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It is critical to review the company's total contracts, integrate what one can, and simplify contracts in this situation. Any contract will have fees, service fees, and maintenance fees, and switching to a single or few vendors will drastically reduce costs.
Fremont, CA: In today's market, a fast, productive, and hopefully cost-effective network is critical for supporting communication and business systems. Depending on the market, companies usually spend anywhere from 2 percent to 7 percent of overall revenue on IT services such as networking, making IT one of the most expensive investments. At the same time, considering the high costs of hardware and management, most companies try to keep IT budgets as minimal as possible.
How to reduce networking costs:
Reevaluating Network Vendors
Vendor bloat is a major issue in any technical industry, particularly if a company has grown, switched technologies, or merged with another. Many businesses have contracts with one to five suppliers, each of which sells variants of the same thing or various aspects of a company's networking or IT solution.
Since you can use this period to search for rivals, test emerging technology, and probably innovate, the beginning of the year is also an excellent time to evaluate potentially expiring contracts.
Sticking with a single vendor for the duration of an organization's existence is secure, but it frequently means the vendor has little desire to innovate or provide more. When consolidating or moving vendors, one should make sure to consider the long-term cost and value.
Adopting SD-LAN and SD-WAN
SD-WAN and SD-LAN are two solutions that are rapidly gaining traction due to the ease of use, scalability, and cost-effectiveness of SDN on LAN and Wan. While SDN is an architecture, SD-WAN can be purchased and implemented at a much lower cost than traditional WAN.
The main benefits, in this case, are convergence, central control, and dynamically sharing network bandwidth. Most are entirely policy-driven, self-organizing, and therefore easy to run and scale. According to one Gartner report, SD-WAN can be up to 2.5x less expensive than conventional WAN.
These technologies also allow faster and more effective integration of cloud technologies such as cloud-based security, central network management, and automatic scaling to meet peak usage.
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