REDCENTRIC WHITE PAPER MANAGED MPLS VS WIRES ONLY VPLS

REDCENTRIC WHITE PAPER MANAGED MPLS VS WIRES ONLY VPLS

DO YOU REALLY KNOW WHAT YOU ARE BUYING As technologies both VPLS and MPLS offer a number of business benefits. However, there are key operational differences between the two, and the old adage stands do you really know what you are buying? The two technologies are marketed in different guises which makes like-forlike comparison difficult and sometimes confusing. However, it can be made simple. Put the technology and the acronyms to one side for a moment, close your mind to marketing spin and think in terms of business benefits and total cost of ownership. Then question one fundamental point will your business gain most from a fully managed IT and Comms delivery model (based on MPLS architecture) or a wires only DIY service based on VPLS? It s true that in our simplified take on things managed Vs DIY is one comparison of the deployment options of both technologies. But it s one of the most topical and one of the most important. So with VPLS marketed as the next big thing we ask is it? And is it right for you? In some respects it s a case of read the small print. VPLS is in fact Layer 2 technology and has been available in various iterations for many years. It runs over MPLS which is Layer 3 and altogether more flexible. So which is the newest and which is best? Well, let s again put the acronyms to one side and focus on some straightforward business considerations to assist decision making. AFFORDABILITY VPLS tends to be marketed at an attention grabbing, affordable price. But so are the low-cost airlines. How quickly does that 19 weekend escape to Barcelona escalate? Add airport tax, add a charge for your luggage, add your in-flight meal, add your seat reservation fee. It goes on. We press submit, the cogs turn, and the cost rather sneakily rises tenfold. It s not a great experience. So now let s think about this in the context of Managed Service versus wires only VPLS. The VPLS model promoted by some technology consultants and system integrators can have a nasty catch spiralling price. The seemingly innocuous menu of pay-as-you-go extras including design, delivery and ongoing support can transform cheap to costly in double quick time. Overheads, for example, will have to include expensive in-house Cisco CCIE accredited network engineers and monitoring software to manage what at the end of the day may be a complex solution. Failing that, the expertise can be outsourced at a frightening hourly rate. These hidden costs increase the risk of budget variance and in an already uncertain economic climate this is a risk too far for many businesses. By comparison, the Managed Service Model of the UK s leading providers is fundamentally different. It delivers budget predictability, complete transparency and a full support wrap. No nasty surprises. No unexpected spend. A WIRES ONLY SERVICE IS PRECISELY THAT BUT MANY BUSINESSES FAIL TO PLAN FOR THE HIDDEN COSTS THAT WILL INEVITABLY FOLLOW FURTHER DOWNSTREAM. WE NEED TO FOCUS ON SELLING INSURANCE, NOT MANAGING OUR INFRASTRUCTURE Richard Corner Group Operations Director Giles Insurance

PAUSE BEFORE YOU COMMIT YOUR BOARD AND YOUR BUSINESS TO A PATH WHICH YOU MAY LIVE TO REGRET. FULLY CONSIDER WHERE YOU WILL BE, OR WANT TO BE IN 18 MONTHS TIME. RELIABILITY In a climate where business continuity and system resilience is all important, consider too the fact that VPLS relies on static routing. The meshed, managed MPLS architecture of leading service providers is dynamic, selfhealing and automatically re-routes in the event of fibre break. Consider therefore the time to fix VPLS and the hidden costs of potential downtime and engineering costs. SCALABILITY As a Layer 3 technology, MPLS will scale more easily than the capped Layer 2 attributes of VPLS. An important consideration for growth hungry business. While it s true to say that VPLS can be developed to Layer 3, it involves additional cost which largely mitigates the original price differential between the two technologies. There is one other fundamental consideration. While the current economic climate signals pain for many it also provides strong growth opportunity for acquisition driven businesses. This is where the flexibility and ease of scalability of the MPLS based Managed Service Model scores particularly well. BEYOND THE WAN In an age of austerity it is sometimes too easy to knee-jerk to the marketing message of low cost. But buyer beware. Not only should you fully consider hidden charges and total cost of ownership issues, but more importantly, technology advisors should also look beyond the WAN. Pause before you commit your board and your business to a path which you may live to regret. Fully consider where you will be, or want to be in 18 months time. Ask your Support Partner some basic questions. In 18 months when your telephone system (PBX) is life expired or needs a software upgrade, what are your options? In 18 months when your server room infrastructure needs overhauling how much is it going to hurt? In 18 months when your travel and subsistence budget is under extreme pressure and the business suddenly appreciates the huge cost saving benefits of Unified Comms (video calling, desktop sharing and more) as a cost effective mechanism for avoiding trains, planes, automobiles and hotels, will it be too late? The list goes on. So is there a solution in VPLS? Yes. But drill into the detail and really understand how challenging that could be with the complexities of N-1 considerations (everything connected to everything else). Then consider the alternative solution offered by the MPLS based Managed Service Provider: a solution that cleverly uses the WAN (the Cloud) as a seamless upgrade path to hosted services voice services, data services, Unified Comms and more. All underpinned by a support infrastructure whose very reason for existence is to unburden you of technology heartache. Easy to access, immediately available and monitored 24 hours a day, every day. Simplicity in a complex world. AS A LAYER 3 TECHNOLOGY, MPLS WILL SCALE MORE EASILY THAN THE CAPPED LAYER 2 ATTRIBUTES OF VPLS.

