Business Case Analysis for Microsoft Office 365

Table of Contents
1 Executive Summary ............................................................................................................................... 2
1.1 Anticipated Outcomes ....................................................................................................................... 2
1.2 Critical Success Factors ................................................................................................................... 2

2 Business need ........................................................................................................................................ 2

2.1 Business Context .............................................................................................................................. 2
2.2 Problem Statement ........................................................................................................................... 4
2.3 Business Need.................................................................................................................................. 4

3 Recommended Solution ........................................................................................................................ 4

3.1 Solution Overview ............................................................................................................................. 4
3.2 Solution Benefits ............................................................................................................................... 5

4 Alternative Solutions.............................................................................................................................. 7

5 Cost, Risk and Benefits ......................................................................................................................... 7

5.1 Project Cost ...................................................................................................................................... 7
5.2 Risk ................................................................................................................................................... 8
5.3 Benefits ............................................................................................................................................. 8

6 Implementation Details. ......................................................................................................................... 9

6.1 Project Plan ...................................................................................................................................... 9
6.2 Assumptions ................................................................................................................................... 11
6.3 Resources....................................................................................................................................... 11

7 Conclusion and Recommendation. ..................................................................................................... 12

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 Business Case Analysis for Microsoft Office 365

1 Executive Summary
There is a gradual shift from the traditional approach of administering IT solution in most organizations around
the world. This trend creates an opportunity for organizations to adopt a Software as a Service (SaaS)
enterprise solution for email, collaboration, and common business applications rich in functionality and
uniform across the enterprise.
In 2014, Xyz Plc made the decision to upgrade her email cloud solution by discontinuing the services of
Mcreal web hosting and subscribing to Google’s G Suit which comprise cloud computing, email, productivity
and collaboration tools. This single act alone paved the way for future migration from on premise to cloud
based solutions.
Currently, the organization utilizes two distinct productivity tools (G Suite and Microsoft Office) with an
acceptable degree of integration. However, most users are more familiar and give preference to Microsoft’s
office productivity tool when compared to Google’s G Suite. This was evident in the results of a survey that
was carried out within the organization.
Office 365 is the software-as-a-service (SaaS) version of Microsoft business product (quite similar to Google’s
G Suite) which includes Office applications, SharePoint, Exchange, Lync, Yammer, OneDrive and Skype for
Business.
The purpose of this business case is to discuss the potential return on investment (ROI) Xyz Plc will realize
by deploying office 365. Also, this will help consolidate the organizations SaaS enterprise solutions; this falls
in-line with the organizations business continuity plan.

1.1 Anticipated Outcomes

There are key desired outcomes that are anticipated following a successful implementation of Office 365.
These outcomes include:
 Reduced total cost of ownership (TOC).
 Increased business and end user productivity.
 Simplify enterprise administration and management of end users.
 The organization stays up-to-date with the latest features and solutions from Microsoft.
 Consolidate organizations SaaS enterprise solutions. This include email, productivity and
collaboration tools.

1.2 Critical Success Factors

In order for this implementation to be deemed a success, the following must be achieved:
 Successful migration of the organization’s email from Google Mail to Microsoft Exchange.
 Successful migration of users files from Google Drive to Microsoft’s OneDrive.
 Successful migration of files from Google Site to Microsoft’s SharePoint online.
 Integration with Active Directory.
 High user acceptance rate.

2 Business need

2.1 Business Context

Xyz Plc currently adopts a hybrid approach (on premise and cloud based) which also combines two distinct
software solutions inorder to meet up with end user requirements. Google’s G Suite was adopted and

