AAA Financing In Real Estate

In the dim and distant past, company offices exchanged messages by employing couriers on horseback making their way across treacherous terrain. In the twenty first century the pace of business has changed beyond recognition. Nowadays vital information is exchanged securely in seconds between offices located on different continents. VPNs (virtual private networks) are what is making all this possible. However today in Russia there is a shortage of suitably qualified IT experts, reliable networks and affordable prices.

Nowadays it is almost impossible to imagine a company operating in an isolationist way. The need to quickly win market share and most importantly expand and develop is what is driving business globally. “The issue of corporate networks is today just as important as business organization. Simply exchanging information and data between remote locations is only a small part of the requirements for a corporate network. Corporate networks are what remove barriers and create what is known as corporate knowledge,” says Sergey Biryukov, business system manager for Russia and CIS.

Today one of the most widely-used technologies for corporate networks is VPN (Virtual Private Network). Effectively it functions as a means of transport for different services. VPN can be installed on specific lines or via open networks depending on the specific requirements and technical and financial considerations.

Corporate networks are also toady the most popular products sold by telecoms operators. “Virtually any business in the world functions on the basis of networks of offices, warehouses, factories and sales outlets, etc. Globalized and accessible communications are what make this possible. Business can be carried on in real time at a central office in Moscow, a warehouse in Moscow region and a factory in another part of the country,” says Vlad Volfson, sales director at Corbina Telecom.

According to Andrei Yeromenko, IT director at Promsvyaznedvizhimost, the importance of corporate networks is explained by the exacting deadlines for decision making which are now as small as hours or even minutes. “Under these kinds of conditions management must have access to complete and most importantly, up to date information about the company’s activities including what is happening in subsidiaries and regional offices,” he says. Also these systems avoid internal communication problems by creating an information environment which conforms to unified IT standards.

“The organization of a unified information environment and the management of information and analytical systems are the main strategic tasks for the analysis department of our company, says Tatiana Grushko, head of the information and analysis department at Russkie Oteli.

Corporate Privacy

The main advantages of installing a VPN are that it provides an IT environment which is completely isolated from public networks and works as a single system capable of managing virtually all a company’s business processes. “Using a VPN makes it possible to prioritize different types of traffic based on the company’s specific needs and requirements. Also VPN can incorporate very different types of data and corporate systems,” says Sergey Popov, head of the data transfer and telematics department at Mastertel. The net result can be substantially reduced costs in particular for telephone calls.

“The main feature of corporate communications is the need for a unified secure network for voice and data which is independent of the local environment. If you used standard systems then each office or branch would need to be connected up to a local telecoms operator who would have to be in a position to provide the right number of lines and channels for transferring data,” says Elena Kashirina, vice president of sales for Moscow region at Globus-Telecom. With VPN however remote offices are connected directly to a central office via a single data transfer network. Also you have the option of introducing things like spam-filters across the entire network which stops employees being swamped by junk mail.

Another key factor prompting firms to opt for corporate networks is of course information security. “The fundamental standard for acceptable information security is the presence of only a small number of channels connected up to the outside world. The smaller the number of access points the safer the system. For central offices you can also install a unified IT security center to manage the entire network,” says Ms Kashirina.

Globalization has of course many positive features but there are also some negative ones. “The more employees, offices and different countries within a corporate network, the higher the risk of information leaks. When installing a corporate network it is very important to choose the right type of equipment and technology. You need to maintain the right balance between technology and security,” comments Mr Biryukov. Too much emphasis on IT security can mean not getting the most out of the available technology. But being too star-struck with the latest innovation can also create security vulnerabilities.

Corporate networks are installed on the basis of a sole corporate telecoms provider i.e. all the different elements are serviced by a single operator. “Corbina Telecom has been developing corporate networks for many years. For us this is now a standard service and can range from simply connecting up an office to a warehouse to creating a VPN network for over 100 sites,” says Mr Volfson.

