Monthly Archives: September 2020

International Service of Process in Europe

The Basics of International Service of Process

There are two main methods to choose from when serving documents on the European Union, both methods, are proposed by the Hague Convention of 1965 and have the same legal value, no hierarchy exist between them, but one is less reliable than the other, the legal effects are basically the same. We propose a third method, a mixture of the above which we call “Hybrid”. Any other methods employed are outside the Hague Convention or irregular.

The basic legal methods of the Hague Convention are the following;

One, a public service of the “Judicial Administration” called “Centralized Authority” because it uses the “Government” to transmit documents. Is is intergovernmental, in principle a free service but submitted to economical constrains with high possibilities of no completion.

Two, by the use of a service provider, alternative method, called “decentralized”, it can use an “International private process server”, “Mail” or “Local Bailiffs”; All under the Hague Convention regulations, Art. 10. It’s applicability varies with the country’s opposition. As a Private method, it is paid, and therefore submitted to market and quality control.

International Service of Process, by either method, is ruled by two different legal systems, linked by the treaty of the Hague. The main law, called « Lex Fori, » is the law where the documents are issue and where judgment takes place, “Lex fori forum”. These rules, govern service of process validity and recognition in the “lex fori forum”, but not necessarily its effects and legality in the jurisdiction where documents where served, “Lex loci”. Recognition and enforcement by the “Lex loci forum” depend on the respect for internal laws of civil procedure and the procedure of “exequatur” It is then to each “lex fori” and their “foum” to determine their requirements for an “acceptable service” but being their powers limited in space they can not enforce it abroad, so necessarily need to keep in mind that: The act of notification is completed under a different legal system with different exigences, those of a sovereign state which must be taken in consideration, based on International treaties and for future enforcement. Based on International Legal Principles, we can affirm that a “Lex fori forum” can not accept in a procedure a “foreign illegal procedural actuation”, an act that violates foreign laws.Oon the other hand the “Lex Loci forum” will not enforce a judgment obtained under these circumstances in. Because of this, you must act in harmony with local codes of procedure and the Hague Convention and not only with your own laws,.or, your liability will be engaged in a Criminal or Civil manner.

The Centralized method seems to be the most appropriate and reliable, but it is not, is not mandatory nor exclusive, as explained by the Hague Convention itself (visit the Department of State’s1 web pages for more information). Therefore the “Central Authority” is not the only organ proposed as available to serve documents abroad as is the general believe or as promoted by many translation companies or unscrupulous servers who have created a :”Vox Populi” that takes advantage of ignorance of the treaty, to sell Translations and Apostilles.

Luckily for the legal profession, there are a series of alternatives or decentralized channels, Art. 10 a,b and c of the Convention, often more reliable and always faster and efficient. The method to employ must be in no conflict with the laws of Civil Procedure of both jurisdictions involved and both must be signatory countries as explained in Art. 5,b.: That is a legal harmony of “Lex fori” and “Lex loci”. These laws must be applied simultaneously when serving.

All signatory countries have accepted the “Centralized” method and not all accept all the channels of the the “decentralized method”. In Europe most countries accept both entirely. The reason is that most people believe that the alternate decentralized method does nor exist. The legal text are not interpreted or applied properly as it ends as a “Fraud to International law” and service is Void or Voidable.

The liberty of method is inspired by “International Civil Procedural Liberty” Convention, as expected by the Hague of 1954 giving flexibility to the Convention of 1965. The evolution of both and their application and Interpretation by jurisprudence has given a positive empiric result. Mondialisation of process, which needed a fast way for Judicial information exchange and judgment that adapts to it. World trade, has opened the door to more efficient and fast ways of litigation and serving process, resulting in a gain of time and money by cutting “Red Tape”. Nonetheless, there are limits to this liberty that trensform into critics to the methods and which are based on the need to eliminate some absurds requirements like the risky exam of legality prior to service or the choice given to defendant to refuse service if documents are not translated and the lacunae such as no distinction between service to Individuals or Multinational Companies, Nonresistance of presumptions and many more will see later..

The Hague Convention’s Centralized method has, as said many “legal lacunae” or serious defects:, the main one is that is a free governmental service that does not uses a “fast Independent Private Process Server.”, as is requested by many courts and litigants, it is defective and often deceptive method. It promotes the use costly translation and the contents of summons is exam for legality before they can be served. These requirements makes it slow and therefore not adapted to modern international litigation. It is also contradictory because under the veil of gratuity there are a series of unnecessary expenses that result in an expensive service, more that using private channels. I consider it promotes unnecessary translations because, if documents are not translated, the defendant can refuse service and in other cases the central authority will not be able to exam their legality, Article 5..

It is advisable not to have the documents translated unless you do it properly with the right qualified professional. As a preventive measure, if you do a translation to avoid “possible” future problems, the translation itself can be easily “questioned” in court during enforcement because European courts only accept as valid translations from tindividuals that give the necessary legal guarantees, either by Certification and/or Registration. Is is considered that only those listed each year by the different Courts or the Foreign Affairs Ministries. do reliable translations. There are other “glitches” that appear at the home Jurisdiction but these can be kept at home.

On the other hand, an essential defect of using the Centralized, is the requirement of an exact address of defendant. A problem, because there is no possibility of “locating a defendant” or “Skip tracing” The Central Authority does not “searches” for Individuals or Corporations. If a defendant changes address or the address is not correct , if he is a tourist or illegal, service is paralyzed and returned, waisting your time and money, sending you back to square one while court time is running. Interesting to mention is the situation of corporations which can change the address of the registered headquarters and do not have an immediate obligation to notify this changes to the Mercantile registry. The central authority will not pay tfor any expenses such as access to a mercantile regustry.

Another defect, is in the requirement for “Personal Private Service”, concept that is understood in different ways in different countries: Bailiffs or Local Judicial Officers apply the local Code of Civil Procedure and not the special instructions received from foreign jurisdictions. In practice, what is understood in Common law as “Personal” is understood in Europe as “Substitute” and the problem increases if we distinguish between service to corporations from service to individuals. When servicing corporations, this must be completed in the person of those individuals who have the power to represent the corporation, that is to say the “officers” publicly listed in the mercantile registry. Therefore service to the front desk, secretary, gardener or any employee of a corporation, is “Substitute service”. For individuals, most local laws allow officers to leave documents at the address specified or leave a note in the door as equivalent of service. These officers, do not need to understand the hierarchy of the Hague Convention in this sense and what are the “Lex fori Forums” needs . Instructions for service to the central authority, transform into let’s do it our legal which is not necessarily valid on the other jurisdiction.

Remark therefore, that the use of “insistence and perseverance” is not possible by the “Centralized method”, its efficiency is not good and it is only, by the use of a private personal server that you can achive the best results, have more legal security on service and what is the most relevant, you will be courteous to your adversary and sure of your case.

These above reasons explain why most Common Law Attorneys have used as many many “tricks” as possible or patches to remove these obstacles of the “Central” method, I do not blame them. Sometimes by the use of “an agent” which often is, their local process server, their friendly “tacky” translation company or their neighborhood’s Private Investigators. The reality is, that on the long run, not only they have waisted time and money but they are liable of fraud to international law, defamation, Ilegal practice of law,Revelation of Secrets… and to complete the apocalypse, if not prosecuted or challenged, the judgment obtained will not pass “Exequatur”.(Enforcement).

No doubt then, that ignoring European laws, rights of image and privacy amongst other can happen and can have undesired consequences. Jurisprudence has considered that services completed this ways as irregular and have engage the liability of the plaintiff.

The “Lex fori forum” and “Plaintiff’s Attorney” are obliged ex-lege to respect the lex-loci or the legal requirements of the jurisdiction where documents will be served and these starts at home with confidentiality, secrecy and a proper translation of documents as the basic right of defendant.

Service of Process must protect the defendant abroad. It is my understanding that “Lex fori” process servers, Non Certified Translations Companies, even with offices in Europe and other intruders in the chain of International litigation can severely contaminate a case.

