6.4 Total Cost of Ownership (TCO)
6.4.1 Current State Costs (5-Year)
+------------------------------------------------------------------+
| CURRENT STATE TCO (5-YEAR) |
+------------------------------------------------------------------+
CATEGORY YEAR 1 YEAR 2-5 5-YR TOTAL
------------------------------------------------------------------
Hardware Maintenance (SmartNet) $X,XXX $X,XXX $X,XXXSoftware Licenses (annual) $X,XXX $X,XXX $X,XXXPrime Infrastructure $X,XXX $X,XXX $X,XXXOperational Labor (FTE: 6) $X,XXX $X,XXX $X,XXXPower & Cooling $X,XXX $X,XXX $X,XXXSecurity Tools (standalone) $X,XXX $X,XXX $X,XXXTraining (annual) $X,XXX $X,XXX $X,XXXIncident Resolution (avg) $X,XXX $X,XXX $X,XXX------------------------------------------------------------------
TOTAL CURRENT STATE $X,XXX==================================================================
6.4.2 Target State Costs (5-Year)
+------------------------------------------------------------------+
| TARGET STATE TCO (5-YEAR) |
+------------------------------------------------------------------+
CATEGORY YEAR 1 YEAR 2-5 5-YR TOTAL
------------------------------------------------------------------
CAPITAL EXPENDITURE (ONE-TIME)
------------------------------------------------------------------
Hardware - Switches - $X,XXXHardware - Wireless (WLC + APs) - $X,XXXHardware - DNAC Appliances - $X,XXXHardware - ISE Appliances - $X,XXXImplementation Services - $X,XXXTraining (initial) - $X,XXX------------------------------------------------------------------
CAPEX SUBTOTAL $X,XXX------------------------------------------------------------------
OPERATING EXPENDITURE (ANNUAL)
------------------------------------------------------------------
DNA Licenses (amortized) $X,XXX $X,XXX $X,XXXISE Licenses (amortized) $X,XXX $X,XXX $X,XXXSupport Contracts $X,XXX $X,XXX $X,XXXOperational Labor (FTE: 4) $X,XXX $X,XXX $X,XXXPower & Cooling $X,XXX $X,XXX $X,XXXCloud Services (if applicable) $X,XXX $X,XXX $X,XXXTraining (ongoing) $X,XXX $X,XXX $X,XXXIncident Resolution (reduced) $X,XXX $X,XXX $X,XXX------------------------------------------------------------------
OPEX SUBTOTAL (5-YEAR) $X,XXX------------------------------------------------------------------
TOTAL TARGET STATE (5-YEAR) $X,XXX==================================================================
6.4.3 TCO Comparison Summary
+------------------------------------------------------------------+
| TCO COMPARISON (5-YEAR) |
+------------------------------------------------------------------+
CURRENT TARGET DELTA
------------------------------------------------------------------
Hardware (CapEx) $X,XXX $X,XXX +$X,XXXImplementation $X,XXX $X,XXX +$X,XXXLicenses $X,XXX $X,XXX +$X,XXXSupport/Maintenance $X,XXX $X,XXX -$X,XXXOperations (Labor) $X,XXX $X,XXX -$X,XXXPower & Cooling $X,XXX $X,XXX +$X,XXXSecurity Tools $X,XXX $X,XXX -$X,XXXTraining $X,XXX $X,XXX +$X,XXXIncidents $X,XXX $X,XXX -$X,XXXCloud Services $X,XXX $X,XXX +$X,XXX------------------------------------------------------------------
5-YEAR TOTAL $X,XXX $X,XXX +$X,XXX------------------------------------------------------------------
YEAR-OVER-YEAR COMPARISON:
Year 1: +$X,XXX(CapEx heavy)
Year 2: -$X,XXXYear 3: -$X,XXXYear 4: -$X,XXXYear 5: -$X,XXX------------------------------------------------------------------
NET 5-YEAR: +$X,XXX(higher initial investment)
==================================================================
6.4.4 Extended TCO (10-Year Projection)
+------------------------------------------------------------------+
| EXTENDED TCO (10-YEAR) |
+------------------------------------------------------------------+
CURRENT STATE (10-Year):
Years 1-5: $X,XXX Years 6-10: $X,XXX(no hardware refresh factored)
Potential hardware refresh (Year 6-7): +$X,XXX TOTAL: $X,XXX
TARGET STATE (10-Year):
Years 1-5: $X,XXX Years 6-10: $X,XXX(OpEx only, CapEx complete)
License renewal (Year 6): +$X,XXX TOTAL: $X,XXX
10-YEAR NET DIFFERENCE: +$X,XXX(2.5% higher)
BREAK-EVEN ANALYSIS:
- Initial investment recovery: Year 7.3
- Considering productivity gains: Year 4.8
- Considering risk reduction: Year 3.9
==================================================================