The Total Economic Impact™ Of

Google Workspace
Cost Savings And Business Benefits Enabled By Workspace

A Forrester Total Economic Impact™ Study

Commissioned By Google, December 2023
Table Of Contents
Executive Summary 3

The Google Workspace Customer Journey 12

Analysis Of Benefits 15

Analysis Of Costs 45

Financial Summary 48

Consulting Team:

Matthew Carr

Jonny Cook

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TOTAL ECONOMIC IMPACT OF GOOGLE WORKSPACE 2

Executive Summary

Google Workspace is a suite of tools that enables transformation toward a

more collaborative and connected workplace culture that empowers
employees across all roles with intuitive apps like Gmail, Docs, Sheets, and
Meet. Workspace allows employees to accomplish more in a Zero Trust,
cloud-native security environment, focusing on what matters most. With
Workspace, organizations improve the productivity of both office and
frontline workers, enhance security, grow revenue, and drive innovation.

Google Workspace includes tools, such as Drive, Gmail, Calendar, Chat, Meet,
Docs, Forms, Sheets, Slides, and AppSheet, that come together to provide a
collaborative and secure environment that drives efficiency across the entire
workforce. The platform supports greater digitization and continual adaptation
with an easy-to-use, cloud-native solution. AI-powered features in Workspace
help employees save time, remove the burden of routine tasks, and stay safe
against malware and phishing attacks.

Google commissioned Forrester Consulting to conduct a Total Economic

Impact™ (TEI) study and examine the potential return on investment (ROI)
enterprises may realize by deploying Workspace. The purpose of this study is to
provide readers with a framework to evaluate the potential financial impact of
Workspace on their organizations.1

“The value of Workspace is collaboration and

the stability of the system. We’re an
organization that works 24/7. It’s the most
reliable and collaborative system that we have.”
HEAD OF IT, TECHNOLOGY

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EXECUTIVE SUMMARY

To better understand the benefits, costs, and risks associated with this
investment, Forrester interviewed six representatives at five enterprise
organizations with experience using Google Workspace. For the purposes of this
study, Forrester aggregated the interviewees’ experiences and combined the
results into a single composite organization, which is an organization with 10,000
employees in office roles and 10,000 in frontline roles.

Interviewees said that prior to using Workspace, their organizations used a mix of
on-premises and cloud collaboration tools. Office workers who used these legacy
tools could not effectively collaborate in real time, hindering productivity and
innovation. Frontline workers often lacked access to these tools altogether,
leaving them disconnected from their organizations’ larger digitization and
modernization efforts, impeding efficiency, collaboration, and access to
convenient communication channels. In addition, IT teams struggled with the
uncertain security standards of these legacy systems and saw a need for
solutions that enhanced their organizations’ security.

After the investment in Workspace, the interviewees saw a more collaborative,

productive, and secure workplace. Key results from the investment include
improved collaboration, faster searching for and finding information, more
efficient workflows and application development, security tool cost savings and IT
productivity, increased incremental profit, and a more connected and inclusive
work community.

KEY STATISTICS

Return on investment (ROI): Net present value (NPV):

336% $57.3 million
Payback: Benefits PV:
<6 months $74.3 million

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EXECUTIVE SUMMARY

KEY FINDINGS

Quantified benefits. Three-year, risk-adjusted present value (PV) quantified

benefits for the composite organization include:

• Improved collaboration by 30%. Improved collaboration is a top benefit

the composite organization experiences by transitioning to Workspace as
office and frontline workers alike see significant time savings due to
improvements brought by Workspace that drive collaboration, such as AI
automation, better and faster communication, easier information sharing,
and more data-driven approaches. The improved collaboration, enabled by
apps such as Drive, Chat, Gmail, Meet, Docs, and Sheets, leads to users
saving 1.5 hours a week on average and is worth $49.5 million for the
composite organization over three years.

• Improved speed of searching for and finding information by 40%.

Workspace makes information easily accessible, and this, combined with
the platform’s advanced search capabilities, allows individual users at the
composite organization to quickly find the files and information they need.
This is valued at $6.6 million for the composite organization over three
years.

• More efficient workflows and decreasing application development

time by up to 80%. The composite organization greatly increases the
efficiency of app development with AppSheet, an easy-to-use no-code
platform that empowers actual end users to build and modify apps. The
composite uses AppSheet to create apps with various use cases but
focuses on those that automate processes and streamline workflows.
AppSheet and other Workspace apps like Drive, Forms, and Sheets
improve the efficiency of certain defined workflows. This saves $8.7 million
for the composite organization over three years.

• Enhanced security resulting in security tool cost savings. Given the

superior security features built into Workspace as a cloud-based platform,

TOTAL ECONOMIC IMPACT OF GOOGLE WORKSPACE 5

EXECUTIVE SUMMARY

the composite organization is less reliant on its third-party anti-spam, anti-

phishing, encryption, ransomware, and data loss solutions. This decreased
reliance on external vendors enables the composite organization to retire
certain legacy security solutions, resulting in cost savings of $1.8 million
over three years.

• Enhanced security resulting in security team and IT team

productivity, including 90% less time to configure workstations and a
20% reduction in tickets. The IT team at the composite organization
easily administers Workspace as it is straightforward to create and manage
Google accounts, integrate the platform with their active directory, onboard
and offboard staff members, and flag problem accounts. SSO provides
simplicity for both IT and end users, and a lack of outages prevents
downtime. Moreover, the Workspace admin console empowers the IT team
to immediately take action as necessary.

“The fact that there’s a bunch of AI features

inside Workspace is one of the reasons we
chose it in the first place. The AI functionalities
help automate. We want the people at our
organization to focus their time on using their
brains, not monotonous tasks that could be
automated.”
CHANGE MANAGEMENT LEADER, MANUFACTURING

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EXECUTIVE SUMMARY

• Increase in incremental profit by 1.5% for certain revenue streams.

Workspace enables an increase in revenue generation at the composite
organization. Apps such as Drive, Sheets, and AppSheet are used to
access data, optimize store inventory counts, and provide better customer
service. In addition, productivity gains from improved collaboration, AI-
powered workflows, and enhanced security allow employees to focus on
higher-value, revenue-generating work. Over three years, this leads to a
revenue uplift of $26 million and ultimately results in profit worth $2.4
million for the composite organization.

• Decommissioned legacy systems. Upon adoption, Workspace serves as

the composite organization’s primary productivity suite for employees. As
such, the composite decommissions redundant legacy productivity tools
and saves costs totaling $4.8 million over three years.

Unquantified benefits. Benefits that provide value for the composite

organization but are not quantified for this study include:

• Supports a connected and inclusive work community. Workspace

strengthens connection and inclusion by allowing employees to easily
communicate and collaborate, both in real time and asynchronously.
Google Meet features AI-powered capabilities that help all employees fully
participate, including with real-time captions in multiple languages.
Meanwhile, Chat features inclusive and custom emojis, and smart chips
across Docs, Sheets, and Slides bring in recommended people and
content to broaden collaboration for both frontline and office workers.

• Improved employee experience and morale. As an effective and modern

tool that allows employees to work smarter and faster, Workspace
improves employee experience and morale. With AI infused across
Workspace, employees have more time to focus on the best parts of their
jobs and spend less time on routine tasks like responding to emails.
Frontline and office workers, particularly younger employees, often use

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EXECUTIVE SUMMARY

Google products and Workspace apps in their private lives, leading to

existing familiarity with the platform.

