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Threat Stack TEI Case Study_final

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8 | The Total Economic Impact™ Of Threat Stack three-year benefit PV $235,008 The table above shows the total of all benefits across the areas listed below, as well as present values (PVs) discounted at 10%. Over three years, the composite organization expects risk-adjusted total benefits to have a PV of $932,963. Impact risk is the risk that the business or technology needs of the organization may not be met by the investment, resulting in lower overall total benefits. The greater the uncertainty, the wider the potential range of outcomes for benefit estimates. Reduced risk of breach: 25% of total benefits Analysis Of Benefits QUANTIFIED BENEFIT DATA AS APPLIED TO THE COMPOSITE Benefit 1: Reduced Risk Of Data Breaches Interviewed organizations noted that Threat Stack reduced their risk of data breaches. Based on the customer interviews, Forrester estimates for the composite organization: › For a given data breach, 25,000 records are at risk. › The likelihood of a data breach with the legacy solution was 14% each year. › Threat Stack reduces the likelihood of a data breach by 20%. › There is an average cost of $150 per lost or stolen record, which is approximated from the 2018 Cost of a Data Breach Study performed by Ponemon Institute LLC. 1 This benefit can vary due to uncertainty related to: › Number of at-risk records per data breach. › Likelihood of a breach and subsequent reduction. › Cost per lost or stolen record. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding an annual benefit of $94,500 and a three-year risk-adjusted total PV of $235,008. Total Benefits REF. BENEFIT YEAR 1 YEAR 2 YEAR 3 TOTAL PRESENT VALUE Atr Reduced risk of data breaches $94,500 $94,500 $94,500 $283,500 $235,008 Btr Improved productivity $126,282 $126,282 $126,282 $378,845 $314,044 Ctr Lowered headcount and hiring costs $226,100 $113,050 $113,050 $452,200 $383,911 Total benefits (risk-adjusted) $446,882 $333,832 $333,832 $1,114,545 $932,963

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