The Total Economic Impact™
Of Mac In Enterprise:
M1 Update
Cost Savings And Business Benefits
Enabled By Mac
JULY 2021

A FORRESTER TOTAL ECONOMIC IMPACT™ STUDY COMMISSIONED BY APPLE

Table Of Contents
Executive Summary ................................................. 1

Consulting Team: Nicholas Ferrif
Anish ShahKara Luk

Key Findings ........................................................... 2
Financial Benefits Summary .................................. 6
The Mac Customer Journey .................................... 8
Key Challenges ...................................................... 8
Why Mac? .............................................................. 9
The Impact Of The Apple M1 Chip ......................... 9
Composite Organization ....................................... 10
Device Lifecycle Costs For Composite
Organization ......................................................... 11
Analysis Of Benefits .............................................. 12
Reduced IT Support And Operational Costs ........ 12
Reduced And Avoided Hardware And Software
Costs .................................................................... 14
Reduced Risk Of A Data Breach .......................... 16
Improved Employee Productivity And Engagement.............................................................................. 18
Analysis Of Costs .................................................. 21
Implementation And Labor Costs ......................... 21
Hardware And Hardware Deployment Costs ....... 22
Financial Summary ................................................ 25
Consolidated Three-Year Risk-Adjusted Metrics . 25
Appendix A: Total Economic Impact ................... 26
Appendix B: Supplemental Material .................... 27
Appendix C: Endnotes .......................................... 27

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© Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on
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THE TOTAL ECONOMIC IMPACT™ OF MAC IN ENTERPRISE: M1 UPDATEExecutive Summary
Organizations invest heavily to improve customer experience and drive engagement. But
with so much focus on customers, they often deprioritize the employee experience andthe technology that employees use. This is a mistake. Practically every technology that
employees interact with can impact employee experience, and having a good experiencedelivers better business outcomes, such as higher employee engagement, enhanced
customer experience, fewer security vulnerabilities, and reduced costs.1

In 2019, Apple commissioned Forrester Consulting toconduct a Total Economic Impact™ (TEI) study and

KEY STATISTICS

examine the potential return on investment (ROI)
enterprises may realize by deploying Mac devices toReturn on investment (ROI)

their employees. In 2021, Apple commissioned

336%

Forrester Consulting to update the 2019 study toinclude the impact that the new M1 processers haveon enterprise Mac deployments. The purpose of thisstudy is to provide readers with a framework toThree-year net present value (NPV)

evaluate the potential financial impact of deploying$101 million

Mac — including Macs with the Apple M1 chip — on
their organizations.
Apple introduced its M1 chip in 2020, and it improved

Average device lifecycle cost savings
over three years:

the performance, power efficiency, and battery life ofApple devices that use it. Macs with M1 chips are$843 per Mac

compatible with iOS and iPadOS applications, whichenables organizations to run iPhone and iPadapplications natively on their laptops or desktops forthe first time. In addition to the M1 chip, Apple also

Prior to using Macs, the organizations were largely

released new versions of its Mac operating system

PC-based. However, interviewees said their focus on(macOS) that build on and expand the security andenterprise PC deployments introduced common

collaboration capabilities highlighted in the original

challenges. Managing and deploying PCs (especiallystudy.

remotely) was manual and time-consuming for IT

To better understand the benefits, costs, and risks

FTEs, and employees wanted to use Macs and wereassociated with this investment, Forrester interviewed
decision-makers from 10 organizations withexperience deploying both M1-based and non-M1based Mac computers. For the purposes of thisstudy, Forrester aggregated the experiences of theinterviewees’ organizations and combined the results

using their own personal Mac devices in unsupported
states. Decision-makers looked for ways to improve
employee engagement and retention and to attract
new talent. They also hoped to improve the security
reliability and performance of their organization's
hardware.

into a single composite organization.

THE TOTAL ECONOMIC IMPACT™ OF MAC IN ENTERPRISE: M1 UPDATE

1EXECUTIVE SUMMARY“The M1 Macs are just better inevery conceivable way. We are
getting a much better laptop withmuch more power and much longer
battery life at a lower price point.”— IT director, retail industry

For organizations that already had Mac deployments,

outperform all of their PC devices and even some ofdevice costs were the biggest factor that limited moretheir previous-generation Macs regardless of pricewidespread adoption. But as Apple improved thepoint.

performance and power efficiency with M1,
customers were able to deploy more Macs whilestaying in the same price range of a baseline PC thatmost workers used.

In addition to the benefits outlined in the 2019 study,organizations using M1 Macs were able to further
reduce IT management costs, accelerate theadoption/deployment of Mac devices, and improve

Interviewees said their organizations chose toemployee productivity for all employees who leverage

implement employee choice programs and deploy

Mac.

enterprise Mac because: 1) decision-makers believe
Macs are easier to deploy and to manage; 2) theywanted to improve the employee experience (EX) at
their organizations; and 3) they believe Mac is a moresecure platform than PC.

KEY FINDINGS
Quantified benefits. The following benefits reflect
the three-year financial analysis associated with thecomposite organization. Although the M1 Macs are
relatively new, Forrester leveraged data and the

By introducing the more powerful M1 Macs

financial model framework from the 2019 study along(specifically the MacBook Air and 13-inch MacBook

with new data collected through additional interviews

Pro) into their employee choice programs, theto forecast the following results:

organizations had a new baseline device that could
serve a larger percentage of their employees at alower starting point than previous Macs and/or PC
devices. Additionally, according to early tests that theinterviewees’ organizations conducted, M1 Macs

THE TOTAL ECONOMIC IMPACT™ OF MAC IN ENTERPRISE: M1 UPDATE•Reduced IT support costs saves $12.4 million
over three years. During the three-year device
lifecycle, organizations save $635 per Mac whencomparing the cost of support and operation of2

EXECUTIVE SUMMARY

PCs. Interviewees reported that the zero-touchthan those detailed in the original study. With M1,

deployment process and mobile deviceorganizations are able to reduce the averagemanagement (MDM) enrollment is just as simple

Mac device cost by $300 in Year 3 and by $200

on M1 Macs as it is on their legacy Macs, and it

when looking at all devices purchased during theis still considerably simpler than deploying PCs.

three-year period.

Additionally, consistent with the 2019 study,organizations can manage more Mac devices per
IT FTE, and the organizations receive fewer
service tickets from Mac users.

