PSINet - UBM

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					       PSINetÕs
      Response to

Network ComputingÕs RFP




 Monday, April 27, 1998



     Michael Binko
      Rex Stover
I.      Overview

This summary will identify and demonstrate how PSINet is uniquely qualified to provide
ACME with the cost solutions and the connectivity tools it needs to improve and enhance
its existing network. PSINet proposes utilizing its IntraNet service, a superior, managed
Internet-access scalable service providing a full-time dedicated connection to the Internet.
PSINetÕs proposal addresses ACMEÕs five main objectives for improving its existing
network.

á Reduce current WAN connectivity costs

The PSINet proposes connecting all of ACME implementation sites to PSINet's IP-
optimized, switched Internet network, resulting in reduced costs in leased line
infrastructure costs. In this configuration, the ACME can utilize shared public Internet
space as well as private communications capabilities, all on the same network. The
PSINet proposal offers all the advantages of a WAN without the associated costs of
ownership and maintenance.

á Enable a centrally managed security policy/solution

The PSINet proposal provides four main security benefits. (1) Frame Relay PVCs will
ensure private and secure communications between sites. (2) Firewalls at the R&D,
accounting, and personnel sites will provide the strongest security available for both site
security (protecting the LAN) and transit security (protecting communications between
the LANs). (3) Strong authentication will allow dial-up site (whether remote user or
branch office) access to the IntraNet similar to a dedicated location. (4) PSINet's
management of the Global IntraNet Security Policy will provide centralized control while
allowing, to the greatest extent possible, decentralized decision making.

á Allow network access for remote users

Used in conjunction with the ACME IntraNet, PSINet's InterRamp service will allow
mobile users to make local phone calls to more than 1,400 Points-of-Presence (POPs)
worldwide. InterRamp will provide remote users with POP access to the Internet as well
as ACMEÕs Intranet. The use of crypto-cards will ensure strong user authentication for
remote users. PSINet's Account Management System will assist ACME's help desk to
administer and control individual accounts through an easy-to-use Web-based interface.
This system performs a variety of functions, including the addition/deletion of accounts,
enabling/suspension of accounts, changing of passwords, and email aliases.

á Allow easy expansion and integration of ACME's vendors and suppliers
to the supply chain network

Integrating entities (vendors/suppliers) into the ACME IntraNet will improve EDI Data
flow and all other IP traffic that ACME deems necessary, making it possible to add
entities at any time ACME remains in control of the central security policy.
á Direct access to the Public Internet

Each site will have access to the public Internet, a factor that will reduce traffic flow on
ACME's private WAN. Reducing public Internet traffic on the private WAN will
restrict nonessential traffic flows.

PSINet's proposal will achieve all of the tasks and objectives stated by ACME through a
cost-effective and scalable solution, utilizing IntraNet and InterRamp service to improve
Internet access for the organization. Enhanced connectivity and budget-conscious remote
access will contribute to an increase in ACMEÕs employee productivity rate by
leveraging increasingly valuable Internet resources.
II.      Technical Description

2.1 How will your solution increase the management and administration capabilities of
our VPN environment?

The Solution PSINet is proposing is a managed solution. The routers, CSU/DSUÕS,
telco lines, Internet access, and IntraNet are all run by PSINet. This is going to allow
ACME to run their LANÕs without having to worry about the WAN.

2.2 What special features and services does your solution support? Briefly document the
features of your solutions that make it stand out from the competition. If you can point
out specific instances against other vendors, all the better.

-     Security Consulting and Implementation
-     Network Management and Monitoring
-     Pre-configured hardware Ð Internet Router and CSU
-     Network Number Assignment
-     Domain Name Registration
-     Creation and Maintenance of primary and secondary DNS
-     24 hour, seven-days-a-week operations and monitoring
-     Unlimited customer support

2.3 A cost justification of your solution.

See attached pricing.

2.3 Timeline for major events such as system analysis, installation, shakedown, and
turnover.


Day 1 Order place with PSINet.
Day 3-4 Order is processed, circuits are ordered.
Day 5-7 Your Network Numbers are assigned, Domain Name Service is initiated, PSINet
SPART contacts your technical staff/security officers to start planning integration.
Days 6-9 Your hardware is preconfigured and shipped
Days 44-70 Your circuit is installed and tested
Days 44-70 Your installation phase is underway the anniversary date for the service will
be established once all sites are up and on the Intranet.
Days 74-100 Your account is transitioned to the Maintainence Phase.

2.4       Describe SLA and remedy.

PSINet provides a 99.9% Service Availability. This is in regards to all sites acting as
one. If one site is down, PSINet considers all sites down.
If service is interrupted, PSINet outlines an escalation procedure for the customer to
follow to pursue resolution on the outage. Further, PSINetÕs Network Operations
Netwatch Team will be monitoring all sites on the IntraNet and if any site is down,
Operations will begin testing to determine where the outage is and proceed with measures
to reinstate service to the site.



PSINetÕs proposal is designed to take advantage of the benefits of the Internet while
providing the speed and security of a private Wide Area Network.

Secure IntraNet
SecureIntranet is PSINetÕs private IP networking with mediated Internet access services, allowing
all of ACMEÕs site connected to the secure IntraNet to have access to the Private IP Network and
the Internet simultaneously. This implementation, completely managed by PSINet, will give
ACME the performance, security, and high-quality access to the global Internet.

PSINet will pre-configure and send out all of the equipment necessary to implement this
networking solution. Once a security policy is agreed upon by ACMEÕs Intranet security officer
and PSINetÕs SPART team, the Network configuration will be implemented in accordance to the
agreed upon policy.

The Link security (security between sites) will be a combination of Frame Relay Private Virtual
Circuits (PVCÕs) and the existing encryption capabilities that occur between the existing
firewalled LANÕs. This combination, the finest in networking today, provides the best form of
security between sites with the greatest ease of use to end-users.

The Site security will be provided by the SecureIntranet Firewall Router, that will utilize
Dynamic Packet filtering to provide a perimeter defense to the individual LANÕs, as well as the
IntraNet as a whole.

