ArcCyber Helps ransform Cyberspace in Asia/Pacific with Internet Services to Enterprises
| Executive Summary
ArcCyber Company Limited is a joint venture between NTT
Communications,Shin Corporation,and Saha Phatana Inter-Holding
Public Company Limited.With more than $12 million in initial
investments,ArcCyber delivers Internet datacenter (IDC),Internet
service provider (ISP),and application service provider (ASP)
services to its customers.
In 1999,the IDC and ISP market in Asia/Pacific was highly fragmented and competitive.
Thus,ArcCyber was facing a number of challenges,including demand for higher-quality
services,intense competition,price pressures,and growing international demand.
Given these challenges,ArcCyber decided to differentiate itself from its competition by
targeting the enterprise market.Because enterprise customers would pay higher prices and
demanded higher-value services than individual users,the enterprise market promised to
be more profitable and hence was the correct strategic direction for ArcCyber.
However,all of ArcCyber's equipment was out of date,impeding its ability to provide
superior service to enterprise customers.
In early 2000,ArcCyber acquired Dataline Thai,a very small ISP operating under the Communication
Authority of Thailand license.Following the acquisition,ArcCyber sought to rebuild and reposition
itself as an ISP for large corporations.By shifting its focus from the individual user to the
enterprise,ArcCyber sought to become the number one service provider in Thailand.
ArcCyber immediately looked to Sun Microsystems,Inc.as its
technology vendor,seeing it as the leader in the Asia/Pacific
Internet space.ArcCyber also selected Sun Professional Services
to help architect and build the application framework and
platform infrastructure for its carrier-grade network, with
the ultimate goal of becoming SunTone[SM] certified. Beginning
in 2000,consultants from Sun Professional Services worked
with ArcCyber to design and implement a services-driven network
architecture.The platform infrastructure is powered by 15
Sun Enterprise™ servers running the Solaris™ Operating Environment
connected to Sun StorEdge™ disk arrays. The services-driven
network architecture consists of five integrated points of
delivery (PODs):(1)directory and authentication services based
on Sun™ ONE Directory Server and Radius Authentication Server;(2)mail
and messaging services based on WebEdge;(3)NetNews services
that provide subscription news service accessed through D-News;(4)Web
access and hosting based on Apache Web Server; and (5)Web
caching and user registration database services based on Oracle8i
database.
ArcCyber also engaged architects from the Sun Professional
Services Java Center[SM] to help design and implement two
Web services based on Java™2 Platform,Enterprise Edition
(J2EE™) technology:a customer relationship management (CRM)
Web service that allows the retrieval and storage of billing
and service requests (used by ArcCyber staff) and a network
monitoring CRM Web service that notifies customers of network
failure and identifies the location of the problem.
Working with the IT team from ArcCyber, Sun Professional
Services helped meet an aggressive eight-month time to market.ArcCyber
is now the largest ISP in Thailand, with plans to become the
number one ISP and ASP in the Asia/Pacific market. The company
is currently meeting service-level agreements (SLAs) of 99.5%
or greater. And during its first 5 months of offering enterprise
Internet services,the company increased revenue by $300,000,
with predictions that annual revenue will grow by more than
600% to $2 million by the end of 2002. The company simultaneously
expects to grow its enterprise customer base to more than
50,000 equating to over 1 million end users by yearend.
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Situation Analysis
Based in Thailand,ArcCyber is a service provider of comprehensive solutions for businesses looking to
utilize the latest technology without the accompanying costs and risks.The company's networked
ebusiness infrastructure saves businesses up-front investment costs and allows companies to
concentrate on their core businesses rather than spending time and costs developing and maintaining
an Internet network infrastructure.
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Internet Usage in Asia/Pacific
2000 saw a tremendous increase in the total number of Internet users in
Asia/Pacific. The vagaries of the dot-com environment did not mask the zeal with which users
came online. In many countries of the region,computers are increasingly being associated
with the Internet. Accordingly, IDC is logging significant growth in adoption rates for a
range of Internet access devices. PCs are still dominant,but the well-spring of demand has
led to an increased interest in other Internet-enabled devices.
