ABCN… the missing piece

The Internet: It’s Service or Die…

Tony Freeth, PBL Medusa

It’s Service or Die…

• The Big Picture -

• Clearing the Site

• Getting the Service Mentality

• Investing into Expansion

• Moving to Managed Services

…and we are: Phoenix Broadband

Let’s Share some Views?

What’s your view?• Telephony revenues ?• Internet revenues?

• Is it working? • Who’s complaining?

• What’s the future hold?

Our users just do email & web

We let our customers provide their own access

We can’t justify IT support

1. The Big Picture

Q: The Internet and Customers in 2008?• More Dependent?• Same?• Less Dependent?

Q: How will it change? • More volume• More bandwidth• Quality Levels

Don’t rely on the rear view..

…Internet use is changing,And customers need centers

Microsoft:”Please delete the past…”

Microsoft Plans• “Live” Products are

managed, hosted.• Everything moves to the

datacenter.

Microsoft call this: “On Demand”

and satisfy this with “Software as a Service”.

“Reduce dependence on IT

professionals”

“Change software to be web-based…”

“I’m spending most of my time with

telecommunication companies…who are

critical to the partnership in online

services”

Who is this man…?

“70% of sales could be online services by 2008/9”

Be very afraid…

• Social use and Business Use borrow from each other (news, training, conferencing, communities)

• Think you can manage this with just 1.5 Mbps when one stream takes 20-40% ?

• The average UK 40 office centre now has 3 radio streams running at any time – that’s 180 Kbps or 15% of T1 capacity.

Meet LonelyGirl15 YouTube receives 65,000 vids/day.

LonelyGirl15 has 1 mil viewers

18 Doughty St. Internet TV Broadcasting

Do some calculations…

Unmanaged Internet Brownouts : 1 min blockage for every 10MB• File - up & download• Remote file retrievals• Big mail and email marketing

User Application Kbps Rate T1 CapabilityRadio 80 15-20

Remote VPN 250 4-6

IPTV stream 300-600 2-4

Remote Apps 45 25-35

Skype 40 25-40

VoIP H323 100 10

Videoconference 800 1

“Blindfolded into the future”

Anyone recognise this picture?

Customers use new apps

Over time, resources prove inadequate

Centre staff fail to recognise

generality of problem

Best customers leave

“…they aren’t here so they’re

not our customer base…”

2. First - Clear the Site

Some questions:

• Contractual basis of your Internet?

• Are you compliant?

• Who is the biggest user?

• How’s the capacity used by application?

• Who’s abusing the service?

• Who’s complaining?

• Can you extrapolate demand to 2008?

• Is everyone secure?

Getting Value for what you do now…

Describe how you sell Internet now?• Help yourself basis?

• Fair Use proviso?

• Service Plans?

Basic Plan = 1-2GB/desk/month

Plan or Penalty for excess?

Basic users under control

Excess users need action

Everything specified, costs controlled

CenterSuites

Methods of Managing Internet Demand…

1. Provide & forget: “Law of the Jungle”2. Restrictive use3. Expand Capacity and sell dedicated4. Apply a management device to sell by value

Internet

3. Getting the Service Mentality

Service Mentality… Some things you’ll never hear:• “We’ll get it there …eventually” (Fedex)

• “Have it our way” (Burger King)

• “Who says we should try?” (Avis)

Market share from 11% to 35% in 3 years

Do you do services anyway?

The purpose of services

What’s your view on the purpose of services?

Packaging for premium: “Services sell space”

Intangible : “Trust me - this is what we do”

Revenue-driven: “Space PLUS services

= $$$”

What’s the message?

What do you, the Centre, say about your Internet Services…?

“You can’t do this at home,

folks…, you can only get it here.”

“All your needs… now and in the

future”

“Ready on day 1”

…duh?

“Love the Experience”

Service ExperienceService is delivered by general

staff and helpdesks…Not by remote specialistsCustomer-facing is key

Service is “product”A standard set of actions &

resourcesA menu of standard choicesSame process every time

The Experience Standard“Have it your way”

• Plug in and go, no set up• Good support information if

needed• Laptops no problem• Virtual Hotdesks no problem• Reassurance that security is

managed

Start here: Some simple value-add services

Simple Service Revenues• In-building print & scan• Public IP, routed access• Remote Access (port

forwarding)• Managed VPN using off the

shelf boxes• Software VPN access• Remote Desktop service• Managed secure email• Managed security• Hosted appliances for simple

applications (see ABCN)

Not rocket-science, just good suppliers.

4. Getting Serious – Invest into Expansion

You can’t sell it if you don’t have it.Your infrastructure investment:

• Acquire equipment asset or a managed resource

• Write a process • Skill up• Learn to sell

Get the Infrastructure right:•Plan bandwidth for now – and later

•The “right sort of bandwidth”•Service =>

Reliability => Resilience

Why?Attract customers who need to spend more.

Capacity & Quality

Capacity• If you have capacity, customers

buy it.• Multiple connections usually

cheaper than 1 “fat pipe”• You can mix types of

connection to lower costs.

Bandwidth Quality• You can sell different types of

bandwidth for different applications

• “Quality” means priority, suitable for application

Resilience• 2+ circuits can be made resilient• Resilience can be premium product or

a centre-wide benefit.

Traffic Management raises capacity

from 30% to 95%.Maximising by sorting

A Look at Live Traffic Management

Live Traffic

Paid Priority + VoIP starts

Mixed General Traffic sorted by type + paid

priority

Down Circuit max-ed

5. Moving to Managed Services

Managed services = “Software as a service”

Current spend : Desktop + software + services:• US$ 500 /month/desktop• 150 seat center =

US$75k/month

What you need by 2008Suppliers (eg: ABCN)

InfrastructureProcess

Everything IT now a Service…

Managed Servers and Applications in 2006• Exchange 2003• Office 2003• Collaboration software• Business function software

CRM, Accounts, Employment

• Vertical Market software• Etc etc etc

Coming Soon by 2008Sold by you

• Microsoft “software as a service”

• Business infrastructures online

…“Will it ring on my yacht?”The Voice & Data Hub:• Ring everywhere• Voice, mobility and

collaboration integrated

Finally, some predictions

• Internet is sold by quality, or by “application-grade”

• IT Companies become extinct by 2012

• IT staff become “Business Resource Planners”

• Centres become “Serviced Infrastructures” for business

• Centers are a significant channel for software and portals

Some Thoughts to Take Home…

Someone has to pickup those

revenues – who will it be?

Who would you rather trust – An IT Support

company or your friendly Business

Centre?If IT becomes a

monthly bill – who is best placed to issue it?

ABCN… the missing piece