Features to the service include:
• Security Consultation and implementation
• Network Management and Monitoring (99.9% availability guaranteed)
• Pre-configured hardware -- Internet Firewall Router and CSU/DSU.
• Network Number Assignment
• Domain Name Services for all sites
• Creation and Maintenance of Primary and Secondary DNS
• 24 hour, seven-days-a-week network operations support and monitoring
• Unlimited on-going customer support

Due to utilizing PSINetÕs IP-Optimized Frame Relay Network, this solution will allow a level of
performance and security that cannot be matched by any other provider.

•   For further specifications please see the section titled IntraNet Service Specification.

LAN-ISDN
PSINetÕs LAN-ISDN services provides dial-up Internet Protocol (IP) connectivity through
PSINet points-of-presence (POPs) to small, remote sales offices. Each assigned LAN-on-Demand
User Account provides dial-up IP connectivity through one (1) routed LAN connection for
multiple users at one (1) customer site. A PSINet Customer Support Group provides direct
administrative and technical support to one (1) designated Customer Technical Representative for
registration, configuration, installation, and integration of the customer LAN into PSINet for
business Internet applications, and ongoing consulting to help the customer get maximum benefit
from the service.

•   For futher specifications please see the section titled LAN-On-Demand Service Specification.


InterRamp
PSINetÕs InterRamp Remote Access for Business provides dial-up IP connectivity
through PSINet points-of-presence (POPs) to groups of mobile workers and telecommuters for
general Internet applications, and for remote user access to Internet-connected customer sites.
Central administration of individual InterRamp User Accounts within a customer group is
provided through a password-protected web-based Account Management System (AMS) that is
controlled by a designated Customer Technical Representative (CTR). Each assigned InterRamp
User Account provides dial-up IP connectivity for one (1) host computer and one (1) electronic
mail account. PSINet provides customer support to one (1) designated Customer Technical
Representative and up to three (3) Customer Help Desk Staff, who in turn provide direct end-user
support for the InterRamp User Accounts within their group.

Roaming on PSINetÕs network: For customers who travel to other PSINet service regions,
roaming service is available. Roaming on PSINetÕs network is defined as the ability to use local
access numbers in PSINetÕs service regions outside the continental United States. Currently local
access numbers for roaming are offered in many cities in Canada, Japan, the United Kingdom and
Western Europe.

Roaming enabled by iPass: For customers who travel outside PSINet service regions, roaming
service is available through our association with iPass, provider of Internet-based global remote
access solutions. Customers may use their InterRamp account to connect to the Internet through
iPass access numbers in over 150 countries.

Security for Remote Users will be enabled via Access Control Card user authentication tokens;
hand-held challenge-response calculators. Challenge-response calculations are based on the DES
cryptographic algorithm standardized and used by the U.S. Federal government. The
cryptographic secret used in the calculation is embedded in the token so that attempted extraction
is difficult without damage to the token itself. When a remote user requires access to an
application residing at your site, the person initiates a telnet session to RouteWaller equipment
defending your security perimeter. The user is then prompted for their user name. An one-time
alphanumeric challenge is displayed. After entering their unique, secret PIN code into the token's
keypad, the remote user enters the challenge displayed in their telnet session into the token card.
The card automatically calculates an alphanumeric response, with which the remote user responds
via the Telnet session. The entered response is then evaluated by authentication sever
enforcement mechanisms. If the response is valid, the remote user is allowed those forms of
access assigned to him by your established security policy.

For further specifications please see the section titled InterRamp Service Specification.
Objectives and Requirements

Provide user authentication within existing framework of NDS, NT Domains. All
users have accounts in both of these environments.

Our proposed Intranet solution will allow the ACME Company to continue its
existing framework for user authentication within both NT and NDS domains,
assuming an IP environment is used at all locations. With our proposed
solution, all users will have the same access to both NT and NDS domains as
they do with their current structure.

Provide centrally-managed VPN security of distributed sites. Tiered management
with separate access/auditing controls is highly desirable, but not required
PSINet will centrally manage the Intranet's security environment. PSINet's security, planning,
and response team (SPART) is well equipped to handle all security issues. Specifically, PSINet
will provide a two-tiered approach to security management. First, PSInet will implement a Global
Intranet Security Policy that addresses auditing, monitoring, and access controls for the entire
Intranet. In addition, PSINet will consult with individual sites to customize security so that it
meets specific needs while ensuring conformity to the Global Intranet Security Policy.

Ensure compliance with local encryption policies and foreign governments, and
minimize weaker security policies.

PSINet will provide data security between sites utilizing Frame Relay
permanent virtual circuits (PVCs ). This advanced technology eliminates the need for encryption
between sites; thus, compliance with local and foreign government encryption policies is not an
issue. The Frame Relay PVCs will provide greater security as well as faster data throughput than
technology that requires encryption [???]


Secure access between the following distributed departments. The security must be
transparent to end user, and connections should be secured from network analysis
and other passive attacks.

á R&D labs between New York, London, and Paris 2 sites. These departments
own their subnets at each location.
á Personnel and Accounting departments between New York, London, Paris,
both Mexico City sites, Montreal, Detroit, and Tampa. These departments own
their subnets at each location.
á Sales offices must have secure communication back to New York.
á Remote users, primarily sales/marketing and executive personnel,
connected via ISPs, will be using a mix of Windows 3.1/95/NT Workstation
and Macintosh desktops and laptops.

R&D labs between New York, London, and Paris 2 sites. These departments own their
own subnets at each location.

The subnets for the R&D labs will remain separate and secure by the existing firewalls.
Personnel and Accounting departments between New York, London, Paris, both Mexico
City sites Montreal, Detroit, and Tampa. These departments own their own subnets at
each location.

These subnets will remain separate

Sales offices must have secure communication back to New York.

Sales offices secure communications will be taken care of using the LAN-ISDN service
and access entry in to the IntraNet.

Remote users, primarily sales/marketing and executive personnel, connected via ISPs,
will be using a mix of Windows 3.1/95/NT Workstation and Macintosh desktops and
laptops.

InterRamp remote access will be provide to the necessary remote users with Crypto Card
access back in to the IntraNet.

Provide or demonstrate the ability to migrate the existing X.25 EDI links to supply-
chain VPN.
PSINet will convert ACME's existing EDI system into part of the ACME
IntraNet solution. This process will allow suppliers, vendors, and partners
the ability to communicate the EDI data back to ACME and allow ACME to have
a uniform data communications infrastructure internally and externally.

Train administration/helpdesk personnel and support assistance for 30 days.

PSINet will assign a project manager to manage the implementation process,
including training and assisting ACME's administrative/help desk personnel,
from the start of implementation until service becomes fully operational at
all locations and sites. We will manage the implementation process beyond
the 30-day requirement. In addition, PSINet will provide unlimited
administrative and technical contacts for the duration of the service.

Consult with ACME, our customers, and our vendors on supply-chain VPN
deployment.

As needed, PSINet will provide consulting and technical [?]support to ACME
to allow the company to further integrate new and existing customers and
vendors into the ACME IntraNet solution---allowing for unlimited expansion
of the supply-chain network.
III.   Network Map
IV.     Support and Consulting

Customer Service Management and Structure
PSINetÕs customer service division is highly structured to provide specialized technical support
and maximize support experience; each specialized support group is managed and consists of
separate support staff personnel. This assures that our customers receive the highest level of
customer service in the industry.

Corporate Installations - This support group is dedicated entirely to new circuit installations and
configuration. It is this groupÕs extensive experience that assures that any new PSINet services
are installed and configured quickly and efficiently eliminating any extended service outages or
delays.

Network Operations - PSINetÕs Network Operations Center (NOC) is staffed 24 hours a day,
365 days a year. This group monitors not only the global PSINet network infrastructure, but also
monitors all dedicated circuits from local Telco offices to your location. This group interacts
directly with local Telco offices and coordinates field technicians (PSINet and non-PSINet) on
your behalf.

Rapid Response - Any company whose Internet connection is a critical needs to be prepared for
a network emergency. PSINetÕs Rapid Response group is your team of technical experts ready to
handle any network emergency that may occur. The group specializes in circumventing failures
that may be a result of other network carriersÕ outages. They have a response time of within four
hours to handle and respond to issues. Most of the time, they are much quicker then the four-hour
goal.

Internet Services - This group specializes in supporting customersÕ Internet Services
configurations. This may include configuration of Email servers, Usenet NNTP servers, or DNS
(domain name services) servers.

Details on how monitoring is handled

PSINet's Network Operations Center (NOC) continuously monitors backbone bandwidth
utilization and traffic patterns and via our Network Management System (NMS), live backbone
trunk monitoring tools, RADIUS authentication logging, and SNMP statistical monitoring.
PSINet customers are actually an extension of the PSINet backbone so monitoring and
maintenance of this connection is imperative. PSINet's 24 X 7 Network Operations Center
(NOC) utilizes simple yet effective monitoring techniques to ensure connectivity to the backbone.
One such technique is to "listen" for RIP broadcasts from it's dedicated leased line customers.
Customers leased line routers broadcast RIP to PSINet about every 30 seconds. If RIP
announcements are not heard from the customer after about 3 minutes, an alarm in our NOC will
display that customers account and the Network Engineers on duty will begin troubleshooting
immediately, often before the customer even knows of their connectivity issues. Upon
identification of a network problem or issue, the 24x7 NOPs team will begin action to rectify any
situations immediately. A division within Network Operations called Netwatch is responsible for
proactively contacting customers in time of customer line outages. These contacts can come in
the form of a phone call, a fax or a page.

In the unlikely event that your technical support issues are not satisfactorily resolved, the
following management contacts should be utilized. The escalation path is only intended for use if
attempts at resolution using standard PSINet technical support have been unsuccessful. Request
that your technical support contact refer you to the manager on call. However, if the issue that
you are confronted with is severe and needs immediate attention, the first escalation contact
should be made. All escalation issues directed to management should first be sent via electronic
mail to csg-manager@psi.com. The average response time for customer escalations is one (1)
hour on a 24X7 basis. PSINet will provide PBS listed contacts for use in times of escalation.

Security Planning and Response Team (SPART) - Since IntraNet is a completely managed
service, PSINet handles all issues of fortified network privacy and Internet security. The Security
Planning and Response Team (SPART) is a specialized team formed to handle and address any of
your Internet security concerns.

SPART handles any Internet security issues for your Internet connection with PSINet. This
group can provide detailed analysis reports for any attempted security compromises on your
network. SPART also manages all Internet security for PSINetÕs corporate headquarters and
PSINet remote offices throughout the world.
V.     Pricing

Please see included pricing spreadsheet.
PSINet Company Background

Executive Summary

PSINet is one of the largest and most experienced Internet service providers in the world. With
more than 15,000 corporate customers in the United States and abroad, our solutions have been
proven again and again in demanding real-world environments.

The founders of PSINet have been building the Internet since the 1980's, continually being the
first to create, implement, deploy, or commercialize every important technical development that
makes the Internet -- and the global online community -- what it is today.

Our network provides access through over 350 Points-of-Presence (POPs) in North America,
Asia, and Europe. The backbone architecture that supports our service is a "cell switched"
network using Frame Relay -- the most reliable and secure in the industry. And, PSINet's long-
standing relationships with major inter-exchange carriers (IXCs) provide even greater reliability
to our T3-based networks.

PSINet is a growing presence in the international business community, with offices in eight
countries in North America, Asia, and Europe. Our clients include some of the largest
corporations in the world, as well as thousands of small and mid-sized businesses.

Once you've become a partner with PSINet, you'll discover why so many companies choose us
for their critical Internet applications -- and why so many stay with us for the long term. PSINet
makes it easy for them to satisfy all of their Internet requirements.


Company Founding and History

    PSINet Incorporated was the first national, commercial Internet service provider in the United
States and is currently the worldÕs largest Internet service provider. PSINet offers a broad
spectrum of turn-key solutions designed to meet the varied needs of its corporate customers,
ranging from dialup network services to high performance dedicated services using high speed
data circuits. PSINet offers its Internet solutions throughout the United States and Canada, and in
Europe and Asia.

