Network World
Thursday, January 8, 2009
DNSstuff.com
Get information about your IP
IP Information
50+ On-demand DNS and network tools

Michael Morris: From the Field

Cisco Subnet

Navigation

Ok, the Economy is Bad, Some Cost Savings Tips

I wrote a blog back in August about how the economy wasn't that bad and good jobs were available. Well, I'm going to have to revise that comment....the economy is bad and will probably get worse.

As everyone knows, in September and October we saw the banking and credit crisis, a 3,000 point drop in the Dow, and the beginning of layoffs, even in IT.

Companies have frozen budgets, stopped hiring, and initiated massive cost savings projects. So, here are some cost savings tips and projects that we are working on now.



Start a Capacity Management Program
Before you can do anything, you need to know what you have. Metrics will be key in a tight economy to justify would you do need and to identify what you can get rid of. There are plenty of free, open-source tools out there to do what you need. It will just take some labor time to install, develop, and implement this software. But, the first step is a good Capacity Management policy and plan.



Circuit Reductions
Telecom costs are one of the largest OPEX expenses to a business. Let's be honest; are you really using all that bandwidth? Or did you overprovision circuits to be sure there was enough room for the future? Cut some bandwidth. If users complain, be sure to ask them what applications are slow. Is it Oracle and SAP, or YouTube? Use your Capacity Management program to justify the reductions.



Consider Using Burstable Circuits to Reduce Costs



Implement QoS
If you are going to cut bandwidth, then you should have a good QoS policy and design to protect key applications. In can be hard to pick which applications should be at the top, so I'll give you a simple, 5-level QoS policy:

  1. VoIP
  2. Sales Applications and Customer Support Applications
  3. Video Conferencing
  4. All Other Internal Applications
  5. Internet, UDP, and Backup Traffic

A real simple policy that most businesses can easily understand. Voice is at the top because it has to be. Critical applications come next because revenue and customers are more important than video. The rest is self-explanatory.



Make Your Routing Protocols Dynamic
Many companies are forced to buy two Internet circuits at offices because their routing protocols are not fully dynamic. Routing protocols are FREE, you just have to design them. Take the time to make your routing protocols fully dynamic and then get rid of an Internet circuit at each site.



Don't Buy GIG Ports for Users
They don't need it!



Start Using VMware
Seriously! It's not that hard. With all those open source capacity management applications you'll be installing, you won't want to put each of them on a server and waste money, power, cooling, and DC space. Get one server, load ESX on it, and run all your applications on a single server, each in its own VM. Encourage other people to use virtual machines too, particularly with other network tools and applications.



Use Internal Conference Call Systems
If you're like most companies, you love meetings...and with a global workforce, that means meetings via teleconference. Too bad these conferences calls via external teleconference services can get pricey, fast. We estimated a one hour call with 5 participants was $57. Now multiply that by the number of meetings that occur each day. You can cut all this out by using the conference button your phone, a simple internal conferencing system like Cisco's Meet-Me, or a more robust internal conferencing system (this one may take some investment, so do a good ROI first).

Just make sure your capacity management program is tracking your VoIP usage, DSP usage, and call volume. You don't want to anger your users and have them revert back to the external (costly) conferencing provider.



Use Tail-End-Hop-Off
Especially for international calls. You can save a lot by using your IP network to deliver a call to the PSTN in the country to which the call is destined instead of making an international PSTN call.


Good luck out there. I know times are tight.


More >From the Field blog entries:

Want to Make Your Network Faster?? Use Google Chrome

Is Comcast's Usage Cap Really That Bad?

Cisco's Arrogance Bugs Me Again

It's One of Those Opinionated Days (Again)

CCIE Wireless

Your Team Organization is Just as Important as Your Standards

  Go to Cisco Subnet for more Cisco news, blogs, discussion forums, security alerts, book giveaways, and more.

Nice points!

Useful answer?
0

Here are some rather obvious ways of saving on maintenance that Cisco isn't fond of, but thought I might mention it here:

Right size network devices specifically chassis based switches. For example the annual maint. costs on a 6513 vs. a 6504 can add up quickly, don't standardize on one chassis type (yes Cisco charges per slot). I have seen time and time again Cisco resellers always use the same chassis. 6509s with empty slots abound, I have seen in so many cases people will put in a 6509 for a core or dist based on them feeling that eventually they will need the capacity (use a 6504). So that is fine but the cost of replacing the chassis pays for itself rather quickly when looking at the wasted maint. costs.

When looking to purchase don't buy the latest and greatest unless its absolutely warranted. Don't by a 3560 or 3750 where a 2960 funtioning as a L2 access device will suffice. The 2960s and 3750gs come with a free HW/SW limited lifetime warranty, take advantage of such offerings.

Looking at a savings of 900k in Maint. for 2009, this stuff can add up quickly so plan ahead. :-)

Happy New Year!

RE: Nice Points

Useful answer?
0

To add to one of the points above buy only gig were you need it, uses don't need it. The same goes for PoE and 10gig uplinks, do it were utilization warrants.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Post new comment

The content of this field is kept private and will not be shown publicly.
  • Allowed HTML tags: <a> <em> <strong> <i> <b> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd> <blockquote> <br /> <br> <p>
  • Lines and paragraphs break automatically.
  • You can use BBCode tags in the text.
  • Web page addresses and e-mail addresses turn into links automatically.

More information about formatting options

CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

About Michael Morris

Michael Morris is a communications engineering manager at a $3-billion high-tech company. His background is in enterprise WANs working with telcos and developing large-scale routing designs. He has worked on networks at government and corporate organizations, including networks at two Fortune 10 companies. In his current role, he leads a team of 10 engineers responsible for large-scale IT networking projects and architectural standards for data networks, storage area networks, IP telephony, contact centers, and security. Michael is CCIE #11733 and recently became one of the first three Cisco Certified Design Experts (CCDE) ever (#20080002). He has 11 years experience in networking and communications, including four years as a paratrooper in the U.S. Army. He has a bachelor's degree in MIS from the University at Buffalo and is working on his MBA from NC State University. In 2008, he was awarded the Network Professional Association (NPA) Professional Excellence and Innovation Award for his work on network architecture, templates and enterprise MPLS design.

Contact him.

RSS feed XML feed

From the Field archive.

Cisco Subnet / RSS feed Cisco news RSS

The opinions expressed in this Weblog are those of the writer and may not represent the opinions of Network World.

Advertisement: