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VPN services key to communication provider survival

By Internet Solutions
Johannesburg, 23 Jan 2001

The adoption of VPN technology by and telecommunication service providers - and more particularly the value-added services VPNs enable - will be the key differentiating factor between service providers in the future.

That`s the view of Val Moodley, manager - solutions architecture at IS, the e-business infrastructure subsidiary of London-listed Dimension Holdings. The company provides value-added and services previously offered independently by The Internet Solution and OmniLink. The OmniLink switched VPN backbone network is maintained separately under the OmniLink banner.

"VPN technology is advancing at breakneck speed. This is clear from the developments in IP (Internet Protocol) which allow for class of service and traffic prioritisation over an IP network. With IP, the cost of VPN-type solutions will become less because router technology can now perform class of service functions which were previously only possible with a WAN switch.

"Within a private network, for example, a corporate IT department with the right infrastructure and level of VPN skills could offer different types of services to the company`s various subsidiaries and branches - such as prioritising e-mails to the CEO, increasing the bandwidth available to the debtors department at month end," she explains.

Internationally, however, few corporates are opting for the do-it-yourself VPN route because experience has shown that it`s more efficient and cost-effective to outsource VPN requirements to a specialist service provider.

According to Moodley, this trend is being supported by the ability of VPN service providers to offer their services right down to MAN (Metropolitan Area Network) level, thus bringing the benefits of VPNs - high capacity, availability and manageability - closer to the desktop.

A MAN is a robust, geographically proscribed network infrastructure which is shared by businesses operating in the same region. The MAN is developed and maintained by a network service provider which sells bandwidth and services to local businesses in that region.

Corporates located with a MAN`s reach can have high-speed, robust connectivity to their branches, suppliers and customers in the same metropolitan area. And because of the limited geographical reach of the MAN, it can be constructed to incorporate enormous redundancy, boosting the reliability and performance of the service.

"With bandwidth rapidly becoming a commodity in most developed economies, telcos have seen the writing on the wall," Moodley continues.

"Corporate IT managers want more than a fibre or copper connection and a fixed amount of bandwidth. They want choice in terms of service. They may need to be able to link multiple destinations across a single connection. They often require realtime network management capabilities and to be able to monitor their own Service Level Agreement with the service provider.

"If telcos can`t provide these value-added services, corporates will turn to VPN providers who can," Moodley concludes.

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