Zdnet Make The Case Series:: It Business Case Template: Make The Case For Desktop Operating System Upgrades

ZDNet Make the Case Series:
IT Business Case Template:

Make the Case for Desktop Operating System Upgrades
All names and brands are property of their respective owners.

Copyright (c) 1995-2004 CNET Networks, Inc. All rights reserved.
Table of Contents
General Introduction .............................................................................................................. 2
I. Need/Opportunity ....................................................................................................... 3
II. Stakeholders ................................................................................................................ 4
III. Alternatives.............................................................................................................. 4
IV. Business values for the alternatives..................................................................... 13
V. Recommendation....................................................................................................... 14
Product Description .............................................................................................................. 16
Glossary ................................................................................................................................. 17
I. Need Opportunity ..................................................................................................... 17
II. Stakeholders .............................................................................................................. 17
III. Alternatives............................................................................................................ 17
IV. Business Values for the Alternatives ................................................................... 20
V. Recommendation....................................................................................................... 21
Copyright (c) 1995-2004 CNET Networks, Inc. All rights reserved. 1

11
General Introduction
When IT budgets tighten up, organizations may be tempted to cut some basic, but necessary
expenses, such as deploying desktop operating system upgrades. While delaying procurement and
deployment may save the organization initial expenses, it will decrease end-user productivity and
increase long-term desktop maintenance costs. In addition to lost productivity, an organization may
be at risk to supporting different operating system versions if it must unexpectedly buy new end-user
machines that come with the most recent version. Supporting multiple operating system versions can
quickly increase help desk headaches and result in slower service time.
Before you decide to rollout a desktop operating system upgrade, the enterprise should address
some essential questions:
• Are the security features in the upgrade essential to our business operations?
• How much longer will the vendor continue to support our existing version(s)?
• Will the upgrade provide our IT staff with more effective support and deployment features?
• Are there client interoperability issues?
• Will legacy applications (especially 16-bit) function with the upgrade?
• Does the new version support our existing hardware assets?
• Is it prudent for the enterprise to invest in an operating system upgrade at this point in our
hardware life-cycle?
• How much end-user training will be required?
• Would the enterprise benefit from operating system standardization?
• Does the upgrade provide some essential features that will increase end-user productivity?
As you make your case for enterprise-wide operating system upgrades, consider these key points:
• Lower support and maintenance costs because of centralized manageability tools

• Guaranteed vendor support and release of regular updates
• Increased desktop performance
• Leverage logon-based features for customized desktops
• Greater native functionality
• Lockdown directories and files to increase security
• Provide an opportunity to audit software license compliance
• Decreased training time for end users
• Increased support for multimedia formats
• Provide an opportunity to standardize desktop hardware and system images for easier
maintenance and desktop deployment
Upgrading desktop operating systems provides an opportunity for an organization to adopt some
additional enterprise-wide IT best practices, including standardization of end-user operating systems,
auditing software licenses, and training end users on new features that will make them more
productive.
This business case will walk you through the opportunities, costs, associated risks, and alternatives
when making the case for desktop operating system upgrades. However, the template may need
customization. Each organization is likely to have unique challenges and opportunities that the
business case should address.

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I. Need/Opportunity
Key technical and business objectives for upgrading desktop operating systems:
A. Tangible goals or objectives
1. Hardware
• Cost-effective system management
• Easier support for peripheral equipment, such as printers and scanners
• Improve end user service with native remote troubleshooting technologies
• Improved support for universal serial bus (USB) and FireWire connections
• Native support for CD burners and other external storage devices
2. Software Applications
• Improved support for third-party, business applications
• Improved support for anti-virus technology
• Eliminate interoperability issues
3. Operating Systems
• Cost-effective deployment and maintenance
• Allow for more efficient management of system and PC resources
• Improved security and stability
• Easier rollout vendor security patches and updates, as well as third-party
tools, such as desktop anti-virus protection or remote desktop management
tools
• More cost effective end user support (For example, Remote Assistance in
Windows XP allows help desk analysts to diagnose problems faster.)
• Increased support for mobile technologies may be native to operating system
• Reliable system restores and data recovery features
• Provides an opportunity to standardize desktop operating environments and
system images, which can provide economies of scale
• Easier for help desk staff to share expertise
• Easier to calculate end-user desktop needs
• More effective security management
• Increase operating system-level security
B. Scope
Impact and benefits from upgrading desktop operating systems:
Cost Reduction
• Reduced desktop management costs
• Better management of software licenses
• Avoid hidden maintenance costs that can increased TCO
• Easier management of operating system vendor upgrades
• Reduced learning curve for end user training
• Reduced costs for software development efforts
• IT staff can share expertise and reduce support costs