    PSINet has been a pioneer in Internet culture, design, operation, and business since the
emergence of TCP/IP as a networking standard in the 1980s. PSINet founders, then as engineers,
researchers, and managers, built the first large statewide Internet network, the New York State
Educational Research Network (NYSERNET). In 1986 an elite team of pioneers including
PSINetÕs co-founder, William L. Schrader established a network for the National Science
Foundation (NSFNET), the predecessor to the Internet as we know it today. PSINet founders
were also busy establishing standards, many of which are the foundations of networking today.
Two of the four original authors of SNMP (the Simple Network Management Protocol) are part
of PSINetÕs current senior management team.

     PSINet was officially founded in 1989 by William L. Schrader and had a charter to establish
a reliable commercial communications network. Signing on 40 initial customers, PSINet became
the first commercial Internet service provider to provide public internetworking services.

        PSINet continues to remain a pioneering leader in the Internet industry. In 1991, PSINet
was the first Internet service provider to offer dial-on-demand connections for Local Area
Networks (LANs) bridging them onto the Internet. PSINet was the first to implement an ATM
network core with Frame Relay distribution technology in 1992. After ISDN technology was
created and standardized, PSINet was the first to offer ISDN access to the Internet in 1993. In
1994, PSINet was the first U.S. company to offer Internet access internationally. PSINet was the
first Internet service provider to own over 200 points-of-presence (POPs) in 1995.


PSINet Network Overview

Performance and Reliability Second to None

    PSINetÕs network was engineered and implemented for one purpose: to establish the highest
performance and most reliable commercial Internet network available. PSINet leads the industry
with a highly specialized and optimized network that provides premiere Internet services.
PSINetÕs network does not share bandwidth with telephone voice equipment or other non-
Internet-related communications. The entire network infrastructure was designed to optimize
Internet performance and reliability.

    PSINet pioneered dedicated Internet network design when it established the first
Asynchronous Transfer Mode (ATM) Frame Relay network in 1992. The combined use of these
two technologies enables PSINet to provide dedicated Internet services that offer maximum
performance and reliability.

     PSINetÕs network is constructed of hundreds of points of presence (POPs); extensions of the
actual network infrastructure. Traditional network designs are based on a ÒbackboneÓ model in
which all network traffic is funneled through a single network segment. Eliminating the
vulnerability of a single point of failure for all network traffic, PSINet created the first
infrastructure ÒcoreÓ composed of redundant high-speed dedicated circuits using ATM Frame
Relay switching technology.

     Traditional ÒbackboneÓ networks are Òrouter-based,Ó passing data packets from router to
router from source to destination. In addition to increasing the number of points of failure, slower
router technology delays packet delivery and creates congestion at major network nodes
ultimately resulting in packet loss. PSINetÕs ÒcoreÓ network is Òswitch-based,Ó using faster ATM
Frame Relay switching technology to deliver data packets. These high speed ATM switches
allow for the creation of Permanent Virtual Circuits, PVCs that enable data packets to travel
directly from source to destination avoiding unnecessary router processing. The ability to create
PVCs enables the network topology to be dynamically modified circumventing any points of
failure automatically. PSINetÕs ÒcoreÓ refers to the multiple ATM Frame Relay switches located
at all major POPs throughout the world. By optimizing this switching fabric, PSINet sends data
packets across the network core in four Òhops,Ó and travel anywhere across PSINetÕs entire
network in six hops or less. This is the lowest network diameter available by any commercial
Internet service provider.

         PSINet can guarantee the performance and reliability of its network primarily because it
is owned and operated entirely by PSINet. The only similarity between PSINet and all other
Internet service providers is that they all utilize the physical network connections of various
Interexchange Carriers (IXCs). However, PSINet is unique in that all network management,
maintenance, and equipment built upon the physical network connection itself is owned and
operated entirely by PSINet. This complete control has made possible the high level of
optimization and integration of all components of the entire network. PSINetÕs Network
Operations Center and Field Service divisions are entirely responsible and accountable for the
networkÕs performance and reliability.
PSINet Global Points of Presence (POPs)

     The key to PSINetÕs superior network is the use of distributed Points of Presence (POPs).
With over 350 POPs globally, PSINet has the largest ATM Frame Relay network in the world.
Rather than being mere entry points to a network backbone, PSINetÕs POPs are extensions of the
switch-based network infrastructure. PSINetÕs POPs are based on innovative engineering designs
utilizing standard, commercially available hardware. This assures that the technology
components used in the POPs are available, maintained, and enhanced by their respective vendors
(including Ascend, Cascade, Cisco, and other leading network hardware manufacturers).
Physically, each of the PSINet POPs is located in secure locations with redundant power and
network backup systems. They are monitored and managed continuously at the Network
Operations Center and are accessible 24 hours a day by field service technicians.


     PSINet dedicated Internet connections establish a direct connection from your physical
location directly to an ATM Frame Relay switch at a PSINet POP. This direct connection
extends virtually the optimization and performance of the PSINet network to your business
location. Other Internet service providers may utilize a ÒcloudÓ model where several dedicated
circuits are grouped together in a low cost
shared service. Using these cloud models, services such as Public Frame Relay Clouds and
SMDS Clouds (Switched Multimegabit Data Service) appear to offer cost-effective solutions at
first glance. Further analysis of the CIR (Committed Information Rate), the guaranteed rate of
data transmission, of the circuit reveals the reason for the lower costs. Typically, the guaranteed
rate of a cloud circuit is 50% or less of the actual circuit speed. For example, a 512K dedicated
cloud circuit typically has a CIR of 256K or less. With PSINetÕs direct connection model, the
guaranteed rate of the dedicated circuit always equals the circuit rate itself. For example, a 512K
circuit from PSINet will have a guaranteed rate of the full 512K.