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 Business Case Analysis for Microsoft Office 365

implemented in 2014 with 340 user license purchased for the cloud solution that comprise; email, productivity
and collaboration tools. The main focus of the implementation was to address the organizations urgent need
for a robust email service that will provide the following:
 Better security and privacy.
 Centralized method of administering end user support.
 Scalability.
 Guaranteed 99.9% uptime SLA.
The implementation of Google’s G Suite was swift and the solution integrated well with existing IT
infrastructure. Based on the fact that the solution was cloud based and the organization pays only for the
services it needs; this perceived benefit further translated to zero TOC (Total Cost of Ownership). Also, end
user provisioning and administration is managed centrally form a web admin console. However, the
organization also subscribed to Microsoft productivity tools (Office Professional Plus) which is an on premise
desktop version of Microsoft Office tools. The process of installing on end user pc makes user provisioning
and administration more cumbersome a time consuming.
Most users accomplish a significant portion of their day to day office activity (e.g. memo, letter writing, word
document, ledger/record keeping and reporting) with Microsoft Office tools but seldom utilize the productivity
features of G Suit. Nevertheless, there is an acceptable degree of integration between Microsoft Office and
G Suit as Google’s G Suit allows files to be uploaded and saved in Microsoft and Google format. This ought
to be a welcome development for both software giants but in practicality, end users would prefer a more
seamless approach to this perceived drawback.
Recent trends and analysis based on surveys and data collated revealed a high degree of underutilization of
the G Suit productivity tools when compared to Office productivity tools. Some of the reasons given by end
users were basic and logical. These reasons include:
 Microsoft’s Office tools are fundamental productivity tools for most beginners.
 Robust in functionality.
Figure 1 shows comparative analysis on G Suite apps (Gmail, Drive, Calendar and Google+) over a six month
period. The analysis reveals Gmail app as the most used of all four apps with approximately 95% utilization
by Xyz employees. However, the analysis also reveals 6% of Xyz employees utilize Google+ making it the
least utilized app.

Figure 1 Application usage Activity

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 Business Case Analysis for Microsoft Office 365

2.2 Problem Statement

As part of Xyz Plc long term strategic plan, employee productivity is paramount. Therefore, it is imperative
for the organization’s email, productivity and collaboration tools to be reviewed and consolidated in to a
robust, user friendly and cost effective solution. A survey was carried out from a pool of 20 employees at the
organization’s head office. The result revealed 85.9% user acceptance for Microsoft office productivity tools
as against 14.1% on Google’s G Suite.

Productivity Tool Survey

18
16
14
Number of Users

12
10
8
6
4
2
0
1
Productivity Tools

Microsoft Word Google Docs Microsoft Excel Google Sheets

Microsoft Powerpoint Google Slides Skype for Business Hangouts

Figure 2 Productivity Tool Survey

2.3 Business Need

When this project is successful, there will be an increase in end users productivity. Routine task and
Information will be processed faster and more cost-effectively than they are today, without compromising
compliance and security of the information.

3 Recommended Solution

3.1 Solution Overview

As part of a cost saving measure, the organization will combine different business plans on the
implementation of the proposed solution. The implementation will see a combination of Microsoft Business
Essentials and Microsoft Business Premium plan with license for 170 users and 200 users respectively. Table
1 below shows the components for each business plan.

Microsoft Business Essentials Microsoft Business Premium

Exchange (Email) Exchange (Email)

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 Business Case Analysis for Microsoft Office 365

OneDrive OneDrive
SharePoint SharePoint
Skype for Business Skype for Business
Microsoft Teams Microsoft Teams
Yammer Yammer
Word Outlook
Excel Word
PowerPoint Excel
PowerPoint
OneNote
Access
Table 1 O365 Business Plans

3.2 Solution Benefits

1. Access to familiar applications:
Microsoft offers a variety of products and plans that suits our organization and IT infrastructure. To
catch a glimpse of what is possible, the proposed solution includes;
 Word.
 OneNote.
 Excel.
 PowerPoint.
 Exchange Online.
 Outlook.
 Business class email, calendar, and contacts with a 50GB (gigabyte) inbox per user.
 Skype for Business (VoIP).
 IM and HD videoconferencing with Skype for Business app Tooltip icon.
 OneDrive for Business with 1TB (terabyte) of file storage and sharing.
 Unlimited online meetings.
 Access to work management tools that help teams collaborate and multi-task.
 Access to a social network to help employees collaborate across departments and locations.
 Access to online versions of Office in the cloud including Excel, PowerPoint, and Word.
 Access to fully installed Office applications on both PC and Mac devices.
 Professional digital storytelling tools to create interactive presentations, projects, reports, and
more.
 Access to Office apps on tablets and phones for the fully installed mobile Office experience on
up to 5 tablets and 5 phones per user.

