Best Practices in Vendor and Network Equipment Selection

An ADTRAN White Paper

®®

4 ExecutiveSummary

4 WhyAreProductsinthe NetworkImportant?

Hard Costs

Soft Costs

5 WhyAreStandardizeona NetworkProduct?

5 WhatAretheSelectionCriteria?

Product Capabilities

Vendor Capabilities

Vendor Business Practices

7 WhyADTRAN?

ADTRAN's Network Products

ADTRAN's N-Command MSP Server

9 ADTRANBusinessPractice

ADTRAN's Business Profile

Award-winning Partner Program

ADTRAN's Technical Support

Table of Contents

• Best Practice Guidelines for Offering a Managed Router Service��

ExecutiveSummary

FortheManagedServiceProvider(MSP),the

selectionofthevendorisequallyasimportantas

theselectionoftheproduct.This is particularly valid

when choosing networking equipment for a customer.

While the majority of the MSP’s monthly recurring

revenue may be based on desktop and server manage-

ment services, some of the highest costs associated

with servicing a customer are often due to network

problems and the need for a truck roll. While product

capabilities and reliability are key considerations in

product selection, product costs and the costs com-

monly associated with a vendor relationship should

also be factored into the selection decision.

The success of the MSP depends on being able

to deliver reliable operation and management to the

customer at minimal cost. Accordingly, the costs asso-

ciated with the network, which is the infrastructure

present at all customer sites, are made up of hard costs

and soft costs. These costs typically include:

The decision of which network vendor to use

extends well beyond simply identifying product capa-

bilities offered, but should also factor in all hard and

soft costs, including those related to cost-effectively

maintaining network equipment. It is critical to select

a vendor who understands the MSP’s business and

its value to customers, as well as select one that will

become a partner in the MSP’s success.

Whyareproductsinthe

networkimportant?

Whilemanagingthenetworkproductsmaynotbe

themainrevenuestreamfortheMSP,itcanbecome

themaincostdriver.Consider that all data and,

increasingly, more voice traffic are traversing the net-

work. If a business is using the Internet, has e-mail, is

performing database transactions or is even making

phones calls, then the reliability of the network is crit-

ical. Network equipment must do its job consistently

and relentlessly, or all else fails.

In essence, the network forms the backbone of

even the smallest business and, just like humans,

when it has a problem everything suffers.

Unfortunately, it can be the most difficult to

troubleshoot because many components share the

same “paths.” A problem systemic to one path, while

affecting other paths, is not easily identified. As an

example, a customer may be unable to reach the

Internet. The problem may be an issue on either the

internal LAN or the external WAN. The problem

is compounded when the network design does not

properly consider Quality of Service (QoS) require-

ments. In turn, it may cause problems that don’t

manifest themselves until a specific combination of

application demands exposes it. Even then, the prob-

lem may be sporadic, further complicating the ability

to diagnose.

®

Best Practices in Vendor andNetwork Equipment Selection

Hard Costs Considerations

Hardware Costs May be borne by thecustomer, or may already be sunk costs

Support Costs What does it cost to have ac-cess to on going tech support

Training Costs What training is available and what does it cost

Installation Costs Does the vendor offer installa-tion support; what is the cost

Soft Costs Considerations

Cost of Knowledge Is vendor knowledgeable about applications andtechnical support

Value Add Cost Can (and will) vendor offer knowledge/support for other areas, such as service offer-ings which can reduce the MSP’s operating costs

Competitive Cost Does vendor compete with the MSP for services/customers

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�An ADTRAN White Paper •

Whystandardizeona

networkproduct?

SupplyingmanagedservicestoSMBsresultsin

havingagrowingnumberofindependent

customers,eachcreatingdemandontheMSP’s

limitedresources.Typically, in each customer loca-

tion the router/firewall will be the public Internet

interface, and, as a result, requires periodic updates or

configuration changes. The effort required to manage

the network is exponentially increased by the number

of different device types involved. The possibility of

errors, any one of which may prove disastrous to the

MSP’s customer, also increases dramatically with the

additional devices.

These same issues apply to the network switches,

especially as customer infrastructure changes (e.g.

addition of VoIP). However, having a common switch

topology and capability makes changes easier and

eliminates errors that could affect the customer’s

quality of experience.

Using standardized network equipment permits the

common use of any device management software that

supports configuration backup, bulk configuration

change (necessary firewall changes), or bulk firmware

updates. Using common management software can

reduce costs and eliminate errors – all of which are

costly to the MSP’s relationship with the customer.

Whataretheselectioncriteria

forchoosingastandardized

networkproduct?

