The Convergence of E-Commerce and IP Business-Grade Messaging

By Bob Jones, AT&T Networked Commerce Services

(originally published in the March/April 1998 issue)

As more and more businesses seek to build their mission critical business solutions on IP networks, networking providers must examine corporate requirements for electronic commerce using the Internet, intranets, and extranets. Businesses crave the ease of use IP technology promises their companies-to take advantage of the extra benefits, features, enhancements and cost savings that IP technology can provide them.
So, why not use the public Internet to conduct business? Because today's corporations recognize the crucial difference that separates the public Internet from a private IP network-IP networking is more reliable, more secure and more accountable. And in order to obtain those levels of security, reliability, and accountability, corporations are turning to networking providers to develop IP solutions for their businesses.
This isn't a surprising trend. It's the natural evolution of the technology over the next three to five years. In fact, general Internet industry trends can be segmented into three stages.

1. IP Access
In the short term, IP access will be the hot area-businesses giving their constituents easy access to the 'net. Industry surveys show that companies are increasing the amount of dedicated IP access they purchase.

2. Intranets on Virtual IP Networks
The next stage for businesses will be the move to virtual private networks. Companies are beginning to see the benefits of running more and more intra-company applications off of an IP network. So, don't be surprised if the industry witnesses an ever-increasing emphasis on security, on hybrid solutions, and on managed networking.
There also will be a continued emphasis on hosting services. For example, AT&T customers are asking for more messaging, caching and mirroring capabilities for their IP networking applications as their corporations become more global.
Companies want to link web sites to legacy applications. Providing this help may be a major opportunity for Value Added Resellers (VARs) and systems integrators. Different levels of messaging also will be required-with small businesses needing basic mailboxes and big companies requesting gateway level support, translation capabilities (e-mail to fax or EDI to e-mail) from providers and more accountability for message delivery.

3. Extranets on Virtual IP Networks
Business communities will share information on an Inter-company basis. An example of this is the North American Automotive Network Exchange (ANX). This is an extranet linking automotive component suppliers, vendors and databases together over a standard TCP/IP connection.
These trends are having a profound effect on the messaging industry and on the decisions of those who purchase messaging services.
Messaging services and the business processes they expedite are beginning to fall into two categories. On the one hand, there are basic messaging capabilities that can be bought for a flat rate on the public Internet. This type of messaging is seen as the primary benefit of Internet access. It's an efficient, inexpensive way to funnel non-critical messages.
On the other hand, there are mission critical business processes that require feature-rich messaging capabilities available from today's Value-Added Network (VAN) providers. Businesses don't mind paying more for the proprietary, secure, reliable and accountable networking environment a VAN provides. And companies feel more comfortable entrusting their mission critical messages to a network that also gives them features such as signed receipt, guaranteed delivery and list management.
That really becomes the core issue for messaging providers-assessing the value businesses are assigning to messaging and its role in business processes.
More than ever before, companies are asking themselves: If this message doesn't get through, what will the value of that lost or delayed message be to my business? The answer is different for every company and for every message.
Fortunately, messaging technology will accommodate the requirements of both of these business needs. (See illustration.) A technology space is evolving that boasts the best of both worlds-IP Business-Grade Messaging-where corporations can take advantage of a range of messaging solutions based on the value they assign to each business process for which they use messaging.

IP Business-Grade Messaging is the Killer Application for the Internet
Messaging providers now must meet the challenge of making the evolution from proprietary-based e-mail solutions to IP Business-Grade Messaging Solutions, seamless to their customers. It's the provider's responsibility to manage and meet the expectations of today's businesses-whether they need basic messaging capabilities or another more value-oriented solution to carry their mission critical messaging.
The successful VAN providers of the future will be those that offer IP Business-Grade Messaging solutions that address the needs of e-mail users seeking Internet-based alternative and complementary services to work with existing mail applications. These providers will win in the marketplace by enabling their customers to focus on core business activities, while relying on the VAN to accommodate their evolving communications needs with effective technologies and global connectivity. Outsourced messaging, remote networking and Internet access are the keys to providing customers with technological sophistication and information resources without the significant investment and complex administration often associated with premises-based solutions.
That's the good news. And that's an IP Business-Grade message worth sending.

Bob Jones will be speaking on the "Requirements for EC on Internet, Extranets and ISP" session on Tuesday, April 28 from 2:30-4:00 at EMA'98 in Anaheim, California.