CapEx and OpEx

Capital Expenditure on a network has many dependencies. The choices your company makes here will affect the operating expenses down the road. Are you planning for future innovation in the telecommunication space so that your network can handle faster speeds? Are you preparing your office to handle new employees with extra jacks and wireless access points throughout your facility/campus? Do you want to power your devices via the network?

Choosing a more recent iteration of the Ethernet cable (6 or 6a) or fiber optics can ensure that you will not need to spend money well into the future on replacing your network. You may just have tweaks (adds, moves, & changes) as your company grows. This would amount to some of the operating expense.

You can also spend more upfront to switch to Power over Ethernet (PoE) for some of your devices. Security cameras, phones, Wireless Access Points (WAP), intercoms, and other devices can be added to your network and be powered by Ethernet cabling rather than Alternating Current (AC). This would reduce your operating expenses as you would spend less on power. You would also reduce operating expenses by switching to a Voice over IP (VoIP) system, significantly reducing your phone bill.

Additionally, all cabling is tested when termination is completed and once successfully tested your structured cabling contractor can provide you with a manufacturer’s extended warranty, ensuring that you don’t have to sink more money into upgrading your network for a significant amount of time.

Upgrading your network can be a win-win for you – with a one-time CapEx cost that prolongs your network’s useful life and reduces operating expenses.