33
Improved end user support
• Decreased training time because of interface familiarity
• Improved operating system-level security
• Better native support for anti-virus or personal firewall software/features
• More effective data and document recovery features
• Increased end-user productivity
• Improved desktop performance, such as faster rebooting and greater stability
Easier desktop maintenance

• New features can improve troubleshooting (for example, Remote Assistance in Windows*
XP allows help desk analysts to diagnose problems faster.)
• Consolidate desktops on a single operating system platform or system image
• Configure network connections easier
II. Stakeholders
A. Primary
• Executives and managers who must reduce desktop maintenance costs
• Executives and managers who must reduce desktop deployment costs
• Executives and managers who must rollout desktop updates to a large organization
B. Secondary
• End users who need a reliable and updated desktop operating system
III. Alternatives
A. No change
If the current desktop operating system can successfully meet end-user demands, no
change might be the right choice for the enterprise.
1. Hardware
a) Cost
Even if not considering desktop upgrades, other costs may be incurred under
the status quo, including:
• Sub-optimal performance and speed
• Excessive costs for maintenance and management of existing
systems
• Possible increased cost if need to upgrade in the future
• Installed operating system (Microsoft Windows specifically) might be
considered an OEM component and retired when a PC is
decommissioned
• Regular wear-and-tear hardware maintenance
• Purchase new hardware as needed

44
b) ROI
Savings from immediate expenditures must be weighed against the following
points:
• Higher long-term costs of system management and upgrades
• Diminished or no Return on Investment (ROI)
• Loss of employee productivity due to inadequate desktop
performance
• Loss of employee productivity because business critical applications
will not function with outdated operating system
c) Risk
• Diminished residual value of existing assets
• Expiration of warranties and technical guarantees
• Inability to keep up with industry standards
• Costly upgrades
• Poor end-user support
• Increased desktop management and support costs
• Loss of vendor support for installed version
• Unreliable/unstable desktop operating environment
• Inability to use most recent office productivity tools
• Inadequate driver support for printers and other external devices
• Vendor discontinues support for installed version
• Existing hardware assets may not be adequate
2. Software
a) Cost
• Increased third-party upgrade costs
• Management costs associated with keeping the system current and
secure (patches, updates, etc.)
• Loss of third-party or mission-critical application support for older
versions of the operating system
• Data or document conversions
• Interoperability maintenance requirements/costs
b) ROI
Savings from immediate expenditures must be weighed against the following
points:
• Inefficient application upgrades
• Inefficient software development process because developers must
accommodate older and/or multiple operating system versions
• Problems supporting applications on inconsistent operating platforms
c) Risk
• Adverse effect on end-user productivity
• Limited/discontinued support for legacy applications from
vendors/developers
• Falling behind industry standards

55
• Inability to catch up with early adopters that have already realized a
competitive advantage
• Operating system incompatibility issues when new versions of the
software are released
a) Cost
• Licensing/maintenance cost for existing software
• Other upfront and monthly/annual costs paid directly to vendors
• Management costs associated with keeping the system current and
secure (patches, updates, etc.)
• Costly future upgrade requirements
• Managing operating system licenses
• Increased long-term support and maintenance costs
• Third-party data recovery and restore tools
• Purchase of third-party security tools
• Supporting multiple operating systems across the enterprise
b) ROI
Savings from immediate expenditures must be weighed against the
following points:
• Costly upgrades
• Inefficient rollout of service packs and updates
c) Risk
• Lowered enterprise productivity and efficiency
• Adverse effect on productivity of employees
• Poor network security because of multiple desktop operating system
versions
• Inability to purchase more licenses of installed version
• Vendor discontinues support for installed version
B. Delay Upgrade Deployment
1. Hardware
d) Cost
• Postponing desktop operating system upgrades will have similar
costs as the No Change option, although these costs will diminish
after deployment
e) ROI
following points:
• Delayed upgrade deployment will place the organization at a
competitive disadvantage

