I’ve been thinking a lot about TCO recently and ways we can help the Government maximize the investment of our tax dollars. By chance, I ran across this incredible White Paper written by one of our top Optical Engineers entitled “Government Transport Networks: Minimize Lifetime Costs”.
It’s a good read, and if you are a Network Architect making purchasing decisions in this area, I would highly recommend it. In fact, if you have any further questions on any of the data presented please reach out to me directly and I’ll put you in touch with the author.
This paper makes the case that transport networks represent a significant portion of government IT costs and is often overlooked in terms of TCO. It guides the reader through the various Network Deployment Models (private, managed private, hybrid) and the benefits in real dollars by going with one approach over another.
Transport networks affect government operational costs at least as much as campus or data center networks, and carefully selecting the platform can result in significant savings. In summary, a well-planned transport architecture can help agencies avoid the considerable expense of upgrades as they accelerate adoption of business video and virtualization. In contrast, a platform with lower upfront costs may have a shorter lifespan and require IT teams to continually add overlay networks that increase costs and management complexity.
So “caveat emptor” when considering your next network purchase.
You need to consider more than the purchase price when building the network that runs your business
As a small or mid-size business, you need to make your dollars stretch. But when it comes to investing in the network that runs your business, saving money on the purchase price can cost you more over time—at least 20-35 percent over a three-year timeframe. You need to consider the total cost of ownership (TCO) of the equipment you’re purchasing, including implementation, network downtime, and security breaches.
With a tactical network—one that provides simple connectivity—you could end up spending more money on equipment and services to meet the needs of your business. Also, if your network includes devices from multiple vendors, you may spend more time managing and coordinating those vendors and more money troubleshooting problems rather than focusing on running your business. This loss of time and money increases TCO and decreases the value and return on your technology investment.
With this week’s announcement, Cisco continues its innovation and leadership by bringing unmatched architectural flexibility and revolutionary scale to meet diverse requirements of massively scalable data centers, big data environments, cloud-based architectures or bare-metal deployments – with one evolutionary network: Unified Fabric.
To drive the point home, the real economics of networking reveal that for many organizations approximately 70% of network TCO is incurred after the initial equipment purchase. So why is this important?
As Andrew learned the hard way, doing your research before you make an investment pays off, whether you’re buying a car or equipment for your network.
In this episode of Partner Update, we explore total cost of ownership and why it’s the only true way to measure network costs. We also cover storytelling tips and methods learned from esteemed author and presentation expert Nancy Duarte (she created the presentation you see in Al Gore’s An Inconvenient Truth), our October 18 TweetChat with Nancy, our October 20 broadcast covering LinkedIn for B2B, virtualization technology news, Cisco’s own Edison Peres’ travels to speak with partners in South America, LEAP centers to help partners test out data centers, tips for solution providers, and much more. Whew!
Tune in for the latest partner news:
Keep reading for a text summary and list of links mentioned during Partner Update. Read More »
Cisco UCS Servers and Blade Server Evolution, part 1, as the title suggests, discussed blade server evolution and why Cisco UCS is a game changer. Now let’s talk about what the implications are for blade server TCO (Total Cost of Ownership) and how Cisco Unified Computing System scales vs. legacy blade architectures.
Blade Server TCO and Scale
Scale is the crux of the problem that has historically been the barrier for blade servers to deliver on their initial promise. Scale for I/O. Scale for Servers. Scale for Management. Cisco identified these shortfalls in the traditional legacy blade architecture and came to the marketplace with an innovative, game changing redefined architecture – Cisco UCS.
As discussed in “part 1”, to move the bar for blade chassis, we to better consolidate I/O, management and scale. Enter Cisco UCS. Deliver everything at scale: servers and I/O and blade chassis and management etc. Deliver a new design, rather than retreading an old dead end chassis ‘building block’ design.
Efficiency and Scale by Design
The requisite new design is what Cisco delivered. Cisco UCS is a variable chassis count, variable server count, variable I/O capacity, smart scaling architecture.
Figure 1 is the Cisco design, a converged I/O (FCoE – lossless FC and Enet combined) that scales. It provides easy, efficient infrastructure scaling across: multiple chassis, multiple servers, racks, rows and yes, it even includes the integration of rack servers into the solution.
Figure 1: Cisco UCS architecture – 10 x 8 blade chassis = 80 blade servers, 20 cables (add more I/O by simply adding cables – easy scaling)
Figure 2 is a Non-Converged legacy blade chassis I/O architecture. More = more… of everything. More chassis to hold more blades is OK, that makes sense. But more Switches? More cables? More points of Management? More complexity? Not too good.