The Total Economic Impact™ Of Microsoft Azure AI

By Alan Strakey
March 11, 2024
Solutions:

AI is becoming more prevalent, but have you considered the financial impact it could have on a company? Discover the insights from a recent Forrester analysis that delves into the potential ROI and advantages enterprises may realize by deploying Azure AI.

The Total Economic Impact™ Of Microsoft Azure AI

AI plays a crucial role for businesses of all sizes, aiming to create unique experiences and applications faster than ever while cutting costs and shifting development-related skills. Customer interest is rising, as nearly half of IT channel partners have recently reported receiving inquiries about AI and large language models).

 

However, most IT channel partners are still in the early stages of exploring AI, eager to discover how this technology can cut costs, automate tasks, and introduce new or enhanced services to clients and customers within a short timeframe, from investment to value realization.

 

A 2023 commissioned Forrester Consulting Total Economic Impact™ study sheds light on the advantages, expenses, and potential risks of implementing Microsoft Azure AI. This study offers valuable insights for Azure partners seeking to leverage opportunities in the AI space.

 

Cost Savings and Business Benefits Enabled by Azure AI 

Drawing from interviews with decision-makers at organizations utilizing Azure AI, the study underscores how investments in AI drive revenue growth, optimize costs, automate manual processes, enhance operational efficiency, and phase out outdated technology. Forrester compiled insights from the customer interviews and combined the results into a single composite organization.

 

Partners can use these measurable discoveries to assist their clients in understanding the advantages, expenses, and risks linked to this investment and achieving business success through cutting-edge AI solutions.

 

  • Work output increased 150 percent – Businesses utilizing Azure AI have seen an increase in revenue due to higher business activity, improved customer acquisition and retention, and the creation of new products and services. Over three years, Azure AI has generated profits exceeding $12.5 million.
  • Efficient spending led to a 7 percent cost reduction – Companies can optimize around 1 to 2 percent of their total operating costs by automating manual tasks, reducing errors, and streamlining operations. As a result, they have achieved a 7 percent reduction in expenditure by the third year. This cost-saving measure amounts to $16 million over a three-year period.
  • Enhanced operational effectiveness – Azure AI provided the tools, techniques, and frameworks for building, training, and validating machine learning models, boosting productivity by 25 percent and decreasing document processing errors by 60 percent. These savings translate into more than $1 million across a three-year period.
  • Phasing out outdated technology – Companies saved $57,000 by replacing legacy systems with Microsoft Azure's pay-as-you-go cloud licensing model.

Azure partners can use the Forrester study as a guide to maximize the profitability of implementing Azure AI solutions for their clients. By grasping the measurable advantages and intangible benefits of Azure AI, partners can customize their services to tackle business obstacles and boost progress in the AI-driven economy.

 

Explore the interactive version of this study to input personalized data and estimate your potential ROI.