Alcatel-Lucent Managed Business Network User Manual

Page 11

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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.

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