: software license and maintenance
fees, hardware costs and the internal labor required for implementation and
ongoing maintenance.