There are, a series of channels in an “alternatives or decentralized method” , more reliable and with more efficient ways to serve, these are replacing the anachronistic central method.

Centralized Service of Process has the following characteristics:

1.Translation: a. High Cost b. Unnecessary c. No distinction between Individuals and Corporations
2.Service Speed: Slow and can paralize eassily
3.Prior Exam of legality a. Slows down b. Contradictory
4.Exact Address
5.Non Personal Service
6.No Courtesy
7.No Confidentiality
8…..

Hague’s Alternative method of International Service of Process

The Alternative method is composed by channels , using them has the same legal value and effects as the “Centralized” method, if the country of “Lex Loci” has presented no express opposition to them,.there is no hierarchy between “Centralized” and “Decentralized” methods.

Art. 10 a, Service by a Currier, UPS, Fedex, DHL, Postal, fax, internet (email or messenger), as confirmed by different jurisprudence are not reliable, even if they are contemplated and accepted in some countries. The reason is that they lack of “legal guarantees of delivery of contents” violating the Principle of Contradiction,and Equality in a fair Judgement. These channels can bring the defendant into “defenseless”. Therefore they are mostly considered by jurisprudence as “evidence of an address” more than evidence of a Legal Notification. The Hague Convention permits these in Article 10, but they require some logical complements to be “Legally binding” even if the Convention does not indicates those. Indeed, one can serve blanc pages by mail or fax since nobody will check the contents and thereto obtain a judgment by default. Because of this, I recommend a “Certification of Contents” necessary either on the sending Jurisdictions or in the receiving Jurisdiction by a qualified, but done by a qualified professional that has “Public trust” The postal of fax receipt are not an affidavit.

Understand that the objective of service of process abroad is transmitting information, a legal notification to a defendant, inform him of a “cause” in which he is part and which could have serious consequences in his patrimony, rights and obligations as they will in your own jurisdiction. These rights must be respected and protected by the rules of the legal art in order to avoid Arbitrary application of law and fraud to International law. To avoid this, the Hague Convention canalizes these notifications by taking in consideration internal laws Art. 5 but without providing a way to control it or a procedure for appeal..It imposes the protection of defendant’s rights and obligations as well as those of the plaintiff but does not says exactly how this could be materialized. Please determine, not if the notification was done but if it was “properly done. Service by mail, fax or email are very fragile channels that must be avoided..

These alternate channels are symbol of the “Liberty of Transmittal” but have enter into excesses, for exqample the email, reason why the decentralized method, has been wrongly understood by many Common law Attorneys,. Translators and Private Agents. This happened because the “mechanism of service” applied and employed has been the “known one” the one that sound logical, unconsciously applied in violation of foreign laws. Professionals have use what they know, as a reflex, they have used the same manners as for their state notifications and have sent abroad a joke. This has resulted, in failure to enforce, impossibility of judgment recovery or simply a challenged of service. A distinction must be made between a banal Service of Process and an International Service of Process and to honor international justice even if the effects of your judgment will remain in your jurisdiction do that international service properly, is just a matter of International legal courtesy.

The philosophy behind and the rational explanation, is that the concept of “Public trust” is very different to each culture and their legal order. Think about that opposite to Europe,- No Governmental Identification Card exist in common law countries, there is no central land and/or property registry, sometimes Notaries are simple individuals, Process Server and/or Translators have minimal requirements. In old and experienced Europe, everything is “suspicious” and therefore surrounded by the maximum guarantees of legal security enforced by the state at “Felony or Criminal level” to avoid any possible “misunderstanding”, “fraud”,”deviation” or “Abuse”.

In Europe. service of process, either for internal purposes, European Purposes or for International foreign courts, is considered as a penetration of “Jurisdictional Power”, when completed it is actually a “delegation of powers” to the server. In Europe. the monopoly of legal representation, actuation and consultation, has been given, traditionally and since middle ages, to the different “Legal Corporations”. Private agents are excluded of these basic requirements.

