The case for outsourced IP converged networks

While the benefits of Internet protocol convergence are not in dispute, organizations do not, without good reason, change what already works. Given the current economic environment and IT spending trends, network developments will for the most part be driven by need, as existing infrastructure becomes inadequate to support new applications, additional users or corporate expansion. But technology innovation is a key factor in maintaining growth, productivity and profitability. And IT managers must be careful to avoid the pitfall of retracting too far. To secure a sound competitive advantage into the future, companies must find a balance between efficiently using capital expenditure, integrating innovative technology and carefully selecting sound vendors.

That said, any new investments in telecommunications or data networks should have IP convergence factored into them. As the network evolves, traditional voice and data networks will converge, bringing together communications, e-business and information technology strategies. Additionally, new pressures on IT staff and network infrastructure will demand fully integrated convergence solutions in the enterprise. Maintaining legacy systems with separate applications, information and communities of interest has become inefficient and unnecessary.

For approximately five years, several factors have driven the need to upgrade communications and computing infrastructures.

The fixed corporate data network

The traditional corporate data network is based on private circuits, with fixed bandwidth between fixed locations, limiting the mobility of the end user and wasting bandwidth. Recently, packet and cell-switched technologies, such as frame relay and ATM, have largely replaced these circuit-switched networks with virtual connections sharing bandwidth using statistical multiplexing.

Frame and ATM allow for a more efficient and cost-effective use of bandwidth, especially for the bursty traffic carried over data networks, but most of these technologies remain connection-oriented with specified locations linked by permanent virtual circuits (PVCs). Adding new sites to an enterprise network still involves provisioning new PVCs and reconfiguring equipment, and access bandwidth is a limiting factor. Now that neither bandwidth requirements nor locations are fixed, this arrangement lacks the necessary flexibility and scalability for growth in the enterprise.

Additionally, today’s systems have more processing power on the desktop, allowing users to run more (and more complex) applications, which make heavy demands on the network. Available bandwidth within the LAN has increased in response to changes in traffic volume and type. To further complicate the demand on the LAN, the desktop is no longer geographically fixed--staff need the flexibility to access the corporate network while they travel or work from home and to share desks in the office when necessary.

New demands on the IT staffer

On the human side, the technical difficulties faced by IT staff are compounded by radical and rapid changes in the business environment. As previously stated, the demands of new applications stress legacy networks to the core.

Web pages are increasing in complexity, from simple text and graphics to transactional-based applications that support e-business.

Globalization and mergers and acquisitions also mean IT staff must deal with more widely dispersed locations--working across national boundaries, each with its own legacy network infrastructures. In addition, as the enterprise network becomes more inclusive and wide reaching, the challenge of day-to-day management can be a distraction from the strategic planning and innovation necessary for ongoing competitiveness.

For all these reasons, businesses are increasingly turning away from fully fixed network solutions, and relying on service providers to supply and manage their infrastructure based on IP. An IP network is, by definition, meshed--a single, straightforward connection to a public network point of presence that gives any-to-any connectivity, with no need to worry about configuring virtual circuits to share access bandwidth or maintain a myriad network topology that is not flexible or scalable.

By dispensing with fixed circuits altogether and using a connectionless technology such as IP, users, sites and devices can be added or removed from an IP-based enterprise network at any time, simply by validating user IDs and passwords. This is the virtual private network (VPN)--a solution providing secure transport of private network infrastructure, with service level agreements (SLAs) defining availability and performance. IP-compatible VPNs are known as IP-VPNs.

IP in the enterprise

IP was not originally seen as appropriate for running business-critical applications over an enterprise network because it could not guarantee security or quality of service (QoS). With the development of multi-protocol label switching (MPLS), VPNs can now be configured across IP networks with the necessary QoS guarantees for different traffic types--including real-time voice and video.

For security, MPLS provides the same functions as frame or ATM. And IP-Sec over MPLS guarantees users can work remotely with ease and security. MPLS, however, provides the added advantage of easier and more flexible control over which users have access to whatever information is required.

