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Exam Name: Market Pricing - Conducting a Competitive Pay Analysis
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NEW QUESTION: 1
A security manager is looking into the following vendor proposal for a cloud-based SIEM solution.
The intention is that the cost of the SIEM solution will be justified by having reduced the number of incidents and therefore saving on the amount spent investigating incidents.
External cloud-based software as a service subscription costing $5,000 per month. Expected to reduce the number of current incidents per annum by 50%.
The company currently has ten security incidents per annum at an average cost of $10,000 per incident.
Which of the following is the ROI for this proposal after three years?
Return on investment= Net profit/ Investment where: Net profit= gross profit - expenses.
Return on investment= (gain from investment - cost of investment)/ cost of investment
Subscriptions = 5,000 x 12 = 60,000 per annum
1 0 incidents @ 10,000 = 100.000 per annum reduce by 50% = 50,000 per annum
Thus the rate of Return is -10,000 per annum and that makes for -$30,000 after three years.
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