Concentric Network Corporation White Paper, Outsourcing Remote Access Services
10/1/1998 3
Remote Access: In House or Outsource?
According to Forrester Research, “The Remote LAN Access market is growing explosively.” All
of the Fortune 1000 companies that Forrester spoke to “permit dial-in access to their corporate
LANs, and almost nine out of 10 firms see the number of remote access users expanding by the
year 2,000.
1
” According to Cahners In-Stat Group, the number of remote access dial-in ports will
grow 76% from 1998 to 2000.
2
“More than 25% of corporate users implement or plan to
implement outsourced remote access, and this is just the beginning,” said Greg Cline, Principal
Analyst for Cahners In-Stat Group’s Internet Architecture Service. “Smart carriers will be adding
value by providing this service, then going the extra mile to comprehensively manage end-user
remote access.” Driven by compelling economics, the outsourced remote access solution mix is
shifting in favor of Internet-based solutions. According to Cahners In-Stat Group, the stage is
being set for virtual private networks.
As the number of users needing remote access continues to explode, many organizations have
struggled with the additional demands placed upon their already stretched resources. The need
to provide 7x24 support, keep up with technological change in access technologies, control
communications costs, and simply add enough hardware and phone lines to satisfy demand has
caused many of these organizations to rethink their strategy regarding supporting remote access
as an in-house service.
Business Outsourcing Issues
With the increase in numbers and mobility of remote users comes the need to manage costs. Most
organizations support their mobile users through 1-800 numbers, and large modem pools managed at
the periphery of the corporate LAN. Typical costs on these 1-800 facilities for long distance usage
range from $3.60 to over $6 per hour, depending on long distance provider and other factors.
Outsourcing to a Network Service Provider with significant local call access coverage provides the
potential for significant cost reduction.
Management control is an important issue for most organizations, and can be a reason that
organizations hesitate to consider outsourcing of remote access. Fortunately, recent developments
such as the de facto standard RADIUS (RFC 2058) protocol, and advanced tunneling technology, now
allow organizations to maintain the security and control of their remote access user base, while still
outsourcing the access component and accruing significant benefits. In addition, new tools are
available which allow network managers to gain visibility into their outsourced network, for determining
user activity, load on the access links, and other important status information.
The ability (or lack thereof) of an in-house staff or a potential outsourcing partner to support users
outside of the normal 8-5 business hours is another consideration. For mobile user communities, the
usage of the remote access facilities in many cases stretches well beyond what is considered normal
help desk support hours.
1
The Forrester Report, Telecom Strategies: Analyzing Telecommunications in an Era of Deregulation
and the Internet, Volume Three, Number Three, August 1998, Freeze, Goodtree, Schmidt, and Goldberg.
2
Cahner’s In-Stat Group, Remote Access and the Rise of the Corporate VPN: Market Opportunities and
Trends, August 1998, Greg Cline.
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