The Right Network For Broadband Connectivity
Written by Fritz Stolenbach, director of marketing of Spacenet Inc.
Over the past few years, MIS (management information systems) executives at many of the country's leading retail chains have been on a mission to migrate to IP (Internet Protocol)-based systems and applications, both at the POS and in the back office. This has led many of these executives to initiate urgent searches for cost-effective, reliable broadband connectivity for all of their stores. It's easy to understand the urgency. By leveraging the familiar interface of Web-based applications and the pervasiveness of the Internet to communicate critical information, retailers can virtually guarantee enterprise-wide consistency, scalability, ease of deployment, and lower costs. But without securing that critical "last-mile" connectivity infrastructure, even the most sophisticated systems are rendered literally worthless.
In the minds of these MIS officials, there's little doubt that IP-based applications and broadband WANs (wide area networks) are the future for retailers committed to growth. The debate, however, centers on implementation of these broadband WANs. Thankfully, the alternatives are distinct and easy to evaluate.
Evaluating Terrestrial Solutions
With migration to IP-based applications comes the challenge of determining whether terrestrial technologies such as frame relay, DSL (digital subscriber line), or dial-up are scalable, flexible, affordable, and fast enough to support those applications. Each option has its tradeoffs. Frame relay offers broadband quickness, but can be prohibitively expensive. DSL is often less expensive, but offers inconsistent coverage. Dial-up connections are ubiquitous and fairly inexpensive, but they also vary in quality and are painfully slow. In each case, retailers with nationwide chains must also cope with multiple, last-mile service providers for installation and network maintenance.
A Closer Look At Satellite
Because of this, many retailers are choosing two-way satellite networking technology (frequently referred to as VSAT) for always-on, nationwide, high-speed connectivity coupled with end-to-end network ownership and affordable pricing. Successful retailers such as Dollar General, Sears, and Do it Best hardware have adopted VSAT platforms not only for emerging IP and Web-based applications, but also for mission-critical, front-office functions such as credit authorization and POS polling.
VSAT technology provides these companies with superior broadband connectivity for their front and back office operations – with affordable, persistent connectivity at speeds up to 40 Mbps – regardless of geographic location. With VSAT, they benefit from sub-four-second credit authorizations; consistent, reliable polling; high-speed Internet and intranet access; in-store audio and video services; and a wide range of multicasting applications – all using a single piece of hardware.
High-speed, complete coverage has been a key attraction of satellite services. With two-way satellite, retailers can bring new stores onto the network with minimum hassle. All that's required is installation of a VSAT terminal at each remote site – requiring only a few hours per location. In contrast, terrestrial service providers must provision copper wire or fiber-optic cable to each customer's site. This can be a protracted ordeal, requiring the inspection of lines and dealing with the bureaucracy of the local carrier – if the carrier has deployed broadband services in the area at all – an important consideration in rural locations.
VSAT networks are also more secure than typical Internet links. Because satellite providers control the data traversing their networks end-to-end, they can guarantee data integrity and security more readily than most terrestrial providers. Satellite providers can also give customers specific network speeds, response times, and network availability for a set price per month per site, while terrestrial carriers can guarantee only transmissions on their own network segments.
Challenged with upgrading their IT infrastructures, retailers must examine the network alternatives carefully, to ensure they select a solution that not only meets their application requirements, but also their expansion strategy and customer-service objectives. Every year, more and more retailers are finding that two-way VSAT satellite technology meets those requirements – offering a foundation for current, critical applications with an eye toward the IP-based applications environment of tomorrow.