Tales from the front: Stone Energy saves with consolidation

NETWORK WORLD NEWSLETTER: CAROLYN DUFFY MARSAN'S ISP NEWS REPORT
08/10/05
Today's focus: Tales from the front: Stone Energy saves with
consolidation

Dear networking.world@gmail.com,

In this issue:

* Stone Energy uses AT&T for data, voice and dedicated Internet
  access services
* Links related to ISP News Report
* Featured reader resource
_______________________________________________________________
This newsletter is sponsored by Akamai
Download the Network World Special Report: Accelerating
Web-based Applications: Managed Services Offer Benefits Without
Infrastructure Headaches

Look at most companies and you'll find one thing in common, a
move to Web-enable mission critical applications. A new breed of
managed services, aimed directly at accelerating performance and
availability of Web-based applications, helps companies attain
their goals of profit and growth - no matter how far or wide the
audience they are trying to reach. Learn how Web-based
applications can allow your company to boost the bottom line.
Download this Special Report today!
http://www.fattail.com/redir/redirect.asp?CID=109891
_______________________________________________________________
GARTNER'S SECURITY HYPE-O-METER

What is hype and has it influenced your network security
efforts? At a recent Gartner security summit, analysts described
what they say are "The Five Most Overhyped Security Threats,"
risks that have been overblown and shouldn't be scaring everyone
as much as they seem to be. For more, click here:
http://www.fattail.com/redir/redirect.asp?CID=109850
_______________________________________________________________

Today's focus: Tales from the front: Stone Energy saves with
consolidation

By Carolyn Duffy Marsan

Stone Energy, a Lafayette, La., oil and gas company, has
squeezed huge savings out of its monthly IP network charges by
consolidating links with one ISP.

Stone Energy's all-IP network has 1,000 users located in the
company's main offices in Lafayette, New Orleans, Denver and
Houston. The network also supports remote users located on
production platforms in the Gulf of Mexico, the Rocky Mountains
and the plains of Wyoming.

Until recently, Stone Energy used a mix of ISPs for its network
links, which range from private lines to microwave and VSAT
links.

"We were farming it out to different companies depending on
where we were headed with the circuit," says David Kennedy,
director of IT for Stone Energy. "Some areas we were using AT&T,
but in other areas AT&T was more expensive and we found cheaper
links from someone else."

A year ago, Kennedy started to see equilibrium in pricing in
most of the markets where Stone Energy does business. At that
point, he started negotiating with various ISPs including AT&T,
Bell South and SBC to find one carrier that could provide all of
the company's local, long-distance and data services.

Ultimately, Stone Energy chose AT&T. Stone Energy awarded AT&T a
three-year, $1 million contract to provide data, voice and
dedicated Internet access services
<http://www.att.com/news/2005/07/07-2>

"All the carriers came in with very competitive bids," Kennedy
says. "Our concern with the other carriers is that once again
we'd be getting into a reseller-type of position. For example,
Bell South has no long-haul data network of its own. They use
somebody else's network. With AT&T, we have some assurance that
if the traffic is passed off to other networks, it's still on a
backbone that's whole-owned and controlled by AT&T. That helps
us sleep at night."

By consolidating all of its network services with AT&T on one
master contract, Stone Energy is saving around 20% per month,
Kennedy says.

At the same time, Stone Energy has increased its bandwidth to
support a new data back-up and recovery application that allows
the company to mirror important data at three locations.

"Now we have DS3s on all the main links between our major sites
to support this storage-area networking and back-up strategy,"
Kennedy says.

Kennedy's advice to other IT executives who are using a mix of
ISPs is to try and get a better deal by consolidating network
services. "Shop the ISPs," he recommends. "They get real
aggressive if you come back to them with competitive bids."

While Kennedy is excited about the cost savings from
consolidating his network services with AT&T, he says his top
three priorities for the company's network are reliability,
interoperability and security. He says all three of these
priorities pushed him towards AT&T.

"Historically, when other carriers have come and gone, AT&T has
remained," Kennedy says. "AT&T has long reach. They can get in
and work with just about anybody. And in some of the remote
locations where we work, there are still local, privately owned
telephone companies. These companies are more willing to open up
and work with AT&T."

