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Value
most firms, network only infrastructure which bits bytes everyday business travel; also source increased revenues increased productivity. your network fails, your employees stop working, your customers business partners stop interacting with you. Clearly, network failure disastrous. yet, dire network failures network maintenance subject cost constraints. networking, price less than performance relevant.
recognize tradeoff between mission-critical benefits network costs, concept Network Value, Value, useful. Briefly, Value thought ratio, benefits network divided costs network. More explicitly, benefits network quantifiable business results attributable network less cost network downtime (that lost business lost productivity that results when network available). cost network total cost ownership network, including equipment, bandwidth, operations. mission every manager maximize Value enterprise. Further, manager another approach depending unique demands particular network. LAN/campus environment, example, present constraints different from those presented environment.
Economics Networking
Article
But, regardless type network, purposes which that network will dedicated, thinking about Value allows focus three strategies: Maximizing application performance. (This strategy focus meeting application bandwidth Quality Service (QoS) needs.) Minimizing network downtime. (This strategy focus meeting need business-critical availability.) Minimizing lifecycle costs operation. (This strategy should pursued across multiple dimensions, including people, bandwidth, capital.)
Tony Rybczynski (TonyRyb@nortelnetworks.com) Director strategic marketing technologies Enterprise Solutions division Nortel Networks. over years experience packet switching technology. writes monthly Inside Networking column magazine.
Maximizing Application Performance
performance requirements traditional applications relatively well understood: three-second response times mainframe applications; latency high-quality telephony highquality audio video conferencing; bandwidth FTP, e-mail, HTTP apps. these familiar situations, network design objective meet performance requirements lowest cost. Further, pursuing this objective often resulted multiple application-specific networks being deployed enterprises.
With convergence infrastructures broad range applications, however, design objective totally flipped. Now, objective "maximize performance network dollar." applications, many which critical business success, drive need applicationoptimized networks. These applications include e-commerce Internet-enabled call centers, distance training, integrated messaging, telephony, enterprise resource planning, multimedia collaboration. Several these applications delay-sensitive (for example, those with telephony real-time video component), putting additional requirements network. Generally, legacy applications need bandwidth; latency bounds under normal operating conditions, well congestion failure conditions; network availability. optimal approach toward bandwidth requirements differs in-building wide area networks. LAN, over provisioning often attractive approach. WAN, packet-based integration inter-site traffic ATM, frame relay, (ultimately) IP-based virtual private networks approach that provides best price/performance.
enable applications, networks require range networking capabilities meet manage latency bandwidth requirements. These capabilities allow business-critical applications receive preferential treatment from network, while minimizing complexity end-to-end user management security. pivotal function that allows management this environment policy management, which implementation rules policies, idea being dictate user connectivity network resource priorities. Policy management includes three fundamental functions: provisioning configuring network switches routers; enforcement provisioned policies; verification auditing) network operation.
Minimizing Network Downtime
Because many critical applications depend network, network downtime cripple business. cost downtime loss business loss productivity that occurs when network available. spectrum, cost downtime brokerage operations high $100,000 minute.
Value: Economics Networking
cost downtime also goes beyond immediate impact lost revenue lost productivity. From customer's business partner's perspective, being "open business" incalculable damage company's customer satisfaction, reputation, brand identity. From internal perspective, employee morale suffer. These indirect consequences network downtime also have significant future costs associated with them, including loss marketshare. networks enable more more business-critical customer-centric applications, cost downtime will continue rise. Network downtime caused wide variety factors, including loss power, loss facilities, network overload, service provider problems, software bugs, hardware component failures. According Merit study 1,867 users, most frequently cited causes network resource outages related network overload (that performance overload, peak load, insufficient bandwidth). study also suggests that network overload attributable insufficient infrastructure, well lack appropriate enterprise management tools detect overload conditions proactively, before they become source contention within enterprise.
Techniques employed ensure network availability differ from organization's network next based existing network configuration, mission-critical character applications network, cost downtime. However, several design techniques common highly available networks. These fall into three categories: Switch level redundancy line card, switch fabric, common control, power supply levels. Network level redundancy (for example, link-level redundancy, automatic routing failure recovery, congestion controls). End-to-end network fault performance management tools allowing network managers detect resource problems proactively tweak network design maximum availability. eliminate problems highlighted Merit study, network should have enough capacity handle critical applications peak load. campus, this accomplished using high-performance switching. Across WAN, where bandwidth expensive, solution often more bandwidth, more efficient existing bandwidth.
