AOL sheds consumer rep with VPNs

By Denise Pappalardo
Network World, 1/19/98

America Online, Inc. is preparing for a major push into the business market next month, when it will introduce a secure private network service.

But the online service provider may find its potential business customers still are haunted by horror stories of AOL's network troubles of a year ago.

To reassure edgy customers, AOL is striking deals with security and software vendors whose technology should help make sure the VPN service is up to snuff. The new service will take on the same name as AOL's current business offering, dubbed AOL Enterprise.

Today, AOL Enterprise essentially is a privatized form of AOL's popular consumer service. But the revamped service will let users exchange information over AOL's network using authentication tools from Security Dynamics, Inc., and encryption and tunneling features from a handful of firewall vendors, said David Gang, senior vice president of new products at AOL.

"This will be a difficult market for AOL," said Eric Paulak, senior analyst at Gartner Group, Inc., a Stamford, Conn., consulting firm. But AOL's new business relationships will strengthen the company's case, he said.

AOL and Security Dynamics last month quietly made an agreement under which they will put SecurID password authentication tokens in the hands of all AOL Enterprise VPN customers, Gang said. SecurID tokens provide users with dynamic password protection, which means the password appearing on the token card changes every 60 seconds for added security.

Firewall security also will be an important part of the overhauled service. AOL will an-nounce deals with three firewall vendors in the next 30 days, Gang said, though he would not name the vendors.

The firewalls will let AOL Enterprise VPN customers support standard-based tunneling via protocols such as Internet Protocol Security, Gang said.

In addition to providing new security features, AOL is making its VPN service easy to integrate with customers' existing networks, Gang said.

While AOL's online service software is proprietary, the company is striking deals with the likes of Lotus Development Corp. and Netscape Communications Corp. to integrate their client software with AOL's dialer, he said. AOL is expected to announce final deals with software vendors next month.

Despite its efforts to make the service secure and compatible with other offerings, AOL still may have a tough time convincing customers that its network is up to the task of supporting VPNs, said Rebecca Wetzel, director of Internet services at TeleChoice, Inc., a Verona, N.J.-based consulting firm. This is especially true given that competitors such as AT&T WorldNet, MCI Communications Corp., UUNET Technologies, Inc. and Sprint Corp. all have introduced secure dial-up VPN services for business customers in recent months.

Last year at this time, AOL was trying to appease customers and attorneys general from 20 states who were dissatisfied with the company's service. The onslaught of complaints came almost immediately after AOL went to its current $19.95 unlimited access service offering, which attracted more customers and network traffic than AOL could handle. Since then, AOL has made modem and network upgrades.

Still, some users are skeptical.

"I'm amazed that they would try this right now," said Sharleen Smith, director of new technology at USA Networks, a New York-based television station. "Last year, when they came out with their all-you-can-eat, $19.95 per month service, it nearly brought them down."

Other users agreed. "[AOL] is not the company that comes to mind when we are talking about expanding our VPN," said Bob Dougherty, chief information officer and director of information technology at Subaru of America, Inc., in Cherry Hill, N.J.

AOL Enterprise VPN service is expected to be available this quarter for $500 per user.