The legal professional associations are those of “Huissiers de Justice”,”Procuradores”, “Ufficiali Judiciario”,”Abogados”,”Avocats”,”Advogados”…. Unlike common law countries where almost anyone mentaly capable can perform these “legal contents and jurisdictional acts”. Please, know that only qualified legal professionals can serve properly and legally in most of Europe since are the only professionals, who can offer “Ex-lege” the required and necessary legal guarantees. Service by a “Agent” as known in common law does not exist in Europe nor in the Hague Convention, it has been used but this usage does not rises service by agents to a legal stage.

Logically explained: If any country’s laws of Civil Procedure establishes for internal service of process, a procedure that requires guarantees of public trust; given only by the use qualified professionals, how come, for International Service, you can expect to use anyone? An agent? In conclusion: When in Rome, do as the Romans!

We must distinguish between communications to the Central authority or with the Server and notification or service of process to the defendant. One is an organ and the other a defendant. Communication with the Central Authority of to the server can be by any means, even e-mail Also note that the Hague Convention obliges service of process to have two explicit and implicit requirements for acceptance: voluntarily and knowingly. These can be compared to a “bilateral obligation in Civil Law” (See Article 5 (b) alinea of the Hague Convention). Therefore, if the defendant is not “capable to understand” what he is receiving, service is viced and the “Defendant can refuse service”. If documents are not translated he is not “capable to understand”. The defendant is not sense to know foreign laws or could be economically challenged, but some presumption exist: If the defendant is not served multilingual Attorney at law and advise at the moment of Service or if the documents contain No Legal Notice and etceteras, the defendant is in “Procedural defenseless”.and therefore service of process is not valid and useless. . Service to Corporations doing International Business, those under the Hague of 1956 for “Company recognition” it must be presumed that they speak the language of the Jurisdiction in which the carry business and know their laws. The Hague Convention does not distinguishes between services according to defendant; Individual or Corporations. Therefore, I consider the Hague as placing an obstacle in service to corporations, since the plaintiff is oblige to translate the documents. Logically Corporations should never use the central authority, they do not need it.

The Hague Convention indicates “voluntary acceptance” as a condition of service, this does not mean “Refusal at all times and systematically to get civil or commercial impunity”. In this sense, service by Certified Mail, email, fax and other unilateral acts of service, which we can be consider as “Adherence” from defendant to service, have the common denominator that the defendant is not accepting voluntarily, since he is receiving something with unknown contents. The contents will discover later and he is accepting first, therefore contradicting the Hague convention confirming this way that these channels as good for a verification of an address but not of service. In conclusion, Certified Mail, email and fax are not proper ways of serving and a Court accepting this kind of service are refusing rights to the defendant except if they are back up by a qualified professional’s Affidavit of service.

“Service by Agent” as understood in common law, is not contemplated in the Hague Convention on Service of Process, it is another automatic reflex and has been used by many common law Attorneys. These agent services have required translations of documents because the Agent used, in most cases speaks the language of the Attorney requiring service. Often he is a foreign national in the country of service, sometimes illegal, but in any case not qualify to do this kind of Job. They provide “Shaky” services based on the fact that they speaks the language of the Attorney requiring service and dare to violate all kinds of laws, anyways most of them have nothing to loose..

These “Merchants of Process serving” use translations to increase profit and to reduce the possibility of future challenge of service. In most European countries, it is considered. that “Legal Guarantees”, are only given to, and are given by “registered and insured professionals, recognized and controlled by the governments and grouped in special associations or corporations submitted to strict ethics control: These agents are an insult to law and order. The law and confirmed Jurisprudence protects “defendant’s rights” against poor « qualities and qualifications » of a “dummy server” or anyone from here or there, an intruder, who for a “fist full of dollars” will issue an affidavit. Therefore service by “Agent” is possible if and only if the Agent to be used is a qualified legal professional in the country of service.

