The Business Value of Dropbox for Business

Sponsored by: Dropbox Authors: Maureen Fleming Matthew Marden November 2015 The Business Value of Dropbox for Business EXECUTIVE SUMMARY An IDC analysis of organizations adopting Dropbox for Business shows high end-user satisfaction and a strong return on investment (ROI) impacting both end-user productivity Business Value Highlights Average benefits per 100 users over 5 years $1.092M Average return on investment per 100 users 860% User productivity related to file and document management increased 2.1% The number of lost files decreased 57.1% Surveyed employees organizations are using Dropbox for Business. 31% and IT infrastructure savings. Key findings include:» Enterprises initially adopt Dropbox for Business to improve collaboration among business teams, to improve the security of content created and shared collaboratively, to lower the cost of storage, and as part of a mobile initiative. For Dropbox for Business customers, this translates to an average annual business benefit through increased employee productivity of $247,400 per 100 users.» Dropbox for Business customers are increasing the productivity of sales team members, improving sales processes, and facilitating the closing of deals. Other customers said they have been able to accelerate the development of revenue-generating services. In total, IDC projects that these companies are capturing an average of $138,300 more revenue per year per 100 Dropbox for Business users.» As adoption grows, IT teams begin experimenting with changing how they support many additional activities, including replacing email attachments, Windows-based server file systems, FTP servers, shared drives, and VPNs. This translates to decreasing infrastructure costs, improved productivity of IT operations, and improved customer service. Dropbox for Business customers realized an average annual benefit of $56,300 per 100 users in IT staff productivity increases and IT infrastructure cost reduction. Document #252352 2015 IDC. www.idc.com Page 1

In This White Paper This white paper presents IDC s analysis of the business value that eight surveyed organizations are achieving with Dropbox for Business. IDC interviewed these organizations from May to July 2014 to ask them about their experiences with Dropbox s enterprise-level sync and share solution. These customers are generally smaller to medium-sized enterprises, with an average of 346 employees, although the largest interviewed customer is a 1,200-employee business unit of a 6,500-employee enterprise. This medium-sized, highly regulated business unit was charged with learning about and spearheading the use of file sync and share services across the enterprise. Interviewees represent a variety of industries and are headquartered in the United States, Germany, and Australia. Table 1 provides an aggregated profile of the eight customers interviewed for this white paper. TABLE 1 Demographics of Interviewed Organizations Average Average number of employees 346 Average number of IT staff 8 Average number of internal IT users 201 Average number of Dropbox 109 for Business users Average percentage of employees 31 using Dropbox for Business Industry Region Professional services, construction, human resources, crowd sourcing, social media, manufacturing, retail United States, Germany, Australia Source: IDC, 2014 Most of these organizations were not new to Dropbox when they began using Dropbox for Business; most transitioned at least some employees from the use of Dropbox Pro or Free Dropbox accounts. Methodology Overview IDC designed its interviews with these organizations to obtain quantitative and qualitative information about their use of Dropbox for Business. IDC used the interviews to determine the financial impact of their use of Dropbox for Business. IDC uses a discounted cash flow Document #252352 2015 IDC. www.idc.com Page 2

methodology to calculate the ROI and payback period. ROI is the ratio of the net present value (NPV) and discounted investment. The payback period is the point at which cumulative benefits equal the total investment up until that time. Note: All numbers in this document may not be exact due to rounding. Situation Overview From the introduction of cloud file hosting services in 2007, which allowed anyone to store files and access them across any of their computers, workers began quietly using file sync and share services for work. From the introduction of cloud file hosting services in 2007, which allowed anyone to store files and access them across any of their computers, workers began quietly using file sync and share services for work. They also began inviting coworkers, contractors, and partners to share folders and files, which began proliferating the use of these services in the workplace. Usage further accelerated as mobile devices began to be used more extensively for work. With this viral grassroots adoption, business and IT management formally began to learn about file sync and share services and why they were so popular in the workplace. They also began centralizing policies about adoption and how these services can be used at work. Today, file sync and share usage at work is a global phenomenon. To understand adoption and usage at work, IDC conducted a survey on behalf of Dropbox in early 2013, examining U.S. enterprises with 1,000 or more employees. From this survey, we learned that end users in 48% of enterprises were regularly using file sync and share at work. There was also a shift from grassroots to a more organized and centralized approach. Of the regular users in the survey, 50% indicated that the service was installed for them by the IT organization. Since then, formal adoption in business has accelerated as services tailored for enterprise use have become more mature. This follows both cloud and mobile adoption patterns, where even heavily regulated industries are shifting applications and infrastructure to cloud and programmatically supporting mobile. In many cases, file sync and share services are becoming the cloud file system for these initiatives. Dropbox Overview Dropbox is the largest provider of file sync and share services measured by the adoption of both consumers and business users. IDC estimates that Dropbox is also the largest provider measured by spending in consumer and business segments. Dropbox offers two tiers of service for individual users, and with these versions, end users manage their own accounts. Dropbox for Business is the enterprise version and provides many capabilities for administering on behalf of many end users. All three tiers are used in the Document #252352 2015 IDC. www.idc.com Page 3