66
• Loss of employee productivity due to suboptimal desktop
performance
f) Risk
• Diminished residual value of old hardware assets
• Higher disposal/decommissioning costs in the future for old hardware
assets
• Higher upgrade costs in the future
• Exposure to sudden changes in macroeconomic conditions, such as
exchange rate fluctuations, new legislation, etc.
• Safeguarding supply/availability of hardware when purchased at a
later time
• Managing/scheduling additional personnel to oversee upgrade
deployment
• Other operational/financial considerations when upgrade deployment
is deferred to a later time (such as management commitment,
availability of funds, etc.)
• Lose ground to competitors that maximize desktop productivity
through operating system upgrades
4. Software
a) Cost
• Postponing desktop operating system upgrades will have similar
costs as the No Change option, although these will diminish once the
deployment is complete
b) ROI
• Delayed deployment means that the organization might face difficult
upgrade cycles
• Struggle supporting applications across multiple desktop operating
environments
• Face difficult deployment of new applications and have to support
multiple operating systems and versions
c) Risk
• Higher implementation and support costs in the future
• Exposure to sudden changes in macroeconomic conditions such as
• Managing/scheduling availability of personnel to oversee upgrade
deployment
• Other operational/financial considerations when procurement is
deferred to a later time (such as management commitment,
availability of funds, etc.)
• Loss of competitive advantage to organizations that deploy operating
system upgrades

77
a) Cost
• Postponing operating system upgrade deployment will have similar
costs as the No Change option, although these will diminish once the
upgrade deployment is complete
b) ROI
following points:
• Costly upgrades
• Inefficient roll out of service packs and updates
c) Risk
• Reduced operating system performance
• Adverse effect on productivity of employees
• Poor network security due to maintaining multiple operating systems
• Safeguarding supply/availability of software when purchased at a
later time
C. Outsourcing
List the possible vendors for outsourcing services. Solutions may be layered and come
from multiple vendors, or may be a single solution from one vendor. For each platform
and alternative consider:
1. Hardware
d) Cost
• Initial and monthly/annual costs paid directly to vendor for hardware
procurement and maintenance
• Incremental fees for upgrades
• Charges for storing equipment at vendor's site
• Remote management costs (related hardware and software tools,
network connectivity/bandwidth)
• Cost of arranging and managing contracts/service agreements with
vendors
• Administrative, communication, and other related costs in
coordinating with vendors
• Changeover costs from status quo
• Purchase new hardware as needed
e) ROI
• Is the short-term savings over outsourcing adequate?
• Does the tradeoff in spending operational or capital funds make
sense for the organization?
f) Risk
• Risk of lock-in/dependency on vendor

88
• Service provider's failure to meet the organization's expectations and
requirements
• Insufficient legal identity/capacity of vendor
• Deficient/questionable financial viability
• Inadequate technical capability, experience, dependability, reliability,
and flexibility of vendor
• Risk of physical compromise when moving technology off-site
• Poor security/risk management policies and procedures on the part
of the vendor (physical security, hardware locks, environmental
controls, etc.)
• Limited control in upgrade deployment
• Limited recourse in case problems arise
• Other unforeseen costs/risks that can lower ROI
6. Software
a) Cost
• Initial and monthly/annual costs paid directly to vendor for software
procurement and maintenance
vendors
• Training vendor on any proprietary technology that might be involved
• Cost of devising remote/risk management strategies
• Conversion or changeover costs from status quo
• Data or document migration
b) ROI
• Does the tradeoff in spending operation or capital funds make sense
for the organization?
c) Risk
• Service provider's failure to meet client's expectations/requirements
• Deficient legal identity/capacity of vendor
• Deficient/questionable financial viability of vendor
• Loss of intellectual property
• Deficient security/risk management policies and procedures on the
part of the vendor (management of system vulnerabilities, virus
protection, application access controls, etc.)
• Limited control in upgrade deployment
• Limited recourse in case of problems

