Transitioning to wireless convergence
Prepared by Frost & Sullivan Australia
This paper was prepared for business people that are evaluating wireless LANs for their organisation’s network strategy. It provides commentary on the wireless technology ecosystem as well as analyses WLAN deployment in Australia and typical uses. It discusses the potential benefits and the challenges that Australian businesses will face when making decisions on WLANs. It concludes with key recommendations for business people looking to invest in enterprise wireless solutions, providing a framework for informed decision making and investment.
Background Mobility has fast become a fact of life for most individuals in Australia. The rise of the mobile device as a ubiquitous communications tool has driven many other communications technologies to also follow in the same direction. There is a strong desire to replicate the benefits of mobility across many aspects of business networks, beyond just voice communications – across data, multimedia and other business applications. The key enabler of mobility in the workplace has been the rise of standard based 802.11 technologies that have allowed a market for enterprise mobility to truly develop. The focus of this white paper is on enterprise Wireless LANs, enabled by the Wi-Fi standard. This white paper looks closely at Wi-Fi and assesses current and future trends, with the ultimate goal of determining the path to building an enterprise grade converged network that brings mobility to enterprise data & voice communications. This white paper addresses the following questions: o Why do businesses need wireless communications in the workplace? o Who is using wireless communications effectively and how are they doing it? o What is the technological roadmap for wireless communications, how can I safeguard my investment? o What is the best way to enable my organisation for wireless communications?
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The wireless ecosystem The wireless ecosystem is broad and covers various aspects of networking. How these various technologies relate to business communications is varied, and is best explained by comparing their usage scenarios as depicted in Figure 1 below.
Figure 1: Wireless technologies transmission speed vs. usage scenarios Speed
1 Gbit/s
UWB
100 Mbit/s
Wi-Fi N Wi-Fi G Wi-Max 4G Enhanced 3G Bluetooth DECT 2G PAN LAN MAN/WAN Global WAN 3G
10 Mbit/s
Wi-Fi B
1 Mbit/s 300 Kbit/s
100 Kbit/s 10 Kbit/s
Source: Frost & Sullivan
Usage
Starting from the left, technologies such as Ultrawideband (UWB) and Bluetooth belong to a networking family known as Personal Area Networking (PAN). These are wireless technologies design for very short distances of only up to a few meters and are typically used to connect devices to peripherals, such as printers, headsets, etc. UWB is an emerging technology and is set to be many times faster than Bluetooth. Next are Wi-Fi networks, which are typically characterized by their IEEE 802.11(x) standard code. Wi-Fi networks operate in the unlicensed 2.4 GHz (802.11b & 802.11g) and 5 GHz (802.11a) radio bands, with speeds of 11 Mbps (802.11b) or 54 Mbps (802.11a & 802.11g). There are products that are able to work on two or more of the bands (sometimes called dual or tri band Wi-Fi). Emerging standards including 802.11n are set to increase speeds by more than double over 802.11g. Wi-Fi technologies sit under the Local Area Network category, much like wired enterprise routers, switches and NICs (Network Interface Cards). DECT (Digital Enhanced Cordless Telecommunications), as with Wi-Fi, sits in the Local Area Network (LAN) segment. DECT is an older technology; primarily used for voice communications and is not designed to carry data. It is a secure and reliable way to add wireless voice services to an existing PABX.
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An emerging technology, Worldwide Interoperability for Microwave Access (WiMAX) fits under the Metro Area Networks (MANs) or Wide Area Networks (WANs) category and is gaining much hype as the next major development in wireless, having secured the backing of major players such as Intel, Microsoft, AT&T and BT (British Telecom). On the farthest right we see Global WAN technologies of 2G, 3G, Enhanced 3G and 4G. These conventions are used to describe mobile communications “generations”. The main difference from generation to generation is the ability of the service to scale and consequently the speed of data communications able to be achieved. For 3G services and above, expanded applications such as video-talking are achievable. The focus of this whitepaper is Wi-Fi technology, specifically related to the needs of the enterprise as an extension of its LAN and convergence strategy. Will WiMAX kill Wi-Fi? A common misconception is that WiMAX is set to replace Wi-Fi, especially as Intel are investing heavily in WiMAX, much like they did with Wi-Fi. What is most likely is that Wi-Fi technology will work together hand in hand with WiMAX. WiMAX networks are set to be a distributive technology that will greatly shape the telecommunications industry, able to provide cheap fixed wireless broadband access up to distances of 70kms and at speeds faster than ADSL or cable networks. However, as it stands, businesses requiring fast and private wireless networks will continue to rely on Wi-Fi networks. WiMAX remains more a threat towards global WAN technologies such as 3G and in the future 4G when handsets that operate over WiMAX networks start to appear. It is likely that Wi-Fi will also continue to develop once WiMAX becomes prevalent, providing for faster speeds and potentially lower price devices and network hardware than WiMAX.
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The case for enterprise wireless - Why wireless? Frost & Sullivan analysts in a number of global research projects have been able to identify a number of benefits of WLANs to the enterprise. Although some may seem common sense, many businesses still fail to understand the range of benefits that can be achieved. Below is a summary of these benefits: o Productivity driven through mobility – Opportunity to connect to the network longer and when away from the desk, opportunity to work where it is convenient or appropriate for the worker. Through the deployment of a converged WLAN, workers can now enjoy access to voice and data services, regardless of their location. o Productivity derived from new mobile applications – applications such as email, internet, database applications, billing/inventory, scheduling and calendars all increase in utility when able to be accessed wirelessly in the corporate environment. o Accessibility and the benefits of immediate and accurate information, quicker and better decision making. o Cost savings on infrastructure/cabling: WLANs can cost less to implement than wired LANs, especially in situations where labour and materials costs are high or for environments that are difficult to wire (such as mining sites, education campuses and manufacturing shop floors). o Portability & ease of deployment: WLANs can be used to move physical locations much easier than wired LANs, reducing total cost of ownership for organisations that are often moving premises or have uncertainty about premise location or layout. Companies that are growing quickly can ensure new employees have immediate access to the network through WLANs, even without a permanent seat. o Scalability: Wireless LAN systems can grow easily by adding more access points, bridges and routers. Wireless can be a good solution if there is a need to connect several buildings without installing a wired connection. Wireless LAN bridges can extend LANs that are potentially many kilometers apart. Wireless bridges can span multiple building networks without incurring the monthly costs of going through a third party interconnection service provider. In addition, WLANs bring about a number of benefits to an organisation that are often recognised after deployment has occurred, including better customer care and responsiveness, lower maintenance costs and better collaboration amongst employees. Clearly the case for WLANs is strong, but businesses need to financially justify the investment. The best way to approach this is through the use of situation analysis and Return on Investment (ROI) calculations. The Wi-Fi alliance (www.wi-fi.org) has produced a Wi-Fi ROI calculator that can be found on their website. Calculators such as this provide results that are presented in terms of dollar savings, or payback in months, relative to the upfront costs for installation and hardware and 4
the recurring costs for IT support. The use of such calculators can assist in evaluating the value in WLANs, enhancing the decision making process. When looking at the benefits, the variables that are typically compelling for a business are those that increase the potential uses of a WLAN. In addition, the more users, the more return can be demonstrated. One use that is increasingly becoming a driver for WLAN deployment is the trend in data and voice network convergence, driven by advancements in IP telephony. This bringing together of WLANs and IP telephony is often called Voice over Wireless LANs (VoWLANs). IP Telephony and location applications drive value over WLANs VoWLANs build upon the advantages of having a converged wired IP telephony network and can lead to savings through lower capital investments and productivity applications. Having IP telephony over a wireless network can heighten this effect, as even less resources are needed to set up a Wireless voice network and the applications are potentially broader. A key supporting variable will be the steadily growing range of mobile phones and converged devices that are combining enterprise grade Wi-Fi transceivers in them. VoWLANs on these ‘dual mode’ handsets brings together a mobile that can switch and synchronize to the internal Wi-Fi network upon coming into range. The benefits include lower call charges, lower rollout costs, lower support costs, better internal efficiencies and potentially sophisticated future applications that can intelligently route communications or enhance processes. Already in use today are clever productivity applications developed for IP Telephony systems. These apps can make use of positioning systems built into VoWLAN handsets and/or Global Positioning System (GPS) enabled handheld PCs. The benefits can be extended to location tracking of assets and users across a campus, shop or office floor. A real life example of such a system is seen at Epworth Eastern hospital, in the northern suburbs of Melbourne. Epworth Eastern is using NEC’s UNIVERGE WLAN solution with WLAN client devices such as PDA’s, laptops, tablet computers, and WLAN telephony handsets to support their patient care initiatives, including the introduction of an electronic prescribing application. The solution was designed to meet the stringent requirements of healthcare for secure information and a reliable and continuous wireless network. Clinical staff have access to patient information at the patient bedside, giving them access to information and allowing them to take action in a faster and more meaningful manner.
