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.
