SIPRNet PDS Cost Study Reveals Widely Advertised Alarmed Carrier Two to Six Times More Expensive Than Holocom
SAN DIEGO - November 1, 2011 - Holocom, Inc., the leader in protective distribution systems (PDS) for SIPRNet and other classified networks, announced preliminary results of a comprehensive cost comparison of Holocom PDS and the most widely advertised alarmed carrier PDS. This study presents a complete cost comparison for SIPRNet to the desktop comparing the widely advertised alarmed solution without a hardened carrier and Holocom PDS. The cost comparison includes cabling, electronics, raceway, connectors, labor and all other components for implementing fully functional, identically sized SIPRNet installations.
The goal of the study is to assist military and other government organizations facing new budget realities in determining realistic SIPRNet implementation costs in light of the continued expansion of SIPRNet. John Burns, Holocom CEO stated, "We believe this to be the first analysis of the two PDS solutions that encompasses all of the costs required for a fully functional SIPRNet seat."
A summary of results indicates that the cost per SIPRNet drop is generally inversely proportional to the size of the project for both Holocom PDS and alarmed carrier PDS, with the Holocom solution being significantly less expensive in all scenarios. Rounded actual values are as follows for a range of installation sizes:
| Large Projects | Small Projects | Average Cost | |
| Holocom PDS | $1,000/drop | $2,050/drop | $1,250/drop |
| Alarmed Carrier PDS | $3,900/drop | $8,900/drop | $4,500/drop |
The study uses both DoD Statement of Work assumptions from a recent major bid, as well as actual values from real projects. Using DoD bid assumptions results in a more expensive estimate than actual project experience by roughly $400/drop for project sizes ranging from five to 400 drops. The same assumptions were applied to both Holocom PDS and the most prevalent alarmed carrier PDS in order to achieve an accurate comparison.
"In addition to confirming our experience with the cost for more than 50,000 installed Holocom drops, it highlights the need for a cost effective alarmed carrier PDS when government organizations face that requirement," said Craig McCarthy, Holocom president. "We are currently looking at that issue with the objective of introducing a cost effective alarmed solution to better serve that market," McCarthy added.
Because of the dramatic cost difference revealed in this study, Holocom has distributed the study methodology for peer review. "Although I am confident in the accuracy of the results of our analysis, we will release the complete results of the study when the peer review is complete," Burns said. Burns also announced launch of a Holocom BLOG for customer input. "It is our intention to offer a comparison that enables decision makers to derive meaningful cost expectations, but we recognize that there are individual project variations that influence the final cost of a particular deployment. The BLOG will assist us in gathering the experience and collective wisdom of our customer's experiences. There is no room in today's defense budgets for excessive costs to meet government requirements. "
About Holocom
Holocom is the leading manufacturer of protective distribution systems (PDS) for SIPRNet and other networks transmitting highly sensitive data. The patented Holocom PDS provides a complete, end-to-end solution including services tailored to meet individual customer requirements. Holocom owns an IP portfolio protecting its secure enclosure systems which in turn protect mission-critical networks for all branches of the military, federal agencies and private networks across the globe. Holocom is headquartered in San Diego, CA with additional offices in Colorado Springs, CO and the Washington D.C. area.
Holocom, Inc. is jointly owned by Scripps Ventures, Inc. and Patriot Scientific Corporation ("NASDQ "PTSC"). For more information, visit www.holocom.com or call 888-HOLOCOM.
About Patriot Scientific Corporation
Headquartered in Carlsbad, California, Patriot Scientific Corporation (PTSC) is the co-owner of the Moore Microprocessor Patent(TM) Portfolio licensing partnership, and is the parent of the wholly owned subsidiary, PDSG. For more information on PTSC, visit www.ptsc.com.
