Evaluating WAN Technology for OPEX Reduction
Refer to the exhibit. The WAN network of the General Bank of Greece has experienced several outages. It takes too long to activate a new branch site. The networking department of the bank plans to upgrade the legacy end-of-life WAN network with a new flexible, manageable, and scalable in-house solution. The number of branches will increase exponentially in the next fiscal year. The CTO states that the bank’s main goal is OPEX reduction. The network engineering team prepares a table to evaluate the available options. Which WAN technology can be used for the solution? - 
Community Votes
47% of anonymous learners picked answer A. Votes are pick records left by other test-takers — they are not the verified answer.
Community Insight
The core trap is confusing CAPEX (equipment) with OPEX (licensing/subscriptions) and misinterpreting 'in-house' as excluding modern technologies like SD-WAN or DMVPN, when it simply excludes managed services.
This question tests the ability to select a WAN technology that meets specific business goals of scalability and OPEX reduction while maintaining an in-house management model. It establishes how to interpret cost structures and licensing models in network design scenarios.
Many learners choose Managed SD-WAN because they associate 'OPEX reduction' with subscription-based managed services, ignoring the explicit requirement for an 'in-house' solution.
Community Discussion (9 comments)
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Expert Analysis
Why the Answer Is Correct
Option A (DMVPN over L3VPN) is the correct choice because it aligns with all three constraints: it supports exponential growth through dynamic spoke-to-spoke routing, allows for an in-house deployment model, and offers significant OPEX savings compared to legacy MPLS. The table provided in the exhibit shows that while DMVPN has higher initial costs, its long-term operational costs are lower than the other options, directly addressing the CTO's primary goal.Why the Other Options Are Wrong
Option B (Managed SD-WAN) is incorrect because the requirement for an 'in-house solution' explicitly rules out third-party managed services. Option C (SD-WAN over L3VPN) is more expensive in terms of recurring license fees according to the exhibit, making it less optimal for strict OPEX reduction. Option D (SD-WAN over L2VPN) is not only costlier but also lacks the scalability and ease of branch activation provided by Layer 3 solutions.Community Comment Notes
Community consensus was split, with many voting for Managed SD-WAN due to the 'OPEX' keyword. However, users who focused on the 'in-house' constraint correctly identified that managed services are excluded. Some users argued that licenses are OPEX, which is true, but failed to account for the fact that DMVPN can be deployed with perpetual licenses or lower recurring costs depending on the specific vendor model presented in the exhibit. The key differentiator remains the balance of total cost of ownership against the management model.Official Reference
Exam Strategy
Always read the entire prompt for constraints before evaluating options. In this case, 'in-house' eliminates managed services, and 'OPEX reduction' requires analyzing the long-term cost trends, not just the initial price tag.
Frequently Asked Questions
Why is Managed SD-WAN incorrect if it reduces OPEX?
Managed SD-WAN is a third-party service. The requirement for an 'in-house solution' explicitly prohibits outsourcing management to a provider.
Are software licenses considered CAPEX or OPEX?
Traditionally, perpetual licenses are CAPEX, while subscriptions are OPEX. However, the decision here relies on the total cost profile shown in the exhibit and the management model.