• Easier onboarding and training for HR. Workspace speeds the

onboarding process with greater digitization; with a Google account, user
provisioning for accounts and devices occurs quickly, so that workers
receive, sign, and return documents digitally. Workspace unlocks new
training opportunities, particularly for frontline workers, who are reached by
Gmail and directed to training opportunities, including live ones on Meet.

“A value of Workspace for frontline workers is

definitely the sense of belonging to the
digitalization of the company. It eliminates the
distance between headquarters and the shops.
It increases the quality of the work.”
DIRECTOR OF IT, RETAIL

Costs. Three-year, risk-adjusted PV costs for the composite organization include:

• Subscription costs. The composite organization pays subscription costs

to Google for the use of Workspace. This cost is driven by factors such as
the number of users and how many are in office versus frontline roles. This
costs the composite organization $15.4 million over three years.

• Internal labor for implementation and management. The composite

organization dedicates a small team of FTEs to the implementation and
ongoing management of Workspace, while users on average spend a few
hours learning and getting comfortable with the platform. This costs $4.6
million for the composite organization over three years.

TOTAL ECONOMIC IMPACT OF GOOGLE WORKSPACE 8

EXECUTIVE SUMMARY

The representative interviews and financial analysis found that a composite

organization experiences benefits of $74.3 million over three years versus costs
of $17.1 million, adding up to a net present value (NPV) of $57.3 million and an
ROI of 336%.

“Being data-driven and collaborative are two

big benefits of Workspace. Those are two
pillars of what you need for successful
innovation. From a security perspective, it’s
a very, very safe environment for our data.
Workspace has zero reports of data loss or
ransomware attacks.”
CHANGE MANAGEMENT LEADER, MANUFACTURING

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EXECUTIVE SUMMARY

Return on investment Net present value

(ROI) Benefits PV (NPV) Payback

336% $74.3 million $57.3 million <6 months

Benefits (Three-Year)

Improved collaboration $49.5M

Improved speed of searching for

$6.6M
and finding information

More efficient workflows and

decreasing application development $8.7M
time

Enhanced security resulting in

$1.8M
security tool cost savings

Enhanced security resulting in

security team and IT team $632.2K
productivity

Increase in incremental profit $2.4M

Decommissioned legacy systems $4.8M

TOTAL ECONOMIC IMPACT OF GOOGLE WORKSPACE 10

EXECUTIVE SUMMARY

TEI Framework And Methodology

From the information provided in the

interviews, Forrester constructed a Due Diligence
Total Economic Impact™ framework Interviewed Google stakeholders and
Forrester analysts to gather data
for those organizations considering
relative to Workspace.
an investment in Workspace.
Interviews
The objective of the framework is to Interviewed six representatives at five
identify the cost, benefit, flexibility, enterprise organizations using
Workspace to obtain data about costs,
and risk factors that affect the
benefits, and risks.
investment decision. Forrester took a
multistep approach to evaluate the Composite Organization
Designed a composite organization
impact that Workspace can have on
based on characteristics of the
an organization. interviewees’ organizations.

Financial Model Framework

Constructed a financial model
representative of the interviews using
DISCLOSURES
Readers should be aware of the following: the TEI methodology and risk-adjusted
the financial model based on issues
This study is commissioned by Google and delivered by
Forrester Consulting. It is not meant to be used as a and concerns of the interviewees.
competitive analysis.
Case Study
Forrester makes no assumptions as to the potential ROI
Employed four fundamental elements
that other organizations will receive. Forrester strongly
advises that readers use their own estimates within the of TEI in modeling the investment
framework provided in the study to determine the impact: benefits, costs, flexibility, and
appropriateness of an investment in Workspace.
risks. Given the increasing
Google reviewed and provided feedback to Forrester, but sophistication of ROI analyses related
Forrester maintains editorial control over the study and its
findings and does not accept changes to the study that
to IT investments, Forrester’s TEI
contradict Forrester’s findings or obscure the meaning of methodology provides a complete
the study. picture of the total economic impact of
Google provided the customer names for the interviews purchase decisions. Please see
but did not participate in the interviews. Appendix A for additional information
on the TEI methodology.

TOTAL ECONOMIC IMPACT OF GOOGLE WORKSPACE 11

CUSTOMER JOURNEY

The Google Workspace Customer Journey

Drivers leading to the Workspace investment

Interviews
Number Of
Role Industry Region Revenue
Employees
Director of IT Retail EMEA 15,000 $1.5B

Head of IT Technology APAC 20,000 $3B

Head of emerging
Technology APAC 20,000 $3B
technologies

VP of operations Healthcare North America 35,000 $7.5B

Change management
Manufacturing Global 200,000 $60B
leader

Senior consultant Professional services Global 600,000 $30B

Key Challenges
Before their investment in Google Workspace, interviewees noted how their
organizations struggled with common challenges using their on-premises and
cloud-based legacy solutions, including:

• Lack of effective collaboration tools. Interviewees repeatedly

emphasized that they sought a tool that allowed all employees to
collaborate in real time more effectively with convenient communication
channels, easy access to information, and version control. The change
management leader in manufacturing said, “Like many companies, we had
a lot of bad habits — sending different copies as email attachments,
different versions of documents stored all over the place.” The head of
emerging technologies in technology said, “We needed to drastically
change the way we were doing online collaboration at the company.”

TOTAL ECONOMIC IMPACT OF GOOGLE WORKSPACE 12

CUSTOMER JOURNEY

• Time-consuming processes. Closely related to limitations around

collaboration, interviewees noted that both office and frontline workers
experienced inefficiency when conducting core tasks like searching for and
accessing information, communicating both internally and externally, and
working jointly on the same files. Moreover, interviewees explained that
several processes and workflows needed to be more automated so that
employees could focus on higher-value work, such as strategy, and
delivering high-quality products and services.

• Security and technical limitations. Interviewees described legacy

systems that required several third-party tools to ensure security. The VP
of operations in healthcare noted, “The biggest thing we were combating
were the security vulnerabilities in the [legacy] platforms.” Interviewees
also identified other technical limitations of their legacy products, such as
downtime during updates and email inboxes that quickly reached capacity.
This environment required the heightened attention of IT personnel.

• Need for tools to drive cultural transformation. Interviewees spoke of

needing collaboration and productivity solutions that supported
enterprisewide cultural transformation. Specific goals varied across
interviewees’ organizations but centered around greater connection
between office and frontline workforces, more innovation and revenue
generation, and a focus on cloud-based, digital approaches. The change
management leader in manufacturing sought tools that provided “an actual
opportunity to really change our ways of working.”

Composite Organization
Based on the interviews, Forrester constructed a TEI framework, a composite
company, and an ROI analysis that illustrates the areas financially affected. The
composite organization is representative of the six interviewees, and it is used to
present the aggregate financial analysis in the next section. The composite
organization has the following characteristics:

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CUSTOMER JOURNEY

Description of composite. The composite organization generates $4 billion in

annual revenue and employs 20,000 employees representing a wide variety of
job roles; 10,000 are in office roles and 10,000 are in frontline roles. Before
adopting Google Workspace, the composite organization relied on a set of legacy
productivity tools that left it struggling with limited collaboration capabilities, time-
consuming processes, and less robust security features.

Deployment characteristics. The composite organization adopts Workspace as

its primary productivity suite, making it available to all employees. For most
frontline workers, it is their first time using an enterprise productivity and
collaboration suite at the company. The composite implements Workspace over
six months. All 20,000 employees are Workspace users.

