An All-In-One Solution

The offering combines OpenReach's VPN software, installed on customer WANs, with MegaPath's broadband services, which are provided via relationships with a dozen carriers. MegaPath also controls traffic routing on its private network.

Until now, OpenReach had left transport to its customers. But since entering the midmarket, the IP solution provider has found that smaller organizations lack the capability to negotiate contracts with carriers or manage those relationships, company executives said.

"Customers want an all-in-one solution," said Mark Tuomenoksa, chairman and founder of OpenReach, based here. "They can still go with whichever carrier the want to, but at least we can now give them the choice of a single provider for the pipes as well as a secure WAN service."

The midmarket push also has prompted OpenReach to develop a channel strategy with companies such as Prescient Development and SAIC. Marc Palano, director at Prescient, said the Schaumburg, Ill., systems integrator and IT consultant decided to begin selling the OpenReach/MegaPath offering because its customers are requesting alternatives to frame relay and point-to-point solutions for connecting branch locations to main offices.

"Before, we had to call up carriers to get access. Now we have one solution with OpenReach and MegaPath that is competitively priced and turnkey, rather than having to piece it all together," said Palano.

OpenReach also monitors and manages WANs for customers, and the company often is asked to help design and implement networks,a function that partners can perform in addition to selling OpenReach solutions.

"We've been providing these services, but we want to find partners to fill that gap as we scale our business," said Lori Sylvia, vice president of product management at OpenReach.

MegaPath also has a channel strategy in which companies private-label its services or agents resell them. Dan Foster, chief marketing and sales officer at the Pleasanton, Calif.-based service provider, said security played a role in the decision to partner with OpenReach.

"What we are asked to provide is not just access, but also secure access at a cost that customers can afford," Foster said. "With [OpenReach's VPN enablement over our access network, we can tell customers that we manage the security risk."