The Financial Benefits of Using LANPlanner and BroadbandPlanner

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1 W H I T E PA P E R The Financial Benefits of Using LANPlanner and BroadbandPlanner Deploying Better Wireless Networks While Reducing Costs

2 Designing wireless networks is far more complex than designing wired networks because of the many environmental factors involved. For outdoor networks, a primary question of vital importance is how buildings, foliage, and terrain will affect wireless signal propagation. For indoor networks, issues include how to ensure that data and voice work in all conference rooms, and how construction materials affect wireless signals. These types of issues are more than a technical concern: System integrators and resellers who handle network design can save substantial amounts of money, and more easily gain new customers and retain existing ones. Motorola offers two key design tools to help system integrators and resellers reap the maximum benefits from designing wireless networks, while minimizing risk: LANPlanner and BroadbandPlanner. The two software tools are part of the One Point Wireless Suite, an innovative set of software solutions that work together to make wireless network design, network deployment, and network management of indoor WLANs and outdoor wireless broadband networks more visual, more complete, and more effective. LANPlanner has proven itself as a valuable tool for us. It helps win bids, lowers our cost and gives both us and our customers greater confidence in deploying a solution that works right the first time. Rick Roach Enterprise Mobility Sales Executive TAKE Supply Chain, A Division of TAKE Solutions, Inc. This white paper details the benefits of LANPlanner and BroadbandPlanner, and provides an in-depth examination of the financial value offered by LANPlanner and BroadbandPlanner for system integrators and resellers. Why Use LANPlanner and BroadbandPlanner LANPlanner and BroadbandPlanner help system integrators and resellers propose, design, and deliver indoor and outdoor wireless network solutions that deliver maximum performance at minimum cost for today s most demanding voice, video, and data applications. This section of the white paper will first discuss the overall benefits of LANPlanner and then of BroadbandPlanner. The next section will include a series of in-depth business cases that present the financial value the software offers to system integrators and resellers. The Benefits of LANPlanner Designing wireless networks sometimes seems more art than science. Because of the complexities involved, it can be difficult to accurately design networks that deliver optimum performance at the right price point. If the initial design doesn t work the way it should, system integrators and resellers face costly maintenance and truck rolls, and unsatisfied customers. LANPlanner helps system integrators and resellers deliver compelling and accurate proposals to customers, and subsequently helps WLAN designers build an optimal network that avoids equipment over-purchase while ensuring optimal performance for voice, video, and data applications. It uses an intuitive 3D interface with multi-floor building coverage visualizations and an advanced RF performance modeling engine to help system integrators and resellers design and 2 W H I T E PA P E R - The Financial Benefits of Using LANPlanner and BroadbandPlanner

3 LANPlanner Throughput Prediction LANPlanner MIMO Performance Modeling install a/b/g/n wireless LANs that deliver maximum performance at minimum cost. LANPlanner can model not only signal strength and interference but also throughput for n MIMO access points. It also shows how a planned network will perform for applications such as web surfing, file downloads, FTP file transfers, videoconferencing, wireless Voice over Internet Protocol (VoIP), or location based triangulation, with specialized application coverage maps that integrate RSSI, AP Coverage Overlap, SINR, Utilization, and Data Rate information into an easy-to-understand good/bad heat-map view. LANPlanner offers these primary benefits for system integrators and resellers: Delivers compelling and accurate proposals to customers. Helps WLAN designers build an optimal network that avoids equipment over-purchase while ensuring optimal performance for voice, video, and data applications. Supports any vendor s infrastructure. Includes a self-learning prediction/optimization engine when combined with survey data. Includes n MIMO prediction technology, the industry s first network migration wizard, and WIPS sensor planning. indoor networks, because typically more hardware and money are involved. BroadbandPlanner helps system integrators and resellers propose, design, deploy, and measure wireless network solutions that include wireless broadband mesh and point-to-multipoint products. BroadbandPlanner s advanced RF modeling engine, integration with Google Earth, and streamlined measurement and verification capability enable system integrators and resellers to propose wireless network solutions with confidence, and deploy them with maximum efficiency. Optimizing network designs is easy with views that show optimal equipment locations, signal strength heatmaps, optimal urban-canyon remote access point locations, and terrain obstruction path profiles. BroadbandPlanner offers these benefits for system integrators and resellers: Helps win project bids by efficiently and easily creating RFP responses that are accurate and optimized. Saves time in deployment by minimizing trial and error caused by inaccurate network designs and by being portable enough to take into the field. Saves time in deployment through integrated Mesh and PMP measurement capability, which allows streamlined network verification as well as RF prediction accuracy fine-tuning. The Benefits of BroadbandPlanner Designing and deploying outdoor broadband networks is even more difficult than designing indoor networks Includes Google Earth-based network coverage visualizations. because of the more complex environmental factors involved. The stakes for system integrators and Includes integrated Mesh and PMP network mearesellers for outdoor networks are higher than for surements and offers improved design accuracy. 3 W H I T E P A P E R - The Financial Benefits of Using LANPlanner and BroadbandPlanner

