Skip to main content

Reduce your Network TCO

If someone tells you that you can reduce your Network cost of ownership by picking up the cheapest product in the market, they are actually advising you to be counterproductive. Networks have to conform to reliability, cost effectiveness, value driven integration and most important of all - longevity of relevance of the solution.
The economic downturn has done us another big favor; apart from bringing in austerity into our organizational behavior it has also made a significant change in our organizational purchasing behavior across the region.
From a premise where, the initial cost of a hardware would determine the purchasing decisionand every other cost including maintenance being rendered as incidental; we have now moved on to a model where the decisions are not only based on the initial cost but also on additions, upgrades, maintenance and management.
The Total Cost of owning a technology today consists of the costs, both direct and indirect, incurred throughout the life cycle of an asset, including acquisition, deployment, operation, support and retirement.
So what are your direct costs when you acquire an asset for your network?
1.      1. Hardware and software: Typically involves the initial purchase price. The cost of associated hardware (network equipment, option modules, spare systems, spare parts, and the annual costs of needed supplies and materials). Include warranties, firmware upgrades, software upgrades, and maintenance contracts. These costs can be divided by the expected life of the asset, in years, to get an annualized figure.
2.       2.Operations:  Resource costs for technical operations, support, and help desk. Service and maintenance contracts, personnel such as network administrators or software maintenance staff. Operations costs also typically include the facilities costs for the appropriate share of the floor space used, as well as furniture, capital assets purchased for the project.
3.       3.Administration:  IT planning costs ,training costs of IT Department and users
And what are your Indirect costs?
1.     1.  End user operations:  Ongoing end user support within the organization.
2.      2.  Downtime:  When end users are interrupted from their regular work due to equipment malfunction or network issues. Regular maintenance can also cause downtime.

How does an organization work with the above factors and ensure an effective strategy of reducing the total cost of ownership.

1         Select an appropriate vendor:  Ensuring that your vendor has the capability to cater to your organizational needs can deeply impact your bottom line in a positive manner. Value added vendors with a sound long term business model will always go an extra mile to support, upgrade and maintain your network at minimal and low cost.

2         Keep a track of innovation in the market place:  Find reliable and feature rich, value driven solutions hitting the marketplace and embrace these to ensure low upfront costs and a lower TCO. Try the Cloud. It slashes your capex and makes indirect costs of ownership extremely low.

3         Want to save serious Dollars? Focus on Firmware updates and maintenance contracts. Some network equipment manufacturers require you to pay for firmware updates as a part of your maintenance contract. Look for vendors who do not require you to pay for this or negotiate with your vendor or reseller to absorb this cost. Depending upon the number of hardware devices that you have purchased, this could be a huge saving.

4         Scrutinize your Warranty contracts: Negotiate and renegotiate for longer period of warranty coverage.

5         Choose to work with System Integrators that carry skill sets to understand and execute projects in varied and competing technologies. Resellers, system integrators and vendors with a value added focus will always provide alternative solutions to your network requirements.  A technology neutral implementation partner, with no agenda in selling only one particular technology, will always give you the most competitive and suitable options. Most of such multi-technology system integration companies will also stock spares for you. Explore local stocking options with your System Integration/ Reseller.

6         Assess your organizational requirements carefully and don’t buy complex, high end products if your requirement can be met by a lower configuration. Be sure to assess your organizational plan on growth and ensure that the growth perceived can be met by what you are buying

7         Network Architecture: Plan your network with careful consideration. A simple network will grow in complexity quickly when the organization grows. Each new device added , you will require backups, spares, maintenance contracts, upgrades, integration and more rack space.

8         Integrate: Many leading network equipment manufacturers have begun integrating the functionality of multiple pieces of network equipment into one device. Go for these products. If your the network has four devices for LAN/WAN connectivity: DSU/CSU, router, firewall, and switch. Reevaluate.  Many vendors now include firewall and VPN functionality in routers, thus eliminating one device from the network architecture and bringing down your cost of ownership substantially directly as well as indirectly. Fewer devices do not mean single point of failure. In fully integrated networks, a single point of failure is desirable rather than multiple points.

9         Human Resources: Your next big cost. Trained technology resources are expensive. What’s more, regulatory and immigration laws in most countries in our region sometimes make it difficult for us to attract the most competent resources and retain them. In short, cost of hiring and retaining highly skilled and trained resources are high. Experiment with skill sharing with your vendor or  system integrator on SLA basis. Outsourcing these skill sets from technology outsourcing companies further reduces the cost of human resources as there are savings in recruitment, training and retention costs to your organization.

10     Contract Managed Services Providers to support your network. Incident based billing and proactive monitoring of your network is the biggest cost saving remedy of your support and maintenance costs. 

Popular posts from this blog

The Clock is Ticking : BACKWARD FOR WOMEN

Sometimes it is just a customary sound; but a movement that takes us backward; instead of steering us forward.

2017 and 2018 have been the most regressive years in the progress of women. 

Since Trump became the President of the United States of America, a new culture of suppression of women rights has unleashed worldwide.  He has slowly degraded Women Rights by attacking fair pay legislation, defunding reproductive rights and changing the definition of violence against women. His attitude towards women is evident from the way he treats women and his objectification of the whole gender. In response, the women rights movement has revived itself, only to become negative and vicious.

No one wins when we have to fight. It is still a pity that we have to wave flags, march, hoist posters and commemorate each other on this day every year. We should not have to. 

The global economy could be enriched by about $160tn (£120tn) if women earned as much as men. 

No Zaghari-Ratcliffe should have to be in …

How should you deal with Bullies ?

It could be someone you know or someone you barely know. Bullying is the act of directing aggressive, intimidating, or threatening behaviors that are directed at an individual with the intent to cause physical or emotional harm.

Bullying can take on a variety of forms and can be in-person or through the use of electronics and technology, called cyberbullying. While this list isn’t exhaustive, you may be a victim of bullying and/or cyberbullying if someone: Subjects you to verbal taunts aimed to embarrass or humiliate youManipulates you into giving up possessions or money for fear of harm or embarrassmentPushes, shoves, kicks, or otherwise physically harms youSends and/or forwards to others any insulting emails, texts, videos, photos, or social media posts that are derogatory or untrueImpersonates you on social media to embarrass you or share your private informationUses electronic messages (texts, Facebook posts, etc.) with angry or threatening languageWhat can you do?
Bullies are weak p…

Avaya is out of its Chapter 11 Bankruptcy . I remember our first Avaya Project

Those were the days! Being one the largest resellers and specialists for Avaya Customer Interaction Centers and then their Distributors was just another story.

I was going over my old archives and came across the first time we won the Project of the Year Award for delivering the most impossible software and hardware integration of a customer interaction center in 90 crazy days and nights in Doha. I don't think the team slept for more than a year. We wouldn't go back home for days and live in fear of downtime ad infinitum, ad nauseum. The cost per minute of downtime was $60,000.

There were no weekends, there were no vacations. All we knew was to deliver this most important opportunity of our lifetime.

When we did get the time; we would get into monopoly warzones in the employee housing to keep sanity or watch pirated dvds of Prison Break and nonstop  Keifer Sutherland's 24.

It was just a never-ending spiral to build a company, to work so hard to beat a market that had never…