Study shows 60% savings in capital cost with Optical LAN versus a legacy switch design

by | Jul 22, 2020 | Blog

We continue to see challenging conditions for our staff, partners and customers. During these uncertain times it is prudent for people and businesses to cut costs wherever possible. When it comes to IT equipment, infrastructure and staff budget reductions, we can agree that saving money is a good thing, but it should be done without negatively impacting network performance, reliability, security and future scalability.

Tellabs Optical LAN customers have spoken of good capital expense savings and fantastic operational savings, while improving network uptime, removing network points of vulnerability and future-proofing their network.

In an effort to help drive this industry dialogue concerning how to best use Optical LAN (OLAN) to lower networking expenses, we believe it is very important investigate Tellabs’ OLAN capital cost versus legacy switch vendor, and other bigger operational savings.

Tellabs OLAN offers 60% savings versus legacy switch vendor

Many of our customers report day-1 CapEx savings by choosing OLAN over a legacy network design, from a single small Santa Fe Public School campus saving $60,000 and to a large USMC MCRD San Diego campus saving $1,800,000.

In a recent cost study, we calculated four (4) equipment-to-equipment cost scenarios for Tellabs FlexSym OLT6 using 10G XGS-PON deep fiber Tellabs FlexSym ONT205s, Tellabs FlexSym OLT6 using 10G XGS-PON closet-based Tellabs FlexSym ONT248s, Cisco 9200 and Cisco 9300 configurations. The outcome of this analysis showcases steady savings for Tellabs Optical LAN for all projects ranging in size from 192 PoE enabled Ethernet ports to over 7,000 PoE enabled Ethernet ports – up to 60% difference.


Study shows 60% savings in capital cost with Optical LAN versus a legacy switch design

This is consistent with The Association for Passive Optical LAN (APOLAN) Technology Committee recently published  cost comparison between POL and legacy switch results. Their modeling shows savings from 40-56% in favor of POL based on three differently sized deployment scenarios.

Please note that these cost studies are approximate estimates only, and not quotes, nor are they guarantees. Actual project costs will vary based on numerous factors including, but not limited to, geographic region and local market impacts.

Other EVEN LARGER operational savings

These IT and networking cost-cutting decisions need to seriously consider the operational savings calculations as well. As we stated earlier, our OLAN customers experience even greater year-over-year operational savings (e.g. Santa Fe Public School 10-year TCO projected savings of $1,600,000 and USMC MCRD San Diego 10-year TCO projected savings of $2,900,000 in OpEx) versus day-1 capital savings specifically attributed:

  • Operational Efficiencies
  • Software Subscription
  • Annual Support
  • Training and Recertification
  • Technology Refresh

Now is the time to turn a critical eye at enterprise connectivity costs, and Optical LAN is clearly the best choice. We encourage you to reach-out to a Tellabs team member, or one of our skilled partners, to further this discussion around how Optical LAN can deliver CapEx saving, and even better OpEx savings, while improving network availability, removing known network vulnerabilities and future-proofing your network investment.

To learn more. you can stay up-to-date with Tellabs by connecting with us on social media; FacebookLinkedInTwitter, Instagram, and YouTube.


Joel Fischer
Joel Fischer
Director Sales Engineering