It is a interesting anecdote, that I found an “International service of process company in Spain” that also does “plumbing” services from the same office, a business run by a felon issuing affidavits even to service completed to non existing address or people he never saw.. It is a shame that Justices and Attorneys in North America often, accept, for international service of process, affidavits of persons that do not offer any guarantees or have the essential “Public trust”, looking down and with disrespect the rights of defendants and the laws of procedure of a foreign country. Indeed, employing anyone for international service of process, is a disregard on justice and disrespect for International and local law. To serve properly you must respect foreign laws of procedure! You must understand the European concepts involved in a “Procedural Notification” and respect for “Justice”.

Finally, art. 10 c, considers as “Agent” a Judicial officer or bailiff. Service by these agent depend on the kind of person to served: Physical or Juridical. In some jurisdictions, serving a corporation must be to a “Registered Officer” as it appears on the mercantile registry of their country or to their legal department or representative and the place of service has to be the registered headquarters otherwise it will be a substitute service (Individuals or Corporations can be served at their Attorney’s office). If Individuals, an agent can served them at their home or place of work., but not in a public place.

One excess of the Hague Convention is the requirement for an exact address for service, meaning that the requester must have the exact information. This requirement reduces the rights of the plaintiff since a qualified legal professional acting as agent can complete service to two addresses to avoid impunity of defendants, that is to say, serve the address in the writ of summons and the legal or present address.

Service can be completed by directly instructing a Judicial officer of a Bailiff, article 10 c of the Convention, employing them as organ and as server, but they will issue am “Act” or document in the official language of the country, you will have to pay for a supplent for translation into English language and eventually the legalization of signature. Our Hydrid service take’s care of everything.

Please remember, the principle in Europe is the “Protection of the rights and obligations of litigants” by due diligence completed with integrity and by qualified and reliable professional not an “affidavit” obtained in obscure circumstances at any judicial cause price or at justice expense.

Summarizing: The two main methods both have the same legal value within the Hague Convention and no “Hierarchy”exist amongst them, one is bad and the other is worse, they are equally poor, but combining them is possible and results into a more reliable international service:

WARNING: Translations and Apostilles (Legalizations) are not necessary but if you use them remember that the Translator must be “Certified” by the “Foreign Affairs department” or the “Local Appellate or Superior Court”. The use of a local Notary Public to certify the signature in a translation does not corrects the errors of “tacky” translations. The use of a non registered “Attorneys at Law” under most jurisdictions of the European Union for acts reserved to the legal profession causes “contamination of your case”, engaging your liability: Protecting the rights of litigants is your obligation. Do not use simply anyone willing to issue a statement of service affidavit if not qualified.

Inventing International Service of Process: The Hybrid system

Our “Hybrid system of international personal private service of process” combines, not only “methods”, but also the different channels or options of the convention, applied by steps and in less time that the “centralized”. The result is a better service that takes the positive side of each method in order to obtain the best legal guarantees: We consider it as “System” , more than a method, please consult us so we can discuss your case service in detail and how our system applies.

The hybrid system for International Service of Process, heals the disadvantages of the Hague Conference’s centralized method and the abuses in the use and application of the decentralized alternate method. It is a non complicated service of process having the characteristics of Legality, reliability and fast. On the other hand, the “system” applies the principles of the Hague Convention combined to each jurisdiction, incoming and outgoing, and their respective laws of procedure. The “legal order” is to obtain with the maximum legality and protection of litigants, its main characteristic is that: Service is double, a preliminary International service and an Euro service.

The system provides that the rights of the plaintiff and defendants are guarantee and protected by registered and insured multilingual Attorneys at Law in the country of service. Documents are delivered personally in all confidentiality by a legal professional who will give advise in the language of the defendant, making it comprehensive by giving complete legal notice and explaining how to proceed. All services are completed with mandatory secrecy and neutrality, Courtesy and professionalism under the respect for internal laws of Civil procedure.