99
7. Operating System
a) Cost
• Initial and monthly/annual costs paid directly to vendor for operating
system procurement and maintenance
• Remote management costs (related hardware and software tools,
network connectivity/bandwidth)
vendors
• Cost of devising remote/risk management strategies
b) ROI
• Does the tradeoff in spending operation or capital funds make sense
for the organization?
c) Risk
• Service provider's failure to meet client's expectations/requirements
• Deficient legal identity/capacity of vendor
• Deficient/questionable financial viability of vendor
• Potential loss of intellectual property
• Deficient security/risk management policies and procedures on the
part of the vendor (management of system vulnerabilities, virus
protection, access controls, etc.)
• Limited control in deployment
• Limited recourse in case of problems
D. Build
1. Software
d) Cost
• N/A
e) ROI
• N/A

1010
f) Risk
• N/A
E. Buy
Ask prospective operating system vendors about the following:
1. Hardware
g) Cost
• Hardware and system requirements
• Insurance costs where applicable
• Freight, transport and delivery cost
• Installation and commissioning costs
• Inventory-holding, maintenance and management costs
• Foreign-exchange costs
• Applicable duties and taxes
• Cost of end-user training
• Cost of administrative personnel
• Cost of current hardware reconfiguration
• Decommissioning and disposal costs for obsolete hardware
• Other related costs for changeover or conversion from existing
systems or platforms
• Costs associated with capital budget planning
• Cost of spares/backups
• Depreciation costs
• Total cost of ownership (TCO)
• Hiring external expertise to assist with upgrade deployment
h) ROI
The cost of buying are weighed against the relative savings of the following
alternatives:
• No Change
• Waiting
• Outsourcing
i) Risk
• Firmness of price
• Pricing for associated or follow-on orders
• Provision for cost containment (including any formulas to contain or
reduce costs)
• Foreign-exchange risks
• Management of payment terms
• Length of the supply chain and its vulnerability to disruption
• Weaknesses of vendors’ individual hardware (in terms of
performance, scalability, functionality, etc.)
• Conformity with delivery, installation and commissioning
requirements
• Management of warranties, technical guarantees

1111
• Product liability arrangements
• Compliance with health and safety requirements
• Maintenance and durability of purchased hardware
• Unforeseen upgrades and maintenance costs will lower ROI
• Interoperability with other hardware platforms
• Adverse impact on budgets allotted for non-IT capital spending over
the short-term
8. Software
a) Cost
• Licensing/support and maintenance costs
• License management costs
• Cost of software reconfiguration/upgrades
• TCO
• Cost of end-user training
• Existing applications compatible with operating system upgrade
b) ROI
The cost of buying are weighed against the relative savings of the
following alternatives:
• No Change
• Waiting
• Outsourcing
c) Risk
• Onerous licensing terms
• Interoperability with other software platforms
• Software vulnerabilities, backdoors
reduce costs)
• Weaknesses of vendors’ individual software (in terms of
performance, scalability, functionality, etc.)
• Conformity with installation and customization requirements
• Management of warranties, technical guarantees
• Product liability arrangements
the short-term

1212
9. Operating System
a) Cost
• Licensing/support and maintenance costs
• License management costs
• Cost of reconfiguration/migration
• TCO
• Cost of training
• Cost to migrate operating systems if necessary
b) ROI
The cost of buying are weighed against the relative savings of the
following alternatives:
• No Change
• Waiting
• Outsourcing
c) Risk
• Onerous licensing terms
• Inability to run legacy applications
• Interoperability with other operating system platforms
• Software vulnerabilities and backdoors
reduce costs)
the short-term
IV. Business values for the alternatives

A. ROI
For each platform component (hardware, software, operating system), assess
costs/savings in terms of:
1. Tangible returns
• Weigh the upgrade deployment alternatives to discover which best meets the
objectives specified in this business case
• Incremental revenue/cost savings
• The increase in revenue likely to be seen from each alternative
• The savings in cost likely to be seen from each alternative
• The actual time period for the company to receive the additional revenue or
cost savings stemming from alternatives.

