The document compares the total cost of ownership of deploying Project Server on-premises versus Project Online for a hospital with 100 Project Pro for Office 365 users and 1,100 Project Online users over six years. It finds that while Project Online has a slightly higher total cost, it provides benefits like reduced licensing costs, lower deployment costs, and the ability to access project management tools from anywhere. An analysis estimates that potential savings from benefits like reduced administrative time could total over $736,000 annually with Project Online.

5. What independent evidence is out there?

7. 




8. 




10. Considerations

11. Up and running
quickly
Shorter
learning curve
for online
Respond to
CXO’s desire for Software
change and
always up to
improve-ment
date
Remote, multidevice, access
information
anywhere
Don’t have to
deal with
system admin

12. What do you consider when evaluating
the ROI of online applications?

13. Accelerating ROI

14. Goal – up and
running as
fast as
possible
Configure
during
deployment

15. PM Maturity
Proof of Concept
Deployment
Portfolio
Selection
Resource
Management
Business
Processes
Security
Options
Task Updates/
Timesheets

16. Recognizing Value with Project Online at
Major Automotive Retailer

17. Easily collaborate with others to quickly start and deliver winning projects
Easily plan and
manage your projects
Manage anywhere
Give effective
presentations
Anticipate change
Save time & effort
Work seamlessly
across tools
Communicate in real
time
Discover and share
info
Explore the Office
Store
Try Project Pro for
Office 365

18. TCO Comparison

19. Automotive Retailer is evaluating the options of deploying Project Online and Project server for 60 Project Pro for Office
365 users and 460 Project Online users. Evaluating the total cost of ownership over six years show that Automotive
Retailer can expect to save about 19% on Project Online.
Annual TCO Over Six Years
350,000
300,000
250,000
Deployment
200,000
Operations
3rd Party SW
150,000
MS Software
100,000
Hardware
50,000
Project Server
Project Online
Total
Hardware
Microsoft Software and Services
3rd Party Software and Services
Operations
Deployment and Migration
Total Annual Cost for 6 years
Total Annual Cost per User
Average Monthly Cost per User
% difference versus on-premises
Project Server
US$
32,731
US$
70,498
US$
US$
185,564
US$
14,379
US$
303,171
US$
757.93
US$
63.16
Project Online
US$
US$
189,403
US$
US$
55,040
US$
490
US$
244,933
US$
612.33
US$
51.03
-19%

20. Cumulative Costs Over 6 Years
2,000,000
Cost Comparison
600,000
1,800,000
500,000
1,600,000
1,400,000
400,000
1,200,000
1,000,000
Project Server
800,000
Project Server
Project Online
300,000
Project Online
200,000
600,000
400,000
100,000
200,000
-
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
This chart shows the total cost over the 6-year
period for Project Online is $349,430 less than
the cost for Project Server.
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
This chart shows the annual cost for the two
options over a 6-year period. The chart makes
it easy to see when costs are incurred for each
option.

21. This table shows the details behind the Project Online TCO numbers. Costs are shown for Hardware, 3rd Party
Software and Services, Operations, Deployment, and Microsoft Software and Services.
Project
Hardware
3rd Party Software and Services
Operations
Deployment and Migration
US$
US$
US$
US$
Microsoft Software and Services
US$
Total
US$
Year 1
Project Online
55,040
980
?
?
?
?
189,403 ?
245,423
Year 2
Project Online
55,040
980
?
?
?
?
189,403 ?
245,423
Year 3
Project Online
55,040
980
?
?
?
?
189,403 ?
245,423
Year 4
Project Online
55,040
-
?
?
?
?
189,403 ?
244,443
Year 5
Project Online
55,040
-
?
?
?
?
189,403 ?
244,443
Year 6
Project Online
55,040
-
?
?
?
?
Average
55,040
490
189,403 ?
189,403
244,443
244,933

22. This table shows the details behind the Project Server TCO numbers. Costs are shown for Hardware, 3rd
Party Software and Services, Operations, Deployment, and Microsoft Software and Services. Costs have also
been included for SharePoint Server since it is required for a Project Server deployment. The full cost of
upgrading to the latest version of SharePoint and operating the SharePoint environment is included in this
analysis.
Project
Hardware
3rd Party Software and Services
Operations
Deployment and Migration
US$
US$
US$
US$
Year 1
Project 2013
38,528
104,080
10,192
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
Average
15,595
104,080
3,397
US$
211,494 ?
Microsoft Software and Services
US$
US$
US$
US$
US$
80,864
185,564
43,138
211,494
8,664
185,564
-
8,664
185,564
-
80,864
185,564
43,138
211,494
8,664
185,564
-
8,664
185,564
-
32,731
185,564
14,379
70,498
Total
US$
521,059
194,228
194,228
521,059
194,228
194,228
303,171
81,484
-
?
?
?
-
?
4,536
81,484
Next Version
Year 6
Next Version
4,128
104,080
-
Microsoft Software and Services
32,946
Next Version
Year 5
Next Version
4,128
104,080
-
42,336
?
?
?
SP2013
Year 4
Next Version
38,528
104,080
10,192
US$
US$
US$
81,484
SP2013
Year 3
Project 2013
4,128
104,080
-
SharePoint
Hardware
Operations
Deployment and Migration
Total
Hardware
3rd Party Software and Services
Operations
Deployment and Migration
SP2013
Year 2
Project 2013
4,128
104,080
-
42,336
-
?
?
?
-
?
211,494 ?
4,536
81,484
32,946
?
?
?
Next Version
81,484
-
?
?
?
-
?
4,536
81,484
17,136
-
?
?
?
-
?
70,498
4,536
81,484
10,982

23. Business Benefits

24. Easily collaborate with others to quickly start and deliver winning projects
Reduce Administrative
Time on Projects
Reduce Travel Costs with Reduce License Costs
Improved Collaboration
Reduce Low Value
Projects with Portfolio
Management
$100,221
Reduce Project Cost
Overruns
Decrease Project
Reporting Time
$5,000
$2,000
$43,200
Not Included in
Analysis
$120,266
Total Benefits per Year: $270,687
NOTE: Customers may use this framework to
estimate potential benefits. Microsoft cannot
guarantee benefit amounts and makes no
warranties, express or implied, with respect to the
estimates provided here.

25. Stay organized
Potential Benefit
Reduce Project Administrative Time by up to 25%
$100,221
estimated savings per year

26. Potential Benefits
Help reduce project administrative
time by up to 25% by allowing
management of projects from
virtually anywhere and on virtually
any device.
“I like to sign into my Project Online from any
computer, even my tablet device. All my project data
is stored in the cloud and I have it at my fingertips
wherever I am."
-Dr. Anders Lehr, Senior Project Manager,
Bassier, Bergmann & Kindler
*Available with Office 365

27. Potential Benefits
Help reduce project administrative
time by up to 25% by quickly
creating project plans and sites to
manage team communications and
documents.
“Not only can I share information in my team, I can
open a project website for my customers as well and
give them more transparency with their projects."
-Dr. Anders Lehr, Senior Project Manager,
Bassier, Bergmann & Kindler

28. Potential Benefits
Help reduce project administrative
time by up to 25% by quickly
tracking tasks and status timelines,
while spending less time in status
meetings
“I have a very good status reporting. I can see what task
is active and who is working on it at the moment. A lot
of the emails that were necessary before are now gone.”
-Dr. Anders Lehr, Senior Project Manager,
Bassier, Bergmann & Kindler

29. Deliver
projects
successfully
Potential Benefit
Reduce Project Cost Overruns
by 10%
Potential Benefit
Reduce Low Value Projects by 1% with
Portfolio Management
$5,000
$2,000
estimated savings per year
estimated savings per year

30. Potential Benefits
Help reduce project cost overruns
by 10%* by providing capabilities
to better manage expected project
costs.
*Forrester indicates that a project solution can help reduce project
cost overruns by 10%, “The ROI Of Project Portfolio Management
Tools”, 2009
“I haven’t seen Business Intelligence functionality in
project management before, but with MS Project
2013 and Microsoft BI products this can be a
fundamental new part of my daily work routine.
”
-Dr. Anders Lehr, Senior Project Manager,
Bassier, Bergmann & Kindler

31. Potential Benefits
Help reduce project cost overruns
by 10% by more providing
capabilities to better manage
project risk. Improving risk
management can also help reduce
project failure rate by 15%.*
*Forrester indicates that a project solution can help reduce project
cost overruns by 10% and reduce project failure by 15%, “The ROI
Of Project Portfolio Management Tools”, 2009
“Most of my project management is about
communication, knowledge & information
management. Project Online with SharePoint services
helps me to do that in a more centralized way.
”
-Dr. Anders Lehr, Senior Project Manager,
Bassier, Bergmann & Kindler

32. Potential Benefits
Help reduce project cost overruns
by 10% by more providing
capabilities to better manage
project risk. Improved resource
allocation can also help improve
project throughput times by 10%.*
*Forrester indicates that a project solution can help reduce project
cost overruns by 10% and improve project throughput times by
10%, “The ROI Of Project Portfolio Management Tools”, 2009
“The combination of Project Online and SharePoint
gives us not only a better approach to project
management, but better data and knowledge
management.
”
-Dr. Anders Lehr, Senior Project Manager,
Bassier, Bergmann & Kindler

