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Optical/IP

Appian Adds to Services Platform

BOXBOROUGH, Mass. -- Appian Communications(TM), the first to deliver an optical edge solution opening today's optical networks to high growth packet services, has announced a new software and hardware release for its Optical Services Activation Platform (OSAP(TM)) that enables service providers to deploy carrier-class Ethernet services with standards-based interoperability, five-nine's availability, service level control and end-to-end manageability. With these new capabilities, Appian is broadening the Ethernet services market to include global, secure services that meet the service level assurance and reliability needs of demanding private line data, video, and voice applications. As a result, providers can for the first time extend Ethernet services beyond current metro area LAN-to-LAN and Internet access applications to include global, premium services such as Ethernet Private Lines.

"The early success of carrier Ethernet services is a strong step toward establishing Ethernet as a standard service interface. Customers will demand granular, scalable and on-demand bandwidth. But these services have so far focused on metro area LAN-to-LAN and Internet access applications," said Chris Nicoll, vice president at Current Analysis. "While emerging providers have successfully brought high-speed services to their targeted markets, there is an untapped opportunity to deliver global, private line quality services that bring the simplicity and low cost of Ethernet to the mass market. Appian enables providers to leverage their existing SONET/SDH infrastructure to deliver Ethernet services between points around the world with carrier-class reliability, scale and manageability. It presents a great opportunity for existing carriers to develop new sources of service revenue."

http://www.appiancom.com
fk 12/4/2012 | 8:33:32 PM
re: Appian Adds to Services Platform Does Appian have any paying customers for these products, or is this another science project? It does seem like the access market is going to cycle into growth as carriers seek to derive actual revenues from their buildouts, but is the product actually ready for prime time? Is this going to be another company that can only sell to its investors? What's the buzz on these guys?
CarolinaGeek 12/4/2012 | 8:33:23 PM
re: Appian Adds to Services Platform Another access company, WWPackets just had new announcement. Anyone know anything about them? New switch looks just like Riverstone's.
garaj_dohr 12/4/2012 | 8:33:18 PM
re: Appian Adds to Services Platform
There's no market for Appian:

They have a solution in search of a problem.

It's ridiculous to think that existing private line services will be replaced with "Ethernet Private Lines" any time soon.

There is absolutely no business case for carriers to cannibalize their existing Private Line customers in favor of a new Ethernet Private Line. The existing PL market is mature, it's not under competitive pressure from Frame Relay,
ATM or IP VPNs. Many providers have made a full return on investment from the cost of deploying the services, so the equipment costs have been
amortized and operations procedures have been streamlined.

Private Line services has the best margin for carriers and it's the #1 money maker (behind voice) for service providers..Private Line revenues far exceed Frame Relay, ATM and IP. It doesn't make any sense for a carrier to jeopardize the cash cow...and they won't.

Ethernet won't take any sizable market share away from PL...it's taken Frame Relay 10 years to get this far...there's no way that an enterprise customer with a private line service will jump to Ethernet.

Appian is a company desperately seeking a market...their original target was the BLEC/CLEC market..but that turned out to be a mirage...now they are trying to position themselves for the "Ethernet Private Line" market....the only problem is that there is no such thing and there most likely never will be.

1. There's no reason for carriers to cannibalize existing customers and revenue streams for a service that is sure to have a lower margin.

2. There's no overwhelming reason for enterprise/end users to migrate from their existing PL service to one based on Ethernet

There's no market here. Zippo. Nilch. Nada. Bubkis.
fk 12/4/2012 | 8:33:12 PM
re: Appian Adds to Services Platform You don't see a competitive advantage for a carrier to offer private line services at instantaneously controllable rates sans truckrolls vs the strict hierarchical T1, NxT1, T3 rates that require truck rolls (and a calendar quarter of leadtime)? Interesting. And likewise, there's "no market" between 1.5 Mbs and 45 Mbs? How neat that customer needs fall into such discrete bandwidth requirements.

And what about internet access? I guess that's not useful either. Nah, no customers would want such a thing, and if they did, they'd only ever want it at 1.5 Mbs or 45 Mbs.

Nope. You're right. No market at all.
garaj_dohr 12/4/2012 | 8:33:03 PM
re: Appian Adds to Services Platform
Today's end users are not forced into strict T1 or T3 rates.

There are billions of dollars of service revenue being generated by service rates between 1.5 and 45Mbs. All major carriers offer NxDS1 or multilink services.


Instantly controllable service speeds are a pipe dream.

Sounds nice on paper, but is not applicable in an established carrierGÇÖs multi-vendor environment. Maybe Appian can find a new carrier to build a new network solely on Appian equipment, but I doubt it.


Regarding truck rolls: they are a fact of life and always will be.

It would take about 2 days for all of a carriers union workers to go on strike and cripple the network if they got wind of pie-in-the-sky plans to end truck rolls. Reality can, in fact, GÇÿbyteGÇÖ. Carriers do not want the end-users controlling the knobs that dynamically increase bandwidth whenever they feel like it. It could negatively impact other customerGÇÖs services, the established OSS, network planning and forecasting as well as total available bandwidth for others. Simply put: Not gonna happen!

My previous post was solely regarding the "Ethernet Private Line" market and did not mention "Internet Access". That is a wholly different topic and not addressed in the Appian press release. Obfuscation is easier than addressing the topic I imagine.


right_leading 12/4/2012 | 8:33:02 PM
re: Appian Adds to Services Platform >What's the buzz on these guys?

That they are moving closer to their favorite sushi bar?

adobe2 12/4/2012 | 8:32:42 PM
re: Appian Adds to Services Platform Appian does NOT have a single purchase order.
Appian was so devastated when Sycamore bought Sirocco, that was the end of their story.

The morale of Appian employees is very low and as a matter of fact, engineers started leaving because they have the same question, where are the POs.
cfaller 12/4/2012 | 8:32:41 PM
re: Appian Adds to Services Platform At best, the market for Appian boxes is unclear.

Logic would dictate that enterprise customers would want ethernet services (both private line and internet access), since a lot of their premise equipment runs on ethernet.

And yet...

Ethernet metro services have been available for awhile (at least 6 months), but there is very little to show for it. I'm wondering if enterprise customers really want ethernet network services. If not, write off Appian and the rest of the optical ethernet crew.

Time will tell on this...
fk 12/4/2012 | 8:32:21 PM
re: Appian Adds to Services Platform >Appian was so devastated when Sycamore bought Sirocco, that was the end of their story.

I'm sure they feel just AWFUL that they didn't get bought by Sycamore when SCMR was trading for $100+ now that SCMR has dropped ~90% from the purchase price. I'm sure they're saying things like, "Why can't we get a deal like that?!!"
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