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Lesson 15 Total Cost of Ownership

Lesson 15 Total Cost of Ownership. What Drives TCO?. Networks Grow in Size and Complexity Scope of Operations Increases Skilled IT labor grows scarce New applications require new solutions. What Drives TCO in Security?. Vendors produce in-secure applications Vulnerabilities proliferate

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Lesson 15 Total Cost of Ownership

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  1. Lesson 15 Total Cost of Ownership

  2. What Drives TCO? • Networks Grow in Size and Complexity • Scope of Operations Increases • Skilled IT labor grows scarce • New applications require new solutions

  3. What Drives TCO in Security? • Vendors produce in-secure applications • Vulnerabilities proliferate • Business processes depend on applications • System availability drives profit

  4. Components to Consider • Initial Cost of Product (25% of life cycle) • Vendor Support Services • Deployment Services • Time for Staff to Install and Configure • Training Cost • Post Deployment Support

  5. How to Reduce TCO? • Simplify Infrastructure (KISS) • Upgrade Infrastructure When Timing is Right • Minimize Labor Intensive Activities • Consider Remote Management • Know Your Assessment Parameters

  6. Option 3 Option 2 Option 1 HIGH Budget Line T C O Acceptable Risk Ideal Soln LOW HIGH LOW Security Risk

  7. Evaluating the Options • Option 1 • FIREWALL At Gateway Only • Option 2 • DMZ Firewall Architecture • Anti Virus Software on all DMZ machines • Option 3 • DMZ, AV S/W on DMZ Machines • VPN Access to all DMZ Machines • AV S/W and Firewalls on all Clients

  8. Evaluating Architectures • Option 1 - Screening Router • Option 2 - Dual Homed Host • Option 3 - Bastion Host • Option 4 – Screened subnet (DMZ) Which one cost more relative to risk?

  9. Option 1: Screening Router Internet Screening Router

  10. Option 2: Dual-homed Host Dual-homed host Architecture Internet Dual-homed host

  11. Option 3: Bastion Host Screened host Architecture Internet X Screening Router Bastion Host

  12. Option 4: Screened Subnet Screened subnet Architecture—aka DMZ Internet FIREWALL Exterior Router Perimeter Network Interior Router Internal Network

  13. Assumptions • Cost of Router: $3000 • Cost of Firewall: $5000 • Cost of Security Administrator--$75K/year • Managed Security Service Provider(MSSP)--$24K/year

  14. Things to Consider • Which Option Would You Choose? • Is cost the only driver? • Could You Determine TCO for the different architectures? • Given a Set of Devices Could You Compute TCO?

  15. Difficulties with ROI • Investment decisions based on ability to demonstrate positive ROI • ROI traditionally difficult to quantify for network security devices • Difficult to calculate risk accurately due to subjectivity involved with quantification • Business-relevant statistics regarding security incidents not always available for consideration in analyzing risk

  16. Option Cost—In-house • Manpower cost constant: $75K • Option 1 - Screening Router: $78K • HW Cost: $3K (cost of 1 router) • Option 2 - Dual Homed Host: $80K • HW Cost: $5K (FW cost) • Option 3 - Bastion Host: $83K • HW cost: $8000 (router + FW) • Option 4 – Screened subnet (DMZ): $86K • HW cost: $11000 (2 routers + FW)

  17. Option Cost—MSSP • Manpower cost constant: $24K • Option 1 - Screening Router: $27K • HW Cost: $3K (cost of 1 router) • Option 2 - Dual Homed Host: $29k • HW Cost: $5K (FW cost) • Option 3 - Bastion Host: $32K • HW cost: $8000 (router + FW) • Option 4 – Screened subnet (DMZ): $35K • HW cost: $11000 (2 routers + FW)

  18. Summary • What Drives TCO? • Reducing TCO • Option Analysis • Assumptions and Considerations • Difficulties with ROI

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