The cost is frequently a significant restriction in projects when it comes to network architecture. If we look at the components of cost, we can see that they are as follows:
OPEX (Operating Expense)
Operating expenditures are all costs incurred in the course of ordinary business. Since they are part of day-to-day operations, they are easier to comprehend conceptually than capital expenses.
Support, maintenance, labor, bandwidth, and utilities are all examples of operational expenditures. Creating a complicated network architecture may demonstrate your technical expertise, but it may also add needless complexity to the network, making it more difficult to create, maintain, run, and administer.
Improved network uptime (which can avoid or decrease fines associated with outages), increased user productivity, simplicity of operation, and energy savings benefit from a well-designed network. Consider coming up with the simplest solution that satisfies the company’s needs.
CAPEX (Capital Expense):
When a corporation spends money, uses collateral, takes on debt to acquire a new asset, or increases the value of an existing asset to get benefits for more than a single tax year, it is a capital expenditure.
CapEx stands for capital expenditures, such as equipment, inventories, intellectual property, and real estate. Longer deployment lifetime, investment protection, network consolidation, and virtualization benefit from a well-thought-out design, as are non-measurable benefits like business agility, business transformation, and innovation, cutting risk and costs in the long term.
TCO (Total cost of ownership):
The total cost of ownership (TCO) is a financial estimate that buyers and owners may use to figure out a product or service’s direct and indirect expenses.
TCO is a superior statistic for evaluating network cost than just CapEx since it considers both CapEx and OpEx. By optimizing both CapEx and OpEx, you can make your network designs more cost-effective in the long term and do more with less.