Case Study: Global MPLSbased. Network

Transcription

1 Welcome Wednesday, May Case Study: Global MPLSbased Outsourced Network Presented by: Markos Moya, Vice President Commercial Enterprises

2 Hyatt International Corporation Operates, manages or franchises 88 hotels around the world with 23 more under development Private company headquartered in Chicago and majority owned by the Pritzker family (estimated revenues approx. $3b). Family also owns Hyatt Hotel group which runs 122 hotels in North America and Caribbean Existing network was a combination of low bandwidth FR services and private line services (some ATM). Average bandwidth of 64k (range 16k to 256k) per site.

3 Telstra Incorporated 100% subsidiary of Telstra Corporation Limited. Telstra is a $15b revenue company headquartered in Australia with operations in over 20 countries Telstra is ranked as the 13 th largest carrier in the world by market cap providing voice, data and internet services in over 55 countries Listed on three stock exchanges, employees, services 200 of the Fortune years of experience in the Asia Pacific and considered leader in the region for the Enterprise market Global coverage, Asia Pacific Focus

4 Hyatt Business Objectives Take advantage of projected increase in hospitality business around the world Hotel occupancy rates have improved 3-4% with the largest improvements being luxury hotels in tourist destinations and at downtown and airport chain hotels, which means business travel is expanding. -Reed Research Group, July 2004 Hotel Broadband Market is taking off: Guests demand for broadband service is now seen as an essential element of the guestroom along with a bed, telephone, and TV. Broadband deployment on hotel properties will rise from a bit over 5,000 last year to almost 27,000. -emarket2004 Provide state of the art services to its customers including inroom wireless internet access Introduce advanced applications (external and in-house) to improve customer service, operations efficiency and financial reporting Future proof its infrastructure to take advantage of latest technologies and applications seamlessly Outsource all areas of non-core business without impacting customer service or operations

5 Hyatt IT Team s Challenges Replace a 6-year old FR network running at 64k and a lowbandwidth IPL network running at 16k-64k: inadequate to handle proposed applications Increase bandwidth at least 400% in order to meet company objectives (reduced budget) Reduce IT and Communications costs (not yet seen as part of core business) Implement a network architecture that would allow greater flexibility without affecting existing operations Provide an infrastructure that would not be outdated or limited in its capability to seamlessly introduce new services or take advantage of emerging technologies Find the right balance in outsourcing components of its IT and Telecoms operations and infrastructure without losing identity and input to company goals

6 Hyatt RFP Requirements Global integrator to provide them with a turnkey solution for their 88 existing hotels, shared service centers (SSC) and administrative offices Replace existing network with a new design & infrastructure that would allow: meshing connectivity, voice and data integration, traffic flow control based on CoS and secure internet access Competitive pricing and cost containment (more for less) Strict implementation timelines to avoid double billing Compliance with stringent SLAs for performance, delivery and stewardship Comprehensive account management and in-country support for hotel managers Local in-country billing

7 Telstra Proposal Telstra proposed a CoS FR solution and MPLS solution highlighting pros & cons of both services and provided the increased bandwidth requirements needed MPLS solution proposed various classes of service to handle different applications (various options presented including future voice integration) Proposed full turnkey solution including network services, CPE, 24x7 network management, off-net options and secure internet services Customized SLAs per hotel with localized currency billing Future services also proposed including Dial IP authentication services, WiMax services and enhanced extranet services Migration process outlined (migration from existing vendor and Telstra existing services)

8

9 The RFP Result Telstra awarded network business ahead of 19 other network providers The $8.4 million business covered all existing hotels including delivery of MPLS services, CPE provisioning, network management, internet & firewall services Broadband internet solution for in-room clients including wireless services awarded to another vendor (Telstra providing internal internet services) Final pricing and SLAs vigorously negotiated Implementation requirements extremely stringent including traditionally difficult locations in China (Beijing Hyatt) and Indonesia

10 Why Telstra succeeded? Existing relationship: supplier in Europe and Australia Compliance with pricing, SLAs and individual billing requirements saved Hyatt a lot of money Recognized leader in the Asia Pacific: network capacity, diversity and flexibility Global coverage and platform diversity (logical and physical) Promotion of MPLS services and the communicated advantages of using MPLS Financial Stability (AA+) Telstra was prepared to commit to robust SLAs and has more than met the reliability Hyatt was looking for, stated, Gebhard Rainer, Hyatt s Vice President of Finance and Technology. This gives us greater flexibility while maintaining the highest standards for the customer

