Must-See for Optical Cable Procurement: How to Evaluate Total Cost of Ownership (TCO)?

When purchasing optical cables, many enterprises often only focus on the purchase unit price and ignore the subsequent costs such as deployment, operation and maintenance, and upgrades, leading to the dilemma of "low-cost purchase and high-cost maintenance". In fact, the value of optical cables needs to be evaluated from the perspective of Total Cost of Ownership (TCO). Only by comprehensively considering the costs of various links can the most economical procurement decision be made.

Total cost of ownership includes four core parts: procurement cost, deployment cost, operation and maintenance and upgrade cost, and risk cost. Procurement cost is the foundation, but it is not the lower the better. Although high-quality optical cables have a slightly higher purchase unit price, their performance is more stable and there are fewer subsequent faults. Deployment cost is closely related to the optical cable structure. Lightweight optical cables save more labor costs than heavy-duty optical cables. Operation and maintenance and upgrade costs are the key. Optical cables with sufficient reserved redundant cores can avoid secondary construction for future expansion, and the cost of secondary construction is usually 5-10 times the price of optical cable materials. Risk costs are easily overlooked. Using optical cables that do not meet fire protection and environmental protection standards may bring potential safety hazards, and the potential losses are immeasurable. A detailed cost model should be established during evaluation, and comprehensive analysis should be carried out in combination with project cycle, application scenarios, upgrade needs and other factors.

The core of optical cable procurement is not to "choose the cheapest one", but to "choose the most cost-effective one". Evaluating from the perspective of total cost of ownership can maximize long-term benefits.