Top Tips To Quantify The Cost Of WAN Optimization


Editor’s Note: As we mentioned in a recent article, there’s often some confusion when it comes to how WAN optimization fits into the overall network optimization industry — especially when compared to Internet optimization. Although similar, the two techniques require different approaches to optimization. What follows are some simple questions to ask your vendor before you purchase a WAN optimization appliance. For the record, the NetEqualizer is primarily used for Internet optimization.

When presenting a WAN optimization ROI argument, your vendor rep will clearly make a compelling case for savings.  The ROI case will be made by amortizing the cost of equipment against your contracted rate from your provider. You can and should trust these basic raw numbers. However, there is more to evaluating a WAN optimization (packet shaping) appliance than comparing equipment cost against bandwidth savings. Here are a few things to keep in mind:

  1. The amortization schedule should also make reasonable assumptions about future costs for T1, DS3, and OC3 links. Most contracted rates have been dropping in many metro areas and it is reasonable to assume that bandwidth costs will perhaps be 50-percent less two to three years out.
  2. If you do increase bandwidth, the licensing costs for the traffic shaping equipment can increase substantially. You may also find yourself in a situation where you need to do a forklift upgrade as you outrun your current hardware.
  3. Recurring licensing costs are often mandatory to keep your equipment current. Without upgrading your license, your deep packet inspection (layer 7 shaping filters) will become obsolete.
  4. Ongoing labor costs to tune and re-tune your WAN optimization appliance can often costs thousands per week.
  5. The good news is that optimization companies will normally allow you to try an appliance before you buy. Make sure you take the time to manage the equipment with your own internal techs or IT consultant to get an idea of how it will fit into your network.  The honeymoon with new equipment (supported by a well trained pre-sales team) can be short lived. After the free pre-sale support has expired, you will be on your own.

There are certainly times when WAN optimization makes sense, yet it many cases, what appears to be a no-brainer decision at first will begin to be called into question as costs mount down the line. Hopefully these five contributing factors will paint a clearer picture of what to expect.

Created by APconnections, the NetEqualizer is a plug-and-play bandwidth control and WAN/Internet optimization appliance that is flexible and scalable. When the network is congested, NetEqualizer’s unique “behavior shaping” technology dynamically and automatically gives priority to latency sensitive applications, such as VoIP and email. Click here for a full price list.

ROI calculator for Bandwidth Controllers


Is your commercial Internet link getting full ? Are you evaluating whether to increase the size of your existing internet pipe and trying to do a cost trade off on investing in an optimization solution? If you answered yes to either of these questions then you’ll find the rest of this post useful.

To get started, we assume you are somewhat familiar with the NetEqualizer’s automated fairness and behavior based shaping.

To learn more about NetEqualizer behavior based shaping  we suggest our  NetEqualizer FAQ.

Below are the criteria we used for our cost analysis.

1) It was based on feedback from numerous customers (different verticals) over the previous six years.

2) In keeping with our policies we used average and not best case scenarios of savings.
3) Our Scenario is applicable to any private business or public operator that administers a shared Internet Link with 50 or more users

4) For our example  we will assume a 10 megabit trunk at a cost of $1500 per month.

ROI savings #1 Extending the number of users you can support.

NetEqualizer Equalizing and fairness typically extends the number of users that can share a trunk by making better use of the available bandwidth in a time period. Bandwidth can be stretched from 10 to 30 percent:

savings $150 to $450 per month

ROI savings #2 Reducing support calls caused by peak period brownouts.

We conservatively assume a brownout once a month caused by general network overload. With a transient brownout scenario you will likely spend debug time  trying to find the root cause. For example, a bad DNS server could the problem, or your upstream provider may have an issue. A brownout  may be caused by simple congestion .   Assuming you dispatch staff time to trouble shoot a congestion problem once a month and at an overhead  from 1 to 3 hours. Savings would be $300 per month in staff hours.

ROI savings #3 No recurring costs with your NetEqualizer.

Since the NetEqualizer uses behavior based shaping your license is essentially good for the life of the unit. Layer 7 based protocol shapers must be updated at least once a year.  Savings $100 to $500 per month

The total

The cost of a NetEqualizer unit for a 10 meg circuit runs around $3000, the low estimate for savings per month is around $500 per month.

In our scenario the ROI is very conservatively 6 months.

Note: Commercial Internet links supported by NetEqualizer include T1,E1,DS3,OC3,T3, Fiber, 1 gig and more

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