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What industry sectors are deploying wireless LANs? The demand for Wireless LANs has been mainly attributed to the education, manufacturing, retail, and professional services sectors. This is set to rapidly expand over the coming years with many other verticals such as healthcare, government, wholesale trade, hospitality, freight & logistics, mining and agriculture all set to benefit from the decreasing costs and standards based advancements occurring. Whether a business is an existing user of proprietary wireless technology or a Greenfield wireless environment, the benefits associated with greater affordability and widespread availability of Wi-Fi, in devices such as laptops, is driving mainstream uptake across all business sizes and verticals. Figure 2 below shows revenues for WLAN equipment by end user vertical industries in 2004.
Figure 2: Australian WLAN equipment revenues by end user, 2004
Education 32%
Manufacturing 21%
Other 17% Retail 14%
Source: Frost & Sullivan, 2004
Professional Services) 16%
The education sector was one of the fastest growing vertical market segments for WLAN products. In 2004, it accounted for 32 percent of the total enterprise WLAN revenues in Australia. Education deployments are often a good case study for large scale wireless deployments. Universities that have deployed campus-wide wireless networks are typically interesting with regard to their scale and required management, as well as their ability to demonstrate significant aggregate benefits, through a large user base.
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The second biggest users of WLANs in 2004 were manufacturing businesses. With the increased demand for mobility across warehouses, factory units and assembly lines, manufacturing contributed 21 percent of the total market revenues in 2004. Manufacturing businesses are often gaining critical operation efficiency through the use of wireless networks, supplementing the supply chain and increasingly for both voice and data.
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What WLAN technologies are businesses adopting and can I future proof my investment? In 2004, 802.11b equipment had the highest demand, accounting for 48.5 percent of the total WLAN equipment sold in Australia. However, 802.11g and dual/tri mode standards are fast becoming the technologies of choice for most businesses. Figure 3 below shows the sale of Wireless LAN equipment by technology standard. Clearly the installed base is going to be strong with 802.11b. However, the costs of 802.11g access points and devices are no longer different to 802.11b and backward compatibility will ensure a quick death for 802.11b. Or will it? Although, 802.11b is quickly being superseded with 802.11g, many devices will only continue to support the older standard. Devices such as PDAs and mobile phones for example only still support 802.11b, and many do not have more than rudimentary security. This is an important consideration when evaluating what devices will be required to be used on the corporate WLAN.
Figure 3: Australian WLAN equipment revenues by technology, 2004
802.11a 11% Dual/Tri mode 23%
802.11g 18% 802.11b 48%
Source: Frost & Sullivan, 2004
Frost & Sullivan believes that by 2007, dual and tri-mode devices will dominate the market. These are likely to be based on further advances in the 802.11 standards and will see significant increases in throughput. The rate of advancement is rapid; however the agreement on new standards has slowed down, making it an environment that is likely to continue to have a large base of users on older standards, interoperating with newer backwardly compatible devices for some time yet.
