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OfficeConverter ROI
How one client saved $1.3 Million
Projecting the manual cost of converting files from older versions of Microsoft Office to newer versions is a straightforward exercise. The general case is:

Manual Cost of Conversion = Number of Files * Average Error Per File * Average time to Repair, Test, and Document an Error * Cost Per Hour of Developer Resource
Typically, enterprises with more than 2,500 desktops targeted for Office 2003/2007 deployment enjoy at least a 3x return on their investment in ConverterTechnologys OfficeConverter toolset to automatically convert and repair files. It is not uncommon for larger enterprises to enjoy return of 20x or more.

Transportation Company Example

The figures below depict how one client, who measures among the worlds largest transportation companies, used OfficeConverter to avoid $1.3m in human resources costs by automating file migration with OfficeConverter for two business units with approximately 4,000 users of Microsoft Office. The first step in assessing the manual cost of conversion is to determine how many files are in scope for the migration. A file discovery is typically done to identify all Office files in an enterprise. An aging profile is performed on that population in order to eliminate from project scope files that are out-of-service or duplicates. The remaining files are assessed for business value and prioritized or de-scoped accordingly. Normally, this process results in approximately 30-40% of the original file volume remaining to be migrated to the new Office platform, assessed for compatibility issues, then converted and repaired along the way. The remaining 60-70% are often taken off line and archived.

In the example pictured above, a 1.75m file universe was determined to have 200,000 files that were in scope and were either incompatible with the Office 2003 platform or indicated a High Risk of incompatibility.

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The next step is to assess how effective OfficeConverter will be at converting and repairing the 200,000 files determined to have business value and remain in scope. The chart below reveals that OfficeConverter was 99% effective on the 200,000 files converted and repaired automatically by the tool for this customer. Based on the volume and complexity of errors observed, the average time to find, fix, repair, test and document compatibility issues can be measured. For this file set, it was estimated that 33,309 developer hours would be required to fix the files. Assuming 1 fully loaded costs of $50 per hour , the estimated manual cost of conversion is nearly $1.7m as shown in the justification scenario presented below. Finally, the analysis factors in the time savings based reduced cost for developer resources, but it must also factor back in the cost for software, support and time required to operate the OfficeConverter software and tend to management of the project plan and associated migration process and workflow. For our average customer, the net time savings by implementing a software based solution to Microsoft Office file migration are 80%, versus manual remediation. In the example at the right, once the OfficeConverter license fees are factored in alongside labor costs, the total cost of achieving file compatibility on the Office 2003 platform was reduced from $1.66m to $550k saving $1.1m in direct costs to complete the project.

Justification Justification
Assumptions:
5 minutes to fix an error

Cost Comparison: Converting and Migrating Files manually

$50/Hr for a consultant/skilled staff 2 Critical errors per file on average For the 199,852 Incompatible and High-Risk Files o o o o o 1.6m file customer sample: 33,309 developer hours

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More Information: ConverterTechnology, Inc.

3870 Mistral Drive Huntington Beach, CA 92649 Todd Theilmann International: +1 714 625 4889 Email: ttheilmann@convertertechnology.com Website: www.convertertechnology.com

$1,665,450 manual conversion cost $550k Software, support, maintenance and labor cost ROI >3x

Fully loaded developer costs are more likely in the range of $75-$100/hr. in North America.

ConverterTechnology OfficeConverter Software ROI August 2009 ConverterTechnology, Inc.