Service Automation Value by the Numbers at Equinix

The benefits of moving to cloud-based service automation are clear and understood – consolidating disparate tools, streamlining administration and workflows, as well as reducing on-premise infrastructure are among the benefits we regularly hear from users. But what can be more difficult to ascertain and track are the quantitative benefits, the hard dollars saved, that impact the operational budget and the company’s bottom line. So what numbers should IT management look at, and what data do executive teams need in order to make the most informed technology decisions?

Equinix, a global data center and interconnect services provider headquartered in the Silicon Valley, a ServiceNow customer since mid-2010, worked together with IDC, a leading industry analyst firm, to crystalize the benefits of its service automation investment. Through a series of interviews with Equinix IT management, IDC utilized its proven methodologies to form a detailed analysis and published report on the average annual benefits over five years, the actual time to payback of the ServiceNow investment and the Return on Investment (ROI).

IDC’s analysis and projections of the ServiceNow implementation at Equinix are extremely compelling:

  • IDC found that Equinix is realizing benefits at an average annual rate of $850,120 from deploying ServiceNow. These benefits include increased productivity or streamlined administration of business operations, IT administration and compliance efforts as well as projected infrastructure cost reductions.
  •  According to IDC, Equinix will realize a discounted total benefit of $2.97 million over the projected five years.
  •  IDC projects Equinix will realize a five-year ROI of 365%
  •  The payback period of the Equinix investment in ServiceNow is just 7.7 months.

Based on the five-year projections that began in 2011 for Equinix, IDC’s analysis provides a broad view of the quantitative benefits. Eric Fisch, Senior Applications Release Manager at Equinix provides additional feedback on the ServiceNow implementation within the IDC report, stating, “We have 2,500 users who are gaining productivity from support resolving issues more quickly because they are getting data up front with ServiceNow to fulfill those requests.”

And the company is implementing service automation benefits beyond IT, “Equinix is also leveraging ServiceNow to create efficiencies outside IT, such as in its Facilities, HR, and Finance departments,” according to the IDC report.

As the opportunities to extend service automation use cases increase across the enterprise, the ability to reap increased hard dollar benefits should follow suit. What an excellent example for the IT organization to demonstrate its modern service-orientation! How do you think (or know) your ITSM solution stacks-up ‘by the numbers’?

Please click here to download the IDC report, “Equinix Increases IT and Employee Productivity with ServiceNow Cloud-Based IT Service Automation Solution.”

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