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HP’s Trojan Horse

Our neighbors in Palo Alto have been making a lot of noise about the difference in price between Hewlett-Packard and Cisco networking equipment. They’d like customers to believe they can offer similar capabilities to Cisco but at much lower prices—“Cisco for less,” if you will.

Most folks understand that the first part of that claim isn’t true. They’re not Cisco. To start with, when a company spends just 2% of revenues on R&D (as HP does), it isn’t capable of generating the type of innovation that a company spending 13% can (as Cisco does). We explained how Cisco innovation delivers differentiated capabilities when we debunked the myth of the ‘Good Enough’ network.

But some customers still ask me about the price difference—the “for less” part.  After all, everyone is looking to cut costs, right?

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The Myth of Network Acquisition Cost

Did you know that when building an enterprise IT network about 20% of a typical budget is spent acquiring hardware, while a whopping 80% goes toward operating costs?

In this week’s installation of the Myths of the Good-Enough Network series, Mike Rau delves into one of the common mistakes customers make when building an enterprise IT network; simply focusing on acquisition costs.  Mike points out that only looking at acquisition and maintenance costs ignores the increased productivity and the reduction in downtime that next-generation networks can provide. You may have initially saved by choosing the “good-enough” network; however those savings can quickly evaporate with an increase in operating costs.

When purchasing a phone you wouldn’t only consider the out-the-door cost, you would take into account the carrier’s network, services, and technical support when making your decision. Why not do the same with your enterprise IT network?

Sound logical?  Head over to Silicon Angle to read the full article and find out why a tactical “good enough” network can quickly become the more expensive option.

And don’t miss the previous myths:

Seven Myths of the Good Enough Network
Myth #1: Single-Purpose Network
Myth #2: Security as a Bolt-on Myth
Myth #3: Basic QoS Myth
Myth #4: Just Look for Standards
Myth #5: Basic Warranty

Check back next week for our coverage of the final networking myth.

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The Single-Purpose Network: Myth of the Good-Enough Network

Did you know that by 2015, there will be nearly one mobile-connected device for every person on Earth? That will mean 7.2 billion people with 7.1 billion devices, according to the Connected World Report, 2010.

Aside from being an interesting factoid, this statistic underscores the importance of the next-generation network—after all, without a solid, reliable network to support those billions of devices, they would be nothing but useless bits of hardware.

Businesses and IT departments are being asked to provide more and more connectivity options for new mobile devices, but they are also under increasing pressure from limited resources and budgets. A network that is just “good enough” is only going to exacerbate these constraints because it is built to serve the single purpose of connecting users to resources in silos of connectivity whether it be wired, wireless, or VPN.

Last week, Mike Rau, CTP of Cisco’s Borderless Network Architecture, blogged about The Seven Myths of the Good Enough Network. Now it’s time to delver deeper into myth #1: The Single-Purpose Network Myth–as it relates to mobile devices. For the full article on Silicon Angle, click here.

Over the next seven weeks Mike Rau will address each of the seven myths in weekly blogs on Silicon Angle.

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