•

Reduced risk of a data breach by 50% per
deployed Mac. Interviewees said they are
excited to explore the full security implications of
M1, and they consider their organizations’ M1
Macs to be just as secure (if not more secure)than their legacy Macs, and significantly more

“From my perspective, Mac iseasier to deploy, it’s easier tomaintain applications, and it’seasier to keep up the security.”

secure than their PC counterparts. They said

Team lead of end user computing,healthcare industry

A head of corporate IT in the financial services

built-in security features like automatic dataencryption, antimalware capabilities, and theease of enrollment into MDM technology keep
their M1 Macs secure.

industry said: “We haven’t had any malware
incidents in the three years since we moved to a
100% Mac deployment. We can see the traction
and retention benefits, the productivity, and the•Reduced and avoided costs related to PC
deployment save $37.5 million over three

innovation that Macs enable. But, ultimately, wewent with Mac for security, and it’s very strong.”

years. During the three-year device lifecycle,
Mac costs $207.75 less than comparable PCs
when comparing hardware and software costs.
Because of M1’s improved power, organizations
can deploy baseline devices to more of theiremployees. This reduces the average device cost
while giving more employees more computing
power than they had before.
Additionally, there is no need to purchase an
operating system license or a software
maintenance contract for Mac, and the underlyingarchitecture and included security features
obviate the need for some additional endpoint
security licenses.
The energy consumption of M1 Macs is even

“We rotated the 13-inch MacBook
Pro with M1 and the MacBook Air
with M1 around our developer
team and there was the same
perception about both devices;
they were great, able to get
XCode, and our developers felt
they could do their regular workon those devices.”
Director, technology industry

lower than that of previous Macs, which meansthat deploying Mac leads to more energy savings

THE TOTAL ECONOMIC IMPACT™ OF MAC IN ENTERPRISE: M1 UPDATE

3EXECUTIVE SUMMARY•

Improved employee performance andin an attempt to reduce their impacts on theengagement. With M1 Macs, the composite

environment. In the 2019 study, Forrester foundorganization improves its retention rate by 20%,that Mac devices generally consume lessreduces start-up times by 80% leading to 48

electricity than their PC counterparts, and studies

hours of increased productivity over three years,

on the new M1 Macs show that M1 Macs create

and increased the productivity of all employees

significantly less carbon dioxide (CO2) thanby 5%, leading to an additional 104 hours ofprevious Macs and PCs. Extrapolated toadditional productivity for Mac users annually.

hundreds or thousands of devices, these savings

Interviewees generally reported increased

can lead to significant ESG improvements.

employee satisfaction, and they said employees

One interviewee said their organization used thewho choose Mac are less likely to leave.

reduced CO2 consumption data to help drive Mac

Additionally, the performance improvements

adoption internally. Each department head had aacross all tasks in the MacBook Air M1, theportion of their bonus tied to ESG goals, andextended battery life, and the elimination of a fan

decision-makers considered using Mac to be an

make employees more productive and decreases

easy win to reduce environmental impacts and to

the number of interruptions per day.

show improvements.

An IT director in the retail industry said:

A director in the technology industry said: “We“Everything is just faster, and you spend lesshave sustainability goals across all units, andtime waiting for small things on M1. By

people haven’t yet thought about the impact thateliminating all of those pain points, it feels muchtheir actual devices can have. So that is wheremore powerful, and it really improves the

we are trying to focus. We look at each group’s

experience overall.”most commonly deployed PC devices, and we

Unquantified benefits. Benefits that are notbring data to show how Macs can improve theirquantified for this study include:

ESG performance with recycled aluminum and•reduced power consumption.”

Compatibility with iOS and iPadOS
applications. Some interviewees said theirorganizations tested app compatibility between
iOS and iPadOS applications and M1 Macs, and“We’re getting computing power
to entry-level positions that is on
par with what we used to provide
to only our high-end users. So, a
lot of extra productivity comeswith that.”saw promising results. The IT director in retailsaid: “We have quite a few operational iOS apps,
and those are the apps that we could see somereal benefits from being able to run them natively
on M1 Macs. It would reduce the need for custom
development work and also reduce the total
number of devices because an employee would

IT director, retail industry

be able to do everything they need on the Mac.”•

Reduced carbon footprint compared toprevious Macs and PC options. Organizations
are increasingly setting environmental, social,•

Improve time-to-value for mergers andand governance (ESG) goals or otheracquisitions of organizations with Mac

environmental goals both publicly and internallydeployments. When organizations set up

THE TOTAL ECONOMIC IMPACT™ OF MAC IN ENTERPRISE: M1 UPDATE

4EXECUTIVE SUMMARY

mergers or make acquisitions, integrating human•

Hardware and hardware deployment costs

and IT resources is a crucial step in realizing

totaling $29.2 million. These costs include

value from the investment.

hardware and deployment costs associated withFor organizations with an existing Mac
deployment, integrating new Macs can be as
simple as enrolling each device in the MDM. But
integrating new Mac devices without an existingMacs, third-party MDM costs, incremental costs
for additional Mac peripherals (e.g., dongles,
connectors), and AppleCare extended warranties
and enterprise support.

Mac deployment may be more challenging, may

The composite organization reduces the averagetake longer, and may reduce the effectiveness ofdevice cost per Mac from $1,700 (as detailed in

the Macs if unnecessary tools and software are

the 2019 study) to $1,500 in 2021 because it now

loaded onto the devices.

has the ability to deploy a MacBook Air with M1

The director in the technology industry said: “Wemade a significant acquisition, but nobody
stopped to consider that the company weat a lower price point to more employees. This
reduces overall costs while delivering morecomputing power to workers.

acquired was a Mac shop. Luckily, we had our

The customer interviews and financial analysis foundchoice program in place with experiencethat a composite organization experiences benefits ofmanaging Macs. So, the first thing we were able

$131.4 million over three years versus costs of $30.1

to do as part of the [acquisition] was integrate themillion, adding up to a net present value (NPV) of

Mac devices. We simply enrolled all of the$101.3 million and an ROI of 336%.

devices in our MDM and Apple Business
Manager so all the Mac users at the acquiredcompany could use our resources as long as
they had an internet connection. This easy
integration was not possible with PC devices.”
Costs. The following costs reflect the three-year
financial analysis associated with the composite
organization to support 33,000 Macs:•

Implementation and labor costs totaling$904,000. These costs come from professional
services for implementation, internal labor for
implementation, and internal labor for ongoing
platform support. Interviewees from organizations
with experience deploying Macs or iOS devices
said their firms typically required no professional
services or less than would have been previously
required. However, interviewees also noted that it
is important to ensure Macs are deployedaccording to Apple’s best practices to maximize
the value of the Mac deployment, and they
recommended working with a third party orinternal advisor.

THE TOTAL ECONOMIC IMPACT™ OF MAC IN ENTERPRISE: M1 UPDATE

5EXECUTIVE SUMMARYFINANCIAL BENEFITS SUMMARYROI

BENEFITS PV

NPVPAYBACK

336%$131.4 million$101.3 million<6 months

Benefits (Three-Year)

Reduced IT support andoperational costs$12.4M

Reduced and avoided costs

Reduced risk of a data breach$37.6M$4.5M

Improved employee productivity
and engagement

THE TOTAL ECONOMIC IMPACT™ OF MAC IN ENTERPRISE: M1 UPDATE$76.9M

6

EXECUTIVE SUMMARYTEI FRAMEWORK AND METHODOLOGY
From the information provided in the interviews,
Forrester constructed a Total Economic Impact™
framework for those organizations considering an

DUE DILIGENCE
Interviewed Apple stakeholders and Forrester
analysts to gather data relative to the Mac.

investment in the Mac.
The objective of the framework is to identify the cost,benefit, flexibility, and risk factors that affect the

CUSTOMER INTERVIEWSInterviewed decision-makers at organizations

investment decision. Forrester took a multistep

using the Mac to obtain data with respect toapproach to evaluate the impact that the Mac canhave on an organization.

costs, benefits, and risks.

Forrester Consulting conducted an online survey of
351 cybersecurity leaders at global enterprises in theUS, the UK, Canada, Germany, and Australia.
Survey participants included managers, directors,

COMPOSITE ORGANIZATION
Designed a composite organization based on
characteristics of the interviewed organizations.

VPs, and C-level executives who are responsible forcybersecurity decision-making, operations, andreporting. Questions provided to the participants
sought to evaluate leaders' cybersecurity strategies

FINANCIAL MODEL FRAMEWORK
Constructed a financial model representative ofand any breaches that have occurred within their

the interviews using the TEI methodology andorganizations. Respondents opted into the survey via
a third-party research panel, which fielded the survey
on behalf of Forrester in November 2020.

DISCLOSURES
Readers should be aware of the following:This study is commissioned by Apple and delivered byForrester Consulting. It is not meant to be used as acompetitive analysis.
Forrester makes no assumptions as to the potential ROI
that other organizations will receive. Forrester strongly
advises that readers use their own estimates within theframework provided in the study to determine theappropriateness of an investment in the Mac.

risk-adjusted the financial model based on
issues and concerns of the interviewed
organizations.

CASE STUDY
Employed four fundamental elements of TEI inmodeling the investment impact: benefits, costs,
flexibility, and risks. Given the increasing
sophistication of ROI analyses related to IT
investments, Forrester’s TEI methodology
provides a complete picture of the total
economic impact of purchase decisions. Please
see Appendix A for additional information on the
TEI methodology.

Apple reviewed and provided feedback to Forrester, but
Forrester maintains editorial control over the study and its
findings and does not accept changes to the study that
contradict Forrester’s findings or obscure the meaning of
the study.
Apple provided the customer names for the interviews but
did not participate in the interviews.

THE TOTAL ECONOMIC IMPACT™ OF MAC IN ENTERPRISE: M1 UPDATE

7

The Mac Customer Journey
Mac investment drivers

Interviewed Organizations
Industry

RegionInterviewee

Employees

Mac
Deployment

RetailGlobalIT director

1,450

1,400

Technology

GlobalDirector; manager of native app
experiences

100,000

30,000

Healthcare

The Netherlands

Head of Mac deployment; team leadof end user computing

13,0001,400

Utility

Italy

Manager of infrastructure, cloudservices, and network management

5,000

2,500

Financial services

GlobalHead of corporate IT

3,000

3,000

Financial services

GlobalPlatform manager

100,000+

2,000

Healthcare

North America and
EMEA

Endpoint services director

100,000+

5,000

Manufacturing

GlobalIT manager

50,000500

Technology

Global

CIO

100,000+

20,000+Technology

GlobalPlatform manager; service manager

75,00020,000+KEY CHALLENGES
Interviewees said their organizations had not
sanctioned Macs or bring-your-own-device (BYOD)
programs prior to implementing an employee choiceprogram for Mac.
The organizations struggled with common
challenges, including:•

PC deployment is a high-touch process, morechallenging to manage than a Mac“Employees receive a brand-new
Mac as if directly from the store,
so they get to do the unboxingand the setup themselves. It
helps employees feel like they
own their machine and that weare beginning a journey
together.”

deployment, and less impactful on
employees. Interviewees said their organizations
were tired of using old PC imaging processes

Head of Mac deployment,
healthcare industry

and setting up appointments with IT to receive a
new device because those processes consumed
precious time and resources from both IT
employees and end users.

“The big difference [between Mac and PC

A manager of infrastructure, cloud services, andzero-touch deployment. As an IT department, we

network management in the utilities industry said:

don’t have to manage anything about the

THE TOTAL ECONOMIC IMPACT™ OF MAC IN ENTERPRISE: M1 UPDATE

deployment] is that the Mac is activated with a8

THE MAC CUSTOMER JOURNEY

activation because the employee can just

THE IMPACT OF THE APPLE M1 CHIP

activate it by themselves by following theInterviewees said their organizations saw several

enrollment procedure. This is a completely

impacts from deploying M1 Macs. These include:

different experience than with PCs, where
employees have to set up an appointment and•costs while giving employees more power.

wait for one of us to give them support.”•

The IT director in the retail industry said, “ThePCs typically have shorter replacement

short-term benefits are that we’re going to belifecycles and lower residual values thanable to reduce our replacement footprint with

Macs. The IT director in the retail industry shared

lower cost computers for a portion of our staff

a common theme from the interviews: “The one

and that is pretty huge for us from a forecasting

thing I can say specifically about our PCs is thatand budgeting perspective.”

we’re not getting the longevity out of them that
we’re getting out of our Macs. We’re replacing•

fantastic. It’s the best laptop that Apple has madepush a lot of our Macs to four or five-plus years.”in a very long time.”

WHY MAC?

The director in the technology industry said:

The interviewees said their organizations searched“From a performance perspective, the MacBook

for a solution that could:

Air with M1 is impressive. The battery lasts

Be more stable and have fewer issues thanforever. I don’t have the feeling that I miss out on

PCs. The IT director in the retail industry said:

anything.”“When we put people on M1 [devices], they tend
to go radio silent from a support perspective.
Everything just works. It is a much more stable
platform.”•

Improving EX. The IT director in the retailindustry said: “I use an M1, and I love it. It’s

PCs every two to two-and-a-half years while we•

Gaining the ability to reduce overall device•

Improving performance (even versus
previous Macs). The IT director in the retailindustry said: “We have received really positive
feedback on the M1 across the board. All our

Improve employee engagement, retention,

users who have them love them, and they raveand productivity. A manager of infrastructure,

about the battery life and how fast they are. I see

cloud services, and network management in thethe productivity benefit on my side, too. I work

utilities industry said: “We looked to the futurewith a lot of big reports and a lot of complex IT

and realized that we need to be able to attract

software, and I spend a lot less time waiting forand retain our talent — especially younger

small things than I used to. There is a speed

workers. We think [using] Mac is a good way to

improvement across the board.”

help attract and retain those employees.”•

Mac is a more secure platform. An endpoint
services director in the healthcare industry
stated: “Our executives looked over at our CISO
and asked, ‘As a result of moving to Mac in ourenterprise, are we going to be more secure froma workstation perspective?’ And his answer was
simply ‘Yes.’”“When the test team got theirhands on a MacBook Air M1,
they did the test, and it
outperformed all the PC devices
they had.”
Director, technology industry

THE TOTAL ECONOMIC IMPACT™ OF MAC IN ENTERPRISE: M1 UPDATE

9

THE MAC CUSTOMER JOURNEYCOMPOSITE ORGANIZATION
Based on the interviews, Forrester constructed a TEI
framework, a composite company, and an ROI
analysis that illustrates the areas financially affected.
The composite organization is representative of theinterviewees’ organizations, and it is used to present
the aggregate financial analysis in the next section.
The composite organization has the following
characteristics:
Description of composite. The composite is a

Key assumptions• 100,000 employees• 33% Macs deployedduring three years• 80% iOS adoption prior
to employee choiceprogramglobal organization headquartered in North America
with 100,000 employees, and it has a highpenetration and adoption rate of iOS. Some
employees had been using Mac in an unsupported
state outside of corporate policy, so IT does not
manage those machines. There were no formal

Note that many of the benefits modeled for thecomposite organization are achievable while acompany scales up its Mac deployment.

infrastructures or best practices in place for an
employee choice program, so decision-makers choseto implement their own.
Deployment characteristics. During the first three
years, the composite organization deploys Macs to
33,000 employees (roughly one-third of its total
employees) as 10,000 employees select Mac in Year1, 11,000 select Mac in Year 2, and 12,000 select
Mac in Year 3. The organization deploys Mac devices
to new hires or as part of employees’ standard device
refresh cycles. These devices are financed throughApple Finance on a three-year lease. Employees
have a range of device options to select from basedon their roles and specific functions. Options include
both PC and Mac devices in a predetermined
performance tier, baseline devices (with starting
prices of $1,000), mid-range devices (with starting
prices of $1,600), and high-end devices (with starting
prices of $2,400. Decision-makers consider the
MacBook Air with M1 to be more suitable as abaseline device for a wide range of employees thandevices typical of the baseline category due to its
power efficiency and performance.

THE TOTAL ECONOMIC IMPACT™ OF MAC IN ENTERPRISE: M1 UPDATE

10

THE MAC CUSTOMER JOURNEY

DEVICE LIFECYCLE COSTS FOR COMPOSITE

employees without sacrificing performance, reducing

ORGANIZATION

the average cost of each device. The composite

The information on this page is based on data

organization sees ongoing costs of management andcollected from organizations that deployed Macs insupport drop with improved reliability of M1 Macs.

their environments and increased their Mac footprints
annually.
Composite Organization Context

Three-Year Support And Operational
Costs

The financial model is based on a composite

MetricPC

Macorganization that was constructed with the following

Provisioning

$43

$3.58

Service tickets andresolution

$540

$162

years of an employee choice program. Both PC

Additional general IT
management$758.60$500.06

and Mac deployments consist of multiple device

Energy costs

$42

$14

Risk adjustment

$0

$69

$1,383.60$748.64

details:•

Decision-makers anticipate deploying Mac to33% of the organization’s workforce during three

types at multiple price points to fit the needs ofvarious teams and functions.
•

The organization deploys 100,000 computerdevices (one device per employee) during the

Total
Differential$634.96three-year period. It deploys 10% of the devices(10,000 devices) in Year 1, 21% (11,000 devices)in Year 2, and 33% (12,000 devices) in Year 3.
•

During the three-year timeframe, the organization
deploys a total of 33,000 Macs vs. 67,000 PCs.

For this scenario and to make a clear comparison,

Three-Year Hardware And Software
Costs
MetricPC

Mac$1,200$1,500

Incremental required
software

$570

$120

Incremental peripherals

$0

$50

Device costs

Forrester only leveraged the data available in thefinancial model, and we examined the forecasted
costs to acquire, secure, and maintain each device
over three years.

Residual value %

10%

25%

ANALYSIS

Residual value $($120)($375)

Combining the costs of hardware, software, support,

Risk adjustment($83)$64.75and operations over three years leads to a

Total

$1,567.50$1,359.75

cumulative cost advantage for Mac deployments.
Note that each benefit and cost category has amodeled risk adjustment as described in the benefit
and cost sections of the TEI.
The primary differences between the M1 Macs andother Mac devices are improved performance atlower price points. This allows organizations to
deploy lower price point devices to a wider range of

THE TOTAL ECONOMIC IMPACT™ OF MAC IN ENTERPRISE: M1 UPDATE

Differential$207.75

Total average estimated perdevice savings (three year):$842.71
Source: A commissioned Forrester Consulting study based ondata from 10 organizations that currently deploy Macs and haveincreased their Mac deployment annually11Analysis Of Benefits
Quantified benefit data as applied to the composite

Total Benefits
Year 1

Year 2

Year 3

Total

Present
Value

Reduced IT support andoperational costs$2,414,880$5,071,248$7,969,104$15,455,232$12,373,765

Btr

Reduced and avoided
costs$12,144,800$15,255,252$18,558,174$45,958,226$37,591,404

Ctr

Reduced risk of a data
breach$878,852$1,845,589$2,900,211$5,624,652$4,503,208

Dtr

Improved employee
productivity andengagement$15,012,800$31,526,880$49,542,240$96,081,920$76,925,091

Total benefits (riskadjusted)$30,451,332$53,698,969$78,969,729$163,120,030$131,393,468

Ref.

Benefit

Atr

REDUCED IT SUPPORT AND OPERATIONAL•

easier to resolve because there is less

COSTS

complexity with the Mac ecosystem than there is

Evidence and data. The interviewees said zero-with PCs. Additionally, there were fewer

touch deployment of Macs reduced provisioning time

hardware-related issues with Macs and fewer

and effort, Mac users create fewer support tickets,

dependencies on multiple vendors to perform

and the tickets that do come in are cheaper toeach task — especially among users of M1

resolve than those for PCs. This enabled IT teams to

Macs.

manage more Macs with fewer FTEs compared to
the requirements for PCs. Interviewees said:••

deployments could be managed by a smaller
team relative to PC deployments. Mac has a

the employees, and all applications and relevant

simplified tool set, more automation, and Apple

policies were automatically downloaded andautomatically pushes updates and patches for its

managed via a third-party MDM platform. ThisOS and some applications to every device.

process also involved leveraging Apple’s device

Additionally, Mac devices typically require lessenrollment feature of Apple Business Manager.

overall attention from IT during the course of thelifecycle.

Mac users opened fewer service tickets
compared to their PC-using counterparts due toself-service capabilities on Mac, and theyexperienced fewer issues with performanceoverall. Interviewees also said Mac users tend to
be more self-sufficient and motivated to resolve
issues.

An IT FTE can manage more Mac devices thanPCs, which means the organizations’ Mac

IT teams required less time to provision each
Mac because devices were shipped directly to•Service tickets that were opened for Mac wereModeling and assumptions. Based on the customer
interviews, Forrester estimates the following for thecomposite organization:•

It takes an IT employee 5 minutes to set up a
Mac for provisioning as opposed to 60 minutes
for a PC. Additionally, Macs receive major

THE TOTAL ECONOMIC IMPACT™ OF MAC IN ENTERPRISE: M1 UPDATE

12

ANALYSIS OF BENEFITS

operating system updates and patches annually
though Apple, so the savings from automatedsoftware updates accrue on an annual basis.
•

Ten percent of the organization’s employees(10,000 employees) choose Mac instead of PC
as their new or replacement machine in Year 1.
This increases to 11% in Year 2 and to 12% inYear 3. By the end of Year 3, 33% of theorganization (33,000 employees) use a Mac.

•

The average fully burdened hourly salary for an
IT FTE is $43. Note that Forrester used

“We can manage the software
distribution better with Mac
because every employee candownload updates through the
App Store. If there are issues,
the user can simply delete andre-install the app, and we caneven send push notifications toremind people to update.”conservative estimates for salaries.
•

Each PC user creates an average of six support
tickets per year, and each ticket costs $30 toresolve. Mac users create 60% fewer tickets thanManager of infrastructure, cloudservices, and network
management, utilities industry

PC users, and each ticket costs 25% less toresolve than those for PCs. Because Apple
maintains control over the hardware and theoperating system, it tends to be easier for IT toresolve issues and with fewer errors. This means
it requires fewer steps to resolve any given issue
on a Mac vs. a PC.
•

An IT FTE can manage an average of 200 PCs
compared to 500 Mac devices (with best-practice
deployments of enterprise Macs).

•

Forrester included the reduced provisioning andservice ticket effort associated with Macs in themachine-to-FTE ratio. These benefits are
subtracted from this benefit in the final
quantification to avoid double-counting.

Risks. The value of this benefit can vary amongorganizations due to:•

The average fully burdened salary of an IT FTE.

•

Whether or not the organization uses Apple’s
best practices in deploying Mac in the enterprise.

Results. To account for these risks, Forrester
adjusted this benefit downward by 10%, yielding athree-year, risk-adjusted total PV (discounted at 10%)of $12.4 million.

THE TOTAL ECONOMIC IMPACT™ OF MAC IN ENTERPRISE: M1 UPDATE

13

ANALYSIS OF BENEFITSReduced IT Support And Operational Costs
Ref.

MetricSourceYear 1

Year 2

Year 3

A1

Time required to provision a PC (minutes)

Composite

60

60

60

A2

Time required to provision a Mac(minutes)

Composite

5

5

5

A3

Number of Macs provisioned

B3

10,00011,00012,000

A4

Average fully burdened hourly salary per
IT FTE (rounded)

Composite

$43

$43

$43

A5

Subtotal: Reduced provisioning effort(rounded)(A1-A2)/60*A3*A4$394,167$433,583$473,000

A6

Average number of tickets per PC per
year

Composite

6

6

6

A7

Reduced number of tickets per Mac

Composite

60%

60%

60%

A8

Average cost to resolve tickets per PC

Composite

$30

$30

$30

A9

Reduced cost to resolve tickets per Mac

Composite

25%

25%

25%

A10

Support costs for PCs

D1*D2*A6*A8$1,800,000$3,780,000$5,940,000

A11

Support costs for Macs

D1*D2*A6*A7*A8*(1-A9)$810,000$1,701,000$2,673,000

A12Subtotal: Reduced support costs

A10-A11$990,000$2,079,000$3,267,000

A13

Number of PCs managed per IT FTE

Composite

200

200

200

A14

Number of Macs managed per IT FTE

Composite

500

500

500

A15

Subtotal: Reduced management costs(rounded)((D1*D2/A13) (D1*D2/A14))*A4*2,080-A5-A12$1,299,033$3,122,137$5,114,560

At

Reduced IT support and operational costs

A5+A12+A15$2,683,200$5,634,720$8,854,560

Risk adjustment↓10%$2,414,880$5,071,248$7,969,104

Atr

Reduced IT support and operational costs(risk-adjusted)
Three-year total: $15,455,232

REDUCED AND AVOIDED HARDWARE AND

Three-year present value: $12,373,765•

The M1 chip allowed the organizations to offer

SOFTWARE COSTS

Macs to more employees, including baseline

Evidence and data. With the improved powerusers. In the 2019 study, interviewees said theirefficiency and performance delivered by Macs withorganizations primarily deployed Mac to mid-tier

M1, the interviewees’ organizations can offer M1

and top-tier users who needed the additional

Macs to more employees, including those who werecomputing power and speed and those who

previously assigned higher-priced devices.

preferred Macs.

THE TOTAL ECONOMIC IMPACT™ OF MAC IN ENTERPRISE: M1 UPDATE

14

ANALYSIS OF BENEFITS•

On average, a Mac costs more up front than a•

Mac deployment in Year 1, 55% of its total Mac

has dropped significantly when looking at the

deployment in Year 2, and 65% of its total Mac

total deployment. This difference is partially offset

deployment in Year 3.

by the cost of a comparable PC that theemployee would have otherwise needed to order•analysis because the interviewees’ organizations

Using Macs did not require the organizations to

did not have enough time to assess thepurchase an operating system license or any

differences between M1 Macs and non-M1 Macs.

software update maintenance because Apple
automatically pushes out OS updates.
•

The underlying architecture of Mac and theincluded security features eliminated the need forsome additional endpoint security licenses that

Risks. The value of this benefit may vary amongorganizations due to:•

The number of employees who choose Mac.

•

The average cost of an enterprise PC and theresidual value after three years.

are required to secure comparable PC
deployments. Additionally, Apple automaticallypushes out security patches for Mac at no cost.
••

The number of an organization’s endpoint
licenses, which may vary depending on which

Non-M1 Macs require 50% less energy than PCs,

endpoint solutions are replaced due to Mac’sand M1 Macs require 50% less energy than non-underlying architecture and included security

M1 Macs.

features.

Modeling and assumptions. Based on the customer
interviews, Forrester estimates the following for thecomposite organization:•

Forrester did not include any incremental security
benefits related to Apple’s M1 chip in this

if there was no Mac available.
•

M1 Macs make up 40% of the organization’s total

PC, but the average purchase price for a Mac

The percent of employees who choose Mac•

Additional OS and security license costs for PCs.

Results. To account for these risks, Forrester
adjusted this benefit downward by 5%, yielding athree-year, risk-adjusted total PV of $37.6 million.

annually is 10% in Year 1, 11% in Year 2, and
12% in Year 3.
•

The average cost for an enterprise PC is $1,200,
and that machine maintains a 10% residual value
after three years. This $1,200 figure represents
an average of all deployed PCs, including
baseline devices and more expensive top-tierdevices.

•

The average OS license cost for a PC is $150
per year.

•

Additional endpoint security licenses for PCs costan average of $40 per year per machine.

•

Each Mac requires 50% less energy to operate
than a PC, and M1 Macs require 75% lessenergy on average than a PC.

THE TOTAL ECONOMIC IMPACT™ OF MAC IN ENTERPRISE: M1 UPDATE

15

ANALYSIS OF BENEFITSReduced And Avoided Hardware And Software Costs
Ref.

MetricSourceYear 1

Year 2

Year 3

B1

Total employees

Composite

100,000

100,000

100,000

B2

Percentage of employees who choose
Mac

Composite

10%

11%

12%

B3

Number of employees who choose MacB1*B2

10,00011,00012,000

B4

Cumulative Macs deployedD1*D2

10,00021,00033,000

B5

Average cost per PC

Composite$1,200$1,200$1,200

B6

Residual value for PCs after three years

Composite

10%

10%

10%

B7

Additional OS license costs

Composite

$150

$150

$150

B8

Additional endpoint security licenses

Composite

$40

$40

$40

B9

Subtotal: Avoided PC costs((B3*B5) (B3*B5*B6))+(B4*(B7+B8))$12,700,000$15,870,000$19,230,000

B10Annual energy costs per PC

60W, 8h a day

$14

$14

$14

B11

Percentage of total Macs deployed with
M1

Composite

40%

55%

65%

B12

Legacy Mac consumption

30W, 8h a day

$7

$7

$7

B13

M1 consumption

15W, 8h a day

$3

$3

$3

B14

Reduced energy costs per Mac (2019findings) (rounded)((50%*(1B11))+(75%*B11)

60%

64%

66%

B15

Subtotal: Reduced energy costs

B10*B14*B4$84,000$188,160$304,920

Bt

Reduced and avoided hardware andsoftware costs

B9+B15$12,784,000$16,058,160$19,534,920

Risk adjustment↓5%$12,144,800$15,255,252$18,558,174

Btr

Reduced and avoided hardware andsoftware costs (risk-adjusted)
Three-year total: $45,958,226

REDUCED RISK OF A DATA BREACH
Evidence and data. Interviewees noted that they
consider Mac to be a fundamentally more secure

Three-year present value: $37,591,404

of enrollment in device management platforms as
reasons for the improved security.
•

Apple implemented a new endpoint security

architecture than their PCs. They cited Mac’s built-in

framework that allows optional third-party security

security architecture, automatic encryption, and ease

tools to run in a more secure part of the operating

THE TOTAL ECONOMIC IMPACT™ OF MAC IN ENTERPRISE: M1 UPDATE

16

ANALYSIS OF BENEFITS

system. This enhanced, built-in security feature•

helped the organizations to reduce opening lowlevel access to third parties that have been used
as attack vectors themselves.
•

M1 Macs have a fully vertically integrated

The average number of breaches experienced
annually.

•

The overall scale and impact of a data breach.

•

The adoption of Mac at the organization.

architecture, and although the interviewees’

Results. To account for these risks, Forresterorganizations have not fully tested their security

adjusted this benefit downward by 20%, yielding aefficacy, early results indicated that M1 Macs are

three-year, risk-adjusted total PV of $4.5 million.

at least as secure as the previous generation ofMacs, and they can be managed the same way.
•

The interviewees’ organizations had fewer
security incidents and alerts with their Mac
deployments than with their PC deployments.

•

One interviewee said their organization has had
zero malware incidents since moving to a 100%
Mac deployment three years earlier.

Modeling and assumptions. Based on the customer
interviews and Forrester research, Forrester
estimates the following for the composite
organization:•

The composite organization experiences anaverage of 2.5 data breaches annually.2•

The average cost of a security breach is $6.1

“By default, Macs are more secure[than PCs] out of the box. The real big
benefit and the reason I call it out isApple’s device enrollment features ofApple Business Manager. Device
enrollment is a game-changer for us interms of security. Even if it’s acellophane, out-of-the-box purchasethat we made remotely from a different
country, the device is automaticallyenrolled and protected. That’s a big
plus to us in terms of security andprotecting the company IP that we
don’t get on the PC side.”million, which includes fines, fees, and the cost of
remediation efforts. This average cost excludes

IT director, retail industry

internal user downtime related to the breach.
•

Mac deployment in the enterprise is 10% in Year1, 21% in Year 2, and 33% in Year 3.

•

Mac reduces the likelihood of a data breach by
50% per device.

•

Each security breach leads to 3.6 hours of user
downtime and impacts 20% of the organization.

•

The average fully burdened hourly salary for aworker is $38.

Risks. The value of this benefit may vary amongorganizations due to:

THE TOTAL ECONOMIC IMPACT™ OF MAC IN ENTERPRISE: M1 UPDATE

17

ANALYSIS OF BENEFITSReduced Risk Of A Data Breach
Ref.

MetricSourceYear 1

Year 2

Year 3

C1

Average number of data breaches per
year per organization with 100,000 FTEForrester research

2.5

2.5

2.5

C2

Average potential cost of a data breach,
exclusive of internal user downtime

Forrester research$6,052,518$6,052,518$6,052,518

C3Percentage of employees using Mac

D2

10.00%

21.00%

33.00%

C4

Reduced likelihood of data breach withMac

Composite

50%

50%

50%

C5

Number of data breaches avoided with
Mac deployment - annuallyC1-((C1*(1C3))+(C1*C3*C4))

0.13

0.26

0.41

C6

% of data breaches avoided with Mac
deployment - annually

C5/C1

5.0%

10.5%

16.5%

C7

Subtotal: Avoided costs of remediation,customer resolution, fines, brand rebuild,
and all other external-facing costs(rounded)C1*C2*C3*C4$756,565$1,588,786$2,496,664

C8Cumulative number of Macs deployed

B4

10,00021,00033,000

C9

Average fully burdened hourly employee
salary

D7

$38

$38

$38

C10

Diminished/eliminated internal user
productivity hours per breach

Forrester research

3.6

3.6

3.6

C11

Average percentage of employees
affected per breachComposite

20%

20%

20%

C12

Subtotal: Cost of reduced internal
productivity

C1*C4*C8*C9*C10*C11$342,000$718,200$1,128,600

Ct

Reduced risk of a data breach

C7+C12$1,098,565$2,306,986$3,625,264

Risk adjustment↓20%$878,852$1,845,589$2,900,211

Ctr

Reduced risk of a data breach (riskadjusted)
Three-year total: $5,624,652

Three-year present value: $4,503,208

employee productivity and experience with Mac

IMPROVED EMPLOYEE PRODUCTIVITY AND

at the interviewees’ organizations.

ENGAGEMENT
Evidence and data. Interviewees said their•

The organizations realized improved employee

organizations saw faster start-up times, improved

engagement due to offering employees the ability

productivity and engagement, and reduced churn forto select Mac as their preferred device. Improved

employees who selected Mac.

engagement led to an increase in discretionary•

Improved machine performance including fasterstart-up times, improved processing speed, andeffort from Mac users, which translated into an
overall productivity gain.

improved battery life all contributed to improving

THE TOTAL ECONOMIC IMPACT™ OF MAC IN ENTERPRISE: M1 UPDATE

18

ANALYSIS OF BENEFITS•

Improved employee engagement from•

specifically to the Mac deployment. The rest of

to a tangible improvement in retention rates forthe benefit is attributed to talent, organizational

those employees that selected Mac.

structure, and developing efficient workflows.

Modeling and assumptions. Based on the customer
interviews, Forrester estimates for the composite
organization:

Improved Employee Retention•

Ten percent of the composite organization’s

15%.
•100,00 employees choose Mac in Year 1. This
increases to 21% in Year 2, and to 33% in Year3.
•

The average employee churn rate for employees
who don’t choose Mac prior to the deployment is

Improved Productivity From Time Saved•

Forrester attributed 75% of this benefit

employees using their preferred devices also led

There is a 20% improvement in retention for
employees who choose Mac.

•

It costs 50% of an employee’s salary to replace
an employee due to attrition. This is a

Each employee who uses a PC spends anconservative estimate compared to industry

average of 5 minutes per day waiting for tasks

research performed by the Society for Humanlike waking or rebooting the computer andResource Management.3

loading large files. Mac users spend an averageof 1 minute per day waiting for these tasks.
•

Productivity improvement
per Mac user

The average fully burdened annual salary of an
employee is $78,000.

•

5% or 104 hours

The organization reallocates 20% of the timesavings toward productive work.

per year

Improved Employee Productivity And
Performance•

The organization sees a 5% increase inproductivity and performance for employees who

Risks. The value of this benefit may vary amongchoose Mac. This equates to 104 hours oforganizations due to:additional productivity for Mac users annually.
••

their average burdened salaries.

According to customers in the 2019 study, sales
teams typically see a 5% improvement by using•

The salaries of employees.

customers for this update, Forrester now extends•

Productivity capture.

this benefit to all employees who deploy Mac.

•

Improvements in employee productivity,

Macs. With the additional data collected fromInterviewees said Mac users have higher

performance, and retention.

engagement and better performance than PC•

The number of employees who choose Mac and

The cost to replace an employee.

users, regardless of role.

•

The organization reallocates 20% of the time

Results. To account for these risks, Forrestersavings toward productive work.

adjusted this benefit downward by 20%, yielding athree-year, risk-adjusted total PV of $76.9 million.

THE TOTAL ECONOMIC IMPACT™ OF MAC IN ENTERPRISE: M1 UPDATE

19

ANALYSIS OF BENEFITS

Improved Employee Productivity And Engagement
Ref.

