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V - Value added network (VAN) to Voice over IP (VoIP)

Published online by Cambridge University Press:  17 May 2010

Robert Plant  and
Stephen Murrell
Robert Plant
Affiliation:
University of Miami
Stephen Murrell
Affiliation:
University of Miami
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Summary

Foundation concept: Network.

Definition: A communication network provided by a third-party vendor that also provides guarantees of service quality, security, and reliable data transmission.

Overview

Value added networks (VANs) are provided by third parties such as the common carriers (telecommunications providers) which lease secure telecommunication connections to subscribers. VANs provide a variety of services together with the connection, including support of a variety of EDI standards (such as ANSI X.12, EDIFACT, and XML), data security standards (for data encryption, a Secure sockets layer, etc.), multiple levels of password authorization, and communication protocols such as X.25 and TCP/IP.

Business value proposition

VANs provide secure networks capable of high-bandwidth data transmission that range from T1 at 1.544 Mbps to OC48 at 2.4 Gbps, together with service-quality guarantees and data security services. The decision to purchase may be based upon the technical need together with the financial aspects of the lease: subscribers pay a base fee plus per-service costs. The analysis of total cost of ownership has to be based upon the use of and need for the services. VANs offer a variety of services and charges are based upon their usage: the amount of data transmitted, fees for connections to other VANs, mailbox charges, help-desk service charges, data-archiving fees, service plan fees, and user and technical training fees.

Summary of positive issues

VANs provide a secure, high-quality, professionally managed and maintained mechanism for connecting with other organizations and entities.

Type
Chapter
Information
An Executive's Guide to Information Technology
Principles, Business Models, and Terminology
 , pp. 329 - 345
Publisher: Cambridge University Press
Print publication year: 2007

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References

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