About this research note: Selection Advice notes offer clear guidance in effectively managing, optimizing, and expediting the product and service procurement process. vs. : A Comparison of LAN and WAN Infrastructure Publish Date: April, 2010 and are two of the leading network equipment vendors. Info-Tech s five-year comparison of their LAN and WAN infrastructure demonstrates that customers can save as much as 54% by choosing. In addition to these cost savings, their focus on delivering reliability, improving efficiency, and increasing scalability makes a persuasive alternative to buying.. 1998-2008 Info-Tech Research Group
Executive Summary IT spending is more closely scrutinized than ever, and cost has become a very important consideration when selecting an equipment vendor. To help enterprise IT management choose between the leading LAN and WAN infrastructure vendors, Info-Tech has compared the cost of Inc. versus Systems. This research note compares several scenarios, including:» Small, medium, and large high-availability campus LAN configurations.» Small branch, mid-sized regional office, and large regional/head office WAN configurations.» Network performance, energy efficiency, and price discounting considerations. In every case six scenarios in all the cost of infrastructure is lower than, with enterprises saving from 27% to 54% by choosing. Enterprises of all sizes should the evaluate equipment and support costs when making a purchase decision on networking equipment. IT managers should also be cognizant of qualitative factors, such as a vendor s reputation for service and support, and the solution s fit within existing enterprise architecture, to make a well-rounded decision. Selection Advice 2
Selection Point Info-Tech recently compared the CAPEX and ongoing support costs of LAN and WAN infrastructure from leading vendors Systems and. The evaluation examines the following components:» List price (CAPEX) of various products.» Annual support and maintenance contracts (assumes 8x5 technical support and Next Business Day (NBD) advanced hardware replacement for and 24x7xNBD for. This is because does not have an 8x5xNBD support option, and does not have a 24x7xNBD option).» All prices are stated in US dollars. These are the costs that can be compared, and make the most significant difference in a five-year cost comparison. To address the difference in LAN size, and accurately reflect different products used in varying sized implementations, the following scenarios are compared:» A small 250 port LAN without Power over Ethernet (PoE) and with a High-Availability (HA) option used at the network core.» A medium 1750 port LAN with PoE and HA at the network core.» A large 3000 port LAN with PoE, Gigabit-to-the-desktop, and HA at the network core. Similarly, to address different WAN requirements and office sizes, the following scenarios are used:» 15 small branch offices requiring a maximum of 2 T1s for WAN connectivity.» 5 mid-sized branch or regional offices requiring a maximum of 8 T1s for WAN connectivity.» 2 large regional or head offices requiring a maximum of 3 DS3s for WAN connectivity. In all cases, product features and functionality are matched as closely as possible to ensure an applesto-apples comparison. Selection Advice 3
Key Selection Criteria In each of the following six scenarios, a graph shows the cost elements over five years. The list of products can be found below each graph, as well as pricing details. Info-Tech believes this to be as complete and accurate as possible, and all assumptions have been disclosed. Scenario Comparisons Scenario 1: Small 250 User Campus LAN Figure 1. 250 User Campus LAN Cost Comparison Source: Info-Tech Research Group Product Lists Edge 6x Catalyst 2960-48TC-L Edge 6x ERS 2550T Core 2x Catalyst C3750E-24TD-S Core 2x ERS 5530 Selection Advice 4
Pricing Details Total CAPEX $45,960 $27,160 Maintenance & Support $15,700 $8,850 5 Year Cost Comparison $61,660 $36,010 Cost Savings 42% In this scenario, represents a 42% five-year cost savings over. Selection Advice 5
Scenario 2: Mid-Sized 1750 User Campus LAN Figure 2. 1750 User Campus LAN Cost Comparison Source: Info-Tech Research Group Product Lists Edge 37x Catalyst C3560-48PS-S Core 2x Catalyst 4506 Chassis (WS-C4506-E) 2x Catalyst 4500 Power Supply (Data Only PWR-C45-1400AC) 2x Catalyst 4500 Supervisor Module (WS-X45-SUP6-E) 2x Catalyst 48 Port Gb Module (WS- X4448-GB-SFP) Edge 37x ERS 4550T-PWR 10x46cm Resilient Stacking Cable Core 2x 8300 Series 6 Slot Chassis (ERS 8306) 2x 8301 AC Power Supply (DS1405A14) 2x Switch Fabric Module (ERS 8393SF) 2x 48 Port SFP Fiber Module (ERS 8348GB) Selection Advice 6
Pricing Details Total CAPEX $326,275 $223,725 Maintenance & Support $110,420 $49,400 5 Year Cost Comparison $436,695 $273,125 Cost Savings 37% In this scenario, represents a 37% five-year cost savings over. Selection Advice 7
Scenario 3: Large 3000 User Campus LAN Figure 3. 3000 User Campus LAN Cost Comparison Source: Info-Tech Research Group Product Lists Edge 64x Catalyst C3750G-48PS-S 16x1 Meter Stacking Cable (CAB-STACK- 1M) Core 2x Catalyst 6506 6 Slot Chassis (WS-C6506-E) 2x Catalyst 6500 Power Supply (WS- CAC-6000W) Edge 64x ERS 5520-48T-PWR 16x1 Meter Return Cable Core 2x 8600 Series 6 Slot Chassis (ERS 8006) 2x ERS 8000 Routing Switch SW Kit Selection Advice 8
