TOTAL COST
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  • 1. TOTAL COST OF OWNERSHIP OF PANDA MANAGED OFFICE PROTECTION Learn how a SaaS Endpoint Security Solution reduces Operating Costs www.pandasecurity.com
  • 2. TOTAL COST OF OWNERSHIP OF PANDA MANAGED OFFICE PROTECTION Pag. 1 1. Executive Summary SaaS vs. Traditional Endpoint Security Solutions. Licenses and Operating Costs. Operating costs Licenses PMOP Vendor 1 First year Second year Third year Vendor 2 Vendor 3 B usinesses of all sizes today are increa­ In order to address these challenges, new singly dependent on their IT systems Software-as-a-Service (SaaS) solutions are to run their operations and, as a re­ emerging which can replace or extend the sult, they have become more sensitive to capabilities of traditional, on-premise pro­ vulnerabilities and other IT security concer­ ducts. In particular, SaaS management so­ ns. Add to that the increasing mobility of lutions for desktop anti-malware, such as the workforce and the inherent difficulties Panda Managed Office Protection (PMOP), in managing roaming devices, and what can be leveraged at anytime, from any we have is a scenario in which the manage­ Web browser, providing simple, easy-to- ment of security operations becomes ever use management of anti-malware and per­ more complex, costly and sophisticated. In sonal firewall protection. fact, many IT system failures and downti­ mes are caused by human errors due to the The first benefit of a SaaS solution like manual nature of managing traditional, on- PMOP, when compared to traditional anti- premises IT management solutions. To malware protection for desktops, is the ab­ make matters worse, according to Gartner, sence of upfront investments to implement IT security staff are the most difficult to it. Traditional protection for desktops requi­ find and retain for SMBs1 , which represent res on-premises hardware and software in­ the majority of the businesses today. vestment (administration servers, repository
  • 3. TOTAL COST OF OWNERSHIP OF PANDA MANAGED OFFICE PROTECTION Pag. 2 servers, databases), introducing additional in hardware suffered during the past few points of failure, added vulnerabilities and years. In the case of PMOP, channel part­ recurring maintenance and upgrading ners can leverage a purpose-built “Partner costs. a SaaS desktop anti-malware solu­ Console”, which allows them to efficiently tion, on the contrary, hosts all the manage­ manage the security solution across multi­ ment infrastructure within the vendor’s in­ ple customers, from one single Web conso­ frastructure. The savings in this regard will le, remotely, and without requiring any be greater, the more distributed the envi­ hardware or software investment either. ronment is (usually each location in a distri­ Thus, SMBs have now the opportunity to buted environment requires at least one outsource the management functions to server in the on-premises model). Conside­ the channel partner (an MSSP). ring an average implementation of an anti- malware solution in a medium-sized busi­ Finally, a third benefit consists of the natu­ ness, the savings generated by a SaaS- ral suitability of the SaaS approach in dea­ based solution could reach 50% of the ling with an increasingly mobile workforce. total costs. Today, controlling and managing travelling employees with laptops is a source of con­ A second important benefit of a SaaS solu­ cern for administrators. With a solution tion is that it enables the channel to provi­ like PMOP, an administrator (or the MSSP) de value-added services to end-users, so­ can remotely monitor and configure the mething many of them are actively anti-malware and personal firewall protec­ searching for, trying to regain the profitabi­ tions in laptops, regardless of their location lity they lost due to the shrinking margins or the type of Internet connection. 1. Factors SMBs Should Consider When making an MSSP Selection”. Gartner Research. Nov. 8, 2007.
  • 4. TOTAL COST OF OWNERSHIP OF PANDA MANAGED OFFICE PROTECTION Pag. 3 2. Cost Drivers in the TCO Analysis W hat are the cost drivers that com­ launch is a significant cost associated panies need to look at when with deploying a traditional security completing a TCO analysis?2 solution. · Server and network capabilities must 2.1 Capital expenses 3 be reassessed and augmented. Traditional Security Solutions. · Server hardware, operating systems Upgrades to other security solutions that and applications have to be evalua­ may be required bring additional capital ex­ ted for compatibility with the selec­ pense. Software and hardware, network in­ ted security solution and upgraded if frastructure enhancements, monitoring and necessary. testing tools, supplies, facilities and other re­ quired infrastructure are part of the typical · System testing and tuning are neces­ capital acquisition expenditure. This capital sary to make sure performance is ac­ expense is an up-front cash outlay. ceptable for launch. SaaS Security Solutions. · Training for IT staff will be required. With SaaS, there are no perpetual software licenses to buy. The nature of SaaS is that · Launch activities, awareness and pi­ you pay for what you use. SaaS models lots all require IT resources. allow a recurring cost structure. You pay a monthly or annual service fee for as long as SaaS Security Solutions. you use the service. This service fee inclu­ SaaS security solutions can be deployed des maintenance, support, updates and and put into production much faster and upgrades and is inclusive of all hardware, for a fraction of the cost compared to a networking, storage, database, administra­ traditional software solution. tion and other costs associated with SaaS delivery. This is very important when the opportuni­ ty costs of getting the application out are high. On the flip side, because a SaaS secu­ rity solution is a multi-tenant application, 2.2 Design and there are less ways to customize the appli­ deployment costs4 cation to fit the business architecture. Traditional Security Solutions. · Staff and contract labor needed to design, integrate, test, tune and 2. Software-as-a-Service; A Comprehensive Look at the Total Cost of Ownership of Software Applications. Software & Information Industry Association. September 2006. 3. CAPEX (CAPital EXpenditures) Refers to the cost of developing a system. 4. CAPEX (CAPital EXpenditures) Refers to the cost of developing a system.
