Jeff ZanardiSeptember 2015

Take Back Control:“Reduce Networking/Infrastructure Cost With Multi-Vendor Equipment and Support Strategies”

Introduction

© Curvature LLC

I’m not going to try and sell you anything today.  

My purpose is to share insights with you based on independent research from Gartner, and others.The insights focus on strategic choices within IT:

– Hardware refresh cycles (CAPEX spend)

– Maintenance strategies (OPEX spend)

It’s A Complex World

Does this look like you? OEM’s and VAR’s pounding at your door?

This “Transformational IT”… who is going to pay for it?

© Curvature LLC

© Curvature LLC

80

20

65

35

Bi-modal ITShifting budget from Stability to Innovation

Requires a more informed design and support model to achieve balance

Transformation is Imperative

© Curvature LLC

Insights

• OEM’s depend on continuous CapEx expenditures (every 3-5 years)– Escalating maintenance costs– End Of Support

• OEM’s force upgrades!

• 3-5 year upgrade cycle is arbitrary (and wrong)

• Software is not nearly as big a concern as the OEM’s would have you believe

LETS LOOK AT CISCO AND EMC

-80 % DON’T KNOW ALTERNATIVES TO OEM SUPPORT

Nick Lippis in The Lippis Report 203 expects Cisco 6509 could and should be in service in 2025...

- 79 % REFRESH 3-5 YRS

- 85 % WOULD KEEP LEGACY EQUIPMENT

THE 5 YEAR MYTH

- USEFUL LIFE - 7 TO 10 YRS

Cisco

-50% OF THE NETWORK DOESN’T NEED OEM SUPPORT CONTRACT FOR UPDATES-EVEN WHEN AVAILABLE, UPDATES ARE INFREQUENTLY APPLIED-SOFTWARE IS AVAILABLE A LA CARTE

THE SOFTWARE UPDATES MYTH

Cisco

3-5 yrs (avg)

Cost

Time Last date ofSupportEnd

of Sale

End of SW Rel.

IOS UpdateTAC/Software SupportHardware Replace

OEM Support contract (OpEx)

Hardware/Tech Refresh Purchase(CapEx)

© Curvature LLC

CISCO

Hardware/Tech Refresh Purchase(CapEx)

3-5 yrs (avg)

Cost

Time Last date ofSupportEnd

of Sale

End of SW Rel.

IOS UpdateTAC/Software SupportHardware Replace

OEM Support contract (OpEx)

-Don’t throw away what is working-Use third party maintenance support

Insights

-Don’t pay for free SW-Don’t pay for N/A SW-Prioritize your IT investments

CurvatureSuppo

rtEquipme

ntLower Cost

WasteDouble

PayWaste

NA

Forced

© Curvature LLC

Imagine lowering cost and

saving every refresh cycle

……

Savings

EMC

©2015 Curvature LLC

Upgr

ade

Expe

cted

Year 4

No more support available.

You must upgrade.

Year 1

$3M Capexpurchase

Year 3Year 2

Support Contract

The Next $3M+ Capexpurchase

$750K Opex to extend support for 1 year

Year 1 Year 3Year 2

$3M Capexpurchase

Support Contract

Avoid Capex and Opex waste with 3rd party maintenance

Upgr

ade

Expe

cted

Buy $250K TPM contract

CurvatureSuppo

rtEquipme

nt

Lower Cost

Savings

Insights:- Extend the life of your storage- Don’t throw away what works- Use 3rd Party maintenance

Make a strategic choice to go from CapEx waste…

©2015 Curvature LLC

f 3-5 years g

Software/ firmware UpdateTAC/Software Support

Hard

ware

Rep

lace

• Refreshing every 3-5 years

• OEM support on everything

OEM maintenance costs continue to escalate

Hard

ware

Rep

lace

f 3-5 years g . . .

Cost

©2015 Curvature LLC

…to CapEx savings. Base your tech refresh on:

f 7-10 years g Hard

ware

Rep

lace

• Leverage used/quality equipment• Engage third party maintenance• Delay CapEx spend• Recover CapEx/OpEx on forced

upgrade

3rd-Party Maintenance Savings

Cost

OEM Product Lifecycle is Irrelevant!

P Business needs P Technical relevance

REAL WORLD EXAMPLES

©2014 CURVATURE, LLC

Customer with 1200 Cisco WC6509 switches deployed worldwideCisco

● Cisco maintenance unavailable – past EOS date● Through Cisco’s “special dispensation” an average price of $10,500 Per

chassis was offered for only 1 year ($12.6m)● At end of 1 year Nexus upgrade offered (Capex $100m+)

What is the impact of deploying these strategies?

Curvature● Curvature offered maintenance at $780,000 in year 1● 15% cost reduction each subsequent year, and no EOS date

Total Savings in just the first year: over $110,000,000

©2014 CURVATURE, LLC

Large US market chain – 5000 stores in US and Canada

US – 4000 stores● Total Annual Opex Reduction in USA from $3,200,000 to $1,600,000● SmartNet retained on all security devices…

What is the impact of deploying these strategies?

Canada – 1000 stores● Utilizing one-generation old update strategy in 1000 stores in Canada, cost

per store reduced from $7000 per store to $2500 per store. ● CapEx savings - $4,500,000 ● Annual OpEx in Canada reduced from $900,000 to $320,000

Total Savings over 5 years: $15,400,000

©2014 CURVATURE, LLC

Large Fortune100 multinational investment bank

● Annual OpEx reduced from $15,500,000 to $10,000,000 by moving to TPM on 50% of their assets ($5,500,000 per year)

What is the impact of deploying these strategies?

Total Savings over 3 years: $53,500,000

● 3 year rolling CapEx reduction of $30,000,000+

● 3 year savings on network downtime avoidance of $7,000,000

© Curvature LLC

serialized units shipped in 2014250K+

2014 revenue$320M+

employees worldwide600+

clients worldwide10K+

of experience28 years

Global leader in technology equipment and services

around the globe9 offices

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Offices Worldwide

Where We Are

Our Solutions

Pre-Owned Networking,

Servers & Storage

OEM Partnerships

Curvature Products

Maintenance & Support

Professional &Managed Services

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certifiedSpirent® Test Center

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Our Vision for the FutureIt’s a complex world

Customers are demanding a solution. They are demanding a BETTER WAY.

Curvature is one company that can:

• Buy and Sell anything - every generation of hardware• Maintain / monitor / manage everything• Single point of contact, multi-vendor lifecycle management

partner for enterprise – anywhere and everywhere• Advanced Asset Management IT platform (SaaS) tying it all

together• Independent (and honest) NOS and IT architecture services• Freedom: No EOL/EOS dates, no forced upgrades, unlimited

flexibility for both hardware procurement and managed maintenance options.

Next steps

1

ValidateAnalyst

s

23

4Verify

Capabilities

QuantifyValue

Curvature Proposes

a Solution

Solution

ResourcesGartner: Know When It's Time to Replace Enterprise Network Equipment. LinkForrester Consulting (Executive Summary): Challenging The Status Quo On Maintenance Contracts And Refresh Cycles To Lower Costs. LinkForrester Consulting (Full Report): Challenging The Status Quo On Maintenance Contracts And Refresh Cycles To Lower Costs. LinkForrester Research (Executive Summary): The Total Economic Impact of Curvature. LinkForrester Research (Full Report): The Total Economic Impact of Curvature. LinkCurvature RFP Recommendations LinkLippis Report Research Note 203 ©2015 Curvature LLC

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