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 Read More »
At IBC 2012, Nick Thexton, CTO of Cisco’s Service Provider Video Technology Group, shares some his thoughts on the synergies taking place within his new organization and offers a glimpse into the future of television.
Unless you are careful upfront and during implementation, multivendor solutions rarely provide worry-free ways for a service provider to meet customer needs. But done right, our close partnerships have simplified cloud deployment and support for our customers, and help ensure end-to-end visibility. Building off of a successful relationship, Cisco and EMC recently set a standard for such partnerships with their announcement of a “Three Paths to the Cloud” strategy.
The strategy benefits providers and customers alike by reducing complexity and enabling the leading time to market and lowest total cost of ownership for converged cloud infrastructure. The “Three Paths to the Cloud” are based on: Read More »
Cisco IBSG’s recent interviews with about 45 enterprise CIOs and architects clearly revealed that enterprises have a preference for private cloud. They want to maintain control over their IT, especially where the architecture is new and skills need to be built. In addition, they are not comfortable with accepting externally provided cloud solutions (although there are certainly exceptions).
At the same time, the survey indicated that once enterprises have gained private-cloud experience, they are more willing to allocate this architecture to an external provider.
This is reminiscent of the classic outsourcing cycle, where corporate functions are moved externally once they have become a commodity.