The Economic Benefits of Automating Capacity Optimization in IP Networks

As network links grow from 100GE to 400GE and larger it is becoming more important to use autonomous capacity optimization to optimize network link capacity. Links that are underutilized can support more traffic; links that are over utilization should support less traffic. In this paper we present a solution to this problem using the Juniper Networks Paragon Automation. Peter Fetterolf presents the results of an ACG business model that compares two scenarios:

  • With Paragon Automation
  • Using brute-force capacity management

The total cost of ownership and return on investment  model compares the capital expense and operations expenses of a hypothetical network and shows significant savings using a PCE to optimize traffic engineering. The cost of network bandwidth is exceedingly high such that TCO savings in optimizing the network pay for Paragon Automation many times over. Our results show an overall TCO savings of 27%. We also show that even a minor increase in average network utilization of 0.5% will pay for the total cost of the investment in Paragon Automation.

Contact Peter Fetterolf  at pfetterolf@acgcc.com to discuss this paper or to develop a business model of your product.

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