This is the second edition of the Manager's
Roadmap to the Internet. The first edition was highly successful. Over 20,000
copies were distributed in a little over one year. Many things have changed
within that time. The Internet grew from an emerging commercial force to a
necessary business tool. The forecast of continued growth is enormous in scope.
It includes the prediction that within five years, 50% of all purchases will be
made on the Internet.
When the first edition was released, only five
percent of business cards had an e-mail address. Fewer had Web site addresses.
Today, that situation is reversed. A business card without an e-mail address is
viewed as incomplete. A company without a Web site is increasingly rare.
The structure of the Internet has changed as
well. When the first edition was released, the Internet consisted of a few major
Internet Service Providers that provided service to many smaller ISPs. These
major ISPs connected their circuits together at several locations to provide
global Internet access. At that time, most of the Internet backbone operated at
speeds of 1.5 Mbps to 45 Mbps and connections to the telephony network were
rare.
Today, all first tier Internet service is
furnished through a few major providers, most of them operated by telephone
companies. This has resulted in faster and more reliable service for companies
that utilize first tier Internet providers. The Internet backbone now runs at
three to twelve times the speed available several months ago, and it continues
to get more reliable and secure. New services are available that integrate
Internet, private data and telephony networks.
The Internet seems to have captivated our
culture. Articles about the Internet can be found everywhere, from the Wall
Street Journal to cooking magazines, and in every conceivable medium. But you've
probably noticed that much of the discussion is hype. Even today, very little of
value has been written on applying the Internet to business use. Although most
businesses are pursuing an Internet strategy, many businesses are still confused
and apprehensive. Confused over the value that the Internet can bring to the
enterprise. Apprehensive that employing the Internet will be expensive and time
consuming or that not being on the Internet will put the enterprise at a
competitive disadvantage.
Simply put, the difference between making money or wasting money on the Internet
is careful planning and choosing strong Internet partners. Used properly, the
Internet is a reliable, secure medium to communicate with customers, vendors,
employees and partners. It can be an effective profit center. It can facilitate
research. It can provide enormous savings in paperwork, travel time and customer
support. And it can make your company more competitive in the marketplace.
This booklet is for senior management in companies of all sizes. Its purpose is
to show you how to use the Internet effectively to reduce expense and increase
profit. We'll also discuss what to look for in selecting an Internet Service
Provider (ISP).
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Let's start at the beginning. The Internet is
an interconnected group of networks and data warehouses originally developed by
the Department of Defense as a way of providing secure, high speed, worldwide
communications and access to data for critical government and research use. It
was opened up to commercial usage in the late 1980's.
But the Internet is more than hardware and
cables. It is a new communications medium. This new way of communicating can be
used for commerce, to inform and to enhance lifestyles. It is these functions
that are of value to your company, your employees, your clients (and your
competitors).
Numbers concerning the Internet are astounding.
Nearly a hundred million individuals connected to a multitude of individual
networks that circle the globe. The best studies available indicate that by the
year 2000, nearly every business in the United States will be connected. Almost
three quarters of U.S. households will be connected. In addition, nearly one
quarter of the global population will have an Internet address. Take a look at
the statistics below. These numbers represent people who will purchase products
and services, seek employment, invest and add to the prosperity of your
company*.
-- 75 Million users in 1998.
-- 200 Million users by 2000.
-- Number of users is doubling each year (and
that rate is increasing).
-- Number of Web sites has QUADRUPLED in 6
MONTHS!
-- In 1997, online commerce represented nearly
$1 Billion. Today it is running at a $6 billion annualized rate. It will exceed
15 Billion by the end of 2000. By 2005 nearly 50% of ALL purchases will be made
online.
--. Nearly 30% of all adults have Internet
access and use it frequently.
-- Nearly 30 Million people go online from
work. The growth in this segment exceeds the growth rate of the Internet.
-- 50% of all users spend more time online
today than they did one month ago. Where are they finding the time? They watch
less television.
-- 10 Million adults are online purchasers
today. This is three times the number just one year ago.
-- 30% have already purchased online, 80% plan
to.
-- The Internet's gender demographics now
reflect the population of the United States.
-- Education: College (67% College Graduates)
-- Family Size: 2.9 (46% in homes with
children)
-- Marital Status: 70% Married or living with
partner
-- Own Residence: 70%
-- Family Income: $61,500
* Sources: Georgia Tech Surveys 7 and 8;
Forrester Research; Jupiter Communications; FIND/SVP Internet User Summary;
Internet Advertising Report; Commercenet/Nielsen Internet Demographics Survey.
Because of the Internet, the world has changed.
New markets have opened. Existing markets will change dramatically, since all of
these enterprises and individuals will be able to communicate and conduct
business at the speed of light, twenty-four hours per day, regardless of their
physical location on the planet.
The original Internet was not user-friendly. Advanced technical skills were
required to make full use of its capabilities. Today, the interface has been
vastly improved, and its power can be harnessed by anyone familiar with a
personal computer (or a television set).
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The chances are better than 95% that your
company already has Internet access. Just a year or so ago, if you wanted
Internet access, you had only one choice. You went to a specialized Internet
Service Provider (ISP). A year or two ago, the Internet may not have been as
important to your business as, for example, your telephone service. So you may
have made your decision on which ISP to use based solely on how much access
would cost, or who had the best ads in the local computer publication.
The chances are very good that your company now
depends on the Internet to disseminate information and improve your bottom line.
Today, your Internet access MUST be as reliable as your telephone service.
And even though the Internet is increasingly
important to your company, it represents only one mode of communication. Your
company also utilizes local and long distance voice services, private data
communications, fax and possibly video and audio services as well. All of these
services require highly reliable and secure network facilities. In fact, all of
this communications traffic can flow through a single pipeline to your premises.
The advantages of this approach are obvious. Cost savings accrue because of
greater efficiency. Fewer communications vendors means less hassle in
coordinating services, no finger pointing, and fewer bills.
It is, therefore, not surprising to learn that
most first tier Internet service providers are now aligned with national or
international telephone companies. That is also why most corporate
communications managers (in companies large and small) choose first tier
Internet service providers.
What is a "first tier" Internet service
provider? Think of the Internet as a tree. First tier providers are the main
trunk of this tree. They provide the base that all of the branches attach to.
But the real question is "where should your business sit on this tree?" Many
local ISP's represent a twig on a small branch, that attaches to a larger
branch, that connects to...well, you get the idea. Some of the branches are so
overloaded that they frequently break off and crash to the ground. This seems to
work out OK for the lightweight birds who frequently sit there, but it's not a
good place to hang your business. You've heard the expression "going out on a
limb"? Obviously, the farther from the trunk you go, the more precarious your
position.
