FusionReactor delivers ROI – this is how
Putting ROI calculations together for software solutions is not an exact science, because issues caused by software problems generally result in 2 types areas of impact:
- Developer costs spent on finding and fixing errors – savings can be calculated
- Ongoing lost revenue from unsatisfied customers – savings are harder to work out
The costs for developers can be calculated based on average salary and estimations of time spent on attending to defects, the impact of lost revenue due to unhappy customers is much more difficult to calculate and we will not attempt this as part of this analysis.
Calculating the ROI of Using FusionReactor
Using a few industry averages, we can help you calculate the cost in lost development time for your company and what you can save using FusionReactor.
The errors in your applications need to be fixed, or they will affect end users and cause lost revenue. This is where support costs start to mount. A survey of our customers found that (on average) developers spend:
- 80% of time performing Pro‐active work – developing new applications and services
- 20% of time performing Re‐active work ‐ triaging and diagnosing production issues
Using these figures, based on a 40 hour week – approx. 8 hours would be spent triaging and diagnosing software issues
How much does a developer cost on average?
- Average Developer Annual Salary in the USA in 2019 was ~$100,000
- Based on an annual rate of 220 working days per year = ~$440 per day = $55 Hour
How much time would you save using FusionReactor?
We asked FusionReactor customers approximately how much time they estimated they had saved through using FusionReactor to troubleshoot issues, they told us that they achieved savings of between 30% and 70%
- Taking an average of 50% savings
- Based on a 10 man team – 320 hours are spent on Re‐active work each month
Taking our average of 50% saved time this would result in 160 hours saved per month; financially, this translates to savings of $8,800 month or $105,600 per annum.
Based on the assumption that:
- A 10 man team could develop and support 2 applications
- 2 Applications could be run across a cluster of 6 servers
- 6 servers require 6 FR licenses
- Annual FR Ultimate License costs $790 per server (host) – totaling $4740 Year
- 10 Developers would require 10 x FR Developer licenses @ $199 / year = $1,990
- The total annual cost for FusionReactor = $6,750 (all servers covered and each developer using FR)