Tuesday, September 22, 2009

Get Ready For The Recovery With Bandwidth on Demand

There is an economic recovery on the way. For some companies it may already be here. For others, it’s a dicey situation. Sure, you’re maintaining your earnings per share. But it’s being done by cost cutting, not top line sales growth. When things actually do turn, you’re going to need to move fast. But you can’t take on additional expense until your income justifies it. What to do? Try bandwidth on demand.

The idea behind bandwidth on demand is that you have the facilities to deliver all the bandwidth you need to support your operation. But you only install the facilities, not the full bandwidth service. Then you idle along at a speed that meets your current requirements and a cost that you can afford. When business picks up, you simply contact your service provider and say, “crank it up.” Your line bandwidth will increase by a factor of 2x, 5x, or 10x as per your specifications. Your cost will go up incrementally, but the increased business volume will more than cover it.

This is different from planning on a future need and getting the full capacity in place before it hits. That’s certainly a low risk approach from an operational standpoint, but it’s a high risk from a cost standpoint. What if business doesn’t ramp up as rapidly as projected? What if the marketplace takes another leg down? There you’ll be, stuck with a big expense commitment and forced to cut other costs to offset what you’ve put in place.

Bandwidth on demand services can work in both directions. You can order additional bandwidth at any time. You can also reduce your bandwidth on demand down to some base level. This way you can hedge your bets in a volatile business environment.

What types of services are suitable for bandwidth on demand? They vary by carrier, but Ethernet services are often structured in just such a way. Your bandwidth will have lower and upper limits determined by whether you have copper bundles or fiber optic cable installed as a last-mile connection.

ISDN PRI offers up to 23 telephone lines on a single digital trunk. That doesn’t mean you need to install 23 outside lines. Perhaps you are just getting a customer service contact center in place and only need 6 to 10 lines. You anticipate growth, so you’ll want to fill those additional lines as call volume increases. But for now, just get the number of lines you need to satisfy your customers.

Even T1 line service has some bandwidth options. A standard T1 line runs at 1.5 Mbps. Perhaps your application only needs half that amount. You can order a fractional T1 line for the smaller amount. Later on you’ll want to upgrade to full T1 service or even expand to 3 Mbps and beyond by bonding in additional T1 lines as you need them.

The best way to get a handle on your cost / performance options are to discuss your current and projected needs with an expert bandwidth consultant. That service is available free of charge through our Telarus telecom brokerage service. Call the toll free number or enter a quick online request at T1 Rex right now.

Click to check pricing and features or get support from a Telarus product specialist.

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