NTT/Verio IP Services
Summary
NTT/Verio’s strategy is to concentrate on value-added network services (Internet Protocol virtual private
network, enterprise/managed hosting and managed security) and targeted markets within the U.S.
Table of Contents
Overview Analysis Pricing Competitors Strengths LimitationsRecommended Gartner Research Insight
List Of Tables
Table 1: Overview: NTT/Verio Internet Protocol Services Table 2: Price List: NTT/Verio IP Services
NTT/Verio Inc.
8005 S. Chester Street, Suite 200
Englewood, CO 80112, U.S.A.
Tel: +1 303 645 1900
Internet: www.verio.com
Overview
Table 1: Overview: NTT/Verio Internet Protocol Services
Backbone Infrastructure
Global The NTT/Verio Global Internet Protocol (IP) Network backbone spans Asia, Japan, North America and Europe.
Europe An STM-4 ring links London, Amsterdam, Frankfurt and Paris. Madrid is linked into this infrastructure via dual STM-1 interconnections. Two direct STM-16 links connect the U.S. to the U.K. and the Netherlands.
Asia/Pacific Backbone points of presence (POPs) are located in Tokyo, Osaka, Hong Kong, Taiwan, Australia, Korea, Singapore and Malaysia as well as in other key locations. Over 16 Gbps Transpacific IP capacity connects the U.S. and various Asian countries.
U.S. Leases fiber optic capacity primarily from Qwest (approximately 12,000 miles) and, to a lesser extent, from MCI and other national and regional telecommunication carriers. Cisco 12000 Gigabit Switch Routers (GSRs) and Juniper Networks M20 edge, and M40, T320 and T640 core routers are utilized on the network, and Cisco Catalyst 6500 switches have been installed in NTT/Verio’s Web-hosting data centers. Packet over SONET is used exclusively on the backbone.
NTT/Verio is deploying OC-192 and OC-48 backbone connections in its core 22 domestic markets, along with upgrades to the established OC-3 and OC-12 backbone connections where necessary. Juniper Networks’ Gibson (T-640) and Bombay routers are being implemented on the backbone to enable 10 Gbps intra-POP traffic. Metropolitan Area Networks (MANs) have been deployed in 11 markets. Trunk Line Speeds DS-3, OC-3, OC-12, OC-48 and OC-192.
Table 1: Overview: NTT/Verio Internet Protocol Services
Backbone Infrastructure Content Hosting Centers
NTT/Verio and parent company NTT Communications have closed many data centers, keeping 11 facilities operational in the U.S. (in addition to the 10 facilities outside the U.S., in Europe and the Asia/Pacific). Prior to the closures, the company operated over 40 data centers.
Internet Access
Dial-Up No.
Dedicated 1 Mbps to 1 Gbps via T1, DS3, OC-3, OC-12, Frame Relay and Ethernet access. Managed router service available with dedicated Internet access.
Frame Relay Yes, via a partner provider. Wireless Access No.
IP Service Offerings IP Voice No. IP Fax No. Value-Added IP Services Database Warehousing Yes.
Colocation Data center facilities provide physical space options, uninterruptible power and back-up power, raised flooring, redundant Internet connections with 24-hour monitoring, fire suppression and environmental controls.
Shared Web-Hosting Packages
ExpresStart: designed for small sites or novice users, this Unix-based package includes Domain Name Service (DNS), a Web-site creation tool; 10MB disk space, 1000 MB/month data transfer and 10 POP e-mail accounts.
Unix and Windows Server 2003 Shared Hosting Plans
Bronze, Silver, Gold and Platinum packages include an account “control panel,” DNS, Web usage statistics, 24×7 technical support and account access, multimedia capabilities, and varying degrees of e-commerce and e-mail service options (depending on package chosen):
• Bronze: 25MB disk space, 7.5 GB/month data transfer. • Silver: 300MB disk space, 10 GB/month data transfer. • Gold: 350MB disk space and 12.5 GB/month data transfer. • Platinum: 400MB disk space and 17 GB/month data transfer.