Aspreviouslydiscussed,whenstandardizinga

networkforacustomer,itisimportanttoevaluate

boththeproductandthevendorsupportingthe

product. As part of the selection process, the MSP

should consider the following:

ProductCapabilities

1. Basicfunctionality: Does the product properly

fit the customer’s need? Does it have sufficient

capabilities without being overkill, which can

result in unnecessary expense? Using an inte-

grated product with full routing and switching

functionality can save time and money both in

installation and on-going management.

2. Manageability: Are the network products

manageable? Do they offer sufficient SNMP

management? Can they be supported by man-

aged service platforms? Can they be upgraded

and backed up remotely?

3. WANinterface:What WAN interfaces can

the router support? If the customer decides to

change the WAN access, will this require the

router to be changed also?

4. Firewall: Is the firewall adequate to protect the

network? Is there a robust stateful inspection

firewall built into the router or will an external

firewall be needed? Firewall management will

often be a part of the managed service contract

and can be expensive to do. Is the firewall readily

supported? Does it include an intuitive Graphical

User Interface (GUI) for management?

5. VPN: Does the customer require a Virtual

Private Network (VPN) connection to another

site, and does the router include VPN? Is VPN an

added cost item? Is VPN encryption supported

in hardware or done in software? If it is software

encryption, it can place high demand on

CPU performance.

6. VoIPSupport: Is the client using or considering

Voice over IP (VoIP)? If so, network elements

that support VoIP should be chosen to avoid

issues for the customer. Is VoIP traffic recognized

by the switches and routers? Is there adequate

support for QoS with VoIP? Do the switches offer

Power over Ethernet (PoE) based on the IEEE

802.3af standard?

7. VoIPqualityMeasurement: Does the router offer

VoIP quality performance measurements? These

measurements, normally quantified as Mean

Opinion Scores (MOS), can identify if there are

call quality issues and help to quickly identify any

problem source. Are the measurements readily

viewed in a GUI?

8. TrafficAnalysis: Do the network devices identify

and capture network traffic? This information

can be extremely valuable in determining the

cause of network issues. Is this presented in an

easy-to-use GUI?

9. WebsiteID/Filter: If the customer would like

website filtering, does the router operate with a

Web filtering service? Does the router support

inherent URL identification and filtering for a

lower cost solution?

10.Reliability: Does the product have a reputation

for being reliable? Hardware failure can be very

expensive. This expense stems from the cost

associated with repair. The “costly” impact on

the customer and the MSP-customer relationship

should also be factored into the equation.

VendorCapabilities

1. PostSalesSupport: This is perhaps the most

important capability the vendor can offer to

enhance the MSP’s ability to deliver quality man-

aged service at the least cost. Does the vendor

charge for continuing post sales support? Are the

vendor’s support personnel degreed engineers?

Do they have network training? Where is the

support team located, geographically? Is support

accessible during standard or extended

business hours?

2. ExperiencewithSPservices? The customer is

looking to the MSP to get his network operating

again, regardless of the source of the problem.

The router will typically be the connection to the

Service Provider’s (SP’s) network; and if there is

an issue, it is critical that the vendor be willing

and able to support the MSP in troubleshooting

network problems.

3. Pre-SalesSupport: When designing or

upgrading a customer’s network, how acces-

sible is the vendor’s pre-sales support? What is

the level of expertise? Being able to reach design

support in a timely manner and receiving sound

advice can have a real impact on how effective

the MSP is with customers.

4. Installation: Does the vendor offer installation

support, particularly for locations that may not

be practical for the MSP to easily reach? Using

a vendor’s installation service may be a better

option than using a partner MSP in order to

ensure that the MSP maintains control of the

customer’s account.

5. Training: Does the vendor offer training? Does

the training offered cover more than just vendor-

specific equipment? What are the costs associated

with training? Does the vendor offer any onsite

training sessions at the MSP’s facility?

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� • Best Practice Guidelines for Offering a Managed Router Service

VendorBusinessPractices

1. FinancialStability: If the vendor is not

financially stable, the MSP may be facing an

issue of operating a number of client networks

built on equipment that is no longer supported.

In this case, financial stability should be extended

to include product market stability. The ques-

tion is whether or not the vendor is committed

to continuing to support this product market.

As discussed earlier, the network is important,

and using a common equipment topology across

multiple client networks can save money and

mistakes, so it is critical that you choose a vendor

you can depend on to support your

equipment choice.

