Executive Summary Financial Results ROI 311% NPV $14.3 million Dynatrace™ is a full stack solution that covers application performance management, digital experience management, infrastructure monitoring and AIOps. Dynatrace commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying Dynatrace™. This study provides readers with a framework to evaluate the potential financial impact of Dynatrace™ on their organizations and how it can affect business operations and users of all types when moving from prior-generation application performance management (APM) toolsets. To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed seven customers with years of experience using the Dynatrace platform. Our findings revealed that the AI-powered software intelligence platform performed well across entire IT stacks — for those organizations using enterprise cloud as well as those on traditional on-premises infrastructures. Several primary attributes of Dynatrace were particularly helpful for organizations: › AI-powered full-stack analyses help multiple groups within IT, providing decipherable insights rather than extraneous data — to mitigate and even prevent performance degradations with speedy identification. › Easily deployable agents can be stood up across the infrastructure, in hours, not months, even on a multicloud environment. Benefits PV $18.9 million Payback <6 months postdeployment › Granularity of detection across the entire IT stack brings clear visibility to interdependencies between data flows. With Dynatrace, customers markedly improved their efficiency in handling application performance issues, lifting service levels higher and boosting end user satisfaction and productivity. Further, the Dynatrace platform enabled organizations to streamline reliable application and service delivery at scale, making it possible for these businesses to align with the age of the customer where the quality of the customer experience (CX) means the difference between success or failure. Internal business users and external consumers expect a high level of service delivery and availability in this day and age where the digital experience is paramount. Prior to using Dynatrace, customers experienced a multitude of issues with the delivery of applications to end users. Commonly mentioned shortcomings with previous solutions were: › Organizations could not resolve application issues efficiently, tying up high value people resources in war room situations. › In some instances, the organizations were unable to find resolutions at all, causing protracted performance degradation to persist until the issues had subsided on their own. › Older solutions did not provide analytical clarity around the root cause of incidents. Were these problems a factor of bad code, or were they infrastructure-related problems? Ultimately, early generations of APM solutions yielded limited success at best and kept the organizations guessing as to where application performance and delivery issues truly rested. As one interviewee put it: “When we had performance issues with our previous solution, all it could do is tell us we were having an issue, not necessarily what the issue was. We had to find the issue on our own.” 1 | The Total Economic Impact™ Of Dynatrace Key Findings Key Benefits (ThreeYear, PV) re Benefits Savings from quicker dev and test cycles: $5,658,700 End user productivity recovery gains: $4,453,918 Quantified benefits. The following risk-adjusted present value (PV) quantified benefits are representative of those experienced by the companies interviewed: › More accurate insights rather than superfluous and uncorrelated data help the greater IT group improve efficiency. Organizations described their stockpiles of logs and reports, which were often manually generated. The interviewed organizations wanted earlier incident detection and usable information that they could use to remediate existing code to identify bottlenecks in the infrastructure. Organizations experienced war room scenarios that took hours from members of varying IT groups; Dynatrace decreased the total time wasted, driven by a mean-time-to-identify (MTTI) reduction of 75% from previousgeneration APM tools. IT help desk operations were also relieved to see a decline in performance-related calls due to better customer experiences delivered. AI-led analyses and detection saved IT groups and DevOps the equivalent of $2.4 million over three years, PV. › Fewer performance incidents and faster resolution time result in greater business end user productivity. As resolution times decreased and IT groups became more proactive with the Dynatrace solution, internal business users benefited, noticing everything from snappier performance to fewer serious performance degradations. Poor performance equated to 8 minutes per incident — and across an enterprise at which 10% of an affected workforce could mean over 2,000 users, the effects can be profound. Dynatrace reduced issues an additional 40% over legacy APM toolsets. We estimate that a typical enterprise would gain over $4.4 million in productivity. › Using Dynatrace during the development process saves significant developer effort for new and ongoing projects. Developers save time beyond fewer and quicker war room resolutions if leveraging Dynatrace fully. When integrated into a workflow for application development, Dynatrace can cut down testing and redundant development cycles by as much as 45%. Three-year savings for developers who are commonly expensive to hire and difficult to retain amount to nearly $5.7 million, PV. Savings in IT operations due to full-stack monitoring: $2,418,939 › Application delivery to market speed improved, bringing revenues to organizations sooner. As development accelerated, organizations reported an earlier introduction of services to the market — enabling an ongoing quicker recognition of revenues. B2B and B2C organizations alike will benefit from this, with an estimated amount of $2.2 million, PV. › New application and enhancement buildouts leveraging Dynatrace during the development process avoid performance incidents from the start. Being able to test code in various scenarios on infrastructure helps organizations avoid future performance issues as projects are tested from development conception. Over a three-year timeframe, the expected benefit is $1.2 million, PV. Faster application to market value: $2,150,306 2 | The Total Economic Impact™ Of Dynatrace › Full-stack visibility even across the cloud enables organizations to move forward with digital transformation efforts faster, opening new revenue possibilities while minimizing the risk of introducing application issues. With full-cloud and container monitoring, Dynatrace can move organizations through their digital transformation efforts much faster to support customers at scale. The value of addressing new customers across new segments without diminishing customer experience is conservatively valued at $3.0 million PV over three years.