 | Issue: | Latin America II 1998 |
| Article no.: | 1 | |
| Topic: | Extranet Access | |
| Author: | Adriano R. Rosa | |
| Title: | Regional Marketing Manager | |
| Organisation: | Bay Networks, Inc., USA | |
| PDF size: | 20KB |
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Article abstract
Enhanced global competition is driving organisations to conduct business more effectively worldwide. Extranet, the use of the Internet for private communication among the organisation’s employees and partners, can not only improve speed and reduce cost of communications, but also offers many telecommunications operators and Internet Service Providers an emerging revenue stream to offer an exciting new service to their customers.
Full Article
Enhanced global competition is driving corporations to conduct business more effectively worldwide. As a result, organisations are rushing to deploy Extranets to reach out to current and potential customers, resellers, suppliers and employees. According to Pyramid Research, “In Latin America 80% of the largest corporations have yet to implement Extranet technology, but 100% will by the year 2000.” In addition, organisations are looking for a new type of partner to build and manage this virtual private network – the Extranet Service Provider. Many telecommunications operators (telcos) and Internet Service Providers (ISPs) are seizing this emerging revenue stream opportunity by offering Extranet Access as an exciting new service to their corporate customers. By allowing organisations to communicate with customers, resellers, suppliers and employees in real time, Extranets give organisations the quickness needed to succeed in today’s highly competitive global environment. Be it through enhanced customer service, instantaneous order delivery status, just-in-time inventory support and/or on-line job postings, Extranets provide organisations with the opportunity to develop new competitive advantages. Matching or exceeding the quality of current dial-up remote access technologies, Extranet access dramatically lowers communication costs and management time, thereby freeing up Information Technology (IT) sources. With this new-found time, these resources can pro actively focus on developing new, mission-critical applications that are strategic to business. The Internet is Changing Business The Internet provides a robust foundation on which mission-critical business applications can be built. Four key enablers provided by Internet technology include: · Cross-Platform Web browsers: Every device has a browser. Netscape Navigator and Microsoft Internet Explorer run on PCs, Macintoshes, UNIX workstations, and other alternative computing devices – including palmtops, televisions, and cellular phones; · A single network protocol: The TCP/IP protocol extends beyond the Web as the standard networking platform for all applications, such as mainframe access, database queries, and file and print services; · Ubiquity: Users can access data and services from any worldwide location. Employees working outside the office can just as easily obtain corporate data as they can while at the office; and, · Security: Technology advances in encryption, authentication, and firewalls now make it possible to construct an Internet-based network that is more secure than a private legacy network. Organisations have discovered the benefits of the Internet, and are now expanding the use of its component technologies in two new directions: · Intranets: These are corporate networks constructed on open, public standards, allowing organisations to quickly deploy internal applications without the barriers of costly proprietary implementations. · Extranets: Using the Internet for private communications, Extranets open up designated parts of an organisation’s intranet to remote employees and external partners. They provide scalable, secure, managed access over the Internet to interconnect individuals and organisations. And this access can be personalised based on the unique requirements of individual users. During the last two years, Netscape, Sun Microsystems, Microsoft, and others have developed Intranet technologies and products. New products are just coming to the market that will let organisations and their telecommunications partners build Extranets. Organisations will reap big benefits from Extranets Extranets provide key benefits to organisations: Speed of communication: Extranets increase the efficacy with which partners collaborate by linking Intranets for immediate access to critical information. A travelling salesperson no longer calls a distributor for product information. Instead of wasting time waiting for a return call, or searching for the appropriate contact at the distributors, information is accessed quickly and securely over the Extranet; Cost Saving: An Extranet provides immediate access to information in a cost-efficient way. Organisations spend small fortunes creating and printing information for suppliers, distributors, and customers. Posting material to Extranets cuts those costs significantly. Hassle reduction: Managing traditional remote access is a losing proposition for an IT professional. Maintaining equipment and connections, while trying to stay ahead of the access technology changes is impossible. Extranets eliminate these frustrations by allowing the IT manager to outsource the Cumbersome part-modems and physical infrastructure – while retaining control of the critical part-security and user management. Extranets RollOut In Stages The use of Extranets will evolve from simple public information sharing to critical transactions between business partners. The first stage of Extranet development involves organisations furnishing general information on external Web sites with some special information reserved for registered users. The next wave of Extranet activity will centre on opening up the internal network to employees. Travelling executives and sales people will gain secure access to their organisations’ databases, mail servers, and file servers using the internet rather than premises-based remote access servers. Partners will also access these Extranets. Suppliers, customers, and other vital partners will connect through a national Internet Service Provider (ISP) to quickly garner critical information contained on an extranet. For instance, an automobile manufacturer and a parts supplier will collaborate on the design of a new component by jointly viewing and editing Computer-Aided Design (CAD) files over the Internet. Commerce takes off as Extranet links between suppliers and buyers improve supply-chain management. Direct links between retailers and suppliers ensure more precise inventory control. Incidences of a retailer running out of a product or a supplier over distributing its products into the channel are eliminated. By creating open procedures between business partners, Extranets extend electronic commerce beyond online transactions. Extranets Deliver Big Savings As illustrated in Figure 1, business managers recognise significant cost savings by building an Extranet: Reduction of long-distance phone charges: Remote users dial in to a local ISP rather than running up long-distance charges. Hourly access fees charged by ISPs are up to 50% cheaper than the best negotiated toll-free rates. Unlimited use plans from the ISP demolish the access cost equation. Curtailing IT management costs: As the number of users rises, port density must be increased to maintain service, throwing IT into an endless struggle to keep up. Rather than letting IT bear the brunt of heightened access demands, carriers can strengthen their capabilities. Organisations can further save money through integrated products that control access and security. Fewer T-l/E-l lines into the building: A T-l line for traditional remote access only supports 24 connections, but can handle between 100 and 200 Extranet Access users because the traffic is aggregated. Decreased capital spending: With the costly physical network moved to the carrier cloud, Extranet access equipment costs will be reduced up to 80%. Extranets Require New Solutions There are two components of Extranet Access. Firstly, there is the Extranet Service Provider. Only Tier 1 telcos (PTTs) and ISPs will supply the high-performance and low-latency network, dial-in port availability, and service guarantees necessary to become an Extranet Service Provider. Organisations should look for a full-service telecoms provider for extranet connectivity, with their selection criterion expanding beyond price to focus on the business practices and technical merits of the network. Secondly, Extranets require a new breed of product, the Extranet Switch. The Extranet Switch integrates Virtual Private Network (VPN) services, authentication, routing, bandwidth management, firewall, accounting, and simplified management on a user-centric platform. An Extranet Switch sits on the border between private and public networks providing secure, robust access. To satisfy the organisation’s needs, an Extranet Switch must enable scalable access combined with high security, bandwidth management, flexible client support, and full-featured management-all within a single device as illustrated in Figure 2. The key features of the Extranet Switch include: · Security and VPN · Performance · Scalability · Bandwidth Management · Management · Client Software Support Conclusion Support of this critical functionality requires a purpose-built Extranet Switch rather than new software added to a router, firewall, or remote access server. The software and hardware architectures of these older devices do not lend themselves to the task. Only a targeted device will allow organisations to build a safe, scalable and manageable extranet.