  • 5. TOTAL COST OF OWNERSHIP OF PANDA MANAGED OFFICE PROTECTION Pag. 4 2.3 Ongoing infrastructure · If the solution is new to the com­ pany, the IT organization will have to costs5 train and certify existing personnel and/or recruit new personnel with or Traditional Security Solutions. without pre-existing application · For ongoing operation, network mo­ knowledge. nitoring and management tools are often required to enable real-time · In addition, every time a patch or problem diagnosis and responsive­ upgrade needs to be deployed, addi­ ness. tional IT resources will be required. · Yearly software maintenance and su­ This is typically the biggest hidden pport contracts and system updates cost that needs to be considered and upgrades make a large contribu­ when making the decision to buy a tion to the total cost of ownership. new application. If this cost is inco­ · Scaling the infrastructure, multiple rrectly estimated, any effect on reve­ redundant systems, and add-on fea­ nue or cost reduction can greatly ture sets further increase cost. change. · Hardware repair and replacement and recurring environmental costs. · Support is the final and most critical success factor to the successful adop­ SaaS Security Solutions tion and ongoing use of a new secu­ Other than possible additional Internet rity solution: whenever there is a pro­ bandwidth needs, there are almost no in­ cremental infrastructure costs required to blem, this can lead to a loss in pro­ handle the growth of a SaaS security solu­ ductivity or in the worst case a refu­ tion, and in some cases, as with Panda Ma­ sal to use the security solution. naged Office Protection, the SaaS security solution is designed in order to avoid even SaaS Security Solutions this cost. IT organizations may also have to SaaS vendors are responsible for the end- deploy a desktop application to allow the to-end delivery of the solution and operate endpoint protection to run and communi­ the infrastructure which hosts the SaaS se­ cate with the servers hosted by the vendor. curity solution. Scaling the infrastructure and the costs as­ sociated with growth are fully the responsi­ 2.5 Intangible costs bility of the SaaS provider. While the intangible costs are harder to measure and therefore are more difficult to 2.4 Ongoing operations and include in a TCO analysis, they are no less support costs6 real. Some of the intangible cost factors that affect TCO include: Traditional Security Solutions. · IT organizations will have to allocate resources for monitoring, supporting and maintaining the security solution. 5. OPEX (OPerating EXpenditures) are the ongoing costs for running a system. 6. OPEX OPerating EXpenditures) are the ongoing costs for running a system.
  • 6. TOTAL COST OF OWNERSHIP OF PANDA MANAGED OFFICE PROTECTION Pag. 5 · Reliability and availability: Failed · Capacity: Usage and adoption within interactions mean lost employee time the enterprise is difficult to predict, and lost opportunities, and may re­ making management capacity diffi­ quire repeated efforts to persuade cult. The tradeoffs are poor perfor­ users to retry the technology with in­ mance on the one hand or creasing resistance. What service level underutilized infrastructure on the does the SaaS vendor offer and how other. With SaaS this is more easily do they compare to the internal servi­ managed when compared to an in­ ce level the IT organization offers? ternal application. · Interoperability: How easy is it to · Opportunity costs: The human re­ integrate with other applications? source and capital expenditures re­ quired by an in-house implementa­ · Extensibility: How easy is it to custo­ tion come at the expense of other mize the application to meet the projects or could possibly delay the needs of the organization? roll-out of new products and services, both of which have a direct impact · Scalability: As users’ needs grow, on the company’s bottom line. the original system may not keep up. “Busy signals” or functional limitations consume employee time and mean lost opportunities. How well can the SaaS vendor accommo­ date growth and what are the costs associated with growing the internal application? Professional Software Service Professional Service Software Hardware Figure 1: Example of a Traditional Endpoint Security Solution Figure 2: Example of Panda Managed Office Protection, cost. One site –50 seats –two years. Total Cost: 11K€. a SaaS Endpoint Security Solution, cost. One site –50 seats – two years. Total Cost: 6,5K€.
