Stepping into IP - Enterprise Networks Asia -
[Cached Version]
Published on: 3/1/2005
Last Visited: 7/6/2006
Andrew Yu, head of infrastructure at CLSA, admitted, "the technology [IP] was very new to us-it wasn't just like choosing an ATM network."
After a selection process of eight to nine months, implementation of the new IP network commenced in August 2004.Completion of the network occurred by end of 2004.The network is completely owned and operated by CLSA and not operated as a managed service, noted Yu.
The initial idea for the IP VPN emerged during Q3 of 2003, when SARS broke out, causing the brokerage to rejig its usual investors forum format and have a multiple site global video conference so speakers and visitors did not need to fly into Hong Kong.To support the video conferencing, a fully meshed ATM network was needed-which comes at a high cost, observed Yu.
...
Evaluating the technology and the right vendor was quite a challenge, acknowledged Yu."IP technology is very new to us, and the topology setup and the service models between the different vendors were very diverse," Yu added.
...
Yu attributed this to PCCW's uncertain situation with its Reach joint venture with Telstra, plus ongoing speculation about its other fixed network assets.
...
Currently Equant is the provider of that network and CLSA is reviewing the situation, with the contract ending in the middle of 2005, noted Yu.
Right now the IP VPN is used primarily for video conferencing and for voice services between the connected sites.So far no data replication has occurred on the new network but plans are in place to have this happen later in the year.
Before any decision is made regarding any potential migration of core data to the IP network, there are many factors still to consider, Yu stressed.Does the brokerage stay with a multiple vendor approach for its networks or go with a single vendor?Can the IP network, while performing well with current multimedia applications, sustain the performance when trading transaction data is added as well?
And what if ATM costs fall significantly, which would negate any cost saving that a wholesale migration to IP would be expected to bring?These were all key questions that had to be answered first before any commitment to IP was made, Yu noted.
Also to be considered was whether going with a single vendor would be a wise choice, which was implied if the bank decided to migrate completely to the new IP network."We find that most core network outages are caused by software, [from] a single vendor," stated Yu."By having multi-vendor support, the risks of outage are reduced."
While cost savings were a factor in pushing the brokerage towards IP, Yu was keen to stress the investment in an IP VPN was not just based on cost cutting.He highlighted network performance and more flexible management as key drivers for its implementation.
...
Any migration to an IP network must be carefully considered and while almost all agree that IP networks will be at the core of most enterprises in the future, deciding on the move to IP depends on the critical nature of the network, noted Yu.
He stressed the need to look hard into the network topology of any IP offering."See what kind of diversity is offered, what failover is available-does that actually suit your needs?"mused Yu.