Enterprise Services Overview

PSINetÕs IntraNet Service

     PSINetÕs IntraNet service provides a superior managed Internet access solution for companies
of all sizes that need a full-time dedicated connection to the Internet. IntraNet utilizes PSINetÕs
unique dedicated circuit model extending PSINetÕs network infrastructure to your physical
location. Using the IntraNet service, PSINet can offer Internet connections ranging in bandwidth
from 56K through T3. IntraNet also offers the unique ability to create PVCÕs (Private Virtual
Circuits) of separate, dedicated channels of bandwidth requiring no additional hardware or
circuits. This makes possible the ability to completely manage your Internet bandwidth. The
most common use of IntraNet PVCÕs is to create a separate, virtual channel of bandwidth to
separate traffic between sites from other Internet traffic in a secure manner.

    Since IntraNet is a completely managed service, PSINet handles all issues of fortified
network privacy and Internet security. The Security Planning and Response Team (SPART) is a
specialized team formed to handle and address any of your Internet security concerns.

     PSINetÕs IntraNet service is a complete business solution. If needed, PSINet can handle all
Internet domain name registration issues for you. In addition to the Internet connection itself,
IntraNet is backed by PSINetÕs industry leading Network Operations Center and Customer
Services.


Contractual Service Guarantees
         The PSINet service contract legally entitles you to certain guaranteed levels of Internet
service. If these service levels are not met, PSINet will credit your account for any service
outages that may occur. These service outages can be as short as 1% of any given 24-hour
period. You can be assured that your business critical Internet services will be the most reliable in
the Internet industry.

Networks in General

This paper explains some of the technologies that you will gain experience with in
Internetworking, so that you can make an informed decision for your Internet service. While
you're looking at Internet service providers (ISPs) there are three salient points in the connection
between your network and the "Internet" that you need to be concerned about: 1.) your
connection to the ISP's POP, 2.) the ISP's POP, and 3.) the ISP's network.

Your ISP's Network

Let's talk first about the network. Some ISP's will "outsource" their network. In other words, they
will use a third party network to pass traffic and to save costs they will pay someone else to
manage and control this. Other ISPs will make a capital investment in the routing, switching, and
circuit leases from telcos and will essentially "own" the network that they use to connect their
POPs together and to pass traffic to other ISPs on the Internet. This is often more advantageous
to you as a customer since it means that one company will be responsible for your service and
reliability, without the dependency or ability to "blame it on someone else."

For providers who own their own network, the ISP will order circuits from the local Bell
operating company or other local Telco to build their network infrastructure. When this is done
all circuits (T1 - T3) are ordered with standard telco B8ZS or "Clear Channel" encoding. This is
simply a standard encoding format and is part of the physical provisioning of the telco circuit. In
fact, all circuits ordered in PSINet's domestic network are provisioned with clear channel. What
does this mean to you as the customer? Next to nothing since this is pretty standard and most
national ISPs order circuits provisioned in this manner. What you should be concerned about, is
the protocol that the ISP runs OVER the backbone circuits, as this can vary and WILL certainly
affect your performance across the ISP's network.

As you are probably familiar, PSINet uses the Cascade 9000 Frame Relay/ATM Switching
technology in our POPs to connect these leased circuits. ATM is really a nebulous protocol as no
one has formally defined a single standard and many debates are ongoing as to how to ultimately
implement this. For these reasons, PSINet uses the Direct Line Trunking protocol, a Cascade
proprietary protocol, to connect the Cascade 9000 switches together. In addition, PSINet runs the
Frame Relay protocol (which we'll talk more about later) above Direct Line Trunking to define
"paths" across the network. This in fact creates a virtual switched network "fabric" below the
routing layer providing many more paths through the network for data to be routed. This
ultimately gives more ability to redirect traffic in the event of outages, as one can define the paths
that the routers can "see" instead of being confined to the best decision a router can make. The
additional advantage here to you as a customer is that when ATM does become the next Internet
transport standard, PSINet has already invested in the infrastructure to support this, and will
easily be able to implement new ATM-based technologies.

Router-to-Router Based Networks vs. Switched Networks
As mentioned previously, PSINet uses the Frame Relay protocol to pass traffic through our
network (customers using our InterFrame Service take advantage of this as well). Other
technologies such as Synchronous PPP or SMDS could be used instead but do not have the ability
to manage bandwidth and priority of traffic across the network. Frame Relay is a telephony
technology, built for speed and reliability. It allows for a layered switching fabric where the data
link layer determines the number of router hops instead of the network/IP layer. What our
network engineers have found in the last 8 years is that the key to best application performance
for the customer is to minimize packet loss across the network. Packet loss occurs in the buffers
of routers and therefore, by minimizing the number of routers that need to "open up" a packet and
make an informed routing decision, one can significantly reduce the opportunity for packet loss.
This is what the combination of Frame Relay and the Cascade switching technology allows
PSINet to do. A good analogy would be to enter a 50-story building and get into an elevator to
go to the 50th floor. In a router-to-router based network, you would need to stop at each floor,
wait for the elevator doors to open and close before going to the next floor, and so on. In a
network that has a switching fabric below the routing layer, you could enter the elevator and go
directly from the ground floor to the 50th floor. PSINet's first generation routing topology from
'92 - early '96 had a MAXIMUM router hop count of 4 to go from any extremity on the network
to any other extremity. This maximum hop count is referred to as the "network diameter". This
was by far the best available through any public ISP. Our first generation routing topology scaled
well to support up to 400 POPs (PSINet currently has 350+ worldwide). To be able to scale to
meet the growing needs of our worldwide expansion we redesigned the routing topology to be
regionalized. This increased our network diameter by 2 to a maximum of 6 hops (still the lowest
network diameter available by any commercial ISP), but will allow the network to grow to in
excess of 1,500+ POPs if needed. Many large and small businesses alike, including Merrill
Lynch, Fidelity, Kmart, and Delta, have chosen PSINet due to network reliability, 8+ years'
experience providing network and our customer support.

Your ISP's Point of Presence
The second piece in the puzzle is the ISP's Point of Presence. Is it designed for reliability and
redundancy? In each PSINet POP all circuits from customers and the network backbone are
brought directly into a Cascade 9000 switch. This has several significant advantages to you as a
customer. First, it eliminates several other points of failure---CSUs, cables, etc. that would be in
the loop between your circuit and a router. Secondly, since your circuit is terminated in a switch
(a smart Frame Relay device) PSINet can actually provide true Frame Relay across your circuit,
allowing you to take full advantage of the protocol's benefits (more later). Also, routers are more
likely to fail than switches, since they are making many more route processing decisions and
consequently, if your circuit is terminated in a router, and the router fails, this creates an
unsatisfactory failure mode. Lastly, PSINet incurs a lower per port cost to provide the service, as
one switch can support many more customers, where an ISP using routers in place of a switch
will need to make a larger capital investment in more routers. Ultimately, smart engineering
design allows PSINet to provide a high quality, reliable service at a lower cost.

The Connection between Your Site and Your ISP's Point of Presence
Finally, the most important part of the equation for you as the customer is the connection between
your site and the ISP's point of presence. For a leased line service there are essentially two
common ways to provide this link. Your ISP can offer you a 24-hour connection through the
local Bell operating company's cloud service, Public Frame Relay Cloud, or SMDS Cloud; or
your ISP may offer a point-to-point dedicated circuit. The RBOC Frame Relay cloud service is
often attractive due to the low charges incurred for a "zero mile" circuit. However, RBOCs--Bell
Atlantic, for example--will only guarantee or offer a Committed Information Rate (CIR) through
the cloud for typically one-half of the bandwidth that you purchase. For example, if you use the
Bell Atlantic Frame cloud to connect to an ISP and you purchase a 512K connection, you will
receive a CIR for 256K. This means that BA guarantees 256K of your traffic will reach its
destination, you can then "burst" or use the remaining 256K if it is available when you need it.
The burst bandwidth of remaining 256K is shared with all other users attached to the cloud.
Remember that your traffic is not on your ISP's network yet, it is merely on its way to the ISP's
POP at this point. Additionally, the ISP's connection to this Public Frame Cloud is terminated in
a router at their POP. Because it terminates in a router, which is not an intelligent Frame Relay
device (like a Cascade switch) you loose the benefits of managed bandwidth and enterprise
networking that Frame Relay can provide through the use of Permanent Virtual Circuits (PVCs).
5.3 Description of PSINetÕs Network and Peering

A current network map is attached. This map shows only PSINetÕs direct infrastructure, which
PSINet runs TCP/IP customers on. (When comparing other ispsÕ maps, be sure to compare only
the portion that TCP/IP runs on)

Network Architecture
PSINetÕs Internet-optimized network comprises four architectural layers that work in concert to
foster performance for present and future Internet applications.

At the lowest layer, PSINet is composed of private, dedicated, fiber-optic data circuits that afford
total control of its underlying network resources in a way not possible for those providers who
depend on outsourced, switched services. PSINet's backbone circuits provide for multiple
physical paths through the network, each controlled and managed by PSINet, collectively
procured from diverse suppliers.

At the second layer, PSINet's dedicated backbone circuits are managed and controlled for optimal
application performance using state-of-the-art Frame Relay switching technology. Deployed in
1992, the Frame Relay architecture of PSINet allows the network topology presented to PSINet's
Internet routers to differ from the underlying physical topology determined by its fiber-optic
backbone circuits. This "virtualization" of network topology minimizes packet loss -- the
principal enemy of Internet application performance -- in at least three ways:

(1) The simplified Internet topology means that packets are less likely to be lost through routing
failures. A common cause of packet loss in less well-managed networks is that, in the face of
large and complex routing tables, routers can "forget" where to send packets with particular
destinations. PSINet's simplified IP topology reduces the complexity of the routing problem, and
makes this mode of packet loss less likely.

(2) Simplified topology means that, on average, packets crossing PSINet pass through fewer
routers than is the case for traditional Internet architectures. Since a significant proportion of
packet loss occurs in routers, the probability of this mode of packet loss is reduced.

(3) Simplified topology means that relatively fewer processing and bandwidth resources are
allocated to distributing and processing routing protocol information. Routers are focused on
forwarding customer packets, less encumbered with routing protocol overhead --reducing the
chance of packet loss owing to secondary demands on router processing and input-output
capacity.

At the third architectural layer, PSINet's regionalized Internet routing architecture fosters reduced
packet loss by reducing the degree to which any single router on PSINet must have global
knowledge of either PSINet or the global Internet. An advanced routing architecture, in concert
with the underlying Frame Relay platform, allows PSINet to add equipment and bandwidth as
required to address subscriber growth. In this way, PSINet can gracefully scale to accommodate
many times its current subscriber base.

At the fourth architectural layer, PSINet's unique strategy of deploying distributed application
servers in nearly every PSINet POP also contributes to reduced packet loss. Distributed
processing support for applications like email, web, FTP, and news has the effect of disrupting
the transient patterns of traffic that lead to packet loss. While PSINet's switched infrastructure
allows intelligent management of backbone capacity to meet chronic overload conditions when
these occur, application performance may still suffer significantly even in the most amply-
provisioned network owing to subtle protocol effects. It is in these latter, more frequent
circumstances that customers benefit from PSINet's long experience, engineered network
topology, and distributed server strategy.

PSINet's advanced routing architecture, in concert with its underlying Frame Relay platform,
supports the addition of equipment and bandwidth as required to address subscriber growth. In
this way, PSINet can gracefully scale to accommodate many times its current subscriber base.
The current PSINet architecture is designed to scale up to 2000 POPs and 2 million customers.
PSINet's foundation on high-density, standardized equipment and its capability for engineered
topology allows for managed integration of additional dial-up access capacity and additional
backbone network capacity without significant architectural revision.

It is also this built in flexibility with which PSINet engineered our network that makes PSINet a
prime candidate for handling PBSÕ data needs. As PBSÕ demands upon the network expand, so
will PSINetÕs network. PSINet has established a network that has several built-in feedback
mechanisms that allows us to keep pace with the ever increasing demands of both developing
technologies that require higher bandwidth and the simple growth in popularity and prevalence of
the Internet. PSINet lays claim to three out of four founders of Simple Network Management
Protocol (SNMP), the de facto standard network management tool. PSINet uses SNMP to
monitor both traffic across our backbone, and across customer connections. SNMP gives PSINet
a way in which to predictably plan for network expansion. Predictable expansion demands
allows network upgrades to be handled in a logical, methodical manner.




