{"id":7557,"date":"2022-12-14T00:00:00","date_gmt":"2022-12-14T00:00:00","guid":{"rendered":""},"modified":"2025-06-09T23:14:37","modified_gmt":"2025-06-10T06:14:37","slug":"forrester-study-finds-228-percent-roi-when-modernizing-applications-on-azure-paas","status":"publish","type":"post","link":"https:\/\/azure.microsoft.com\/en-us\/blog\/forrester-study-finds-228-percent-roi-when-modernizing-applications-on-azure-paas\/","title":{"rendered":"Forrester study finds 228 percent ROI when modernizing applications on Azure PaaS"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\" id=\"using-modern-apps-in-the-cloud-to-do-more-with-less\">Using modern apps in the cloud to do more with less<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There\u2019s no denying the pivotal role developers play in today\u2019s organizations. Whether you\u2019re a high-tech company, a non-profit organization, or a fast-food restaurant, robust digital and online services are key to your customer success. Take the example of one of our customers, <a href=\"https:\/\/customers.microsoft.com\/story\/1452362431200732651-jotun-discrete-manufacturing-product-azure\" target=\"_blank\" rel=\"noopener\">Jotun<\/a>, a multinational chemical supplier\u2014their customer-facing and sales applications are mission critical to their business. But with a small development team managing global applications on premises, the time and effort they spent on routine management and administration was extensive.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The company decided to embrace <a href=\"https:\/\/azure.microsoft.com\/solutions\/application-modernization\/\">application modernization<\/a>\u2014ending investments in on-premises structures\u2014and migrate their apps to Microsoft Azure with Azure App Service. In addition to eliminating routine maintenance tasks and increasing uptime, the new approach enabled them to scale developer expertise, deliver high application performance from anywhere in the world, and begin the transition to a modern development, security, and operations (DevSecOps) approach\u2014all while lowering costs and accelerating time to market.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/azure.microsoft.com\/en-us\/blog\/wp-content\/uploads\/2022\/12\/d8ab89d1-b2ed-4d12-93a5-3405f226797a.webp\" alt=\"Black banner with text reading 228% ROI with Azure app modernization. Two people in a work setting looking at a computer monitor. The seated person is pointing to the screen and the other person is looking at the screen and smiling. Microsoft logo in bottom corner.\" title=\"Azure picture\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Platform-as-a-service (PaaS) represents one of the most cost-effective ways to strategically shift resources to application innovation, rather than spending time managing application infrastructure. Azure PaaS services like <a href=\"https:\/\/azure.microsoft.com\/en-us\/products\/app-service\/?OCID=AIDcmm5edswduu_SEM_3a658deb321714b9b3aaee657fcaace1:G:s&amp;ef_id=3a658deb321714b9b3aaee657fcaace1:G:s&amp;msclkid=3a658deb321714b9b3aaee657fcaace1#overview\">Azure App Service<\/a>, <a href=\"https:\/\/learn.microsoft.com\/azure\/spring-apps\/overview\">Azure Spring Apps<\/a>, and <a href=\"https:\/\/azure.microsoft.com\/en-us\/products\/category\/integration\/\">Azure Integration Services<\/a> provide developers and IT professionals with a fully managed application platform for building, deploying, and managing applications of all kinds\u2014from the simplest website to the most complex business solution. Developers focus on innovation, and the cloud platform takes care of everything else. A new, commissioned study conducted by Forrester Consulting on behalf of Microsoft, <a href=\"https:\/\/azure.microsoft.com\/en-ca\/resources\/the-total-economic-impact-of-microsoft-azure-paas\/\"><strong>The Total Economic Impact<sup>TM <\/sup>(TEI) of Azure PaaS<\/strong><\/a>, details the significant business impact of this approach.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Through a series of customer interviews, Forrester finds that a composite organization\u2014an anonymized aggregate profile of these customers\u2014using Azure PaaS can realize:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"wp-block-list-item\">A three year 228 percent return on investment (ROI), with a payback period of 15 months.<\/li>\n\n\n\n<li class=\"wp-block-list-item\">A 50 percent increase in the speed of application development.<\/li>\n\n\n\n<li class=\"wp-block-list-item\">A 40 percent reduction in app-dev related infrastructure costs.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Speaking with Azure customers, Forrester observed several common factors that drove their organizations\u2019 decision to adopt Azure PaaS for modernizing applications. These include being part of a broader strategic initiative, the potential for cost savings, limitations with existing architectures, wanting to take advantage of cloud capabilities, the tight market for tech talent, and prior experience with Azure.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Simply put, this set of fully managed services offers a powerful tool for enterprises to equip their developers in the rapidly changing application landscape.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"retire-legacy-infrastructure-reduce-server-costs-and-deliver-value-faster-with-azure\">Retire legacy infrastructure, reduce server costs, and deliver value faster with Azure<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Whether your goal is to modernize applications in the cloud, integrate with modern databases and AI, rapidly build apps with low-code platforms, or future-proof existing applications, Azure helps you to provide your developers with the right tools for the right job.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/azure.microsoft.com\/en-us\/blog\/wp-content\/uploads\/2022\/12\/4c459239-3250-4ccc-aee6-d355363ff21e.webp\" alt=\"Black banner with man in office setting looking at a computer monitor. Quote from anonymized service cloud manager about how Azure PaaS allows you to reduce the time to market for applications. Microsoft logo in bottom corner.