workplace. Each tier builds from the foundational version of Dropbox. Dropbox Basic service is offered at no charge. Key features include:» Cross-device sync» Ability to share files with friends, family, and coworkers» Secure access and encryption of files stored on Dropbox and during transmission» Efficient sync infrastructure» 2GB of storage Key features include 1TB of storage, file sharing with coworkers who are able to sync to their devices, ability to set passwords and expiration dates and manage sharing permissions, and remote wipe of Dropbox files when a device is lost or stolen. Dropbox Pro is the lowest tier of paid subscription. At work, end users are able to manage their own accounts and share files with teams consisting of coworkers and outside contractors, partners, and customers. Key features include 1TB of storage, file sharing with coworkers who are able to sync to their devices, ability to set passwords and expiration dates and manage sharing permissions, and remote wipe of Dropbox files when a device is lost or stolen. Dropbox for Business includes all features of Basic and Pro and adds features that improve the administration of end users on behalf of the enterprise, increases security controls for devices, and provides richer end-user capabilities. Key features include:» Many administrative features that make it easier for an enterprise to manage Dropbox on behalf of groups of users, including access controls through the use of Active Directory, support of single sign-on using identity service providers, account transfers for end users de-provisioned from Dropbox» Visibility and usage reporting» Support for business and personal Dropbox use, creating a needed separation of content for workers using their own devices, with workers able to store their business content in a business Dropbox and their personal content in their own Dropbox, accessible from the same application» User management features that include permanent access to recover deleted files and previous versions of files and two-step authentication for extra protection of a file Business Value of Dropbox for Business Dropbox for Business customers interviewed by IDC for this study follow a relatively consistent progression in workplace adoption that we have seen across the market. Document #252352 2015 IDC. www.idc.com Page 4

The top reasons for adoption in the workplace include:» Supporting end-user efforts to improve collaboration and productivity through the use of file sync and share» Improving security, control, and visibility into the use and sharing of content- and filebased data compared with email, thumb drives, and other mechanisms for sharing inside and outside the organization» Lowering the cost of storage» Using as part of a mobile initiative As adoption grows in an organization, IT begins to experiment more and departments and teams begin to adopt in ways that are specific to their jobs. Examples include: End users know where to find information, whereas prior to the adoption of Dropbox for Business, they sometimes spent a surprisingly large amount of their day simply looking for content.» Improving processes and collaboration around shared folder structures. End users know where to find information, whereas prior to the adoption of Dropbox for Business, they sometimes spent a surprisingly large amount of their day simply looking for content. End users are also spending less time recovering from mistakes caused by accidentally using obsolete material. This is especially true among workers in sales and customer communications.» Improving recoverability when PCs and mobile devices are lost and stolen or break. Because IT provides a loaner when a PC is in for repair or a replacement for a lost device, end users gain rapid access to their content and can begin working almost immediately.» Replacing FTP services and offline methods of updating and synchronizing files. Benefits include improved delivery reliability and faster cycle times as end users are able to deliver larger files over a network, whereas prior to the adoption of Dropbox for Business, they relied on courier services.» Collaborating with partners using file sync and share. Before the adoption of Dropbox for Business, partners would gain access to shared drives via VPNs, but now they are able to access shared content from the sync and share service. IT costs are lowered because of the reduced need for VPNs, and the administrative cost of managing and supporting VPN use by third parties virtually disappears.» Reducing email volumes. Email volume is reduced especially related to sending attachments to share new versions of content as behavior around collaboration shifts to reflect the use of the sync and share service. Document #252352 2015 IDC. www.idc.com Page 5