In fact, there is no good reason to jeopardize
your company by going out on an Internet limb. The savings and efficiency that
can be achieved by consolidating communications services generally means that a
first tier provider is more cost efficient than any other Internet resource. And
this is true for small businesses as well as corporate giants.
So, today, it is not enough to simply be
connected to the Internet. Smart communications managers make the Internet a
component in an integrated communications strategy.
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Cost Reduction And Increased Customer Satisfaction.
Last year, a major computer hardware and
software manufacturer performed a study on the effectiveness of their Internet
World Wide Web site. They found that their customers were happier and the site
contributed over one million dollars of bottom line profit to the company in a
single quarter -- and no product was sold on the site. How was this
accomplished? The site was used for technical and customer support. The savings
consisted of:
A reduction in the need for personnel to answer
frequently asked questions.
Printing and distribution costs avoided through
electronic distribution of technical publications and sales collateral.
Product manufacturing and distribution costs saved
through electronic distribution of software updates and patches.
Increased customer satisfaction due to elimination
of "phone tag" and long waits for customer service.
Increasing Sales Volume And Market Reach On The Internet.
A small company selling hot sauce realized an
increase in sales of over $60,000 annually with an investment of a few thousand
dollars in a World Wide Web site. Entertainment companies use the Internet and
World Wide Web to showcase their products to consumers, who can see still
photographs, video clips and hear audio of their favorite entertainers. And, of
course, consumers can purchase the products they preview on the Internet.
Cost Savings And Public Relations For Financial And Legal
Enterprises.
Financial and legal firms save time, printing
and distribution costs by posting legal notices and filings on the Internet.
Electronic publication of white papers and useful information for clients
increases public awareness of the firms.
Increase Advertising Revenues.
Advertising agencies and publishers increase
income from existing clients by utilizing the Internet as part of their
marketing mix.
E-mail Reduces Telephone Bills.
Companies with nationwide or worldwide
communications needs have saved thousands of dollars in telephone expenses
through the use of electronic mail on the Internet. Audio and video conferences
are also available. One of the great advantages of E-mail is that your message
gets through without constant phone tag delays.
Increased Competitiveness And Decreased Costs Through
Collaboration.
An engineering firm based in California is able
to use the best world wide engineering talent for its projects by exchanging
design drawings over the Internet. They are able to complete projects in half
the time of their competitors who must travel across town to design review
meetings.
Reducing Costs By Paperwork Reduction/ Electronic Data
Interchange.
A firm marketing to the government utilizes
Electronic Data Interchange (EDI) over the Internet to process purchase orders
and automatically file reports to government agencies, saving personnel costs
and time involved to receive payments. A major manufacturer uses EDI to connect
all of its suppliers to its purchasing and stockroom computers to provide
automated inventory replenishment, saving a quarter million dollars in inventory
expense per year.
New Global Business Opportunities.
An art broker specializing in major art works
conducts world wide business on the Internet (www.artcellarex.com).
A local plastics firm opens up shop on the
Internet and now sells to a global community (www.ridoutplastics.com).
A group of eight people open up an online
bookstore that now has major publishers scrambling to catch up (www.amazon.com).
A couple of entrepreneurs wonder if anyone
would buy a car on the Internet, so they decide to give it a try. Tens of
thousands respond (www.autobytel.com).
Reduce Expenses By Keeping Employees Productive And Informed
Via An "Intranet."
Thousands of small and large companies use the
Internet to communicate with their field sales forces, including automatic
updates of lead tracking data bases, order entry and electronic mail. The
Internet allows companies to reduce overhead and increase productivity by
facilitating telecommuting of personnel. The Internet can also reduce overhead
by providing centralized, paperless internal access to data bases of personnel
information, company policy, broadcast notices, technical and sales information.
This private use of the Internet for internal communications can be conducted on
the World Wide Web and involves security considerations. When used in this
manner, it is called an "Intranet".
Increase Efficiency By Working With Business Partners On An
"Extranet."
Companies achieve better business relationships
by using the Internet to communicate privately with vendors, customers and
partners. Invoices, purchase orders, catalogs, design documents and other data
can be exchanged in real time on an "Extranet". In this use, each vendor,
customer or partner has a separate section of a Web site devoted to
communicating with them. This one-on-one attention provides an efficient and
enhanced method of doing business.
Reduce Data Communication Costs By Implementing A "Virtual
Private Network."
A Virtual Private Network (VPN) provides
secure, private data transmission over the public Internet. For many companies,
the high expense of an existing dedicated private data network can be greatly
reduced by employing VPN. Other companies can now afford to implement a private
data network due to the low cost. See "Can the Internet also carry telephony,
audio, video and private data?" for more details.
Publishers Increase Revenue, Decrease Costs.
Publishers put their products on the Internet,
increasing circulation, advertising income and reducing the ever escalating
costs of printing, paper and distribution. Publishers also use the Internet to
transmit photographs, advertisements and editorial copy to reduce the time and
expense required to get the publication to press.
Public Service.
A non-profit organization used the Internet to
match donors to individual needs during a disaster. The Internet remained
available while other means of communication were cut off. A county sheriff
posts "most wanted" information, crime statistics and receives tips from
citizens on the World Wide Web. Chambers of Commerce, city and county
governments use the Internet to inform citizens and promote commerce to a
worldwide community.
Research Expenses Reduced.
Researchers have vast data warehouses available
everywhere on the globe. Marketing and competitive analyses, government
documents and requests for bid, international trade information, financial data,
patent and trademark research, demographic and census data, SEC filings and the
entire catalogue of the Library of Congress are a few among the thousands of
research tools available on the Internet.
Direct Marketing On The Internet.
Direct marketers, catalog retailers and people
operating home based businesses use the Internet to sell products. Entire
shopping malls exist in cyberspace, selling everything from flowers to
automobiles.
As you can see from the applications outlined above, the Internet has tremendous
potential to reduce costs and increase profits by the following methods: 1)
simply being connected to the Internet enhances communication and 2) a World
Wide Web site attracts customers.
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The answer to this question is yes. The
Internet is a shared communications medium. It is a network, similar in many
ways, to the interconnected networks of the telephone companies. Today, all
communications traffic between telephone company central offices and between
telephone companies is digital. The content of the message does not matter in
the digital realm. It can be voice, data, video or any other form. Private data
transmission travels over the same facilities as a telephone call.
The same is true for the Internet. In fact,
most "first tier" Internet service providers are telephone companies, as well.
This means that they own their network facilities and are called
"facilities-based ISPs". There are many ways of achieving increased efficiency
and cost savings by using the Internet to deploy advanced services such as
voice, video, and private data. It is important to choose a facilities-based
Internet service provider, to assure that all of these options are open to your
company as you move more services onto the Internet.
While it is true that the Internet has the
capability to transmit any type of digital data, many factors must be considered
to assure a successful implementation. Among these factors are hardware &
software, bandwidth requirements, message addressing, establishment of
standards, government regulation and security. We will discuss these
considerations as they apply to Internet Telephony, Audio & Video and Virtual
Private Networks.
Internet Telephony
Telephone calls all over the globe without toll
charges? That is the promise of Internet Telephony. The implementation of this
service requires hardware and software at both ends of the telephone call. It
also requires sophisticated switching equipment provided by the ISP to interface
the Internet with the world's telephone systems. These items are available
today, and are being implemented by first tier Internet service providers.
But, frankly, there are many challenges to
universal implementation of Internet Telephony. The sound quality over a 28.8
Kbps modem connection does not match that of the telephone network (more
bandwidth and better compression algorithms cure this problem). System designs
that don't make use of the current telephone system require that each computer
have a separate Internet address. This is not true today and would require major
changes of the Internet addressing system. Standards for Internet Telephony are
being implemented, but regulation by government entities could delay and
complicate adoption of the service. There is a special problem that affects
telephone conversations on the Internet, called "latency". It results in
unnatural delays within telephone conversations. It is caused because the
digitized voice message must be reconstructed at the receiving end of the
connection. This means that you hear the voice about a quarter second after the
sender speaks it. A quarter second is not a long time, but it can result in an
unnatural pace to the conversation. The delay is similar to a telephone
conversation that is transmitted over a satellite. First tier ISPs are working
to decrease this delay. While true Internet Telephony with quality similar to
the existing telephone network is possible, it is "not quite ready for prime
time" today.
There are more elegant solutions. Some Internet
service providers can furnish telephone, private data and Internet access over a
single communications channel to your company. The traffic is routed over the
appropriate network facilities. This provides the most efficient use of your
bandwidth while retaining the quality and reliability that you need to run your
business. Facilities-based ISPs are the only ones offering this service.
Audio & Video
Audio and video services work well on the
Internet. Bandwidth is the only serious consideration. Because these services
are usually in one direction, the latency factor is not obvious as it is with
Internet Telephony. Nearly everyone has experienced audio on the Internet. It's
everywhere, and even sounds pretty good over a 28.8 Kbps modem! But CD quality
sound requires about six times more bandwidth, without compression. It is very
important to analyze your needs. The simple transmission of speech may be your
only requirement. If it is, your need to increase bandwidth will be minimal.
Real time, CD quality audio will require about 156 Kbps of bandwidth.
Video is another matter. Real time, full
screen, uncompressed video (like a TV) requires about 6 Mbps of bandwidth.
Clearly, you must analyze your needs carefully. The bandwidth can be reduced
considerably by: reducing the size of the image, reducing the resolution of the
image, reducing the video frame rate and implementing compression techniques.
Virtual Private Networks
Virtual Private Networks (VPNs) are a simple
concept: private data travelling over the public Internet. The same data
transmission services that once required private circuits from point to point
can be provided on the Internet, without associated mileage charges. The promise
of the technology is vastly reduced cost for private data transmission. It's the
dream of every MIS manager, and nearly every public data carrier claims to have
it. So, why are there so few VPN's implemented?
The main reason is that the terminology of this
technology has not been standardized. To some vendors, VPN simply means
encryption on each end of a connection. But there are many more things that must
be considered, such as addressing schemes, bandwidth requirements, reliability,
levels of security and network management. The current lack of standardization
makes it easy for nearly every vendor to claim some form of VPN. But a real VPN
is not defined by the vendor. It is defined by the network requirements of the
company that needs the service -- your company. Each implementation will be
different. The best VPN advice is to avoid any vendor that attempts to shoehorn
your needs into their service limitations. The first requirement is a thorough
analysis of your individual network needs. Only after this analysis can the
various technologies that comprise VPN be implemented properly. Here's a
checklist of things to consider:
Security -- How secure must the data be between
network locations? What is the best way to implement security for dial-in nodes?
Management -- Will the service provider guarantee
end-to-end integrity of your system? Will they provide the management tools
necessary for you to monitor the network in real time?
Service Guarantees -- You know the reliability of
your current data network. Can the VPN provider improve on that level of
service? Up-time? Bandwidth? A realistic expectation is a service level of 99.8%
uptime, including scheduled downtime and downtime associated with local access
facilities. Will the service provider guarantee these service levels?
Obsolescence -- As new standards for VPN emerge,
will your service provider implement them?
Scalability -- Is the design scalable so that
nodes and bandwidth can be added to meet your growth needs? How much capacity
can be added before performance suffers?
Network Design -- Does the service provider use
hardware devices to minimize the delay normally caused by encryption algorithms?
What type of IP addressing will be used to keep your traffic segregated from
Internet traffic? Is the network designed to carry your traffic without delay,
even during peak periods? Does the provider have multiple Network Operation
Centers and diverse routing to ensure that the integrity of your data survives
failure of any network segment? Can the Network Operations centers remotely
troubleshoot the entire network, including connectivity, routers on your
premises and encryption devices? Does the service provider own and control their
own facilities? Are they fiber-optic based to provide the greatest reliability
and integrity of your data?
Measurability -- How will you measure the
performance of your network? Does the service provider offer tools to monitor
performance in real time? Are the tools included in the price? Are the tools
easy to access and use?
Flexibility -- Does the service provider have
access to all of the technology required to meet the needs of your company, both
now and in the future? Can the provider furnish transport mode encryption in
addition to IPSec tunneling mode protocol? If you find that your requirements
are being compromised by the limitations of a VPN provider, it's time to move on
to another service provider.
Any service provider should be willing to
discuss all of these subjects with you, provide a careful analysis of your needs
and present a comprehensive proposal to meet your requirements.
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The answer to this question depends on how many
employees will be working on the Internet, where they are located and what type
of tasks they will be performing. If you have a small office with a handful of
employees, modem connections may be sufficient. If you have a larger office with
more employees on the Internet, or if you have a few employees working with
large files, Integrated Services Digital Network (ISDN) may be ideal. Digital
Subscriber Line (DSL) will increase bandwidth available for homes and small
offices. Cable modems are feasible in some cases, but may not be available for
business uses. A larger company that already connects its employees with a local
area network (LAN) will need a direct connection. These examples do not include
the presence of a World Wide Web site at your location. The effect of a Web site
will be examined later.
