Q

Can you give an ROI example for calculating UCaaS costs?

Telecom expert Tom Nolle explains how to calculate UCaaS costs in this ROI example taking the hospitality and government sectors into account.

Can you provide an ROI example to calculate UCaaS costs from the perspective of a particular vertical, like the hospitality or government sector?

Generally the ROI process doesn't change depending on the vertical market you're in, but the parameters might change. The biggest variable is the target rate of return for a project -- the level of ROI that must be achieved in order to justify the project. This doesn't impact how you calculate, but what result you'd be looking for.

Some companies will ask for a specific ROI formula too, a formula that presumes a given cost of money, risk premiums, and so on. The chief financial officer or controller can provide the specific formula, and you can use the techniques described in my UCaaS ROI formula article to fill in the values that are project-specific.

Finally, where ROI calculations involve manpower savings, as is nearly always the case for UCaaS, it may be necessary to consider union contracts or other factors that limit the extent to which workforce can actually be reduced or the pace at which the reduction can occur. Both these are true in the government and hospitality sectors. To learn more about calculating UC or UCaaS ROI, read this article on communications-enabled business process ROI.

Have a question for our expert panel? Email editor@searchunifiedcommunications.com.

This was first published in August 2013

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