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The Right Network Can Lower Your Total Cost of Ownership

November 9, 2011 - 0 Comments

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.

A tactical network is only as reliable as its weakest link. A network outage can quickly eliminate any costs savings from the original purchase and result in lost revenue. According to Infonetics Research, companies lose an average of 3.6 percent of revenue per year to downtime. In addition, that downtime can damage your company’s reputation. Although difficult to measure, this can be a significant cost.

Build It Right

The right network—one built with a solutions approach rather than with point products—will reduce networking costs and lower the overall TCO. In addition, a strategic network will minimize outages, be more secure, perform more consistently, and reduce finger-pointing among multiple vendors. All of this reduces your administrative time and improves your employees’ network experience, making them more productive.

A strategic network can help make your business more agile and enable you to take advantage of new technologies, such as desktop virtualization and cloud computing, as well as respond to compliance requirements. A tactical network would require a major network overhaul to benefit from these advancements as your business needs change.

Acquiring a service plan along with a solution can also improve TCO. A support contract can help protect your equipment investment and get your network running again quickly should a problem arise.

Taking a strategic approach to your network makes good business sense. Your network is strategic to your business and TCO should be a factor in any decisions you make. If you’re building or upgrading your network and want to know how to improve TCO, a local Cisco reseller can help.

Read how the right network helped Valley Sleep Center cut costs by 50 percent.

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