XACCT Technologies Enables Usage-based Billing for Internet; NSPs Can Now 'Right-Price' IP-BasedApplications
September 22, 1998
SANTA CLARA, Calif.--(BUSINESS WIRE) via NewsEdge Corporation -- XACCT Technologies today announced the first solution with the intelligence to enable Network Service Providers (NSPs) to accurately bill for IP-based applications.
The exploding use of applications such as email, Internet telephony, videoconferencing and virtual private networks (VPNs) is straining the ability of NSPs to price and bill for their services appropriately. The XACCTusage(tm) solution gives NSPs the ability to develop innovative, flexible pricing models for their IP-based services and generate meaningful bills for their customers.
"'Time online' alone is no longer sufficient to bill for data services, " said Anil Uberoi, vice president of marketing at XACCT. "Service providers need to accurately and profitably bill for value-added services such as IP telephony, video and content. XACCTusage allows the service providers to elevate the enabling technologies into differentiated billable services."
Telephone companies have long prospered by using the vast quantity of information they collect from their networks to create and tariff -- a wide variety of services. Although data networks generate equally vast amounts of information about IP sessions, much of this information until now has not been available in a usable format. This situation has limited the NSPs' profitability and ability to create new services.
NSPs typically charge a flat monthly access fee because they have no way to bill for specific services in a meaningful manner. With the XACCT software, NSPs can collect actual IP session data, such as type of application, time of day, Quality of Service (QoS), user identification, and more, and use these to create innovative, flexible pricing models. Now NSPs can quickly develop and offer a broad range of new network services. Users can be provided with bills that itemize the services they are paying for, much like a telephone bill.
"We haven't found anything on the market that can match the breadth and functionality of XACCTusage," said Charles Arsenault, system administrator for Teleglobe International, an intercontinental telecommunications company offering carriers, businesses and consumers voice, data, Internet, broadcast, and information services.
"For the first time, we really have a handle on how our customers are using the network and can bill them appropriately. We know how much bandwidth they're consuming, what applications they're using, how long they're on the network, and much more. We expect our use of XACCT's software to have a positive effect on our bottom line."
"Before we installed XACCTusage, we had no way of determining the level of data network traffic generated by the various IP services we support," said Matt McClung, system administrator for Intermountain Health Care, Utah's largest health and medical services provider.
"Now, we can calculate what resources are being used for FTP, email, Web, Telnet, and then do capacity planning based on the information so we can use our resources more effectively. The ability to import the data from XACCTusage into easy to read management reports has clarified our understanding of network usage; we know who is using what services and how much those services cost. "
A Multi-source, Multi-layer Approach
The source of XACCTusage's flexibility and power lies in its ability to collect all relevant information about every IP session, from multiple sources, and create accurate and complete billing records. XACCTusage extracts data from routers, switches, and firewalls; from RADIUS, Lightweight Directory Access Protocol (LDAP) and Proxy/Web servers; and from all layers of the network, from the physical layer to the application layer.
Because the impact of different applications and services on the network varies, this multi-layered approach enables network operators to accurately assess the costs associated with services.
Once it collects the raw transaction data about an IP session, XACCTusage distills and enhances it to produce an accurate billing record, called an XDR(tm) or XACCT Detail Record, the IP equivalent of the Call Detail Records (CDRs) generated by telephone switches. Because XACCTusage integrates easily with existing Customer Care and Billing systems (CCBs), NSPs can use the XDRs to generate meaningful customer bills.
"We recently surveyed ISPs to find out what they want in an IP billing system," said Greg Howard, director of Service Provider Programs at Infonetics Research (San Jose, Calif.). "They said they wanted a system that is flexible, accurate, compatible with their existing equipment, and fully automated. XACCTusage is an exciting product that hits the ISP market with what it needs, giving ISPs the capability to quickly account and bill for advanced new services."
"Business customers are willing to pay more for value-added services, but only if NSPs can prove their value," said Yankee Group senior analyst, Boyd Peterson. "That means NSPs need to price services based not just on cost, but on meaningful, measurable usage parameters.
