August 23, 1999
In Web-hosting terms, the economy model offers a sturdy, efficient one- or two-server platform that lets a company dip a toe into e-commerce. The multiple-server model assumes that e-commerce is at the heart of a company and what other vendors may list as upgrade options--from load-balancing software to a review of business needs--are incorporated from the start. The midsize model falls in between.
In the end, we chose a Lexus 4x4 of sorts, a rugged high-end model. Once we were drawn to the proposals centered around high-end configurations, it was a close call between Frontier Communications and GTE Internetworking. The latter tipped the scales in its favor by submitting an extremely detailed 32-page proposal, complete with an e-commerce solution, an architecture growth strategy, a project schedule and a strong service-level guarantee. We gave it the bid.
If we were putting together a short list, Cable & Wireless would make the cut; consider its proposal if you like the kind of services Frontier and GTE Internetworking offer, but you want to start with a less elaborate platform. With just 256-Kbps guaranteed bandwidth, round-the-clock care of two Web servers and a database/transaction server at a single data center, plus five hours of technical support, Cable & Wireless's package carried the economical price tag of $5,750 per month, plus a $3,000 setup fee.
Special mention is also due to Concentric, which developed a hosting road map that starts with a single server, but can quickly ramp up as traffic and confidence grow. Also notable were AT&T and Sprint, which offered turnkey, dual-site e-commerce solutions for less than $10,000. And if we were operating under a very tight budget, Verio's $1,000-a-month one-server hosting pitch would have struck a chord.
GTE Internetworking's estimated startup fee of $17,500 and monthly hosting tab of $21,800 for its initial configuration didn't seem extravagant--particularly if we expected our site quickly to attract a demanding traffic load and were mindful of the fact that the value of our brand name would be on the line every time a visitor reached our Web site. That's why we were willing to embrace the total package, even though with 3-Mbps Internet access for the warehouse, fractional T1 service for each store and firewall protection, the bill came to an eye-popping $81,500 startup charge with a $65,250 monthly fee.
Evaluating a company's answer to an RFP obviously is not the same as actually kicking the tires. It is an analysis of promises. We read between the lines with key elements in mind--infrastructure, performance, bandwidth, reliability, scalability, security, technical support, customer service, flexibility, accountability, business track record and cost--and found a fit with our RFP's goals and objectives.
We recognized that many comparison points, such as performance, reliability and support, are difficult to judge on paper. Of course, every vendor crows about its top-of-the-line 24x7 service and support, including vigilant monitoring of the network and servers, and fundamental services such as daily incremental and weekly full backups of data. But in the real world, vendors don't always meet customer expectations (see "Deciding To Outsource," page 62). Also, we suspect a lot of games of feature and service leapfrog are played: As one vendor develops a competitive edge, such as a bulletproof data center or a 99.9 percent service-level guarantee, another follows suit.
For many real businesses, the GTE Internetworking and the Frontier proposals would be overkill and over budget. The other respondents made compelling arguments for their services at significantly lower prices. If you'd like to kick off an e-commerce effort with an estimated monthly hosting bill that's less than $10,000, the other offerings may be more appropriate. You can read the complete proposals online at www.networkcomputing.com/1017/1017f1.html.
The multiple-server model assumes that e-commerce is at the heart of your company.
Respondents made compelling cases for services at less than $10,000 per month.