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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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what drives tco
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
What Drives TCO in Security?
  • Vendors produce in-secure applications
  • Vulnerabilities proliferate
  • Business processes depend on applications
  • System availability drives profit
components to consider
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
how to reduce tco
How to Reduce TCO?
  • Simplify Infrastructure (KISS)
  • Upgrade Infrastructure When Timing is Right
  • Minimize Labor Intensive Activities
  • Consider Remote Management
  • Know Your Assessment Parameters
slide6

Option 3

Option 2

Option 1

HIGH

Budget Line

T

C

O

Acceptable Risk

Ideal Soln

LOW

HIGH

LOW

Security Risk

evaluating the options
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
evaluating architectures
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?

option 1 screening router
Option 1: Screening Router

Internet

Screening Router

option 2 dual homed host
Option 2: Dual-homed Host

Dual-homed host Architecture

Internet

Dual-homed host

option 3 bastion host
Option 3: Bastion Host

Screened host Architecture

Internet

X

Screening Router

Bastion

Host

option 4 screened subnet
Option 4: Screened Subnet

Screened subnet Architecture—aka DMZ

Internet

FIREWALL

Exterior Router

Perimeter Network

Interior Router

Internal Network

assumptions
Assumptions
  • Cost of Router: $3000
  • Cost of Firewall: $5000
  • Cost of Security Administrator--$75K/year
  • Managed Security Service Provider(MSSP)--$24K/year
things to consider
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?
difficulties with roi
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
option cost in house
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)
option cost mssp
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)
summary
Summary
  • What Drives TCO?
  • Reducing TCO
  • Option Analysis
  • Assumptions and Considerations
  • Difficulties with ROI