Lesson 15 Total Cost of Ownership - PowerPoint PPT Presentation

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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