Concord, Massachusetts – (The Hosting News) – January 25, 2007 – Deploying Cisco CRS-1 in the network core to replace traditional routers, reaches payback in less than three years and achieves a 45% Internal Rate of Return (IRR), according to a new study by Network Strategy Partners (NSP).
The Business Case for Deploying Cisco CRS-1 at the Network Core study, also indicated that reduced Total Cost of Ownership (TCO) due to the superior scaling properties of the Cisco CRS-1 as compared to traditional routers more than offsets the transition costs associated with replacing the existing routers.
Michael Kennedy, Managing Partner of NSP and author of the study remarked, “Service providers are reluctant to go to a new network product because changing Operational Support Systems (OSS), construction of a testing facility, training expenses, and the cost to replace existing capacity can be substantial. The Cisco CRS-1, however, more than offsets these costs by lowering CAPEX across a very wide range of possible growth scenarios.”
The study models traffic requirements across a large IP/MPLS Core network and then estimates associated CAPEX and OPEX. Financial metrics include cash flow, NPV, ROI, and Payback. Study Highlights * TCO savings offset transition costs in less than three years and produce an IRR of 45% over a five year study period. * OC-768c/STM-256c IP interfaces dramatically reduce backbone transport costs and yields consistently positive cash flow. * Cisco IOS XR Software delivers higher network availability than routers with traditional software. This reduces TCO, exposure to SLA credit risks, and improves customer uptake for advanced IP services including voice and video.
Network Strategy Partners, LLC (NSP) — management consultants to the networking industry – endeavor to help equipment vendors, service providers, and enterprises around the globe make strategic decisions, mitigate risk and affect change through custom consulting engagements. NSP’s consulting includes business case and ROI analysis, go-to-market strategies, development of new service offers, pricing and bundling as well as infrastructure consulting. NSP’s consultants are respected thought-leaders in the networking industry and influence its direction though confidential engagements for industry leaders and through public appearances, whitepapers, and trade magazine articles.
To learn more, please visit: www.nspllc.com.