The types of connections available are based on the traffic handling capability
of the connection, measured as the maximum number of bits that can be
transmitted per second (a bit is the basic unit of digital communication). This
is commonly expressed as Kbps (kilobits -- one thousand bits -- per second) or
as Mbps (megabits -- one million bits -- per second). The capacity of a
connection is usually stated as the amount of uncompressed data that can be
carried. Modern data compression techniques can increase the capacity, or
throughput, of data up to four or more times.
Generally, light usage can be handled by dial-up modem or ISDN service. Medium
usage would require high speed dial-up ISDN, DSL or fractional T1 service. High
usage will require T1 or T3 connectivity.
Detail on the types of common connections and their uncompressed traffic
handling capabilities are listed below:
Modem
In order to use the Internet efficiently,
dial-up modem speeds of at least 28.8 Kbps are required. At these speeds, a
single user can perform most tasks easily, although working with larger files or
visiting some Web sites can be time consuming. This type of connection is
usually best for a field sales force or light telecommuting where most of the
traffic is retrieving e-mail. Modem connections have the advantage of being
available nearly everywhere in the United States and many places overseas.
ISDN
Basic rate ISDN is a dial-up service equipped
with two digital data channels (called "B" channels), which are typically 64
Kbps. With proper hardware and software, these two channels can be combined for
an uncompressed throughput of up to 128 Kbps. This type of connection is
appropriate for telecommuters and small to medium size firms with light usage on
local networks. ISDN is available in most of the United States, but is less
common in other areas. During the next few years, the use of modems will
decrease and dial-up business Internet usage will be conducted at ISDN or higher
speeds.
DSL
Digital Subscriber Line services are becoming
available in many locations. This service increases the amount of data that can
be transmitted over a pair of copper wires. The speed of data varies in
different locations, but a typical service provides 7 Mbps speed for data
flowing from the ISP to the end user and 1 Mbps speed for data flowing from the
end user back toward the ISP. This type of service is termed "asymmetrical"
because the so-called "downstream" speed exceeds the "upstream" speed. For
browsing the Web, this arrangement makes sense, since it matches the flow of
data during that activity. If the intended use is for uploading large files, the
asymmetrical arrangement may not work as well, and "symmetrical" DSL services
are available for applications where high speed is necessary in both directions.
Cable Modem
This service is generally limited to home use.
Speeds achieved can be very fast. However, if many neighbors are simultaneously
placing high traffic loads on the system, speed can drop precipitously. This
service is offered mostly by cable companies, and may be restricted in ways that
make access to some Internet services difficult or impossible such as Telnet,
File Transfer Protocol (FTP) and services requiring individual Internet Protocol
addresses. This service is asymmetrical (see ADSL above). In many cases the
"upstream" speed is only 14.4 Kbps, making this service ineffective for
applications that require uploading of large files.
T1 Service
This service is available in increments of 128
Kbps (fractional T1) up to 1.544 Mbps (full T1). T1 service is appropriate for
medium to large companies using a local area network (LAN).
T3 Service
T3 speeds range up to 45 Mbps. This service is
available fractionally, as well. T3 is appropriate for large companies or
companies with major Web sites on their premises.
OC3 Service
OC3 offers three times the capacity of T3
service over optical cable. This service is also available fractionally.
Faster Services
Faster speeds include OC12, OC48 and faster
services. These services require optical cable and have capacities twelve or
more times faster than T3 service. At this time, these speeds are employed
primarily on the Internet backbone and are rarely used for corporate access.
"Burstable" Services
Burstable services are typically available at
T1 speeds and above. With this type of service a company is guaranteed a
specific speed of transmission. However, that speed may be exceeded for short
periods of time if excess bandwidth is available from the Internet Service
Provider. The company pays only for the actual capacity used.
Integrated Services
Many businesses today access voice, private
data and Internet services through separate service providers.
The trend among savvy communications managers
is toward integration of these services to provide better service at less cost.
This means that your company may need only a single access for all of your
communications services. In such an arrangement, load balancing is utilized to
provide the fastest possible service. For example, your Internet traffic may be
heaviest during the day, while a large amount of data is transmitted over your
private data network at night. With properly integrated services, maximum
bandwidth is available for both applications, as needed.
The fastest speeds commonly available to
businesses are over a thousand times faster than an average modem connection.
You may need some assistance in selecting the service most appropriate to your
business.
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Don't let these terms confuse the issue.
Intranets, extranets and virtual private networks all use the Internet to
transmit your information. In all of these services, the key is to implement
added security features so that only the intended audience has access to the
data. We'll briefly define each of these terms, and give some guidelines on how
to know if you need these services.
Intranets
An Intranet is a Web site that is dedicated to
provide information within your organization. It can be located at your physical
location, or it can be hosted at an Internet service provider. Various areas
within the Intranet may employ different levels of security. For example, some
employee data may be restricted only to the appropriate managers. If you have
any of the following types of data, an Intranet can save time and expense, while
increasing employee productivity.
Corporate Policy Manual
Human Resources Guidelines
Catalogs or price lists that are constantly
updated
Employee news services
Activity announcements
Calendar of company events
Departmental calendars
Shared company data bases
Customer contact information
Company telephone/address list
Approved vendor list
On-line purchase requests
On-line sales and marketing data
Engineering data and schedules
A careful examination of your own needs will
result in many applications not mentioned here. It should be clear, though, that
an Intranet is a very useful business tool.
Extranets
Communication with vendors and partners
requires security, as well. Extranets are Web based communications tools that
allow private communication to enhance your company's external relationships.
Items that are often found on extranets are:
Purchase orders and inventory control for vendors
Scheduling for vendors, subcontractors and
partners
Company contact list customized for each vendor or
partner
Communication areas for partners and consultants
Track shipments
Catalogs for sales channels
Promotions and contests for sales channels
Posting of Requests for Proposal
Policies regarding external partners and vendors
If your business performs any of these
functions, an Extranet can improve business relationships. Most companies
outsource a portion of their business. An extranet can improve control while
enhancing communications with external entities.
Virtual Private Networks
A Virtual Private Network (VPN) is a secure,
private network deployed on the public Internet. If your company maintains a
private data network today, a VPN can replace much of it while providing great
cost savings. Many companies that don't currently use private data networks can
gain business efficiency by implementing a cost effective VPN. If your
enterprise has any of the following characteristics, you should look at VPN as a
solution.
Remote locations needing access to centralized
corporate data
Geographically diverse branches, departments or
subsidiaries
Need to transfer secure information between fixed
locations
Requirement to support a group of mobile employees
or telecommuters with secure data access
Polling secure data such as electronic commerce at
kiosks
Secure intercompany links for private data
transfer between companies
Allow a virtual team to access and update large,
secure files such as engineering drawings and project management
This is a small sample of the applications that
can be implemented with a Virtual Private Network. More detailed information can
be found in "Can the Internet also carry telephony, voice, video and private
data?"