1313
2. Return on capital
Aside from the returns expected from the capital investment, other benefits may
be realized as well from upgrade deployment, such as an increase in
productivity, or streamlined maintenance and a reduction in operating costs
3. Cost of capital
Short-term costs may include:
• Hardware
• Software
• Staffing requirements
Long-term costs include:
• Depreciation of capital investments
• Cost of maintenance including monthly/annual charges, if any
• Cost of management, upgrades and maintenance
• Costs associated with risks involved
B. Customer satisfaction
The criteria for customer satisfaction for the stakeholders include:
• Guaranteed business continuity and security
• Enhanced productivity
• Improved efficiency
• Increased business agility and flexibility
• Improved competitive advantage
• Lower management and maintenance costs
• General feedback of IT staff and other company employees
C. Resources and roles

• In-house resources involved in each solution, if applicable
• Outsourced resources involved in implementing each solution, if applicable
D. Timetable/Time to market
The timeline specified in the project implementation to fulfill the solutions in the company
V. Recommendation
Weigh recommendation against the business values of the alternatives based on:
A. ROI
Costs/Savings in terms of:
1. Tangible returns
• Weigh the upgrade deployment alternatives to discover which best meets the
objectives specified in this business case
• Incremental revenue/cost savings
• The increase in revenue likely to be gained from each alternative
• The savings in cost likely to be realized from each alternative
• The actual time period for the company to receive the additional revenue or
cost savings stemming from alternatives
• More revenue opportunities

1414
2. Return on capital
Aside from the returns expected from the capital investment, other benefits may
be realized as well from upgrade deployment, such as an increase in
productivity, or streamlined maintenance costs leading to a reduction in operating
costs
3. Cost of capital
Short-term costs may include:
• Hardware
• Software
• Staffing requirements
Long-term costs include:
• Depreciation of capital investments
• Cost of maintenance including monthly/annual charges, if any
• Cost of management, upgrades and maintenance
• Costs associated with risks involved
B. Customer satisfaction
The criteria for customer satisfaction for the stakeholders include:
• Guaranteed business continuity and security
• Increased business responsiveness
• Improved competitive advantage
• Lower management and maintenance costs
• General feedback of IT staff and other company employees
C. Resources and roles

• In-house resources involved in each solution, if applicable
• Outsourced resources involved in implementing each solution, if applicable
D. Timetable/Time-to-market
The timeline specified in the project implementation to fulfill the solutions in the company

1515
Product Description
[In this section include product information, performance specs, cost comparisons, charts,
graphs, etc., to support your business case for the product you’ve selected.]

1616
Glossary
Introductory paragraph
The introduction gives a brief background or overview of the product/service being evaluated.
I. Need Opportunity
This section explains why the product or service is needed, including productivity and cost issues.
A. Tangible goals or objectives

The purpose or desired end-result. In the business case this section identifies what company
and business needs, problems or issues the proposed product or service can address.
B. Scope
This defines the reach or extent of the topic or idea being discussed. In the business case,
this section identifies the potential impact of the proposed product or service on existing
systems and staff. Potential benefits and risks associated with project deployment are also
identified.
II. Stakeholders
Those individuals who have a share or interest in a particular endeavor or organization. In the
business case, this section identifies those individuals and departments within the organization that
will be directly and indirectly affected by the product or solution being discussed in the business case.
A. Primary
The stakeholders who directly realize efficiencies, revenues, and/or a competitive advantage
are considered Primary stakeholders. Those departments or individuals implementing the
new systems and services are also Primary stakeholders.
B. Secondary
The Secondary stakeholders are those who depend on, or will be affected by, the actions of
the Primary stakeholders.
III. Alternatives
The Alternatives section weighs the various routes to reaching the specified goals and fulfilling the
needs of the stakeholders

1717
A. No Change
This section observes the costs and benefits of not addressing the issue(s) outlined in the
Needs/Opportunity section.
1. Cost
The actual price to be paid or resources to be expended. Measured by identifying
and quantifying the price paid or resource expended (examples are time consumed
or money spent).
2. Return on Savings
Measure of income the company is able to earn from money not spent or expended.
In this particular section, the savings realized by not implementing the product or
service is weighed against:
• Whether the issue to be addressed is expected to become a larger or
smaller problem
• The length of time it would take to break even or to see a positive return
with the No Change alternative.
3. Risks
Expected loss. Risks may include issues detailed in the Cost section as well as
intangible risks, such as employee annoyance with current system or morale issues.
B. Delay Procurement/ Implementation

This option explores the costs and benefits of implementing a solution at a future date, rather
than as soon as possible.
1. Costs
While there are no direct purchasing costs in the short-term, deferring implementation
can potentially create similar issues found in the Cost section for the No Change
alternative.
2. ROI
Income earned from company assets. In this section, the short-term savings of not
implementing the product or service are weighed against the cost of waiting to
determine the break-even point and the length of time it takes to see a return on
investment.

