Total Economic Impact of the Ping Identity Identity and Access Management (IAM) Platform

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1 Total Economic Impact of the Ping Identity Identity and Access Management (IAM) Platform A condensed version of Forrester s June 2013 TEI Report, prepared by Ping Identity Introduction In any project, regardless of setting, audience or even the product or service features, one question always hangs in the air: but what about ROI? Working with Forrester Consulting, Ping Identity set out to answer that question in January Ping commissioned Forrester to examine the total economic impact and potential return on investment (ROI) enterprises may realize by implementing the Ping identity and access management (IAM) platform. Forrester employed its Total Economic Impact (TEI) methodology1, which consists of four components to evaluate investment value: benefits, costs, risks and flexibility. Researchers interviewed six Ping Identity customers encompassing customer, employee and partner use case scenarios for both cloud-based and internal applications. This summary provides a top-level framework for an organization to use in evaluating the potential financial impact of the Ping identity federation platform while taking into consideration the various use case scenarios. For a deeper dive into the insights provided by Forrester, the full TEI study and report is available at 1 Total Economic Impact is a methodology developed by Forrester Research that enhances a company s technology decision-making processes and assists vendors in communicating the value proposition of their products and services to clients. The TEI methodology helps companies demonstrate, justify and realize the tangible value of IT initiatives to both senior management and other key business stakeholders. 1

2 Reasons Customers Adopt The Ping Identity IAM Platform The Organization, much like the customers interviewed, adopted Ping Identity solutions to: Eliminate repeated SSO and increase user satisfaction Maintain a consistent look and feel between internal and external sites Align with industry standards and protocols Centralize and broaden identity federation capabilities Increase the ability to address both business and technical requirements Reduce resource requirements for integrating applications Partner with a high quality and reliable service provider Interview and Study Criteria The six customers interviewed represent a broad slice of the marketplace: 1. A multinational conglomerate producing over 50,000 products with uses in healthcare, consumer packaged goods, electronics and automotive care. 2. A Fortune 500 insurance company providing supplemental insurance in the US and select international markets through over 8,000 employees, more than 19,000 sales agents and over 75,000 licensed sales agents. 3. A multinational networking solutions company with an internal user base comprised of over 65,000 employees and contractors. 4. An Internet auction platform with operations in over 30 countries and millions of items sold online annually. 5. A multinational banking and financial services organization with over 55 million customers worldwide and 260,000 employees. 6. A growing provider of energy consumption statistics that partners with energy companies to heighten consumer awareness of consumption patterns and statistics. Because some customers interviewed had a broader range of deployment scenarios (e.g., including both internal and external use cases), Forrester relied more heavily on large customers that deployed the solution across different types of user scenarios. Table 1 THREE-YEAR RISK-ADJUSTED ROI 1 Source: Forrester Research, Inc. ROI Payback Period Total benefits (PV) Total benefits (PV) Net present value 1513% <1 month $80,793,981 ($5,008,038) $75,785,943 The financial results presented in Table 1 are based primarily on Forrester s interview with the customer that had the largest user base of the six customers interviewed. The ROI projected in this case study includes both cost saving and revenue generating components, which will both vary by organization. In particular, the revenue generating opportunities may vary widely depending on a number of factors, including industry, size and customer base. The calculations to determine the magnitude of each category of cost and benefit are discussed in more detail in the full case study. A composite organization, developed to reflect collective feedback from the organizations interviewed, initially adopted the Ping Identity IAM platform for external software as a service (SaaS) integrations. However, the organization found solutions from Ping Identity to be useful and effective resources for integrating applications and managing employee, customer and partner identities on one platform, so the organization quickly expanded its use of the Ping IAM platform to include both external and internal integrations. 1 Forrester risk-adjusts the summary financial metrics to take into account the potential uncertainty of the cost and benefit estimates. For more information on Risk, please refer to Appendix A in the full TEI study. 2

3 Factors Affecting Benefits and Costs The values in Table 1 take into account any potential uncertainty or variance that exists in estimating the costs and benefits, producing more conservative estimates. The following factors may affect an organization s financial results: The scope of deployment for the Ping Identity IAM platform, including the number of users (internal and external), the volume of integrated applications and adoption rates for those applications, and the breadth of use case scenarios (e.g., customer, partner, and employee) required to meet the organization s needs. The volume and pace of application integrations completed using the Ping Identity IAM platform that have a bearing on licensing, labor, and resource costs and how quickly benefits are realized by the organization. The prior state of the organization s identity federation environment, including the use of proprietary vs. non-proprietary solutions and their associated implications for legacy resource costs and licensing fees. EXECUTIVE SUMMARY Benefits The composite organization experienced the following benefits by use case scenario (figures shown are non-risk-adjusted totals by benefit category): Use case description Benefit category Magnitude of benefit Customers Incremental revenue from reduced application dropout rates $45,000,000 Incremental revenue from faster time to market following merger & acquisition activity $21,000,000 Partners Incremental revenue from white labeled applications $12,000,000 Employees Time savings from single sign-on (SSO) $16,932,240 General (applicable across use cases) Reduced labor costs for integrating applications $1,214,400 Decreased labor costs for resolving integration issues $352,800 Reduced labor costs for managing user identities $11,500,000 Reduced labor costs for managing proprietary standards $1,081,350 Decreased helpdesk support costs for password resets $332,100 Streamlined audit and compliance monitoring $45,360 Eliminated legacy software maintenance fees $120,000 Cost The composite organization incurred the following costs (figures shown are non-risk-adjusted totals by cost category): Cost category Costs incurred Ping identity federation licensing fees ($3,500,000) Internal implementation and ongoing support costs ($2,016,480) Hardware costs ($100,800) Benefit/Cost Highlights: Incremental Revenue Faster Time To Market Following M&A Activity After acquiring a large organization, we were able to quickly integrate an application which was a tremendous revenue opportunity for us. The acquisition of this organization brought some complementary product and service capabilities we did not previously have, and so, by deploying the applications quickly with our logo and branding, we were able to get to the market much sooner than if we had needed to manually build connections for the new applications. $100 $80 $60 $40 $20 $0 ($20) Fig. 1 THREE-YEAR RISK-ADJUSTED COST/ BENEFIT BREAKDOWN ($.2) Financial Analysis (risk-adjusted) $32 $61 $91 INITIAL YEAR 1 YEAR 2 YEAR 3 Total Costs Total Benefits Source: Forrester Research, Inc. 3

