In this article, we discuss the current costs of MPLS for UK and Global business together with what you should consider in addition to simply requesting pricing.
The key approach for any company (Enterprise or otherwise) has to revolve around aligning the specifics of your organisation regarding strategy, technical, applications, security and process to your budget.
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It’s no wonder there is a high churn within the WAN services marketplace on a global basis. The majority of Enterprise IT state that their WAN connectivity is one of the most poorly serviced aspects of their IT services vs. the cost of private MPLS & VPLS attributed to the network.
Setting MPLS pricing is important. The detail is critical to understand.
In many respects, IT Managers are facing an enormous barrage of marketing from leading
While Enterprise network architecture is never just about pricing, the commercials represent a significant component of the decision-making process. VPN Pricing is always a target for IT teams, we handle requests to provide IP VPN models for budget approval on a regular basis.
The WAN has more integration with a businesses competitive edge than ever before with under performing networks creating bottlenecks to new projects, customer delivery and service.
"Budget is often required before beginning a project - whether or not you put in the work before obtaining MPLS costs or after is optional but I think readers will agree, it is necessary."
Above. The elements of WAN pricing.
It’s no longer right to look at one particular data area of network solutions - i.e. you cannot just solve problems with a product, there is more to consider such as change and the risks involved. We hear and talk a fair amount about solution selling but the reality is that every solution has a further impact on the business - e.g. delivery or process related.
We find further problems are created outside of the solution - what first appears to be a great win impacts the business in an unforeseen way.
It is these other aspects, outside of the solution, which require focus. And to uncover these risks requires an approach which has been developed specifically for the sector you’re working within. The focus must be on your particular business.
Strategy vs. Requirements vs. Pricing.
Those companies that use IT to gain a competitive edge work, not by looking at solutions or features and benefits, they work be leveraging IT as a business advantage. Successful network services outcomes require tight alignment of supplier and business. The solution, the service, the process and the delivery must align for a fully successful outcome.
Let’s consider an Enterprise IT Manager looking to move away from a current network service provider due to service related issues. We’ll call this IT Manager, Jack. Jack decides to invite several leading suppliers in to discuss their potential offerings and their MPLS costs. Jack's experience of the typical service provider sales process has not been great in the past - lots of networking features and benefits wrapped in a weak solution selling approach. The issue for Jack is to:
As you will no doubt be aware, every WAN service provider has different aspects, strengths and weaknesses to their connectivity. A collaborative services approach is required to understand which provider has the best ability to act as an enabler to your business.
Once an understanding is gained, MPLS costs are discussed and a deal is struck. This applies to all providers you might be considering. We appreciate that a budget is often required before beginning a project - whether or not you put in the work before obtaining MPLS costs or after is optional but I think readers will agree, it is necessary.
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Stephanie with the WAN buyers Mindmap. A component of our IT Buyers Pack.
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The MPLS bandwidth cost for private VPN has been dramatically reduced over time, with this said, careful consideration into the quality of your service should be considered.
With the average SLA offering 5 9's up time, it is becoming increasingly difficult to differentiate between providers. The PE - Provider Edge - device represents the entry point into the
The majority of marketing content will profess to offer extensive network coverage but the reality is that the connectivity will be based on wholesale tail circuits rather than actual PE coverage.
3G / 4G, EFM, GEA, Broadband and Ethernet.
Lower pricing is achieved if the coverage of PE devices is higher since the tail circuit distance will be lower. Additional bandwidth charges will be made for QoS - Quality of Service - on a per Kbps and Mbps basis.
3G and 4G services have matured to offer a data capability for small office sites and remote users. The reasons are clear - bandwidth is available for a relatively low budget. However, IPSec is required to secure public Internet connectivity and readers should note that the packet latency is often high with 3G and 4G technology even if bandwidth appears to be sufficient. High traffic latency with poor jitter will render a voice application unusable. With this said, this type of wireless connectivity technology is available over short contract terms at a low cost.
3G and 4G offer great failover or fast start service.
Broadband / ADSL services offer some good technology performance vs price, especially when connected to fibre to the cabinet based exchanges. We largely recommend broadband services for smaller offices due to the unpredictable bandwidth together with reliability vs leased line equivalents.
We mentioned 100Mbps and 1Gbps Ethernet earlier within the article. Ethernet leased line service offer excellent uptime, predictable levels of performance and aggressive SLAs (Service Level Agreements).
Ordering a second high availability circuit creates a higher cost for the failover line
A second wholesale carrier local loop tail circuit will, where possible,
Whether or not resiliency is possible is largely dependent on your locality since second fibre routes will either need to be created (costly) or may exist such as the majority of metro locations.
Excess construction costs are not commonly known about before site survey. Customers place an order for an MPLS or VPLS line, the workflow results in an engineer visiting your office to survey the site to (or “intending to”) establish whether work is required to connect your sites line to the providers network.
Above. MPLS Pricing and Failover design.
The management of an MPLS solution covers a number of areas as follows:
Router - the majority of solutions are based around managed Cisco hardware. The actual monthly recurring costs associated with the router are relatively low when compared to the circuits and ports. Dual routers will be required where two lines are provided for diversity.
Security and Cloud are equally important as MPLS when forming managed services.
Service Management - each provider deals with service management differently. Readers will find some providers allocate a dedicated service manager per account in order to provide reporting and escalation where required.
Reporting and Statistics - an area which requires scrutinisation as a good reporting tool will allow organisations to detect trends and make improvements as required. Where issues occur which may not be detected by a support department, the client is able to progress fault investigation.
Project management migration - along with statistics, migration and the processes surrounding project management resource require serious attention to detail. From a value perspective, the resource may be included or represent an additional price depending on the level of support required.