Forrester Total Economic Impact™ study: Microsoft Fabric delivers 379% ROI over three years
Analytics are a cornerstone for businesses in today’s rapidly evolving digital economy. They help companies make better decisions, improve operational efficiency, and, ultimately, achieve a competitive edge.
Microsoft Fabric is a comprehensive analytics solution designed to empower organizations to harness the full potential of their data. It’s designed to streamline the process of data management, helping companies understand, reason over, learn from, and act on their data seamlessly and efficiently while making data more accessible to various roles across the business.
To better understand the financial impact that Fabric is having on companies today, Microsoft commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study which examines the potential return on investment (ROI) enterprises may realize by deploying Fabric. The purpose of the 2024 study is to provide readers with a framework to evaluate the potential financial impact of Fabric on their organizations. Below is a summary of what we’ve learned.
Maximizing value with Microsoft Fabric
In today’s data-driven business landscape, executives are constantly seeking solutions that not only streamline operations but also deliver substantial financial returns. The Total Economic Impact™ (TEI) study of Microsoft Fabric provides a deep analysis of the benefits and costs associated with deploying Fabric.
Based on interviews with companies currently using Fabric, Forrester constructed a composite company and an ROI analysis that illustrates the areas financially affected. The composite organization is representative of the interviewees, and it is used to present the aggregate financial analysis. The composite organization has the following characteristics:
- The global organization has $5 billion in annual revenue and 10,000 employees.
- This includes 40 data engineers and 400 business analysts.
- Prior to deploying Fabric, the composite organization leveraged multiple tools and systems to store, access, and analyze data, including Azure Synapse solutions and Microsoft Power BI.
- In the first year, Fabric is rolled out to 50% of the business, increasing to 85% in the second year and 100% in the third year.
See the study for additional assumptions specific to each impacted area of the business.
Key findings
The TEI report reveals a considerable ROI of 379% for the composite organization that deployed Fabric. This figure is a testament to the significant cost savings and business benefits enabled by the solution. The net present value (NPV) of $9.79 million underscores the substantial financial gains that can be realized over time, making a strong case for the investment in Fabric from a fiscal standpoint.
Productivity gains and efficiency
One of the standout benefits highlighted in the study is an increase in data engineering productivity of 25%. This gain stems from a 90% reduction in the time data engineers spend searching, integrating, and debugging, and translates to savings of $1.8 million for the composite organization. Furthermore, business analyst access and output are improved by 20%, leading to an additional $4.8 million in savings. These productivity enhancements not only represent direct financial benefits but also indicate a more efficient and effective approach to data management and analysis.
Enhanced business outcomes
The ability to leverage better insights from high-quality data leads to enhanced business results, with increases profits to the tune of $3.6 million. This point is particularly relevant for C-suite executives, as it emphasizes the impact of data-driven decision-making on the bottom line. The study’s findings suggest that with Fabric, businesses can provide faster and better answers to key questions, resulting in better-informed strategic decisions and improved financial performance.
| Enhanced Business Results Due To Better Insights | ||||||
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
| B1 | Annual revenue before Fabric | Composite | $5,000,000,000 | $5,000,000,000 | $5,000,000,000 | |
| B2 | Revenue improvement due to Fabric | Interviews | 0.50% | 0.50% | 0.50% | |
| B3 | Average net margin | Composite | 10% | 10% | 10% | |
| B4 | Percent benefit achieved due to rollout timing | Interviews | 50% | 85% | 100% | |
| Bt | Enhanced business results due to better insights | B1*B2*B3*B4 | $250,000 | $2,125,000 | $2,500,000 | |
| Risk adjustment | ↓25% | |||||
| Btr | Enhanced business results due to better insights (risk-adjusted) | $937,500 | $1,593,750 | $1,875,000 | ||
| Three-year total: $4,406,250 | Three-year present value: $3,578,137 | |||||
Employee satisfaction and retention
The TEI study also touches on the human aspect of technology deployment, noting an 8% reduction in attrition. This suggests that Fabric not only contributes to the financial health of an organization but also to employee satisfaction and retention. For executives, the implications are clear: investing in Fabric can help attract and retain top talent, which is crucial for long-term success.
Cost savings on infrastructure
By eliminating outdated infrastructure and consolidating technologies, organizations can save up to $779,000 over three years. This direct cost savings is highly relevant for those who are tasked with optimizing expenses. The report indicates that Fabric allows for a more streamlined tech stack, reducing the need for multiple servers, virtual machines, and analysis services.
Unquantified benefits and flexibility
In addition to the quantified benefits above, the study mentions several less measurable advantages, such as enhanced analytics creativity, improved alignment between technical and business teams, and heightened attention to correct data governance. These benefits, while not easily assessed in financial terms, contribute to the overall value proposition of Fabric.
The flexibility offered by Fabric is another aspect that business leaders might find appealing. The solution’s ability to adapt to various business scenarios and its potential to incorporate underutilized data for better decision-making are significant considerations for any executive evaluating technology investments.
What is Microsoft Fabric?
Fabric integrates several core workloads, including data engineering, data warehousing, data science, and real-time intelligence—all under one roof. This consolidation facilitates a seamless flow of data across different stages, from collection to analysis, enabling businesses to derive actionable insights swiftly.
The platform’s strength lies in its ability to unify disparate data sources, providing a cohesive view of information that can drive strategic decisions. With Fabric, companies can break down data silos, enabling a more collaborative and informed approach to business intelligence. Fabric’s real-time intelligence capability is particularly beneficial for industries that generate vast amounts of data continuously. It allows for immediate processing and analysis, ensuring that businesses can respond to market changes with agility.
In terms of user experience, Fabric offers a software as a service (SaaS) model that simplifies onboarding and provides a cost-effective solution for companies at any scale. Its user-friendly interface democratizes data analytics, making it accessible to non-experts and fostering a culture of data-driven decision-making.
By leveraging Microsoft Fabric, companies can not only achieve more with their data but also enjoy increased productivity, enhanced collaboration, and significant cost savings. It’s a strategic investment that aligns with the goals of modern, forward-thinking businesses aiming to capitalize on their data assets.
Explore the benefits of Fabric
The TEI study of Microsoft Fabric presents a strong case for its deployment, with compelling ROI numbers and a multitude of benefits that extend beyond financial returns. For executives, the study underscores the strategic value of Fabric in driving productivity, efficiency, and enhanced business outcomes. As organizations continue to navigate the complexities of the digital economy, solutions like Fabric that offer a comprehensive approach to data analytics management will be pivotal in gaining and maintaining a competitive edge.
Get started today
- Read the Total Economic Impact™ (TEI) study.
- Watch our Fabric webinar “Getting Started with Microsoft Fabric in 60 Minutes.”
- Learn more about Microsoft Fabric.
- Try Microsoft Fabric for free.
- Join us for the European Fabric Community Conference.