\" title=\"Slide2\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Let me tell you about several ways Azure&#8217;s fully managed services can transform your organization\u2019s application development process:*<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"tackle-application-development-infrastructure-costs\">Tackle application development infrastructure costs<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Whether you\u2019re operating in an on-premises or hybrid environment, Azure PaaS supports your migration needs efficiently, enabling you to retire legacy infrastructure after applications are fully migrated.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Forrester estimates total application development-related infrastructure cost savings for the composite organization at <strong>USD<\/strong><strong>19.1 million<\/strong> over three years during this process.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"rely-on-trusted-cloud-infrastructure-and-security-management\">Rely on trusted cloud infrastructure and security management<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">While migrating to virtual machines is sometimes the simplest and fastest path for many organizations, application modernization provides the full benefits of the public cloud. PaaS makes this easier because now companies benefit from the cloud provider managing the underlying infrastructure and software of the platform. The cost savings for the composite organization begin almost immediately, with Forrester research showing estimated savings of <strong>USD<\/strong><strong>10.3 million<\/strong> on related administrative costs over three years.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"free-developers-to-focus-on-innovation\">Free developers to focus on innovation<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Developers are at their best when they\u2019re given time to focus on innovating and developing new applications. Modernizing with PaaS helps increase productivity using dev\/test and staging environments, provides the ability to run on the latest versions of the OS, languages, and framework, and enables the use of modern DevOps practices such as continuous integration and continuous delivery. The potential for savings for the composite organization is up to <strong>USD<\/strong><strong>7.2 million <\/strong>over three years.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"prioritize-application-uptime\">Prioritize application uptime<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Offloading management of infrastructure not only reduces the immediate spending, but also ensures that the service provider is responsible for maintaining a 99.95 percent SLA uptime. The resiliency inherent in the fully managed service approach provides peace of mind to the developers in the composite organization and an estimated<strong> USD3.8 million<\/strong> in avoided revenue losses over three years.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"reap-immediate-benefits-for-your-business\">Reap immediate benefits for your business<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">With an efficient and reliable platform that works out of the box, developers increase the speed of application development by up to 50 percent. The improved time to market saves the composite organization <strong>USD<\/strong><strong>2.8 million<\/strong> over three years and enhances the organization\u2019s ability to serve customer needs better.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"excited-learn-more-about-how-to-modernize-your-enterprise-applications-today\">Excited? Learn more about how to modernize your enterprise applications today<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Azure PaaS helps organizations confidently take the next step to modernizing applications\u2014paving the way for maximizing IT budget and resources, aligning stakeholder priorities, supplementing cloud skillsets, and even unifying the security approach. The methodical analysis of business value in the Forrester TEI study reinforces that this has both tangible economic impact as well as unquantified benefits to help you become a digital leader.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At the recent Microsoft Ignite 2022 conference, we <a href=\"https:\/\/aka.ms\/ModernApps\/Ignite22\/BRK43\">shared our unique approach<\/a> to helping organizations modernize their .NET, Java, and other workloads. Learn more about <a href=\"https:\/\/azure.microsoft.com\/solutions\/application-modernization\/\">Azure App Modernization<\/a> and get started with <a href=\"https:\/\/azure.microsoft.com\/free\/\">free Azure credits<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you are ready to begin, check out our <a href=\"https:\/\/www.microsoft.com\/azure\/partners\/innovate-with-new-apps\">partner portal<\/a>, where you can learn about Microsoft partners who have specialized services for your application requirements.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Join us for this free webinar to learn more about the <strong><a href=\"https:\/\/aka.ms\/AppModTEIwebinar\">Forrester Total Economic Impact of Microsoft Azure PaaS<\/a><\/strong> study.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Bookmark the <a href=\"https:\/\/techcommunity.microsoft.com\/t5\/apps-on-azure-blog\/bg-p\/AppsonAzureBlog\">Apps on Azure blog<\/a> to keep up with our expert coverage and product announcements.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Follow Microsoft Azure <a href=\"https:\/\/twitter.com\/azure\" target=\"_blank\" rel=\"noopener\">on Twitter<\/a> for the latest news and updates.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n\n<p class=\"wp-block-paragraph\"><em>*Disclaimer: In this study, Forrester provides the detailed assumptions and methodology used to arrive at these estimates. We encourage readers to use their own estimates within the framework provided in the study to determine the appropriateness of an investment in Azure PaaS.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Simply put, this fully managed service offers a powerful tool for enterprises to equip their developers in the rapidly changing application 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