E-Commerce (with Shared Hosting)
Electronic commerce plans are available with either SoftCart by Mercantec or ShopSite store software. Both types offer storefront creation and maintenance features and a virtual back-office interface. Features vary by software type: • CyberStand: designed for smaller merchants and those trying out e-commerce. Includes e-commerce software, the Bronze Web-hosting package and SSL support via a shared server certificate. Merchants can sell up to 15 items with both SoftCart and ShopSite. Upgradable to eVendor and MarketPlace.
• eVendor: designed for midsize merchants that do not require advanced hosting or the e-commerce features of MarketPlace. Includes e-commerce software, the Silver Web-hosting package and SSL support via a shared server certificate. Merchants can sell up to 100 products with Mercantec, unlimited with ShopSite. Manual payment processing. Upgradable to MarketPlace.
• MarketPlace: designed for larger merchants who need advanced hosting and e-commerce features. Includes e-e-commerce software, the Gold Web-hosting package and SSL support via a shared server certificate. Both Mercantec and ShopSite allow an unlimited number of products with advanced merchandising tools.
• Windows 2000 Marketplace: includes the Gold Web-hosting package and SoftCart software to support an unlimited number of products.
Virtual Private Server (VPS) Solutions
VPS Hosting Plans allow corporations to establish a Web, File Transfer Protocol (FTP) or mail server. Options include database storage, e-commerce services and multimedia streaming:
• VPS v2 Standard: 1.25GB disk space. • VPS v2 Pro: 2.5GB disk space. • VPS v2 Pro Plus: 5.0GB disk space.
• VPN Solaris Standard: based on Sun Solaris platform. 700MB disk space; application options include ColdFusion, Active Server Pages and Java.
• VPS Solaris Pro: based on Sun Solaris platform. 1400MB disk space; application options include ColdFusion, Active Server Pages and Java.
Dedicated Web Hosting
Managed Private Server Hosting: managed solution, including either Sun Solaris on SPARC hardware, FreeBSD on Intel hardware or Microsoft 2000 on Intel hardware.
PowerPlatform (Dedicated) Hosting
Table 1: Overview: NTT/Verio Internet Protocol Services
Backbone Infrastructure IP-Virtual Private Networks (VPNs)
• NTT/Verio SafeGuard VPN.CPE: managed CPE-based site-to-site IP-VPN featuring IP Security (IP-Sec) tunneling and Data Encryption Standard (DES) or Triple DES (3DES) encryption. Managed services include customer premises equipment (CPE) hardware installation, 24×7 CPE management and CPE field replacement. CPE is a Cisco IP-VPN security device which acts as an IP router, VPN gateway and Content-Based Access Control (CBAC) firewall and is owned by NTT/Verio. Cisco PIX and Netscreen VPN gateways will be available in 1Q04. CPE is provisioned remotely by NTT/Verio using SmartPipes’ graphical provisioning tool. Dedicated access ranging from T1 to OC-3 speeds are supported. This service is also available to customers subscribing to other providers for Internet access. Note that NTT/Verio SafeGuard VPN.CPE is only available in the domestic U.S. currently, although there are plans to expand the service internationally. International
connections are currently serviced via the NTT/Verio SafeGuard VPN.Net service. • NTT/Verio SafeGuard VPN.Net (formerly the NTT/Verio Global IP Security Gateway): network-based IP-VPN featuring IPSec tunneling. Internet access is provided via a combination of partner Internet service providers (ISPs) and owned facilities. This service is available in over 140 countries, including Australia, Brazil, France, Germany, Hong Kong, Indonesia, Japan, Korea, the Philippines, Singapore, Sri Lanka, Taiwan, Thailand, Malaysia, U.K. and U.S. On-site hardware
maintenance is available globally with response times ranging from four to eight hours, depending on location.
