BLECs Bear The Burden Of Service Level
Verification
BY JAMIE WARTER
Virtually every home and business needs to be wired these days. From
high-speed Internet access to Voice-over-IP (VoIP) services, everyone needs and
wants to sign up for advanced network services. Homes and businesses that share
a building have an alternative to the traditional service providers -- building
local exchange carriers (BLECs). BLECs contract with a landlord to wire a
building and provide data, telephone, and entertainment services to all the
tenants for a more cost-effective operation. They take care of everything, and
send one convenient bill to residents and small business owners who welcome the
help with a technology that threatens to overwhelm their smaller operations.
Commercial buildings hold most of a BLEC's hope for growing revenue. While
small-to-medium-sized businesses are demanding many new IP services, the
traditional data communications providers have primarily focused on serving
large corporations. BLECs are a good choice for these smaller corporations
because they focus intently on individual facilities, unlike large regional
service providers. However, with a market limited by the size of the building,
BLECs need to up-sell advanced Internet-based services to continue their revenue
growth. To accomplish this, BLECs must earn the trust and confidence of their
customers to get them to make the leap to the high-performance services that can
really make their investments in infrastructure pay off. In the past, this trust
hasn't come easily because the service level agreements (SLAs) guaranteeing
quality and performance made between the BLEC and the tenant set expectations,
which were really just empty promises since neither party had any way of
verifying the performance of the actual services provided.
Emerging SLA verification systems now allow BLECs to offer their tenants SLAs
backed by real-time service quality verification. For example, a new class of
hardware products, called verifiers, constantly monitor performance, check it
against what was promised in the SLA, and report results to both the BLEC and
tenants. These enforceable SLAs ease tenants' minds about uptime, jitter, speed,
and other critical service qualities. Building trust with tenants will allow
BLECs to sell more advanced Internet-based services, thereby unlocking the
revenue potential of the high-performance infrastructures they've created.
THE BLEC IN DETAIL
BLECs buy the rights to wire an entire office building and provide cable, phone,
basic data, and advanced Internet services to all its tenants. It's a captive
market, but a limited one all the same. A BLEC provides basic network
connectivity and advanced IP services to these multi-tenant units (MTUs),
ranging from skyscrapers to industrial parks to apartment complexes, which
number about 118,000 in the US alone. Usually this entails providing Internet
and phone services to large residential buildings, or small and medium-sized
businesses occupying a floor or suite in an office building. In addition to
broadband access, they can offer services such as Web hosting, applications
hosting, unified messaging, IP telephony, data storage, virtual private
networks, outsourced applications, and tailored content services. The combined
market for residential and commercial BLEC services will double annually and
reach $1.4 billion by 2003, according to the Yankee Group (www.yankeegroup.com).
The commercial portion of the BLEC market is prime for growth in the delivery
of increasingly advanced applications. The Yankee Group estimates the
value-added services market for BLECs will jump from $13 million now to $982
million by 2003. This growth will come from enhanced services such as IP-VPNs,
co-location, Web/applications hosting, security/firewall services, and video
conferencing, among others. Managed services, such as outsourced IT and help
desks, managed desktops, Web site design, network and legacy systems
integration, and online billing, will be the BLEC's next step.
BLECs have made major investments in building out their high-performance
networking infrastructures, upon which their new IP services and applications
run. However, the migration of customers from traditional telecom and datacom
technologies to innovative IP-based solutions is slow because tenants are
uncertain about these services' quality and predictability for the critical
functions in their business. BLECs are conveniently located right in the
building, and their infrastructures are already installed. For basic services,
BLECs may have a cost advantage because they provide service to many tenants in
many buildings. They buy in volume and may use some of that cost savings to
compete.
SERVICE LEVEL VERIFICATION
But the BLECs are often new entrants without strong brand name recognition.
Typically, they're competing against better-known incumbents, such as AT&T (www.att.com),
WorldCom (www.wcom.com), or Sprint (www.sprint.com).
Tenants are often unfamiliar with the BLEC's capabilities and quality. Winning
customers and migrating their critical applications to a BLEC's IP network
requires a very solid guarantee to the tenant who might not yet have confidence
in the BLEC. That's where service level verification comes in.
BLECs have to offer significant value through either higher performance for
the same price, or the same basic services for a lower price in order to win
business from an incumbent provider. Actively monitoring service performance and
verifying SLAs allows BLECs to compete on quality as well as cost. The BLEC can
use a high-performance, real-time service level verification system to prove its
tenants are actually getting the services, quality, and performance they're
paying for.
Service level verification systems are easy to deploy, cost effective, and
secure, allowing BLECs to react quickly to new business opportunities. Hardware
verifiers mark the edge of a service -- creating a demarcation point where the
BLEC's network ends and the tenant's begins -- that eliminates the blur that has
prevented accurate Internet performance measurement. Verifiers deliver
information about the service's performance from the tenant's point of view in
real time. This eliminates the finger pointing that often weakens the
relationship between a service provider and a customer when no one can really
identify where a problem is, let alone solve it.
Verifiers and the verification systems integrate easily into a BLEC's
infrastructure for quick service to new customers. They can even seamlessly
integrate into the BLEC's customer service portal for reporting and billing. The
service level verifier sits at the edge of the network at each office complex
within the building so the BLEC can show each tenant the performance of the
services they are receiving as the services hit the tenant's network. If the
tenant is experiencing a problem, it will be easy to determine if it is in the
tenant's network or in the BLEC's.
BUILDING WINNING RELATIONSHIPS
When a tenant moves into a building with a service level verification system,
they sign an SLA with a BLEC. When their BLEC uses verifiers to monitor SLAs,
they can immediately begin receiving information on the performance of the
services they are buying from the BLEC. Right away, and all along the way, they
can see what they're getting and how it compares to the expectations defined in
their SLA. Real-time SLA data gives BLECs the level of accountability and
credibility they need to successfully compete with larger regional service
providers on quality. In the end, service level verification is a classic
win-win situation for BLECs and their customers. The BLECs can build trusting
relationships with their tenants, which help them sell the high-performance IP
services that drive revenue and profitability. And tenants get the reassurances
that they are receiving the utmost quality and performance from the services
they paid for.
Jamie Warter is vice president of marketing and business development at
Brix Networks, of Chelmsford, MA. He can be reached at [email protected].
Brix offers carrier-class products and services that provide pervasive and
proactive Service Level Agreement (SLA) verification. For more information,
visit the company's Web site at www.brixnet.com.
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