  • 7. TOTAL COST OF OWNERSHIP OF PANDA MANAGED OFFICE PROTECTION Pag. 6 3. The TCO calculation and comparison 3.1 Example 1. A single site with 50 seats T his first example concerns a medium- tion are equal to the acquisition cost. sized business with 50 workstations and servers that must be protected This example is not, however, a true like- against malware, and compares the cost of for-like comparison, as a SaaS service such three on-premise traditional security solu­ as Panda Managed Office Protection uses tions with that of using Panda Managed redundant technology to ensure continuous Office Protection, Panda Security’s SaaS se­ uptime, while an on-premise solution repre­ curity solution. sents a single point of failure. Companies wishing to implement more redundant sys­ Around two man-days should be estimated tems will need to invest in a second machi­ for implementing a traditional security solu­ ne, thus increasing the administration costs tion (installation, integration and configura­ accordingly. tion), with an additional half-day for the upgrade every year. With Panda Managed In order to simplify the analysis, we have Office Protection, this time is reduced to not considered the benefit of scalability, ex­ approximately one half-day, which is requi­ tensibility and the opportunity cost saving red to configure the solution. With an on- that a hosted service offers. premise security service, regular maintenan­ ce is limited to maintaining the configura­ The TCO analysis shown in this example de­ tion, i.e. modeling corporate security regu­ monstrates that the Panda Managed Office lations on the solution. Protection service requires €4,150 for the first year and €6,525 for two years. The tra­ As this type of solution presents considera­ ditional security solutions demand higher bly greater challenges to administrators, first-year expenses due to the management significant time for monitoring and for fur­ server and maintenance costs. ther training must also be factored in. All in all, around 6 man-days a year should be es­ Even with a conservative estimate of the timated for maintaining an on-premise tra­ cost associated for Vendor 1, Vendor 2 and ditional security solution. While with Panda Vendor 3, the company needs to spend Managed Office Protection, a SaaS security €7,189 during the first year for the traditio­ solution, no time is needed for training, nal Security Solution A, €7,315 for the So­ monitoring and administrating the server lution B and €7,663 for the Solution C. and the software, this time is therefore is reduced to around 2 man-days a year. Two-years’ expenses with Panda Managed Office Protection come to €6,525 while If we estimate the cost of a man-day at with on-premise traditional solutions ex­ €400, it becomes apparent that the admi­ penses are, €10,853, €10,867 and €13,797 nistrative costs alone for a traditional solu­ respectively.
  • 8. TOTAL COST OF OWNERSHIP OF PANDA MANAGED OFFICE PROTECTION Pag. 7 Cost Analysis Vendor 2 Vendor 1 Vendor 1 One Site - 50 seats -2 year Traditional Traditional Traditional Security Security Security Panda Managed Solution B Solution A Solution A Office Protection Initial Cost Capital Expensive Software or License costs 0€ 0€ 0€ 0€ Hardware (management server) 1.400 € 1.400 € 1.400 € 0€ Operating System (management server) 250 € 250 € 250 € 0€ Design and Deployment Costs Design and Engineering (days) 1 1 1 0 Design and Engineering (cost) 400 € 400 € 400 € 400 € Integration/Deployment (days) 1 1 1 1 Integration/Deployment (cost) 400 € 400 € 400 € 200 € Year 1 Capital Expensive Software or License costs 3.203 € 3.218 € 6.147 € 4.725 € Design and Deployment Costs Integration/Deployment (days) 1 1 1 0 Integration/Deployment (cost) 200 € 200 € 200 € 0€ Ongoing Infrastructure, Operations and Support Costs IT Staffing (days) 6 6 6 2 IT Staffing (cost) 2.400 € 2.400 € 2.400 € 800 € Year 2 Design and Deployment Costs Integration/Deployment (days) 0,5 0,5 0,5 0 Integration/Deployment (cost) 200 € 200 € 200 € 0€ Ongoing Infrastructure, Operations and Support Costs IT Staffing (days) 6 6 6 2 IT Staffing (cost) 2.400 € 2.400 € 2.400 € 800 € Total Cost (2 Years) 10.853 € 10.868 € 13.797 € 6.525 € The TCO calculation and comparison: a single site with 50 seats For one-year licenses, Panda Managed Office Protection Service is cheaper by about 42% than the traditional Security Solution A, 43% cheaper than the traditional Secu­ rity Solution B and 46% cheaper than the traditional Security Solution C. For two- year licenses, Panda Managed Office Protection is 40% cheaper than the Security So­ lution A and B and 53% cheaper than Solution C.