Financial Benefits Analysis IDC aggregated the data collected during its interviews to measure the financial impact of the use of Dropbox for Business on these organizations. IDC projects that these customers are achieving per annum benefits worth an average of $316,400 per 100 Dropbox for Business users over five years (see Figure 1). These benefits fall into three main categories:» Higher employee productivity, especially for field and mobile workers: Workers save time accessing files and documents and can better do their jobs by having timely and easy access to the most up-to-date versions of their content. Time savings result in substantial employee productivity gains, which IDC quantifies as being worth an average of $261,200 per 100 Dropbox for Business users per year over five years.» Increased IT staff productivity: IT staffs save time on administrative areas that have been displaced by the adoption of Dropbox for Business. They are also able to provide end users with more IT functionality without adding more employees. IDC calculates that this translates to an average productivity increase and time savings value of $43,600 per 100 Dropbox for Business users per year over five years.» Lower IT infrastructure costs: Organizations avoid datacenter-related and other shipping and storage costs. IDC projects that organizations are saving an average of $11,600 per 100 Dropbox for Business customers per year over five years. FIGURE 1 Average Annual Benefits per 100 Dropbox for Business Users $261,200 $316,400 Total: $316,400 per 100 Dropbox for Business users $43,600 $11,600 Business productivity benefits IT staff productivity benefits IT infrastructure cost reductions Total average annual benefits Source: IDC, 2014 Document #252352 2015 IDC. www.idc.com Page 6

Dropbox for Business Delivers Higher Employee Productivity Every Dropbox for Business customer interviewed for this study achieved time savings and higher user productivity. For these customers, the benefit of higher employee productivity took one of several forms, including:» Increased user efficiency and productivity» Business-specific productivity gains» Ability to generate more revenue or decrease revenue-related cycle times These benefits are spelled out in Table 2. In total, IDC calculates that Dropbox for Business customers interviewed for this white paper will achieve user productivity and revenue gains worth an annual average of $261,200 per 100 Dropbox for Business users over five years. TABLE 2 Business Productivity and Revenue Benefits per 100 Dropbox for Business Users Improved business productivity Average productivity increase document management 2.1% Value of improved productivity document management $163,100 Value of improved productivity other $84,300 Revenue enhancements Additional revenue from improved operations $138,300 Operating margin 10.0% Annual operating margin increase $13,800 Total business productivity and revenue gains $261,200 Source: IDC, 2014 Increased User Efficiency and Productivity The core benefit of Dropbox for Business is providing users with timely access to updated files and documents without regard to their physical location. Without this access, mobile and field workers can spend substantial amounts of time every day enduring inefficiently working Document #252352 2015 IDC. www.idc.com Page 7

through VPNs to access work that may or may not have changed from the previous day. All workers spend unproductive time searching for files across the different systems that store them. When teams collaborate, each member often has to search his or her email to find the most recent drafts of content, especially in preparing for meetings. File sync and share centralizes files and folders, effectively creating a virtual location where all related team members can go to find content regardless of where an employee is located and which device the employee wants to use to access the content. For organizations using Dropbox for Business, this translates to time savings of up to hours per day of productive time for their employees. Enterprises have adopted many systems designed to centralize content, including both content creation and content consumption. But they typically restricted the use of these assets to employees and optimized access for employees at work inside the firewall. Many of the interviewed customers said they use Dropbox for Business in the field and with customers and partners. This type of use is quite common across file sync and share services overall. Each interviewed customer referenced specific time savings achieved with Dropbox for Business (see Table 3). TABLE 3 Examples of Organization-Specific Document Management Time Savings with Dropbox for Business Benefit with Dropbox for Business Organization 1 Organization 2 Organization 3 Organization 4 Organization 5 Organization 6 Organization 7 Organization 8 Six hours per week per person not spent looking for the right business files Eight hours per month per person not spent logging into a remote server One to three hours per week per person not spent looking for the right files One hour per day per person not spent logging in through VPN Three to four hours a day across Dropbox for Business user base not spent on file transfers 150 200 hours a month across Dropbox for Business user base of lost access to data avoided 30 minutes per day not spent looking for files Two hours per new employee saved during onboarding process Source: IDC, 2014 Document #252352 2015 IDC. www.idc.com Page 8