33. Potential Benefits
Help eliminate 1% of low-value
projects* and save time by focusing
on higher value projects through
better portfolio management.
*Forrester indicates a project solution can help reduce the
number of low-value projects by 10%, “The ROI Of Project
Portfolio Management Tools”, 2009
“We finally have a central repository that is
standardized, has common custom fields, and makes
the data extraction to create reports much easier.
Thus, some decisions really can be made faster!“
-Felipe Braun Azambuja,
Senior Database Administrator, Intelbras

34. Improve
everyday
collaboration
Potential Benefit
Reduce Travel Costs with Improved
Resource Planning &Collaboration
Potential Benefit
Decrease Project Reporting
Time
$43,200
$120,266
estimated savings per year
estimated savings per year

35. Potential Benefits
Reduce travel costs with improved
resources planning and
collaboration. Improve project
scheduling accuracy.
“Having the ability to mouse over a resource an get its
contact info, or even opening the Lync chat windows
from that point makes us save time in a daily basis.
”
-Felipe Braun Azambuja,
Senior Database Administrator, Intelbras

36. Potential Benefits
Make better project decisions with
improved analytical and reporting
capabilities.
Save time generating custom
reports
“It’s much easier to present project information
through SharePoint than through our portal, and with
mobile access, employees and customers can access
and update project data on the go.
”
-Dr. Anders Lehr, Senior Project Manager,
Bassier, Bergmann & Kindler

37. Simplify IT
Potential Benefit
Reduce License Costs
Not Included in Analysis
estimated savings per year

39. Easily collaborate with others to quickly start and deliver winning projects
Reduce Administrative
Time on Projects
Reduce Travel Costs with Reduce License Costs
Improved Collaboration
Reduce Low Value
Projects with Portfolio
Management
$56,124
Reduce Project Cost
Overruns
Decrease Project
Reporting Time
$5,000
$2,000
$24,192
$67,349
Total Benefits per Year: $154,665
Not Included in
Analysis
NOTE: Customers may use this framework to
estimate potential benefits. Microsoft cannot
guarantee benefit amounts and makes no
warranties, express or implied, with respect to the
estimates provided here.

40. Easily collaborate with others to quickly start and deliver winning projects
Reduce Administrative
Time on Projects
Reduce Travel Costs with Reduce License Costs
Improved Collaboration
Reduce Low Value
Projects with Portfolio
Management
$275,609
Reduce Project Cost
Overruns
Decrease Project
Reporting Time
$8,000
$3,200
$118,800
$330,730
Total Benefits per Year: $736,339
Not Included in
Analysis
NOTE: Customers may use this framework to
estimate potential benefits. Microsoft cannot
guarantee benefit amounts and makes no
warranties, express or implied, with respect to the
estimates provided here.

41. Hospital is evaluating the options of deploying Project Online and Project server for 100 Project Pro for Office 365 users
and 1,100 Project Online users. Evaluating the total cost of ownership over six years show that Hospital can expect to
spend just slightly more for Project Online.
Annual TCO Over Six Years
600,000
500,000
400,000
Deployment
Operations
300,000
3rd Party SW
MS Software
200,000
Hardware
100,000
Project Server
Project Online
Total
Hardware
Microsoft Software and Services
3rd Party Software and Services
Operations
Deployment and Migration
Total Annual Cost for 6 years
Total Annual Cost per User
Average Monthly Cost per User
% difference versus on-premises
Project Server
US$
7,797
US$
78,466
US$
US$
281,720
US$
8,297
US$
376,280
US$
342.07
US$
28.51
Project Online
US$
344
US$
409,273
US$
US$
73,744
US$
490
US$
483,851
US$
439.86
US$
36.66
29%

42. Potential Benefits
Multiple PC installs per user (userbased licensing) and available as
subscription through Office 365.
Click-to-Run helps speed
deployment.
Online Licensing Model PM vs.
Timesheet or Task User only
“By using a cloud-based solution, we got the agility
we were seeking. We can use Project Online with 20
people, or we can scale to all 20,000 employees. It is
easy to use and satisfies nearly 100 percent of our
business needs.
”
-Dr. Christian Buddendick,
Head of Workplace Platform Services, Hilti Corporation
*Available with Office 365

44. Planned to Spend
$65,000
Actually Spent $85,000
Services
Training
Reconfiguration
Retraining

45. Planned to Spend
$47,500
Spent same amount
Services
Sample Data Cleanup
Training
Support

46. Project Online
POC delivered in
25% of the time
with 15% of the
cost

47. Call to Action – Proof of Concept

48. 1. All takeaways can be found here:
http://advisicon.com/projconf.htm
2. Slide deck
3. Nucleus On-Premise versus On-Demand TCO
Tool http://tinyurl.com/p3l8bsc
4. Questionnaire - Successful Deployments
5. Webinar Request – Successful Deployments

49. tadhaas@microsoft.com
cindy.lewis@advisicon.com