4 BroadbandPlanner Point-to-Multipoint and Mesh Network in Google Earth BroadbandPlanner Mesh Coverage in Google Earth LANPlanner and BroadbandPlanner Offer Significant Return on Investment Motorola collaborated with an independent research organization that specializes in return on investment (ROI) and cost-benefit analysis to perform an objective study of the financial returns generated by the use of LANPlanner and BroadbandPlanner by system integrators and resellers. A detailed business analysis of the benefits reveals the following highlights, based on a three-year study period: By using LANPlanner for designing indoor wireless networks, a system integrator or reseller will gain a cumulative, projected three-year net benefit of $73,300, driven by reduced labor and troubleshooting costs, avoiding the purchase of unnecessary hardware and software, and increased revenue. The system integrator or reseller will see a three-year ROI of 482%, with a payback period of seven months. By using BroadbandPlanner to design integrated outdoor wireless mesh and point-to-multipoint networks, a system integrator or reseller will gain a cumulative, projected three-year net benefit of $101,400, driven by bid preparation savings, reduced labor and troubleshooting costs, avoiding the purchase of unnecessary hardware, and increased revenue. The system integrator or reseller will see a three-year ROI of 412%, with a payback period of five months. The Business Case for LANPlanner This scenario examines the use of LANPlanner by a system integrator or reseller for designing, installing, and maintaining indoor wireless networks over a three-year period. It is based on the installation of typical wireless networks of approximately 50,000 square feet for a wide variety of purposes, such as for traditional office and warehouse use, as well as for more demanding uses, such as streaming media and VoIP applications. The more complex and demanding the application, the greater the benefits of LANPlanner, so the ROI benefits as outlined in this scenario may be greater if many complex installations are performed, especially those involving n, which is harder to estimate without an advanced predictive tool. System integrators and resellers need an advanced prediction engine to answer a variety of key questions during the design stage, such as: How much equipment do we need, and where should it be mounted to ensure full coverage? How do we make sure the network works in elevators? Will we be able to get a signal down that 300-ft. corridor? How do we ensure data and voice work in every conference room? How will construction materials affect the signals? Knowing answers to questions such as these has significant financial impact for system integrators and resellers. If they overbuy equipment, they will have wasted money unnecessarily. If the network design is not adequate, they will be required to spend extra time and money troubleshooting the network and its applications, and potentially performing partial re-installations. In addition, system integrators and resellers need a tool that will accurately predict the precise network configuration that delivers maximum performance at minimum cost, because doing so leads to more accurate bids at the lowest cost possible and as a result, wins more contracts. 4 W H I T E P A P E R - The Financial Benefits of Using LANPlanner and BroadbandPlanner