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What is the right technology choice in 2005/2006? The popularity and installed base of 802.11b devices reached saturation in 2004. The challenge has been that the security standards and price points of faster and improved devices such as 802.11g have taken over. To some extent, backward compatibility has ensured 802.11b’s survival as the first mainstream standard utilizing the 2.4 GHz frequency spectrum, but standalone 802.11b equipment is no longer being marketed by major vendors. This makes 802.11g the emerging defacto standard, but the question is for how much longer? There are challenges with both 802.11b and g, especially the potential lack of bandwidth and interference in the 2.4 GHz spectrum, which is shared with a number of other devices including microwaves and cordless phones. 802.11a has long been pushed as an alternative choice, as it works on the 5 GHz frequency spectrum and runs as fast as 802.11g. However, 802.11a comes with its own unique challenges, including: o The power consumption of both devices and access points are higher than for 802.11b/g (2.4 GHz) devices. o 802.11a access points also have typically less range than 802.11b/g access points, requiring the expense of additional A/Ps in a typical workplace or campus. o A premium is typically paid for 802.11a equipment, which will carry through to multi-mode devices supporting the 5 GHz spectrum. Having said this, some scenarios will clearly derive value from being on a different frequency spectrum at any cost. The question of future proofing a WLAN investment must be followed by a need to define how long away the future is for your business. Obsolescence is important to delay, but to a large extent is unavoidable. The investment in WLAN technology must be seen as an ongoing process that has a payoff period or amortization period like all IT investments. As with the evolution of networking technology, the investment made must be considered to be the right investment for the amortization period. The payback period can be arbitrarily set, based on business needs and suitable timeframes to realise a return on investment. The main point to accept is that any investment in wireless technology will require reinvestment with the evolution of the technology at some point in the future. Frost & Sullivan does not foresee any one technology rapidly becoming a panacea in the wireless world that should hold a business back from investing in the current marketplace solutions. The Wi-Fi movement is now clearly directed towards standards, interoperability and ubiquity giving businesses assurance in their present and future investments. The ultimate decision should be squarely a part of the Wireless LAN strategy that every company needs to develop separately prior to making such an investment, to ensure a clear payback period over the life of the investment, assessing the costs, the risks and the rewards.
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What are the main considerations for an enterprise grade wireless solution? An enterprise wireless LAN solution requires the same if not more consideration than a wired corporate LAN. Many business people, through their experience with WLANs in the home, overlook the unique networking challenges that enterprise WLANs present. Consumer WLAN environments are typically characterised by the single access point data network with rudimentary security, scalability and no contingency for faults or downtime. The business environment differs immensely. Most business wireless networks are characterised by the following requirements/needs: Have to work within an existing LAN environment Network used for voice, data and multimedia Typically require multiple Access Points Require fault tolerance/redundancy Require enterprise grade security and compatibility with other security systems Need to work seamlessly and often in mission critical environments Require featured software management tools for controlling RF, security and other network variables o Required to integrate with existing systems (e.g. integrated with supply chain, ERP, CRM or other information systems) o Require quality of service o o o o o o o Figure 4 below indicates some of the differences between consumer and enterprise Wi-Fi.
