Category: Total Cost of Ownership

Disaggregating the Appliance Model

In carrier networks, the appliance model is giving way to a disaggregated model. Traditionally, functions like routing were implemented in a tightly coupled hardware and software bundle. Routing vendors could ensure the proper operation of their system because they controlled the entire network element. They even developed their own switching ASICs for their line cards.

TCO: Service Velocity and Agility

In our recent blog posts, we have looked at different aspects of Total Cost of Ownership (TCO). CapEx spending gets the headlines and for good reason. Flattening revenues driven by lower revenue per bit coupled with explosive growth in bandwidth demands have made it difficult for carriers to achieve the industry’s standard goal of 15%–20%

TCO: Capital Intensity

In our last post, we discussed how service provider revenues are massive but have settled into a low growth rate of around 1 % per year. How does this affect CapEx? Network operators can drive new sources of revenue because they invest in their networks. Service provider CapEx is a source of intense interest because

The State of Carrier Revenues

By any measure, the telecommunications industry is huge. According to GSMA Intelligence, total mobile revenues reached $1.05 trillion in 2017 and will break $1.1 trillion in 2020.  That summarizes the problem; while the absolute numbers are big the growth rate is small.  In fact, the growth rate for mobile revenues is forecast to drop to

TCO in the New Service Edge

Total Cost of Ownership (TCO) is a familiar concept – it recognizes that the acquisition cost is only part of the cost story.  Think about a car.  You have the purchase price (or the lease).  In addition, there are the costs incurred over the life of the vehicle such as fuel, maintenance, insurance and licensing.