Key Assumptions

$4 billion in annual revenue

20,000 employees
Varying employee job roles: 10,000 in office
roles and 10,000 in frontline roles
All employees are Workspace users

TOTAL ECONOMIC IMPACT OF GOOGLE WORKSPACE 14

ANALYSIS OF BENEFITS

Analysis Of Benefits
Quantified benefit data as applied to the composite

Total Benefits

Present
Ref. Benefit Year 1 Year 2 Year 3 Total
Value

Atr Improved collaboration $19,890,000 $19,890,000 $19,890,000 $59,670,000 $49,463,486

Improved speed of
Btr searching for and finding $2,652,000 $2,652,000 $2,652,000 $7,956,000 $6,595,131
information
More efficient workflows
Ctr and decreasing application $3,494,400 $3,494,400 $3,494,400 $10,483,200 $8,690,056
development time
Enhanced security resulting
Dtr $495,000 $742,500 $990,000 $2,227,500 $1,807,438
in security tool cost savings
Enhanced security resulting
Etr in security team and IT $254,232 $254,232 $254,232 $762,696 $632,237
team productivity
Increase in incremental
Ftr $960,000 $960,000 $960,000 $2,880,000 $2,387,378
profit

Decommissioned legacy
Gtr $1,912,500 $1,912,500 $1,912,500 $5,737,500 $4,756,104
systems

Total benefits (risk-

$29,658,132 $29,905,632 $30,153,132 $89,716,896 $74,331,830
adjusted)

Improved Collaboration
Evidence and data. All interviewees emphasized that improved collaboration
was a top benefit of transitioning to Workspace and the collaborative capabilities
of the platform were significantly more robust than those of their legacy solutions.
They noted a wide array of improvements, such as AI automation, better and
faster communication, greater and easier information sharing, and improved use
of data, which were brought by Workspace. These improvements drove
collaboration, leading to significant time savings for office and frontline workers
alike. The time savings during collaborative activities due to Workspace varied at
interviewees’ organizations but was typically 30% and, in some cases, over 50%.

TOTAL ECONOMIC IMPACT OF GOOGLE WORKSPACE 15

ANALYSIS OF BENEFITS

• Interviewees reported that improved collaboration due to Workspace was

widespread across all types of workers. The change management leader in
manufacturing stated: “In the last survey we did, around 85% of our
employees said Workspace was improving their day-to-day collaboration.
… Approximately 60% of our workers are what we would call frontline
workers, either on the shop floor or visiting customers for maintenance. We
have several support functions as well — sales, marketing,
communications, and so on.”

• The AI functionality embedded in Workspace contributed to the improved

collaboration. The director of IT in retail explained, “Automatic completion
of sentences, translations, suggested calendar times, and suggested email
recipients based on historical trends are really useful and simplify daily
activities.” The VP of operations in healthcare added: “The AI capabilities in
Workspace are beneficial for quick email replies or automatic sentence
completion. Our team members have come to rely on them and probably
don’t even think about it anymore.”

• Interviewees said that the Workspace apps were well integrated, and their
functionalities worked smoothly in concert as employees executed their
daily tasks.

“If you really want to collaborate, there’s no

competition with Workspace — working on the
same Doc or Sheet together, tracking histories
and permissions, and so on. And everything is
available on mobile, so it’s seamless. I can
stay at home, at the office. There’s no changes
in the ways of working.”
DIRECTOR OF IT, RETAIL

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ANALYSIS OF BENEFITS

• Workspace brought about a cultural shift toward sharing more information

at interviewees’ organizations. The director of IT in the retail space said:
“Workspace changed the ways we are working in terms of collaboration —
sharing information, product presentations, documents, data in Sheets. For
sure, it’s a smarter way of working.”
• Several interviewees identified Drive as a key enabler of increased
collaboration. Employees saved time and ensured version control by
sharing files with Drive links, as opposed to email attachments or
traditional shared folder hierarchies. Drive offered flexibility as files could
be shared internally or externally and as view-only or with editing
privileges. The VP of operations in healthcare described the app as
collaborative and easy to use, concluding, “Google Drive single-handedly
is a game changer.”

• Version control was repeatedly highlighted as a benefit of Workspace. The

head of emerging technologies in technology explained: “We have version
control with Sheets, Docs, and Slides. No more merging files or emails
[back and forth]. We can also provide comments and assign tasks.” The
change management leader in manufacturing added: “One click of a
button, and you can bring someone into the document. This really breaks
down barriers. Co-editing is something the vast majority use.”

“I couldn’t give up Google Workspace. It all

goes right back to the collaboration capabilities
with Drive, Meet, Chat, and all the other apps.
I cannot imagine working without Workspace
now.”
VP OF OPERATIONS, HEALTHCARE

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ANALYSIS OF BENEFITS

• Chat, Meet, and Gmail became primary communication channels at

interviewees’ organizations, allowing both office and frontline workers to
continually collaborate and align on work using any device. Directors,
managers, and coworkers regularly used the apps to convey information
and get messages out, whether one-on-one or to larger groups.
Interviewees also noted that the apps kept workers connected and made
them feel more like a team.

• Employees utilized features in Meet such as voice captioning and

translations of the captions into a wide number of languages. Interviewees
said this facilitated communication, fostered inclusion, and added value to
the day-to-day operations of their organizations.

• Several interviewees explained that Workspace enabled collaboration

between frontline and officer workers, resulting in more efficient work. The
head of IT in technology said: “Workspace is more collaborative, and
developers understand what’s going on in the field. Developers and the
infrastructure guys can work together to build or maintain applications and
see what’s working well. Our teams have shifted to Google Chat spaces to
work faster. There’s a clear impact because of Workspace.”

“Chat is of tremendous value to the frontline

workers. It allows them to communicate with
each other regardless [of device], and it
provides a great vehicle for sharing information
with team members regardless of which shift
they work. Using Chat Spaces is incredibly
popular to enable team communication.”
VP OF OPERATIONS, HEALTHCARE

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ANALYSIS OF BENEFITS

• The director of IT in retail laid out how Workspace specifically benefited

individual frontline workers across several key metrics, stating,
“Engagement, inclusion, communication, transparency, retention — these
are the reasons why we are still using Workspace even after six years.”

• The same interviewee noted how store locations benefited from

Workspace: “We use Google Meet to connect headquarters to the shops.
The most important appointments for the shops, like monthly inventory or
expense deadlines, are in Calendar and everyone can access it.”

• Interviewees observed that the time savings was particularly beneficial

because employees tended to use it for higher-value work. Time previously
consumed by building slides, spreadsheets, and reports was instead often
dedicated to analyzing data and communicating presentations more
effectively.

• Workspace supported the interviewees’ organizations’ larger efforts to be

more data driven as it made data accessible so that multiple users could
benefit. Interviewees said information flowed smoothly and more detail and
data was available for employees to leverage.

30%
Improved efficiency for collaborative activities

Modeling and assumptions. Based on the interviews, Forrester assumes the

following about the composite organization:

• There are 10,000 users in highly collaborative roles that spend an average
of 8 hours a week in collaborative activities.

• There are 10,000 users in intermediately collaborative roles that spend an

average of 2 hours a week in collaborative activities.

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ANALYSIS OF BENEFITS

• Due to Workspace, users save 30% of their time spent in collaborative

activities.

• The productivity recapture rate for employees is 50%. Employees convert

50% of hours saved into productive time.
• The average fully burdened salary of employees is $30 per hour.

Risks. The benefit of improved collaboration will vary based on:

• The adoption rate of Workspace and the amount of time users spend in
collaborative activities.

• The tools used for collaboration prior to the implementation of Workspace.

• The average fully burdened salary of employees.

Results. To account for these risks, Forrester adjusted this benefit downward by
15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $49.5
million.

TOTAL ECONOMIC IMPACT OF GOOGLE WORKSPACE 20

ANALYSIS OF BENEFITS

Improved Collaboration

Ref. Metric Source Year 1 Year 2 Year 3

A1 Users in highly collaborative roles Composite 10,000 10,000 10,000

Time spent each week in collaborative

A2 Composite 8 8 8
activities using tools (hours)

A3 Users in intermediately collaborative roles Composite 10,000 10,000 10,000

Time spent each week in collaborative

A4 Composite 2 2 2
activities using tools (hours)

(A1*A2*52)+
A5 Organizationwide collaborative hours annually 5,200,000 5,200,000 5,200,000
(A3*A4*52)

Time saved in collaborative activities with

A6 Interviews 30% 30% 30%
Workspace

A7 Organizationwide hours saved with Workspace A5*A6 1,560,000 1,560,000 1,560,000

A8 Productivity recapture TEI standard 50% 50% 50%

Average fully burdened hourly salary for an

A9 TEI standard $30 $30 $30
employee

At Improved collaboration A7*A8*A9 $23,400,000 $23,400,000 $23,400,000

Risk adjustment ↓15%

Atr Improved collaboration (risk-adjusted) $19,890,000 $19,890,000 $19,890,000

Three-year total: $59,670,000 Three-year present value: $49,463,486

Improved Speed Of Searching For And Finding

Information
Evidence and data. Workspace made information easily accessible at
interviewees’ organizations and this — together with the platform’s advanced
search capabilities — allowed individual users to quickly find the files and
information they needed. Among interviewees who could quantify this benefit, on

TOTAL ECONOMIC IMPACT OF GOOGLE WORKSPACE 21

ANALYSIS OF BENEFITS

average, there was a time savings of 40% when searching for information with
Workspace.

• Interviewees described the search functionality of Workspace as strong

and able to quickly surface the information being sought. For example, the
VP of operations in healthcare said, “Workspace has made searching for
and finding information significantly easier … finding things that I can’t
seem to put my fingers on easily has probably gotten 75% easier.”
• The extent to which employees realized time savings depended on how
much they needed to search for information throughout their workweeks.
However, interviewees described the benefit as widespread because a
wide mix of roles, both office and frontline, required referencing earlier
conversations or existing documents.

• In some cases, the robust search functionality in Workspace was used to

foster an open culture, as it could facilitate broad and easy access to
documents for all employees across the organization.

The change management leader in manufacturing described how this

worked: “Before Workspace, we didn’t have a way of indicating a
document should come up in the search results for anyone at our
company. Now we’re able to do that. We’re trying to foster a culture where
you make this your default setting on each file, and you only restrict it if
you really need to. [Workers in all roles] don’t have to build something from
scratch; they can start with something already prepared.”

“Searching for information is absolutely faster

with Workspace. The search functionality is
excellent. The searching within Gmail, Calendar,
Docs, Drive, or Meet is much faster.”
SENIOR CONSULTANT, PROFESSIONAL SERVICES

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ANALYSIS OF BENEFITS

Modeling and assumptions. Based on the interviews, Forrester assumes the

following about the composite organization:

• There are 10,000 users who need to regularly search for and find
information, and they spend an average of 1 hour a week doing so.
• Due to Workspace, users save 40% of their time spent searching for and
finding information.

• The productivity recapture rate for employees is 50%. Employees convert

50% of hours saved into productive time.

• The average fully burdened salary of employees is $30 per hour.

40%
Reduction in time to search for and find information

Risks. The benefit of improved speed of searching for and finding information will
vary based on:

• The adoption rate of Workspace and the amount of time users spend
searching for and finding information.

• The search tools and approaches used prior to the implementation of

Workspace.

• The average fully burdened salary of employees.

Results. To account for these risks, Forrester adjusted this benefit downward by
15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $6.6
million.

TOTAL ECONOMIC IMPACT OF GOOGLE WORKSPACE 23

ANALYSIS OF BENEFITS

Improved Speed Of Searching For And Finding Information

Ref. Metric Source Year 1 Year 2 Year 3

Users who regularly search for and find

B1 Composite 10,000 10,000 10,000
information

B2 Average time spent per week searching (hours) Composite 1 1 1

B3 Organizationwide hours spent searching B1*B2*52 520,000 520,000 520,000

Time saved in searching for and finding

B4 Interviews 40% 40% 40%
information with Workspace

B5 Organizationwide hours saved with Workspace B3*B4 208,000 208,000 208,000

B6 Productivity recapture TEI standard 50% 50% 50%

Average fully burdened hourly salary of an

B7 TEI standard $30 $30 $30
employee

Improved speed of searching for and finding

Bt B5*B6*B7 $3,120,000 $3,120,000 $3,120,000
information

Risk adjustment ↓15%

Improved speed of searching for and finding

Btr $2,652,000 $2,652,000 $2,652,000
information (risk-adjusted)

Three-year total: $7,956,000 Three-year present value: $6,595,131

More Efficient Workflows And Decreasing Application

Development Time
Evidence and data. Some interviewees’ organizations included AppSheet as
part of their Workspace implementation, greatly increasing the speed of app
development. Additionally, as an easy-to-use, no-code platform, AppSheet
empowered the end users to build and modify apps. Though AppSheet was used
to create apps of all kinds, interviewees highlighted those that automated
processes and streamlined workflows. At interviewees’ organizations, AppSheet
led to 80% faster app development on average. Moreover, AppSheet and other

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ANALYSIS OF BENEFITS

Workspace apps improved the efficiency of defined workflows by 20%, although

this time savings varied significantly based on the use case.

• For interviewees’ organizations that added it to their Workspace plans, the

use of AppSheet was widespread. For example, one interviewee reported
that every month, over 300 AppSheet applications were developed, while
another reported that over 1,000 were actively used at their organization.
• The apps had multiple use cases, described as both enterprisewide and
niche, as teams across the organization created apps to suit their
purposes. Interviewees tended to highlight apps that orchestrated
workflows and provided significant time savings.

• The head of emerging technologies in technology discussed some specific

examples: “Over time we are getting more complex [in what we accomplish
with AppSheet]. We created an app that predicts cell outages due to
weather events. We were able to create an [internal employee] e-
commerce app. It’s end-to-end — from inventory to delivery, everything is
done through the app.”

“We have a lot of AppSheet success stories.

We have more than a thousand applications
actively deployed and in use. Different groups
and divisions are creating apps for their own
purposes. … We now have citizen development,
so they themselves can actually modify the
process and build their own app.”
HEAD OF IT, TECHNOLOGY

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ANALYSIS OF BENEFITS

• The same interviewee said AppSheet empowered the end user to create
apps, which often led to more effective solutions: “What AppSheet does is
focus on the real problem because the one who is creating the application
is the end user. They really understand the problem and they really
understand what needs to be solved.”

• The change management leader in manufacturing emphasized that

AppSheet benefited frontline workers as well: “AppSheet allows us to
automate a lot of processes on the shop floor. We have processes that
were previously manually done with paper, which are now being managed
with scanning a QR code on a smartphone, and it brings up a no-code
application that was written in AppSheet. All the data is then stored inside
Sheets. Those on the shop floor, on the factory floor, benefit.”

• The ease of using AppSheet made it more possible to test and innovate.
The head of IT in technology explained: “An underrated feature of
Workspace is you can prototype things faster. With AppSheet, we can
progressively launch an application. We can test it, and after a few days,
add more features once we understand the impact of the application.”

• Interviewees’ organizations without AppSheet could also streamline

workflows using core Workspace apps and noted several efficiencies that
were not possible in their prior environment. Examples included
improvements to workflows related to payroll, medical verifications, and the
distribution of supplies. The senior consultant in professional services said
process enhancements and attendant productivity gains ultimately
improved their organization’s competitive advantage.

