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Cloud NetsFebruary 16, 2022

Episode 8 Network TCO

Did you know how much a cloud-native network can impact your TCO?

Disaggregation of hardware and software, software based cloud-native instances, etc, these all have a dramatic effect on your total cost of ownership. So, when you go to disaggregation, the Network Cloud, you save a lot of money.

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Full Transcript

Hi and welcome back to Cloud Nets, where networks meet cloud.
And today we’re going to talk about TCO – total cost of ownership, and for that we brought our TCO analysis specialist – Run.
Yes. Hi, Run.
Ok, so, TCO and disaggregation, TCO and Network Cloud, we need to understand that the Network Cloud means building the network like you build the cloud infrastructure. Disaggregation of hardware and software, software based cloud native instances, etc, etc.
These all have a dramatic effect on your total cost of ownership.
The fact that you use white boxes, the fact that you can scale services easily, the fact that you can deploy new services in a much faster pace.
Run, what is the short answer?

Three points.

First off, it’s a lower cost hardware.
When you’re getting a white box, the one thing that you’re not paying for is the fact that there is no logo on the box. Hence, why it’s a white box. Exactly. So that’s one thing. The hardware is the same hardware, the same quality of the hardware, but it just costs less.

The second item is about the resource utilization. It’s not just about how much capacity you have, but what you make of it, right? And when you can multiply several applications on top of the same infrastructure, then you better utilize that resource and use it as kind of a pool, just like it’s being done on the cloud. So not only do you use lower cost boxes, you need less boxes.
You need fewer boxes? Correct.

And the third item is about automating your operations. This is exactly what has been done on the cloud. When you have a lot of small problems, applying automation to this is easier than trying to use automation in order to solve one big problem. This is exactly what disaggregation gives you as you build a network.

Ok, so basically, what we’re saying and what you need to remember is that when you go to disaggregation, when you go
to the Network Cloud, you save a lot of money. Your total cost of ownership is much lower because you use white boxes, which are, you know, less costly, then logoed boxes.
You need fewer boxes because you use them more efficiently and your entire operation, your OPEX is reduced because you use automation and you have better flexibility to accommodate what you need into what you have and to better use your infrastructure.
That’s our TCO story for today. Thank you for watching.
Thank you for telling us. See you next time. Bye bye.