IDC Report Reveals 1,250% ROI for Micromuse's Netcool Suite Customers.Business Editors & High-Tech Writers SAN FRANCISCO--(BUSINESS WIRE)--April 29, 2002 Micromuse Inc. (Nasdaq: MUSE) Extensive Study Shows Netcool(R) Drives Increased Revenues By Improving IT Productivity and Reducing Business Downtime The time during which a computer is not functioning due to hardware, operating system or application program failure. Micromuse Inc. (Nasdaq: MUSE), the leading provider of business and service assurance software, today announced the results of IDC's in-depth study of global enterprise and service providers utilizing the Netcool(R) solution. The study, titled "Quantifying the Benefits of Business & Service Assurance," found that Micromuse customers' savings from increased productivity and efficiency averaged $58.7 million per year. The Netcool payback Payback The length of time it takes to recover the initial cost of a project, without regard to the time value of money. for each customer surveyed averaged approximately 64.9 days, yielding an average return on investment (ROI (Return On Investment) The monetary benefits derived from having spent money on developing or revising a system. In the IT world, there are more ways to compute ROI than Carter has liver pills (and for those of you who never heard of that expression, it means a lot). ) of 1,250% per customer. These numbers substantiate To establish the existence or truth of a particular fact through the use of competent evidence; to verify. For example, an Eyewitness might be called by a party to a lawsuit to substantiate that party's testimony. the Netcool suite's ability to enhance business and IT productivity, provide higher service availability and reduce revenue lost to downtime. "New business and service management applications must be able to provide businesses with greater service availability and increased performance while helping reduce cost through improved IT staff efficiency," said Elisabeth Rainge, Director, Next-Gen OSS Oss (ôs), city (1994 pop. 62,141), North Brabant prov., S Netherlands; chartered 1399. It is a significant industrial center. Manufactures include meat products, chemicals, pharmaceuticals, electrical equipment, and metalware. , Billing and Network Management at IDC, and one of the authors of the report. "Management solutions, such as the Netcool suite, help companies to recover their initial outlay in a very short time by enabling service providers and enterprises alike to quickly adjust IT operations to support new services and initiatives." IDC interviewed Netcool enterprise and service provider customers worldwide. To quantify the business benefits and determine the ROI of deploying the Netcool suite, IDC asked IT operations teams about costs, revenue and specific IT processes, including associated time and staffing requirements before and after deploying the Netcool solution. Key findings of the IDC report include: - Higher service availability. For the companies surveyed, the reduction in direct revenue lost from downtime plus the additional revenue attributed to deployment of the Netcool solution, averaged a little more than $18.3 million annually (over three years). - Improved business productivity. With Netcool, the savings in user productivity from reduced downtime averaged $11.8 million per year. - Increased IT staff productivity. With Netcool, an organization's improved staff productivity equaled an average savings of $8.3 million per year. Project-related cost savings and annual payroll savings from increased user and IT staff efficiency averaged almost $20.3 million. - The time dedicated for IT admin and support dropped from an average of 89.34 hours per month per full-time employee to 71.68 hours after deploying Netcool. Netcool customers interviewed noted the main reason for deploying the Netcool suite is to have one product for correlating data from all systems. Scalability and ability to support growth was another key factor cited in the report. Other motivations include the need for higher service availability, more efficient and proactive operations, lower mean-time-to-repair, alarm filtering In network management, the ability to pinpoint the device that has failed. If one device in a network fails, others may fail as a result and cause alarms. Without alarm filtering, the management console reports all deteriorating devices with equal attention. and reduction, fault aggregation and consolidation, and ability to support best-of-breed equipment from different vendors. ROI in Action A joint venture between Hutchison Whampoa Hutchison Whampoa Limited or HWL (Traditional Chinese: 和記黃埔有限公司, HKSE: 0013 and Asia Global Crossing, Hutchison GlobalCenter Limited provides managed hosting services, along with operational and implementation assistance. Since deploying the Netcool suite in 1999, Hutchison GlobalCenter needs to deal with only one vendor, so the time it takes to fix a problem has been reduced by almost 50%, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the IDC report. Higher service availability contributes directly to Hutchison GlobalCenter's top line, since