SHARE



ABOUT THE AUTHOR


Matt Brunk
Matt Brunk has worked in past roles as director of IT for a multisite health care firm; president of Telecomworx,...
Read Full Bio >>
SHARE



Matt Brunk | November 26, 2013 |

 
   

Managing Converged Networks: Money Talks

Managing Converged Networks: Money Talks Attaching a dollar value to the components puts into perspective the fact that the network isn't just a utility.

Attaching a dollar value to the components puts into perspective the fact that the network isn't just a utility.

Before convergence there was controlled chaos, and now that the network is overlaid with services and applications, new challenges arise. Convergence to many means voice riding on the data network--so my question is, "Whatever happened to convergence?"

In addressing this question, I believe that looking hard at the infrastructure and then the components that I prefer to refer as "assets" may make a better business case and eventually lead to an answer. My buddy that I work with frequently is now using the word "assets," which businesses including staff and management of companies and organizations understand better--or at least they pay closer attention.

The infrastructure includes the network, cabling, fiber, circuits, hardware, software, endpoints and management tools. However you want to classify the components and infrastructure, attach a cost to those. There are fixed costs and monthly recurring direct costs, including licensing, usage and other fees. This is probably where many will stop and take a deep breath and say, "What's the point?"

The issue I see recurring in numerous businesses and organizations is the assumption that the "network" is just a utility and their demand is for an always-on, always-available network. Attaching a dollar value to the components puts into perspective the fact that the network isn't just a utility--and once values are known, other decisions become easier to make and understand.

My favorite example is power, and networks are powered and impacted by power from the grid and power influence within the local power infrastructure. In short, many companies are shooting themselves in the foot without knowing that 70% or more of harmful power-line influence originates within their own premises. There are different levels of whole-panel power protection, and a device that costs $700 installed isn't likely to be appropriate for protecting a data center panel--these devices are more likely to cost $8,300 installed. Once our customers understand costs and values--and we advise them to install appropriate whole-panel protection--it's been more likely to happen.

Then in understanding power, we don't just stop at the panel, but also include protection at endpoints, including UPS where appropriate. In this same example, we also add that anything else powered from that panel with the surge protection device (SPD) is also the beneficiary of that SPD. Lighting ballasts and starters and numerous other electrical components stand to benefit with fewer failures and longer life spans. While IT won't want to tally the values of those assets, it should be clear what those costs are--including the cost of disruption.

Weighing these costs and value of assets leaves most with an easy decision as to why they need to invest in an asset that serves years to protect other assets while preventing disruption to the business.

The other reason for attaching values to assets is to put into scope what you are managing and to gauge technology refresh efforts in the future. For example, our education vertical receives discounts on network equipment; for 10/100/1000 LAN switches, using vs. not using PoE is a cost difference of about $781, or $32.54 per port/24 ports. Is it worth having all switch gear be PoE, instead of mixing non-PoE with PoE switches? While it's more convenient to go all-PoE, the costs that will increase must also include the UPS, since the UPS will need to be sized to handle the additional PoE potential power draw.

Another example is from the late 1970s, when most North American call centers knew what it cost for a lost sale caused by a busy call center or one disrupted because of weather, power or other issues. Knowing these costs and costs of losses and disruptions put into perspective the potential of protecting revenues and weighing against the cost of remediation to prevent the losses or disruptions.

Too often, customers must endure the lesson from IT about the benefit of a technology upgrade or other marvel. Unfortunately many in business really need a synopsis and translation of technology into a stated value or monetary cost, and providing this seems to propel efforts in a more positive direction.

Follow Matt Brunk on Twitter and Google+!
@telecomworx
Matt Brunk on Google+





COMMENTS



Enterprise Connect Orlando 2018
March 12-15 | Orlando, FL

Connect with the Entire Enterprise Communications & Collaboration Ecosystem


Stay Up-to-Date: Hear industry visionaries in Keynotes and General Sessions delivering the latest insight on UC, mobility, collaboration and cloud

Grow Your Network: Connect with the largest gathering of enterprise IT and business leaders and influencers

Learn From Industry Leaders: Attend a full range of Conference Sessions, Free Programs and Special Events

Evaluate All Your Options: Engage with 190+ of the leading equipment, software and service providers

Have Fun! Mingle with sponsors, exhibitors, attendees, guest speakers and industry players during evening receptions

Register now with code NOJITTEREB to save $200 Off Advance Rates or get a FREE Expo Pass!

