Private WANs For Better Performance

The explosion of transaction traffic, large files, mobile devices and rich media, coupled with carrier bandwidth throttling are filling up Internet WAN connections and contribute to WAN slowdowns. Companies have combated these problems by localizing large files at remote branches, and setting specific schedules for when these files can be transferred elsewhere and by setting quality of service prioritizing some traffic over others. Unfortunately, the continuing demand for high throughput transactions, and the evolution of large data and rich media files as mission critical data payloads, no longer make these strategies foolproof practice. Companies that require better performance for their businesses are rediscovering an age old solution: building their own private networks.

The Principal Financial Group, which has financial services offices nationwide and internationally, wants to appear as a local financial presence in every community it serves. To do this, the company identified four key network communications requirements: securing long-term connectivity between key metropolitan data centers, improving disaster recovery and failover for communications, establishing greater carrier and geographical network diversity, and creating buying leverage for voice, data and Internet services. The solution was a private network which The Principal negotiated with several different carriers.

"Essentially, we've leveled the playing field," said Keith Kratochvil, IS, Voice and Data Functional architect. "Because we own connectivity to Denver and Chicago, it's like The Principal is located in those cities from a telecommunications standpoint. The strategic advantages are significant. It puts us in a whole different position with carriers, both domestically and internationally."

Iowa Hospital Systems (IHS) needed a gigabit Ethernet network capable of point-to-point transport of medical files, x-rays, MRIs, etc., to 11 hospitals, 168 clinics and 63 different communities in Iowa, western Nebraska and eastern Illinois. The network had to provide sufficient bandwidth for large files, rich media and standard traffic on a 24/7 basis, along with fail over resilience so that peak performance could be maintained at all times. IHS was also looking ahead to new health care industry regulations, and the movement to an electronic medical record (EMR) which would put additional pressure on bandwidth and network throughput. Most importantly, the hospital system wanted a reliable health care information infrastructure that would ensure solid connectivity and upward scalability as electronic communication demands continued to grow--elements that raw, commercial Internet simply couldn't guarantee.

By making the private fiber optics/broadband investment, IHG experienced an almost immediate payback with an 8-10x growth of bandwidth availability that was attainable without further investment. It also attained control over its own communications infrastructure in order to meet highly demanding QoS, security, latency and redundancy requirements instead of putting that infrastructure in the hands of commercial carriers."When you're building a corporate communications infrastructure, what's important is the communications between your data center and your remote locations, not just your internal LAN (local area network)," said Lee Seidel, Chief Engineer for Fiber Utility Group, which negotiates, installs and manages private networks for enterprises. "You buy these external data links from carriers, and they can get expensive. If you're using a data center, you're also most likely going to be using communications at a DS3 (T3 line with data rate of 44.736 Mbits) or higher level. Cost acceleration in this model occurs as data payloads grow and network capacity has to be expanded."

For those considering a private network, it's important to develop a cost model that establishes how long it will take to recoup an initial private network investment with savings from commercial lease lines  that will no longer be needed as  data payloads continue to scale upward. A second key is in getting help early by making a small investment into the private network concept before taking bigger steps.

"In this way, you can see the business case and understand how you will realize the gains," said Seidel. "Begin by looking at your entire LAN and WAN topology, and how your networks are being utilized today and in the future. Also consider QoS and fai lover issues.  Often an enterprise can use a ring architecture in a private network instead of the usual point to point pipe model that prevails with carriers. In a ring structure, you have natural built-in redundancy, because your communications are traveling both east and west on the ring at the same time. So if there's an outage on the east side of the ring, all traffic simply switches west."

It remains to be seen how many companies will opt for private networks, since initial capital outlays can be quite daunting when compared with contracting for leased lines.  But for enterprises with large data payloads and QoS, or for smaller companies in industries like entertainment where rich media file transfers are the core of the business, private networks offer a way around the growing gridlock on the Internet highway.