Interviewees also provided examples of how employees have become more productive with Dropbox for Business because they have timely access to needed files and data. Interviewees also provided examples of how employees have become more productive with Dropbox for Business because they have timely access to needed files and data. Also, because employees have confidence in Dropbox for Business, they are more likely to use it than their legacy solutions; this improved willingness to use helps break down information silos that form when employees are unwilling to put files in shared storage environments or unable to access the files they need. Customers provided a number of examples of how they are achieving higher end-user productivity:» Simple, shared data: Dropbox increases our productivity by close to 10% by eliminating data loss and enabling simple, shared data. When you take your sales force and increase its productivity by 10%, that s your bottom line.» Improved team collaboration: Our business development group has always had a need to have access to the documents they need, to be aware of where the documents are, and to collaborate worldwide without fussing with email. They can now work 100% of their time and not 80%, which is what they were doing before Dropbox.» Anywhere, anytime access to documents: If Dropbox were to cease to exist, per user, I guess I would lose 30 minutes a day in productivity. It s something to that tune; on some days, it s much more than that.» Replacing email for partner collaboration: Historically, the information with our partners was shared by email. Now we can create a document in Dropbox and share the folder so everyone now has access to the most current content. That usually saves time on conference calls and meetings and development and implementation activities. Business-Specific Productivity Gains Customers also reported that they leverage Dropbox for Business to drive their business strategies, especially when their business models require the timely and secure flow of information to and from field and mobile workers. Several organizations reported that by enabling such workers, Dropbox for Business helped them achieve higher employee utilization and even capture more revenue. One company noted that Dropbox for Business improved the reliability of file transfer and allowed research teams to spend less time in the field in potentially unstable countries. Examples of additional company-specific benefits from using Dropbox for Business include: Document #252352 2015 IDC. www.idc.com Page 9

» Consulting company with worldwide operations: Dropbox has helped enable us to place our people in-country where they can get close to the customer because they no longer need to be close to the servers to get their jobs done. In addition to the savings in not having to redo work, it s cutting so much time out of our production cycle that we are realizing our revenue in this calendar year instead of next calendar year.» Commercial construction company: Our managers go to their job sites and run their projects. Dropbox lessens the time they need to come to the office for communications, and yet they are 100% on top of things all day long with updated information. For a vertical like construction where a lot of things happen in the field, it s important.» Staffing efficiency: We were able to create a new role, called super managers, who manage everything related to a project even from the field. We no longer need a counterpart in headquarters. That has increased our productivity and reduced staff time requirements absolutely. Ability to Generate More Revenue and Improve Revenue Cycle Times Several interviewed organizations said that they are capturing more revenue with Dropbox for Business by increasing the productivity of sales team members, improving sales processes, and facilitating the closing of deals. Other customers said they have been able to accelerate the development of revenue-generating services. In total, IDC projects that these companies are capturing an average of $138,300 more revenue per year per 100 Dropbox for Business users. Examples of Dropbox for Business having a positive impact on revenue include:» Sales team productivity: If sales team members are getting an extra 30 minutes to communicate with clients, you re adding back, call it, 5% of your day on average. We set sales quotas based on what people are attaining; if everybody is achieving more because they have 5% more in their day, we would probably end up raising quotas a little bit.» Facilitating closing of deal: I know of one case where we were able to close a contract even though our guy had a systems failure, but we were able to pull the data out of Dropbox for another rep to finish up the thing, and we ended up finishing a contract for $3.5 million.» Efficient reseller network: We started reselling products in Latin America and other regions. Our reseller relationships with those firms are optimized by sharing Dropbox folders with them in each region. Therefore, we re able to share and swap files, essentially replicating what we do in the United States with our sales team with those companies [partners] in Brazil, Mexico, and Turkey, for example. Document #252352 2015 IDC. www.idc.com Page 10

