Famous Cisco CCIE Emeritus predicts switch hardware price plunge of -70%
"An L2-Tree based network design does a brilliant job of transferring wealth from your company to a network vendor. The upfront capitalisation means you transfer your company profits to a supplier ahead of revenue or value extraction."
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Earlier today famous Cisco CCIE Emeritus Greg Ferro predicted:
"Networking equipment is expected to get cheaper over the next five years. The cost of silicon and increase in the manufacturing base through the arrival of whitebox Ethernet and merchant silicon means that costs of switch hardware are set to fall dramatically. Predictions vary but 30-70% savings over 5 years is a practical guess. Therefore, it is much better to spend less capital and take advantage of cheaper products in the years ahead. I'm suggesting that a $1MM dollar hardware purchase today is likely to $500K in 3 to 5 years. (Note that you probably won't save $500K, it will be spent on licenses for networking orchestration).
"An L2-Tree based network design does a brilliant job of transferring wealth from your company to a network vendor. The upfront capitalisation means you transfer your company profits to a supplier ahead of revenue or value extraction.
"Vendor maintenance on big switch chassis starts on day one, even when you use just one port. Over 5 years, vendor maintenance will exceed the cost of the purchase."
