August 24, 2022

Procurement and Vendors Manager

Make Your Procurement Team Shine with DriveNets Network Cloud

In the past it was discussed how DriveNets can make your CFO happy. Now, I would like to take a look at how DriveNets Network Cloud can add benefits to the Procurement department of service providers.

Make Your Procurement Team Shine with DriveNets Network Cloud

Improve Cost Structure

The cost structure of legacy networks is difficult, to say the least. The legacy chassis-based pricing model for networking routers is based on perpetual licenses for hardware components (including chassis, router processors and capacity-based line cards) while software is sold as perpetual or time-based licenses per port.

One problem of the legacy model is that service providers usually have multiple networks built upon dedicated proprietary hardware typically provided by multiple vendors. Multitudes of different network-specific hardware devices, whose costs grow linearly with growing traffic demand, lead to a poor cost structure. Moreover, these devices cannot share their resources, leading to poor resource utilization. In addition to network routing devices, a typical network architecture includes some non-routing functions (such as firewalls), which require purpose-built hardware appliances.

DriveNets Network Cloud runs and manages networks as a shared resource, leading to significant cost savings through economies-of-scale and higher resource utilization. DriveNets offers multi-services over one shared infrastructure, offering both routing and non-routing network applications over shared devices at lower cost.

Achieve a Robust Supply Chain

The legacy model also encourages vendor lock-in, which can lead to slower technological improvements, more expensive purchasing and upgrades, and higher maintenance fees.

DriveNets Network Cloud uses just two types of basic commercial off-the-shelf (COTS) building blocks that are available from multiple vendors. This frees service providers from vendor lock-in, allowing them to rapidly leverage new technologies, swap components and platforms, and switch vendors. Together this mitigates exposure to supply chain disruptions and enables the adoption of emerging technologies that may be incompatible with incumbent vendors’ proprietary technologies.

Lower Hard Costs

As already mentioned, the legacy model leads to multiple networks built upon dedicated proprietary hardware usually provided by multiple vendors. Since these hardware devices are offered by just a few brand name vendors, they are often offered at a substantial premium.

DriveNets Network Cloud turns networks from hardware-centric to software-centric, leading to simpler standardized hardware across all network services (core, aggregation, edge). This reduces costs due to competition between multiple vendors, and economies of scale across all network services. When multiple network services “collocate” (share the same physical location), they can share the same hardware, leading to less total hardware and greater savings.

Reduce Soft Costs

Traditional legacy networks average some 10-15 different network device models from 2-3 vendors. The resulting hardware inconsistency complicates network planning, operations and maintenance, and increases storage costs due to the multitude of spare parts.

The network standardization and simplification associated with DriveNets Network Cloud lowers fixed and variable operational expenses. Hardware soft costs related to installation, service assurance, total power and network changes drop due to the reduced amount of hardware. Operations teams become more versatile as they no longer need to be allocated to specific networks, vendors or technologies.

On the software side, DriveNets offers modular networking software sold independently of the hardware. service providers pay only for the features they need, either on a time-based, perpetual or subscription license. DriveNets unified software reduces upgrade costs across the entire network.

Bring a Smile to Your Head of Procurement

DriveNets Network Cloud improves network cost structure, breaks vendor lock-in, and lowers CapEx and OpEx. Given these important bottom-line benefits, choosing DriveNets Network Cloud will make your Procurement team look smart – and rightly so – in the eyes of their colleagues across the service provider organization.

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