11 Benefits of MPLS to Hyatt Mission-critical reservation system not compromised, guaranteed percentage of the bandwidth (30%) New Property Management application (ASPbased in Europe) would not require dedicated bandwidth from each hotel Financial & Accounting applications could be decentralized without increased cost Internet access centralized or localized MPLS Technologies drvie efficiency improvements while ASP services centralize hotel management functions, enabling Hyatt International to focus on its core business Mark Retnam, Director of Global WAN Services

12 Was MPLS really the answer? Customer wanted any-to-any but final design did not take advantage of this (no hotel to hotel connection needed) MPLS design for Hyatt still configured as hub and spoke to key admin and shared services sites Cost advantage of MPLS vs FR was 20% (in many cases FR was cheaper for individual sites) Real value will come in future integration of new applications and voice / data integration Customer believed there were real future advantages with MPLS investment Off-net solutions used the Internet and IPSec solutions

13 MPLS the right fit for all? MPLS advantage dependent on industry, need and perception For Asia Pacific region MPLS is twice as expensive as IPL services for high bandwidth (bandwidth continues to drop) MPLS advantageous in AP if bandwidth is below 512k and true meshing is needed (appealing to Fortune 3000 but not Investment Banking Fortune 500) Despite talk of any-to-any, most corporate intranets remain hub and spoke design Voice integration is key advantage but take-up slow since (1) Decision makers within corporations are in different areas and (2) Cost of international voice has plummeted Uptake of MPLS in Asia Pacific is booming

14 MPLS in Asia Pacific Predicted Revenue for IP VPN Services in Asia Pacific Year Revenues $1.69b $2.11b $2.72b $3.36b $4.06b $4.62b Growth 24.9% 25.4% 28.7% 23.4% 20.9% 13.7% 2009 $5.14b * Source: Frost & Sullivan 2004 IP VPN Report 11.5%

15 MPLS in Asia Pacific Factors Leading to MPLS Implementation or Migration Attribute Traffic and Transport Security Pricing Management and Monitoring Facilities Geographic availability Service Level Agreements Scale 1-5 (5 highest) * Source: IDC Asia Pacific Enterprise Users Survey December 2002

16 MPLS in the Asia Pacific 50% of all telephone lines installed in the Asia Pacific in 2004 will be pure IP -Gartner Group Asia Pacific Enterprise Market will adopt IP Telephony at higher rates than rest of world Gartner Group 50% of Asia s Enterprises are planning to adopt IP Solutions in AC Nielsen Survey of Users 2004 Currently for bandwidth above T1/E1 pricing of MPLS ports vs. IPL services is 2:1, by 2007 this will be 1: Frost & Sullivan IP VPN Report

17 Telstra s MPLS: Global IP VPN Save on cost, increase on efficiency 50 Countries with scalable links from 64Kb/s to 155Mb/s World Class Support Intranet / Extranet / remote users Multiple CoS offering Video Conference & VoIP Supported Telstra s MPLS Virtual Private Network (VPN) delivers a cost effective solution to converge your corporate voice and data network on to a single IP based network

18 Asia Pacific Focus, global expertise London Seoul Hong Kong Tokyo San Francisco New York Taipei Manila Los Angeles Singapore Perth Sydney Auckland

19 Telstra Network Infrastructure Investments in over 50 cable systems globally Self-healing cable systems: APNC2, China-US, Japan-US, Southern Cross, TAT, Apollo, other.. RNAL - wholly owned private cable connecting HK, Taiwan, Japan and Korea Other major systems: AJC, SEAMEWE3, APCN, I2I, FLAG, SAFE, TVH, HJK and Tasman 2 (EAC will become active Q4, 2004 Largest Satellite Teleports in Asia (HK, Perth & Sydney) Largest IP backbone in Asia Pacific (internet peering with all major players)

20

21 Top Intra-Asia IP Backbone Providers Telstra China Telecom Asia Global Crossing SingTel ,000 1,500 2,000 2,500 3,000 3,500 4,000 Mbit/s Data Source: IP Backbone Opportunities in Asia-Pacific, Gartner Dataquest, used with permission. * Telstra the largest with over 21Gbit/s of International capacity

22

23

24

25 The Telstra Advantage Global coverage Asia Pacific expertise and incountry support Platform diversity Financial Stability

26 QUESTIONS? Markos Moya Vice President Commercial Enterprises Phone: THANK YOU