Narus Defines Internet Business Infrastructure Market - Software Development Kit, Virtual Analyzer - Product Announcement

Telecommunications, April, 2000

www.narus.com

Most ISPs have focused on building out their networks and plugging customer usage data into generic, flat-rate billing applications, with profit margins an afterthought. But to stay afloat, ISPs need real-time customer usage data, analysis and applications. A new market has emerged that some expect will turn customer usage data into gold mine for ISPs. Internet business infrastructure (IBI) will permit ISPs to collect and analyze information about customers and network patterns in real time and then act on that intelligence to deliver enhanced products and services. The Yankee Group predicts ISPs will look to IBI applications for data collection and aggregation, IP billing and fraud analysis, operations support and business planning. The research group estimates the IBI market this year will reach $525 million, growing to $7.6 billion in 2004.

Narus Inc. has helped ignite this market with its Software Development Kit (SDK) Platform, which is now available. The STA Platform consists of standalone traffic analyzers that collect network and customer usage information in real time directly from the message don't affect rate, content or network performance. "This is novel in the industry," according to Karl Whitelock, program director of Stratecast Partners, OSS Competitive Strategies Analysis Service. These analyzers sit on the message pipe into the ISP cloud rather than tap into each router or ISP device. Consequently, Narus has interoperability on its side because it's not connected to a device like other vendor offerings, according to Whitelock.

To further support interoperability, Narus has introduced Virtual Analyzer Plug-ins that permit different types of data collection for ISPs that might, for example, use Cisco routers with NetFlow, SNMP over a gateway device, or server logs from an application server. The NetFlow Plug-ins for SNMP and log files will be available in Q2. Narus is also testing its STA technology with Cisco's 12000 Gigabit Switch Router.

Narus LogicServers then aggregate the data and apply business rules, or RuleSets, to transform the data into information for specific applications for billing, customer care, business analysis, fraud detection, usage profiling and customer retention. Currently, Narus offers Intelligence and a Billing Mediation System (BMS). Narus Intelligence, which is shipping, supports analysis and other decision-support activities in IP networks. The BMS began shipping in December 1999, and the company is working to integrate it into Cisco's OSS reference architecture.

Recognizing the importance of a standard billing protocol, Narus co-founded with AT&T the Internet Protocol Detail Record (IPDR) Working Group, the purpose of which is to develop Internet billing standards. But Whitelock contends that Narus and other IBI players should focus on making a flexible product, regardless of protocol.

ISPs can also use the SDK v.1.0 application programming interface to customize the STA platform with custom logic RuleSets. Narus, however, does not position itself as an applications provider. Instead, through its Solution Partner Program. Narus has joined forces with application heavy-weights and network platform developers, including Amdocs, Convergys, Portal, Solect and sun Microsystems. Convergys, for example, has added QoS pricing as well as scalability to aggregate billing data for millions of users in real time. Whitelock considers the application-development aspect of IBI as a significant market opportunity: "Narus is providing the means through which service providers can how generate revenues not associated with actual network usage. Thus, service providers have a market opportunity for information that has nothing to do with the network services you provide." SDK v. 1.0 runs on Microsoft Windows and NT and is deployed or is being looked at by more than two dozen service providers, including MediaO ne.