2. Access Office from anywhere using any type of device:

Office 365 Business is hosted and maintained by Microsoft which implies there is no compelling
reason to install and update software in the event that you are not incline towards. Rather, one will
have access to all that is required without installing and maintaining servers and systems. Set up is
quick with prompt access and enables everyone have access to Office applications with a single sign
in using any device (tablet, PC, or cell phone) in any location.
By switching to Office 365, Users can enhance work process effectiveness which is critical to the
organization’s bottom line. Xyz Plc is unified together, whenever, wherever access and IT
maintenance are the obligation of Microsoft data center.

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 Business Case Analysis for Microsoft Office 365

3. Enjoy better security and privacy:

Although Microsoft has cloud-based administrations, they recognize that document and archives
belong to Xyz Plc. As part of our subscription, Microsoft has proper compliance and security
technology deployed alongside an agreement not to use our data for promotional purpose.
Furthermore, Microsoft's administrations have adopted the following:
 128-bit SSL/TSL encryption to prevent interception of transmissions to applications, files, and
shared documents.
 Routine updates on antivirus and antimalware definition
 Email protection using Forefront Online protection, antivirus and anti-spam technologies to
ensure secure email communication.
4. Compliance:
Office 365 and Microsoft datacenters are certified ISO 27001 compliant with continued successful
completion of SAS70 Type I and Type II audits.
5. Instant access to the latest version for no additional cost:
Since Office 365 is offered as SaaS (Software-as-a-Service), this provides Xyz Plc with instant
access to latest version of the software without the added cost to upgrade. Automatic updates are
included in your subscription and at no extra cost. However, this feature is only available for Microsoft
Business Essentials and Microsoft Business Premium plan; as Microsoft Office Professional Plus will
be a desktop version of Microsoft’s Office productivity tool.
6. Guaranteed 99.9% uptime SLA:
Microsoft provides a comprehensive Service Level Agreement (SLA) which ensures an uptime of
99.9 percent. The SLA covers all aspects of Office 365 in addition to each user. A Service Health
Dashboard which provides service health visibility on a daily basis to IT support team, giving users
and tech support peace of mind and improved business continuity.
7. Enjoy seamless digital ecosystem:
Microsoft Office 365 integrates seamlessly with other products within the Microsoft digital ecosystem
which further helps the organization maximize the use of:
 Microsoft Dynamics NAV 2016.
 Microsoft Dynamics CRM.
 Microsoft Business Intelligence.
8. Scalability means you only pay for the resources used:
Office 365 is scalable and allows businesses the flexibility to combine different plans (business and
enterprise) as the business needs change. This is much more cost effective than having unused IT
infrastructure or solution sitting around in anticipation of business expansion. Instead, with Office 365
you can modify services at a moment’s notice.
9. Dependable Application and feature modifications:
Many cloud service providers tend to change or discontinue applications at a moment’s notice which
provides businesses with inconsistent delivery. Microsoft provides their clients advance notice to help
plan accordingly in the event of any changes. For major upgrades on software, Microsoft will always
notify their customers at least one year in advance.
10. Flexible deployment for easy configuration and customization:
Microsoft have made it possible to execute migration processes in phases to either cloud, on premise
or a combination of both (popularly known as a hybrid). It helps organizations meet specific
compliance requirements. It also provides a way to have remote employees use a cloud solution
while others work on the premises. If you choose a hybrid solution, the integration is seamless with
access to the same productivity tools both in the cloud and on the premises.

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 Business Case Analysis for Microsoft Office 365

4 Alternative Solutions

Alternative Description Reasons Rejected

Considered

Take no action Continue to leverage on Doing nothing will likely cause: a) Decreasing end user
now existing G Suite satisfaction. b) Underutilization of productivity tools. c) Zero
applications without any increase in end user productivity for from an IT and corporate
changes. perspective. d) Poor integration with other productivity tools
(e.g. Microsoft Dynamics Nav)
Table 2 Alternative Solutions to O365 Implementation

5 Cost, Risk and Benefits

5.1 Project Cost

In compliance with the organization’s procurement policy, price quotes were obtained from two vendors.
Details of the project cost can been seen in table 3 and 4 below.