Internet usage in Asia/Pacific grew to a base of 64 million in 2000,and IDC predicts that this
number will burgeon to more than 240 million in 2005,representing a growth rate of more than 30%.
Additionally, IDC expects enterprise Internet revenue to grow by more than 109% from 2000 to 2005.
-Abstracted from IDC report, The Internet Economy in Asia/Pacific
(Ex Japan) 2000�2005 (AP40004H, April 2001)
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The company is a joint venture between NTT Communications, Shin
Corporation, and Saha Phatana Inter-Holding Public Company Limited.
ArcCyber delivers three types of services to its customers: Internet
datacenter (IDC), Internet service provider (ISP),and application
service provider (ASP). ArcCyber's IDC provides a full range of
networking services, including collocation, application hosting,
and facility management. ArcCyber's IDC network is designed to deliver
maximum reliability and security.
EBusiness Challenges And Objectives
In 1999,the IDC and ISP market in Asia/Pacific was highly fragmented and competitive.ArcCyber
thus faced a number of challenges:
- Demand for higher-quality services. Customers were looking
for the fastest service at the lowest price. ArcCyber's infrastructure
was outdated, and the company did not provide high-speed access.
- Highly competitive market. In 1999,the Communication
Authority of Thailand provided licenses to international companies
to deliver Internet services in Thailand. At the time, there were
already 18 ISPs in the country.
- Fragmented,price-sensitive customers. Most Internet
users in Thailand were individuals using the Web for entertainment.They
were not brand loyal and demanded service at the lowest possible
price. Thus,there was little opportunity for ISPs to increase
profits by offering value-added services to individual customers
without targeting the enterprise.
- Increased international demand. Companies were demanding
high-speed communications from Bangkok to Japan and beyond. Although
the demand for international communications was increasing, ArcCyber's
network infra-structure was not robust enough to service multinational
corporations.
In response to these challenges, ArcCyber decided to differentiate
itself from its competition by targeting the enterprise market.
Enterprise customers would pay higher prices with the demand for
higher-value services; the enterprise market promised to be more
profitable than that of the individual consumer. However, for ArcCyber
to pursue this new market opportunity, it needed to upgrade its
systems and infrastructure, as the quality-of-service requirements
for this new customer base were much higher.
Action Plan And Decision Process In early 2000,ArcCyber acquired Dataline Thai,
a small ISP operating under the Communication Authority of Thailand license.
Following the acquisition, ArcCyber embarked on its strategy to develop a carrier-grade network
infra-structure to support large,multinational enterprises.In the initial stage,
it planned to provide basic services,including IP,ISP,Web access,colocation,
and hosting services,with future plans to offer managed services and deploy ASP services.
With the intent of offering service-level agreements (SLAs)in excess of 99.5%, ArcCyber
required a robust,high-performance network infrastructure. The company pinpointed three specific areas of focus:
- Equipment and products
- Personnel
- Operational processes
ArcCyber immediately looked to Sun, which it viewed as the leader in the Internet space in the Asia/Pacific
region. In early 2000,Sun Professional Services provided ArcCyber with a proposal detailing Sun's ability to
deliver best-of-breed solutions in the service provider space. The proposal included an overview of Sun's
strengths in architecture design,datacenter operations, and personnel skill assessments and training.
According to ArcCyber,the proposal was key in the solidification
of its decision to work with Sun. Mr.Anukrom Punyashthiti, network
manager for ArcCyber, explains, "We elected to build our infrastructure
on the Sun server and storage platform simply because it is the
most robust in the market. But an important factor in selecting
Sun was the company's skilled, dedicated consultants, along with
a proven architectural and development methodology � the SunTone
Architecture Methodology. In the end, we found that Sun offered
a best-of-breed solution that was unmatched in the marketplace.
"Because many of its potential customers wanted assurances that
its infrastructure would meet SLAs, ArcCyber found the SunTone certification
of key value � a stamp of approval that would attract enterprises
as customers.