4 Incremental Revenue White Labeled Applications Several customers called out the ability to quickly integrate, then white label revenue-impacting applications as a notable benefit of the Ping identity and access management (IAM) platform. For the Organization, Forrester assumed that one application was white-labeled annually and resulted in $50,000,000 in incremental revenue annually. With an 8% revenue sharing arrangement with the business affiliate, which owned and managed the product or service, the total incremental revenue opportunity for the Organization was $12,000,000 ($9,947,408 PV). Reduced Labor Costs For Managing User Identities Since using Ping, we re not responsible for managing the user identities or passwords for the customers of our business affiliates. It used to be that we d get asked questions like, Our corporate policy is for people to create a password that has 10 alphanumeric characters, at least one number, no symbols, etc. Can you accommodate that? It was too complex; now we can automatically obtain that data through the business affiliate and bypass the process of having to reassign a new password. Risk The following implementation risks that affect costs are identified as part of this analysis: Unanticipated internal implementation costs (e.g., additional hardware required) Increased user or connection licensing or enterprise licensing agreement (ELA) fees The following impact risks that affect benefits are identified as part of the analysis: Minimal or no reduction in employee productivity with single sign-on Unchanged volume of helpdesk support requests for password resets Persisting volume of application integration issues Minimal or no reduction in administrative burden for audit and compliance monitoring Little or no incremental revenue gains from customer enrollment Inability to eliminate use of legacy access control solutions Flexibility The Organization planned to increase use of mobile and social identity integration provided by Ping Identity. By leveraging mobile and social identity integration through the Ping identity and access management platform, the Organization hoped to provide employees with even more flexible access to applications and information. Among the customers interviewed, several were beginning to pilot use of mobile and social identity integration. One additional flexibility opportunity mentioned by customers was the implementation of PingOne, the Ping Identity on-demand cloud identity management-as-a-service. 4

5 Conclusion The Ping Identity IAM platform delivered significant ROI to the composite organization (see Table 1). By managing all user identities through a central platform, the solution provided flexibility, efficiency and reliability for federation needs. Benefits outweighed costs, and the risks were manageable. Though influenced by a number of factors depending on the organization, the results in Table 1 offer a compelling answer to the often-asked ROI question. Organizations saved time and money with Ping Identity. For a more comprehensive look at the Forrester study, including methodology and determining factors, visit Ping Identity is The Identity Security Company. Ping Identity believes secure professional and personal identities underlie human progress in a connected world. Its identity and access management platform gives enterprise customers and employees one-click access to any application from any device. More than 1,000 companies, including half of the Fortune 100, rely on its award-winning products to make the digital world a better experience for hundreds of millions of people. Visit pingidentity.com for more information. Disclosures The reader should be aware of the following: This document is a condensed, edited version of a comprehensive study commissioned by Ping Identity and conducted independently by the Forrester Consulting group. Forrester makes no assumptions as to the potential return on investment that other organizations will receive. Forrester strongly advises that readers should use their own estimates within the framework provided in the report to determine the appropriateness of an investment in Ping Identity solutions. Ping Identity reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study and its findings and does not accept changes to the study that contradict Forrester s findings or obscure the meaning of the study. Ping Identity provided the customer names for the interviews Ping Identity Corporation. All rights reserved. Ping Identity, PingFederate, PingOne, PingEnable, the Ping Identity logo, and Cloud Identity Summit are registered trademarks, or servicemarks of Ping Identity Corporation. All other product and service names mentioned are the trademarks of their respective companies. 6/14.1 About Ping Identity The Identity Security Company Ping Identity believes secure professional and personal identities underlie human progress in a connected world. Our identity and access management platform gives enterprise customers and employees one-click access to any application from any device. Over 1,200 companies, including half of the Fortune 100, rely on our award-winning products to make the digital world a better experience for billions of people. For more information, dial U.S. toll-free or , sales@pingidentity.com or visit pingidentity.com. 5