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1st April 2005:
Easynet
New
Research Identifies 50% Cost Savings For Businesses Migrating To Broadband
Networks
New research published today by Analysys Research offers
the first comprehensive evaluation of the business case for switching from
leased line to broadband access for IP VPNs. The report, commissioned by
Easynet, is an important step forward in establishing the case for broadband as
the access technology of choice for corporate data networks.
Analysys's
research puts forward strong evidence of the substantial gains to be achieved
by migrating to broadband technology. The report demonstrates how over a
typical three-year contract, a broadband solution can deliver savings of more
than 50%. On a medium-sized network of 70 sites this represents a cost saving
of over GBP677,000. What is more, the payback time – even taking into
account installation and project management costs in migrating to the new
contract – for the switch to a broadband network is less than a
year.
IP VPNs have become the technology of choice for medium-sized and
large companies. Businesses are migrating to these networks as they realise
that a high capacity IP infrastructure can enable the transformation of
business in terms of return on investment and cost savings, providing a
foundation for growth and the ability to run new applications which entirely
change the way businesses operate.
IP VPNs provide a secure, flexible
and lower cost infrastructure option for companies looking to integrate local
and wide area networks, deliver hosted and outsourced applications as well as
business critical applications, connect workers at home or out of the office
and converge voice and data networks. In spite of these advantages, no hard ROI
case for migrating to broadband has been undertaken.
The report is clear
that not all broadband solutions can be considered as a replacement for leased
lines. Only providers of broadband solutions with MPLS are able to offer
guaranteed levels of bandwidth matching those offered by leased lines. Analysys
highlights the significance of Local Loop Unbundling, identifying that only
suppliers who offer broadband over their own unbundled local loop can ensure
that end-to-end quality of service can be offered to match leased line
performance.
Jill Ainscough, Easynet managing director commented, "Some
businesses are wasting a considerable amount of money on their current
infrastructure by putting off a migration to broadband. Beyond the considerable
cost savings, the opportunity to significantly upgrade network capacity to
support new ways of working and transform business makes for an utterly
compelling business case."
Simon Sherrington, Head of Custom Research
at Analysys said, "With more and more companies moving to broadband-based IP
VPNs there is now enough evidence to evaluate the business case. Network
organisations who have invested in pure IP, next generation networks over MPLS
are providing medium and large enterprises with a compelling alternative to
leased lines. When access is offered over the supplier’s own unbundled
local loop, the same high levels of Quality of Service can be guaranteed, but
at a vastly reduced cost."
As the market leader in local loop
unbundling and with a pure IP, next generation network over MPLS, Easynet is an
excellent example of the new breed of IP networking organisation, with the
infrastructure necessary to provide medium and large enterprises with a
compelling alternative to leased lines."
The report includes example of
businesses that have recently made the move over to broadband-based IP VPNs
including Arla Food, Calor, Newcastle Building Society and Select Education.
The reasons given by these organisations for the switch include replacing their
legacy networks, enhancing their network capability, delivering cost savings,
integrating business critical applications and creating the opportunity for a
move to VoIP in the future.
[Easynet broadband]
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