2. ChannelProgram: While the financial incentives

associated with a channel program may be less

important to an MSP, the vendor’s approach to

the channel is important. How channel friendly

is the vendor? How often do they sell direct, or

in some way remove support from a channel

partner? Do they offer a channel program that

requires little if any commitment while offering

discounts and updates? Interview the channel

sales representative to understand the program

options; and speak with a field engineer to deter-

mine the vendor’s knowledge and capabilities

for support.

3. Competition: Even if a vendor is a financially

stable company and offers a product line that

meets the MSP’s criteria, there is another busi-

ness practice that can diminish the value of the

MSP/Vendor relationship. Competition. For

example, when the vendor offers managed ser-

vice direct to the customer, they are capable of

skimming the MSP’s best customers. A vendor

can also create competition by steering clients to

one of the MSP’s competitors because they are

“higher” in the vendor’s channel program. To

avoid this dilemma, ask for information that will

help you determine the level of the vendor’s

commitment to the channel and their channel

partners. Additionally, speak with other MSPs

and see what their experience / knowledge is of

the vendor and its competitive practices.

Conclusion

Standardizingonnetworkequipmentinvolvesmore

thanahardwareselection.While networking equipment

is a necessary and expected component of managing a

customer’s network, its total impact on the MSP’s profit

margin is often overlooked. The MSP may choose to leave

in place whatever network equipment the customer may

have because it seems more cost-effective than standard-

izing. However, the operational costs, and the soft costs

associated with customer relationship, will more than off-

set the costs to standardize the equipment. Additionally,

the network equipment selected may offer a source of

additional revenue (e.g. URL filtering) for the MSP, but

the type of equipment selected as part of the standardiza-

tion can further impact costs. Similarly, the vendor

partner selected for the equipment purchase also

contributes to the total cost.

WhyADTRAN?

ADTRANbringsauniquecombinationofnetworking

equipmentandpartnersupporttotheMSP/vendor

relationship.ADTRAN’s award-winning networking

equipment is purpose designed for the SMB and is also

ideal for branch office deployments or multi-site

networks. The NetVanta portfolio includes an extensive

selection of cost-effective products to address today’s most

demanding networking requirements, including band-

width expansion, VoIP migration, and network security.

In addition to its reputation for reliability and customer

support, ADTRAN maintains a business philosophy of

cooperation, and not competition. ADTRAN is a trusted,

non-competing partner for the MSP.

®

An ADTRAN White Paper • �

Adtran’sNetworkProducts

n Business-classRouters

u 56k, T1 to T3 capabilities

u VPN with hardware encryption

u Multiple WAN interfaces supported

(T1, ADSL, Ethernet)

n Layer2/Layer3switches

u Fast Ethernet and GigE versions

n IPPBX

u 50 IP stations supported

u Voice Mail

u Auto Attendant

u PBX/Key system operation

n Wi-Fi

u 802.11 a/b/g

u Built into a switch and external WAP

n AllProducts

u SNMP manageable/MS platform manageable

u Very easy to use GUI

u CLI based on “industry standard”

u VoIP enabled (QOS/PoE/Quality monitoring)

u E-mail alerts

u Standards-based

ADTRAN has been building equipment for

the SMB since 1992, and business-class network

equipment for over 10 years. These include routers,

managed switches, WiFi, and recently a small business

IP PBX. ADTRAN also offers all-in-one integrated

products which combine routing, switching, and

other functions into a single package.

Routers: The NetVanta Series of Modular Access

Routers offers a modular WAN interface allowing for

a wide range of connectivity speeds and supporting

the latest technologies. WAN connections include 56k,

T1, multiple T1 up to T3 access rates. All are SNMP

manageable and are manageable by most managed

service platforms

Switches: ADTRAN’s NetVanta Switches include

both Layer 2 (Fast Ethernet and Gigabit) and layer 3

switches. All are SNMP manageable and are manage-

able by most managed service platforms. Available

with 24 or 48 ports and in PoE versions for

VoIP applications.

IntegratedSwitchRouter: The NetVanta

Switch-Router products offer a fully managed

24-port switch (both PoE and non-PoE) with all of

the routing functionality of our NetVanta modular

routers, including a modular WAN interface.

Wi-Fi: The ADTRAN Wi-Fi solution includes a

controller / switch with both built-in and external

lightweight Wireless Access Points (WAPs). This

product, referred to as a multiservice access router,

takes the integrated, all-in-one concept even further

by adding Wi-Fi capabilities: The multi access router

combines a modular WAN IP router with firewall and

VPN, a Layer 3 PoE switch, as well as

802.11a/b/g Wi-Fi.