The defendant does not have an option to refuse service, or claim to be “unprotected” there is no “a priori” exam of contents or delay, no translation’s cost or apostilles, no promises of service but a “Jurisdictional act completed according to local law by a qualified legal professional”, Note the advantages;

a. The defendant does not have an option to refuse service, or claim to be “unprotected” b. Liberty to choose process server within the legal profession market value. c. There is no “a priori” exam of contents or delay in exams d. No translation’s cost Nor apostilles, stapples,stamps or clips! e. No doubt on delivery of Contents e. Service with “Professional Integrity” f. Customer service and Affidavit in English g. Une of Bailiff when required h. Service is guaranteed in delivery i. Service is guaranteed in court

…..and much more

Our price list, reflect the need of taking in consideration many legal and practical aspects of service in Europe, specially to avoid incidents and possible cchallenge, appellate “quash” proceeding”, we provide services that are cheaper than the “Centralized” method and with the same value.

The different classes of service we proposed vary according to the required time for service: Urgent, and each has different protections. We always start by a “Skip Trace or Locate” in order to obtain an exact address as per mandatory requirement of the Hague Convention and to avoid you unnecessary expenses, then we mail a preliminary service of process to verify the address of delivery and physical existence. Our letter, asking for an appointment or an interview and placing ourselves as neutral Attorneys at Law available as required by law to avoid defenseless by counseling the defendant. During the interview, in presence of a local Judicial Officer or Bailiff when required, we verify the identity of the receiver, his knowledge of the language in which documents are written and explain in detail their rights and obligations. All of this procedure is condensed in a Custom made affidavit that is legalized by the Notary Public of the diplomatic representation of the lex fori (That is to say: the Consul).

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India, a pioneer in providing accounting services, has the skill, competency and expertise to provide a wide range of accounting services. Providers in India also employ the best in infrastructure, technology and software to ensure that they provide customers with accurate services within a fast turnaround time. When you outsource bookkeeping, you can be assured that your accounting, bookkeeping and tax preparation requirements will be met accurately. Outsource Bookkeeping services to India and get access to professional, proficient, expert and skilled accounting services.

Make Your Business a Success with Efficient Bookkeeping

Accurate bookkeeping is essential for any business, be it a large or small organization. Bookkeeping can help your organization keep a track of all your organizations’ transactions and finances on a regular basis. Efficient bookkeeping services are important, if you want to turn your business into a success. Outsourcing bookkeeping services to service providers in India can help you understand if your business is making money, if your organization has strong finances, if your expenditures are more than your sales, if your expenses are high, if you are spending too much money on something etc. With answers to all these puzzling questions, your organizations can take better business decisions and increase profits.

Outsource bookkeeping services to India and get assistance in budgeting, in preparing income tax returns, in preparing balance sheets, in obtaining other sources of your organization’s capital, in complying with tax rules, in distributing profits, in preparing income statements, in submitting sales taxes, in evaluating financial consequences, in monitoring the failure/success of your company, in preparing financial statements and in submitting sales taxes amongst others.

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India Uses the Latest Bookkeeping Software

The outsourcing providers in India use best-of-breed bookkeeping software to ensure that customers get accurate accounting services within a fast turnaround time. In accounting services, using the best suited software is important in ensuring quality. Different countries and different companies employ the use of different bookkeeping software. When you outsource accounting services to India, your outsourcing provider will use the bookkeeping software that you employ. Companies providing bookkeeping services in India are well-versed with all the latest bookkeeping software and can use any bookkeeping software that you suggest.

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Choosing Your Ethernet Service Provider

Inter-site Ethernet

A guide to choosing your Ethernet service provider

Key topics

The market for Ethernet is continuing to grow, as UK organisations appreciate the cost savings, performance and efficiency gains to be made from deploying services based on this transport technology. Businesses that choose Ethernet-based connectivity for their corporate Local and Wide Area Networks can expect greatly increased productivity and profitability, as well as significant competitive advantage, from the capacity to introduce new applications and services to customers and staff. When choosing an Ethernet service provider, companies need to consider a range of factors including: the fibre-based coverage offered by the provider the methods used to protect, optimise and guarantee network performance the price and flexibility of deploying future services. 1 Introduction

More and more enterprises are choosing Ethernet connectivity for Internet Protocol (IP) services %u2013 not just for their Local Area Networks (LANs) but also as a means of easily, flexibly and cost-effectively connecting geographically spread sites.