But migration to IP-VPNs won’t happen overnight--in most cases, the IP-VPN will need to be integrated with existing infrastructure (e.g., ATM) for some time. An advantage of MPLS in this respect is that it is a multi-protocol technology--the label-switched paths that are routed through an MPLS system can be switched by ATM switches as well as IP routers--allowing IP traffic to be carried across an ATM core.

Enterprises can rely on service providers to replace the existing WAN infrastructure with an IP-VPN, using MPLS to provide consistent, guaranteed QoS and security. As a first step toward convergence, the new network will be flexible and scalable. New users, sites or applications can be added and integrated when necessary. Bandwidth is plentiful in the core and can be added to access circuits without major configuration.

With the IP-VPN in place and plenty of spare capacity, internal voice traffic can be routed over it. Voice calls consume relatively little bandwidth, especially with compression techniques. As a result, they will make very little demand on the network.

Slowly and conservatively, outsourced convergence services will reduce overhead, increase efficient bandwidth use and free up in-house staff to concentrate on strategic planning, integration and innovation.

Next, data and voice converge within the LAN. There will be just one cabling and switching port per user, with integrated cabling (Cat-5 or Cat-6) to the desktop. The telephone will have been replaced with IP phones, which connect directly to the PC. Initially, sites will retain PSTN connections for external (out of enterprise) voice calls that will be switched either by an IP-PBX connected to the LAN, or by a router with an ISDN primary rate interface (PRI) card. In the future, separate connections won’t be necessary external calls will be carried over the IP network and broken out locally onto the PSTN via media gateways.

Converging internal and external systems

As applications share both infrastructure and end-points, voice, date and video can be integrated to keep up new working arrangements and business practices. Here, it is the distribution of data around a business and within outsourced storage facilities that requires access, control and management remotely. Clearly, with all of these services, it is the reliable access to the right data in the right form at the right time that is critical.

When the converged LAN and WAN has been built to support access to these services, we will truly have a converged IP-based infrastructure, rather than silos of applications, information and communities operating on separate platforms.

Enabling new applications

The advantages that IP convergence brings are many. Such examples include unified messaging, which gives users a single in-box for voice messages, faxes, e-mail and short message service (SMS) messages from mobile phones. Or meeting-type applications that combine audio- and videoconferencing, whiteboarding, etc. allow people to share resources and expertise regardless of time or location.

Other applications may include full computer-telephony integration (CTI) to the desktop that will allow the development of integrated contact centers. For example, the customer and contact center agent will be able to view the same product description or demonstration on screen while talking to each other--or click to call facilities that will let users set up voice calls by clicking links on Web sites.

Applications like distance learning will be enhanced by the ability to embed voice links into electronic documents. And with multicasting, organizations can make interactive training and information videos available to staff for viewing on their desktops rather than in designated meeting rooms. Multicasting is also a cost-effective way of disseminating corporate messages.

Conclusion

Whether or not a company is ready for a converged IP infrastructure now or will move that way gradually, all IT planning must take it into account. The beauty of it is that it can be deployed immediately or at one’s own pace so that legacy systems can be integrated until they can be fully replaced.

A major benefit of convergence is cost savings. With voice, data and video sharing infrastructure and equipment, the total cost of ownership is greatly reduced. Companies also benefit by “sharing” the infrastructure and resources that the managed service provider has already built. A single budget now covers all access lines, equipment, cabling, installation, management and maintenance. Managed service options also enable businesses to achieve cost savings through other means. By reducing capital investment and management overheads, businesses can concentrate on bigger picture strategic planning, application development and support. The convergence of data and voice network budgets will also free up capital and human resources for innovation related to a company’s core business activity.

Outsourced managed solutions from service providers also offer low-risk migration paths, with predictable pricing models, and rental options to reduce capital investment. Built-in upgrades enable managers to keep up with new developments. And with fully standards-based services, there's no danger of lock-in to a proprietary solution.

Interoperability of all of internal and external facing systems that support a company’s e-business strategy, is a major reason for convergence. Full convergence will bring together businesses’ information strategies and communications strategies for the first time, resulting in both cost savings and improved efficiency and productivity through new IP-based applications.

Ivor Kendall is Vice President, IP Convergence, for Cable & Wireless.

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