Jeff ZanardiSeptember 2015
Take Back Control:“Reduce Networking/Infrastructure Cost With Multi-Vendor Equipment and Support Strategies”
Introduction
© Curvature LLC
I’m not going to try and sell you anything today.
My purpose is to share insights with you based on independent research from Gartner, and others.The insights focus on strategic choices within IT:
– Hardware refresh cycles (CAPEX spend)
– Maintenance strategies (OPEX spend)
It’s A Complex World
Does this look like you? OEM’s and VAR’s pounding at your door?
This “Transformational IT”… who is going to pay for it?
© Curvature LLC
© Curvature LLC
80
20
65
35
Bi-modal ITShifting budget from Stability to Innovation
Requires a more informed design and support model to achieve balance
Transformation is Imperative
© Curvature LLC
Insights
• OEM’s depend on continuous CapEx expenditures (every 3-5 years)– Escalating maintenance costs– End Of Support
• OEM’s force upgrades!
• 3-5 year upgrade cycle is arbitrary (and wrong)
• Software is not nearly as big a concern as the OEM’s would have you believe
LETS LOOK AT CISCO AND EMC
-80 % DON’T KNOW ALTERNATIVES TO OEM SUPPORT
Nick Lippis in The Lippis Report 203 expects Cisco 6509 could and should be in service in 2025...
- 79 % REFRESH 3-5 YRS
- 85 % WOULD KEEP LEGACY EQUIPMENT
THE 5 YEAR MYTH
- USEFUL LIFE - 7 TO 10 YRS
Cisco
-50% OF THE NETWORK DOESN’T NEED OEM SUPPORT CONTRACT FOR UPDATES-EVEN WHEN AVAILABLE, UPDATES ARE INFREQUENTLY APPLIED-SOFTWARE IS AVAILABLE A LA CARTE
THE SOFTWARE UPDATES MYTH
Cisco
3-5 yrs (avg)
Cost
Time Last date ofSupportEnd
of Sale
End of SW Rel.
IOS UpdateTAC/Software SupportHardware Replace
OEM Support contract (OpEx)
Hardware/Tech Refresh Purchase(CapEx)
© Curvature LLC
CISCO
Hardware/Tech Refresh Purchase(CapEx)
3-5 yrs (avg)
Cost
Time Last date ofSupportEnd
of Sale
End of SW Rel.
IOS UpdateTAC/Software SupportHardware Replace
OEM Support contract (OpEx)
-Don’t throw away what is working-Use third party maintenance support
Insights
-Don’t pay for free SW-Don’t pay for N/A SW-Prioritize your IT investments
CurvatureSuppo
rtEquipme
ntLower Cost
WasteDouble
PayWaste
NA
Forced
© Curvature LLC
Imagine lowering cost and
saving every refresh cycle
……
Savings
EMC
©2015 Curvature LLC
Upgr
ade
Expe
cted
Year 4
No more support available.
You must upgrade.
Year 1
$3M Capexpurchase
Year 3Year 2
Support Contract
The Next $3M+ Capexpurchase
$750K Opex to extend support for 1 year
Year 1 Year 3Year 2
$3M Capexpurchase
Support Contract
Avoid Capex and Opex waste with 3rd party maintenance
Upgr
ade
Expe
cted
Buy $250K TPM contract
CurvatureSuppo
rtEquipme
nt
Lower Cost
Savings
Insights:- Extend the life of your storage- Don’t throw away what works- Use 3rd Party maintenance
Make a strategic choice to go from CapEx waste…
©2015 Curvature LLC
f 3-5 years g
Software/ firmware UpdateTAC/Software Support
Hard
ware
Rep
lace
• Refreshing every 3-5 years
• OEM support on everything
OEM maintenance costs continue to escalate
Hard
ware
Rep
lace
f 3-5 years g . . .
Cost
©2015 Curvature LLC
…to CapEx savings. Base your tech refresh on:
f 7-10 years g Hard
ware
Rep
lace
• Leverage used/quality equipment• Engage third party maintenance• Delay CapEx spend• Recover CapEx/OpEx on forced
upgrade
3rd-Party Maintenance Savings
Cost
OEM Product Lifecycle is Irrelevant!
P Business needs P Technical relevance
REAL WORLD EXAMPLES
©2014 CURVATURE, LLC
Customer with 1200 Cisco WC6509 switches deployed worldwideCisco
● Cisco maintenance unavailable – past EOS date● Through Cisco’s “special dispensation” an average price of $10,500 Per
chassis was offered for only 1 year ($12.6m)● At end of 1 year Nexus upgrade offered (Capex $100m+)
What is the impact of deploying these strategies?
Curvature● Curvature offered maintenance at $780,000 in year 1● 15% cost reduction each subsequent year, and no EOS date
Total Savings in just the first year: over $110,000,000
©2014 CURVATURE, LLC
Large US market chain – 5000 stores in US and Canada
US – 4000 stores● Total Annual Opex Reduction in USA from $3,200,000 to $1,600,000● SmartNet retained on all security devices…
What is the impact of deploying these strategies?
Canada – 1000 stores● Utilizing one-generation old update strategy in 1000 stores in Canada, cost
per store reduced from $7000 per store to $2500 per store. ● CapEx savings - $4,500,000 ● Annual OpEx in Canada reduced from $900,000 to $320,000
Total Savings over 5 years: $15,400,000
©2014 CURVATURE, LLC
Large Fortune100 multinational investment bank
● Annual OpEx reduced from $15,500,000 to $10,000,000 by moving to TPM on 50% of their assets ($5,500,000 per year)
What is the impact of deploying these strategies?
Total Savings over 3 years: $53,500,000
● 3 year rolling CapEx reduction of $30,000,000+
● 3 year savings on network downtime avoidance of $7,000,000
© Curvature LLC
serialized units shipped in 2014250K+
2014 revenue$320M+
employees worldwide600+
clients worldwide10K+
of experience28 years
Global leader in technology equipment and services
around the globe9 offices
500+Forward Stocking Locations available
AsiaSingaporeTokyo
EuropeAmsterdamLondon
North AmericaSanta BarbaraDallasSacramento New YorkPortland
Offices Worldwide
Where We Are
Our Solutions
Pre-Owned Networking,
Servers & Storage
OEM Partnerships
Curvature Products
Maintenance & Support
Professional &Managed Services
© Curvature LLC
TL-9000certifiedTL-9000
certifiedSpirent® Test Center
© Curvature LLC
Our Vision for the FutureIt’s a complex world
Customers are demanding a solution. They are demanding a BETTER WAY.
Curvature is one company that can:
• Buy and Sell anything - every generation of hardware• Maintain / monitor / manage everything• Single point of contact, multi-vendor lifecycle management
partner for enterprise – anywhere and everywhere• Advanced Asset Management IT platform (SaaS) tying it all
together• Independent (and honest) NOS and IT architecture services• Freedom: No EOL/EOS dates, no forced upgrades, unlimited
flexibility for both hardware procurement and managed maintenance options.
Next steps
1
ValidateAnalyst
s
23
4Verify
Capabilities
QuantifyValue
Curvature Proposes
a Solution
Solution
ResourcesGartner: Know When It's Time to Replace Enterprise Network Equipment. LinkForrester Consulting (Executive Summary): Challenging The Status Quo On Maintenance Contracts And Refresh Cycles To Lower Costs. LinkForrester Consulting (Full Report): Challenging The Status Quo On Maintenance Contracts And Refresh Cycles To Lower Costs. LinkForrester Research (Executive Summary): The Total Economic Impact of Curvature. LinkForrester Research (Full Report): The Total Economic Impact of Curvature. LinkCurvature RFP Recommendations LinkLippis Report Research Note 203 ©2015 Curvature LLC
/Curvature
@Curvature
/company/Curvature
www.curvature.com
Find Us Online
/channel/Curvature