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eBusiness Challenge
- Translate business strategy into technology
solution, including billing, ASP,ISP, and various other components
- Achieve rapid time to market by quickly designing,implementing,
and deploying Inter-net solution for enterprises, thus helping
to gain competitive advantage. Develop architecture design,
operational practices,and personnel skills to sustain high
availability, reliability, security, and scalability
- Develop architecture design, operational practices, and personnel skills to sustain
high availability, reliability, security, and scalability
"In the past,Internet users in Thailand were comprised
primarily of individuals focused on entertainment purposes.
Achieving a profit margin or this customer base was difficult
due to competitive pressures. Consequently,in order for ArcCyber
to be the number 1 ISP in Thailand, we ascertained service
delivery for the large enterprise was a more profitable business
model. We feel that this is a competitive differentiator and
strategic decision."
-Mr.Nuttachai Veerakul, Senior IT Manager,ArcCyber
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Solution Profile And Implementation Strategy
In early 2000, ArcCyber initiated work with Sun Professional Services
on the architecture design and implementation build for its new
carrier-grade ISP infra-structure.The architecture design reflects
quality-of-service requirements such as security, scalability, reliability,
and high availability. It also reflects a services-driven network
encompassing various services for essaging, news, Web and Web hosting,caching,and
user registration.
Architecture Design
ArcCyber's business requirements necessitated the development of
a robust, high-performance platform infrastructure, including an
application framework that would deliver sophisticated functionality.
Among these requirements was inte-gration with proprietary applications
and legacy back-end systems.Over a peri-od of two months in the
spring of 2000,Sun Professional Services � working with the IT project
team from ArcCyber � conducted an architecture assess-ment that
identified various quality-of-service requirements based on business
needs,which included:
- An open,extensible platform infrastructure that would allow
the use of software from multiple vendors and speed application
development by facilitating the reuse of architecture design and
business logic
- An underlying server and storage infrastructure for powering reliable, scalable, highly
available services, including the ability to meet quality-of- service requirements for more
than 50,000 enterprise customers
- Identification of critical elements of architecture design and
datacenter oper-ations to help ensure a highly secure environment,including
firewall detection,authentication,and security processes
- Service level agreements for sustaining 99.5%availability or greater
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Selection of Sun
"ArcCyber did not seriously evaluate
other technology vendors. Though we considered other technology
vendors such as IBM and HP,we chose Sun on the basis that
it had a superior track record in designing and implementing
comparable solutions. We were particularly impressed with
Sun Professional Services and the willingness of its consultants
to serve as trusted advisors."
�Mr.Nuttachai Veerakul, Senior IT Manager,ArcCyber
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Implementation And Process
After solidifying the architecture, ArcCyber and Sun embarked on
building the network infrastructure in June 2000.Although the infrastructure
build was completed and services were ready for launch after seven
months, the actual launch of services to enterprise customers was
delayed by three months until April 2001.ArcCyber was required by
its parent company, NTT, to relocate and consolidate its datacenter
to NTT headquarters in Bangkok to help maintain consistent operations
and control. Despite the change in plan,Sun was able to quickly
respond to ArcCyber's evolving requirements. According to Mr .Pakorn
Nandhasri,system engineer manager at ArcCyber,"Sun Professional
Services played a key role in configuring the layout of the new
datacenter and integrating ArcCyber systems with the existing NTT
datacenter."
Once the datacenter relocation was complete, ArcCyber began rolling
out the various Internet services.In April 2001,the company launched
messaging, news,Web and Web hosting,caching,and user registration
services and,in July 2001, launched its ISP and ASP services
(see Figure 1).
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SunTone[SM] Architecture Methodology
"We view Sun as much more than an equipment provider; rather, we see Sun as a solution
provider, with the ability to manage sophisticated projects and people in a highly
proficient manner.At the heart of their ability to do so is the SunTone[SM] Architecture
Methodology, a road map for architecture design as well as development best practices.