"This is exactly what XACCTusage offers. By metering network usage, right down to individual sessions or transactions, the software gives NSPs unprecedented insight into how their network resources are used. This insight empowers them to track and bill for current and new differentiated services, profitably."
Automated Service Provisioning
In essence, XACCT's software mediates between the IP infrastructure and the Customer Care and Billing (CCB) system. Thus, in addition to providing billable data derived from the network infrastructure to the CCB system, XACCTusage also enables the CCB to communicate with the infrastructure.
NSPs can therefore automate service provisioning by using XACCTusage to pass service activation, authentication, and authorization information between the customer management system and the network elements. This enables service providers to maintain a single interface for the Customer Service organization as well as reduce their service activation lead-times.
Creating New Network Services
XACCTusage gives NSPs previously unavailable information about their services by precisely tracking billable parameters such as the QoS requested versus actually delivered, latency, distance-based applications, and more.
With XACCTusage, NSPs can create -- and bill for -- a broad range of services:
-- NSPs can charge different rates for applications -- such as Voice over IP, IP fax, video, and broadcast or "push" technologies -- that make significantly different demands on the network.
-- NSPs can now charge different rates for Web proxy and direct Web traffic.
-- NSPs can bill appropriately for Internet telephony, including H.323 calls and proprietary IP calls.
-- NSPs can now influence customer usage patterns by charging a premium for prime-time usage and lower rates for off-peak hours for better load balancing.
-- For high-bandwidth applications such as videoconferencing or large FTP transfers, XACCTusage can capture latency and end-to-end bandwidth actually delivered.
-- NSPs can cross-market/cross-discount services they want to promote.
Carrier-Class Architecture
XACCTusage has a highly distributed architecture that provides maximum configuration flexibility, complete compatibility with multiple network information sources, smooth integration with the existing network and billing infrastructure, easy upgrades, and network expansion without costly reconfigurations. Customers can install the software and upgrade on-the-fly, without disrupting any network activity or network element.
The system consists of five components: -- Information Source Modules (ISM) are installed either on non-dedicated hosts in close proximity to network devices such as routers and switches or directly on application servers as background processes. In many cases the ISM and the Gatherer can be installed on the same system. Many different ISMs, each designed for a specific type of network device, are available, enabling the user to collect information from virtually any network element or node.
-- Gatherers are multi-threaded smart agents that run on non-dedicated hosts as background processes. They collect and aggregate network session data from multiple ISMs. A single Gatherer running on a Pentium/NT or SPARC/Solaris system can collect and process several million IP session records per day. To prevent this data from overwhelming the network, distributed, real-time, policy-based data filtering and aggregation schemes extract only user-specified billable records for further processing. Gatherers also enhance IP session data with information collected from other sources, such as RADIUS, DHCP, LDAP and Domain Name servers, to generate complete, meaningful billing records.
-- The Central Event Manager (CEM) collects billing records from all the Gatherers in the system, merges and purges duplicate records if necessary, and stores XDRs in the XACCT Central Database or feeds them directly to the billing system. The CEM does database clean-up, maintenance and recovery and also centrally manages system-wide upgrade, licensing, and data security.
-- The Central Database stores billing records generated by the XACCT system and is fully compatible with all popular relational databases.
-- The User Interface Server provides remote and local access to and control of the XACCT system via any Java-enabled Web browser.
System Specifications
XACCTusage is a platform-independent solution. Currently, it is available on Sun SPARC platforms running Solaris 2.51 and later, as well as on Intel Pentium platforms running Microsoft Windows NT 4.0 and later.
The software is available bundled with a choice of database systems, such as Oracle 7.3, Microsoft SQL Server 6.5, and Sybase SQL Anywhere 5.0. The XACCT User Interface is accessible from Win32 platforms (Microsoft Windows 95 and Microsoft Windows NT) through Java-enable Netscape Navigator 3.01/later or through Java-enabled Microsoft Internet Explorer 3.02/later.
Pricing and Availability
XACCTusage is available now. Base system price starts at US $25,000. Total system cost will vary depending on the network configuration.
About XACCT Technologies
XACCT Technologies, Inc., founded in M |