Optimum Lightpath Extends its Game to End-to-End Managed Video Transport

On August 19th Optimum Lightpath introduced Lightpath Managed Video service, which provides connectivity and digital video encoding/decoding. The service addresses the needs of the media sector doing business inside the carrier’s greater New York City area footprint. Lightpath Managed Video is an addition to the carrier’s Video Services Portfolio, which also includes Lightpath Video Transport. The service supports ASI and multiple ASI feeds, SD-SDI and HD-SDI, and redundancy and protection options over Optimum Lightpath’s carrier Ethernet network.

Analytical Summary

► Current Perspective: Positive on Optimum Lightpath’s launching of the Managed Video Transport service, because many companies in the video industry do not see managing the process of protocol conversion, encapsulation and transport as part of their core business. Optimum Lightpath has a high amount of fiber connectivity reaching studios, production facilities, broadcasters, television stations, video distributors and of course cable head ends: Adding a managed video service to its video transport service helps ensure that the company is not leaving money on the table.

► Vendor Importance: Moderate to Optimum Lightpath, because the carrier had received numerous requests from companies in the video industry to extend the Broadcast Video Transport product it initially launched in 2007 (see “Optimum Lightpath Rolls Out Broadcast Video Transport over Ethernet in the NYC Metro Area,“ August 30, 2007). Managed Video Transport gives the carrier’s sales force a value-add to up-sell existing video transport customers to a higher margin product, and an opportunity to return to customer prospects with a more comprehensive video package, capable of delivering end-to-end service even if some terminations are out-of-region.

► Market Impact: Moderate to competing video transport providers because Optimum Lightpath’s strength lies in its extended New York City metro area: The carrier can deliver managed video out-of-region, but loses competitive advantages for out-of-region key video production markets such as southern California. But Optimum Lightpath has a strong in-region video industry in its footprint, and may be able to generate momentum in the vertical to win over companies using high-speed terrestrial and even satellite video transport for point-to-point and limited multipoint feeds.

| Client access - Business Network Services - U.S. | More information

T-Systems Globalizes On-Demand Computing

On August 19th T-Systems announced that it has globalized its Dynamic Computing platform and can now deliver SAP on Demand from its data centres in the USA (Jacksonville, FLA), Brazil (Sao Paolo), Singapore and Europe (Germany) and can provide local service delivery and support in all regions. It has also achieved certification from SAP for global hosting and application management. The SAP On-Demand solution also includes an online platform for online monitoring and provisioning.

Recommended Competitive Responses

► While AT&T rolls out its Synaptic Hosting capabilities on a global basis, it can differentiate with T-Systems by pointing out its significantly larger global network, but also its plans to roll-out VPLS across its infrastructure with the first locations in Europe going live this summer. It can stress that T-Systems has communicated no such plans for global VPLS. It should also highlight that unlike the German operator it has a standard online management and monitoring platform to give customers visibility for all AT&T ICT services.

► Incumbent operators should consider launching on-demand computing solutions within their respective national markets. Unlike many alternative carriers, they can offer stronger in-country network reach, data centre presence, customer base, scale, partnerships, sales and operational support. All of these elements play to the incumbents’ advantage and are essential for targeting SMEs and large enterprises on the national level.

► Network operators can also position themselves as the delivery platform for enabling Software as a Service (SaaS) applications. They should do so by pointing to their respective IP backbone, data centre presence and understanding of client/server environments. Operators can position on-demand services as a new delivery model and point to existing services such as hosted e-mail, IM, presence, and Web conferencing that can be offered as a SaaS solution today.

| Client access - Business Telecom Services - Europe | More information

Verizon Gets the NAC of Security for the Extended Enterprise

On August 12th Verizon Business announced a suite of services to help customers understand, deploy and manage network access control (NAC). Verizon Business Professional Services will assess customers needs and requirements to establish the optimal application of NAC within an enterprise, help evaluate and select technology vendors, design the infrastructure, configure and install the NAC technology, and provide customer training. The company works with leading NAC vendors, including Cisco, Juniper Networks, ForeScout Technologies and TippingPoint.

Recommended Competitive Responses

► Top-tier managed security services providers have been a bit tepid in their embrace of NAC services. (Symantec is the only leading MSSP that fields its own NAC product.) In response to this announcement, these vendors will at the least need to do a better job marketing their existing capabilities to provide NAC-related professional services. Many of these baseline services such as requirements definition and assessing current security posture are easily addressed by these organizations.

► IBM supports several NAC offerings through its Global Services business. The longest running supports the integration between Cisco NAC and Tivoli Security Compliance Manager. IBM offers a set of professional services to facilitate this partnership. A more recent partnership is between IBM ISS and Mirage Networks. That relationship focuses on integrating the Mirage NAC product with ISS’ Proventia SiteProtector. ISS is, of course, part of IBM’s Global Technology Services group. Neither of these relationships seems particularly active for IBM. The company should have a much more active role in the NAC market and should consider an acquisition of technology that it could support with additional professional or managed services.

► AT&T could quickly positioning itself as a NAC managed services provider by simply re-positioning the Mirage NAC product, which it resells as part of its PremierSERV managed services portfolio. AT&T currently markets that service as AT&T Managed IPS.

► Competitors that differentiate themselves primarily on ease of use, such as Napera, should point to Verizon’s entrance into the market as validation of their claims that most NAC products are simply too complex to deploy. These vendors should emphasize that their products are deployable, even by mid-market customers, without expensive professional services engagements.

| Client access - Internet/Managed Services - U.S. | More information