MetricSourceYear 1

Year 2

Year 3

D1

Number of employees

Composite

100,000

100,000

100,000

D2

Percentage of employees using Mac

Composite

10.0%

21.0%

33.0%

D3

Average time for PC wake/reboot daily(minutes)

Composite

5

5

5

D4

Average time for Mac wake/reboot daily(minutes)

Composite

1

1

1

D5

Average workdays per year

Composite

240

240

240

D6

Average fully burdened annual employee
salaryComposite$78,000$78,000$78,000

D7

Average fully burdened hourly employee
salaryComposite

$38

$38

$38

D8

Productivity capture

Assumption

20%

20%

20%

D9

Subtotal: Improved productivity fromquicker start-up

D1*D2*(D3-D4)/60*D5*D7*D8$1,216,000$2,553,600$4,012,800

D10Number employees using MacD1*D2

10,00021,00033,000

D11

Average fully burdened annual employee
salaryD6$78,000$78,000$78,000

D12

Increased productivity for employees whochoose Mac

Composite

5%

5%

5%

D13

Productivity capture

Composite

20%

20%

20%

D14

Attribution

Composite

75%

75%

75%

D15

Subtotal: Improved productivity

D10*D11*D12*D13*D14$5,850,000$12,285,000$19,305,000

D16

Average employee churn rate for
employees who don’t choose Mac

Composite

15%

15%

15%

D17

Improvement in retention with employees
who choose Mac

Composite

20%

20%

20%

D18

Cost to replace an employee

D6*50%$39,000$39,000$39,000

D19

Subtotal: Improved employee retention

D1*D2*D16*D17*D18$11,700,000$24,570,000$38,610,000

Dt

Improved employee productivity andengagement

D9+D15+D19$18,766,000$39,408,600$61,927,800

Risk adjustment↓20%$15,012,800$31,526,880$49,542,240

Dtr

Improved employee productivity andengagement (risk-adjusted)
Three-year total: $96,081,920

THE TOTAL ECONOMIC IMPACT™ OF MAC IN ENTERPRISE: M1 UPDATE

Three-year present value: $76,925,091

20

Analysis Of Costs
Quantified cost data as applied to the composite

Total Costs
Ref.

Cost

Etr

Implementation andlabor costs

Ftr

Hardware andhardware deployment
costs
Total costs (riskadjusted)

InitialYear 1

Year 2

Year 3

Total

Present
Value$136,620$308,568$308,568$308,568$1,062,324$903,983$0$5,191,952$12,120,800$19,258,450$36,571,202$29,206,305$136,620$5,500,520$12,429,368$19,567,018$37,633,526$30,110,288

IMPLEMENTATION AND LABOR COSTS•

Ongoing management was a minimal lift for the

Evidence and data. Interviewees said theirinterviewees’ organizations. They saw fewerorganizations incurred implementation and labor

service tickets from Mac users in general and acosts in the following areas:•significant decrease from those using M1 Macs.

Professional services costs. The interviewees’

This allowed each IT resource to manage moreorganizations required little or no professional

Mac devices. The average number of IT

services to support the implementation due topersonnel responsible for ongoing management

existing familiarity with deploying Macs in theactivities (e.g., managing patches and inventory)

past. Interviewees recommended working with aat the interviewees’ organizations range from one

third-party firm or an internal expert to ensure

to 10 FTEs.

that organizations effectively capture the value ofthe Mac investment by following Apple’s bestpractices for deployment and by avoiding
unnecessary bloatware.
•Internal labor for ongoing platform support.

Internal labor for implementation. The

Modeling and assumptions. Based on the customer
interviews, Forrester assumes the following about thecomposite organization:•

implementation.

interviewees noted that the provisioning process
for Mac required minimal IT resources. Deploying•

services, and network management in the utilities•

the Mac because the employee can activate the
Mac by themselves by following enrollment
procedures. Then, all the business applications
and software are directly installed on the Mac.”

THE TOTAL ECONOMIC IMPACT™ OF MAC IN ENTERPRISE: M1 UPDATE

Three IT FTEs are tasked with ongoing platform
support.

industry said: “As an IT department, we don’t
have to manage anything about the activation of

Two internal IT FTEs are dedicated to initial
implementation over 20 weeks.

Macs to employees was almost a zero-touch
experience. The manager of infrastructure, cloud

It spends $50,000 on professional services for•

The average fully burdened hourly salary of an IT
FTE is $43.

Risks. The costs of implementation and labor mayvary among organizations due to:21

ANALYSIS OF COSTS•

Whether or not the organization uses

Results. To account for these risks, Forrester

professional services.

adjusted this cost upward by 15%, yielding a three-

The organization’s prior experience deploying.

•

Macs.
•

The number of Macs deployed to employees.

•

The burdened salary of IT resources.

year, risk-adjusted total PV (discounted at 10%) of
under $904,000.

Implementation And Labor Costs
Ref.

MetricSourceInitialE1

Professional services

Composite$50,000

E2

Internal implementation FTEs

Composite

2

E3

Average fully burdened hourly salary per
IT FTE

A4

$43

E4

Implementation time (weeks)

Composite

20

E5

Ongoing platform support FTEs

Composite

Et

Implementation and labor costs

E1+(E2*E3*E4*40)+(E5*E3*20
80)

Risk adjustment↑15%

Implementation and labor costs (riskadjusted)

Etr

Three-year total: $1,062,324

HARDWARE AND HARDWARE DEPLOYMENT•

more of their employees. This reduced averagemachine costs while delivering a more powerfulbaseline device to the workforce. Consistent with

$43

$43

3

3

3

$118,800$268,320$268,320$268,320$136,620$308,568$308,568$308,568

Mobile device management costs. The majority

devices and applications for employees.
Interviewees noted that MDM costs for Mac are

deployment costs in the following areas:

MacBook Air devices with M1 at a lower cost to$43

party MDM services to deploy and updateorganizations incurred hardware and hardware

M1, the organizations were able to deploy

Year 3of the interviewees’ organizations used third-

Evidence and data. Interviewees said their

Mac device costs. With the introduction of theYear 2Three-year present value: $903,983

COSTS

•

Year 1less than those for PCs.
•

Mac peripherals and AppleCare fees. Theinterviewees’ organizations incurred expenses for
Mac peripherals (e.g., dongles, connectors) andAppleCare extended warranties and enterprise
support.

the 2019 study, interviewees for this update said

Modeling and assumptions. Based on the customer

Macs provide significant residual value and someinterviews, Forrester assumes the following about theof the organizations do not need to replace theircomposite organization:

devices until after more than five years of usage.

THE TOTAL ECONOMIC IMPACT™ OF MAC IN ENTERPRISE: M1 UPDATE

22

ANALYSIS OF COSTS••

The organization deploys 10,000 Macs in Year 1,

Risks. The costs of hardware and hardware

11,000 in Year 2, and 12,000 in Year 3.

deployment may vary among organizations due to:

The average cost of a Mac is $1,600 in Year 1,•

The number and type of Mac devices deployed.

•

Annual costs of a third-party MDM, which may$1,500 in Year 2, and $1,400 in Year 3 and each
Mac is estimated to maintain a residual value ofvary depending on the size of the deployment,

25% after three years. The average cost of a Mac

hosting requirements, and required

declines each year as the organization introduces

implementation or integration costs.

additional M1 Macs into the distribution ofmachines purchased.
•

The incremental costs of Mac peripherals andAppleCare support.

The average cost of a Mac depends on the
distribution of machines purchased. For example,•

Whether or not the organization uses Applethe average cost could be higher if employees

Financial Services or a competing provider tofocus on top-end MacBook Pros, or it could be

optimize financial terms.

lower if more employees choose the MacBook
Air.
•

•

The organization uses Apple Financial Services

Results. To account for these risks, Forrester
adjusted this cost upward by 15%, yielding a threeyear, risk-adjusted total PV of $29.2 million.

to finance a three-year lease on each Mac. This
allows the up-front cost to be spread over three
years. Each device is paid over three years inequal installments as reflected in line F9 of themodel. For simplicity, the financial model does
not include the cost of interest.
•

The average annual cost for a third-party MDM is$40 per employee.

