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Farpoint Group White Paper – April 2010 
Spectral Assurance Total Cost of Ownership 
 
assurance is thus only a very small percentage of the overall capital cost of any given 
installation, and this percentage declines with overall scope. But the CapEx of CIM will 
often be much higher than that required in the WAM case, which involves only a 
notebook and an inexpensive spectrum analyzer tool. 
 
On the operating expense side, recall how the walking around model is fundamentally 
labor-intensive, and often of indeterminate scope and thus of indeterminate cost. It can be 
quite frustrating to hunt down intermittent sources of interference (we have significant 
direct experience with this kind of work!), and being in the right place at the right time 
can never be guaranteed. The CIM strategy eliminates almost all of these costs, and thus 
we expect to see overall TCO benefit from centralization. 
 
As we noted above, equally important, but much more difficult to quantify, are a broad 
range of potential opportunity costs associated with failures in the network. These can 
include lost productivity in the event of user-visible problems or wholesale downtime, as 
well as potential consequential costs, including legal and other regulatory violations and 
their potentially enormous impacts, the fallout from security breaches and related failures, 
and lost prestige, customer confidence, and business that can result from customer-facing 
service problems arising from network failures. Even degraded throughput can factor in 
here, if such affects the responsiveness of the enterprise. As most businesses are today 
heavily dependent upon the corporate LAN (wired and wireless) for essential operations, 
it makes sense to implement improvements in reliability – like centralized spectrum 
assurance – that contribute to the reliability and performance required to avoid these 
potential consequential opportunity costs. The network is, after all, a tool to optimize the 
productivity of the organization. Assuring its efficient operation no matter what the 
challenge is essential, again why we believe that SA functionality is essential in all 
enterprise-class WLAN installations. The TCO differential between any form of spectral 
assurance and no spectral assurance capability whatsoever are the large opportunity or 
insurance costs associated with all of the exposures noted above. Quantifying these will 
depend upon the specifics of a given installation and industry, but they can clearly be 
very large indeed. The analysis we will thus focus on below will be limited to a 
comparison of the costs of an infrastructure-based spectral assurance vs. the walking-
around model. 
 
 
TCO of Spectral Assurance Solutions: An Example 
 
While the specifics of any given installation can vary, Farpoint Group, in consultation 
with Cisco Systems, has developed a general TCO model (See Table 1) for the 
deployment of spectral assurance capabilities in the enterprise. In this model we consider 
three specific scenarios: the walking-around model (WAM), as discussed above, and two 
variants on the centralized/infrastructure model (CIM). The first of these is a partial 
(sometimes called an “overlay”) strategy, which might be used in the case of an existing 
deployment, and which is implemented via the addition of some number of spectrally-
enabled APs, in this case the Cisco 3500 series. This type of deployment can provide 
continuous monitoring and the location of interferers, the latter enabled via Cisco’s