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© 2008 Cisco Systems, Inc. All rights reserved.
Cisco Confidential
C97-502409-00
Network Total Cost of Ownership (TCO)
Capital expenditure is
one
element of the total cost of a system.
Operational and opportunity costs outweigh capital expenditures.
Capital Expenditures
*
(20%)
Operational Costs
*
(80%)
Troubleshooting
Maintenance
Skilled Technical Staff
Facilities
Productivity Lost
Lost Opportunity Costs
Missed or Delayed Business
Opportunities Due to
Unavailable Technologies
Network Costs = 20% Purchase, 80% Operations
Source: Gartner Group, 2005.
