In some of our other blog posts, we’ve talked about performance, security, customer support and flexibility concerns that organizations considering SD-WAN are faced with. But the bottom line matters too. Enter the SD-WAN ROI calculator. Because even if you’re completely satisfied with the performance of your SD-WAN networking solution, if there return on investment isn’t there, the benefits mean very little.
SD-WAN is Widely Accepted
SD-WAN has joined the mainstream. No longer a novel networking solution for early adopters, the technology has gained widespread acceptance in the enterprise world. A 2019 study by IDG shows 90% of IT decision-makers have either adopted an SD-WAN solution or are actively researching the technology.
If you’re not seriously looking at SD-WAN as a networking solution, you risk falling behind.
Typically, SD-WAN pricing models available today are overly complex and offer little in the way of relief from traditional telecom tiered bandwidth pricing models. SD-WAN is supposed to simplify. But many offerings fail to deliver on that promise and fall short of offering the cost-relief that customers are seeking. An SD-WAN ROI calculator is the best way to ensure you leverage all the benefits the technology has to offer.
Calculating the ROI of SD-WAN
I’ve spoken to many clients over recent months about SD-WAN pricing models they were offered that utterly perplexed them. Their stories all bear a striking similarity.
- Contact the potential vendor for a quote
- Receive a pricing formula that requires a degree in statistics to calculate monthly payments
So how do enterprises determine if SD-WAN is right for them — not just strategically, but fiscally? Is there such a thing as an SD-WAN ROI calculator?
Tierzero Sales VP Mike Gach, one of our partners summed it all up for me in a recent conversation. A flat-rate model makes calculating the ROI of SD-WAN simple and straightforward. All the other stuff he’s seen from providers? “It’s super confusing.”
A Simple, Scalable Pricing Model
That idea is the foundation of the pricing model we’ve chosen to use at Multapplied. Our model is based on a flat-rate monthly subscription, calculated using a per-site or per-port fee partners can scale up or down on a monthly basis, depending on customer base growth.
With a flat-rate pricing model, the need for a complex SD-WAN ROI calculator vanishes. And you get a lot of benefits in its place:
Fulfillment of the Promise of SD-WAN
The goal of SD-WAN was the free organizations from the restrictions of proprietary hardware, software, and networks. Advances in processing speeds, software development, and the growth of the Cloud services industry have led many enterprises — including giants like Google and Facebook — to embrace the flexibility and affordability SD-WAN offers.
But somewhere along the way, SD-WAN services providers fell back into old habits. They went off-script and reverted to pricing associated with standard networking and telecom models. As a result, achieving an ROI with SD-WAN has become increasingly difficult. Enterprises are finding themselves:
- Investing in a traditional proprietary network
- Purchasing traditional proprietary hardware
- Paying traditional proprietary prices
Freedom to Bring Your Own Hardware
SD-WAN ROI calculators became massively complex when service providers reverted to old pricing strategies. Many vendors now require the purchase of proprietary hardware to gain SD-WAN services. (And in many cases, the hardware is a basic white-box platform that has had a custom faceplate and some software added to boost the sticker price.)
But proprietary hardware requirements don’t just inflate the cost of implementing SD-WAN for the end customer.
They go completely against the principle of a “software-defined” offering.
Not only are you locked into that vendor’s infrastructure, but you also have less control. You’re paying for a “software-defined-hardware-based” environment.Good SD-WAN solutions are hardware-agnostic.
Providers let you buy or build your own boxes based on your own specifications — meaning you control the solution. Any branding your end-users see is your own.
Flat Rate Subscription Pricing
Which would you prefer? A complex pricing model filled with variables that requires an SD-WAN ROI calculator to work out what you’ll pay each month, or a simple, flat-rate solution? It seems like a pretty simple choice.
Choose a provider that offers a subscription-based monthly price that isn’t dependent on the bandwidth or features you use. You’ll know month-to-month exactly what price you’ll pay — which allows you to easily:
- Set customer prices and margins
- Eliminate surprise charges
- Manage costs
- Easily calculate the ROI of SD-WAN
This model makes it easy to serve customers and predict growth. When you onboard a new client, costs start when they come online. Should a customer leave or reduce the number of sites they have with you, your costs decrease accordingly.
You Don’t Need an SD-WAN ROI Calculator
A network services provider should make running your business simpler, not more complicated. If you’re considering an SD-WAN solution, find a partner that clearly outlines the upfront and ongoing costs of implementing SD-WAN.
Multapplied Networks is an established market leader, offering SD-WAN solutions for service providers of all sizes. If you’d like to learn more about our products or services, or need help finding the right solution, we can help. Get in touch with us today.