What is Total Cost of Ownership (TCO)? We at Cisco have emphasized this when possible (see: Why TCO is the Only True Way to Measure Network Costs) but this concept isn’t always well understood. Let me give you an example: I have two dogs and when asked, I tell people these are the last dogs I’ll have. The reason for this is simple, dogs are expensive! Typically, “how much is the doggy in the window?” doesn’t even begin to cover the complete costs once you bring Spot home. You need to buy a dog bed, a dog collar, toys, bones, and of course the daily pile of food they eat. Let’s add to that veterinary bills, which are only annual if you are lucky, and then the wear and tear on your home. That last one is a doozy. I have watched three couches take a beating, carpets ruined, stuffed animals gutted, scratched doors happen – well, you get the picture. So, ball parking it, my “free” dogs from the local rescue have a TCO of at least $2,000 a year with a potential lifetime cost of $20-30k! Who am I kidding, they are worth every penny…
While that’s easy to understand, the TCO of a network isn’t always an intuitive thing and can certainly be a difficult thing to calculate. Cisco recognizes this but at the same time realizes that TCO is one area in which we can provide a real advantage through our product design, implementation, and unique solutions. Therefore, it’s critical we have ways of demonstrating our TCO advantage to customers. And now we do. We have developed a new tool that is ground breaking in how simply it can model a Carrier Ethernet network, including all the costs that go into making that network operational and the revenues it can bring to the operator. This tool is called the Unified Carrier Ethernet and Mobile Backhual tool (UCE&MB – pronounced You-Seem). For a quick intro, take a look at the below video:
We have been using this tool to work with our customers, on an individual basis, to provide a customized analysis on the TCO of their network and the revenue it generates. This sort of modeling could take months or longer to produce, but in just minutes the UCE&MB tool allows you to put together a customized TCO report, which can be extremely valuable to customers looking at the long term cost and value of their network.
We are giving a tutorial and demonstration of this tool at the Carrier Ethernet World Congress in Barcelona for our customers and partners. We encourage our customers to attend in person, if possible, but if you aren’t lucky enough to attend, customers can reach out to their account team or contact Cisco at (firstname.lastname@example.org) for more information.