Dropbox for Business Decreases IT Costs What often begins as an initiative to improve end-user productivity through the adoption of Dropbox for Business shifts to greater cross-enterprise efficiency and direct cost savings on the IT infrastructure side, with many organizations able to realize benefits by driving down the cost of storage, shared drives, and PC backup and driving down the use of VPNs and FTP. Beyond the efficiency and business staff productivity benefits, infrastructure changes through the adoption of Dropbox translate to lower spending on hardware, software, and IT administration. IT Staff Productivity Gains Customers report that the ease of use of Dropbox for Business helps them make their IT staffs more productive by increasing IT functionality without needing to add commensurate IT staff resources. Examples of time savings include:» Recovery of files when a hard drive crashes, less urgency in getting the end user up and running, and automated recovery of files when the user chooses to sync all contentrelated folders» For files of less than 5GB, file sync and share services are far more reliable than FTP, lowering the burden of supporting end users when they experience problems sending or receiving large files using FTP» Spending less time on patches, updates, and other activities tied to administering the infrastructure that was replaced through Dropbox for Business adoption Dropbox for Business allows enterprises to redeploy IT staff resources to more strategic, higher-value projects, which are constantly competing with day-to-day responsibilities for IT staff time. IDC projects that these organizations are achieving IT staff time savings and productivity gains worth an average of $43,600 per year per 100 Dropbox for Business users over five years (see Figure 2). Examples of increased IT staff productivity include:» Less expensive recoverability: By having that security blanket [centralized storage on Dropbox], it greatly enhanced the value to individual employees that they control what they have up there and they knew it was safe and available to them if they dropped a notebook or left it on the plane, they had a hard drive failure, they suddenly realized it wasn t the same nightmare of us trying to rebuild their data over the course of days, they knew it was all right there. Basically, we can hand them a loaner notebook, they can log into Web mail and sign into Document #252352 2015 IDC. www.idc.com Page 11

the Web site and Dropbox and they were functional, they had everything there, and then we build them a new computer and ship it out to them, and they are very happy.» Ability to focus on higher-value activities: Dropbox keeps our one IT guy working on the everything else. He is not spending time on file storage and can spend time on computer hardware, software licenses, and network connectivity. FIGURE 2 Average Annual IT Staff Productivity Benefits per 100 Dropbox for Business Users $43,600 $28,600 $12,100 Total: $43,600 per 100 Dropbox for Business users $1,700 $1,200 IT hires avoided Document management efficiencies Keeping the lights on Lost files Total Source: IDC, 2014 Lowers IT Infrastructure Costs Customers also noted that Dropbox for Business has helped them reduce and avoid certain datacenter-related costs and other costs related to storage and shipping. Several organizations said that they have avoided buying file storage servers as a result of their use of cloud-based Dropbox for Business services. Other customers cited the benefit of lowering their spending on shipping and storage. As one customer explained, Because we now use Dropbox for data transfer from the field, we are saving on what were shipping bills in the thousands of dollars in the past. IDC calculates that interviewed organizations are saving or avoiding datacenter and other costs worth an annual average of $11,600 per 100 Dropbox for Business users (see Figure 3). Document #252352 2015 IDC. www.idc.com Page 12

FIGURE 3 Average Annual IT Infrastructure Cost Savings per 100 Dropbox for Business Users $11,600 $2,300 Total: $11,600 per 100 Dropbox for Business users $300 $300 $400 $500 $1,200 $2,700 $3,900 Server Software Software maintenance Licensing Facilities Consulting and contractor Shipping Other storage Total Source: IDC, 2014 Dropbox for Business Can Help Organizations Manage Risk Several interviewed organizations noted that despite continued concerns about data security inherent to cloud-based file sharing and storage solutions, Dropbox for Business is helping them reduce the risk of catastrophic data loss. Because Dropbox for Business provides robust data backup features, customers have reduced the number of lost files from almost 14 to fewer than 6 per year and have cut the time it takes to recover a lost file by more than half. This not only returns productive time to IT staff members and IT users but also brings peace of mind to users if they worry less about the possibility of losing important files (see Table 4). TABLE 4 Lost Files KPIs Average Before Dropbox With Dropbox Benefit Advantage (%) Lost files per year 13.5 5.8 7.7 57.1 Hours to recover 2.4 1.1 1.3 53.8 Annual hours spent recovering lost files 32.4 6.4 26.0 80.2 Source: IDC, 2014 Another customer noted that Dropbox for Business offers features that help it mitigate risk. Specifically, it noted that Dropbox offers security-related advantages, including the ability to close an account and directly transfer it to another user and the ability to create group management that is isolated from its storage environment, which is a benefit in the event of an acquisition or a divestiture. Document #252352 2015 IDC. www.idc.com Page 13

