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1 Ecnmic Value Validatin Summary Bx Online File Sharing & C llabr atin f r Enterprise IT MAY Enterprise Strategy Grup, Inc. All Rights Reserved.

2 EVV REPORT: Bx Online File Sharing & Cllabratin fr Enterprise IT 2 Abut This Summary This paper is a summary versin f the ESG Ecnmic Value Validatin Reprt: Bx Online File Sharing & Cllabratin fr Enterprise IT. Please refer t the full reprt fr cmplete details n the prject methdlgy, results, and analysis. Prject Overview Enterprise Strategy Grup ( ESG ) was engaged by Bx, Inc. ( Bx ) t develp a detailed Ecnmic Value Validatin (EVV) analysis designed t measure the value f a Bx deplyment cmpared t a cnventinal enterprise file-sharing and cllabratin slutin specifically, a cmbinatin f VPN-prtected file strage, npremises cllabratin and web-enabled dcument repsitry sftware, and crrespndence. This analysis which is supprted by a cmbinatin f in-depth interviews with current Bx custmers, additinal ESG market research, and ESG s wn hands-n usage f the Bx service seeks t prvide prspective custmers with a cmprehensive picture f the direct and indirect csts and benefits they shuld cnsider when evaluating Bx t replace r augment an existing cllabratin strategy. This summary paper includes the high-level findings f ESG s Ecnmic Value Validatin analysis, while highlighting sme f the key benefits reprted by Bx custmers during ESG s interviews with these rganizatins. Custmer Benefits Summary Based n ESG s market research and Ecnmic Value Validatin analysis, Bx fr Enterprise prmises a number f benefits t bth IT and business cnstituents, including: Faster, mre effective, and secure cllabratin Bx custmers recgnize the benefits f having users wrk tgether n ne shared versin f a file withut the incnvenience, versin cnflicts, and IT verhead assciated with cllabratin via traditinal methds such as VPN-prtected netwrked file shares and crrespndence. Custmer Insights: We used t have emplyees waiting n files t be saved in the shared flders, and then sending ut s t ntify r send the files t thers nw that we use Bx, everyne has equal access t the same file at the same time. Our VPN was despised by users thrughut the rganizatin. It was the mst cmplained-abut part f ur envirnment. With Bx, emplyees n lnger have t wrry abut that fr file access. Increased team prductivity, acrss and between rganizatins Bx custmers reprt that they have seen significant reductins in the time it takes users t cmplete cmmn file sharing and cllabratin tasks. These savings enable emplyees (plus external cnstituents such as business partners, cntractrs, and vendrs) t be mre prductive cmpleting prjects faster and fcusing n the activities that add the mst value t the business. Custmer Insights: We estimate that we are saving minutes per user per week by using Bx. Our cre cmpetency is drug develpment. With Bx, we can cncentrate n wrking mre effectively with partners n the drug discvery and develpment prcess instead f cnstantly dealing with IT issues. Nt nly can we find things quicker, we nw can allw ur partners and clients t access shared files in real time. 2012, The Enterprise Strategy Grup, Inc. All Rights Reserved.

3 EVV REPORT: Bx Online File Sharing & Cllabratin fr Enterprise IT 3 Future-ready wrkfrce enablement As a clud-based service with built-in native mbile device supprt, Bx ffers users increased mbility and wrkspace flexibility due t simple and reliable mbile access frm multiple endpint devices. Custmers als reprt that Bx is helping t facilitate the transitin t brader clud cmputing usage, thanks t integratin with ther clud-based applicatins and services. Custmer Insights: Because it is s easy t get users up and running and accessing the service frm different devices, Bx enabled us t implement a bring yur wn device plicy fr emplyee smartphnes and tablets. Bx has assisted in ur ability t transitin frm expensive traditinal enterprise applicatins and mve t simpler, mre affrdable SaaS-based apps. A great example is ur use f Salesfrce.cm, which has direct integratin t Bx files. Imprved IT service levels with lwer csts Because Bx is deplyed via the clud, users can recver multiple versins f files, even in the event f an accidental delete, sftware file crruptin, endpint device failure, r significant utage. Custmers reprted significant savings n strage infrastructure thrugh the eliminatin f npremises file shares and -related strage capacity reductins. Cst avidance was achieved thrugh maintaining (as ppsed t expanding) existing VPN envirnments and alleviating the need t purchase multiple sftware packages t address crprate-wide cllabratin challenges. Operatinally, custmers can reduce administrative csts assciated with n-premises infrastructure management (file server data backup and recvery, system installatin, upgrades, etc). Bx users als reprt significant reductins in the time required fr management tasks such as prvisining users, terminating users, and creating cllabratin grups. Custmer Insights: Our city had a majr pwer utage last year. With the cmbinatin f Bx and mbile cnnectivity, ur emplyees were able t keep wrking. We estimated that 80% t 90% f ur strage capacity requirements were cming frm attachments. Thse attachments are nw being replaced by shared files n Bx. Nw that we have Bx, we d little if any file strage-related capacity planning, nging file share maintenance, r ther strage-related planning. Crprate risk mitigatin Custmers interviewed by ESG als spke f the risks that arise when individual emplyees use unapprved persnal nline file sharing accunts rather than a standard enterprise service. Since such accunts belng t the individual subscriber, crprate IT has n visibility int the cmpany data that is being stred ffsite, r wh may be accessing it. Even wrse, when that user leaves the cmpany, the data in the accunt ges with them. Custmers pting fr an enterprise-grade service such as Bx fr Enterprise can mitigate the risk assciated with data lss, theft, and/r misuse that can arise frm uncrdinated rgue use f cllabratin tls nt frmally sanctined by the rganizatin. Custmer Insights: 100% f the nline file sharing users we tracked dwn said they needed files n their ipad and that is why they were using rgue applicatins that hadn t yet been apprved by IT. 2012, The Enterprise Strategy Grup, Inc. All Rights Reserved.

