Appendix Scenario 1 – Switching HR from dedicated IT to public SaaS
Example firm, food & beverage, $10b revenue, 60,000 employees, 30 countries
Cost of switching Implementation costs Hardware purchase Data migration
# of FTE consultants FTE rate Total cost
System customization Server virtualization Training Headcount reduction
# of FTE consultants FTE rate Total cost
# of FTE consultants FTE rate Total cost
# of FTE consultants FTE rate Total cost # of FTE FTE rate
Redundancy percentage
Total headcount reduction cost Total implementation cost
Public cloud costs Capital costs
Operational costs Support Subscription fee
Hardware purchase Electricity # of FTE FTE rate
Total support cost Total cost of ownership Legacy solution Total lifetime cost
Dedicated IT costs Capital costs License fee
Hardware purchase Implementation
# of FTE consultants FTE rate Total cost
Operational costs License fee
Hardware purchase Electricity Support
# of FTE consultants FTE rate
Total support cost Total cost of ownership Year 1 Year 2 Year 3 Year 4 Year 5
$0 $0 25
$90,000
$2,250,000 0
$90,000 $0 0
$90,000 $0 14
$60,000 $840,000 15
$70,000 50%
$525,000 $3,615,000 $0
$0 $0 0
$90,000 $0 0
$90,000 $0 0
$90,000 $0 0
$60,000 $0 0
$70,000 50% $0 $0
$0
$0 $0 5
$0 $0 0
$90,000 $0 0
$90,000 $0 0
$90,000 $0 0
$60,000 $0 0
$70,000 50% $0 $0
$0
$0 $0 5
$0 $0 0
$90,000 $0 0
$90,000 $0 0
$90,000 $0 0
$60,000 $0 0
$70,000 50% $0 $0
$0
$0 $0 5
$0 $0 0
$90,000 $0 0
$90,000 $0 0
$90,000 $0 0
$60,000 $0 0
$70,000 50% $0 $0
$0
$0 $1,100,000 $1,166,000 $1,235,960 $1,310,118 $0 $0 0
$70,000 $0
$2,579,134 $12,406,212
$70,000 $350,000
$70,000 $350,000
$70,000 $350,000
$0 $0 5
$70,000 $350,000
$0 $1,450,000 $1,516,000 $1,585,960 $1,660,118
$5,000,000 $0 $0 50
$90,000 $0 $200,000 $70,000
$0 $0 $0 15
$90,000 $4,500,000 $1,350,000 $0 $200,000 20 $70,000
$0 $0 $0 0
$90,000 $0
$0 $200,000 20 $70,000
$0 $0 $0 0
$90,000 $0
$0 $200,000 20 $70,000
$0 $0 $0 0
$90,000 $0
$0 $200,000
$979,134 $1,076,753 $1,176,271 $1,273,244 $1,364,588 20
20 $70,000
$1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000 $12,079,134 $4,026,753 $2,776,271 $2,873,244 $2,964,588
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