November 16, 2015

The Misguided CAPEX Obsession


When operators evaluate new technologies and network equipment, it inevitably involves an intensive and detailed process, whereby all aspects of candidate technologies and prospective vendors are thoroughly analyzed.  There is always a wide range of selection criteria, including power consumption, size, manageability, operational fit, and performance.  However, in the majority of cases, the price of the equipment ends up being the primary selection criteria.  This is driven by a few factors, the first being that it is easy to make a general price comparison.  Price is a simple number that can directly be compared between solutions.  It is also a guaranteed number, as the operator can be sure of the cost through a properly defined quote, and can realize immediate savings.  Focusing on CAPEX can also allow buyers room for negotiation, as well as leveraging other buying processes such as online auctions and open tenders to achieve cost savings.

By Greg Friesen
VP of Product Management, DragonWave


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Taylor Juska