Linx Holdings has announced the establishment of SA`s first secure, business-to-business e-commerce platform based around its quality-of-service Virtual Private Network (VPN), OmniLink.
The new initiative is geared to eliminate the problems identified by leading industry commentators as hampering the growth of Internet-based business-to-business e-commerce.
Linx - launched some 18 months ago to provide a secure, managed, countrywide enterprise network infrastructure for the business community - is a Dimension Data, Nedcor and Old Mutual joint venture company.
Now, in its second phase of development, Linx will set up a secure, virtual `business community` on the VPN through which businesses can conduct e-commerce transactions, access information and share applications.
OmniLink MD Brett Dawson says the ATM-based VPN has grown to become the largest data network in Africa. OmniLink currently supports around 350 000 end devices in over 40 corporates from across the economic spectrum - banking, IT, manufacturing, automotive, entertainment, financial and consulting services. "The OmniLink VPN has had sufficient time to bed down properly and this, combined with its critical mass of users, enables us to provide the value-added e-commerce services envisaged at the time of OmniLink`s launch," he adds.
Heading up the new business to business e-commerce initiative is Ermano Quartero. "If business-to-business e-commerce is to reach its full potential, an infrastructure with QoS guarantees and 24 x 7 x 365 customer support, such as that provided by OmniLink`s VPN is essential," he says.
A recent report on global Internet growth by leading e-commerce research organisation Forrester Research estimated that on-line revenues in business- to-business trade will climb to US$251-billion in 2000, up from US$43-billion in 1998.
But Forrester also warns that Internet shortcomings, particularly in the security arena, could stifle e-commerce development around the world. It estimates that of every $1 000 of transactions which occur on the Internet, $1 is lost to fraud as a result of security violations.
A recent roundtable discussion held by InternetWeek`s VPN Alliance was dominated by complaints of the hidden costs of installing and properly configuring complex client software in an IPSec (the IP-based secure protocol) Internet VPN environment. Quartero says the OmniLink QoS VPN eliminates these problems by providing the infrastructure foundation required by companies to embrace e-commerce effectively and be connected to their trading partners.
"This connectivity could be effected through direct links on the VPN when both parties utilise the OmniLink VPN for their internal communications; secure dial-in connections to the VPN for non-VPN users; EDI connections; or - for broader connectivity to large numbers of small suppliers and customers - via secure Internet portals. All communications would be switched through the secure OmniLink VPN `extranet`.
"The infrastructure for business-to-business e-commerce is in place and the number of companies opting for this e-commerce route is growing fast. An example is Auto-mate`s recent switch to the OmniLink VPN to ensure secure and reliable communications with a large number of its motor dealer customers.
"This move has been hailed by motor industry experts as the first stage in the establishment of a permanent, secure, and affordable business-quality data communications network service linking suppliers, manufacturers, dealers, component suppliers and financial institutions including banks and insurance houses.
"This is the reality of the business-to-business e-commerce vision. In the US, General Motors, Ford and Chrysler have also embarked on a similar initiative. There, the Automotive Network Exchange (ANX) aims to provide a secure network service to link automotive suppliers and vehicle manufacturers.
"Phase two of the OmniLink development process will provide the platform to realise this e-commerce vision in SA," Quartero concludes.
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