Watch your 1s and 0s

Pick a typical day and think about the number of times you tapped into data networks. Checking the weather report, withdrawing cash from a bank machine, paying with credit cards--all depend on some kind of electronic data transmission.

Much of that data is moved around on public pipes. Traditional enterprise or private business network suppliers especially have begun to realize this in the past few years. Vendors like Cisco Systems, 3Com and Bay Networks recognize that companies have begun to shift data from all-private, proprietary systems to secure but easily managed outsourced public networks.

The private companies don't want the hassle of hiring MIS people who spend all their time running networks and who never have time for things like planning for the future. Companies also don't want to have to choose from several types of expensive, complicated equipment only to find out they made the wrong choices.

That's where service providers come in. Companies usually have existing relationships with their local carrier for voice service, so a strong case can be made for handling the data, too. It's not only the traditional RHCs and long-distance carriers that stand to benefit, but the new competitive carriers and Internet service providers. The traditional enterprise vendor is also looking at a win because the potential outsourced carrier business is a whole new revenue stream. To that end, many vendors are focusing on carriers in new ways--reorganizing to create specific service provider divisions and emphasizing wide area sales strategies and carrier importance.

Yes, it's a great time to be a service provider or a vendor for one. But it's important to remember the foundation from which it all flows. Networks, like computers, are only as capable as the people operating them.

Data networks especially may need close attention. Voice networks are generally already in place with experienced telecom engineers running them, backed up by a lot of redundant systems. Data, on the other hand, is a brave new world for most telecom people.

It's the non-visionary telecom executives who will look down on data when comparing the relatively small millions of dollars of potential data revenue with the multiple billions to be made in both long-distance and local voice markets. And it's the smart competitive providers that will use data to work their way into the hearts of business customers and then suggest, "Say, why not try our voice service, too?"