The Economics of Networking

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A third-party business consulting firm analyzed the total cost of ownership (TCO) of Cisco enterprise customer networks, and contrasted that TCO to “good enough” networks from other networking vendors. Key findings:
1) TCO is a better metric than CapEx to assess network cost because it considers the full impact on IT spend, including CapEx, services, labor, bandwidth and energy.
2) The Cisco Borderless Network Architecture can deliver up to 13% better TCO than a “good enough” network, offering compelling value for the strategic Cisco investment.
3) Even if architectural benefits are discounted in the analysis, Cisco is, at most, a 7% TCO premium over other vendors due to IT labor savings and extended product lifecycles from Cisco solutions.
4) The single biggest benefit of Cisco’s architectural approach is labor savings. Labor constitutes 50% of TCO and Cisco delivers 5% to 10% labor savings driven by unified wired and wireless and embedded security.
5) A quality network delivers business benefits beyond TCO, including improved network uptime, higher user productivity and a lower threat of security breaches.

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