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Elusive lucre

Router giants offer suggestions on how to produce profits from packets

View from the Edge By Jim Duffy, The Edge
December 06, 2002 12:03 AM ET
Jim Duffy
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In a magnanimous effort to make money for everyone - including themselves - this holiday season, Juniper and Cisco have graciously and generously offered a few secrets on how to wring profits from those stingy new IP services.

With perhaps a tongue planted firmly in its cheek, Juniper dubbed its profit making and demand creation plan MINT - as in, the place where they produce coins. MINT, which stands for Model for Integrated Network Transformation, attempts to allow service providers to address both large and niche markets by scaling their offerings to appeal to consumers, low-end businesses, and mid-to high-end businesses.

But with scale comes commodity pricing and lack of profits. So MINT also proposes a model whereby service providers generate profit through service customization and added value as they scale their services to address markets heretofore untapped or underaddressed.

The MINT framework encompasses basic transport and connectivity at its foundation, and policy and control at its peak. In between are resource segmentation and packet processing, and each layer of MINT is interdependent on the other.

The transport and connectivity layer, naturally, encompasses Juniper's edge and core IP routers. The resource segmentation layer suggests creation of a service independent resource pool by using MPLS to partition ATM/frame relay/private line/voice, IP, and public Internet assets into virtual overlays.

The IP overlays would support the scale to address lucrative under-served markets, Juniper says, while the consolidated overlays - ATM/frame, private, voice, etc. - would collapse "conventional" services for more mainstream markets.

The packet processing layer would filter, prioritize, encrypt and classify packets according to user need, and the policy and control layer would map users to customized services, and to back-office accounting and billing applications. For example, a user request for on-demand video would activate increased bandwidth and packet priority, Juniper says, while also generating the associated billing records.

Juniper also announced several new products to support the MINT framework. This is where MINT produces coin for Juniper. Hey, there's no free lunch.

Juniper acknowledges that MINT will be one of several service provider profitability frameworks to emerge from a handful of vendors. The company also admits that there's "still a lot of work to do" with regard to integration of non-Juniper products into MINT.

Yet, Juniper claims that implementing even one of four operational layers of MINT will be a "leap" from where service providers are today in deriving profitability from data services. So may MINT mine money for the masses...

Meanwhile, Cisco this week unveiled a bevy of products and architectural frameworks - one is even called BLISS - designed to convince service providers that they can profitably roll out new services on new and existing circuit, packet and cable infrastructures. Cisco also announced a handful of service provider deployments as proof points on how an investment in its products can happily - BLISSfully - generate big bucks over time.

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