Summary:

PSINetÕs physical infrastructure consists of leased circuits connecting Cascade fast packet
switches between PSINetÕs Points of Presence (POPs). The PSINet IP Internetwork is based on a
logical topology consisting of Permanent Virtual Circuits (PVCs) layered upon the physical
circuits between the Cascade switches. IP routers are at each endpoint of a PVC to provide IP
routing functionality. The IP routers are logically organized over our wide-area network in a
three-tiered hierarchy (reference Figure 1) consisting of super core, region core, and leaf routers.

At the logical center of the PSINet IP Internetwork are super core routers. These routers support
the complete Internet routing table and have fully meshed high-bandwidth paths to the rest of the
super core; external peering connections; and each of the respective region cores. Region cores
help to segment the network into logical topologies within their respective physical geographies.
Region cores are fully mesh connected to all other core IP routers within the region, and to the
super core. This has the advantage of localizing IP traffic and giving PSINet the ability to
distribute IP service machines within a specific geographic area. Finally, leaf routers are used to
provide IP connectivity to each Point of Presence (POP) from the region cores, and to support the
full suite of IP connectivity services that PSINet offers to it customers.
Figure 1 - Network Routing Topology

To be able to scale to meet the growing needs of our world-wide expansion PSINet designed the
routing topology to be regionalized. In order to optimize PSINetÕs backbone infrastructure for
optimum IP application performance the maximum network diameter is 6 hops (the lowest
network diameter available by any commercial ISP), and will allow the network to grow to in
excess of 1300+ POPs if needed.

Maintenance

PSINet is a high-quality international data communication network with exceptional stability and
latency characteristics. Occasionally, maintenance must be performed to ensure that PSINet
continues to function at a high level. This maintenance will be transparent to customers whenever
possible and will not induce unnecessary or extended service interruptions.

Network users will have appropriate notice of maintenance. Users include both customers and
PSINet employees responsible for maintaining services and supporting customers. Notice will
provide time to adjust schedules/services in response to regular/planned maintenance. Network
maintenance will be confined to a defined maintenance window. It will be planned in detail,
reviewed and approved prior to its implementation. Network customers will be notified of
maintenance affecting their service in sufficient time for them to prepare.

Maintenance will be scheduled and announced 7 days prior to implementation. All maintenance
of high or medium severity will be announced directly to customers. All scheduled maintenance
of High or Medium severity will be posted on the PSINet network status page (www.psi.com or
finger @status.psi.net). The maintenance window is midnight to 5 a.m. local time. Low severity
maintenance may be performed after business hours local time.

Uptime Determination:

The network uptime for PSINetÕs IP Internetwork is calculated to be 99.993%. This is
determined by measuring the aggregate of the average weekly network outage time within the
entire network in hours, as compared to the total possible aggregate network uptime in hours.
Redundancy

The key to effective network fail-safe fault management for PSINet resides in the current
technology (Frame Relay and Fast-Packet Switching) deployed throughout PSINetÕs IP
Internetwork. Frame Relay is a telephony technology, built for speed and reliability. It allows
for a layered switching fabric where the data link layer determines the number of router hops
instead of the network/IP layer. This in fact creates a virtual switched network "fabric" below the
routing layer providing many more paths through the network for data to be routed (reference
figure 2). This ultimately gives more ability to redirect traffic in the event of outages, as one can
define the paths that the routers can "see" instead of being confined to the best decision a router
can make. PSINet has determined that the key to best application performance for our customersÕ
is to minimize packet loss across the network. Packet loss occurs in the buffers of routers and
therefore by minimizing the number of routers that need to "open up" a packet and make an
informed routing decision, one can significantly reduce the opportunity for packet loss. This is
what the combination of Frame Relay and the Cascade switching technology allows PSINet to
provide.
ACME RFP Pricing
12 Month Contract Required
All in US$

Money Conversions Used (Foreign Currency to US$)
Canadian Dollars (CAD)      0.7
French Francs (FRF)       0.17
Mexican Peso (MXP)        0.12
British Pound (GBP)       1.67


SITE                         DESCRIPTION                       QUANTITY    PRICE    EXTENDED   SUBTOTAL
New York T1                  SecureIntraNet Installation Fee      1        $1,975     $1,975
London T1                    SecureIntraNet Installation Fee      1        $5,830     $5,830
Paris E1                     SecureIntraNet Installation Fee      1       $10,767    $10,767
Detroit 256k                 SecureIntraNet Installation Fee      1        $1,975     $1,975
Tampa 256k                   SecureIntraNet Installation Fee      1        $1,975     $1,975
Toronto 256k                 SecureIntraNet Installation Fee      1        $1,975     $1,975
Montreal 256k                SecureIntraNet Installation Fee      1        $1,975     $1,975
Paris 2 256k                 SecureIntraNet Installation Fee      1        $4,248     $4,248
Mexico City 256k             SecureIntraNet Installation Fee      1       $16,870    $16,870
Mexico City 2 256k           SecureIntraNet Installation Fee      1       $16,870    $16,870
US Site 1                    SecureIntraNet Installation Fee      1         $265       $265
US Site 2                    SecureIntraNet Installation Fee      1         $265       $265
US Site 3                    SecureIntraNet Installation Fee      1         $265       $265
US Site 4                    SecureIntraNet Installation Fee      1         $265       $265
US Site 5                    SecureIntraNet Installation Fee      1         $265       $265
UK Site 1                    SecureIntraNet Installation Fee      1         $667       $667
UK Site 2                    SecureIntraNet Installation Fee      1         $667       $667
UK Site 3                    SecureIntraNet Installation Fee      1         $667       $667
France Site 1                SecureIntraNet Installation Fee      1         $580       $580
France Site 2                SecureIntraNet Installation Fee      1         $580       $580
France Site 3                SecureIntraNet Installation Fee      1         $580       $580
Mexico Site 1                SecureIntraNet Installation Fee      1         $500       $500
Mexico Site 2                SecureIntraNet Installation Fee      1         $500       $500
Canada Site 1                SecureIntraNet Installation Fee      1         $410       $410
Canada Site 2                SecureIntraNet Installation Fee      1         $410       $410
SUBTOTAL                                                                                        $71,346