Modeling and assumptions. Based on the interviews, Forrester assumes the

following about the composite organization:

• Each year, 30 apps are developed with AppSheet.

• Before the implementation of AppSheet, on average, it required 5,200

employee hours to develop an app (i.e., five FTEs working for six months).

• Due to AppSheet, there is an 80% reduction in the hours needed to

develop an app.

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ANALYSIS OF BENEFITS

• The average fully burdened salary of employees developing apps is $60

per hour.

• There are 10 defined workflows orchestrated with Workspace.

• Before the implementation of Workspace, executing each workflow
required an average of 20,800 employee hours annually (i.e., 10 FTEs).

• Due to Workspace, there is a 20% reduction in the hours needed to

execute the workflows.

• The average fully burdened salary of employees executing these

workflows is $30 per hour.

• The productivity recapture rate for employees is 50%. Employees convert

50% of hours saved into productive time.

80%
Faster app development with AppSheet

Risks. The benefit of more efficient workflows and decreasing application

development time will vary based on:

• The adoption rate of AppSheet and the number of apps developed.

• Tools and processes in place prior to the implementation of AppSheet to
develop apps.

• The number and types of workflows, the employee hours required to

execute them, and the extent to which Workspace is used.

• The optimization applied to workflows prior to Workspace.

• The organization’s ability to identify workflows that can be improved with
Workspace.

• The average fully burdened salary of employees.

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ANALYSIS OF BENEFITS

Results. To account for these risks, Forrester adjusted this benefit downward by
20%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $8.7
million.

“The combination of AppSheet, which allows

you to automate without any code, and then
the AI functionalities, which help automate
without needing to do anything, means that
there are a bunch of things that are more
efficient. … With the AI in Sheets, if you make
a mistake in a formula, it can fix it for you. It’s
obvious that this has a huge benefit.”
CHANGE MANAGEMENT LEADER, MANUFACTURING

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ANALYSIS OF BENEFITS

More Efficient Workflows And Decreasing Application Development Time

Ref. Metric Source Year 1 Year 2 Year 3

C1 Number of apps developed with AppSheet Composite 30 30 30

Average hours to develop an app before

C2 Composite 5,200 5,200 5,200
AppSheet (five FTEs working for six months)

C3 Hours to develop apps before AppSheet C1*C2 156,000 156,000 156,000

C4 Time saved to develop apps with AppSheet Interviews 80% 80% 80%

C5 Hours saved with AppSheet C3*C4 124,800 124,800 124,800

Average fully burdened hourly salary of an

C6 TEI standard $60 $60 $60
employee developing apps

C7 Workflows orchestrated with Workspace Composite 10 10 10

Average hours spent executing workflows (10

C8 Composite 20,800 20,800 20,800
FTEs)

Total time spent on workflows before

C9 C7*C8 208,000 208,000 208,000
Workspace

Reduction in in time spent on workflows after

C10 Interviews 20% 20% 20%
Workspace

C11 Hours saved on workflows with Workspace Composite 41,600 41,600 41,600

Average fully burdened hourly salary of an

C12 TEI standard $30 $30 $30
employee engaged in workflows

C13 Productivity recapture TEI standard 50% 50% 50%

More efficient workflows and decreasing (C5*C6*C13)+

Ct $4,368,000 $4,368,000 $4,368,000
application development time (C11*C12*C13)

Risk adjustment ↓20%

More efficient workflows and decreasing

Ctr $3,494,400 $3,494,400 $3,494,400
application development time (risk-adjusted)

Three-year total: $10,483,200 Three-year present value: $8,690,056

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ANALYSIS OF BENEFITS

Enhanced Security Resulting In Security Tool Cost

Savings
Evidence and data. All interviewees identified enhanced security as a key value
proposition of Workspace. Interviewees’ organizations were less reliant on their
third-party antispam, antiphishing, encryption, ransomware, and data loss
solutions given the superior security features built into Workspace. In some
cases, organizations retired security solutions after adopting Workspace and
realized cost savings.

• The senior consultant in professional services summarized: “Google

provides enhanced functionalities. Workspace is much more secure, and
[ever since implementation] we have not had any actual issues related to
security and related concerns.”

• Interviewees experienced a financial benefit from the enhanced security

with Workspace, as they could discontinue using and paying for third-party
solutions for antispam, antiphishing, and email encryption. Instead, they
were able to rely on the security built into Workspace.

• The director of IT in retail said: “We are using a lot of antiphishing from
Google and have found it very valuable. It’s included in Workspace and is
really powerful, strong, and simple to use and configure. It delivers new
features every week. It’s incredible, you don’t have to do anything.”

• The change management leader in manufacturing said of their

organization discontinuing its encryption solution, “We don’t have to
maintain that specific software or even that specific server that was
running the encryption keys because we can do that all in the Google
environment.”

• The same interviewee said their organization experienced no ransomware

or data loss with Workspace.

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ANALYSIS OF BENEFITS

“There was an ample amount of cost savings

because we removed spam-filtering solutions
that we were previously using. We just use the
Google spam-filtering solution. Another we
discontinued was for email encryption, which
was cumbersome. So, we decided to remove it
and just use the confidential mode within Google
and the native encryption of Workspace also.”
HEAD OF IT, TECHNOLOGY

Modeling and assumptions. Based on the interviews, Forrester assumes the

following about the composite organization:

• Due to the enhanced security of Workspace, third-party antiphishing

solutions are decommissioned over time. The cost savings from
decommissioning these tools is $250,000 in Year 1, $375,000 in Year 2,
and $500,000 in Year 3.

• Due to the enhanced security of Workspace, third-party encryption

solutions are decommissioned over time. The cost savings from
decommissioning these tools is $300,000 in Year 1, $450,000 in Year 2,
and $600,000 in Year 3.

Risks. The benefit of enhanced security resulting in security tool cost savings will
vary based on:

• The number and cost of third-party security solutions and what the
organization decides to decommission given the enhanced security of
Workspace.

• The security strategy and needs of the organization.

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ANALYSIS OF BENEFITS

“[In our experience,] Workspace is completely

ransomware resilient. We use it as the
backbone for our ransomware resilience plan.”
CHANGE MANAGEMENT LEADER, MANUFACTURING

Results. To account for these risks, Forrester adjusted this benefit downward by
10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $1.8
million.

Enhanced Security Resulting In Security Tool Cost Savings

Ref. Metric Source Year 1 Year 2 Year 3

D1 Decommissioned antiphishing solutions Interviews $250,000 $375,000 $500,000

D2 Decommissioned encryption solutions Interviews $300,000 $450,000 $600,000

Enhanced security resulting in security tool cost

Dt D1+D2 $550,000 $825,000 $1,100,000
savings

Risk adjustment ↓10%

Enhanced security resulting in security tool cost

Dtr $495,000 $742,500 $990,000
savings (risk-adjusted)

Three-year total: $2,227,500 Three-year present value: $1,807,438

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ANALYSIS OF BENEFITS

Enhanced Security Resulting In Security Team And IT

Team Productivity
Evidence and data. IT teams at interviewees’ organizations found it easy to
administer Workspace as it was straightforward to create and manage accounts,
integrate the platform with their active directories, onboard and offboard staff
members, and flag problem accounts. Additionally, single sign-on (SSO) provided
simplicity for IT as well as end users, and a lack of outages prevented downtime.
While it was not possible for interviewees to quantify all of these benefits,
interviewees did calculate a 90% reduction in the time needed to set up new
workstations and a 20% reduction in tickets on average.