• NTT/Verio SafeGuard VPN.Remote: managed network-based remote access VPN. End users (remote workers, extranet partners, mobile employees) access the corporate network via dial-up, DSL, cable modem or ISDN using any ISP. End-user username and password are authenticated using Secure Sockets Layer (SSL), then access to NTT/Verio’s network-based VPN gateways is provided by establishing IPSec tunnels via SafeNet client software (downloaded from NTT/Verio’s Corporate Manager Web portal) and installed on the remote end-user’s PC. All end-user tunnels are aggregated at NTT/Verio’s network-based VPN gateways. IPSec tunneling between the gateways and the central location is performed via a VPN gateway device, installed at the corporate central location. The Central site is connected to the backbone using dedicated Internet access at speeds ranging from DS1 to OC-3. NTT/Verio handles the infrastructure, network administrator control rights and permissions via browser-based management software. The Corporate Manager Web portal enables administrators to view the current status of end-user connections and perform tasks such as adding or deleting users, changing
passwords, viewing session history and for billing verification. NTT/Verio SafeGuard VPN Remote can operate as a stand-alone service or be integrated with either the NTT/Verio SafeGuard VPN.Net or NTT/Verio SafeGuard VPN.CPE site-to-site VPN services.
• Arcstar IP-VPN is a Multiprotocol Label Switching (MPLS)-based IP-VPN, which will subsequently incorporate IPSec and Voice over VPN features, as well as 99.9 percent availability. Available in 87 countries, with MPLS nodes in Amsterdam,
Network Services Portal
The portal for network services is currently separate from the PowerPortal, which serves the Dedicated Hosting customers. However, these portals are expected to be integrated sometime in 2004. Features of the network services portal include billing data, trouble ticketing and usage information. Enhancements forthcoming in 2004 include online updates of the current data elements (that is, billing data, trouble ticketing and usage information); new functional areas (technical data, network outage information, online bill pay and product information); and access to information and service data for managed router service, managed firewalls, VPN services and smart content delivery.
Other Services Managed Security. Professional
Services
Yes, for security solutions, data center/site migration services, software installation and support, system administration services and Web-site development.
Database Hosting Oracle 8i/9I and SQL Server. Service-Level Agreements (SLAs)
Backbone SLA Applies to North American customers subscribing to 56 Kbps point-to-point frame relay (all access speeds) and T1, T3, OC-3 and OC-12 services, and collocation or dedicated server services:
• Packet Loss: 0.1 percent on intra-U.S., trans-Pacific and trans-Atlantic traffic. In cases of noncompliance (and after requested by customer) NTT/Verio will issue a credit equal to one day’s worth of the base fee paid for such month.
• Jitter: 0.5 ms (average) and maximum jitter of 10ms no more than 0.1 percent of the month. In cases of noncompliance (and after requested by customer),
NTT/Verio will issue a credit equal to one day’s worth of the base fee paid for such month.
• Latency (round-trip): 55ms in North America, 90ms for trans-Atlantic and 130ms for trans-Pacific. In cases of noncompliance (and after requested by customer), NTT/Verio will issue a credit equal to one day’s worth of the Base Fee paid for such month.
• Availability of NTT/Verio IP global IP network (North America, trans-Atlantic and trans-Pacific): 100 percent. In cases of noncompliance (and after requested by the customer) NTT/Verio will issue a credit for network outages in an amount equal to one day’s worth of the base fee paid, multiplied by each hour (or portion thereof rounded to the next hour) of the cumulative duration of such network outages during
Table 1: Overview: NTT/Verio Internet Protocol Services
Backbone Infrastructure
Hosting/Colocation Data Center Access SLA applies only to customers receiving dedicated server or colocation services from the San Jose, California, or Sterling, Virginia, data centers and utilizing the NTT/Verio backbone:
• Data Center Availability: 100 percent availability of connections between NTT/Verio data center and Internet.
• Data Center Packet Loss: 1 percent average monthly packet loss over network connections from data center to the Internet.
• Data Center Latency: 85ms round-trip average monthly latency over network connections from data center to the Internet.
PowerPlatform Hosting Hardware Support SLA
• NTT/Verio’s goal is to resolve covered hardware problems so that customer’s covered server platform is operational within 90 minutes from the NTT/Verio notice time.
• NTT/Verio will issue a full day’s credit to customer (i) if customer’s covered server platform is not operational within 90 minutes from the NTT/Verio notice time and (ii) for each additional 90 continuous minute period that customer’s covered server platform is not operational after the 91st minute from the NTT/Verio notice time; provided, however, the total credit amount available to customer in a particular month is limited to the lesser of customer’s base fee for such month or US$1,000. IP-VPN • NTT/Verio SafeGuard VPN.CPE: standard SLA components include VPN outage
notification (via e-mail, pager or telephone call) within 15 minutes; hardware replacement (if required) within one business day (via mail) during the business week; Time-to-Repair within four hours from problem determination; and network guarantees.
