New Study Examines the Total Economic Impact of Adopting Cloud Business Phone Systems
Study Finds that RingCentral Provides Substantial Savings, Delivers Improved Capabilities, and Increases Revenue by Customer-Facing Employees
San Mateo, Calif. – July 24, 2014 – RingCentral, Inc. (NYSE: RNG), a leading provider of cloud business phone systems, has announced the release of a new Total Economic Impact™ (TEI) study examining the potential return on investment (ROI) that companies may experience by adopting RingCentral. Forrester Consulting, an independent marketing and technology consulting firm, conducted the commissioned study on behalf of RingCentral. Forrester interviewed a set of companies to form a framework, composite company and ROI analysis. Forrester found that RingCentral enables companies to increase efficiency, productivity, ROI and thus boost revenue for customer-facing employees.
Forrester concluded that by using RingCentral for a composite organization of 600 employees, a three-year, risk-adjusted return on investment (ROI) of 182% could be expected with a payback period of less than two months. Based on interviews with RingCentral customers which migrated from on-premise PBX systems, the study showed that when companies replaced voice services, fax services, web conferencing and video conferencing with RingCentral, they eliminated the need for multiple vendors and simplified their technology solutions.
The key benefits highlighted in the Forrester TEI study were the following:
Provides Substantial Cost Savings. Eliminating PBX systems, software, and maintenance along with standardizing fax services, web conferencing, and videoconferencing onto RingCentral eliminated more than $1.6 million in costs over three years.
Leverage RingCentral integration with salesforce.com. Using the standard RingCentral integration with salesforce.com allowed the composite organization to avoid development and maintenance costs of $95,200.
Increase revenue of customer-facing employees. Making employees more accessible to customers increased the average revenue per customer-facing employee by 4%, providing more than $5.3 million in increased revenue, and a total of $683,681 increased profit over three years.
Prior to coming to RingCentral, the target study companies had typically invested in expensive upgrades for PBXs and regularly paid technicians to keep the systems up and running. The study’s financial analysis found that after switching to RingCentral they saved $512,070 over PBX systems, $95,200 from RingCentral’s CRM system integration and customer-facing employees increased their revenue by $5.3 million. Forrester also included 5-15% risk adjustments in all their savings and revenue findings.
To read the full study please visit https://go.ringcentral.com/total-economic-impact. The TEI study conducted by Forrester Consulting was commissioned and funded by RingCentral. RingCentral has not independently verified the findings of the TEI study. Actual ROI results and the benefits experienced by companies adopting RingCentral’s solutions may vary from the results of the TEI study and described in this release.
The localized version of this report for the UK can be found here - https://go.ringcentral.com/total-economic-impact .
RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud-based business communications solutions. Easier to manage and more flexible than on-premises communications systems, RingCentral’s cloud solution meets the needs of modern distributed and mobile workforces, while eliminating the expense and complications of on-premises traditional hardware-based systems and software. RingCentral is headquartered in San Mateo, Calif.
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For additional information,
Jennifer Dong 650-288-0485