Leased Lines - Why SMEs need them

The Leased Line

When you are looking for a high-speed internet connection for your small or medium sized business (SME), you must consider the requirements of both speed and security. In this scenario, a single or multiple DSL connections fail because they can’t provide the benefits a leased line can, irrespective of the cost factors involved. But what are Leased Lines?

Leased lines or private networks

By definition a leased line is a communications network between multiple locations, provided on a lease by a service provider. This can be for voice and/or data transfer, or for internet access. This means that the service provider lays an exclusive fiber optic cable between the locations that need to be connected. By virtue of this being an exclusive connection, there are certain inherent advantages that a leased line provides its users.

• It is an exclusive line between two or more points, which guarantees bandwidth availability
• Since it is exclusive, security implementation is also a lot easier when compared to other connections
• For organizations that need extensive internal communications, using a PBX terminal on either end can prove to be an excellent replacement for traditional POTS communication lines.
• For organizations with a global presence, extending the PBX terminals using an International Private Lease Circuit (IPLC) which is a dedicated leased line provided between two countries, long distance communications can be made virtually free of cost, within the organization, resulting in tremendous reduction of communications costs.
• For organizations that have different teams accessing the same application or data sources, a Leased Line provides a secure connection for all users to the central repository or application server.

Historically, leased lines have been used for practically every single mission-critical application such as banks, government agencies, telephone networks and ATM machines (although ATMs now operate through Very Small Aperture Terminal (VSAT) satellite links as a more secure though lot more expensive alternative).

The inherent “Always On” nature of a leased line is a blessing for organizations that have the basis their business transactions in one or other form of data transfer, as this assures the agreed quantum of symmetric upstream and downstream bandwidth, irrespective of when or how it is being used. This feature, along with the typical Service Level Agreements offered by service providers gives businesses a secure and reliable connection to their application, information, data and communications infrastructure with a guarantee of availability.

If you are a business owner looking for an internet or network connection, you must consider the following aspects while making your decision, as it can guide you towards making the best decision.

• Is your business dependent on connectivity . . .
• To source/validate/process information like in the case of B2B and B2C e-marketplaces?
• For your CRM applications which are either hosted and provided to you as a Software as a Service (SaaS) or located centrally in your premises, accessed by multiple users within or from multiple locations?
• Do you have multiple locations/facilities that need to be connected at all times or at least during business hours, and need extensive communication between personnel from different facilities?
• Do you have information that needs to be kept strictly confidential and secure, yet available across your stakeholders within your network?
• For your CRM applications which are either hosted and provided to you as a Software as a Service (SaaS) or located centrally in your premises, accessed by multiple users within or from multiple locations?

When you are a home user or a small business user with less than 10 people accessing the internet for activities that include uploading of files or using VoIP, your upload speed doesn’t necessarily come under the radar and T1 speed doesn’t normally figure in discussions about internet connectivity. Same goes for businesses that use the Internet merely for email or perhaps research. However, if you have

• A server that people access via the internet
• A calling system like a toll-free line, or a customer support desk
• A requirement to upload files to remote servers or other locations accessed via the internet

If your answer to one or more of the above is a yes or even a ‘maybe’, then you should think no further, since a leased line will be your best option, be it a 64 kilobit, fractional, full or a bonded T1, depending on your specific requirement.