Focus: Dropbox for Business for Larger Organizations The business value proposition of Dropbox for Business is clear for smaller and medium-sized companies that can leverage its flexibility and cost-effective nature to improve employee productivity while maintaining lean operations. The experience of Maquet, a German medical device manufacturer with 6,500 employees, suggests that larger companies can also realize substantial benefits by using Dropbox for Business. To learn about the use of cloud-based file sync and share, Maquet tested Dropbox for Business in a business unit with more than 1,000 employees. Maquet began considering using Dropbox for Business in the context of looking for a sync and share solution that would increase employee productivity while enabling it to control company data in the cloud. As a medical device manufacturer, Maquet faces stringent regulatory requirements that a sync and share solution would need to address. It chose Dropbox for Business because Dropbox was able to fully address these data-related concerns and because it was impressed by Dropbox s sizable installed base and price point. According to Maquet, the 650 users who now have Dropbox for Business accounts are significantly more productive. The marketing and sales teams have benefited most; these teams are constantly on the move and depend on timely access to simple, shared data to demonstrate their products and carry out their sales pitches. Team members are no longer wasting time looking for the right documentation or document version and have confidence that they have the most up-to-date information as they meet with potential customers. Maquet stressed that it is seeing these productivity gains while making important strides in data security. In particular, Dropbox for Business helps Maquet comply with FDA rules by giving it the ability to restrict access to data and limit the right to delete data. For Maquet, this is a significant financial and business benefit. ROI ANALYSIS IDC assessed the cost, benefit, and value associated with the use of Dropbox for Business by the eight organizations interviewed for this white paper over a five-year period (see Figure 4). Based on its analysis of the information captured in interviews, IDC calculates that these organizations are spending an average of $32,100 per 100 Dropbox for Business users each year over five years in subscription, infrastructure, and support costs (including initial costs). Based on these investments, organizations interviewed will achieve annual benefits worth an average of $316,500 per 100 Dropbox for Business users over five years. As a result, IDC projects that these organizations will realize an average cumulative net gain of $1.42 million per 100 Dropbox for Business users over five years. Document #252352 2015 IDC. www.idc.com Page 14

FIGURE 4 Cost Benefit Analysis per 100 Dropbox for Business Users $1,500,000 $1,300,000 $1,100,000 $900,000 $700,000 $500,000 $300,000 $100,000 $0 - $100,000 $1,422,000 $419,800 $314,600 $331,900 $365,100 $151,000 -$9,600 -$14,400 -$30,000 -$31,600 -$34,800 -$40,000 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Benefits Investment Cumulative net benefit Source: IDC, 2014 Table 5 provides IDC s five-year ROI analysis for the organizations use of Dropbox for Business. The analysis shows that the average organization interviewed for this white paper will spend $113,700 per 100 Dropbox for Business users. In return, the average organization will realize $1.09 million in benefits per 100 Dropbox for Business users. This results in a net present value of $978,400 per 100 Dropbox for Business users. This means that the interviewed organizations will break even on their investment in 4.5 months and achieve an ROI of 860%. TABLE 5 Five-Year ROI Analysis per 100 Dropbox for Business Users Benefit (discounted) $1.092 million Investment (discounted) $0.114 million Net present value (NPV) $0.978 million Return on investment (ROI) 860% Payback period 4.5 months Discount rate 12% Source: IDC, 2014 Document #252352 2015 IDC. www.idc.com Page 15

Challenges and Opportunities Challenges This study shows the concrete benefits Dropbox customers have experienced through adoption. There are challenges, however. Several customers expressed concerns about security. In some cases, the concern is the ability for administrators to see more content than they should be able to see. That includes internal material as well as confidential partner information shared with the enterprise. Customers would like to see better isolation between the actual content and the administration of the Dropbox service. Another challenge mentioned by customers in this study is the confusion that results when end users delete files from their PC when those files are shared across a team. The deletion is synced to the cloud, and the files disappear from each team member s folder. Team members complain that their files disappear from the service and require support from IT to resolve. This is a generic problem across all file sync and share services. Dropbox for Business handles this issue by maintaining versions of files in perpetuity, allowing end users to recover deleted files, but end-user training helps diminish the problem. However, there is a need for training or an easily accessible FAQ to help end users learn how to unsync rather than delete and how to recover when an individual user mistakenly deletes a file the team continues to need. Customers also mentioned that they had unanticipated additional charges for network bandwidth caused by the adoption of Dropbox. It is logical that bandwidth usage increases for any file sync and share service because end users sync content to the cloud and share with others, and those changes often propagate through the network to team members PCs. File sync and share is generally a new use of network bandwidth. Dropbox for Business does have network throttling capabilities, which have the potential to decrease peak use of the network. However, this may cause problems with teams that are working together on content under deadline, where they need the fastest-possible syncing. Additional bandwidth should be included in the total cost of adoption. How much additional bandwidth is needed is dependent on how broadly the service is adopted and whether end users need fast syncing. Even with the added networking costs, the ROI still remains highly positive. Opportunities The entire study outlines how customers are adopting file sync and share services as well as the benefits of the services. When these services were first introduced, they were very innovative, and in business, enterprises are pushing forward in even more innovative ways Document #252352 2015 IDC. www.idc.com Page 16