VoIPCommunicationPlatform: ADTRAN offers

a complete VoIP communications platform that

includes everything needed for a small office. This

solution adds IP PBX functionality to the NetVanta

integrated PoE switch-router while supporting up

to 50 IP phones. This means all of the IP routing,

modular WAN, PoE switching and PBX functions are

integrated into a single platform, greatly simplifying

the migration to VoIP. In addition to the complete

Office in a Box solution for a converged IP voice and

data network, ADTRAN offers a simplified version

for SMBs that already have an IP data

network established.

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• Best Practice Guidelines for Offering a Managed Router Service�

n VoiceQualityMonitor(VQM): Monitors the

quality of VoIP calls and reports on various

parameters which simplifies troubleshooting

call quality issues

Adtran’sN-CommandMSPServer

n Appliance based

n Capable of scaling to over 5,000 devices

n Firmware management/update

n Inventory management

n Configuration backup/restore

n Configuration changes

n VQM Reporting

ADTRAN also offers a unique management tool

that allows the MSP to perform global administrative

tasks on network devices, such as, firmware update;

configuration backup; configuration changes (e.g.

firewall changes). Additionally the n-Command MSP

server will also collect VQM data and present a system

level view of voice quality performance with notifica-

tion of performance issues.

ADTRAN products offer special features which are

particularly useful to the MSP, including:

n CableFaultdetection: A test to detect a cable

fault and the distance to the fault can be

remotely activated

n TopURL: Details top URLs visited and provides

the ability to block access to specific URLs

An ADTRAN White Paper • �

®

Cable Fault Detection with Distance to Fault

Top URLs Visited with Blocking

SelectAction

VQM – with MOS Score for Calls

Award-winningPartnerprogram:

n Very Easy to work with

n VAR Business 5 Star Partner Program Winner

2006 & 2007

n Won Network Infrastructure Company of the

year for 2007

n No direct sales to the Enterprise/SMB

ADTRAN’s approach to the SMB / Enterprise

market is one of cooperation with its partners.

ADTRAN does not sell direct to the SMB, and has

an award winning reseller program.

Adtran’sTechnicalSupport:

n Free Pre- and Post-sale technical support

n Support team are degreed engineers with

various network certifications

n Willing to go beyond just product support to

problem resolution

n Free firmware upgrades

n Full 5 year product warranty

n Partner services can be enhanced with

enhanced services (ACES)

Post sales technical support is perhaps the most

important capability a vendor can bring to the MSP

relationship, since service is what the MSP is selling.

ADTRAN offers world class technical support and is

recognized by users as being “ one of the best, if not

the best technical support they have experienced”.

The n-Command MSP server uses a

communication technique such that the network

elements will automatically initiate registration and

establish a secure communication path across

firewalls using HTTPS.

ADTRANBusinessPractice

Businessprofile:

n Founded in 1985

n Profitable for over 20 years

n 2007 Revenue $477 million

n 1700 Employees worldwide

n Over 2 million units produced in 2007

n MSP Alliance Accredited vendor 2008

ADTRAN has been providing equipment to the

telecommunications market for more than 20 years

with a long history of profitability. The company has

been providing network infrastructure equipment

including routers and switches for more than 10 years,

and holds number one U.S. market share positions

in many of the most widely deployed connectivity

technologies. ADTRAN is also the number two lead-

ing branch office Enterprise router supplier in North

America for 2007, according to Infonetecs Research.

ADTRAN has a highly skilled engineering staff,

and the hardware and software for all products are

developed in-house. As a result, networking products

are designed based on customer feedback, with a

focus on enhancing value by offering superior func-

tionality at reduced cost. In addition to performing

hardware design in-house, Adtran also has the ability

to develop custom ASICs which can further reduce

the cost of products without sacrificing functionality.

ADTRAN products have established a well

deserved reputation as high quality and are often

described as “they simply don’t fail.”

®

11An ADTRAN White Paper •

®

is ready to put our knowledge and experience to

work for you. Allow us to help you deliver natio

wide coverage to all your customers.

ADTRANFinancingAdvantage

Adtran’sFinancingAdvantageprogramenablesyou

toupgradethecustomer’snetworkinfrastructure

withouthavingtopurchaseallnewequipment.

This allows you to gain all of the advantages of using

a common network topology without the customer

having to pay for new equipment all at once. This

program provides a way for the customer to easily

obtain new equipment without significant up front

cash flow and also to obtain value for their

existing equipment

n FinancingAdvantageOfferstheCustomer:

u Fast and easy credit approval

u Flexible and customized credit terms

u Ability to obtain value for existing equipment

u Protection against technology obsolescence

u Improved cash flow

n FinancingAdvantageOffersOurPartners:

u Ability to earn up to 1% based on

amount financed

u Provide longer terms to the customer while

getting paid immediately

u Ability to offer a more complete solution

without high up front costs

Conclusion

There are many vendors that can provide a hardware

solution that may meet the fundamental networking

needs of the typical SMB, but most fall short in offer-

ing the additional functions necessary to increase the

efficiency and performance of an MSP. ADTRAN’s

solutions for MSPs come with a reputation of sound

technology from a company that is experienced,

financially sound, easy to work with, and is an

excellent business partner.