• NTT/Verio SafeGuard VPN.Net: SLAs are currently negotiated on a case-by-case basis; however, standard SLAs are expected to be available in 1Q04. Guarantees will include VPN outage notification (via e-mail, pager or telephone call) within 15 minutes; hardware replacement (if required) within one business day (via mail) during the business week; Time-to-Repair within four hours from problem determination; and network guarantees.
• NTT/Verio SafeGuard VPN Remote: includes service outage notification within 15 minutes; eight-hour Time-to-Repair; and replacement of broken equipment within 24 hours (1Q04).
Support
Customer/Technical Support
Network operations center (NOC) in Dallas, Texas, U.S., monitors the national backbone and local ISP networks and assists NTT/Verio Customer Care with problem resolution. Round-the-clock support is offered in English and native languages. NTT Communications also operates an NOC in Tokyo.
Reporting Web-based real-time and historic bandwidth reporting for dedicated access customers.
Source: Gartner and NTT/Verio.
Analysis
multinationals with a presence in the U.S. (these accounts are penetrated primarily via NTT
Communications).
In the fall of 2003, NTT/Verio combined its Global IP Network (GIN) unit (wholesale transport services)
with its Broadband Services unit (IP access and managed network services in the U.S.) into one group
called the Network Services Business Unit. The two units were formed previously in 2002 as part of a
restructuring effort that included the formation of two additional units: the enterprise hosting and small and
midsize enterprise (SME) units. Each of these units work autonomously, that is, they have their own sales
and support teams, development teams and profit/loss accountability. When appropriate, however, the
teams will collaborate.
Parent company NTT is providing crucial financial support to NTT/Verio, its U.S.-based operation. NTT
acquired Verio at the height of the technology stock boom in September 2000; however, since the
purchase, NTT/Verio’s losses have been dragging down profits for NTT. NTT has provided US$7 billion in
funding to NTT/Verio since the acquisition.
The respective IP networks of NTT/Verio and NTT have been connected via a single Autonomous System
(AS) number systems and structure, and a network expansion initiative continues in Europe (a Western
European loop is currently operational). Suffice it to say that NTT has a strong presence in the
Asia/Pacific.
Pricing
Table 2: Price List: NTT/Verio IP Services
Service Pricing/Pricing Components ($) Shared Web-Hosting
Plans
• ExpresStart: 24.95/month plus 50 setup fee
• Bronze: ranges from 14.95/month to 24.95 month (depending on contract length) plus 50 setup fee
• Silver: 49.95/month plus 50 setup fee • Gold: 99.95/month plus 50 setup fee
• Platinum: 249.95 per month plus 50 setup fee E-Commerce Plans • CyberStand: 29.95/month plus 50 setup fee
• eVendor: 74.95/month plus 50 setup fee • MarketPlace: 124.95/month plus 100 setup fee
Table 2: Price List: NTT/Verio IP Services
Service Pricing/Pricing Components ($) Dedicated
Web-Hosting Plans
Managed Private Server (MPS):
• Solaris-based MPS: starts at 1,195/month • FreeBSD-based MPS: starts at 795/month • Basic:
• Windows 2000 and Linux: starts at 395/month plus 395 setup fee • Sun Solaris: starts at 37/month plus 370 setup fee
Managed:
• Windows2000: Linux and Sun packages: start at 1,135/month plus 650 setup fee IP-VPN • NTT/Verio SafeGuard VPN.CPE: $800 per site per month for a site connected via
T1 to $4,000 for a site connected via OC-3. One-time setup costs range from $1,000 to $1,500.
• NTT/Verio SafeGuard VPN.Net: $730 per site per month to $6,860 for a site. One-time set-up cost of $750 per site.
• NTT/Verio SafeGuard VPN.Remote: fees range from $6 to $6.50 per user per month. Management fee ranges between $650 and $800/month.
Source: NTT/Verio.
GSA Pricing