than any of the vendors envisioned. We are beginning to see enterprises use the folders and files managed by Dropbox and other file sync and share service providers in application and process automation projects that depend on the content stored in the files. We expect over time to see greater interoperability with enterprise systems even as new features unfold that improve end-user productivity and foster greater collaboration. Recommendations In our file sync and share adoption survey conducted prior to this ROI study, we found that more than 40% of end-user adopters in business used the free service, regardless of whether it was supported individually, within a team, or by the enterprise. For those end users adopting the free service, many of the productivity benefits described in this study also apply. This analysis provides organizations with a way to build a business case to shift workers to file sync and share and extend the benefits that are already being achieved through individual adoption. In addition, the IT productivity and infrastructure savings benefits do not apply to the free service, nor do the benefits gained by leveraging Dropbox for Business to support a business strategy that speeds up cycle times or is used in support of revenue growth initiatives. Both are important contributors to the overall value the organizations interviewed for this study are achieving with Dropbox for Business. Many enterprises in regulated industries are struggling with the issue of cloud and the adoption of file sync and share. Dropbox is working with multiple industry-specific partners to support security frameworks as well as unique use cases. Enterprises may choose to adopt Dropbox through partnerships that align with their specific industry needs. For direct use of Dropbox, it is important to identify opportunities to collaborate and share that do not violate compliance but can significantly enhance productivity. We outlined one such example in this study, describing how Maquet is benefiting from its use of Dropbox for Business. Enterprises concerned with this issue use Dropbox with mobile rollouts supporting field workers. Another starting point is marketing, which frequently collaborates with agencies and contractors to support advertising and marketing campaigns. Finally, file sync and share services are very easy to learn, and most organizations have minimal training. That is a significant benefit. However, we recommend that training be held to cover basic issues that affect team collaboration. One example is teaching end users how to delete files or folders without deleting them from central storage when they are no longer involved with projects. Establishing naming conventions is also important so that users collaborating across multiple teams don t struggle with duplicate folder names. Document #252352 2015 IDC. www.idc.com Page 17

Conclusion As organizations rely more on employee mobility and cloud-based applications, they also seek to maximize the productivity of employees impacted by these trends. They understand the value of their employees time and want their employees to work as productively and efficiently as possible. IDC s interviews with Dropbox for Business customers demonstrate that these organizations are accomplishing their objective of driving employee productivity by providing a file sync and share solution that enables collaboration and time efficiencies related to file and data management. However, by using Dropbox for Business, the organizations are not just maximizing the scope of these productivity benefits but also capturing IT staff efficiency gains and cost savings while addressing security-related concerns. As a result, Dropbox for Business not only is a solution that employees want to use but also delivers business value to organizations by increasing employee productivity, improving IT staff efficiency, and delivering cost savings. IDC Global Headquarters 5 Speen Street Framingham, MA 01701 USA 508.872.8200 Twitter: @IDC idc-insights-community.com www.idc.com Copyright Notice External Publication of IDC Information and Data Any IDC information that is to be used in advertising, press releases, or promotional materials requires prior written approval from the appropriate IDC Vice President or Country Manager. A draft of the proposed document should accompany any such request. IDC reserves the right to deny approval of external usage for any reason. Copyright 2015 IDC. Reproduction without written permission is completely forbidden. About IDC International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,100 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide. For 50 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world s leading technology media, research, and events company. Document #252352 2015 IDC. www.idc.com Page 18