5 The Bottom Line for Using LANPlanner By using LANPlanner instead of a competing solution, a system integrator or reseller will gain a cumulative, projected three-year net benefit of $73,300, driven by reduced labor and troubleshooting costs, avoiding the purchase of unnecessary hardware and software, and increased revenue because the integrator will be able to win an increased number of contracts. The system integrator or reseller will see a threeyear ROI of 482%, with a payback period of seven months. Because LANPlanner recommends placement and density of equipment for optimal performance, and provides site survey tools for network validation and troubleshooting, networks can be designed properly with as few issues as possible. This means that the system integrator or reseller will spend less money on reinstalling equipment, and troubleshooting (including truck rolls) per project. As a result, the integrator will see a projected three-year reduction of $69,000 in labor and maintenance costs from the use of LANPlanner. Using LANPlanner, the system integrator or reseller can design networks that deliver maximum performance at minimum cost. By delivering low-cost bids that deliver optimal performance, the integrator will be able to win additional contracts. In addition, because of the superior network design that requires less troubleshooting after installation, the system integrator or reseller will improve customer loyalty, resulting in additional work from existing customers. Overall, a system integrator or reseller can expect to see a projected, cumulative $14,400 in additional profit over three years by using LANPlanner. LANPlanner is a fully featured design-and-survey tool, with a comprehensive set of capabilities. System integrators or resellers that use it will no longer require other tools, saving recurring maintenance fees of $2,400 over three years. In addition, LANPlanner accurately projects the right amount of hardware needed per installation, and eliminates remedial or make-it-right purchases that the integrator or reseller would bear rather than the customer. This will lead to a projected, cumulative $2,700 hardware avoidance over three years. The following charts provide in-depth financial details. Project Summary ROI 482% Payback Period (in months) 7 Cumulative Net Value $73,300 Net Present Value $59,449 Project Costs Year 1 Year 2 Year 3 Total Annual Costs for LANPlanner $10,000 $2,600 $2,600 $15,200 Total Project Costs $10,000 $2,600 $2,600 $15,200 Benefits Year 1 Year 2 Year 3 Total Software Maintenance $800 $800 $800 $2,400 Labor Cost $10,000 $23,500 $35,500 $69,000 Equipment Purchase $900 $900 $900 $2,700 Incremental Profit $4,800 $4,800 $4,800 $14,400 Total Benefits $16,500 $30,000 $42,000 $88,500 Financial Analysis Year 1 Year 2 Year 3 Net Value $6,500 $27,400 $39,400 Cumulative Net Value $6,500 $33,900 $73,300 Note: This business case assumes that a system integrator or reseller performs 15 indoor wireless installations a year, and that LANPlanner reduces labor and troubleshooting costs in 20% of them, and reduces the purchase of unnecessary equipment in 10% of them. System integrators and resellers that perform more projects will see greater benefits. $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 CUMULATIVE NET BENEFIT Year 1 Year 2 Year 3 3-YEAR CUMULATIVE NET BENEFIT = $73,300 Labor Cost 78% $12 $10 $8 $6 $4 $2 Incremental Profit 16% Equipment Purchase 3% Software 3% 5 W H I T E PA P E R - The Financial Benefits of Using LANPlanner and BroadbandPlanner