1818
3. Risks
This section explores the likelihood that serious problems would arise while waiting to
implement the new product or service and the costs the firm would need to absorb if
problems did occur.
C. Outsourcing
Having the work done by an outside service provider or manufacturer usually to cut costs or
realize greater efficiencies.
1. Costs
For this section examples would include upfront and monthly/annual costs to be paid
to vendors, the cost of making existing systems and/or processes compatible with the
service provider’s solution, and the cost of the company’s implementation time.
2. ROI
To evaluate the ROI for this alternative, costs and benefits of the other alternatives
must be examined and compared with Outsourcing costs and benefits.
3. Risk
The potential weaknesses of the service provider/vendor’s solution and additional
costs that may be incurred because of those weaknesses are examined in this
section.
D. Build
Developing the product or service in-house.
1. Costs
The costs in developing include the organization’s time to evaluate, design, build,
and operate the product or service.
2. ROI
The ROI result weighs the cost of using in-house resources to build and maintain the
product/service plus the initial capital cost against the savings realized from the other
alternatives.
3. Risks
This includes the quantifiable likelihood of loss, the possibility that the project will go
unfinished or take extra time because of unforeseen or competing priorities.

1919
E. Buy
To purchase outright and have the company manage the product or service on their own.
1. Cost
The charges in buying a product/service, such as upfront monthly/ annual costs paid
to the vendor, the cost of implementation time, and other costs.
2. ROI
The ROI is the cost of buying weighed against the relative savings from other
alternatives.
3. Risks
Risks may include the possible losses that may be incurred from the purchased
product or service and unforeseen maintenance and upgrade costs.
IV. Business Values for the Alternatives

A. ROI
1. Tangible returns
These are the measurable or quantifiable benefits from each alternative.
2. Incremental revenue
The additional revenue or income that may be earned from each alternative is
discussed in this section.
3. Return on Capital
The income that may be earned or savings that may be realized from the investment
(in this case the proposed product or service).
4. Cost of Capital
The cost of the funds used to finance the company’s investment (such as interest).
The goal is to invest in assets that offer a higher return than the cost that may be
incurred to finance those assets.

2020
B. Customer Satisfaction
Measure of how the company is able to meet or exceed customer’s and/or stakeholders
needs and expectations.
C. Resources and Roles

Defines the in-house and/or outsourced resources needed for each alternative.
Based on each alternative, the time line to launch the product or service is planned.
V. Recommendation
A. ROI
This section includes the
• Costs and savings in terms of tangible returns
• Incremental revenue
• Return on Capital
• Short-term costs
• Long-term costs
B. Customer Satisfaction
Criteria to determine customer satisfaction may speak to the needs of the company’s internal
stakeholders as well as external customers. However, the criteria may be unique to each
business case.
C. Resources and Roles

This section designates the in-house and the outsourced resources needed for each
alternative, if applicable.
Based on each alternative, the time line to launch the product or service is outlined.

2121
About ZDNet Make the Case Series
The Make the Case Series is a collection of business case tools that
covers a broad range of enterprise IT technologies and topics. Many
of these tools are developed in a vendor-neutral fashion. However,
for sponsored business cases, IT vendors have the opportunity to
present the benefits and advantages of their technology solutions in
a specific IT category. For more information about ZDNet’s Make
the Case Series, email us at zdnetcustomers@cnet.com.

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All names and brands are property of their respective owners.

Copyright (c) 1995-2004 CNET Networks, Inc. All rights reserved. 1

• Lower support and maintenance costs because of centralized manageability tools

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A. Tangible goals or objectives

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Easier desktop maintenance

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B. Delay Upgrade Deployment

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IV. Business values for the alternatives

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C. Resources and roles

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C. Resources and roles

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A. Tangible goals or objectives

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B. Delay Procurement/ Implementation

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IV. Business Values for the Alternatives

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C. Resources and Roles

C. Resources and Roles

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