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.
Sample configurations and monthly cost ranges
1IX deployment timelines vs. traditional procurement cycles
Understanding the NaaS model
Real deployment results from businesses
Carrier-grade infrastructure on subscription
Get a personalized cost comparison for your specific network requirements.