6 DELIVERING VALUE AND AGILITY The One Point Wireless Suite leverages Motorola s deep wireless expertise in helping customers design better networks, deploy them faster and more cost-effectively, and comprehensively manage them for maximum availability and security. The One Point Wireless Suite helps ensure that you capture maximum value and flexibility from your Motorola wireless network. Trust Motorola solutions to give you wireless agility through networks that are more reliable, more secure and more cost effective than their legacy wired counterparts. The Business Case for BroadbandPlanner This scenario examines the use of BroadbandPlanner by a system integrator or reseller when proposing, designing, installing, and maintaining outdoor wireless networks. It is based on typical outdoor wireless installations with approximately 50 mesh devices, and that include wireless broadband mesh and pointto-multipoint products. These types of outdoor networks are extremely complex and costly, with more environmental factors affecting performance than with indoor networks. System integrators and resellers need an advanced prediction engine to help with designing an integrated outdoor wireless mesh and point-to-multipoint network that delivers superior coverage, ample capacity, and high performance. The networks must deliver the specified quality of service (QoS) quickly and cost-effectively. When designing these types of networks, system integrators and resellers need a tool to help with: Seeing how buildings, foliage, and terrain affect wireless signal propagation. Determining optimal equipment locations. Finding optimal urban-canyon remote access point locations. Displaying signal strength heatmaps and terrain obstruction path profiles. Using a tool to solve these kinds of issues has a significant financial impact on system integrators and resellers. For outdoor networks, proposal costs can be significant if map data must be purchased. Tools that can yield high-quality predictions and compelling visualizations with free map data save money. As with indoor wireless networks, if system integrators and resellers overbuy equipment, they will have wasted money unnecessarily. Also as with indoor networks, if the network design is not adequate, they will be required to spend extra time and money troubleshooting the network and its applications, and potentially performing partial re-installations. This is a more costly proposition for outdoor networks than for indoor networks. System integrators and resellers also need a tool that will accurately predict the most cost-effective network configuration because doing so will lead to more accurate bids at the lowest cost possible and as a result, will win more contracts. Because outdoor networks typically cost more than indoor networks, each additional win has significant revenue implications. The Bottom Line for Using BroadbandPlanner By using BroadbandPlanner, a system integrator or reseller will gain a cumulative, projected three-year net benefit of $101,400, driven by bid preparation savings, reduced labor and troubleshooting costs, avoiding the purchase of unnecessary hardware, and increased revenue because the integrator will be able to win an increased number of contracts. The system integrator or reseller will see a three-year ROI of 412%, with a payback period of five months. The use of BroadbandPlanner yields high-quality results with free map data, so system integrators and resellers need not buy map information for proposals. BroadbandPlanner also saves significant amounts of time during the development phase. All this allows systems integrators and resellers to prepare bids at less cost than previously, by approximately $1,500 less per large bid, and $500 less per small bid. As a result, BroadbandPlanner reduces costs for system integrators and resellers for bid preparation by a projected, cumulative $18,000 over three years. BroadbandPlanner minimizes trial and error caused by inaccurate network designs. It provides exceptional accuracy that can significantly reduce the high cost of unnecessary and unproductive truck rolls and other remedial labor costs. This helps a system integrator or reseller spend less money on reinstalling equipment and on troubleshooting. As a result, a system integrator or reseller will see a projected three-year reduction of $60,000 in labor costs. Using BroadbandPlanner, system integrators and resellers can design the most cost-effective outdoor network. Through BroadbandPlanner s native user interface as well as its rich Google Earth export capabilities, designers are able to see the network, including AP and SM mounting points and link paths, superimposed on the actual terrain in which the network is to be deployed. BroadbandPlanner has a variety of reporting options that enable professional presentation of the software s output. For example, the designer can export design and measurement files and visualize them in Google Earth. This capability replaces static screen shots with dynamic viewing of information on a map of the area and enables easy information sharing about initial design and the signal level being delivered by the proposed network. By delivering low-cost bids that offer optimal performance, the integrator can win additional contracts. In addition, because of the superior network design 6 W H I T E PA P E R - The Financial Benefits of Using LANPlanner and BroadbandPlanner