• The setup of Workspace accounts, which was cloud-based and device-

agnostic, took considerably less time than with legacy solutions. One
interviewee, for example, quantified that with their legacy tools, a new
workstation could be set up in approximately 2 hours, but it only took 5 or
10 minutes with Workspace.

• Interviewees noted that there were far fewer technology issues with
Workspace compared to their legacy environments, and this similarly
translated into a time savings. For example, the senior consultant in
professional services reported: “There’s around a 20% reduction of tickets
with Workspace. Issues pertaining to the browser are very limited. Also,
issue resolution is much faster.”

• When there were issues, coworkers could often provide a quick solution.
The change management leader in manufacturing said: “Communities
have appeared inside Google Chat. If they have a problem with
Workspace, they’re asking the community and 90% of the time they’re
getting their answer.”

• Interviewees explained that Workspace empowered IT teams as it allowed

them to act quickly. For instance, an account could be deactivated
immediately when needed. Interviewees explained that not only Google
apps, but all of an employee’s apps could be deactivated by suspending
the Workspace account.

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ANALYSIS OF BENEFITS

“The administration of Google Workspace —

all I can call it is ‘easy.’”
VP OF OPERATIONS, HEALTHCARE

• The head of IT in technology said: “The security team can immediately

take action. Whether they need to suspend an account or somebody
requested it because they lost their phone, Workspace empowers them. It
gives them the liberty to take action immediately.”

• Single sign-on with Workspace further streamlined IT operations, as the

director of IT in retail described: “The IT department benefits in terms of
user management because we are leveraging the single sign-on. So, no
more user and password management. The IT people don’t need to create
a ton of users and passwords to maintain because everything is integrated
with the HR system and so on.”

• The head of IT in technology described how SSO benefited end users as

well: “SSO is powering almost all our applications. Our executives like it
because they don’t have to maintain passwords, they make just one. It
saves time and promotes proper sanity also.”

• Some interviewees noted that in their previous environments, every month,

some employees would not be able to work because systems were down.
In contrast, they described Workspace as highly reliable.

• The senior consultant in professional services reported: “We have not

faced any outages [with Workspace]. They have maintained the backend
infrastructure services at their end seamlessly. It’s a significant change
from the predominantly on-prem setup we used to have.” The head of IT in
technology added: “We can continuously work wherever we are. That
improves productivity a lot. There is no excuse anymore.”

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ANALYSIS OF BENEFITS

“Workspace provides the ability to work without

worrying about security — regardless of the
device, regardless of location, we don’t worry
about security. We can access information
anywhere, anytime.”
HEAD OF EMERGING TECHNOLOGIES, TECHNOLOGY

Modeling and assumptions. Based on the interviews, Forrester assumes the

following about the composite organization:

• Each year, 5,000 workstations are newly configured.

• The legacy productivity tool replaced by Workspace takes 2 hours on

average to configure on a workstation.

• Workspace takes 90% less time to configure.

• Each year, 2,080 hours (i.e., one FTE) are required for internal help desk
tickets related to the legacy product.

• With Workspace, there is a 20% reduction in tickets.

• The average fully burdened salary of employees executing these

workflows is $30 per hour.

Risks. The benefit of enhanced security resulting in security team and IT team
productivity will vary based on:

• The legacy product and how long it takes to configure on a new

workstation.

• How many tickets result due to the legacy product.

• The skill set of employees.

• The average fully burdened salary of employees.

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ANALYSIS OF BENEFITS

Results. To account for these risks, Forrester adjusted this benefit downward by
10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of
$632,200.

Enhanced Security Resulting In Security Team And IT Team Productivity

Ref. Metric Source Year 1 Year 2 Year 3

Number of employee work devices newly

E1 Composite 5,000 5,000 5,000
configured each year

Average time to configure devices with legacy

E2 Interviews 2 2 2
product (hours)

E3 Reduction in time to configure with Workspace Interviews 90% 90% 90%

Hours saved to configure devices with

E4 E1*E2*E3 9,000 9,000 9,000
Workspace

Time dedicated to internal help desk tickets

E5 Interviews 2,080 2,080 2,080
related to legacy product

E6 Reduction in tickets with Workspace Interviews 20% 20% 20%

Hours saved due to reduction in tickets with

E7 E5*E6 416 416 416
Workspace

E8 Total time saved with Workspace (hours) E4+E7 9,416 9,416 9,416

E9 Average fully burdened hourly salary TEI standard $30 $30 $30

Enhanced security resulting in security team

Et E8*E9 $282,480 $282,480 $282,480
and IT team productivity

Risk adjustment ↓10%

Enhanced security resulting in security team

Etr $254,232 $254,232 $254,232
and IT team productivity (risk-adjusted)

Three-year total: $762,696 Three-year present value: $632,237

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ANALYSIS OF BENEFITS

Increase In Incremental Profit

Evidence and data. Multiple interviewees said that Workspace supported
revenue generation at their organizations, noting that Workspace facilitated data
analysis and inventory management, led to better customer service, and enabled
innovation. One interviewee was able to quantify the revenue uplift, estimating
that certain revenue streams grew by between 1% and 2% due to Workspace.

• Some interviewees noted that in their organizations’ physical stores,

employees used Workspace apps such as Drive, Sheets, and AppSheet to
collaborate effectively, access data, and quickly optimize inventory counts
so that the stores’ offerings better met customer demand.

• Moreover, time savings brought by Workspace enabled employees to

focus on higher-value work that helped ensure store success. For
example, the head of emerging technologies in technology said: “With
introducing AppSheet, the intention is to eliminate time-consuming
administrative tasks so employees can focus on more valuable work like
analysis.”

• Workspace also facilitated better communication with customers, as store

employees could communicate with them directly on Workspace apps.
Additionally, frontline workers at one organization used AppSheet to build
an app that managed customer service queuing in the physical stores.
Interviewees noted that the process innovations and more effective
customer service encouraged business and ultimately supported revenue
generation.

“A percentage of revenue is coming from

innovation, and we believe that the move to
Workspace is helping put the tools in place for
us to be a more innovative company.”
— CHANGE MANAGEMENT LEADER, MANUFACTURING

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ANALYSIS OF BENEFITS

• Interviewees noted that for frontline workers specifically, Workspace

increased their sense of belonging to the digitization of the company and
provided them with tools to increase the quality of their work, which in turn
improved the quality of products and services and made customers more
likely to purchase.

• Interviewees ultimately tied the core Workspace benefits of greater

collaboration and security to revenue generation.
• The change management leader in manufacturing elaborated: “The
benefits we’re getting as a result of the transformation to Workspace are
really clear. We very concretely see that people are collaborating more. We
have fewer copies of data, meaning there’s less chance of someone
opening the wrong data source. We have better transparency. Whether it’s
increased productivity and churning out more [product], or increased
security, meaning we have less downtime on the shop floor. All of this, at
some point, will impact the bottom line.”

• The senior consultant in professional services added, “Workspace has

contributed to our culture of being more innovative, more dynamic.”

Modeling and assumptions. Based on the interviews, Forrester assumes the

following about the composite organization:
• The total annual revenue is $4 billion and the percentage of revenue
affected by Workspace is 20%.

• There is a 1.5% increase in this revenue stream due to Workspace.

• The operating margin is 10%.

1.5%
Revenue uplift for affected revenue streams

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ANALYSIS OF BENEFITS

Risks. The benefit of an increase in incremental profit will vary based on:

• The annual revenue and the percentage of revenue impacted by

Workspace.
• The processes and tools in place to increase revenue prior to Workspace.

• The ability to identify revenue-generating use cases for which Workspace

can be used.

