One of our clients—a large worldwide consulting company—recently acquired an Enterprise license for DBE Software’s Database Examiner for internal use. This is their assessment of the justification for the acquisition.
The company operates in more than 100 countries and provides consulting services to both commercial and government clients. The group that evaluated and recommended the acquisition is responsible for the implementation of internal systems only.
The group is responsible for the data modeling of the internal applications and consists of 40 senior analysts, spread over many countries. The average salary for the team is $75K per year with a total direct cost of approximately $100K, including the burden.
They have over 100 databases to deal with, and of these, about 40% are in the initial creation phase with the balance in maintenance phases. The average number of tables is 150 tables per data model.
The objectives of this group are:
About every two weeks the company has a review process to evaluate the development of the data models for both new projects and projects in maintenance. The entire team participates in the process. This is a 3 day session. It is comprehensive, exhaustive work, taking more than the normal 8 hour day. There are 20 review sessions in a calendar year.
Numerous database professionals from the company downloaded the product for testing. The evaluation period for Examiner was 3 weeks while they performed many tests.
During the evaluation, the company tested an essential corporate database that was plagued with performance issues. Examiner, in seconds identified over 150 performance related issues. After these issues were corrected, the performance of the application surpassed their performance benchmark. This one incident was paramount in the decision to acquire Examiner on an enterprise wide basis.
Further findings of the review included:
The company concluded that by using Examiner they will save one team day in every review process session.
| Cost of the team | (per day) | 40 analysts x $ 100,000 | = $ | 16,000 |
| 250 days | ||||
| 1 year savings | (cost of the team per day x 20 sessions) | 20 x $ 16,000 = | $ | 320,000 |
| 5 years savings | 5 x $ 320,000 = | $ | 1.6 Million | |
| System cost | Initial License (1 year maintenance) | $ | 100,000 | |
| Maintenance for 4 additional years | (4 x $ 20,000) = | $ | 80,000 | |
| $ | 180,000 | |||
| 5 year ROI | ($1,600,000 / $180,000) | 880 % | ||
| Savings over 5 years / Total Cost | ||||
| Timeline | Recover the initial investment | 3 months | ||
| Recover entire investment in | ~ 6 months |
The company also estimated some huge additional savings that are impossible to precisely calculate: