Qwest Helps Enterprise Migrations to iQ Networking with Transition Management Services

On July 17th Qwest announced a transition management service to assist customers in migrating from other carrier’s business services to the converged Qwest iQ Networking platform. The service allots a Qwest representative to manage the day-to-day tasks necessary before, during, and after the transition from another service to Qwest’s iQ Networking Private Port solutions.

Recommended Competitive Responses

► Other carriers of all stripes can contend that they already take care of many of the issues that Qwest has packaged together as a project management service. They can tout their sales engineers, for example, as experts that help in the planning and preparation phases prior to a customer switching carriers.

► Large carriers including AT&T and Verizon Business can contend that Qwest’s transition management is no safety net, but instead is inadequate for serving enterprises changing carriers. AT&T has an entire professional services arm dedicated toward IP-VPNs that it can cite as an example.

► CLECs and other smaller carriers can offer enterprise-class customers personalized service. They can claim that they may not offer an off-the-shelf expert manager, but offer this sort of expertise on an individual case basis, and suggest individualized attention for the enterprise account throughout its lifecycle with the CLEC, in order to help secure the contract.

Recommended End User/Customer Responses

► Qwest project management is a great idea for packaging processes that telcos usually cover partially and/or on an informal basis. Enterprise-class customers should look for a satisfactory explanation from any carrier to which they ultimately award a contract, which lets them know transition help will be available in case they need it.

► Enterprise customers considering Qwest project management may do well to seek out reference customers for the new service, or even ask for a phone interview with one of Qwest’s expert managers. The service’s effectiveness rides on Qwest building an internal high-quality expert system, and on bringing solid industry experts to the table in order to help customers move off of other networks and services and to its Qwest iQ Networking Private Port service.

► Qwest’s transition management does not take the place of a professional services engagement, and it is not designed to do so. Companies that can’t handle most of the cutover on their own will need additional outside help – whether supplied by Qwest, another carrier, or a third party such as a consulting or integration firm.

IBM Strengthens Express Offering for SMBs

On July 25th IBM announced a new managed service targeted at helping businesses with fewer than 500 employees protect their computer networks. IBM Express Managed Security Services for Firewall and VPN is designed to implement a security-enhanced firewall and enable clients to connect multiple locations and remote users using the latest virtual private network (VPN) technology.

Recommended Competitive Responses

► Top competitors, such as Symantec, ISS, and VeriSign, can already point to their own managed firewall and VPN solutions and note to prospects that, despite IBM’s extensive resources, it is slow to offer the protection to clients that these providers have already been offering.

► Managed security players, in general, looking to compete aggressively in the mid-market will want to carefully evaluate IBM’s new service elements and look to develop or fill in missing gaps to remain competitive. Players should also look at price and promotion opportunities to differentiate themselves further.

► Symantec should point out that its architecture and vendor-neutrality allow enterprises of all sizes and business demands to take advantage of its managed firewall and VPN solution.

AOL Goes Pro with Its New AIM Pro Messaging Service

On July 19th AOL rolled out its new AIM Pro service, which is available for download at www.aol.com/aimpro. This feature-rich version of the popular AIM service is designed for individuals, workgroups and small to mid-sized businesses, and makes it easy to communicate with colleagues, vendors and customers in real time.

Recommended Competitive Responses

► Messaging competitors in general should have already taken steps on interconnections, given the connection trends that have occurred over the past year. Competitors should review their service platform and looking at ways to interface their IM with other applications as this will be increasingly needed to remain viable in the market.

► IBM can note that in January 2006 it added to its Lotus Sametime to provide clients the ability to communicate with other IM platforms, including AOL, Google Talk and Yahoo!. It can also market its enhancements in audio and video conferencing integration.

► Microsoft should continue to push forward with its own development efforts, demonstrating its ability to integrate messaging into a full complement of communication services for enterprise users. Further, it should play up in marketing future plans and potential integration with applications and other user business processes.

Recommended End User/Customer Responses

► For businesses looking to gain greater control over their employee’s use of instant messaging, this is a compelling offer with a wide selection of features and the unbeatable price point of free.

► Users will want to inquire with other messaging providers to compare their needs against feature/functionality. Ensuring added security may be a key differentiator noting that AOL’s anti-virus is a good first step, but may not fully address all of a user’s security protection needs.

CTC Communications Finalizes Three-Way Merger, Re-Brands as One Communications

On July 3rd Choice One Communications, CTC Communications, and Conversent Communications jointly announced the completion of their previously announced merger, to be called “One Communications” as of July 24. The combined CLEC will serve businesses in sixteen states within the Northeast, Mid-Atlantic, and upper Midwest regions. With revenues of over $800 million, One Communications is the largest privately-held competitive local exchange carrier in the United States.

Recommended Competitive Responses

► Verizon and AT&T should point prospective business customers to their merged operations, and their combined products and services. They should describe competitors including One Communications as having older, incompatible infrastructure and therefore less modern, less efficient, and potentially less reliable services.

► IXCs including Verizon, AT&T, Sprint, and Qwest should each point out that they have national coverage for their services, while One Communications is a regional player. They can describe themselves as being able to help business customers that have national and international aspirations, where these types of customers would eventually outgrow One Communications' products and services.

► All incumbents, including cable providers, can present themselves as stable alternatives to CLECs, where yet another round of bankruptcies (or near-bankruptcies; see Birch Telecom and McLeodUSA) has been sweeping the market in late 2005. Even though CTC was making big financial moves in 2005, it was bankrupt as recently as 2003. Though its mergers with Choice One Communications and Conversent Communications have gone through, a successful integration is still far from assured and could still depend on the continued dedication of investors that could turn fickle.

► In the few cases where they might find themselves in a competitive bid with One Communications, other CLECs can cite that the company's growth into the largest regional CLEC in the northeast makes it less, not more, capable of serving their needs. As smaller competitors, they can position themselves as closer to the customer than a large player like One Communications that's looking to move upscale.

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