  • 9. TOTAL COST OF OWNERSHIP OF PANDA MANAGED OFFICE PROTECTION Pag. 8 3.2 Example 2. Three sites with 50 seats T he discrepancy between on-premise number of employees and the type of solu­ traditional security solutions and Pan­ tion. da Managed Office Protection, Panda Security’s SaaS security solution, becomes The cost of implementing an on-premise considerably clearer when we look at a traditional security solution in a company company with multiple offices. If we imagi­ with three sites is around 50% higher than ne that the 50 users from the aforementio­ supporting the same number of users at a ned example are distributed among three single location. With Panda Managed Offi­ company sites, each site will need its own ce Protection the number of locations management server, which must then be makes no difference to the service costs, as installed and maintained. these are based solely on the number of While it is certainly possible to install lower- users. The administration costs, too, remain spec systems at each location than the 50- the same, as the service can be wholly ma­ user system installed at the main office, the naged centrally from a single office. total acquisition costs still increase conside­ rably. Even with a conservative estimate of the cost associated for Vendor 1, Vendor 2 and Administration costs are also much higher Vendor 3, the company needs to spend for companies with distributed environ­ €9,774 during the first year for the traditio­ ments and multiple locations. As many ad­ nal Security Solution A, €9,900 for Solu­ ministrative tasks can, however, be perfor­ tion B and €10,248 for the Solution C. med centrally for all locations, the costs do not increase in proportion to the number of Two years’ expenses with Panda Managed installations. Support costs and costs incu­ Office Protection are €6,525, while with rred due to lost productivity remain the sa­ traditional solutions expenses are €14,703, me, as these factors depend largely on the €14,717 and €17,647 respectively.
  • 10. TOTAL COST OF OWNERSHIP OF PANDA MANAGED OFFICE PROTECTION Pag. 9 Cost Analysis Vendor 2 Vendor 1 Vendor 1 Three Sites - 50 seats -2 year Traditional Traditional Traditional Security Security Security Panda Managed Solution B Solution A Solution A Office Protection Initial Cost Capital Expensive Software or License costs 0€ 0€ 0€ 0€ Hardware (management server) 2.250 € 2.250 € 2.250 € 0€ Operating System (management server) 250 € 250 € 250 € 0€ Design and Deployment Costs Design and Engineering (days) 2 2 2 0 Design and Engineering (cost) 600 € 600 € 600 € 0€ Integration/Deployment (days) 2 2 2 1 Integration/Deployment (cost) 600 € 600 € 600 € 200 € Year 1 Capital Expensive Software or License costs 3.203 € 3.218 € 6.147 € 4.725 € Design and Deployment Costs Integration/Deployment (days) 0,8 0,8 0,8 0 Integration/Deployment (cost) 300 € 300 € 300 € 0€ Ongoing Infrastructure, Operations and Support Costs IT Staffing (days) 9 9 9 2 IT Staffing (cost) 3.600 € 3.600 € 3.600 € 800 € Year 2 Design and Deployment Costs Integration/Deployment (days) 0,8 0,8 0,8 0 Integration/Deployment (cost) 300 € 300 € 300 € 0€ Ongoing Infrastructure, Operations and Support Costs IT Staffing (days) 9 9 9 2 IT Staffing (cost) 3.600 € 3.600 € 3.600 € 800 € Total Cost (2 Years) 14.703 € 14.718 € 17.647 € 6.525 € The TCO calculation and comparison: Three sites with 50 seats For one-year licenses, Panda Managed Office Protection is about 58% cheaper than the traditional Security Solution A, and traditional Security Solution B and 60% che­ aper than the traditional Security Solution C. For two-year licenses, Panda Managed Office Protection is 56% cheaper than the Security Solution A and B and 63% che­ aper than Solution C.
  • 11. PANDA SECURITY Delegación Bilbao Delegación Barcelona Gran Vía Diego López de Haro, 4 Avda. Diagonal, 420 - 2º, 1 48001. Bilbao. ESPAÑA 08037. Barcelona. ESPAÑA Fax: 94 434 35 59 Fax: 93 458 59 00 Delegación Madrid Delegación Valencia Ronda de Poniente, 17 Doctor Zamenhof, 20 Bajo 28760. Tres Cantos. Madrid. ESPAÑA 46008. Valencia. ESPAÑA Fax: 91 804 35 29 Fax: 96 385 93 80 902 24 36 54 www.pandasecurity.com © Panda Security 2009. Todos los derechos reservados. 0209-WP-TCO www.pandasecurity.com