We are pleased to share the findings of a Forrester Consulting Total Economic Impact™ (TEI) study that evaluates the cost savings and business benefits enabled by Snowflake’s cloud data platform. Snowflake commissioned the study to gain insight into the return on investment we’re delivering for customers and learn how we can serve them better.
Forrester researchers took a multistep approach to evaluating the impact that Snowflake can have on an organization, including interviews with four existing Snowflake customers to gather data on costs, benefits, and risks, as well as risk-adjusted financial modeling. They created a composite organization based on the interviewed companies that deployed Snowflake could expect to experience benefits worth over $21.5 million and incur costs of $3 million over a three-year period. This adds up to a net present value of $18.4 million and an ROI of 612%.
The study lists the following benefits, worth a total $21.5 million:
- Cost savings from accelerated time to market worth $5 million. Snowflake enabled customers to launch new products and enhancements much faster than they could using their previous solutions for harnessing and applying data and analytics. Our cloud data platform’s ability to simplify provisioning, ingestion, transformation, data processing, and administration reduced the time to launch new products by 50%, which represents $5 million in cost savings for a composite customer.
- Increased profit of $4.8 million from faster time to market. By launching products and enhancements faster, interviewed companies were able to generate incremental revenue more quickly, which resulted in higher profits.
- Improved decision-making from faster access to data saves $3.7 million. Snowflake enabled customers to connect data across multiple disparate systems and generate reports much faster than they could using other solutions. It also put data in the hands of business users who didn’t previously have access. With more business owners making decisions aided by relevant data and fresh insights, interviewees were able to move faster and improve their organizations’ bottom lines.
- Simplified data operations save $2.1 million. By empowering business users to access data on a self-serve basis, Snowflake yielded significant productivity benefits. Business users were able to create models, test environments, run queries, and manage their own access privileges without being dependent on IT teams.
- Infrastructure and database management savings worth $5.9 million. Snowflake offered higher performance and greater scalability than other solutions. Its ability to scale up and down to deliver computing resources as needed—depending on the query or workload requirements—helped interviewed companies optimize resource utilization.
Overall, we are delighted to hear that Snowflake has been delivering a meaningful impact in the areas our customers care about most. That said, we know there’s still an enormous amount of work to be done and room for improvement, and we don’t intend to rest on our laurels. Instead, we plan to continue striving to deliver even greater cost savings and bottom line impact to our customers in the months and years to come. To access the full study, The Total Economic Impact™ of Snowflake’s Cloud Data Platform, click here.