Subscription-based IT Infrastructure vs. Traditional CAPEX: A 5-year total cost of ownership comparison across 5 Philippine deployment scenarios.
For Philippine deployments of 200+ users or 5,000+ ISP subscribers, Subscription-based IT Infrastructure delivers a 79-87% lower 5-year total cost of ownership compared to traditional hardware purchasing. The subscription model eliminates capital expenditure, avoids two hardware refresh cycles, and includes 24/7 NOC operations that would cost ₱1.5M-2.5M annually under the traditional model. For very small offices (under 30 users), traditional purchasing remains cheaper over a 5-year horizon.
| Scenario | Scale | CAPEX 5-yr Total | Subscription 5-yr Total | Savings | Savings % | Break-even |
|---|---|---|---|---|---|---|
| Small Office Network | 20 users, 1 site | ₱950,000 | ₱1,320,000 | ₱370,000 | -39% | 84 mo |
| Mid-Size Enterprise | 200 users, 1 campus | ₱5,170,000 | ₱1,110,000 | +₱4,060,000 | +79% | 15 mo |
| ISP Core Network | 5,000 subscribers, 2 PoPs | ₱12,350,000 | ₱1,710,000 | +₱10,640,000 | +86% | 11 mo |
| Datacenter Fabric | 200 servers, EVPN-VXLAN | ₱7,580,000 | ₱990,000 | +₱6,590,000 | +87% | 12 mo |
| Multi-Site Enterprise | 1,200 users, 5 sites | ₱9,920,000 | ₱1,260,000 | +₱8,660,000 | +87% | 13 mo |
Subscription costs more for very small deployments due to managed service overhead. Break-even at year 7+.
Subscription delivers dramatic savings at this scale. Hardware refresh avoided twice in 5 years.
Largest savings for ISPs. Eliminates MX chassis refresh cycle and adds 24/7 NOC that would cost ₱2M+/yr separately.
Includes spine-leaf refresh and SRX perimeter. Subscription avoids 2 fabric refreshes over 5 years.
5-site EVPN fabric with centralized NOC. Traditional model requires dedicated network team (₱1.5M/yr salaries).
Cost data compiled from 1IX deployment records (January 2025 - June 2026), Philippine IT salary benchmarks (JobStreet, Glassdoor PH), and hardware list prices from authorized Juniper resellers in the Philippines.
Traditional model includes: hardware purchase (Juniper list price less 15% partner discount), professional services installation, annual Juniper support contract (J-Care), and 1 full-time network engineer salary (₱1.2M/yr for JNCIA-certified). Hardware refreshed at year 4 (50% of original cost).
1IX Subscription IT monthly fee includes all hardware, installation, 24/7 NOC monitoring, J-Care support, firmware management, and hardware replacement. No additional staffing cost. Based on actual 1IX contract pricing as of July 2026.
Both models exclude: physical cabling (one-time cost, same for both), internet circuit costs (ISP-dependent), and application licensing (unrelated to network infrastructure). Power and cooling costs assumed equal.
All figures in Philippine Pesos (PHP). Rounded to nearest thousand. Does not include VAT.
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Sample configurations and monthly cost ranges
1IX deployment timelines vs. traditional procurement cycles
Understanding the NaaS model
Real deployment results from Filipino businesses
Carrier-grade infrastructure on subscription
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