x- amples of these costs are: Chapter 40: GAD's Maxims Equipment costs Hardware, cabling, and the like are examples of equipment costs. If you can replace three routers in a planned design with two, you've reduced equipment costs. Recurring costs Maintenance contract costs and telecom costs such as T1 bills, telephone bills, and the like are all recurring costs. Cutting recurring costs can have a dramatic impact on a company's bottom line. Human resource costs Your salary is a cost for the company. If there are 10 people in your department making $100,000 each, and you design a change that costs $200,000 but lowers your staffing needs by 2 people, after less than a year, the company will have made a return on its investment. Engineers are not often aware of what it costs to keep them. For example, did you know that the taxes taken out of your salary are only a portion of those required by the government? If you have a salary of $100,000/year, the company might pay as much as $25,000 a year in taxes above and beyond what you pay. Suddenly, you're costing the company $125,000 a year. And let's not forget other things we all take for granted, such as 401k contributions and healthcare. Those two alone could total another $25,000 a year. Now you're costing the company $150,000 a year. Do you get a bonus? Add that to the total. And let's not forget that it costs money for you to have a cube or office (rent). The company also has to pay to cool and heat the air you breathe (facilities), and for you to have a computer, a telephone, and probably a cellular phone. When all is said and done, you may easily cost the company twice what you consider to be your annual salary. Consulting costs Consulting costs are often reported differently from HR costs (this is why some- times salaried employees are let go and consultants are brought in to do the same work for the same or more pay). If you can redesign a network that currently is supported by three consultants SO it only needs one, you've lowered consulting costs. Increase Per