less revenue is lost to downtime. Netcool applications help the company's customers gain a competitive advantage in terms of quality of service and the range of services that they are able to offer, as well as minimize downtime. By presenting information on the status of systems and network performance, the Netcool suite provides several areas of value to Hutchison GlobalCenter, particularly in cost savings and reducing time to market for new service. By monitoring service The general surveillance of known air traffic movements by reference to a radar scope presentation or other means, for the purpose of passing advisory information concerning conflicting traffic or providing navigational assistance. performance, the Netcool suite allows service providers to offer profitable tiered services Tiered services is business jargon for providing a service (such as telecom connectivity or cable channel service) according to separate, incrementally distinct quality and pay levels, or "tiers." The term has current usage in the debate over network neutrality. and avoid costly penalties for breaching service level agreements. Netcool increases service and performance availability by helping reduce revenue lost to downtime, which increases customer satisfaction and minimizes customer churn. Likewise, Netcool applications help enterprises adjust quickly and inexpensively to network changes prompted by mergers and acquisitions, or new business goals and priorities. The study results appear in the IDC white paper, "Quantifying the Benefits of Business & Service Assurance," which can be found at http://www.micromuse.com/literature/white_papers.html. About the Netcool Suite Micromuse's Netcool(R) software suite provides businesses with the assurance that their networks, services and applications are working. By allowing our customers to see what's happening throughout the infrastructure in realtime, Netcool applications enable them to respond to problems before they cause network-based business services to go down. Netcool suite applications install out-of-the-box, deploy rapidly and scale as networks grow. Micromuse's flagship, Netcool/OMNIbus(TM) application, includes a library of off-the-shelf software modules that allow our customers to collect and consolidate fault information from more than 300 popular environments spanning voice and IP, cable/broadband, switches and routers, and enterprise management systems. About Micromuse Micromuse Inc. (Nasdaq: MUSE) is the leading provider of service and business assurance software. Micromuse's recent list of awards include the Crossroads A-List Award for Best IP Network Diagnosis Product for the Netcool(R)/Visionary(TM) application. In addition, Micromuse was recently recognized in the Forbes 500, Bloomberg's Tech 100, the Barron's 500, the Business Week Info Tech 100, Deloitte & Touche's Technology Fast 500, the San Francisco Chronicle The San Francisco Chronicle was founded in 1865 as The Daily Dramatic Chronicle by teenage brothers Charles de Young and Michael H. de Young.[2] The paper grew along with San Francisco to become the largest circulation newspaper on the West Coast of the 500 and Network World's NW200. Micromuse customers include AT&T, BT, Cable & Wireless, Cellular One, Charles Schwab Charles Schwab can refer to:
ITC n abbr (BRIT) (= Independent Television Commission) → DeltaCom, J.P. Morgan Chase, One 2 One and Verizon. Headquarters are located at 139 Townsend Street, San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , Calif. 94107; (415) 538-9090. The Web site is at www.micromuse.com. Micromuse and Netcool are registered trademarks of Micromuse Ltd. All other trademarks and registered trademarks in this document are the properties of their respective owners. Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. as that term is defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Any forward-looking statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties. The factors that could cause actual future results to differ materially from the forward-looking statements include the following: fluctuations in customer demand, the Company's ability to manage its growth (including the ability to hire sufficient sales and technical personnel), the risks associated with the expansion of the Company's distribution channels, the risk of new product introductions and customer acceptance of new products; the rapid technological change which characterizes the Company's markets, the risks associated with competition, the risks associated with international sales as the Company expands its markets, and the ability of the Company to compete successfully in the future, as well as other risks identified in the Company's Securities and Exchange Commission Filings, including but not limited to those appearing under the caption "Risk Factors" in the Company's most recent Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. and on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. on file with the Securities and Exchange Commission and available on the Company's Web site. |
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