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:
•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.
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 |
| | |
Alcatel-Lucent Managed Business Networking Solution 11