•

The average annual cost for additional Mac
peripherals is $50 upon deployment.

•

The average cost of a three-year service contract
for AppleCare for Enterprise is $129 per Mac
upon deployment when there are more than
5,000 Apple devices deployed by the enterprise.

•

To account for residual value, Forrester
subtracted the three-year PV residual value fromthe costs of the year the devices are purchased.

•

If expanding the financial model to additional
years, one must consider the installments owed
for devices purchased in Years 2 and 3, as wellas the additional benefits realized during those
years.

THE TOTAL ECONOMIC IMPACT™ OF MAC IN ENTERPRISE: M1 UPDATE

23

ANALYSIS OF COSTS

Hardware And Hardware Deployment Costs
Ref.

MetricSourceInitialYear 1

Year 2

Year 3

F1

Number of Macs deployedB3

0

10,00011,00012,000F2

Cumulative Macs deployedB4

0

10,00021,00033,000F3

Average cost per Mac

Composite$0$1,600$1,500$1,400

F4

Average cost for additional Mac
peripherals

Composite

$0

$50

$50

$50

F5

Average cost for AppleCare per Mac

Composite

$0

$129

$129

$129

F6

Subtotal: Annual cost of peripherals andAppleCare for new Macs

F1*(F4+F5)$0$1,790,000$1,969,000$2,148,000

F7Average annual cost per Mac withpayments set during three years(rounded)

F3/3

$0

$533

$500

$467

F8

Average annual third-party MDM cost permac

Composite

$0

$40

$40

$40

F9

Subtotal: Annual device and MDM costs

F2*(F7+F8) +Year 1 installment+ Year 2 installment$0$5,730,000$11,670,000$17,754,000

F10Residual value of a Mac after 3 years

Composite

0%

25%

25%

25%

F11

Subtotal: Residual value (three-year PV)

F1*F3*F10, threeyear PV$0$3,005,259$3,099,174$3,155,522

Ft

Hardware and hardware deployment
costs

F6+F9-F11$0$4,514,741$10,539,826$16,746,478

Risk adjustment

↑15%
$0

$5,191,952$12,120,800$19,258,450

Ftr

Hardware and hardware deployment
costs (risk-adjusted)
Three-year total: $36,571,202

THE TOTAL ECONOMIC IMPACT™ OF MAC IN ENTERPRISE: M1 UPDATE

Three-year present value: $29,206,305

24

Financial Summary
CONSOLIDATED THREE-YEAR RISK-ADJUSTED METRICS

Cash Flow Chart (Risk-Adjusted)
Total costs

Total benefits

Cumulative net benefits

Cash
flows

$140.0 M$120.0 M$100.0 M

The financial results calculated in the
Benefits and Costs sections can beused to determine the ROI, NPV, andpayback period for the composite
organization’s investment. Forrester
assumes a yearly discount rate of 10%
for this analysis.

$80.0 M
$60.0 M

These risk-adjusted ROI,
NPV, and payback period
values are determined byapplying risk-adjustment
factors to the unadjusted
results in each Benefit andCost section.

$40.0 M
$20.0 M-$20.0 M-$40.0 M
InitialYear 1

Year 2

Year 3

Cash Flow Analysis (Risk-Adjusted Estimates)
InitialYear 1

Year 2

Year 3

Total

Present
Value($136,620)($5,500,520)($12,429,368)($19,567,018)($37,633,526)($30,110,288)

Total benefits$0$30,451,332$53,698,969$78,969,729$163,120,030$131,393,468

Net benefits($136,620)$24,950,812$41,269,600$59,402,712$125,486,504$101,283,180

Total costs

ROI
Payback
periodTHE TOTAL ECONOMIC IMPACT™ OF MAC IN ENTERPRISE: M1 UPDATE

336%<6 months

25Appendix A: Total Economic
ImpactTotal Economic Impact is a methodology developed

PRESENT VALUE (PV)by Forrester Research that enhances a company’s

The present or current value oftechnology decision-making processes and assists(discounted) cost and benefit estimatesvendors in communicating the value proposition of

given at an interest rate (the discounttheir products and services to clients. The TEIrate). The PV of costs and benefits feed

methodology helps companies demonstrate, justify,

into the total NPV of cash flows.

and realize the tangible value of IT initiatives to bothsenior management and other key businessstakeholders.

NET PRESENT VALUE (NPV)TOTAL ECONOMIC IMPACT APPROACH

The present or current value ofBenefits represent the value delivered to the(discounted) future net cash flows given

business by the product. The TEI methodology

an interest rate (the discount rate). A

places equal weight on the measure of benefits andpositive project NPV normally indicatesthe measure of costs, allowing for a full examinationthat the investment should be made,of the effect of the technology on the entire

unless other projects have higher NPVs.

organization.
Costs consider all expenses necessary to deliver the

RETURN ON INVESTMENT (ROI)

proposed value, or benefits, of the product. The cost
category within TEI captures incremental costs overA project’s expected return inthe existing environment for ongoing costs

percentage terms. ROI is calculated byassociated with the solution.

dividing net benefits (benefits less costs)

Flexibility represents the strategic value that can beby costs.

obtained for some future additional investmentbuilding on top of the initial investment already made.

DISCOUNT RATE

Having the ability to capture that benefit has a PV
that can be estimated.
Risks measure the uncertainty of benefit and costestimates given: 1) the likelihood that estimates willmeet original projections and 2) the likelihood that
estimates will be tracked over time. TEI risk factors

The interest rate used in cash flow
analysis to take into account thetime value of money. Organizations
typically use discount rates between
8% and 16%.

are based on “triangular distribution.”
PAYBACK PERIOD
The initial investment column contains costs incurred at “time0” or at the beginning of Year 1 that are not discounted. Allother cash flows are discounted using the discount rate at theend of the year. PV calculations are calculated for each total
cost and benefit estimate. NPV calculations in the summary
tables are the sum of the initial investment and thediscounted cash flows in each year. Sums and present value
calculations of the Total Benefits, Total Costs, and Cash Flowtables may not exactly add up, as some rounding may occur.

THE TOTAL ECONOMIC IMPACT™ OF MAC IN ENTERPRISE: M1 UPDATEThe breakeven point for an investment.
This is the point in time at which net
benefits (benefits minus costs) equal
initial investment or cost.

26

Appendix B: Supplemental Material
Related Forrester Research“Improve Your Threat Protection Efficacy Using Built-In OS Security,” Forrester Research, Inc., December 2, 2020
“Improve Employee Experience To Better Your Business Performance,” Forrester Research, Inc., March 12, 2021
“Design For Work: Boost Productivity And Satisfaction By Transforming Enterprise UX,” Forrester Research, Inc.,
October 7, 2020

Appendix C: Endnotes
1 Source: “Best Practices: Technology Experience Management,” Forrester Research, Inc., April 8, 2021.
2 Source: Forrester Consulting Cost Of A Cybersecurity Breach Survey, Q4 2020.
3 Source: iGrad Author, “The Cost of Replacing an Employee and the Role of Financial Wellness,” Enrich, January

2021 (https://www.enrich.org/blog/The-true-cost-of-employee-turnover-financial-wellness-enrich).

THE TOTAL ECONOMIC IMPACT™ OF MAC IN ENTERPRISE: M1 UPDATE

27

THE TOTAL ECONOMIC IMPACT™ OF MAC IN ENTERPRISE: M1 UPDATE

28