7 that requires less troubleshooting after installation, the system integrator or reseller will improve customer loyalty, which will result in additional work from existing customers. Overall, a system integrator or reseller can expect to see a projected, cumulative $36,000 in additional profit over three years by winning an additional contract per year. In addition, BroadbandPlanner accurately projects the right amount of hardware needed per installation, and eliminates remedial or make-it-right purchases that the integrator or reseller would bear rather than the customer. This will lead to a projected, cumulative $12,000 in hardware avoidance over three years. The following charts provide in-depth financial details. Project Summary $80,000 ROI 412% $70,000 Payback Period (in months) 5 Cumulative Net Value $60,000 $101,400 CUMULATIVE NET BENEFIT Net Present Value $84,475 $50,000 Project Costs Year 1 Year 2 Year 3 Total $40,000 Annual Costs for BroadbandPlanner $18,000 $3,300 $3,300 $24,600 Total Project Costs $30,000 $18,000 $3,300 $3,300 $24,600 Benefits Year 1 Year 2 Year 3 Total $20,000 Bid Prep Cost Savings $6,000 $6,000 $6,000 $18,000 Labor Savings $10,000 $20,000 $20,000 $20,000 $60,000 Equipment Purchase $4,000 $0 $4,000 $4,000 $12,000 Incremental Profit $12,000 Year $12,000 1 Year 2 $12,000 Year 3 $36,000 Total Benefits $42,000 $42,000 $42,000 $126,000 Financial Analysis Year 13-YEAR CUMULATIVE Year 2 NET Year BENEFIT 3 = $73,300 Net Value $24,000 $38,700 $38,700 Cumulative Net Value $24,000 $62,700 $101,400 Note: This business case assumes that a system integrator or reseller uses BroadbandPlanner to prepare bids for two large projects and six small projects per year, and that Labor it uses Cost BroadbandPlanner on two projects per year. System integrators and resellers that perform more projects or prepare more bids will see greater benefits. 78% Incremental Profit 16% $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 CUMULATIVE NET BENEFIT Year 1 Year 2 Year 3 3-YEAR CUMULATIVE NET BENEFIT = $101,400 Incremental Profit 29% Labor Savings 48% LANPlanner Equipment Purchase 3% Software 3% BroadbandPlanner Equipment Purchase 9% Bid Prep Cost Savings 14% $73,300 Net 3 Yr Benefit $101,400 Net 3 Yr Benefit 482% ROI 412% ROI 7 Month Payback 5 Month Payback 7 W H I T E PA P E R - The Financial Benefits of Using LANPlanner and BroadbandPlanner

8 Conclusion LANPlanner and BroadbandPlanner help system integrators and resellers propose, design, and deliver indoor and outdoor wireless network solutions that deliver maximum performance at minimum cost for today s most demanding voice, video, and data applications. They offer significant financial benefits as well. A detailed business analysis of the benefits offered reveals the following highlights, based on a threeyear study period: By using LANPlanner for designing indoor wireless networks, a system integrator or reseller will gain a cumulative, projected three-year net benefit of $73,300, driven by reduced labor and troubleshooting costs, avoiding the purchase of unnecessary hardware and software, and increased revenue. The system integrator or reseller will see a threeyear ROI of 482%, with a payback period of seven months. By using BroadbandPlanner to design integrated outdoor wireless mesh and point-to-multipoint networks, a system integrator or reseller will gain a cumulative, projected three-year net benefit of $101,400, driven by bid preparation savings, reduced labor and troubleshooting costs, avoiding the purchase of unnecessary hardware, and increased revenue. The system integrator or reseller will see a three-year ROI of 412%, with a payback period of five months. Motorola delivers seamless connectivity that puts real-time information in the hands of users, giving customers the agility they need to grow their business or better protect and serve the public. Working seamlessly together with its world-class devices, Motorola s unrivaled wireless network solutions include indoor WLAN, outdoor Wireless Mesh, Point-to-Multipoint, Point-to-Point networks and voice over WLAN solutions. Combined with powerful software for wireless network design, security, management and troubleshooting, Motorola s solutions deliver trusted networking and anywhere access to organizations across the globe. Motorola, Inc E. Algonquin Road, Schaumburg, Illinois U.S.A. MOTOROLA and the stylized M Logo are registered in the U.S. Patent and Trademark Office. All other products or service names are the property of their registered owners. Motorola, Inc. 2010

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