Reducing Telecom Costs without Sacrificing Quality of Service
It’s human nature to think that an expensive product is better than a lower-cost product. There’s a degree of logic to that—why would the market support a higher cost if there wasn’t some value behind it?
When it comes to multiprotocol label switching (MPLS), however, the price of the service has little to do with the cost of delivery or the functionality that’s provided. Quite simply, it comes down to what the market will bear.
Historically, there have been limited options when it comes to wide-area network (WAN) connectivity. The telcos pretty much owned the road, and developed MPLS to more efficiently handle growing volumes of Internet traffic. Because MPLS is offered by just a handful of providers, the price is relatively high.
The broadband Internet market, by contrast, is highly competitive, which drives down prices. Broadband Internet typically costs $.75 to $2.00 per megabit per month. MPLS, in contrast, ranges from $75 to $200 per megabit per month depending on location. Granted, broadband Internet is a “best-effort” service, while MPLS creates a private WAN with guaranteed bandwidth. It takes better equipment and more engineers to deliver MPLS, but that doesn’t explain such a huge discrepancy.
Fact is, many IT professionals believe that broadband Internet is inadequate for enterprise WAN connectivity. They’re concerned that the cost of downtime and of troubleshooting problems across dozens or even hundreds of locations would offset any savings from a cheaper service.
However, MPLS is starting to show its age. Organizations that rely heavily on cloud-based applications and services find that MPLS creates bottlenecks. Furthermore, MPLS doesn’t provide the advanced traffic shaping needed to ensure high-quality IP communications.
Twenty Times the Bandwidth, 72 Percent Lowered Costs
A Kentucky-based technology company was using MPLS to connect its two corporate offices in Louisville and Lexington. The company was frustrated with the high cost of MPLS, and began looking for alternatives. Software-defined WAN (SD-WAN) seemed like a good solution, but it had to provide Quality of Service (QoS) for voice and video conferencing.
After reviewing SD-WAN products from a number of vendors, the company selected InSpeed Quality Service (IQS). IQS is the only SD-WAN solution that’s purpose built to ensure performance for interactive applications. It gives interactive traffic priority over ordinary Internet traffic, and manages bandwidth utilization from end to end to reduce congestion for all applications.
After implementing IQS with a broadband Internet connection, the company found that voice call quality immediately improved. The company’s 65 employees could communicate with each other and with customers without the jitter, echoes and other issues they experienced with MPLS.
But what about reducing telecom costs? The company had been paying $1,920 for two 5Mbps MPLS circuits, plus another $180 for an MPLS-to-Internet connection in its Louisville location. That’s $2,100 per month for relatively little bandwidth. Now, the company has a 100Mbps Internet connection plus IQS in each location, for a total cost of just $600 per month. With InSpeed, the company enjoys 20 times the bandwidth for 72 percent lower cost per month, with improved call quality.
InSpeed’s SD-WAN solution proves that more expensive isn’t necessarily better. Let us show you how IQS can save you a bundle while ensuring high-quality business communications and cloud access. Check out the case study referenced here, or reach out to our team to get started to find out how much money IQS can save for your company.