Product Lists (Continued) 2x Catalyst 6500 Supervisor Module (WS-SUP720) 4x Catalyst 48 Port Gb Module (WS- X6548-GE-TX) 2x Power Supply Unit (ERS 8005 PSU) 4x Switch Fabric Module (ERS 8692SF) 4x 48 Port Gb Module (ERS 8630GBR) Pricing Details Total CAPEX $1,118,280 $696,340 Maintenance & Support $401,640 $167,700 5 Year Cost Comparison $1,519,920 $864,040 Cost Savings 43% In this scenario, represents a 43% five-year cost savings over. Selection Advice 9
Scenario 4: 15 Small Branch Office WAN Figure 4. 15 Small Branch Office WAN Cost Comparison Source: Info-Tech Research Group Product Lists 15x ISR G2 2901 (includes 2xT1/E1 WIC - WIC-1DSU-T1-V2 and Advanced Security Bundle - CISCO2901-SEC/K9) 15x SR 1002 (includes 2xT1/E1 Interface and Stateful Firewall) Pricing Details Total CAPEX $73,425 $37,425 Maintenance & Support $26,325 $8,625 Selection Advice 10
Pricing Details (Continued) 5 Year Cost Comparison $99,750 $46,050 Cost Savings 54% In this scenario, represents a 54% five-year cost savings over. Selection Advice 11
Scenario 5: Five Mid-Sized Branch Office WAN Figure 5. Five Mid-Sized Branch Office WAN Cost Comparison Source: Info-Tech Research Group Product Lists 5x ISR G2 2951 (Includes 4x2 Port WICs - VWIC2-2MFT-T1/E1 and Advanced Security Bundle CISCO2951-SEC/K9) 5x SR 3120 (Includes 8 Port T1/E1 Medium Module and Stateful Firewall) Pricing Details Total CAPEX $94,475 $44,475 Maintenance & Support $29,925 $17,250 Selection Advice 12
Pricing Details (Continued) 5 Year Cost Comparison $124,400 $61,725 Cost Savings 50% In this scenario, represents a 50% five-year cost savings over. Selection Advice 13
Scenario 6: Two Large Regional/Head Office WAN Figure 6. Two Large Regional/Head Office WAN Cost Comparison Source: Info-Tech Research Group Product Lists 2x ISR G2 3945 (Includes 3xDS3 NM - NM-1T3/E3 and Advanced Security Bundle - CISCO3945-SEC/K9) 2x SR 4134 (Includes 3xDS3 Medium Interface Module and Stateful Firewall) Selection Advice 14
Pricing Details Total CAPEX $79,790 $58,140 Maintenance & Support $17,350 $13,080 5 Year Cost Comparison $97,140 $71,220 Cost Savings 27% In this scenario, represents a 27% five-year cost savings over. The above scenarios compare the features and functionality of the products as closely as possible; however, there will be some differences in performance even in comparable models. Performance, Energy, and Discounting Considerations With respect to energy efficiency, seems poised to take the lead in greening enterprise networks. In recent testing completed by The Tolly Group (titled Converged Data Network Solutions, published March 2010), it was found that the ERS 8600 saves up to 40% on power consumption cost versus comparable Catalyst 6500s. Energy costs to operate enterprise LAN and WAN infrastructure are a significant component of cost evaluations, as today s energy costs continue to skyrocket. A 40% savings on power consumption goes a long way towards helping to reduce data center operations costs. Purchasing more energy efficient products today will lead to a significant payoff in the coming years. Selection Advice 15
Recommendations Info-Tech consistently recommends that enterprises carefully consider lifetime costs prior to making purchasing decisions. In the case of LAN and WAN infrastructure, focus on the following cost drivers: 1. Up-front CAPEX is the largest cost comparison component. The cost of the equipment is, and will continue to be, the most significant contributor to overall costs. CAPEX typically represents over 80% of the five-year costs when using list pricing, so enterprises should closely scrutinize the up-front cost of the equipment. 2. Maintenance and support is not insignificant. Use caution when selecting vendor support plans. In this analysis, Info-Tech assumed support to be 8x5xNBD for and 24x7xNBD for, but premium support packages such as 24x7x4 On-Site (4 hour on-site hardware replacement) can be over 50% more expensive. 3. Power consumption is becoming a consideration. While LAN and WAN infrastructure does not consume power like servers and HVAC, as the price of energy continues to increase and as more PoE enabled devices are attached to the LAN, power consumption should be considered in purchasing decisions. The efficiency of a solution is an important component of the overall cost of ownership. Bottom Line and are two of the leading network equipment vendors. Info-Tech five-year comparison of their LAN and WAN infrastructure demonstrates that the premium paid for products can be over 100%. In addition to cost-savings, their focus on delivering reliability, improving efficiency, and increasing scalability makes a persuasive alternative to buying. Info-Tech provides IT research and advice to more than 21,000 IT professionals worldwide. Our practical, actionable research is specifically designed to have a clear and direct impact on your organization. Info-Tech's products and services help our clients work faster and more effectively. Our research improves the IT decision-making process, expedites critical IT projects, and helps our clients keep current enabling them to achieve greater personal and corporate success. More About Info-Tech Selection Advice 16