Extending Dial Access Reach:
The Key To Unlocking VPN ROI

By capitalizing on opportunities to provide ubiquitous, low-cost Internet access, you'll also help your customers realize remote access VPN return on investment.

by Lisa Phifer
VP Core Competence, Inc.

In an earlier column, I wrote about the lucrative return-on-investment fostering VPN market growth. ROI calculations clearly demonstrate that recurring telco charges dominate remote access costs. The key to remote access VPN savings, then, is to eliminate these charges by tapping the far-reaching tentacles of the public Internet. Let's take a closer look at how enterprises can accomplish this goal, and some of the ISP revenue opportunities these options represent.

Outsource the Whole Nine Yards
Enterprises may outsource their entire remote access operation by purchasing a managed VPN service. Smaller enterprises with local teleworkers might purchase remote access VPN services from a regional ISP with high POP density in residential areas of interest. Most larger enterprises with distributed workforces, however, will seek remote VPN access services from an ISP with national or international reach. For example, MCI WorldCom's Remote VPN service allows teleworkers and travellers to dial over 1,000 POPs, using MCI's backbone to reach an encrypting gateway connecting the subscriber's own enterprise network. This service is one of many commercially available products considered in our December, 1999 Managed Security Services article.

These services are ideal for enterprises willing to outsource their VPN. However, there are plenty of companies that prefer to retain in-house control over network security. Some may not (yet) trust third-party security services, while others have business drivers leading them to implement their own security infrastructure.

Leverage Toll-Free Internet Access
Enterprises can purchase widely available business Internet access services from a regional or national ISP. But does combing low-cost Internet access service with roll-your-own VPN gear add up to cost savings? Enterprises connecting purely local workforces may find this option sufficient. But let's consider how this model breaks down when the workforce becomes distributed.

For example, one provider's business Internet access service offers 150 hours/month of connectivity through 900 national POPs. A quick spot check of dial access numbers shows plenty of Philadelphia-area POPs, but looking closer, I find no toll-free numbers for my Philadelphia suburb location in Chester Springs, Penn. If I were passing through, I'd still be able to gain traveler access with 800 access—at $5.95/hour. As a teleworker, I'd probably go with a toll-free regional ISP instead. If I were traveling internationally, however, I'd be out of luck. As this example illustrates, "toll-free" Internet access can break down into a hodge-podge of services, leaving the enterprise without an integrated remote access strategy.

Purchase Value-Added Internet Access
Some providers offer value-added services that make business Internet access more attractive. Take, for example, Intermedia's iAmerica service. Intermedia offers a broad reach: 1,200 POPs, including 200 international POPs in Europe, Asia, South America, Australia, and Mexico. "Out of region" POP surcharges are just $2/hour in Canada. International POP and 800 number access run another $6/hour. But I can assure you, based on recent experience, that $6/hour compares quite favorably to the cost of a toll call placed from Asia! A "POPfinder" phone book can be used to query iAmerica's POP database, updated daily, to locate access number in each location.

iAmerica also goes beyond basic economics in catering to the business market. Browser-based customer network management features allow an enterprise to "self-manage" user accounts, including account activation, deactivation, and usage monitoring by total time, session duration, and POP. Consolidated billing provides usage detail for all accounts on a monthly basis. Enterprises can build upon basic dial access by adding other Intermedia value-added services, such as outsourced enterprise e-mail, fax messaging, and, of course, encrypted remote access (outsourced VPN) services.

This example illustrates that VPN ROI can be achieved through careful selection of an ISP that offers cost-effective Internet access, along with configuration, monitoring, and billing infrastructure that enable enterprise control. Cost-effectiveness depends entirely upon an enterprise's remote user community; international POPs may be irrelevant for some, but a "make-or-break" issue for others.

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