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FlexTCA Financial Value Proposition

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FlexTCA Financial Value Proposition

It is natural to assume that buying a telecom system is more expensive than developing one in-house – but this is not necessarily true. The Make vs. Buy decision is not just about purchase price and operating expense, but about profitability over the entire product lifecycle.

Our research indicates that it takes about 3 years for a TEM to build a complete system in-house, 2 years to integrate COTS building blocks, and only 1 year to create and deploy an application on a fully-integrated system like FlexTCA -- or much less if the application already exists. Big differences.

Time has value, and experience shows that getting to market 6, 12, or 24 months sooner generates tremendous strategic and financial advantage, especially for Tier 2 and Tier 3 TEMs. Victory goes to the swift.


Integration Is Hard

Many TEMs miscalculate that it should be easy and fast to integrate COTS building blocks for their platform – but time after time, the lesson is re-learned that integration of standards-based components is not simply a matter of "plug and play". Far from it.

When factoring in direct and indirect costs, core competencies, organizational focus, and the value of delivering a product early in the available market window, one can see why sourcing an entire system is actually quite smart. Enter FlexTCA.


Systems Make Sense

The customer who focuses solely on application development while outsourcing the rest of the system needs fewer in-house resources for platform R&D, supply chain management, interoperability and regression testing, etc. Since those people cost money, project profitability (operating margin) can be higher with system sourcing.

Our detailed financial modeling shows that TEMs can cut product delivery timeframes in half while achieving up to 50% increase in product lifetime Return on Investment (ROI). Please contact us for access to this valuable interactive tool, which enables the input of relevant operating assumptions to see why FlexTCA can make sense for you too.


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