We thought this was a very compelling strength when selecting Sun, and from the implementation,
our team discovered that Sun's consultants were extremely knowledgeable and professional."
�Mr.Nuttachai Veerakul, Senior IT Manager,ArcCyber
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Methodology Architecture And Implementation
Sun consultants used the SunTone Architecture Methodology to design
a services-driven network as well as instill development best practices.
The services-driven network provides ArcCyber with an architecture
framework for delivering multiple, disparate services in an environment
that is designed for optimal performance and security.It also gives
the company the ability to easily and quickly integrate new services
as well as plug and play any number of products � Sun as well as
third party.Sun consultants drew on the SunTone Architecture Methodology
for architecture design and development processes. The sequential,
iterative development process helped ArcCyber to speed time to market
while concurrently reducing risks and heightening overall quality.
Encompassing inception,elaboration, construction, and transition
phases ,the development process and best practices include the following
characteristics:
- Use case focused. Using functional case scenarios,Sun
and ArcCyber helped ensure end-to-end functionality of the services
to be delivered.
- Architecture centric. Architecture is defined and tested
before development begins. This reduces the risk of technical
issues that might arise later and require reengineering.
- Iterative and incremental. Using a phased approach to development means that testing occurs
often and regularly, thus helping to ensure that issues are detected early and the final release
provides all the functionality originally intended.
- Integration of systemic qualities. Focus on quality-of-service
require-ments,such as availability, reliability, scalability,
and security, helps to ensure that the infrastructure and application
framework meet identified business drivers.
- Patterns based. The process identifies architecture design
patterns to reduce development cycles via the reuse of segments
of business logic and coding, thereby helping to speed time to
market.
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Sun Professional Service
"The Sun Professional Services team had
the proficiency and processes in place to help us meet our
goal of attaining a 99.5% SLA."
�Mr.Pakorn Nandhasri, System Engineer Manager, ArcCyber
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Once Sun completed the architecture design,Sun consultants relied
on processes and best practices to accelerate the implementation
process in preparation for the datacenter relocation. At that time,
ArcCyber was required to integrate its new network infrastructure
with other systems in a new building at NTT head-quarters. According
to Mr.Nuttachai Veerakul, senior IT manager at ArcCyber, "Sun Professional
Services was extremely helpful in integrating the ArcCyber and NTT
datacenters. They were able to easily work with other vendors' systems
and applications, thus helping us to complete the datacenter relocation
in a time frame shorter than initially projected."

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Sun � ONE Directory Server
"The aggressive requirements of enterprise customers dictated that we offer sophisticated
directory services, providing access to services based on user preferences.
Security was obviously a key concern as well. We ultimately determined that Sun �ONE
Directory Server, which we viewed as at the very top of its class, met or exceeded
all of our requirements, includ-ing the management of massive volumes of transactions
and information hosted on thousands of domains."
�Mr.Nuttachai Veerakul, Senior IT Manager,ArcCyber
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Solution Architecture And Infrastructure
ArcCyber's services-driven network is powered by 15 Sun Enterprise
servers running the Solaris 8 and 7 Operating Environments.The various
services being delivered include (1) directory and authentication;
(2) mail/messaging; (3) news; (4) Web access and hosting; and (5)
Web caching and a user registration database. Customers can access
each of the services through one of five points of delivery (PODs).
The open,extensible architecture design allows the near seamless
plug-and-play of new services and products,thereby giving ArcCyber
the flexibility to augment its service offerings and tap additional
revenue channels (see Figure 2) without overhauling its application
framework or platform infrastructure.
Customers access the services via Internet connections.A firewall
layer "guards" the various services and data. For security, ArcCyber
implemented SunScreen � Secure Net 3.1 and Check Point Firewall
1.0.SunScreen is an enterprise firewall system designed for access
control,authentication, and network data encryption. It consists
of a rules-based, dynamic packet-filtering engine for network-access
control as well as an encryption and authentication engine that
enables companies to create secure virtual private network (VPN)
gateways by integrating public key encryption technology.
