A Cost - Benefit Analysis.

Question

Do I have any benefit setting up a cache scenario?

Assumptions

Provider A is a large ISP, serving its clients with a high-speed leased line, which has running costs of $450.000 per year. About 64% of total traffic accounts to HTTP traffic. Running costs for the leased line per year for ISP A = $450.000. 64% of total traffic accounts to HTTP = $450.000 x 0,64 = $288.000.

Calculation

Initial costs and deployment of this cache cluster = $50.000. Annual support contract for this cluster = $10.000. Total investment first year = $60.000. Assuming a minimum HTTP bandwidth savings with CacheMARA of 35% leads to a minimum annual costs saved = 35% of $288.000 = $100.800.

Benefit first year

= Annual costs saved - total investment first year = $100.800 - $60.000 = $40.800

Benefit following years

= Annual costs saved - support contract costs = $100.800 - $10.000 = $90.800

Benefit after 3 years

= Benefit first year + 2 * benefit following years = $40.800 + 2 * $90.800 = $222.400

In this business case, ISP A has a benefit of $40.800 in year one by introducing a cache cluster, plus $90.800 in each year that follows. This results in a total benefit of $222.400 after 3 years. By using CacheMARA the ISP also benefits from its large number of great features, enabling the ISP to provide high quality service while keeping costs down and perform better than competitors.