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Fat is beautiful
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As we all switch onto the 'access everywhere' culture, Virtual Private Networks (VPNs) become increasingly relevant. Customers are becoming ever more demanding and, in order to remain competitive, businesses need to be able to service them as swiftly and efficiently as possible. Until recently however, cost has been a prohibitor. This perception continues to hold sway, but the reality is it no longer has to be the case. So what's changed, and what could this mean for your business? We assess the situation, and look at the changes market-leader BT has made to its services.
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VPNs - what's the big deal?
Virtual Private Networks (VPNs) - not new technology, so why are they currently so topical: why are we talking about them? Well firstly, in order to remain productive and agile, companies are increasingly recognising the need for employees to access the same information and applications. Home and remote workers become more productive; geographically dispersed offices can operate more efficiently. In addition to the business drivers, recent Government legislation dictates that employees are entitled to a degree of flexible working whenever possible. Traditional dial-up access is often costly and inconvenient and is not always even an option. And we should not underestimate the impact broadband has had on users and customers alike; after becoming accustomed to such speed, slow dial-up alternatives seem increasingly outmoded.
So is cost-effective connectivity achievable? The organisations that invested heavily in a WAN some time ago, and are now finding it stretched to capacity, would probably answer in the negative. In this condition, a WAN can be inefficient, unwieldy and costly to manage. And so we turn to VPNs. Secure access to the corporate network. Seemingly the perfect solution, and yet they do not arrive issue free. VPNs have traditionally been seen as cost-prohibitive by many small organisations, and expensive when providing the necessary scale for large organisations. However, with today's technology, this often proves not to be the case.
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Is BT doing anything different?
As a leader in the market, we've looked at what BT has to offer. Its VPN solutions enable organisations to create IP VPNs over its MPLS IP network, providing secure, integrated access to the corporate network. Unlike internet-based services, where the only protection is software encryption, IP-Clear is totally secure, offering ITES-compliant private access. Organisations can create networks based on a mixture of services, or gradually migrate to IP from traditional services, as IP Clear inter-works with other IP-enabled devices. 'Any-to-any' connectivity is achieved, without the need to configure and manage multiple permanent |
virtual circuits. Plus it's both flexible and scaleable. If additional applications or sites are required, extensive re-engineering isn't: you simply increase the bandwidth. What's more, by combining both voice and data services, IP Clear reduces management requirements and overall costs.
BT also has the advantage of being able to leverage economies of scale. As BT Indirect Channels Account Manager Nick Panton comments "We currently have the second largest MPLS network in the world. It's incredibly important to our business strategy and, as such, we're investing heavily in it. We've invested £48m to date in MPLS and are adding 1200 customer links a month. So users can be confident in the knowledge that there's a roadmap in place. Plus, as we're already rolling the service out to 1200 new sites a month, we've already overcome the scalability issues." A contentious issue
Another factor in BT's favour is the contention ratios it offers. BT's Channel Development Manager John Nash explains "Contention is not really an issue for most people now. In fact, I would guess the majority of people could be happily unaware of contention. But - as networks gradually become more loaded - contention will kick in, and people will start to feel the pinch. Basically, our business ADSL services are sold as 5-to-1 contended - meaning that a maximum of five customers can use the service at the same time. The majority of business services are sold as 20-to-1 contended - allowing 20 customers maximum access to the same service. So as demand increases, these organisations using 20-to-1 contention will eventually receive a service which is four times slower than BT's."
So what's the catch?
VPN - it's all sounding like a bit of a no-brainer, right? Well yes, aside from the cost. As we mentioned at the outset, VPN's are traditionally cost-prohibitive - and BT has been no exception. But the market's hotting up, and the potential of fat pipe is finally being realised. BT has recognised that cost is key, and as such has readdressed its pricing model. It's a commercial decision, but one that works in the customer's favour.
Cutting costs
BT has brought its IP VPN ADSL costs right down. So for smaller organisations that previously felt a VPN was beyond their budget, it's now looking increasingly affordable. You can now get a 2Mb ADSL connection into an IP VPN for less than the cost of a traditional 64K KiloStream, giving you greater flexibility to reach all parts of the business. Local offices can access the same applications and data; remote workers can access the network on the move; the whole organisation can be more productive. Plus larger organisations are finding that the bandwidth they require is coming in at less than a fifth of the cost of a traditional ATM connection. So they can extend or expand the network via a VPN as necessary.
In addition to the initial costs, there are significant savings to be made in terms of ongoing management. With centralised services for the entire company, management time and costs are significantly reduced. You also need to factor in the savings made when - instead of extensive re-engineering - you can expand the bandwidth to add additional offices or applications. Servo's Servo's Richard Heaviside comments "You can now achieve VPN connectivity for a branch or satellite office from just £600 a year, which could be fraction of the cost of a traditional WAN connection."
Class of Service - what does it mean?
In addition to reducing costs, IP Clear now has six Classes of Service (COS) where it previously had three. To put it in simple terms, this gives your business a far finer level of application control. Say, for instance, you were running Voice, Citrix and SAP and other applications over the network, Class of Service enables you to prioritise one over the other. If voice services are core to your business, by making them a top priority you can be sure you'll receive calls over and above running bandwidth-heavy applications. The business will run more efficiently and customer service will be improved.
Class of Service can also help you reduce costs. Organisations will often invest in additional bandwidth as a knee-jerk reaction to slow services. If they were to analyse their current usage however, they may well find that - by prioritising applications appropriately - they could have a faster and more efficient service without the additional investment. Class of Service may not be appropriate for all businesses at this stage, but by migrating to an IP VPN service that offers it at network level, the support will be in place if the business and its requirements grow in the future, without the need for an additional upgrade. This is where Servo can come in. By analysing your entire integrated network, we can highlight any areas of latency - letting you know where efficiencies can be gained, or indeed informing you when it would benefit you to invest.
"You don't always know you need Class of Service until you drill down and take a closer look" Richard Heaviside comments. "We can do this for businesses. We can perform a one, two or three day audit, see where your traffic is heaviest, and identify areas that could be working harder. By introducing the appropriate Class of Service, your company can experience significant performance benefits, without the need for an upgrade."
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What next?
Whether you thought that a VPN was simply beyond your budget, or whether it was proving too costly to expand your existing VPN to offer the necessary levels of service, we've hopefully demonstrated that this doesn't have to be the case. In the 'access everywhere' society, it's entirely to the advantage of companies such as BT to offer customers what they actually need. To find out more about BT IP Clear, go to BT's corporate site.
Alternatively, for impartial advice on the services available on the market, contact a member of the Servo team on 0808 107 5501.
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