In today’s competitive business landscape, a Cybersecurity ROI Calculator for IT Asset Management (ITAM) can be pivotal for achieving cost savings and boosting operational efficiency. This white paper introduces a comprehensive ROI calculator designed to help organizations improve their IT asset management and cybersecurity practices. By focusing on capital expenditures (Capex) and operational expenditures (Opex), this model demonstrates how enhanced hardware (HW) asset visibility and accuracy deliver significant financial returns and bolster cybersecurity.
Benefits of Effective IT Asset Management
IT asset management is an essential practice that involves the oversight and risk management of IT assets across an organization. Effective ITAM strategies ensure optimal asset utilization, compliance, and governance, while minimizing risks and costs associated with IT assets. However, achieving a high level of IT asset visibility and accuracy can be challenging (IoT Inventory).
This article presents a Cybersecurity ROI Calculator that quantifies potential savings and efficiencies from enhanced ITAM practices. Importantly, these savings are even higher when considering the potential damages from a cyber attack. As shown below, even excluding security aspects, the ROI remains positive.
How the ROI Calculator for IT Asset Management Works
The ROI calculator is divided into two main sections: capital expenditures (Capex) and operational expenditures (Opex) savings (Capex vs Opex). It incorporates variables such as hardware cost, depreciation period, maintenance cost coefficients, and the annual cost of Full-Time Equivalents (FTEs) associated with ITAM tasks.
The model calculates annual savings from improved budget allocation, Hardware inventory accuracy, maintenance cost savings, and operational efficiency gains.
- Capex Savings Calculation
- Hardware Cost (C1)
- Depreciation Period (P1)
- Improved Hardware Budget Allocation (P2)
- Improved Hardware Asset Inventory Count (P3)
- Annual Capex-Related Cost Savings (T1): (C1/P1)*(P2+P3)
- Opex Savings Calculation
- Maintenance Cost Coefficient (O1)
- Improved Accuracy of Hardware Asset Count (A0)
- Annual Maintenance Cost Savings (T2): C1*O1*A0
- Host Count Based Cybersecurity Expense (O2)
- Improved Accuracy of Host Count (A1)
- Annual Saving on Security Products (T3): O2*A1
- Annual Cost of Full-Time Equivalent (FTE) Associated with ITAM (C2)
- ITAM Process Streamlining Effect on FTE (A2)
- Annual Saving on FTE Resources (T4)
ROI Calculator Case Study: A 5000 Employee Organization
To illustrate the effectiveness of the Cybersecurity ROI Calculator, consider a hypothetical organization with 5,000 employees. The organization implemented the calculator with the following parameters:
- Capex: A total annual Capex-related cost savings of $300K was identified.
- Opex: The model calculated Opex-related annual savings of $200K across maintenance, cybersecurity, and FTE resource optimizations.
By investing $150K in enhancing ITAM practices, the organization estimated total annual cost benefits of $500K. This results in an impressive ROI of 3.33, indicating that for every dollar spent, the organization receives over three dollars in return.
Financial Savings and Operational Efficiency with ITAM
The Cybersecurity ROI Calculator for IT Asset Management highlights that investing in asset visibility and accuracy not only enhances operational efficiency but also delivers significant financial returns. Organizations can leverage this model to justify investments in ITAM solutions and improve their asset management practices.
For example, a company that previously struggled with managing hardware costs found that using the Cybersecurity ROI Calculator allowed them to streamline their processes, reduce wasted expenditures, and significantly lower their cybersecurity risks.
About Sepio
Sepio is at the forefront of ITAM innovation, providing solutions that offer unprecedented visibility and accuracy in asset management. By optimizing ITAM practices, Sepio helps organizations unlock significant cost savings and operational efficiencies. For further information on implementing the Cybersecurity ROI Calculator within your organization or to learn more about Sepio’s solution, please contact us.