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Business grade Internet services vary in cost.
A rule of thumb is that basic monthly connection charges will run about
seventy-five cents per kilobyte of speed, up to thousands of dollars for T3
service. Additional costs apply for interconnecting hardware, software and
security. When you compare the cost of service from different ISPs, be sure to
include all of the following costs:
Set-up fees
Security services
Necessary software
Internet access at your required capacity
Telco "local loop" charges from your location to
the ISP
Equipment (CSU/DSU, routers, etc.)
Network management services
Some ISPs bundle all of the required services,
hardware and software into a single price. This approach makes sure that all of
the elements are properly integrated. It also simplifies network management
because the ISP takes full end-to-end responsibility for your Internet service.
Be sure that your comparison quotes contain all of these services.
The total cost for connecting to the Internet
is usually justified by cost savings associated with e-mail alone, which can
reduce telephone costs dramatically. The other benefits of Internet connection,
such as access to vast databases, business news, electronic commerce and
business process automation add to the savings that can be achieved. The cost
for connection to the Internet is being reduced through competition and
reduction in hardware and software prices due to economy of scale (thousands of
new connections per month). Integration of communications services can result in
further economy.
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There are over a half million large and small
company Web sites on the Internet. And this number is growing dramatically. In
1997 the number of Web sites quadrupled in the first six months. Every type of
business is finding success on the Internet, whether it's a local restaurant or
a corporate entertainment giant. The Web has been around long enough that
success factors for most businesses are known. Below you will find an idea of
some of the best uses of the Web.
Sales and Marketing
Once you have a Web site, you are automatically
open round-the-clock and round-the-calendar. People can come in and browse at
their convenience. They can find out what products and services you offer. They
can get as much or as little information as they want. They can ask questions,
get answers. They can even place orders. While there are many reasons for
establishing a presence on the Web most firms establish a site for marketing and
sales. Other uses include improving corporate image, reducing sales costs,
reducing customer service costs and reducing communications costs. Banks, major
corporations and government agencies are already carrying out electronic fund
transfers on a daily basis. Security on the Internet has developed to such an
extent that even small purchases can be carried out electronically. Safe, secure
electronic payment systems are widely implemented today.
Having a World Wide Web site provides several marketing advantages:
Measurability
Who visits your site, how long they stay and
what they look at can be tracked to fine tune your marketing message. If
properly designed, your web site can gather demographic and interest data that
will help you target your market better and add to your prospect list.
Ease of Order Processing
Your Web site can allow your customer to fill
out an order and complete a transaction on line, creating the first step in an
automated order delivery process.
Updated Information
Information on your Web site can be updated on
a real-time basis. This keeps clients and customers revisiting your site to see
"what's new". Catalogs, product descriptions and prices are never out of date
and can be revised with minimal effort and expense. Dissemination costs are
minimized.
Interactivity
Your Web site should be interactive, allowing
visitors to make comments, get technical support, leave messages for support
personnel and navigate the site to retrieve the information they need, whenever
they need it.
Increased Reach
Your Web site can be electronically linked to
other Web sites that serve the interests of your clientele. When such reciprocal
links are established (hyperlinks), your prospective clients can visit your site
at the touch of a button.
Checklist of Things Your Web Site Can Accomplish
Many companies make the mistake of viewing a
Web site merely as an online promotional brochure. In fact, the interactivity of
the Web allows your company to develop a community of interest among visitors to
your Web site. The key is to add value to the visitor's experience. Some of the
things you can accomplish with your Web site are listed below:
Lead Generation
Product Sales
Customer Service -- Frequently Asked Questions
Electronic Newsletter
Promotions, Contests
Cooperative Advertising
Link with Other Marketing Programs
Biographies of Principals
Press Releases
Related Conferences, Continuing Education, Etc.
Legislation Watch
Industry Glossary
Services And Product Lines Offered
Employment Opportunities/Human Resources
Intranet -- Information Used Internally
Extranet -- Information Exclusively For Clients
and Business Partners
Mission Statement
Copies Of Newspaper Magazine Articles and Other
Publications Written By Company
Links To Allied Industries
Links To Appropriate Content-Related Sites
A Search Tool
Customer Surveys
Customer List
Sales Collateral
Financial and Stockholder Information
While the list of potential applications is
extensive, you can probably add items that are particular to your firm's
business and sales activities. With each passing day, business and professional
people are finding new applications, new sources of information, new customers
and a new edge to help them in their specific marketplace.
Promoting Your Web Presence
It is not enough to merely establish a Web
site. You must promote the site actively so that prospective visitors can find
it. Below is a checklist of the steps you should take to ensure the successful
marketing of tour Web presence:
·
Develop Your "Internet Image"
Your identity on the World Wide Web should be
unique. Establish brand awareness by obtaining a domain name (www.yourcompany.com).
Make sure that your online image reflects the image that you present in your
marketing materials.
·
Integrate Your Web Site Into All
Marketing Efforts
Mention your domain name in all advertisements,
brochures and mailers. Your letterhead and business cards should contain your
Web and e-mail addresses.
·
Implement Descriptions and Key Words
(META tags)
The Internet search engines utilize hidden text
within your Web site to properly catalog your site for customers who are looking
for your services. Develop a description of your company in twenty-five words.
Make a list of key words that describe your company and products. This list can
be up to 150 words. Put the most important words at the front of the list. Work
closely with your Web developer to make sure that this information places you in
a favorable position.
·
Submit Your Site To Search Engines
In order for the search engines to list your
site, you must tell them your address. In many cases, you will also need to tell
them where to list your site. Simply access each search engine via the Web,
click on "Add URL", and follow the directions. URL stands for "Universal
Resource Locator" which is the address of your Web site.
·
Link in Many Ways
Use the search engines to find Web sites that
have complementary content to yours. Use the key words you have developed to
search for sites that might be interested in providing links to your site. Visit
each prospective site. If it meets your criteria, write e-mail to the webmaster
to suggest a mutual link. This search will also turn up your competitors.
·
Utilize News Groups
There are probably several Internet news groups
that focus on your industry. Monitor these news groups to determine what they
are saying about your company and industry. Correct any inaccuracies. You may
offer expert advice and opinions in these groups, but refrain from any
commercial messages.
·
Utilize Public Relations in Your
Community (no matter how large)
Make contact with the media within your
community to keep them aware of the success of your Web site. Keep in mind that
your "community" on the Internet may extend to the globe.
