Public Sector customers continue to debate the trade-offs of prioritizing lowest price switching, point product solutions, over designing and deploying Cisco network architecture solutions which provide a lower Total Cost of Ownership (TCO).
On February 23, 2012, Deloitte Consulting presented the findings of an in-depth research study that examines the operational, financial, and risk factors associated with the use of single-vendor and multivendor approaches in different types of complex networks which may be viewed here along with the report itself.
They key findings are summarized in the following 7 items:
- Within the context of total IT spending, the use of single-vendor or multivendor architectures does not present material cost differences on a long-term basis. Initial cost savings realized in multivendor network implementations are mitigated by the incremental operating costs over the life of the equipment.
- Enterprise networks are considered critical production systems, key to business operations. Networks must be managed with an appropriate operational risk perspective.
- Customers prefer a single vendor to be responsible for all network components and services. The operational risk associated with network support, not the cost, is the primary factor when influencing the decisions to use single or multivendor architectures.
- Staffing costs are not significantly impacted by the use of multiple vendors; it is more influenced by the mix of functions supported and the types of network services provided.
- Using products from different vendors can bring down initial costs for certain products, but adds higher operating risk in service, support, and operational integration.
- The use of multiple networking vendors introduces additional operational risk based on the need for customers to assume increased risks for integration, interoperability and support.
- When using multiple vendors’ products, customers frequently do not recognize the interdependencies of functionality, long-term costs, and impact on operational risks
And be sure to watch Director of Public Sector Systems Engineering, Dave West on youtube present his version of why low-cost, ” Good Enough” Switching is not Good Enough for Public Sector Customers looking for a reliable, secure, highly available, well supported and investment protected network.