BT Eases Sales Pain with Hybrid VPN Launch
| Oct 29, 2009 | Business Telecom Services - Europe | Competitive Intelligence Report
| Analyst: Sandra O'Boyle
Current Perspective: Positive
Vendor Importance: High
Market Impact: High
Event Summary
October 27, 2009 – BT announced the launch of Hybrid VPN, a managed access solution that lets customers securely access their IP VPNs via the public Internet using IPsec. The solution is available in 130 countries and is suitable for primary or back-up access, using cable or DSL broadband at small sites and sites in remote regions. The solution offers cost-effective IP-VPN access for global enterprises.
Analytical Summary
• Current Perspective: Positive on BT’s launch of Hybrid VPN, a global service that offers secure and cost-effective public Internet access to BT’s global MPLS network, because the new service lets customers resort to broadband access, building enterprise networks at greatly reduced costs compared to dedicated leased line access. Today’s enterprise customers are struggling to bring down access costs while also maintaining a high standard of VPN performance and this service fills a critical gap in BT’s managed network portfolio.
• Vendor Importance: High to BT, because Hybrid VPN helps BT address price pressure on end-to-end MPLS services and pressure from competitors such as AT&T, Verizon and Orange Business Services that already offer cheap and secure Internet access gateway services for small sites and remote locations. These competing services include AT&T ANIRA, Verizon Business Secure Gateway services and Orange Business Services’ Small Office Solution.
• Market Impact: High on the global managed IP VPN market, because BT has a competitive managed IP VPN access solution in Hybrid VPN, which is available in 130 countries and complements BT’s iVPN managed MPLS service. Being able to offer cheaper site access solutions for smaller sites and remote locations should improve BT’s win-rate on new deals and help to retain existing customers that need to lower their access costs.
CLIENTS ONLY
Current Perspective
Competitive Positives and Concerns
Recommended Vendor Actions
| Client access - Full report in Business Telecom Services - Europe |
Recommended Competitor Actions
• Competitors can portray the Hybrid VPN launch as a late-to-market service, and say that their solutions were causing BT market pain until it had no choice but to launch this type of service. Competitors can highlight that they have improved their services over the years, and in many cases have more sophisticated platforms.
• AT&T can highlight that both of its services, AVTS and ANIRA, use relatively inexpensive broadband to provide lower-cost business networking to cost-conscious customers with distributed multi-site networks. They can demonstrate a track record of experience and success selling these products both in the U.S. and internationally. AT&T's IP-VPN services, including AVTS and ANIRA, have been audited for PCI DSS (payment card industry) compliance: These services are popular among retailers for flexible, low-cost connectivity supporting point of sale transactions.
• Verizon Business can highlight that it has a lot of expertise in building secure solutions bridging public/private IP networks. Secure Gateway - Retail & Remote Office is a managed solution that includes proactive network operations center (NOC) monitoring and help desk support. Verizon Business offers next business day shipped customer premises equipment (CPE) replacement, as well as dial back-up and out-of-band access options for remote troubleshooting. Secure Gateway – Retail & Remote Office optionally includes a WAN Analysis toolkit of network planning, usage analysis and support tools to help subscribers optimize the service.
• Verizon Business can also offer Public IP access connectivity to its Private IP Network via its Secure Gateway services. This lets the operator offer in-country connectivity using either Verizon Business IP Access or third-party Internet access, still fully supported as a managed service.
• Orange Business Services can point out its Small Office Solution Select, which is a business-grade ADSL solution that targets remote branches and small sites for customer IP VPNs. Small Office Solution Select is available in 67 countries worldwide, including 26 in Europe. An additional Small Office Solution Select OffNet service was launched in November 2008 providing an extended footprint in 150 countries (including 40 in Europe) if the customer supplies the DSL connection.
Recommended End User / Customer Actions
• Global enterprise customers should consider services such as BT’s Hybrid VPN to manage multiple suppliers across regions and push suppliers to show they can reduce access costs at small sites and remote regions and deliver a better performance.
• Customers should also compare the approaches of other service providers such as AT&T ANIRA, Verizon Business Secure Internet Gateway and Orange Business Small Office Solution Select services with BT Hybrid VPN to determine which one is the best fit.
CLIENTS ONLY
Current Perspective
Competitive Positives and Concerns
Recommended Vendor Actions
| Client access - Full report in Business Telecom Services - Europe |
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