New York T1                  Internet Monthly Fee                 1       $2,400     $2,400
London T1                    Internet Monthly Fee                 1       $6,413     $6,413
Paris T1                     Internet Monthly Fee                 1       $8,962     $8,962
Detroit 256k                 Internet Monthly Fee                 1       $1,061     $1,061
Tampa 256k                   Internet Monthly Fee                 1       $1,061     $1,061
Toronto 256k                 Internet Monthly Fee                 1       $1,252     $1,252
Montreal 256k                Internet Monthly Fee                 1       $1,252     $1,252
Paris 2 256k                 Internet Monthly Fee                 1       $3,561     $3,561
Mexico City 256k     Internet Monthly Fee   1   $1,594   $1,594
Mexico City 2 256k   Internet Monthly Fee   1   $1,594   $1,594
US Site 1            Internet Monthly Fee   1    $245     $245
US Site 2            Internet Monthly Fee   1    $245     $245
US Site 3            Internet Monthly Fee   1    $245     $245
US Site 4            Internet Monthly Fee   1    $245     $245
US Site 5            Internet Monthly Fee   1    $245     $245
UK Site 1            Internet Monthly Fee   1    $470     $470
UK Site 2            Internet Monthly Fee   1    $470     $470
UK Site 3            Internet Monthly Fee   1    $470     $470
France Site 1        Internet Monthly Fee   1    $255     $255
France Site 2        Internet Monthly Fee   1    $255     $255
France Site 3        Internet Monthly Fee   1    $255     $255
Mexico Site 1        Internet Monthly Fee   1    $449     $449
Mexico Site 2        Internet Monthly Fee   1    $449     $449
Canada Site 1        Internet Monthly Fee   1    $375     $375
Canada Site 2        Internet Monthly Fee   1    $375     $375
SUBTOTAL                                                          $34,198
SITE                 DESCRIPTION                QUANTITY   PRICE    EXTENDED   SUBTOTAL
New York T1          Circuit Installation Fee      1        $800       $800
London T1            Circuit Installation Fee      1       $2,498     $2,498
Paris T1             Circuit Installation Fee      1       $4,614     $4,614
Detroit 256k         Circuit Installation Fee      1        $800       $800
Tampa 256k           Circuit Installation Fee      1       $1,200     $1,200
Toronto 256k         Circuit Installation Fee      1       $1,035     $1,035
Montreal 256k        Circuit Installation Fee      1       $1,035     $1,035
Paris 2 256k         Circuit Installation Fee      1       $1,820     $1,820
Mexico City 256k     Circuit Installation Fee      1       $5,000     $5,000
Mexico City 2 256k   Circuit Installation Fee      1       $5,000     $5,000
US Site 1            USE EXISTING ISDN LINE
US Site 2            USE EXISTING ISDN LINE
US Site 3            USE EXISTING ISDN LINE
US Site 4            USE EXISTING ISDN LINE
US Site 5            USE EXISTING ISDN LINE
UK Site 1            USE EXISTING ISDN LINE
UK Site 2            USE EXISTING ISDN LINE
UK Site 3            USE EXISTING ISDN LINE
France Site 1        USE EXISTING ISDN LINE
France Site 2        USE EXISTING ISDN LINE
France Site 3        USE EXISTING ISDN LINE
Mexico Site 1        USE EXISTING ISDN LINE
Mexico Site 2        USE EXISTING ISDN LINE
Canada Site 1        USE EXISTING ISDN LINE
Canada Site 2        USE EXISTING ISDN LINE
SUBTOTAL                                                                        $23,802

New York T1          Circuit Monthly Fee           1        $400      $400
London T1            Circuit Monthly Fee           1       $2,748    $2,748
Paris T1             Circuit Monthly Fee           1       $3,841    $3,841
Detroit 256k         Circuit Monthly Fee           1        $480      $480
Tampa 256k           Circuit Monthly Fee           1        $890      $890
Toronto 256k         Circuit Monthly Fee           1        $552      $552
Montreal 256k        Circuit Monthly Fee           1        $552      $552
Paris 2 256k         Circuit Monthly Fee           1       $1,526    $1,526
Mexico City 256k     Circuit Monthly Fee           1       $5,499    $5,499
Mexico City 2 256k   Circuit Monthly Fee           1       $5,499    $5,499
US Site 1            USE EXISTING ISDN LINE
US Site 2            USE EXISTING ISDN LINE
US Site 3            USE EXISTING ISDN LINE
US Site 4            USE EXISTING ISDN LINE
US Site 5            USE EXISTING ISDN LINE
UK Site 1            USE EXISTING ISDN LINE
UK Site 2            USE EXISTING ISDN LINE
UK Site 3            USE EXISTING ISDN LINE
France Site 1        USE EXISTING ISDN LINE
France Site 2             USE EXISTING ISDN LINE
France Site 3             USE EXISTING ISDN LINE
Mexico Site 1             USE EXISTING ISDN LINE
Mexico Site 2             USE EXISTING ISDN LINE
Canada Site 1             USE EXISTING ISDN LINE
Canada Site 2             USE EXISTING ISDN LINE
SUBTOTAL                                                                                $21,987

InterRamp Remote Access   Registration Fee               500   $9              $4,500
SUBTOTAL                                                                                $4,500

InterRamp Remote Access   Monthly Fee                    500   $19             $9,500
SUBTOTAL                                                                                $9,500

Crypto Cards              Monthly Fee                    500   $12             $6,000
SUBTOTAL                                                                                $6,000


INITIAL GRAND TOTAL         $99,648
MONTHLY GRAND TOTAL                            $71,685
ANNUAL GRAND TOTAL                                                  $959,868

				
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