- Directory POD. The directory POD includes Sun ONE Directory
Server and Radius Authentication Server.Radius Authentication
Server provides ArcCyber with greater flexibility in managing
and servicing its enterprise customers by enabling users to access
all of the services through a single point of entry with a single
log-on.Sun ONE Directory Server allows ArcCyber to manage large
volumes of transactions and information hosted on thousands of
domains and further facilitates the personalization and customization
of mail and NetNews services,including membership log-in and customization
of content via streaming media, news,ads,and more. The Sun ONE
Directory Server and Radius Authentication Server each run on
two Sun Enterprise 220R servers running the Solaris 8 Operating
Environment
- Mail/messaging POD. ArcCyber's mail service is based on the WebEdge messaging platform
powered by a Sun Enterprise 3500 server and two Sun Enterprise 220R servers,all running the Solaris 7
Operating Environment. The Sun Enterprise 3500 server is designed for high vertical scalability,
allowing ArcCyber to add new users quickly and easily. Secure customer data is stored in a
network storage system residing on a Sun StorEdge D1000 disk array for backup and restore.
- NetNews POD. NetNews is a subscription news service accessed through D-News. The NetNews POD
is powered by one Sun Enterprise 220R server running the Solaris 8 Operating Environment.
- Web access and hosting POD. Web hosting services are powered by Apache Web Server residing on two Sun Enterprise
220R servers running the Solaris 8 Operating Environment.Two Sun StorEdge disk arrays provide separate storage
for Web hosting services.
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ArcCyber Solution at a Glance
User Profile
- Multinational enterprises access high-speed Internet services from standard Web browsers
Architecture, Methodology, and Technologies
- Services consist of directory POD, mail POD, news POD, Web access and hosting POD,
and Web caching POD.
- SunTone[SM] Architecture Methodology is used as the
basis for architecture design, implementation plan, and
actual development practices.
- Platform infrastructure con-sists of 15 Sun Enterprise[TM] servers running the Solaris[TM]
Operating Environment connected to 6 Sun StorEdge[TM] disk arrays.
- Application services are powered by a multivendor software platform.
Sustaining Services
- Services consist of SunSpectrum Gold[SM] support agreement
and skills assessments and training from Sun Educational
Services' Certified Partner OCT
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- Web caching and a user registration database POD. The
Web caching and user registration database provides collocation
of customers' customized content. An Oracle8i database houses
the enterprise and user data and content for each customer. The
Web caching service resides on one Sun Enterprise 220R server
running the Solaris 8 Operating Environment. Secure customer data
is stored in a network attached storage (NAS) environment consisting
of a Sun StorEdge disk array.
To better manage its application environment and facilitate integration,
ArcCyber is using Sun � Management Center 3.0 for the Solaris Operating
Environment � Sun's system management application used to monitor
and ensure availability and reliability of applications and systems.
"Sun Management Center allows us to proactively manage and monitor
all of our network systems, including the Sun Enterprise servers
and Sun StorEdge disk arrays,"notes Veerakul. "It provides a single
access point for managing customer-facing Internet services, thereby
contributing to our ability to manage aggressive service-level agreements
in an efficient manner."
Result And Business Benefits
ArcCyber,with the help of Sun,is poised to grab a significant share
of the enterprise Internet services market in the Asia/Pacific region.It
is now the largest ISP in Thailand,with the goal of serving 50,000
companies equating to over 1 million end users by yearend. Some
of the results and business benefits that ArcCyber is achieving
include (see Figures 3 and 4):
- Customer satisfaction and loyalty. The open, services-driven network architecture allows
ArcCyber to add and integrate new services as needed.
- Reliability and availability. Sun Professional Services
helped ArcCyber instill operational best practices in the management
of its datacenter to sustain high availability, scalability, security,
and reliability, including meeting or exceeding SLAs of 99.5%
or more.