Ethernet offers superior network performance at vastly reduced cost compared to traditional Leased Lines or services based on Asynchronous Transfer Mode (ATM) or Frame Relay transport technologies. It makes it affordable and achievable for organisations of any size to create a single network that is easier to manage, provides the flexibility to grow with the business and enables new applications to be added as required, simply and cost-effectively.

The tangible business and IT management benefits of the technology are fuelling massive growth in the adoption of Ethernet services by UK corporations, with market estimates for continued growth over the next few years already being exceeded.

2 Business drivers

There are compelling business reasons why companies are embracing Ethernet as their connectivity of choice for the corporate LAN and Wide Area Network (WAN):

-u2022 major cost savings

-u2022 increased IT efficiency

-u2022 improved business protection

-u2022 greater productivity and customer service.

2.1 Major cost savings

Integrating WAN and LAN into a single, national Ethernet-based LAN generates considerable cost savings for a number of reasons.

Reduced price & flexibility of bandwidth

Bandwidth on Ethernet is less expensive than bandwidth on Frame Relay or ATM-based networks and you only pay for the bandwidth you actually need. This means you can get far greater capacity for an equivalent investment %u2013 in fact, businesses can expect to treble their bandwidth capacity for the same price as their current Frame Relay/ATM networks. Where providers offer scalable bandwidth upgrades, you can initially set lower capacity while you determine your network%u2019s needs, then increase capacity as and when required, easily and cheaply, without having to replace the fibre over which the service runs.

You can explore the opportunity to use your greater bandwidth capacity to introduce new services and applications that will improve your overall efficiency and competitive edge:

consolidate servers and storage networks to facilitate their management and reduce IT costs Take advantage of multimedia applications to improve business practices and customer service, such as delivering interactive training courses with live video Use Voice over IP to enhance staff productivity by introducing hot-desking move to thin clients within a web-based software architecture, saving capital equipment costs (servers and software) and minimising hardware wastage. The reduced cost and greater bandwidth flexibility of intersite Ethernet enables you to be confident that your network availability will be robust enough to support new services, as well as increasing the performance of existing applications.

Reduced hardware

As Ethernet is well-established within the LAN environment %u2013 there are almost a billion Ethernet interfaces in use worldwide today %u2013 and increasingly being adopted on the WAN, equipment is more readily available and costs far less than the traditional WAN routing equipment used to support Frame Relay/ATM based networks.

By enabling you to consolidate your WAN into a single network, you can make major savings by eliminating the need for the hardware involved in multiple networks. With fewer systems to purchase and house at additional sites, you can save on the capital cost of servers and related equipment. This has a knock-on effect of reducing software licensing fees and support costs.

Facilities management

Centralising your network also simplifies its management, monitoring and back-up and streamlines the administration of software licensing, generating further cost savings. Before Metro and National Ethernet services became widely available, companies had two main options for their network management. They could either allocate networking staff to manage the main servers on the network at every physical location, or centralise resources and connect them via ATM or Frame Relay %u2013 both of which were expensive.

This also resulted in many companies under-utilising their capital equipment by being forced to duplicate resources across multiple sites, often implementing upgrade programmes before some sites became truly obsolete and failing to optimise the skills and availability of their staff across the entire network.

An Ethernet-based network also gives you flexibility in where you centralise your network management. Rather than recruiting and locating staff in headquarters, for example, you can instead choose to move network management to a regional office, where staff skills are cheaper to acquire and property overheads lower. According to Ovum 1 , 70% of the cost savings from consolidating network resources comes from such staff and accommodation cost reductions.

Reduced staff costs

The overall staff costs of managing a single Ethernet network are lower than with ATM/Frame Relay-based networks, because Ethernet skills are widely available and cheaper to recruit than WAN/router specialists.

2.2 Increased IT efficiency

With Ethernet, the integrated LAN can effectively extend anywhere, yet be managed centrally. This is both cost-effective and efficient.