·
Gather Visitor Data For One-To-One
Communication
Conduct surveys, contests and opinion polls on
your site. Gather e-mail addresses of visitors. These addresses may be used to
send e-mail messages regarding new information in your industry, your company
and on your site. Keep e-mail messages short and include a way for people to
delete their name from the mailing list. This makes use of the personal,
interactive nature of the Internet to maintain a dialog with those who are
interested in your company and products.
·
Utilize Web Advertising -- Target
Carefully
In many cases, the best way to increase
visitors to your site is to advertise on other Web sites. Be sure to choose
sites with content relevant to your target market and request advertising to be
placed within that content. Some sites can target your advertising by key words.
When someone searches for information using key words that match your product,
your advertising can be displayed.
·
Consider a Web Site Re-Design
If your current Web site was designed by
technologists rather than communications professionals, consider a re-design to
make sure that your message is being adequately presented on the Internet.
·
Measure The Results
Measure the success of your campaign by
measuring traffic to your site in numbers of unique visitors and page
impressions. This gives a good idea of how many different people saw your
message, and how many people visited each page on your site. Don't be satisfied
with a simple "hit count" which measures the number of files opened (there are
many files for each page) rather than the number of times your message was seen.
Of course, the ultimate measure is return on investment.
Don't put up a Web page simply because everyone
else is putting up a Web page. Make the site useful and informative for your
target audience. Make certain the information flows. Make certain it pays off
for the person who has gone to the trouble to come to your site. Make certain it
pays off for you.
Regardless of your objectives, the Internet and Web will put your organization
(large or small) on an equal, competitive footing with firms locally,
regionally, nationally and internationally.
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Yes. But it may surprise you where it should
reside.
The Internet operates globally, and will allow access to your Web site whether
it is on your premises or across the country. So, then, what are the most
important characteristics of a good Web site location? Speed, flexible
performance and the location of your customers. In fact, one of the most
important characteristics of a good Web location is that it is available from
several locations close to your users. The best philosophy is to bring the
content to the user rather than carrying the user a long distance to the
content.
The most common complaint of people attempting to access Web sites is the length
of time it takes to download pages. Frankly, if your customer doesn't get a
clear picture of your Web site within fifteen seconds, they will probably be on
their way to your competitor's site. The second most common complaint is a
"server not responding" message that tells your prospective customer that your
site is busy and not open for business. The most likely cause of both of these
complaints is improper location of the site. This factor alone can mean the
success or failure of your Web project. If a customer tries several times to get
information from your World Wide Web home page and is denied access, or kept
waiting, they will not return.
Until a few years ago, most Web sites were located on a server within the
premises of the company that hosted them. This resulted in many problems. One of
these problems is security. If your home page is tied to your corporate network,
a creative hacker may be able to access corporate data through your Web server.
The second problem is traffic congestion. Most business customers will be
accessing your site at precisely the same time that your employees are using the
Internet to perform their jobs. If there is a single path to the Internet from
your premises, the traffic in both directions can significantly slow down your
customers and your employees. This can be true even if your access is through a
T1 or faster line (see the section on connections for details).
Picture the Internet as a system of roads and freeways. There are the main
freeways that carry traffic into your city (the "backbone" in Internet terms),
and a system of roadways of decreasing size until the traffic winds up at your
place of business. When you open up a Web site, you are increasing the traffic
handling requirements to that of a major thoroughfare. You could go to the
expense of building an expanded roadway to your premises, but there will still
be times when the traffic will become congested.
The answer is to place your site next to the main freeways (backbone) where
large amounts of traffic can move unimpeded. The most advanced ISPs can place
your Web site next to major traffic centers in cities all over the world. In
Internet terms, this means finding an Internet Service Provider (ISP) that can
locate your Web server directly adjacent to the Internet backbone, possibly in
more than one physical location. Not all ISPs have this capability. Your ISP
must operate a portion of the Internet backbone, and that segment must be
directly connected to all of the other major ISP's and Internet exchange points
at T3 (or above) speeds.
Being hosted directly on the backbone by a business Internet Service Provider
has additional benefits. The best ISP's are uncompromising in keeping their
server technology at the highest levels. This means that the best of technology
and specialized staff are always available to your firm. Being located on an ISP
server also means that you won't have to worry about maintenance and upgrade
issues. Also, if your Web site becomes very popular, you can be relocated
quickly to a larger capacity server at the ISP site. With your own server, it
would need to be replaced or upgraded, often at considerable cost.
For these reasons, most companies have
reconsidered their World Wide Web strategies and have moved their sites to a
reputable ISP located on the Internet backbone.
But, perhaps the most important aspect of where
to locate your Web site is the location of your customers. Simply put, the
shorter and wider the path to your Web site is, the better the performance for
your customer. So, if your customer base spans the entire United States, or even
the globe, the answer to the question of where to locate your Web site should be
"everywhere". Amazingly enough, a few high end Internet service providers can
allow you to put your Web presence "everywhere". These first tier ISPs provide
Web hosting facilities at all of the major intersections of the Internet.
Advanced technology allows your Web presence to be physically located at each of
these intersections. Updates are made to all of these locations simultaneously.
Your customer is automatically directed to the location that is nearest, with
the widest open bandwidth. The result is vastly improved performance. This
arrangement also provides failsafe access. If one Internet segment has
difficulty or an individual server is down for maintenance, your customer is
automatically and transparently routed to another open site.
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If your company is large enough to employ full
time in-house programmers to establish and maintain your site, you will gain
some control by keeping this function in your organization. But authoring a Web
site requires an unusual combination of skills, including artistic talent,
technical competence and marketing savvy. One of the most important features of
the World Wide Web is the ability to cross connect (hyperlink) your site with
other related sites so that a simple mouse click can transport your prospective
customer to your site from the hyperlinked site. Your programmers must keep up
to date on all related sites to promote this feature. There are a few people
with all of these talents, but they are not easy to find.
In most cases, it will be quicker and more cost effective to employ a
professional team of Web authors to establish and maintain your site (although
you will still need in-house personnel to supply content input). This is the
surest way of obtaining profitable results from the outset.
How do you find and select a Web authoring team? Word of mouth from satisfied
customers is a good method (just make sure the pleased customer has requirements
similar to yours). Many advertising agencies perform this function, so you might
check with yours.
Be aware that there are several specialties within the domain of Web authoring
teams, such as large data bases, on-line commerce, direct marketing, legal,
financial, high tech, biotech, entertainment, etc. It is rare to find a team
with a combination of experience in all of the specialties. Some ISP's provide
this service directly, but their ability to cover all of the areas of expertise
is likely to be limited. Web authoring is a field for specialists, not
generalists. It is best to seek out a group that has a proven track record
authoring sites like yours. When the World Wide Web was in its infancy, design
was usually accomplished by technologists. The good news is that Web authoring
is now the domain of professional communicators. Be certain that the staff of
your Web design team includes experts in marketing as well as artists and
technologists.
