In the last episode of our myth-busting series, Cisco SDN expert Frank D’Agostino and I are debunking the myth of the bargain priced white-box switch. White boxes aren’t a new subject in the market, but customers are just now starting to evaluate them for return on investment. So, where to start? When considering a white-box deployment, it is crucial to do all of the math. You must consider both the capital costs and the ongoing operational costs of this type of solution.
Two independent reports show that the up-front cost savings of a white-box switch are marginal as compared to those of traditional vendors. Deutsche Bank published “Whitebox Switches are Not Exactly a Bargain” in 2013, while Forrester Research recently released a study titled, “The Myth of White-Box Network Switches,” (February 20, 2015).
While the cost of a white-box and traditional switch are fairly similar from a capital expenditure point of view, Cisco analysis shows that white-box switches are more expensive when you include operational expenditures, such as the integration of third party software, tools and support costs. In fact, these real-life deployment factors can result in a total cost of ownership for Cisco that is approximately 20-30 percent less expensive than the full deployment of white-box switches.
Bottom line: White-box switches have hidden costs that make them more expensive than traditional switches when fully deployed. When you add up the cost of hardware, third-party software, integration and support, they are clearly no bargain. Check out our video conversation for more on this topic.