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Threat Stack TEI Case Study_final

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11 | The Total Economic Impact™ Of Threat Stack Lowered headcount and hiring costs: 41% of total benefits three-year benefit PV $383,911 Benefit 3: Lowered Headcount And Hiring Costs Interviewed organizations noted that, in addition to the productivity improvements described in Benefit 2, they were able to avoid hiring additional headcount for the security team that would have been required if they were not using Threat Stack's professional services. Based on the customer interviews, Forrester estimates for the composite organization: › A third security team member would need to have been hired with the legacy solution. › It costs an organization the equivalent of one year's salary to recruit, hire, and onboard security professionals. • Interviewees also mentioned that Threat Stack reduced onboarding costs for security professionals; however, that is left unquantified in the model for simplicity. This benefit can vary due to uncertainty related to: › Required headcount for the security team. › Fully burdened salary for security professionals. › Hiring costs for security professionals. To account for these risks, Forrester adjusted this benefit downward by 15%, yielding a Year 1 benefit of $226,100, a benefit of $113,050 in years 2 and 3, and a three-year risk-adjusted total PV of $383,911. *Headcount includes normal hiring projections for a typical security tool and is not directly related to Threat Stack. Benefit 3: Lowered Headcount And Hiring Costs Calculation Table REF. METRIC CALC. YEAR 1 YEAR 2 YEAR 3 C1 Projected headcount with legacy solution Composite organization 3 3 3 C2 Headcount with Threat Stack* Composite organization 2 2 2 C3 Average fully burdened salary for security professionals Forrester assumption $133,000 $133,000 $133,000 C4 Subtotal: Additional avoided headcount (C1-C2)*C3 $133,000 $133,000 $133,000 C5 New headcount per year with legacy solution C1-C1 prior year 1 2 2 C6 New headcount per year with Threat Stack C2-C2 prior year 0 2 2 C7 Additional hiring needed with legacy solution C5-C6 1 0 0 C8 Recruiting, hiring, and onboarding costs for security professionals Forrester assumption $133,000 $133,000 $133,000 C9 Subtotal: Avoided hiring costs C7*C8 $133,000 $0 $0 Ct Lowered headcount and hiring costs C4+C9 $266,000 $133,000 $133,000 Risk adjustment ↓15% Ctr Lowered headcount and hiring costs (risk- adjusted) $226,100 $113,050 $113,050

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