The most efficient way to find such a group is to consult with an ISP that has
no vested interest in any individual Web design firm. They will be aware of the
most competent Web authoring groups to meet your exact requirements.
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The cost of a Web
site depends on many factors. A recent study from Advertising Age magazine
indicated that the initial cost of establishing a Web site ranged from a several
thousand dollars to over $1,000,000. Both the low end and the high end of the
scale were likely to be failures. The low end because not enough resources were
employed and the high end because the cost did not justify the return. So what
is "just the right amount"? Here are some guidelines. These estimates are based
on average requirements. Your expenses may vary.
On an in-house site, authored by your staff, your expenses will include a server
(around $15,000), one or two full time employees for several months (estimate
$25,000) and a high speed connection (about $2,500). Ongoing costs will include
at least one full time employee ($5,000/mo.) and a high speed connection
(estimate $2,500/mo). There are additional costs involved to ensure security.
And there are limitations in traffic capacity, in-house expertise and equipment
obsolescence.
On the other hand, you could have your site professionally designed for $15,000
to $100,000 (depending on complexity) and house it directly on the Internet
backbone on a high speed server supplied by an Internet Service Provider for a
few hundred dollars in initial fees and a few hundred to a few thousand dollars
per month, depending on the size of the site and the traffic to the site.
Factors that may increase cost are the need for secure commerce and extensive
data bases. Today, most companies are choosing this option.
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A few years ago, the answer to this question
would have been "maybe". Just a few months ago, the answer would have been
"probably". Today, the answer is almost certainly "YES!" In almost every field
of endeavor, the Internet provides a means to enhance your business, and the
proof is in the successes that already exist.
Are all Internet projects a success? Definitely not. Many businesses don't
utilize the Internet wisely. Success requires a carefully thought out business
plan, proper selection of an Internet Service Provider and wise selection of
other professional partners. In the end, this is good news.
This means that a small or medium sized enterprise can successfully compete with
a much larger company by intelligently using the Internet.
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The Internet backbone is very reliable. It is
as reliable as the major long distance telephone companies that your business
relies on every day.
The reliability you will experience on the Internet depends entirely on the
reliability of your Internet Service Provider. If that ISP is also a major
telephone company, the Internet can be extremely reliable for your business.
Businesses need the most reliable connections available. These business grade
connections (as opposed to recreational grade connections) are obtainable only
through ISPs that actually provide Internet backbone service. These are the
"first tier" providers who are operated by national or international telephone
companies. There are many ISPs that claim to provide business grade service, but
do not provide direct connections to the backbone. You can assure that you get
the reliability you need by asking three questions:
1.
Is your ISP connected to several Internet
exchange points where other major ISP's connect their backbones to assure
reliable, high speed service?
2.
Does your ISP have a network architecture
that includes OC-3 or higher speed, redundant backbone circuits and alternate
routing so that if one path is disabled, other paths can be used to assure
maximum reliability?
3.
Does your ISP employ reliable, telephone
company grade facilities? Are they a telephone company?
Every ISP that is capable of handling your business requirements will answer
"yes" to all of these questions.
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Yes, with some qualifications.
No network is entirely secure. Most security breaches are from the inside of an
organization. However, a business should take prudent precautions to assure that
its Internet connection is secure enough to meet its individual requirements.
For most businesses, the Internet in its native form is secure enough. Others
may have need for a "firewall" to separate the Internet connection from
corporate data. Still others may require encryption or message authentication to
meet their business needs.
Increasingly, companies need two types of data
services. The Internet provides "public access", connecting different companies
and providing a medium for communicating with customers, vendors, employees and
partners. Sensitive data is carried over private data networks that provide a
high degree of security.
But the lines are blurring, as the Internet
gains more capability to provide efficient, cost effective ways of doing
business. Virtual Private networks provide secure data transmission over the
public Internet. Secure intranets and extranets allow private communication with
employees, vendors and business partners over the Internet. It is important to
choose an Internet Service provider that can address all of your needs.
The bottom line is this. A thorough analysis of your security needs should be
performed before you connect to the Internet. Your ISP should be able to discuss
this topic intelligently, make recommendations and be able to provide any
hardware, software and services necessary to meet your Internet security
requirements.
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First, be aware that a business Internet
Service Provider is providing service, not a commodity. One of the most common
mistakes that companies make in selecting their provider is to assume that all
Internet providers are equal. They clearly are not.
As companies increasingly use the Internet, they find that it becomes a critical
part of their business. It must be as reliable, secure and easy to use as their
telephone service. A recreational provider may appear to charge less than a
reputable business Internet Service Provider because they offer an unacceptably
low quality of service for business usage (although they may be doing a fine job
for recreational users). This can have an unfortunate effect on your bottom
line, because it will waste your employees' time, delay or fail to deliver
important communications, and frustrate automated business processes. And those
"savings" may be illusory in another sense. Often, first tier providers,
operated by national or international telecommunications providers, can save
money by integrating Internet, data, voice and other telecommunications
services.
Ask yourself the following questions:
"Does this Internet Service Provider have the
ability to act as a single source for all of my communications needs?" A single
source solution can result in both cost and operational advantages.
"Does this ISP own their own network facilities
(known as a "facilities-based" ISP)?" Facilities-based ISPs offer a broader
selection of services, and can offer end-to-end responsibility for delivering
your communications traffic.
Questions and evaluation criteria you'll want
to consider when considering your Internet Service Provider follow.
Business Orientation and Experience
Most Internet providers target their services
to recreational or individual users. Make sure your provider has a long history
of providing business service. Be sure to ask for a list of customers in your
line of business.
Full Range of Services
Does the provider offer a full range of
services (from low-end to high-end), or is it simply filling a niche? If you
have to increase or decrease your service level, will they be able to
accommodate you? Will you have to switch providers?
Can the service provider integrate Internet,
data, voice and other telecommunications services?
Does the potential provider offer true one-stop shopping? Will they supply
equipment, manuals, training, consulting, on-site analysis, installation and
other support as well as basic service?
Availability
Availability for direct connections is measured
as a percentage of uptime for the network under control of the ISP. This should
not be less than 99.8%, including scheduled maintenance and local loop
problems. Be sure to ask if the ISP's availability statistics include these
factors. Your ISP should be willing to provide a Service Level Agreement (SLA)
that includes availability guarantees including scheduled maintenance and local
loop outages.
