Turn a Liability Into an Asset

Most IT equipment is replaced every 3-5 years, though today's economy has forced many organizations to delay this and continue using technology that has long been surpassed.

Unfortunately, obsolete and inefficient access points continue to drain cash and productivity even after they are fully paid for. They suffer from:

• Complex channel planning
  The power settings and channel assignments of each access point need to be recalculated every time an AP is added or moved, resulting in a rippling effect of changes that cascade through the network. In contrast, the fourth-generation architecture with Virtual Cell lets all APs use the same channel.
   
• Inefficient use of resources
  To reduce interference, legacy access points need to have their output power turned down, reducing coverage area and signal strength while increasing the number of APs needed. With Wireless LAN Virtualization, all APs can transmit at full power so around 30% fewer are needed.
   
• Costly, Complex Troubleshooting
  Because they try to adapt to a constantly changing radio environment, there is no way to keep track of every change that occurs in a microcell network. Helpdesk staff can waste hours trying to recreate the cause of a problem. With Wireless LAN Virtualization, the network controls the radio environment, not the other way round. All events are recorded and IT managers can easily rewind the network to any state in the past.
   

With the Cash For Clunkers program, Meru is making it even more cost-effective to upgrade. In addition to the ongoing savings from reduced management time and increased user productivity, participants get upfront cash savings.

Second-Generation Example: save $40,000 now

A manufacturing company bought two hundred 802.11b access points in 2002 to cover some areas of its warehouses and factories. They were initially useful to support barcode scanners and some networked applications, but are now insufficient for location tracking, 802.11-based active RFID and voice over WLAN applications. They also lack support for WPA2 security.

Assuming a four-year replacement cycle, the access points were fully depreciated by 2005. Obsolete, their value now is zero. But thanks to Meru's stimulus package, they be traded in for $40,000 cash when upgrading to 802.11n and Wireless LAN Virtualization.

Table 1: Depreciation Calculation for Fat Access Points
Year		Value
2002	200 fat APs at $500 each	$100,000
2003	Depreciated value, year 1	$75,000
2004	Depreciated value, year 2	$55,000
2005	Depreciated value, year 3	$25,000
2006	Depreciated value, year 4	$0
	Trade-in value: 200 x $200	$40,000

Third-Generation Example: save $80,000 now

A University bought four hundred 802.11a/g access points in 2005, covering many of its dormitories and classrooms so that students could bring their laptops to college. But with students now bringing new kinds of devices like iPhones or games consoles and many professors posting their lectures as video streams, the network no longer offers enough capacity and frequently disconnects users while roaming.

Assuming a four-year replacement cycle, the University's APs are now fully depreciated and represent a sunk cost. But with Meru's Cash For Clunkers program, they be traded in for $80,000 when upgrading to 802.11n and Wireless LAN Virtualization.

Table 2: Depreciation Calculation for Thin Access Points
Year		Value
2005	400 thin APs at $1000 each	$400,000
2006	Depreciated value, year 1	$300,000
2007	Depreciated value, year 2	$200,000
2008	Depreciated value, year 3	$100,00
2009	Depreciated value, year 4	$0
	Trade-in value: 400 x $200	$80,000

I want to save money! Email info@primary-systems.com to see if you qualify.