4 EVV REPORT: Bx Online File Sharing & Cllabratin fr Enterprise IT 4 Ecnmic Value Summary ESG develped a cmprehensive financial mdel designed t accurately qualify and quantify the relative csts and benefits f a Bx enterprise slutin vs. a traditinal file sharing infrastructure cnsisting f n-premises cllabratin sftware, netwrk-attached strage (NAS), and virtual private netwrk (VPN) access. Fr the purpses f this analysis, the mdel assumptins were tuned t a static default scenari representing a small midmarket rganizatin (r a department within a larger enterprise) cnsisting f 500 ttal knwledge wrkers, grwing at a rate f 30% (150 users) per year. The remaining details fr the default scenari can be fund in Table 1 1. Table 1. Default Scenari Assumptins Input Default Assumptin Data Surce / Cmments Number f users 500 N/A Annual grwth rate in number f users 30% Default assumptin infrmed by ESG interviews with Bx custmers. 2 Percent f users using smartphnes fr file access 75% ESG best practice assumptin based n current smartphne penetratin rates Percent f users using tablet PCs fr file access 50% ESG best practice assumptin based n current tablet penetratin rates Backup schedule fr files Weekly ESG best practice assumptin Average number f cllabratrs per Bx user 7 ESG interviews with Bx custmers, Bx custmer usage data Average number f flders per Bx user 6 ESG interviews with Bx custmers, Bx custmer usage data Average number f shared files per Bx user 55 Bx custmer usage data Average number f active sessins annually per ESG interviews with Bx custmers, Bx 200 Bx user custmer usage data Surce: Enterprise Strategy Grup, Based n ESG s interviews with Bx custmers and ur review f Bx custmer usage data, ESG believes these assumptins t be a reasnable starting pint fr analysis. Hwever, thse same interviews and data als suggest that in sme cases, these underlying assumptins may be cnservative. Fr example, cllabratin-centric rganizatins with a prepnderance f lcal and remte knwledge wrkers may have a greater percentage f users reliant n mbile devices fr file access, a larger number f files per user, and mre cmplex wrkflws that intrduce business partners and suppliers. All f these factrs wuld have a significant impact n the net ecnmic value f a Bx slutin and, in ESG s mdel, wuld likely result in a higher psitive return-n-investment (ROI). With the mdel parameters tuned t the default assumptins in Table 1, ESG s analysis estimates that fr a 500- user Bx implementatin, reduced infrastructure csts plus the benefits achieved frm increased user prductivity and IT efficiency greatly ffset any assciated csts, resulting in an 85% ROI ver three years (see Table 2). As such, a 500-user Bx slutin will pay fr itself in 2.4 mnths. 1 Please nte that the data and cnclusins presented in this reprt reflect the utput f ESG s ecnmic value analysis based n the specific use case and default scenari assumptins mdeled specifically fr this reprt. ESG acknwledges that changes t these assumptins will lead t a different set f results and as such, advises IT prfessinals t use this reprt as ne validatin pint in a cmprehensive financial analysis prcess prir t making a purchase decisin. 2 While the grwth rate in the number f knwledge wrkers using a Bx service will vary based n the specific custmer in questin, ESG believes this is a reasnable and ptentially cnservative default assumptin based n hw current Bx custmers have deplyed and expanded the use f the service within their rganizatins. It is nt uncmmn fr custmers t start a Bx implementatin by deplying the service t a relatively limited number f users initially, and then expanding access (ften rapidly) t ther parts f the rganizatin. Fr example, ESG interviewed a Bx custmer that has grwn frm 200 users t mre than 1,200 in just ne year. 2012, The Enterprise Strategy Grup, Inc. All Rights Reserved.

