Metrigy Zoom TCO eBook with Video
Total Cost of Ownership for Zoom Phone
A Lifecycle Analysis of UCaaS Costs Study finds Zoom’s UCaaS offering delivers cost efficiency and reliability compared to industry averages 1
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Table of Contents Self-Service Administration Capabilities for Introduction and Study Overview 03 08 Employees Drive IT Staff Productivity Trouble Ticket Resolution Gives Glimpse Into Day 1 Costs: Implementation and Training 09 04 Productivity Gains, Losses Platform Reliability Crucial to Company Communications Intuitive Platforms Require Less Training 05 10 Day 2 Costs: Ongoing Management and Operations Tips for Selecting UCaaS Providers 06 11 Employee Onboarding and Provisioning: How Fast? 07 2
Introduction and Study Overview Zoom costs 60% less to deploy than the industry average. Compared to the industry average, organizations require nearly one fewer full-time-equivalent IT staff member to manage a Zoom UCaaS deployment. 54% of research participants reported it took less than 15 minutes to onboard new employees onto Zoom Phone, compared to the industry average of 32.8%. Zoom commissioned Metrigy to conduct a study Research participants found Zoom easy to use for their examining the cost, utilization, and management of end users, with Zoom having the highest percentage of voice and meeting solutions. The study consisted of employees with no training (24%) or less than one hour of 761 organizations with more than 1,000 employees training (47.1%) required to use the applications. from nine countries. Reliability and uptime also are high, with Zoom resolving Zoom performed well in costs, as well as ease of use more than half of all Zoom Phone-related issues within for both IT staff and end users. According to the one hour, compared to the industry average of 27.5%. analysis: Metrigy 2022 3
Day 1 Costs: Implementation and Training Organizations must budget for two areas to start realizing the benefits of the new solution: Implementation includes the cost of: Training includes the cost of: the internal staff time or third-party partners who train internal IT staff time, as well as third-party system employees on how to use the applications and what integrators value they provide The more complex the apps or the user interface, the managed service providers, or the platform provider longer it takes to train employees. itself assisting with installation and provisioning Implementation and Training Costs, Per License Implementation Training $100 $90 $80 On average, UCaaS vendors’ implementation $70 and training collectively cost 2.5 times more $60 2.5x $50 than what companies spend on the same for $40 Zoom’s services. $30 $20 $10 $0 Zoom Overall Average 4 Metrigy 2022
Intuitive Platforms Require Less Training The faster organizations can train employees, the sooner they can start taking advantage of the productivity the applications enable—as well as get back to their day jobs rather than spending time in technology training sessions. So, if the applications are intuitive enough to require no training, all the better. Employees get to work immediately, and the company pays next to nothing to train them. Among organizations that required training, most spent Research participants using Zoom said: anywhere from 30 minutes to a full day to train employees, and fewer than 5% spent more than a full day. Nearly half of employees that required training were fully operational with of their employees require no Zoom within 30-60 minutes. 24% training Employee Training Timeframes 30-60 minutes of traning 2+ hours of training 60% compared to 48.3% 47.1% 40% 29.4% 25.6% of all employees using other 17.3% 20% providers 0% Zoom Overall Average Metrigy 2022 5
Day 2 Costs: Ongoing Management and Operations Companies budget for two primary operational costs: IT staff and managed services. The study examined the number of full-time equivalents that manage UCaaS solutions, along with their average compensation, as well as annual spending on third-party managed services. Companies using Zoom spend 55% less to manage and operate their UCaaS platform than the industry average. This equates to $295 per employee, per year, or $24.60 per employee per month—savings that nearly covers the cost of a Zoom United Enterprise license ($30 list price). Annual Operational Costs, Per Employee Number of IT staff members per Internal Staff Managed Services 1,000 employees: $600 $534.48 $500 $400 2.2x $300 $239.28 $200 $100 1.98 2.78 $0 Zoom Overall Zoom Average 6 Metrigy 2022
Employee Onboarding and Provisioning: How Fast? Other factors also contribute to costs, productivity, and usability. One such factor is the ability to onboard employees and update profiles or permissions. These functions vary based on meeting platforms and voice platforms. More participants using Zoom were able to update profiles and permissions within 15 minutes compared to industry averages (see below). Both metrics underscore the time (and cost) savings for the IT staff, along with the quick onboarding of new employees. Percent of Companies that Onboard/Change Percent of Companies that Update Employees Within 15 Minutes Profile/Permissions Within 15 Minutes Voice Meetings Voice Meetings Zoom Zoom 53.6% 40.6% 39.3% 56.3% Overall Average Overall Average 32.8% 32.0% 36.0% 38.7% 7 Metrigy 2022
Self-Service Administration Capabilities for Employees Drive IT Staff Productivity Platforms that offload some tasks from administrators to employees themselves, as self-service applications, make IT staff even more productive. Among all research participants: handle more than 25% of their administration functions through self- 69% service using Zoom rely on self-service to handle more than 25% of their administrative 80% functions As employees become more comfortable with technology, they want easy-to-use interfaces that allow them to make quick functional changes such as for passwords or call forwarding, or to update simple policies guiding functions such as call forwarding. Self-service improves employee satisfaction because it lets them quickly handle administrative functions without waiting for IT, and it also keeps IT’s focus on more urgent or complex issues. 8 Metrigy 2022
Trouble Ticket Resolution Gives Glimpse Into Productivity Gains, Losses A look at companies’ internal trouble tickets provides insight into IT staff costs and productivity. We asked organizations how long it takes them to resolve trouble tickets and in what time frame. Trouble tickets received in one month and resolved in one hour % of Voice Trouble Tickets Voice Trouble Tickets per Resolved in one hour Month Zoom 43% 34 Overall Average 26% 56 The total number of trouble tickets also illustrates the reliability of a UCaaS provider’s platform. Any downtime will impact productivity, as well as the satisfaction of employees, customers, and business partners. The average number of voice trouble tickets per month is 56. Research participants using Zoom report 40% fewer tickets compared to the industry average. 9 Metrigy 2022
Platform Reliability Crucial to Company Communications In addition to addressing internal trouble tickets (i.e., device issues, provisioning problems, etc.), IT must report platform performance issues to the UCaaS provider. Of course, phone downtime makes it impossible for customers to call the business, but almost as important, no video calls or screen shares can take place when meeting solutions are down. As people continue to work remotely, the ability to support visual engagement has become increasingly important—and expected. Percent of Issues Resolved by Provider in One Hour Overall Average Zoom 26.6% Meetings 35.9% 27.5% Voice 51.4% 0% 10% 20% 30% 40% 50% 60% 10 Metrigy 2022
Tips for Selecting UCaaS Providers UCaaS has been a critical service for serving employees and customers, but as employees continue to work remotely, the meeting capabilities have become even more vital. Organizations must carefully evaluate providers in a bevy of areas, including technology capabilities, innovation, customer service, and value. Value not only encompasses costs, but also such factors as ease of use, reliability, and self-service. As this report, backed by a large global study, indicates, Zoom’s meetings and voice services are performing significantly better than industry average across a variety of areas. As you’re evaluating providers, consider: Implementation costs Operational costs Employee productivity including compensation for IT including ongoing IT staff costs to particularly when they are offline staff and third-party partners, as manage the service, third-party because of slow break-fix or an well as employee training managed services, and the ability unreliable platform to quickly address issues through self-service administration and a reliable platform 11 Metrigy 2022