Impressive TOC and ROI

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The total cost of ownership (TCO) for a wireless LAN is lower than a wired LAN. For example, to install a wired LAN you might have to build cable channels, lay cables to different floors to access everyone's desk, and install switches for the cables. All of this adds substantially to a LAN's costs.

According to a recent industry study that NOP World Technology conducted on behalf of Cisco, Inc, wherein it polled more than 300 U.S.-based organizations, wireless networking has a measurable impact on return on investment (ROI). Organizations with more than 100 employees reported that they saved, on average, $164,000 annually on cabling costs and labor. Those savings do not include the financial benefits of increased productivity, which can increase an organization's return on their wireless LAN investment by even more substantial amounts.

The simple and flexible architecture of WLANs greatly reduces network management costs related to moves, adds and changes.

Figure 2.1: Per industry study conducted by NOP World Technology on behalf of Cisco, Inc. Graphic courtesy of NOP World Technology.

Wi-Fi is particularly important for fast growing organizations that may, in the near future, need a larger physical plant to accommodate their growth. If these businesses initially installed a wired LAN, a move to a larger facility would necessitate a costly new, or an additional, wired network installation. With Wi-Fi, the only additional costs are the expenses incurred for more access points to serve a larger area encompassing more users.

In short, install a wireless network and you never have to leave your networking investment behind.

Consider this: vendors such as Cisco and Agere are selling Wi-Fi technology as a way for corporations to cut costs and boost productivity. According to Cisco, the world's largest maker of wireless equipment for the enterprise, the cost of wireless gear, installation, and support comes to about $500 per year for each user, or $1 to $2 a day. Some other facts Cisco touts are as follows: assume the average corporate employee costs $100,000 to $300,000 a year in salary and benefits, a company can recoup its $500 investment by squeezing just a few extra minutes of work a day out of each one. And Larry Birenbaum, general manager of Cisco's Ethernet Access Group, has been quoted as saying, "If you believe you can increase an employee's productivity by 1 to 2 minutes a day, you've paid back the cost of wireless."

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