5 EVV REPORT: Bx Online File Sharing & Cllabratin fr Enterprise IT 5 Table 2. Ecnmic Value Summary fr a 500-User Organizatin Scenari Annual ROI Payback Perid (years) Net Present Value (NPV) Annual TCO Annual Benefit Bx nline file sharing 85% 0.20 $194,601 $157,869 $292,298 Traditinal file sharing -54% 5+ $(261,642) $195,960 $90,029 Surce: Enterprise Strategy Grup, 2012 Knwing that larger rganizatins will als be seeking t deply new cllabratin slutins, ESG cmpleted its Ecnmic Value Validatin analysis fr 2,500- and 5,000-emplyee scenaris. The resulting three-year ROI figures fr these scenaris were 148% and 212%, respectively. Figure 1 highlights the annualized csts and benefits fr the 500-user default scenari. As this figure demnstrates, Bx custmers can benefit frm reduced and r deferred n-premises infrastructure csts. Hwever, the primary ecnmic value f Bx ver traditinal file sharing slutins is in the area f imprved user prductivity i.e., the time saved by emplyees by using Bx fr cmmn file sharing and cllabratin tasks, expressed in bth time and the financial value f that time. ESG calculates that a 500-user Bx custmer can expect t realize $259,574 in ttal year-1 user prductivity gains, a significant percentage f the ttal annualized benefits f $292,298. These immediate prductivity benefits shuld be seriusly cnsidered by rganizatins lking fr rapid time t value by migrating file sharing and cllabratin applicatins t the clud. Figure 1. Annual TCO and Benefit, Bx Online File Sharing vs. Traditinal File Sharing $350,000 $300,000 Annual TCO and Benefit, Bx Online File Sharing vs. Traditinal File Sharing Annual TCO Annual benefit $292,298 $250,000 $200,000 $150,000 $100,000 $157,869 $195,960 $90,029 $50,000 $- Bx nline file sharing Traditinal file sharing Surce: Enterprise Strategy Grup, Ptential Areas fr Additinal Savings and Benefits with Bx fr Enterprise In develping the financial mdel baseline scenari, ESG fcused n quantifying the csts and benefits assciated with relatively cmmn file sharing and cllabratin tasks. As such, the mdel des nt accunt fr all pssible areas f cst savings and prductivity gains that custmers may experience with an nline cllabratin slutin such as Bx. Sme examples f additinal benefits cited by Bx custmers that are nt accunted fr in this analysis are: the reductin r eliminatin f file and print server infrastructure at remte and branch ffices (ROBOs); reduced print and shipping csts frm distributing crprate materials thrugh Bx instead f via hard cpy; and additinal prductivity imprvements thrugh using Bx t build custm mbile apps that expedite sales cycles, cmplete transactins faster r enable higher custmer satisfactin. Prspective custmers shuld als cnsider these and ther ptential benefits when evaluating an nline file sharing and cllabratin slutin. 2012, The Enterprise Strategy Grup, Inc. All Rights Reserved.

6 EVV REPORT: Bx Online File Sharing & Cllabratin fr Enterprise IT 6 Explaining the Value fr IT and Business Cnstituents Based n ESG s market research, and Ecnmic Value Validatin analysis, Bx prmises a number f benefits t bth IT and business cnstituents. Benefits t Executive Management: Increase team prductivity: i.e., the time saved by emplyees and prject teams by using Bx fr cmmn file sharing and cllabratin tasks, expressed in bth time and the financial value f that time Transfer file sharing capital expenditures t predictable mnthly subscriptin Prtect the business against lst revenue due t n-premises hardware and emplyee device failures Mitigate data lss, theft, and/r misuse risks that arise frm uncrdinated rgue use f cllabratin tls nt frmally sanctined by the rganizatin Benefits t IT, Strage, Netwrk, and Server Administratin Managers: Reduced hardware, sftware, maintenance, and supprt csts assciated with n-premises strage infrastructure, VPN envirnments, and traditinal cllabratin sftware Reduced administrative csts assciated with n-premises infrastructure management, data backup and recvery, and system installatin and upgrades Reduced help desk requests thanks t increased ability fr users t find, access, and retrieve files, as well as self-administer cllabrative grups and assciated permissins Gain speed and business agility by facilitating the transitin t brader clud cmputing usage, thanks t integratin with ther clud-based applicatins and services Benefits t End-Users/Knwledge Wrkers: Easy access t shared files frm multiple endpint devices Faster and easier cllabratin and versin cntrl: ne cpy f the truth ne shared versin f a file rather than multiple cnflicting ed versins Increased mbility and wrkspace flexibility due t simple and reliable mbile access Reclaim time assciated with cmmn file management tasks t fcus n adding value t the business The Bigger Truth Pressured by the prliferatin f new endpint devices, the increase in mbile wrkers, and a business emphasis n internal cllabratin fr innvatin and prductivity gains, IT rganizatins must find new slutins t enable their emplyees ability t share and access infrmatin. Online file sharing and cllabratin services such as Bx prvide IT rganizatins with a valuable alternative t traditinal slutins. ESG s Ecnmic Value Validatin analysis cnfirms that Bx will nt nly better enable the file access and cllabratin demands f the multi-device mbile wrkfrce, but will als result in significant financial benefits and a psitive return n investment fr crprate custmers. While certain cst savings may be realized ver time as varius IT infrastructure cmpnents are phased ut in favr f clud-based services such as Bx, custmers can begin t realize immediate day-1 benefits in areas such as enhanced, secure cllabratin, increased team prductivity, and imprved business cntinuity and risk mitigatin. 2012, The Enterprise Strategy Grup, Inc. All Rights Reserved.

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