Network Topology
Network topology is one of the most important
factors to consider when selecting an ISP. By reviewing the firm's network
topology, you can determine how vulnerable the network is to outages, how much
capacity is available when the network is operating at peak load periods and how
well the provider understands sound network engineering.
Reputable providers will provide information on their network topology because
it gives them the opportunity to explain how well they understand their
business.
Examine the network topology closely. Is the backbone operated by the ISP? Is
the backbone at full OC-3 or higher speeds? Does it connect directly to several
Network Access Points (NAPs) to prevent a single point of failure? What private
peering arrangements does the ISP have? Who are the private peering arrangements
with? Where are they located? On critical routes, is the backbone redundant so
that traffic can be carried even though an outage occurs?
Once you've evaluated the physical topology, you need to examine the speeds of
the backbone links. Your organization's network connection can only be as fast
as the slowest link in the network path. Does the ISP utilize SONET technology?
SONET (Synchronous Optical Network) services have many advantages:
The service can be configured at speeds up to OC48
in a ring configuration, as well as OC3C and OC12C in a linear topology (see
"What Type of Connection is Best For My Company?").
SONET architecture offers increased network
survivability as well as the benefits of central monitoring and control
capabilities.
SONET provides self-healing rings that can
automatically reroute transmissions in as little as 50 milliseconds.
Even if your organization has a T3 node, if
there is only a T1 link between your connection and the Internet backbone,
throughput will be limited to the slower speed. It would be the same as hooking
a half-inch garden hose to a fire hydrant. The limiting factor is the garden
hose, not the fire hydrant. If the ISP claims to have a high-speed backbone,
determine if the speed is available now or is being planned. Determine if the
topology you are being shown is operational or still in development. Some ISP's
have been known to show links that aren't operational as part of their backbone
infrastructure.
Some providers claim to have a high speed backbone but they may only have a
"fractional" T3 connection, running at the slower range of T1 speeds.
Next, examine the external links of the ISPs' backbones you are considering. If
they have a single connection to the rest of the Internet, there is the
possibility of a single point of failure. Look for ISP's who have multiple,
direct connections to other network providers. The more connections, the better.
This shows that the provider is concerned about external connectivity and isn't
dependent on a third party for interconnection.
If the potential provider has a single connection to the outside world, find out
how often it fails and how long they are usually isolated. "Not very often" is
not a sufficient answer. If they can't provide these statistics, they aren't
managing their network very well.
Technical Staff
The most important area to check when choosing
an Internet Service Provider is the quality of their technical staff. These are
the people who get your connection installed and keep it and the network
running.
Check the staff's experience in TCP/IP data networking (TCP/IP is the network
protocol that the Internet requires to work). They should have several staff
members who have had extensive experience in this area. While it is unlikely
that you will actually deal with these senior people on a day-to-day basis, it
is reassuring to have them available when needed. Make certain that the
technical staff consists of individuals who are experienced with TCP/IP and not
just "networking-related" projects.
Make certain that the Internet Service Provider has adequate staff to handle
unusual situations, which may arise. Many service providers are vulnerable to
failure due to inadequate staff capacity during heavy traffic or network
difficulties.
Network Operations Center
Take a close look at the provider's Network
Operations Center (NOC). It should be staffed round-the-clock and
round-the-calendar. The network must be accessible to your employees who may be
working outside of normal business hours. Also, do not forget that the Internet
is global -- your connection or Web site should be conveniently available for
all time zones. A number of Internet service providers claim 7 x 24 operations,
which means that someone is always available to answer the phone but they aren't
capable of dealing with your problem. An answering service or beeper is no
substitute for a trained network engineer. Insist that one be constantly
available and not simply on-call.
Determine how the NOC is staffed. While it is normal to have junior staff
members on duty at odd hours of the night, it is critical that senior personnel
be onsite between 6:00 a.m. and 9:00 p.m. Monday through Friday. If a connection
fails during "normal" business hours, your requirements deserve to have senior
people immediately available to resolve the situation.
The Network Operations Center should be constantly testing each link of the
network to provide proactive service to fix a problem before it affects your
business.
The NOC should be equipped with an Uninterruptible Power Supply (UPS) and a self
contained diesel generator to power the operation during a power outage.
The NOC should be redundant (mirrored in several geographically dispersed
locations). A local disaster at the NOC site should not interrupt your service.
Organization Stability
Determine how long the firm has been in the ISP
business. Are they in the business for the long haul?
Determine their financial stability. If they are publicly held, ask for copies
of their audited financial statements. If they are a division or subsidiary of a
larger corporation, determine the fiscal health of the parent firm and their
commitment to the ISP services industry.
Determine if they have one or two major accounts that provide a majority of
their revenue. The loss of these accounts could dramatically impact their
ability to maintain quality of service for your firm.
Customer Base
Find out how many customers the provider
actually has. Some firms claim all the individuals they have connected, while
others only count organizations and firms that are connected. The number of
professional organizations willing to pay $500 to $1,000 and more per month for
connectivity is a better indication of the quality of professional service than
the number of individuals willing to pay $10 to $20 per month.
Comparison Shop
Carry out a price/benefit analysis.
While prices should be competitive when compared to other business oriented
providers, beware of prices that appear to be too low. The least expensive
providers make compromises on backbone capacity, access capacity (dial up and
ISDN) and support services. Be sure that your ISP is as professional as your
organization.
Some providers may appear to be less expensive than others. Make certain you are
doing an "apples-to-apples" comparison. Don't compare no-frills service with
full-service offerings. Make certain that "Basic" service with one is the same
as "Basic" service with another provider. Don't get trapped into incurring the
added expense of having your employees provide services that the ISP should
provide.
Make sure that the prices quoted include
everything that will be required to provide the service. Does the price include
Telco local loop charges? Does it include routers and other necessary equipment?
Does it include maintenance, proactive monitoring and network management? Some
providers do not include these charges so that their price will appear lower.
Your consideration should be limited to first
tier providers. These providers have the resources to properly service your
Internet needs. They are in the business for the long term. And in the long
term, they are the most cost effective solution, since they also have the power
to integrate your telephony, private data and Internet requirements.
Ask for customer references. Talk to them. Find out what issues current
customers have. They may be the same as yours.
Once individuals and organizations begin taking advantage of the power,
flexibility and capabilities available with the Internet and Web, they wonder
how they ever got along without it. The key is to select a responsive and
responsible service provider that can help you optimize the use of this new
professional and business tool.
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The answers to the following questions will
give you a good idea of how a prospective Internet Service Provider will be able
to fill your business needs.
* 1
*
Q. Is
your service mainly oriented toward businesses, or do you also provide service
