Private data networks keep businesses connected

Communications infrastructure has become as critical to the 21st century as an enabler of commerce as the railways and interstate highways were in the previous century. New private data networks are keeping businesses connected in ways previously thought unimaginable.

Internet Protocol (IP) networks are now the transport routes for local, national and global commerce delivery and a platform for growth and innovation for many companies that are either split across different sites or have mobile working practices.

Private IP networks—so called because they use protocols developed for the internet to carry data—are private networks that all internal data travels on between offices and sites in the business. They are inherently more secure than internet-based networks, and because the network provider can manage the network end to end, offer much greater performance and performance management options than the internet, which is of course an “unmanaged” environment.

Three factors are driving an increased uptake in IP networks in SMEs: a reduction in costs, an ever-increasing hunger for data across businesses of all sizes, and an increase in managed private network option, which is reducing the need to have in-house IT staff run the network.

IDC’s 2009 Telecommunications Survey found not just a growing trend towards managed private network services, but also strong growth in the use of applications on these networks by all businesses, with areas like video surveillance (up to 29%) and video conferencing (up to 40%) more than doubling in the past year. It is the speed and reliability of these networks that allows applications to be run more easily across the business, often boosting productivity, customer service and business efficiency in the process.

Other common applications being used include firewalls and antivirus systems to protect the business (the most popular application by far for small business according to IDC’s survey at 62%), creating a shared data centre, remote working, network optimisation for faster services and the convergence of voice and data (at 42%). Private IP networks are also the foundation to deliver business grade IP telephony.

Because they can support demanding applications like voice and deliver business grade performance, businesses are looking at replacing traditional voice telephony solutions with IP-based telephony. There are potentially significant savings that can be made while enhancing the performance of their telephony solutions, and it is the availability of high quality Private IP platforms that are making this possible after the early hype and disappointment of internet-based VoIP solutions, the quality of which never lived up to necessary standards.

One business that took advantage of this is North Queensland car dealership Carmichael Ford. With his business split across four workshops in four towns, CEO Andrew Carmichael knew it was vital to get the most out of their systems and processes. Having installed a Telstra IP network to help manage the data needs of connecting diagnostic systems to modern Ford cars’ onboard computers, Andrew turned to a network application—IP Telephony—to develop a further competitive advantage. Using this system not only reduced Carmichael Ford’s telephony costs by almost 30 percent*, it also allowed the business to transform its customer service.

Now, when a customer calls a Carmichael Ford staff member, their mobile and desktop phone ring at the same time. If a message is left, it’s emailed directly to the staff member. And if a general call to services, parts or car sales can’t be answered, it is directed to the next available staff member with the customer’s requested area identified.

“That’s a big competitive advantage,” said Carmichael. “The days of walking through a dealership, and hearing someone getting paged over the intercom, having pieces of paper and messages floating around, are gone.”

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