Network Equipment TCO: Calculate the True Cost of Your Infrastructure

Calculating network TCO (Total Cost of Ownership) over 3-5 years is essential for IT departments. The purchase price accounts for only 30-40% of the total cost. This guide provides a complete TCO methodology covering CAPEX, OPEX, overlooked and hidden costs, and vendor comparisons.

TCO Components

CAPEX (Capital Expenditure)

• Hardware: switches, routers, firewalls, and WiFi APs
• Initial licenses (Network Essentials/Advantage, DNA)
• Installation and deployment services
• Team training

OPEX (Operating Expenditure)

• Support / SmartNet / FortiCare: 12-20% of the pre-tax price/year
• License renewals (often 75-100% of the initial price every 3 years)
• Energy (electricity for PoE switches = €1,100/year per 48-port switch)
• Staff: internal IT team (% of time spent on networking)
• Outsourcing / MSP
• Data center hosting (for colocation)
• Internet connectivity (FTTH, MPLS)

Hidden Costs

• Downtime: 1h = €5-15k for an SMB, €100k+ for a large enterprise
• Ongoing team training
• Migrations at EoL
• Unplanned scaling
• Ad hoc consulting

3-Year TCO Example for an SMB with 100 Users

• Hardware (FortiGate + switches + APs): €25,000
• 3-year licenses: €10,000
• SmartNet/FortiCare: €6,000
• Initial deployment: €8,000
• 3-year FTTH service: €5,400
• 3-year electricity costs: €5,000
• MSP support: €18,000
• Training: €3,000
• Total 3-year TCO: €80,400 (for €25k of hardware!)

Cisco vs FortiGate TCO Comparison

• Cisco: premium hardware, expensive DNA licenses, and a 3-year TCO 30% higher than an equivalent FortiGate solution
• FortiGate: all-in-one Security Fabric, lower cost, and a more favorable TCO
• Meraki: simple cloud management, with a TCO comparable to Cisco due to recurring licenses

TCO Optimization Levers

• OPTINOC refurbished equipment: 40-70% savings on hardware + new licenses
• Multi-service consolidation (FortiGate = FW + managed APs + switches)
• SD-WAN vs MPLS: 40-70% savings
• 5-year vs 3-year refresh cycles (if there is no critical EoL issue)
• Vendor negotiation: potential savings of 20-40% for volume purchases

Order from OPTINOC

Customized comparative TCO analysis. CAPEX/OPEX-optimized solutions. Refurbished + new equipment. Quote within 2h.