Project Description Quantity Unit Price Amount Recurrent

Office 365 Business Premium 150 N55,285.10 N8,292,765.00 Yearly

Office 365 Business Essentials 220 N22,377.60 N4,923,072.00 Yearly

Setting up SharePoint Online 1 - N3,000,000.00 One-time

Sub Total N16,215,837.00

5% VAT N810,791.85

Total Project Cost N17,026,628.85

Table 3 User License and Project Implementation Cost

Project Description Quantity Unit Price Discount Amount Recurrent

Office 365 Business Premium 150 N54,750.00 10% N7,391,250.00 Yearly

Office 365 Business Essentials 220 N21,900.00 10% N4,336,200.00 Yearly

Office 365 Enterprise E3 (Optional) 5 N87,600.00 10% N394,200.00 Yearly

Implementation/SharePoint 1 N1,500,000.00 35% N975,000.00 One-time

Maintenance Support 1 N750,000.00 10% N375,000.00 Yearly

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 Business Case Analysis for Microsoft Office 365

Migration (Email, Contact,

375 N6,375,000.00 0% N2,390,625.00 One-time
Calendar and Drive)

Sub Total N15,862,275.00

5% VAT N793,133.75

Total Project Cost N16,655,388.75

Table 4 User License and Project Implementation Cost

5.2 Risk
There are no immediate or short term risk associated with the non-implementation of the proposed solution.
However, there are long term risk associated with the non-implementation. These risk include:
 Negative impact on the organization’s future business continuity plan.
 Poor integration with existing business applications and productivity tools.
 Negative impact on business productivity.
 Potential bottlenecks on future process improvements or process reengineering.

5.3 Benefits
The benefits of adopting Office 365 are monumental. The following statistics reveal how the adoption of Office
365 has impacted on business around the world.

A recent study by IDC (International Data Corporation) showed, “The cloud market will grow from $56.6 billion
in 2014 to more than $127 billion in 2018. Most companies will only pay for the actual resources they use,
like minutes of computing time, bytes of storage, usage of add-on apps and services, and so on. Customers
love this and are ditching traditional software and computers at a rapid rate so they can rent their tech via
cloud computing.”

And BitGlass said…

–BitGlass, which also offers security services for Google Apps, Office 365 and Salesforce, recently conducted
a survey of 81,000 users one year ago. “At the time, the company found that Google Apps was far more
popular, accounting for 16% of user’s email, compared to Office 365 at not quite 8%.”

In a more recent survey during October 2016, “BitGlass revealed to Business Insider that “Office 365 has
now overtaken Google Apps in terms of usage. Office 365 has surged ahead of Google in the enterprise and
is dominating future enterprise deployment plans (29%) versus Google Apps (13%),” a spokesperson said.

–“Whereas about one-quarter of users BitGlass surveyed last year had email in the cloud, 42% of them are
using cloud email this year,”BitGlass told Business Insider.

–“Why is Microsoft winning? Workers like the Outlook email program, and they get that same Outlook look
and feel with Office 365,” according to BitGlass.

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 Business Case Analysis for Microsoft Office 365

6 Implementation Details.

6.1 Project Plan

The following tasks are related to a standard migration project which includes:
 Office 365 implementation
 Exchange online migration from an existing Exchange
 File share migration to SharePoint online

Top level plan based on 3 main stages:

