Data Telecommunications Cost Reduction

MPLS Transition improves DCMA Technical Capabilities while reducing cost 18% -20%

CHALLENGE: With current and potential budget cuts within the Federal Government and more specifically the Department of Defense, Defense Contracts Management Agency (DCMA) was concerned with the increasing costs to operate and maintain their telecommunications environment. DCMA wanted to streamline the process of adding and changing site locations within the WAN. DCMA also wanted to take advantage of new technologies that were available, and to create a more flexible and scalable communications infrastructure to support the current and future business requirements.

SOLUTION: NES proposed to transition DCMA from the legacy point-to-point circuits to a commercially-provided MPLS cloud — a solution that would address both the budgetary and technical challenges that DCMA wanted to overcome. The solution moved DCMA away from the antiquated physical hub-and-spoke architecture to a more dynamic and robust “any-to-any” WAN architecture. This project included transitioning over 350 data circuits and supporting equipment at over 300 locations worldwide. The key business and technical drivers of the project included a complete cost benefit analysis, circuit and site inventory, bandwidth capacity planning, equipment requirements and replacement, and configuration compliancy.

RESULT: While this transition is still underway, DCMA has estimated that this transition will reduce their data telecommunications costs by roughly 18-20%. Not only will this MPLS transition provide for cost avoidance but also improve technical capabilities that DCMA did not previously experience. Circuit latency will be significantly reduced and route paths will be more dynamic with any-to-any technology — facilitating move, add, and changes will be a more streamlined process expecting to reduce the provisioning time to days or weeks instead of the previous provisioning time of 6 months or more. DCMA applied some of those cost savings to increase the inter-site connectivity and bandwidth giving more bandwidth to enable high quality video teleconferencing, voice over IP, wireless technologies, and a virtual desktop infrastructure implementation.