Friday, September 3, 2010
Software services company uses Internet to reduce monthly network costs 50%

From analysis, insight
An Massachusetts-based software services company was tying together eight locations using private-line frame relay circuits, specifically, a T1 with 1.5 megabytes of bandwidth at the central site with smaller yet still-expensive ports at each of the remote facilities. After analyzing the company's requirements for security and response time-the two primary ways to justify the expense of a private network-RTM found that response time wasn't as critical as cost efficiency.

Shared network, shared costs
To reduce operating costs, RTM recommended using the shared infrastructure of the Internet in a virtual private network, or VPN. The manufacturer determined that it could live with the somewhat higher degree of unpredictability of the VPN in exchange for lower costs.

From efficiencies, savings
Even with the added costs of encryption technologies, the VPN costs less than a private-line circuit. The resulting efficiencies saved the manufacture nearly $100,000 in the first year of operations.

"With a VPN, an analyzer at a POP can read data, so we followed RTM's recommendation for encryption technology." - Case study information technology executive



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