- New revenue channel. During its first five months of offering
enterprise Internet services, ArcCyber was able to realize $300,000
in new incremental revenue,with the projection that this number
will grow by more than 600% to over $2 million by yearend.
- Scalability. The new application framework and platform
infrastructure give ArcCyber a solid foundation on which to rapidly
grow its business, with the projection of more than 50,000 enterprise
customers by yearend, consisting of 1 million end users.
- Enhanced profitability. By providing higher-margin,high-value services to enterprises,
ArcCyber has been able to differentiate itself from competitors while earning greater profit.
- Time to market. With the help of Sun Professional Services,ArcCyber completed an architectural
design in two months and deployed and implemented the network infrastructure in four months.
Despite the delay caused by the datacenter relocation to NTT headquarters,the complete project
was delivered in less than six months,improving time to market by 25%. Sun Educatonal Services at ArcCyber
- Time to market. With the help of Sun Professional Services,ArcCyber
completed an architectural design in two months and deployed and
implemented the network infrastructure in four months. Despite
the delay caused by the datacenter relocation to NTT headquarters,the
complete project was delivered in less than six months, improving
time to market by 25%.
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Sun Educational Services at ArcCyber
Throughout implementation and after the launch
of the project, ArcCyber engaged OCT, a certified partner
of Sun Educational Services, to provide training on the Solaris
� environment as well as to work with its IT staff on managing
the new server and storage infrastructure. Training specialist
from OCT, working in conjunction with Sun Professional Services,
delivered the following:
- Skill analysis services
- Customized education plan
- Curriculum designed for IT personnel
- High-end computing curriculum
- Education resource management service
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Future Involvment
With the infrastructure in place for delivering Internet services
to large enterprises, ArcCyber intends to launch an ASP service
through which customers may access packaged applications,including
collaborative applications and enterprise resource planning (ERP)
packages. Although the business plan is not yet finalized, ArcCyber
hopes to launch the service in 2002 and will likely use Sun servers
and storage and engage the assistance of Sun Professional Services
in its design and implementation.
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Sun support Services
With the launch of its Internet services,ArcCyber engaged
Sun Support Services to help sustain high availability and reliability via a SunSpectrum Gold[SM]
support agreement. "We have a SunSpectrum Gold support agreement that provides a means
for delivering high availability and reliability. The support agreement delivers
sustaining services for business-critical applications for both Sun hardware as well
as Sun software.
"With the help of engineers from Sun Support Services, we're able to proactively
support and resolve system problems and provide assistance in better managing our
business-critical systems."
Mr.Nuttachai Veerakul, Senior IT Manager,ArcCyber
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ArcCyber also plans to apply for SunTone certification in 2002
to provide customers with confidence in their new ISP services.
SunTone certification helps ensure customers of the ability of the
service provider to deliver high availability, scalability,and reliability
as well as drive brand value with customers.Part of this process
will entail the delivery of a SunReady[SM] Availability Assessment
for SunTone Certification, with Sun Professional Services and support
from Sun Support Services and Sun Educational Services.
| Case Epilogue
ArcCyber is a prime example of Sun offering a customer an
end-to-end solution, including architecture design, infrastructure
build,datacenter relocation,as well as assistance in designing
and implementing Web services based on Java technology. With
its ISP and hosting services designed and deployed by Sun
Professional Services, ArcCyber is addressing such issues
as backup, recovery, and security by employing the latest
information technology and network infrastructure to ensure
responsiveness and robust service levels for its customers.
ArcCyber is thus in a solid position to carve out a significant
share in the market of delivering Internet services to the
enterprise.Growth opportunities in this market segment provide
ArcCyber with varied revenue potential, which the company
is well on its way to achieving.
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©Copyright 2002,Sun Microsystems,Inc.Sun Microsystems,Sun,the Sun logo,
SunSpectrum Gold,Sun Enterprise, Sun StorEdge,SunTone,Solaris,SunReady,SunScreen,Java Center,
Java,and J2EE are trademarks,service marks or registered trademarks of Sun Microsystems,Inc.,
in the United States and other countries.
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