Kennedy says the pending merger between AT&T and SBC doesn't
worry him much.

"I'm a customer of both," he says. "In Houston, we don't have
the option of AT&T local service, so we're with SBC. SBC has a
good, progressive business model. Out of all of the Baby Bells,
I'm happiest with them buying AT&T."

Despite his comfort level with AT&T, Kennedy chose to award a
three-year contract with the ISP rather than a longer-term deal.

"Four years is too long, and two years is too short," Kennedy
says. "Three years is long enough to give you a better discount
on the pricing. But it's short enough that you're not getting
locked into technology that would hurt you in the long term."

The top 5: Today's most-read stories

1. New York courts find security in IP video
<http://www.networkworld.com/news/2005/080805-ip-video.html?t5>

2. Microsoft settles with 'Spam King' for $7 million
<http://www.networkworld.com/nlisp4727>

3. German bank launches new system to combat phishing
<http://www.networkworld.com/nlisp4728>

4. Anti-spyware firm warns of massive ID theft ring
<http://www.networkworld.com/news/2005/080505-id-theft.html?t5>

5. Crashing the 'Net
<http://www.networkworld.com/columnists/2005/080805buzz.html?t5>

_______________________________________________________________
To contact: Carolyn Duffy Marsan

Carolyn Duffy Marsan is a senior editor with Network World and
covers emerging Internet technologies and standards. Reach her
at <mailto:cmarsan@nww.com>
_______________________________________________________________
This newsletter is sponsored by Akamai
Download the Network World Special Report: Accelerating
Web-based Applications: Managed Services Offer Benefits Without
Infrastructure Headaches

Look at most companies and you'll find one thing in common, a
move to Web-enable mission critical applications. A new breed of
managed services, aimed directly at accelerating performance and
availability of Web-based applications, helps companies attain
their goals of profit and growth - no matter how far or wide the
audience they are trying to reach. Learn how Web-based
applications can allow your company to boost the bottom line.
Download this Special Report today!
http://www.fattail.com/redir/redirect.asp?CID=109890
_______________________________________________________________
ARCHIVE LINKS

Archive of the ISP News Report newsletter:
http://www.networkworld.com/newsletters/isp/index.html

Wide Area Network Research Center:
http://www.networkworld.com/topics/wan.html
_______________________________________________________________
Delivering web applications over the WAN: The new web tier

Experts discuss how to better manage and improve the performance
of web-based applications across the extended enterprise.
Webcast addresses the need for a new architecture tier that
focuses exclusively on this issue.
http://www.fattail.com/redir/redirect.asp?CID=109795
_______________________________________________________________
FEATURED READER RESOURCE

HARD WORK, GOOD PAY

According to Network World's 2005 Salary Survey, network
professionals are enjoying substantial increases in pay,
especially at the highest- and lowest-tier job titles. But are
those increases coming with higher titles, more work or both?
Find out if compensation alone is keeping network professionals
happy in their careers - or is something else? Click here:
http://www.networkworld.com/you/2005/072505-salary-survey.html
_______________________________________________________________
May We Send You a Free Print Subscription?
You've got the technology snapshot of your choice delivered
at your fingertips each day. Now, extend your knowledge by
receiving 51 FREE issues to our print publication. Apply
today at http://www.subscribenw.com/nl2

International subscribers click here:
http://nww1.com/go/circ_promo.html
_______________________________________________________________
SUBSCRIPTION SERVICES

To subscribe or unsubscribe to any Network World e-mail
newsletters, go to:
<http://www.nwwsubscribe.com/Changes.aspx>

To change your e-mail address, go to:
<http://www.nwwsubscribe.com/ChangeMail.aspx>

Subscription questions? Contact Customer Service by replying to
this message.

This message was sent to: networking.world@gmail.com
Please use this address when modifying your subscription.
_______________________________________________________________

Have editorial comments? Write Jeff Caruso, Newsletter Editor,
at: <mailto:jcaruso@nww.com>

Inquiries to: NL Customer Service, Network World, Inc., 118
Turnpike Road, Southborough, MA 01772

For advertising information, write Kevin Normandeau, V.P. of
Online Development, at: <mailto:sponsorships@nwfusion.com>

Copyright Network World, Inc., 2005