November 1, 2017

Your customers (internal and external) demand that you offer them the ability to connect by any means. With the adoption of cloud communications tools you now have access to an expanded portfolio o

October 18, 2017

Microsofts recent Ignite event had some critically important announcements for enterprise communications. Namely, Microsofts new Team Collaboration offering, Teams, will be its primary communicatio

September 20, 2017

Customer experience can make or break your business. But how do you achieve outstanding customer service when you're dealing with outdated organizational structure, lagging technology, dated proces

October 23, 2017
Wondering which Office 365 collaboration tool to use when? Get quick pointers from CBT Nuggets instructor Simona Millham.
September 22, 2017
In this podcast, we explore the future of work with Robert Brown, AVP of the Cognizant Center for the Future of Work, who helps us answer the question, "What do we do when machines do everything?"
September 8, 2017
Greg Collins, a technology analyst and strategist with Exact Ventures, delivers a status report on 5G implementation plans and tells enterprises why they shouldn't wait to move ahead on potential use ....
August 25, 2017
Find out what business considerations are driving the SIP trunking market today, and learn a bit about how satisfied enterprises are with their providers. We talk with John Malone, president of The Ea....
August 16, 2017
World Vision U.S. is finding lots of goodness in RingCentral's cloud communications service, but as Randy Boyd, infrastructure architect at the global humanitarian nonprofit, tells us, he and his team....
August 11, 2017
Alicia Gee, director of unified communications at Sutter Physician Services, oversees the technical team supporting a 1,000-agent contact center running on Genesys PureConnect. She catches us up on th....
August 4, 2017
Andrew Prokop, communications evangelist with Arrow Systems Integration, has lately been working on integrating enterprise communications into Internet of Things ecosystems. He shares examples and off....
July 27, 2017
Industry watcher Elka Popova, a Frost & Sullivan program director, shares her perspective on this acquisition, discussing Mitel's market positioning, why the move makes sense, and more.
July 14, 2017
Lantre Barr, founder and CEO of Blacc Spot Media, urges any enterprise that's been on the fence about integrating real-time communications into business workflows to jump off and get started. Tune and....
June 28, 2017
Communications expert Tsahi Levent-Levi, author of the popular BlogGeek.me blog, keeps a running tally and comprehensive overview of communications platform-as-a-service offerings in his "Choosing a W....
June 9, 2017
If you think telecom expense management applies to nothing more than business phone lines, think again. Hyoun Park, founder and principal investigator with technology advisory Amalgam Insights, tells ....
June 2, 2017
Enterprises strategizing on mobility today, including for internal collaboration, don't have the luxury of learning as they go. Tony Rizzo, enterprise mobility specialist with Blue Hill Research, expl....
May 24, 2017
Mark Winther, head of IDC's global telecom consulting practice, gives us his take on how CPaaS providers evolve beyond the basic building blocks and address maturing enterprise needs.
May 18, 2017
Diane Myers, senior research director at IHS Markit, walks us through her 2017 UC-as-a-service report... and shares what might be to come in 2018.
April 28, 2017
Change isn't easy, but it is necessary. Tune in for advice and perspective from Zeus Kerravala, co-author of a "Digital Transformation for Dummies" special edition.
April 20, 2017
Robin Gareiss, president of Nemertes Research, shares insight gleaned from the firm's 12th annual UCC Total Cost of Operations study.
March 23, 2017
Tim Banting, of Current Analysis, gives us a peek into what the next three years will bring in advance of his Enterprise Connect session exploring the question: Will there be a new model for enterpris....
March 15, 2017
Andrew Prokop, communications evangelist with Arrow Systems Integration, discusses the evolving role of the all-important session border controller.
March 9, 2017
Organizer Alan Quayle gives us the lowdown on programmable communications and all you need to know about participating in this pre-Enterprise Connect hackathon.
March 3, 2017
From protecting against new vulnerabilities to keeping security assessments up to date, security consultant Mark Collier shares tips on how best to protect your UC systems.
February 24, 2017
UC analyst Blair Pleasant sorts through the myriad cloud architectural models underlying UCaaS and CCaaS offerings, and explains why knowing the differences matter.
February 17, 2017
From the most basics of basics to the hidden gotchas, UC consultant Melissa Swartz helps demystify the complex world of SIP trunking.
February 7, 2017
UC&C consultant Kevin Kieller, a partner at enableUC, shares pointers for making the right architectural choices for your Skype for Business deployment.
February 1, 2017
Elka Popova, a Frost & Sullivan program director, shares a status report on the UCaaS market today and offers her perspective on what large enterprises need before committing to UC in the cloud.
January 26, 2017
Andrew Davis, co-founder of Wainhouse Research and chair of the Video track at Enterprise Connect 2017, sorts through the myriad cloud video service options and shares how to tell if your choice is en....
January 23, 2017
Sheila McGee-Smith, Contact Center/Customer Experience track chair for Enterprise Connect 2017, tells us what we need to know about the role cloud software is playing in contact centers today.