Why CIOs cannot afford what they started, and how Optical LAN helps

by | Jun 29, 2021 | Blog

Why CIOs cannot afford what they started, and how Optical LAN helps

No wonder CIOs are telling us, “We cannot afford what we started with our legacy Ethernet switch manufacturer.” Recently a major switch vendor announced that one of their customers purchased technical support services at a cost of over a billion dollars (e.g. Cisco wins $1.1B software support contract).

This is yet another example of traditional switch maker not only raising initial equipment purchase price, but also hitting customers with steep annual operational expenses in the form of equipment software licenses costs and technical support costs. Making matters worse, these incumbent switch vendors are complicating business operations, and confusing their customers plus their CIOs, by constantly elevating network complexity with a hierarchy of software licensing expectations. This is why many CIOs are saying they can’t afford what they started, since they now feel trapped, and obligated, to pay exorbitant costs year-over-year to keep support and licensing.

So, how can Optical LAN help? CIOs will be pleased to learn that the annual equipment software licensing expense is not necessary with Tellabs Optical LAN – and with OLAN, the CIOs can apply that money saved (billion dollars?) towards other more critical needs (e.g. security, wireless, IoT, smart building, etc…).

The better way to build and operate networks is Passive Optical LAN. Tellabs Optical LAN software is owned in perpetuity and does not require annual renewal. Even better, Optical LAN can lower yearly support costs compared to what traditional switch manufacturers charge. These types of on-going operational expense savings can be significant, and for some companies add-up to billions of dollars! Our customers tell us that they can cut their annual support costs in half as they transitioned from old switch supplier 24x7x365 annual support to new Tellabs 24x7x365 yearly support (including advanced equipment replacement). All of these points help our CIOs save money on day-1 capital expenses and on-going operational expenses, such as:

  • 20-50% saving in day-1 equipment purchase costs
  • Eliminate perpetual annual licensing expenses
  • Remove the need for 3-5 year technology refresh cycles
  • Reduces and refocus IT and networking staff daily support

If you would like to learn more about this topic, you can read our “OLAN operational efficiencies’ save money in 9 different ways” blog and view our online Operational Efficiencies resources on our website. You can also connect with us on Facebook, LinkedInTwitter, Instagram, and YouTube.

Tom Parisi
Tom Parisi
VP Federal Sales