Definitive Guide to a effective In-House NOC

This article serves as a guide to help understand the costs involved in maintaining a Network Operations Center (NOC) or IT Infrastructure Monitoring Center. Several variables can influence the final cost, such as:

• Number of employees
• Salaries
• Region
• Benefits
• Company tax regime
• Software used

Cost Estimation Guidance

Despite the variations, this guide provides a solid foundation for estimating the costs of an in-house NOC.

Challenges of an In-House NOC

Maintaining an in-house NOC presents several challenges and negative factors that must be considered:

• Absenteeism: Employee absences that can impact continuous operation.
• Vacation Periods: Need to cover absences during vacations.
• Headcount: Increase in the total number of employees.
• Physical Space: Need for additional physical space to accommodate the team.
• Labor Liabilities: Legal and financial responsibilities with employees.

Moreover, it’s important to note that a NOC will rarely be part of the company’s core business, unless the company specializes in monitoring.

Cost of In-House Employees

To calculate the number of employees needed to ensure that there is always at least one person monitoring the NOC 24 hours a day, 7 days a week, 365 days a year, we can follow these steps:

1. Calculate the necessary working hours per week: A week has 7 days, and each day has 24 hours. Therefore: 7 days/week × 24 hours/day = 168 hours/week

 

1. Calculate the working hours each employee can cover per week: Each employee works 8 hours per day. Additionally, they have 1 hour for rest and meals, resulting in a total of 9 hours per shift. However, only the 8 working hours are considered for coverage calculation. An employee works 8 hours per day and 5 days per week :8 hours/day × 5 days/week = 40 hours/week

 

1. Calculate the number of employees needed: To cover the 168 weekly hours, divide the total necessary hours by the number of hours an employee can work per week: 168 hours/week / 40 hours/week/employee = 4.2 

 

1. Round up: Since we cannot have a fraction of an employee, we round up to ensure continuous coverage :4.2 ≈ 5 employees

Therefore, 5 employees are needed to ensure that there is always at least one person monitoring the NOC 24/7, 365 days a year, considering each employee works 8 hours per day and has 1 hour for rest and meals.

Cost Calculation for an In-House NOC in the USA

To calculate the monthly and annual costs of maintaining a NOC in the USA considering salaries and labor costs, we need to consider the monthly salary, the 13th salary, vacation pay, and night shift differential. Let’s detail each of these components.

1. Monthly Salary

The base salary is $3,000 per employee.

2. 13th Salary

The 13th salary is equivalent to one monthly salary and is paid in two installments. For simplicity, consider the total annual value as an additional salary: 13th salary = $3,000 

3. Vacation Pay

In the USA, the Fair Labor Standards Act (FLSA) does not mandate payment for time not worked, such as vacations, sick leave, or federal and other holidays. These benefits are determined by agreements between employers and employees. However, offering such benefits is highly recommended to retain talented employees.

Therefore, the vacation cost is : Vacation = $3,000

4. Night Shift Differential

The night shift differential is 10% of the salary for hours worked between 10 PM and 5 AM. Assuming employees work 8 hours per day, 5 days per week, and part of this time occurs at night: 

Night Shift Differential = 0.1 × $3,000 = $300

5. Total Cost Calculation

1. a) Monthly Cost per Employee The monthly cost per employee, considering the night shift differential: 

Monthly cost = $3,000 + $300 = $3,300

1. b) Annual Cost per Employee To calculate the annual cost, sum the monthly salaries, the 13th salary, and vacation pay:

Annual cost = (Monthly salary × 12)+ 13th salary + Vacation = ($3,300×12) + $3,000+ $3,000 = $45,600

6. Total Number of Employees

As calculated previously, 5 employees are needed to cover 24/7.

7. Total Monthly and Annual Cost for the NOC

1. a) Total Monthly Cost Total monthly cost = 5 × $3,300 = $16,500
2. b) Total Annual Cost Total annual cost = 5 × $45,600 = $228,000

Cost of Hardware and Software

To calculate the total annual cost of maintaining a NOC considering all additional elements, we add the costs of hardware (laptops), email accounts, other necessary software, and the dedicated server for Zabbix. Let’s assume some cost estimates for these items.

1. Cost of Hardware (Laptops)

• Laptop per employee: $1,500 (considering a good quality laptop for professional use)
• Laptop lifespan: 3 years (annual amortization) 
• Annual cost per laptop = $1,500 / 3 = $500

2. Email Accounts and Other Software

• Corporate email account (per employee): $10 per month
• Annual email cost (per employee): $10×12=$120$10×12=$120
• Other software (per employee): $50 per month (assuming a combination of productivity, communication, and security tools)
• Annual software cost (per employee): $50×12=$600$50×12=$600

3. Dedicated Server for Zabbix

• Server cost: $10,000 (considering a mid-range server suitable for Zabbix)
• Server lifespan: 5 years (annual amortization) Annual server cost=$10,0005=$2,000Annual server cost=5$10,000​=$2,000

4. Totaling Additional Costs

1. a) Annual Cost per Employee

• Laptop: $500
• Email Account: $120
• Other Software: $600
• Total annual cost per employee: $500+$120+$600=$1,220$500+$120+$600=$1,220

1. b) Total Annual Cost for 5 Employees Total cost for 5 employees=5×$1,220=$6,100Total cost for 5 employees=5×$1,220=$6,100
2. c) Annual Cost of the Server for Zabbix Annual server cost=$2,000Annual server cost=$2,000

5. Total Annual Cost of the NOC

1. a) Annual Salary Cost: $228,000
2. b) Additional Annual Cost: $6,100+$2,000=$8,100$6,100+$2,000=$8,100
3. c) Total Annual Cost $228,000+$8,100 = $236,100

Final Summary

• Annual Salary Cost: $228,000
• Additional Annual Cost (Hardware, Email, Software, Server): $8,100
• Total Annual Cost of the NOC: $236,100

Thus, the total annual cost to maintain a NOC in the USA, including salaries, hardware, email accounts, other necessary software, and a dedicated server for Zabbix (a free monitoring software), would be approximately $236,100.

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