Eliminate $2.6 Million in Legacy Integration Costs With Boomi

February 14, 2019 Pragnya Paramita

Two IT managers working in data center with overlay of an integrated network web.

 

IT leaders are under growing pressure to find funding for digital transformation initiatives and new business efforts. Modernizing costly legacy integration systems is one key area where Boomi helps.

According to a new Forrester Consulting study, enterprises eliminate $2.6 million in legacy integration costs over three years by moving from on-premise integration middleware to Dell Boomi’s cloud-native integration platform.

In earlier posts, we summarized how enterprises net a 307 percent ROI over three years with Boomi, and how they gain $3.4 million in incremental revenue and gross profit.

Want to learn more about how Boomi's cloud-native, low-code platform helps organizations run more efficiently and generate new revenues?

Please attend on February 26 our upcoming webinar,  “The Total Economic Impact™ of the Dell Boomi Platform,” or read the report.

Results are based on Forrester’s interviews with six Boomi customers in different industries, creating a composite organization with $10 billion in revenue and 30,000 employees. Overall, Forrester found that its composite organization realized $4.8 million in net present value payback over three years by moving to Boomi.

In terms of cost, Forrester breaks down the $2.6 million savings in two ways: 1) by moving to the cloud, and 2) by avoiding the cost of legacy integration software.

Cloud Migration Eliminates $1.5 Million in Costs

First, enterprises cut $1.5 million in present value costs over three years by transitioning to the cloud, in the process reducing infrastructure and management expenses. The study shows that this type of migration in a larger enterprise eliminates approximately 100 on-premise servers that supported legacy integration tools.

“Organizations who chose to fully migrate to the cloud were able to shut down the servers for the legacy integration solutions and reassigned the IT staff dedicated to infrastructure management,” the study explains. “Organizations who did not migrate to the cloud and instead used the on-premise Dell Boomi Atom reduced their infrastructure footprint.”

In addition, organizations interviewed by Forrester were able to reassign three full-time IT personnel that managed integration-related legacy infrastructure to value-add projects. Additional savings were captured in software, physical facilities and maintenance.

Forrester noted that its analysis didn’t account for the cost of on-premise middleware upgrades, typically done every three years. IT leaders weighing a move to cloud integration “are advised to consider the costs of upgrades for on-premise tools when considering a migration to iPaaS (integration platform as a service),” the study says.

$1.1 Million in Avoided Legacy Software Costs

Organizations interviewed by Forrester for the study used several legacy middleware tools that required extensive maintenance, in addition to license costs. And as Forrester notes, “The tools did not talk to each other and frequently several systems were needed to complete an integration project.”

By moving to Boomi, organizations avoided $1.1 million in present value costs over three years by eliminating legacy licensing fees and dramatically reducing the percentage of IT staff time spent on maintenance, Forrester found.

In contrast to the $2.6 million in legacy integration costs eliminated, Forrester determined that its composite organization would incur $952,934 in Boomi present value licensing fees and $609,579 in present value implementation and maintenance costs, for a total of $1.6 million over three years.

Licensing fees are based on Forrester's theoretically $10 billion composite organization progressively expanding its usage to include all capabilities of Boomi’s unified platform.

Want to learn more about how Boomi's cloud-native, low-code platform helps organizations run more efficiently and generate new revenues?

Please attend on February 26 our upcoming webinar,  “The Total Economic Impact™ of the Dell Boomi Platform,” or read the report.

About the Author

Pragnya Paramita is a senior product marketing manager for Dell Boomi. She supports Boomi Flow, Boomi Master Data Hub and unified platform solutions.

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