ACES—ADTRANCustom

ExtendedServices

ADTRAN’sTechnicalServiceofferingsarebranded

underthenameACES–ADTRANCustomExtended

Services.Thefollowingdescribessomekeyservices

availableundertheACESumbrella.

PriorityAccessToTechnicalSupport

All ACES Partner Solutions provide you with

priority access to our call center delivering

less than 30 minute response times from Tier 3

Engineers. Partner Solutions allow you to retain

end-user ownership and provide front-line

support.

ADTRAN engineers provide direct support to you

ensuring your success in delivering quality

support to your customers.

ACES Technical Support ensures your engineers

have priority access to the manufacturer's experts

when supporting your customer’s network. Our

engineers can provide confirmation of fault isola-

tion and assistance in performing various complex

networking tasks.

InstallationSupport

Depend on the expertise of an ADTRAN engineer

expertise for your installation support. ACES

Partner Solutions are fully customizable, capable of

managing 1,000+ site deployments while still deli

ering person¬alized support for individual of single

site solutions.

FieldEngineerSupport

ACES customized Partner Solutions allow you to

expand your coverage zone and provide

installa¬tion nationwide. ADTRAN is uniquely

qualified to handle the technical and logistical

challenges of your installation projects regardless

of location. Our dedi¬cated Project Managers work

with an entire team of technical experts to ensure

that all aspects of your installation projects go

smoothly. From the simplest point-to-point, to the

most complex voice and data networks, ADTRAN

ADTRAN is an ISO 9001, ISO 14001, and a TL 9000 certified supplier.

ADTRAN, Inc.Attn: Enterprise Networks901 Explorer BoulevardHuntsville, AL 35806

P.O. Box 140000Huntsville, AL 35814-4000

256 963-8000 voice256 963-8699 fax

General Information800 9ADTRANinfo@adtran.comwww.adtran.com

Pre-Sales Technical Support800 615-1176 toll-freeapplication.engineer@adtran.comwww.adtran.com/support

Where to Buy877 280-8416 toll-freechannel.sales@adtran.comwww.adtran.com/where2buy

Post-Sales Technical Support888 423-8726support@adtran.comwww.adtran.com/support

ACES Installation & Maintenance Service888 874-ACESaces@adtran.comwww.adtran.com/support

International Inquiries256 963 8000 voice256 963-6300 faxinternational@adtran.comwww.adtran.com/international

For the regional office nearest you, visit: www.adtran.com/regional

®

AboutADTRAN

ADTRAN, Inc. is a leading global provider of networking

and communications equipment, with a portfolio of more

than 1,600 solutions for use in the last mile of today’s tele-

communications networks. Widely deployed by carriers and

enterprises alike, ADTRAN solutions enable voice, data,

video, and Internet communications across copper, fiber,

and wireless network infrastructures. ADTRAN solutions

are currently in use by every major U.S. service provider and

many global ones, as well as by thousands of public, private

and governmental organizations worldwide.

ADTRAN, Inc.901 Explorer BoulevardHuntsville, Alabama 35806P.O. Box 140000Huntsville, Alabama 35814-4000800 9ADTRAN

256 963-8000256 963-8004 faxinfo@adtran.com e-mailwww.adtran.com Web site

ADTRAN believes the information in this publication to be accurate

as of publication date, and is not responsible for error. Specifications

subject to change without notice. ADTRAN and NetVanta are regis-

tered trademarks of ADTRAN, Inc. and its affiliates in the U.S. and

certain other countries. All other trademarks mentioned in this docu-

ment are the property of their respective owners. Five-year warranty

applies only to products sold in North America.

ADTRAN products may be subject to U.S. export controls and other

trade restrictions. Any export, re-export, or transfer of the prod-

ucts contrary to law is prohibited. For more information regarding

ADTRAN’s export license, please visit www.adtran.com/exportlicense

Copyright © 2008 ADTRAN, Inc. All rights reserved.

EN1164A

ADTRANAt-A-Glance 2006 Revenue: $473 million

Product Portfolio: >1,600 solutions

User Geography: Installed in 47 countries

Product Warranty: Five-year

Quality Certifications: ISO 9001 ISO 14001 TL 9000