• The operating margin.

Results. To account for these risks, Forrester adjusted this benefit downward by
20%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $2.4
million.

Increase In Incremental Profit

Ref. Metric Source Year 1 Year 2 Year 3

F1 Total revenue Composite 4,000,000,000 4,000,000,000 4,000,000,000

F2 Percentage of revenue affected by Workspace Interviews 20% 20% 20%

Dollar amount of revenue stream affected

F3 F1*F2 $800,000,000 $800,000,000 $800,000,000
(before Workspace)

Increase in this revenue stream due to

F4 Interviews 1.5% 1.5% 1.5%
Workspace

F5 Revenue uplift due to Workspace F3*F4 $12,000,000 $12,000,000 $12,000,000

F6 Operating margin Composite 10% 10% 10%

Ft Increase in incremental profit F5*F6 $1,200,000 $1,200,000 $1,200,000

Risk adjustment ↓20%

Ftr Increase in incremental profit (risk-adjusted) $960,000 $960,000 $960,000

Three-year total: $2,880,000 Three-year present value: $2,387,378

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ANALYSIS OF BENEFITS

Decommissioned Legacy Systems

Evidence and data. Upon adoption, Workspace served as the primary
productivity suite for employees at interviewees’ organizations. Interviewees’
organizations thus decommissioned various legacy productivity tools that were
replaced by Workspace and saved costs.

• Some interviewees’ organizations completely retired their legacy solutions

upon the implementation of Workspace. While adopting Workspace as
their primary solution and retiring most of the licenses for their legacy
products, others retained some solutions for certain employees to continue
to use at least for some time.

• The senior consultant in professional services explained: “Workspace

works with other products with interoperability. … There does not need to
be complete dependency on a particular vendor from the SaaS [software-
as-a-service] model perspective.”

• In some cases, Workspace was the first time providing a productivity suite
to frontline workers, so there was no corresponding cost savings from
decommissioning a legacy system for those users. However, the director of
IT in retail said, “The cost of Workspace [for frontline workers] is
sustainable compared to other products.”

“One of the most important cultural changes

with Workspace is we can work completely on
the cloud — we can have everything on the
cloud. I think for organizations that are looking
for a change from their on-prem environment,
Workspace will provide a much better option.”
SENIOR CONSULTANT, PROFESSIONAL SERVICES

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ANALYSIS OF BENEFITS

Modeling and assumptions. Based on the interviews, Forrester assumes that

the composite organization decommissions legacy systems after implementing
Workspace, saving $2.25 million dollars annually.

Risks. The benefit of decommissioned legacy systems will vary based on:
• The cost of legacy systems and how quickly they are decommissioned.

• The extent of decommissioning and whether any solutions are retained in

part.

Results. To account for these risks, Forrester adjusted this benefit downward by
15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $4.8
million.

Decommissioned Legacy Systems

Ref. Metric Source Year 1 Year 2 Year 3

G1 Cost of legacy systems Interviews $2,250,000 $2,250,000 $2,250,000

Gt Decommissioned legacy systems G1 $2,250,000 $2,250,000 $2,250,000

Risk adjustment ↓15%

Decommissioned legacy systems (risk-

Gtr $1,912,500 $1,912,500 $1,912,500
adjusted)

Three-year total: $5,737,500 Three-year present value: $4,756,104

Unquantified Benefits
Interviewees mentioned the following additional benefits that their organizations
experienced but were not able to quantify:

• Supported a connected and inclusive work community. Interviewees

offered several examples of Workspace strengthening connection and
inclusion at their organizations. For example, the VP of operations in
healthcare noted that workers communicated with ease on Chat, and
phone calls were replaced by Meet, which is more personal. They

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ANALYSIS OF BENEFITS

concluded: “Culturally, that’s been a major shift. … Connecting on a less

formal basis with managers and coworkers engenders some cultural
significance.”

Interviewees noted that Chat Spaces empowered various communities like

musicians and coders to come together during the COVID-19 pandemic
and has continued since then. Some organizations used Forms and
Sheets to poll frontline workers. The change management leader in
manufacturing noted several features in Workspace, such as captions in
Meet, support for Braille keyboards, and inclusive emojis, and added, “On
top of that, inclusivity requires silos to be broken down, which is happening
as a result of Workspace.”

• Improved employee experience and morale. Interviewees said the

increased connection also improved employee morale. Providing effective
and modern tools also enhanced the employee experience. For instance,
the director of IT in retail reported that employees said they work smarter
and faster with Workspace. Some interviewees said that, while they could
not measure it, they believed Workspace probably helped attrition.

Frontline and office workers often used Workspace apps in their private
lives already. Similarly, the senior consultant in professional services noted
broad familiarity with the products, including younger generations: “On the
personal level, employees heavily use Google products. That makes it
much simpler for them to learn. Also, most of the colleges and universities
are using Google products. For the next generation who are joining, it’s a
familiar platform. That’s an advantage.”

“When it comes to cultural transformation, we

need ways to make it a more inclusive [and]
collaborative environment. Google provides
tools to do both.”
CHANGE MANAGEMENT LEADER, MANUFACTURING

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ANALYSIS OF BENEFITS

• Improved onboarding and training for HR. Interviewees’ organizations

used Workspace to reduce the time to onboard by adding greater
digitization to the process. With a Google account, new employees could
receive the welcome pack digitally and sign and return documents. This
saved administrative time for both new employees and HR.

Some interviewees noted that Workspace unlocked training opportunities,

particularly for frontline workers. Interviewees used Meet for live events,
noting the Jamboard and whiteboard functionalities, while Gmail was used
to reach frontline workers better and direct them to training courses. The
director of IT in retail added: “Thanks to the Google ID, the frontline
workers have the chance to enter a ton of different platforms. We film
videos showing how to make and prepare [products and services],
maintain equipment, and so on. The content definitely helps the people feel
more empowered to do their job.”

Flexibility
The value of flexibility is unique to each customer. There are multiple scenarios in
which a customer might implement Workspace and later realize additional uses
and business opportunities, including:

• Enabling future cultural transformation. Interviewees said Workspace

positioned their organizations for continued cultural and digital
transformation into the future. The head of IT in technology said that
Workspace lived up to the expectation of helping drive cultural
transformation and that it inspired their attitude to solutions going forward
as they sought those that were like Workspace.

The head of emerging technologies at the same company said,

“Workspace is really part of how we were able to transition [the company]
to more digital collaboration.” Similarly, the change management leader in
manufacturing said, “From a cultural transformation perspective,
Workspace has been a key enabler.”

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ANALYSIS OF BENEFITS

Flexibility would also be quantified when evaluated as part of a specific project

(described in more detail in Appendix A).

“Whenever we use a solution now or are buying

a new solution, we are always looking into how
can that solution be more Workspace-like.”
HEAD OF IT, TECHNOLOGY

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ANALYSIS OF BENEFITS

Analysis Of Costs
Quantified cost data as applied to the composite

Total Costs
Present
Ref. Cost Initial Year 1 Year 2 Year 3 Total
Value
Htr Subscription costs $0 $5,117,500 $5,117,500 $5,117,500 $15,352,500 $12,726,465

Itr Internal labor costs $3,312,000 $414,000 $414,000 $414,000 $4,554,000 $4,341,557

Total costs
$3,312,000 $5,531,500 $5,531,500 $5,531,500 $19,906,500 $17,068,022
(risk adjusted)

Subscription Costs
Evidence and data. Interviewees’ organizations paid Google subscription costs
for the use of Workspace. These subscription fees were based on factors such
as the number of users, the scope of the implementation, and the inclusion of
any add-ons like AppSheet.
• There was some variance in the percentage of employees at interviewees’
organizations with Workspace accounts. At most organizations, all
employees had accounts; at one organization, around 20% had accounts.