 Plan
 Prepare
 Migrate
 Post - Migration

Detailed tasks:
Cloud Migration Plan
Plan
Coordinate and execute kick off meeting & Schedule Plan
Plan infrastructure - (Mail Servers, File Share, Apps that use Exchange and Microsoft Office,
Bandwidth, Printing, content viewers, security)
SharePoint online - (users private space, team sites, metadata)
User experience - (Office 365 web apps, Apps that use Exchange and Microsoft Office , printing,
files share)
Mobile users - (Office 365 setup & capabilities)
Coordinate license acquisition
Desktop users & communication plan
Bandwidth analysis strategy
Define environment for migration tools
Exchange
Gather current exchange information
Compile current users information that will be migrated
Determine migration plan
Check current DNS records
File Storage
Analyze current file & security structure
Categorize files and define filters (old files, not used, not needed)
Define new Folder structure and security in Office 365
Define files new metadata(optional)
Define action plan for files with errors and warnings
Define user profiles
Define sites and site types
Define personal OneDrive for Business usage
Develop Backup policy
Applications
Check applications that use exchange and Microsoft Office
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 Business Case Analysis for Microsoft Office 365

Setup scope of migration

Users Training
Setup users training schedule
Build risk and issue tracking system
Prepare
Create and setup account
Add domains to Office 365
Create and configure user accounts and roles / groups
Initial setup user accounts (optional)
Configure Office 365 (Acquire additional storage)
Network Configurations (Local network configuration, firewall, NAT, DNS, printers)
Setup SharePoint and team sites
Configure client computers and end-user experience
Install migration tools in local environment
Exchange
Configure AD
Request and test a domain/exchange user for migration (domain admin)
Check migration tool requirements
Install/update operating system features needed for migration
Configure user archive mailboxes (optional)
File Storage
Re organize folder structure
Remove passwords from Microsoft Excel files
Fix document broken links to other documents before migration
Tag links in file share before migration with link fixing tool
Look up and fix files and folders with warnings and errors
Create complete list of files to be migrated
Migration
Exchange
Migrate exchange mailboxes to Office 365
Monitor and validate migration tool results
Validate exchange online functionality
File Storage
Migrate selected files
Apply new Metadata(optional)
Create migration plan in 3rd party tool using Microsoft Excel files
Create migration schedules
Monitor and validate preliminary results
Rerun migration for failed files and folders
Archive non selected files
Validate entire migration results(before and after)
Reconnect file links in SharePoint after migration with link fixing tool
Recreate passwords in Microsoft Excel files Apply security
Reconfigure Applications that use Exchange and Microsoft Office
QA & UAT

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 Business Case Analysis for Microsoft Office 365

Ensure end-users email is working properly and emails, calendars and contacts have been
migrated
Ensure end -users can access, edit and upload all kind of files to the cloud based on security
access
Ensure that all documents with links are working properly
Ensure that all applications that use Exchange and Microsoft Office are working properly
Training
Office 365 Super users Training
Office 365 Training
New file organization Super users Training
New file organization Training
Provide client computers support on configuration
Go Live
Coordinate outage
Initiate planned outage and take down network services
Change DNS/MX records
Rerun migration for files and folders modified during QA and UAT
Synchronize exchange
Validate final results
Remove access from file share
Terminate planned outage and communicate results
Go live
Post-Migration (Documentation)
Assessment document
Infrastructure document
New files structure document
Security document
Write User Guides
Write User FAQ

6.2 Assumptions
The following assumptions were made
 The license cost per user reflects the naira equivalent of the dollar exchange rate whilst business
case was compiled.
 The number of user license acquired is more than sufficient for the number of employees mandated
by the organization.
 The planning, preparing and migration phases are completed within eight weeks.

6.3 Resources
Successful implementation requires the participation of the project sponsor. The IT manager will oversee the
implementation of the project in collaboration with the project consultant and members of the project team.

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 Business Case Analysis for Microsoft Office 365

7 Conclusion and Recommendation.

The team recommends proceeding with the project as there’s so many advantages to switching to Office
365. As elaborated in the body of this document, migrating to Office 365 Business provides solid advantages
in terms of risk management, cost reduction, and improved productivity. Additionally, IT capital expenses can
be reduced by eliminating on premise servers.
These are just a handful of the ways Xyz Plc can grow by using Office 365 Business. The specific applications
and services will depend upon choice of plans. Regardless, Office 365 Business will help run the organization
more efficiently while maintaining brand and professional image.

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