Although a great deal of energy is expended discussing the performance differences of IP-based and Fibre Channel (FC)-based storage area networks (SAN), it is generally accepted that it is cheaper to deploy an iSCSI SAN. This report dissects the components of an IP-based SAN and compares the up-front and ongoing costs versus a FC SAN. The cost advantage of iSCSI is so significant in terms of server side and switch network costs that you owe it to your budget to determine which applications would be a good fit for this technology. Some implementations of IP-based storage networking can struggle with high intensity application workloads, others have matured significantly and are more capable of handling enterprise-class applications. Given the hardware acquisition cost benefits as well as synergies in network staff and infrastructure, significant benefits can be gained from the use of iSCSI-based SAN architectures.