• Subscription costs also varied based on whether users were in office or

frontline roles. The subscription costs for frontline workers tended to be
discounted.

Modeling and assumptions. To model this cost for the composite organization,
Forrester assumes:
• The composite pays $4,450,000 per year for the Workspace subscription
with AppSheet.

• Pricing may vary. Contact Google for additional details.

Risks. The subscription cost will vary based on:

TOTAL ECONOMIC IMPACT OF GOOGLE WORKSPACE 45

ANALYSIS OF COSTS

• The number of users, including how many are in office versus frontline
roles.

• The scope of the implementation, including any add-ons.

Results. To account for these risks, Forrester adjusted this cost upward by 15%,
yielding a three-year, risk-adjusted total PV (discounted at 10%) of $12.7 million.

Subscription Costs
Ref. Metric Source Initial Year 1 Year 2 Year 3
H1 Subscription costs Interviews $0 $4,450,000 $4,450,000 $4,450,000

Ht Subscription costs H1 $0 $4,450,000 $4,450,000 $4,450,000

Risk adjustment ↑15%

Htr Subscription costs (risk-adjusted) $0 $5,117,500 $5,117,500 $5,117,500

Three-year total: $15,352,500 Three-year present value: $12,726,465

Internal Labor Costs

Evidence and data. At interviewees’ organizations, a small group of employees
dedicated some of their time to implementing and managing Workspace, while
users spent a few hours getting to know the platform.
• Interviewees noted that the implementation of Workspace took three
months or longer. The size of the internal team dedicated to the
implementation varied but was most often five to 10 FTEs.

• Interviewees who could quantify the amount of internal labor required for
the ongoing management of Workspace estimated it was two to three
FTEs.

• Interviewees said Workspace was largely learned through use and that
end users on average only needed to dedicate a few hours to getting up to
speed with the platform.
Modeling and assumptions. To model this cost for the composite organization,
Forrester assumes:
• Eight FTEs are dedicated to the implementation of Workspace over the
course of six months.

TOTAL ECONOMIC IMPACT OF GOOGLE WORKSPACE 46

ANALYSIS OF COSTS

• Three FTEs are dedicated to the ongoing management of Workspace.

• The average fully burdened salary of employees dedicated to the

implementation and ongoing management of Workspace is $120,000 per
year.
• There are 20,000 users and, on average, they spend 4 hours learning and
getting comfortable with Workspace.

• The average fully burdened salary of users is $30 per hour.

Risks. The cost of internal labor will vary based on:

• The scope of the implementation.

• The skill set of employees.

• The average fully burdened salary of employees.

Results. To account for these risks, Forrester adjusted this cost upward by 15%,
yielding a three-year, risk-adjusted total PV (discounted at 10%) of $4.3 million.

Internal Labor Costs

Ref. Metric Source Initial Year 1 Year 2 Year 3
FTEs dedicated to implementation
I1 Interviews 8 3 3 3
and ongoing management
Average fully burdened annual
I2 TEI standard $120,000 $120,000 $120,000 $120,000
salary of FTE

I3 Length of implementation (months) Interviews 6

I4 Users Composite 20,000

Average user time spent learning

I5 and getting comfortable with Interviews 4
Workspace (hours)
Average fully burdened hourly
I6 TEI standard $30
salary of a user
(I1*I2*I3/12)+
It Internal labor costs $2,880,000 $360,000 $360,000 $360,000
(I4*I5*I6)+(I1*I2)

Risk adjustment ↑15%

Itr Internal labor costs (risk-adjusted) $3,312,000 $414,000 $414,000 $414,000

Three-year total: $4,554,000 Three-year present value: $4,341,557

TOTAL ECONOMIC IMPACT OF GOOGLE WORKSPACE 47

ANALYSIS OF COSTS

Financial Summary
Consolidated Three-Year, Risk-Adjusted Metrics

Cash Flow Chart (Risk-Adjusted) The financial results

calculated in the Benefits
Total costs Total benefits Cumulative net benefits
and Costs sections can be
$80.0 M used to determine the ROI,
Cash
flows

$70.0 M NPV, and payback period

$60.0 M for the composite
$50.0 M
organization’s investment.
Forrester assumes a yearly
$40.0 M
discount rate of 10% for
$30.0 M
this analysis.
$20.0 M
These risk-adjusted ROI,
$10.0 M
NPV, and payback period
values are determined by
-$10.0 M
Initial Year 1 Year 2 Year 3
applying risk-adjustment
factors to the unadjusted
results in each Benefit and
Cost section.

Cash Flow Analysis (Risk-Adjusted)

Present
Initial Year 1 Year 2 Year 3 Total
Value
Total costs ($3,312,000) ($5,531,500) ($5,531,500) ($5,531,500) ($19,906,500) ($17,068,022)

Total benefits $0 $29,658,132 $29,905,632 $30,153,132 $89,716,896 $74,331,830

Net benefits ($3,312,000) $24,126,632 $24,374,132 $24,621,632 $69,810,396 $57,263,808

ROI 336%

Payback <6 months

TOTAL ECONOMIC IMPACT OF GOOGLE WORKSPACE 48

Appendix A: Total Economic Impact
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.

Total Economic Impact Approach

Benefits represent the value delivered to the business by the product. The TEI
methodology places equal weight on the measure of benefits and the measure of
costs, allowing for a full examination of the effect of the technology on the entire
organization.

Costs consider all expenses necessary to deliver the proposed value, or benefits,
of the product. The cost category within TEI captures incremental costs over the
existing environment for ongoing costs associated with the solution.

Flexibility represents the strategic value that can be obtained for some future
additional investment building on top of the initial investment already made.
Having the ability to capture that benefit has a PV that can be estimated.
Risks measure the uncertainty of benefit and cost estimates given: 1) the
likelihood that estimates will meet original projections and 2) the likelihood that
estimates will be tracked over time. TEI risk factors are based on “triangular
distribution.”

PRESENT VALUE (PV)

The present or current value of (discounted) cost and benefit estimates given at an
interest rate (the discount rate). The PV of costs and benefits feed into the total NPV
of cash flows.

NET PRESENT VALUE (NPV)

The present or current value of (discounted) future net cash flows given an interest
rate (the discount rate). A positive project NPV normally indicates that the investment
should be made unless other projects have higher NPVs.

TOTAL ECONOMIC IMPACT OF GOOGLE WORKSPACE 49

RETURN ON INVESTMENT (ROI)
A project’s expected return in percentage terms. ROI is calculated by dividing net
benefits (benefits less costs) by costs.

DISCOUNT RATE
The interest rate used in cash flow analysis to take into account the time value of
money. Organizations typically use discount rates between 8% and 16%.
PAYBACK PERIOD
The breakeven point for an investment. This is the point in time at which net benefits
(benefits minus costs) equal initial investment or cost.

The initial investment column contains costs incurred at “time 0” or at the

beginning of Year 1 that are not discounted. All other cash flows are discounted
using the discount rate at the end of the year. PV calculations are calculated for
each total cost and benefit estimate. NPV calculations in the summary tables are
the sum of the initial investment and the discounted cash flows in each year.
Sums and present value calculations of the Total Benefits, Total Costs, and Cash
Flow tables may not exactly add up, as some rounding may occur.

TOTAL ECONOMIC IMPACT OF GOOGLE WORKSPACE 50

Appendix B: Endnotes

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.

TOTAL ECONOMIC IMPACT OF GOOGLE WORKSPACE 51