Minimizing Cost Operations
Total cost ownership (TCO) consists cost equipment, bandwidth, network operations. LAN/campus, bandwidth inexpensive relative engineering. Thus, bandwidth used eliminate complexity this environment. Across WAN, other hand, bandwidth relatively expensive. 1998 Yankee Group study indicates that bandwidth biggest cost area, accounting percent 1998 rising almost percent 1999. same study indicates that cost operations accounts more than percent 1998 expected account percent 1999. Capital equipment costs, which make balance, least significant aspect TCO. However, choice equipment does influence effectively bandwidth managed. major requirement infrastructure minimize bandwidth required across wide area.
Value: Economics Networking
Operations costs include installation, training, troubleshooting, maintenance, other costs associated with managing users, applications, equipment network. According study Infonetics, network management staff spend approximately percent their time management percent their time management. balance staff time spent programming, systems work, administrative tasks. Time spent management generally higher higher complexity, daily grind moves, adds, changes, fewer outsourcing options than WAN. WAN, Yankee Group indicates that routers take percent support staff time. Given large number routers used WANs, this statistic alone surprising. However, Yankee Group have some troubling findings with respect router management. 1999, percentage support staff time consumed routers expected increase percent. average number routers support staff member manage declining, while average cost support staff member increasing.
reduction accomplished using bandwidth effectively function both facilities equipment) managing operations effectively. Bandwidth effectiveness simply having enough bandwidth support optimal application performance doing lowest possible cost. Increased bandwidth effectiveness achieved through high-performance switching LAN/campus through consolidation multiple traffic types across WAN. Layer workgroup switches Layer routing switches campus backbone, both with application awareness, provide solution that provides substantially improved price/performance that adapt increasing traffic demands, unpredictable traffic flow, priority requirements mission-critical applications. Enterprise switches consolidate multiple traffic types, including voice, video, legacy data, transport over WAN. Operational effectiveness involves minimizing hassle expense associated with installation, training, troubleshooting, maintenance, other tasks associated with managing users applications network. other words, it's about making network easier operate. Because difficult manage what can't see, end-to-end network management tools most important factor achieving operational effectiveness.
end-to-end capability across provides complete network view simplifies network manager's ability manage mission-critical applications. networks become unified, ability manage telephony (voice) with these same network management tools will increase importance. best network management software incorporates Web-based GUIs, distributed data collection tools, configuration management tools, multi-vendor network management support. High-performance switching campus significantly reduce high operations costs associated with router management. Switch-level features such self-testing capability, built-in support RMON, 10/100 Mbit/sec auto-sensing ease management requirements individual devices. reduce headaches updating routing tables, devices across network should self-configurable. ease process managing addresses, server solutions exist that enable dynamic address management. These solutions utilize Dynamic Host Configuration Protocol (DHCP). Finally, automatic network failure recovery minimizes recovery time event network failure.
Value: Economics Networking
Product Information
This part published article.
Nortel Networks Passport* 6400 series enterprise network switches decrease network operating costs reduce network complexity, while increasing network performance availability. Passport 6400 series scalable, multiservice enterprise network switches includes Passport 6480, 6440, 6420. Passport 6400 series integrates local area network (LAN)/wide area network (WAN) networking into single easily managed solution. Passport series effectively transports enterprise's LAN, data, telephony, video traffic over leased lines, public private frame relay, asynchronous transfer mode (ATM).
Though exhaustive list, factors highlighted above important effectively managing both bandwidth network operations. Effective bandwidth management lowers total cost ownership while ensuring capacity business-critical applications. Effective operations management lowers total cost ownership, increases network uptime, allows network managers allocate more time strategic issues.
Focusing Value Help Your Bottom Lines
Maximizing Value through applicationoptimized performance, business critical availability, lower cost operations path improved shareholder customer value. System-level approaches leveraging technologies that optimize LAN/WAN infrastructure maximum price/performance, that extend security across VPNs Internet applications improved business reach, that combine telephony leverage connectivity applications, that unify network management across multiple domains simplify operations elements unifying enterprise networking strategy that maximizes Value.
Reprinted from CTI® magazine, volume dated April 1999, published Technology Marketing Corporation, Technology Plaza, Norwalk, 06854 USA. Copyright 1999 Technology Marketing Corporation, rights reserved. information about annual subscriptions, call 800-243-6002 203-852-6800 visit publication's site www.ctimag.com.
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*Nortel Networks, Nortel Networks logo, Globemark, World Shares Ideas, Unified Networks, Passport trademarks Nortel Networks Corporation. other trademarks property their owners. Copyright 1999 Nortel Networks. rights reserved. Information this document subject change without notice. Nortel Networks assumes responsibility errors that appear this document. Printed USA.
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