Being an infrastructure system, the computer network has a fundamental role in the day to day activities of personnel working at KSC. It is easily appreciated that the lack of 'satisfactory' network performance can have a high 'cost' for KSC. Yet, this seemingly obvious concept is quite difficult to demonstrate. At what point do we say that performance is below the lowest tolerable level? How do we know when the 'cost' of using the system at the current level of degraded performance exceeds the cost of upgrading it? In this research, we consider the cost and performance factors that may have an effect in decision making in regards to upgrading computer networks. Cost factors are detailed in terms of 'direct costs' and 'subjective costs'. Performance factors are examined in terms of 'required performance' and 'offered performance.' Required performance is further examined by presenting a methodology for trend analysis based on applying interpolation methods to observed traffic levels. Offered performance levels are analyzed by deriving simple equations to evaluate network performance. The results are evaluated in the light of recommended upgrade policies currently in use for telephone exchange systems, similarities and differences between the two types of services are discussed.