NETWORK WORLD NEWSLETTER: CAROLYN DUFFY MARSAN'S ISP NEWS REPORT
11/10/04
Today's focus:  SLAs: BT focuses on reducing customer risk

Dear [EMAIL PROTECTED],

In this issue:

* BT Americas says it provides more realistic performance 
��targets
* Links related to ISP News Report
* Featured reader resource
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This newsletter is sponsored by Cisco Systems 
Special Report:  Bridging the Gap; Enterprise ROI 

IT professionals today don't indulge in the latest-greatest 
technology for their own sake; instead they concentrate efforts 
on projects that are most likely to help achieve business goals. 
Read about the challenges and opportunities when IT starts 
'bridging the gap' and directly contributes to enterprise ROI. 
http://www.fattail.com/redir/redirect.asp?CID=87948
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Today's focus:  SLAs: BT focuses on reducing customer risk

By Carolyn Duffy Marsan

When it comes to its service-level agreements, BT Americas 
differentiates itself by providing realistic performance targets 
that its customers can rely on for network availability and 
reliability.

"What our customers were asking for is to see an SLA that truly 
allowed them to set expectations about network performance," 
says Ian Bailey, senior product manager at BT responsible for 
SLAs. "What we did was to put together a program to analyze the 
risk by supplier and the risk by location so we could offer 
truly realistic targets. These targets are based on what they 
can get from the network in terms of availability and 
reliability."

BT calls this strategy, which it launched last spring, 
"target-based SLAs." BT's target-based SLAs apply to its 
Multi-protocol Label Switching (MPLS) network, which now 
features 19 nodes in the U.S. alone.

We're looking at BT's SLA strategy as part of an ongoing series 
on the SLAs offered by top-tier ISPs. In previous issues of the 
ISP News Report, we've analyzed the SLAs offered by AT&T, MCI, 
Infonet, Equant, Sprint and Internap. (You can view reports 
about the other SLAs in the ISP News Report archive: 
<http://www.nwfusion.com/newsletters/isp/index.html> .)

Some ISPs such as MCI claim to provide 100% availability on 
their IP backbones. BT instead offers what it says are more 
realistic performance guarantees for its IP network.

"We used to guarantee 100% availability at one point, but any 
customer who puts the tiniest bit of thought into it will 
realize that that's not possible," Bailey says. "For our best 
products, we offer better than five nines of availability 
[99.999%]. But to do that we have to have knowledge of the 
infrastructure and sometimes it comes down to the design of the 
network."

To achieve the highest possible network availability, corporate 
customers have to purchase their network infrastructure from BT 
on an end-to-end basis, says Kevin Moss, general manager, 
product management for BT Americas. 

"We don't have to be the underlying infrastructure end to end, 
but the customer has to be buying it from us so we have 
management and control over it," Moss says. "The network design 
makes the difference between three nines, four nines and five 
nines of availability."

As an example, BT executives describe a customer network that 
has 200 sites around the globe. Only 10 of those sites have data 
centers, so it's critical for communications to remain available 
to those 10 sites. These 10 sites have higher-end services, more 
redundant links and more stringent SLAs than the other 190 
sites.

"What customers are really looking for from us is providing the 
systems engineering expertise to design each site at a cost 
level and design level that meets their needs," Moss says. "If 
they have a five-nines location, we'll give them the right 
combination of ISDN backup and redundant routers and dual access 
links to meet that level of performance."

BT offers immediate service credits for higher-performance 
sites, and crediting is pro-active for customers that have 
dedicated service management.

BT doubled the credits it offers in March, when it announced 
more realistic performance targets in its SLAs. However, BT 
executives point out that they are trying to de-emphasize 
service credits in their SLAs.

"Customers don't want the service credit. What they want is the 
service," Bailey says. He adds that BT is trying to offer its 
customers better feedback about what they've done to fix the 
problem when a failure occurs.

In November, BT will launch a new offering called 
Applications-Assured SLAs in which BT will put probes into a 
customer's network and offer SLAs that include the performance 
of key applications. (Please see the previous newsletter for 
more about BT's Applications-Assured SLAs.) 

With this new offering, BT expects to be more proactive when it 
comes to customer service.

"By putting probes into customers' networks, we'll be able to 
see problems and fix them before the customer even sees them," 
Moss says. "We will be watching their networks and managing the 
service proactively. And credits can be proactive as well for 
the biggest customers."

What experiences have you had with SLAs for Internet services 
such as dedicated and remote access, transport, co-location and 
VPNs? Send me your thoughts at <mailto:[EMAIL PROTECTED]> and 
we'll share them with the other readers of the ISP News Report. 
Hopefully, we'll generate a lively and informative discussion 
about the SLAs offered today by the major ISPs.

RELATED EDITORIAL LINKS

More about BT's customer service
http://www.nwfusion.com/nlisp818
_______________________________________________________________
To contact: Carolyn Duffy Marsan

Carolyn Duffy Marsan is a senior editor with Network World and 
covers emerging Internet technologies and standards. Reach her 
at <mailto:[EMAIL PROTECTED]> 
_______________________________________________________________
This newsletter is sponsored by Cisco Systems 
Special Report:  Bridging the Gap; Enterprise ROI 

IT professionals today don't indulge in the latest-greatest 
technology for their own sake; instead they concentrate efforts 
on projects that are most likely to help achieve business goals. 
Read about the challenges and opportunities when IT starts 
'bridging the gap' and directly contributes to enterprise ROI. 
http://www.fattail.com/redir/redirect.asp?CID=87947
_______________________________________________________________
ARCHIVE LINKS

Archive of the ISP News Report newsletter (formerly Internet 
Services):
http://www.nwfusion.com/newsletters/isp/index.html
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