Corporate networks are installed via channels for transferring data and voice between central and outlying offices (star-pattern). You can either use the lines of a local operator if the network will be located within one city or a national operator like Ros Telekom for connecting up offices in different cities. Usually a complete package is provided with one operator providing the equipment, ensuring the data and voice transfer lines and installing, managing and then monitoring the system.

Large international corporations can afford to create their own VPN networks. “Most companies do not however have the expertise or the resources to do this. Not to mention the special licenses, optic cables and highly specialized equipment required. This is why they look to the services of a provider. Mastertel has created VPN networks for companies like TVEL, Pizza Fabrika and Fronda Mebel,” comments Mr Popov.

The most effective way is to take an integrated approach and install an independent cable network but this does represent a substantial investment for the company involved. “To simply use an existing network means a far increased IT security risk. This is why we rent lines from providers and then install the VPN ourselves,” says Mr Yeremenko. “The function of a provider with regard to a VPN is to install an IP-domain in accordance with the client’s instructions. The client will then create it’s IT system based on this IP network which will be serviced independently from the provider,” says Mr Popov.

Today almost all large companies and many state structures have branch networks with their own VPN. “The Jones Lang LaSalle network joins up all our offices throughout the world, including, Europe, America and Asia. The system was developed over the last 10 years with the help of consultants and specialists from several companies,” says Mr Biryukov. Today the Jones Lang LaSalle network has developed its own internal global standards. After being convinced of the advantages of VPN Russkye Oteli and RIGroup have started work on their own networks.

RIGroup has offices in Russia, US, England and France but they are not connected up via a single network. Sometimes we use tried and tested methods like phone calls. However our existing intranet system is insufficient for quickly resolving issues so over the next few years we plan to install a corporate network,” says Dmitry Kotlyarenko, general director of RIGroup. The company also plans to introduce video conferencing systems for each office.

“Today we install not just local but large integrated information and analysis systems. This year the focus has been on the next generation of business analysis internet technology – BI. It can provide analysis and strategic planning for the hotel sector and a Karyon internet room booking system. Over the next few years we will design a finance and management network,” comments Ms Grushko The main driver behind this system is increasing the effectiveness of individual departments, integrating business processes and creating data analysis and development forecasts for strategic planning.

Making it Work

The main problems experienced by companies using this technology are organizational rather than technical in nature. It can often be hard to find qualified IT specialists with the right skills when it comes to IT security and ensuring that all the numerous IT and telecommunication standards are met. Another issue is of course price. “In my view the only real negative is the high cost which stems from the high cost of the equipment and the need to use highly skilled specialists with specialist training,” says Mr Popov.

“Working in Russia we constantly have to choose between price and quality but even a high price does not always guarantee high service levels,” comments Mr. Biryukov. There are however cheaper options. According to Mr. Yeremenko a budgetary solution using the low end equipment, freely licensed software and a DSL line can be obtained for 40-50,000 roubles per platform. However for more integrated solutions based on Western-brand equipment and lines of up to 1 GB the hookup cost can be higher by an order of magnitude.

The equipment itself can also cause problems for the company. “Sometimes we have to alter and standardize equipment because of additional costs in the early stages and employee work habbits. Unfortunately it takes a long time to install a corporate network, says Ms Kashirina

Personal Access

It should be pointed out that corporate networks can also be connected up to home networks and create mobile offices. New technology has created the possibility of instant access from just about anywhere.

“In order to connect up an employee’s home to a VPN you need to provide a separate data transfer line which is pretty expensive. Alternatively you can connect the home line to the internet and organize a tunnel within the internet between the home and office networks,” says Ms Kashirina.

Giving employees remote access is far easier than ensuring the IT security is not compromised. “We resolve this issue by restricting remote access to only a small number of employees and by combining password access with a personal key (e-token). We also monitor remote connections from our site and anlalyze the activity,” says Mr Yermenko.

Market experts comment that corporations can no longer survive without a proper corporate network. Competition is fierce and a good network can represent an important advantage. Globalization has brought with it large-scale mergers and giant corporations operating out of many different locations worldwide. This new business environment has paved the way for VPN as a vital tool in the global market place.