Expand Networks introduces new WAN pricing structure for service providers

Details: James Barton; Category: Service Management; 22 June 2010; 7618 views

Expand Networks have announced a new pricing structure for their WAN optimization solution which is designed to mirror service provider revenue models...

Expand Networks have announced a new pricing structure for their WAN optimization solution which is designed to mirror service provider revenue models. The new monthly subscription-based ‘pay as you sell’ model shifts costs from CAPEX to OPEX, immediately delivering profitable recurring revenue streams to service providers.

This unique pricing structure allows service providers great flexibility in choosing their infrastructure requirements; accelerators, licensing, management and maintenance are all covered by the ‘all inclusive’ subscription cost, which is charged on a quarterly basis over a 2 to 5 year contract term – also chosen by the operator.

Under the new structure, service providers need only pay for the solutions once customers have come on board, greatly reducing the inherent risk of customer acquisition – often a prohibitive barrier to market entry, particularly for operators in emerging markets.

Jim Metzler, Analyst at Ashton, Metzler & Associates comments, “We often hear the phrase ‘virtualization changes everything’. Usually that phrase refers to how virtualization fundamentally changes how IT organizations provide computer resources or support desktops. This announcement by Expand broadens the use of that phrase to include the fact that virtualization also fundamentally changes how service providers, telcos and cloud providers will acquire WAN optimization solutions.”

Adam Davison, corporate VP sales and marketing, comments, “Unlike other competitive offerings where traditional enterprise pricing models have been retrofitted for the service provider market, our approach has been purposely developed to be a true subscription-based service as opposed to a deferred CAPEX model. By moving from a ‘build it and they will come’ approach to a customer driven model, we can completely de-risk service providers customer acquisition strategies, only having to invest in a solution as and when they actually sell it.”

The offering, based on Expand’s Virtual Accelerator (VACC), Accelerator appliance (ACC) and Mobile Accelerator (MACC) range of WAN optimization products, and managed by its ExpandView Virtual (EVV) solution, delivers all infrastructure upfront and is then priced on the number of remote connections terminating at the datacentre, bandwidth speed at the branch office and number of concurrent connections for remote clients.

Delivering optimization and acceleration techniques combined with visibility and control of applications through Expand’s Layer 7 QoS capabilities, service providers are able to increase bandwidth availability, reduce latency and assure improved user experience. Expand has a number of existing service provider customers including Unisys, Fujitsu Services, Telkom and Clear Channel. Marco Tesini, Business Operations Director Global Outsourcing Infrastructure Services, Unisys comments:

“Expand Network’s offering has a broad and advanced feature set that complements Unisys already existing managed services. It can improve the performance of applications from Microsoft Exchange to Remote Desktop Protocol to Terminal Services and supports our customer’s global IT initiatives. Working together to deliver the new managed WAN optimization service; we believe poor performance issues will be easily addressed in the future.”

With Expand’s complete end-to-end WAN optimization offering and flexible deployment options, service providers can be confident in meeting customer needs around major IT initiatives, including server based computing; virtual desktop infrastructure; and branch office server consolidation and replacement, as well as enhancing 3G/4G mobility for remote and mobile workers.

As part of its go-to-market strategy for its new commercial offering Expand is launching its new ‘Managed Service Provider’ partner program, and is seeking service provider partners (MSPs, Telcos and Cloud providers) that are currently active in designing, building, implementing and managing services to end user organizations. Based on commitment, competencies and capabilities, the benefits of the program include preferential discounts, technical support services and access to sales and marketing resources.

More info: