Cloud Nets VideosJuly 5, 2023

Season 3 Ep 7: Total Cost of Ownership

How do we measure Total Cost of Ownership (TCO)?

While service providers often look at TCO in terms of 3-4 years, we’ll talk about TCO in longer terms, like 8-10 years.

Listen on your favorite podcast platform

Listen on Apple Podcasts
Listen on Spotify

Full Transcript

Welcome to CloudNets.
Today we have a special episode and I’m taking Dudy’s part today because I’m doing the hosting and and the reason is we have a real expert from the real world who is coming in to bring his own experience.
Topic of the day is how do we measure TCO – Total Cost of Ownership?
For this, we have Juan coming in from Spain.
Juan, give us your perspective on this.
Okay, thank you very much, Run.
So, talking about TCO, we know that service providers normally consider short term TCO is three, four years.
I want to talk longer terms, right?
Let’s talk about spans of eight to ten years.
So how can we provide benefits for service operators in that span?
First thing is the cluster can scale unlimited from 2.4 Teras to hundreds of Teras.
What does it mean?
All the investment that you are doing is protected, right?

You don’t need to change any of the pieces, you just keep adding boxes and all the investment that you did in the past, you don’t need to throw it away.
That’s 1
Second point.
Our cluster is distributed.
We support different pieces from multiple vendors, which means that we have more flexible end of life policies. Right?
If some of the components go end of life, you only need to replace that component and you can choose from a variety of providers to do that.
So that means that the investment can be postponed.
You only need to focus on the specific part of the cluster that has gone end of life.
And the third topic, because we are disaggregated, there is a decoupling between the hardware and software.
The lifespan is different, right?
So you don’t need to tackle software investments when you need to change the hardware.
So that also means that you can postpone that software investment and leave it for when it’s really needed.
Really nice.
Okay, let me see if I got it straight.
One thing is that the cluster will last longer in the network because it can scale, I wouldn’t say indefinitely, but really to large, very large sizes.

Second is that our mechanism is of a distributed cluster as part of the DDC.
Every component can be upgraded or replaced as a standalone, completely independent from the rest of the component.
And third, another aspect of independence where the software, once you upgrade it, has no impact on the hardware and vice versa.
So in fact, we have distributed disaggregated and the fact that we are a chassis.
So that all boils down to DDC.
And the bottom line is that it lasts longer.
It lasts longer.
And there are additional benefits when you consider TCOs in the longer term.
In the longer term.
Thank you very much, Juan.
Been a pleasure everybody.
Thank you, Juan.
Thank you.
Bye bye.