SUMMARY So do the benefits of VPLS add up? For some businesses with big IT departments and expensive network experts it may be possible to argue the case. But for the bulk of forward looking mid-tier, multi-site businesses who are looking to run lean and efficient IT operations it makes complete sense to opt for the Managed Service Model and the flexibility of MPLS architecture. In life there is often resistance to change. And it s fair to say there is ebbing resistance to the Managed Service Model too. That resistance however has little to do with the technology. It works and works well. The unspoken brutal truth of the matter centres on self preservation how will this affect my job. However, as King Canute himself discovered you cannot hold back the tide. In this case the tide is being driven by visionary IT heads that do not see the outsourcing of IT and Communications as a threat, but more as a career and business development opportunity: the potential to add real business benefit and evolve, perhaps, from IT Director to CIO. It is a mature mindset that sees Blogs & Co as the insurance sales company, not Blogs & Co as the IT Department. In balanced debate the majority of mid-tier businesses will continue to score managed MPLS ahead of wires only VPLS. The tick box of benefits and the simple logic of the pay-as-yougrow licence model of the managed MPLS service is difficult to dismiss. But more than that it s an acceptance by many that the short term saving headlined by wires only VPLS is heavily outweighed by the long term future proofing and business agility provided by managed MPLS service delivery models. The banner message Focus on the core sales operation and let technology experts focus on your IT and Comms delivery infrastructure resonates in a tough trading climate. It never made more sense. Finally, as you plan your way forward, consider that not all Managed Service Providers are equal. Seek out those with their own end-to-end next generation network; identify those who can seamlessly layer hosted services (voice services, data services, Unified Communications and more); short list those with secure funding, proven track records and ask to visit their operation and view their infrastructure first hand. You may find that some Managed Service Providers are more equal than others. WILL MANAGED TRIUMPH OVER UNMANAGED? WILL MANAGED MPLS CONTINUE TO DOMINATE THE NETWORK LANDSCAPE OVER WIRES ONLY VPLS. WE THINK SO. DO NOT BE DECEIVED BY THE HEADLINE CHEAP PRICE, EXPOSE THE HIDDEN SUPPORT COSTS AND UNDERSTAND THE CHALLENGES WITH SCALABILITY, FLEXIBILITY AND RELIABILITY. AND, ABOVE ALL, THINK BEYOND THE WAN. Redcentric Solutions Ltd. Registered Office Address: Central House, Beckwith Knowle, Harrogate HG3 1UG. Registered Company Number 08322856. 0800 983 2522 REDCENTRICPLC.COM

HARROGATE (HEAD OFFICE) Central House Beckwith Knowle Harrogate HG3 1UG THEALE 2 Commerce Park Brunel Road Theale, Reading Berkshire RG7 4AB CAMBRIDGE Newton House Cambridge Business Park Cowley Road Cambridge CB4 0WZ READING 3-5 Worton Drive Reading Berkshire RG2 0TG LONDON John Stow House 18 Bevis Marks London EC3A 7JB INDIA 405-408 & 410-412 Block II, 4th Floor, White House Kundan Bagh, Begumpet Hyderabad 500016 0800 983 2522 sayhello@redcentricplc.com www.redcentricplc.com