TFM Principles
IP Economics
Fundamentally, TFM Networks is an IP Network company. One that believes that the opportunities afforded by new breed IP networking are real, structural and might we add exciting! It’s what we call IP Economics – fundamental and structural advantages that when combined in one robust and resilient network design deliver cost benefit, added value and profitability.
1) IP Fundamentals
New breed IP VPN networks are fundamentally more effective than legacy ‘layer 2’ networks such as frame relay, leased lines and ISDN. That’s because IP Data Packets contain ‘routing information’ that enables them to find there own way through the IP Network and that means they don’t require dedicated ‘point to point’ connections.
2) IP at the Core
The consequent economies of scale in the IP network core are immense because network traffic and performance is managed across the whole ‘network cloud’ rather than in each of millions of discreet point to point connections. The effect is to reduce the marginal additional cost to send an IP data packet virtually to zero.
3) IP at the Edge (Access Circuits)
In an IP network, the ubiquity of service is extended right to your front door. Of course, you are constrained by the bandwidth of your access circuit but as with the IP core, you do not need to segment capacity for different applications. This means all your bandwidth is available to all of your applications all of the time – in one single IP connection. Compare this to a typical branch office with multiple connections for voice, fax, email, data etc. Put simply, reducing connections by a multiple, achieves a savings multiple, which multiplies again across your whole estate.
4) Broadband IP Access
Broadband access is essentially the same technology that you, as consumer, can buy for your own personal internet access at home. The positive aspect is that it is ‘Cheap as Chips’. The downside is that the service offered to consumers is not ‘Business Class’. However, reducing contention ratio’s and improving the service package enables a ‘Business Class Broadband Service’ offering a price point that is still multiples cheaper than comparable business network services such as leased lines or ISDN call charges. The result is a service that enables any location, even the smallest branch office or SOHO to be IP Networked cost effectively.
5) Managed Applications in the Core
The economics of IP mean that bandwidth in the ‘IP Core Network’ is typically 70% cheaper than at the network edge. It makes economic sense, therefore, to locate your most bandwidth hungry application services within the core of the network.
With that principle established TFM Networks has gone a step further. Partnering with leading application providers, we have established a suite of Managed Application Services. New breed IP services, which you can simply ‘plug into’ because they are already available within the core of ‘your network’ - All without the prohibitive cost of delivery and the complexities of building and managing your own core infrastructure.
Fundamental IP Benefits
The intention here is not make hollow promises about what a TFM Networks IP Network will save your business but to state clearly that if IP Networking is not on your business agenda then the fundamentals of IP Economics are shouting that they should be!
Certainly, we are confident that our Stepped Change approach to deploying IP networking in your business means that we are the LOWEST NET COST solution. We’re equally confident that our entrepreneurial approach can turn your existing legacy cost burden into a profit centre for new and exciting value and profit generating services.
To put IP Economics on your business agenda contact us for a specific business assessment.