Figure 4: Consumer vs. Enterprise Wi-Fi
Consumer Wi-Fi
Enterprise Wi-Fi
Multi-port Ethernet switch Broadband Router NAT/DHCP server Firewall Print server MAC 'clone' capability Wall outlet power Pre-shared key encryption 802.11 a/b/g Transceiver
RF monitoring (Rouge AP & Client detection) Real time power level adjustments (failover coverage) Real-time channel selection (interference avoidance) Seamless mobility across APs RADIUS/802.1X Session based encryption Power over Ethernet
Source: Frost & Sullivan, Stratecast Partners
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For a company to effectively handle all these aspects relating to wireless deployment, it is important to evaluate the offerings on the market from both a technical but also business requirement standpoint. Furthermore, businesses need to determine what it takes internally or through partners to bring about an outcome that can best overcome the challenges in deploying an enterprise grade solution. What skills are already in place and what needs to be brought in? Wireless Security Although network security in general, and wireless LAN security in particular, are critical concerns in enterprise networking, there is not yet a consensus on best practices for protecting wireless LANs. As standards are still developing, the most effective solution is likely to be a combination of products from different parties, intelligent configuration, and ongoing monitoring. Enterprises should consider involving consultants and managed service providers in this area to supplement their internal skills. Security is addressed mostly by the emergence of the 802.11i standard with advanced encryption methods for authentication. However, being able to set global policies with centralised management systems, as well as being able to set up specific policies and parameters by access point, also increases the overall level of security. Centralised Management Maintenance and configuration of branch and remote sites is reduced significantly by the ability to control the access points from a central location. Newer WLAN systems have software management capabilities to manage both wired and wireless LANs and integrate with other enterprise network components. Through centralised management, WLAN managers can provide: o Converged management of enterprise wired and wireless network components. o Centralised management, provisioning of services and maintenance and upgrade of network infrastructure components. o Distributed QoS and security. o Centralised and distributed management of access points, end user devices and geographic locations. o Seamless and timely upgrades for new standards, features and functions. o Interoperability and the ability to integrate with wired LAN equipment. o Seamless hand off experience for users between access points.
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Developing a Wireless LAN strategy WLANs can improve productivity and bring about cost savings for a business, but with the absence of a well considered and planned strategy there is a risk that expectation may not be met. In addition to the technical issues a series of business issues need to be dealt with, some of these include: o What impact does the new technology have on existing products, policies, and procedures? o Is there a significant learning curve to implement the new solution? o How difficult is the new network to manage? o How long will it last? Even if there is doubt of the cost/benefit ratio for WLANs, in the absence of a central strategy, WLANs are likely to be deployed in a “rogue” way by individuals or workgroups in your business. Unmanaged deployments can completely compromise network security. With WLANs, it is often the case that the IT organisation must ‘get in front of the parade and lead it.’ Consider deploying a wireless LAN with comprehensive coverage Ubiquitous (all of workplace) coverage is fast becoming the conventional wisdom for new WLAN deployments despite the extra expense. The main reasons behind this come from a need to: o be ready for changes in office usage, such as a change in the role of different meeting rooms. o be able to continually and automatically monitor for unauthorised access points and clients. o be much further along in preparation for voice over Wi-Fi handsets, which are already starting to appear. o accept the difficulty in limiting coverage to defined areas. Knowledge based businesses, such as those in professional services, should err towards making Wi-Fi ubiquitous as it can help with the justification of new applications and devices such as Voice over WLAN and dual mode handsets.
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Frost & Sullivan Recommendations Business communications networks are under constant change and the challenges of network convergence go beyond just the wired world. The drive for mobility and the productivity benefits that flow are sought by most companies, however challenges remain in understanding and effectively taking the wireless plunge. Below is an outline of ten key recommendations Frost & Sullivan gives to companies evaluating Wireless LANs for their businesses. 1. Assign overall responsibility to a senior executive or C-level decision maker 2. Define the goals. What are you planning to achieve from Wireless networks? 3. Evaluate and scrutinize the Return On Investment (ROI). a. Reduced Infrastructure Cost b. Total Cost of Ownership and amortization period c. Mobility and associated Productivity Benefits 4. Consider your technology options: Will it last long enough for payback? 5. Assess the readiness of your existing network to support WLANs. 6. Ensure WLAN security with multiple protection mechanisms, with encryption and access control elements both included. 7. Centrally manage your WLAN with software that can address failover, rogue A/Ps and RF/Interference issues. 8. Test and ensure scalability and readiness for a greater number of users than initially intended for. 9. Derive greater value from WLAN data networks by exploring voice and other applications. The more applications, the better the case for utility. 10. Maintain and manage – Consider outsourcing the monitoring and management of the system to a trusted and expert organization. In summary, WLAN technology is fast moving and an important strategic move for many businesses. Frost & Sullivan recommends where possible that businesses supplement their skills and knowledge with trusted business partners that can provide advice and end-to-end services and solutions.
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