Simplified management

The WAN can use the same protocol as the LAN, making it far easier to manage the two. Companies that have Wide Area or Metro Area Ethernet solutions can also manage their LAN and WAN with a common set of management tools %u2013 which in turn removes the need to source and recruit specialist skills in Frame Relay or ATM technologies.

Lower maintenance

Centralising the management of the network also simplifies system monitoring and back-up, substantially reducing the level of maintenance needed on the network.

Strategic deployment of IT resources

By reducing maintenance and management issues with an Ethernet-based network, you can reallocate staff that would previously have been required for reactive management and maintenance to IT projects that proactively support business progress.

The optimal network

With no geographical constraints and less drain on budgets, you are free to design the ideal network to exactly match the needs of your business.

2.3 Improved business protection

Disaster Recovery, the process of regaining access to the data, hardware and software necessary to resume critical business operations after a natural or man-made disruption, often implies preparation for a freak catastrophic incident. However, very often the type of events that can affect business continuity are much more mundane or routine occurrences, such as a power cut, or even simple human error.

So it’s vital to ensure uninterrupted availability of that information in the event of system downtime “for whatever reason” and to deal swiftly with any issue that affects any part of the network and has the potential to threaten the smooth operation of your business.

Ensuring business continuity

The growing importance of adequate business continuity measures is being driven by companies%u2019 dependence on IT and by the higher expectations of their customers, who demand the kind of 24×7 service that can only be delivered by the most robust technology.

Historically, putting a business continuity or disaster recovery solution in place to protect the business was a complex and expensive task. However, Ethernet now makes it possible to deploy a highly cost-effective solution by enabling business critical data to be backed up remotely over a high speed network between corporate HQs, regional locations and business continuity sites.

For example, over an Ethernet network, it is easy to mirror corporate databases in real time. If a live database should go down, an up-to-date back-up copy is immediately available and easily accessible to any employee over the network, regardless of their physical location.

2.4 Greater productivity & customer service

The benefits of Ethernet-based networks can also enable you to explore new ways to increase staff productivity and levels of customer service to gain a valuable edge over your competitors.

Deliver improved service to customers

Over a secure Ethernet connection, you are able to make information much more immediately accessible to staff, no matter where they are located. They can hold virtual meetings, develop more collaborative working practices and use electronic whiteboards to share and discuss information.

Training can also be delivered in interactive sessions, independent of location, over the network rather than on costly, time-consuming training days, enabling it to be delivered much more frequently.

This all results in better informed and better trained staff able to provide greater levels of personalised, immediate service to customers.

Deliver new services to customers

Customers increasingly expect to interact with their suppliers using the web or multimedia applications. For example, nowadays, most telephony providers, utilities and banks provide billing and customer service information online. Ethernet’s affordable high throughput of data means that it is well-suited to support such services by enabling them to be delivered cost effectively and quickly over a high quality network.

Depending upon the nature of their business, companies can also look to introduce innovative new services such as multimedia and interactive presentations, to enhance how they attract and sell to both customers and prospects.

Deliver new services to employees:

VoIP & video

Many UK enterprises are adopting Voice over IP (VoIP) in a phased manner to take advantage of significant call cost savings, easier systems management and the new applications that can dramatically improve communication, productivity and service levels. However, VoIP makes heavy demands on bandwidth and network resources, and requires low latency, low packet loss and small voice packets to perform properly.

With the ubiquitous high-quality bandwidth capacity delivered by Ethernet, companies can maximise the opportunities presented to them by VoIP capability. Innovative solutions such as video conferencing to aid employee training and minimise travel costs, as just one example, can be deployed with full confidence in the robust performance of such applications.

3 Underlying Ethernet technologies

There are numerous technologies and connection mechanisms that can underpin an Ethernet service. You need to choose a service based on underlying technology that will suit both the IT and commercial needs of your company, not just in the short term, but in the future when you may wish to explore new business opportunities.

3.1 Short haul & Metro Ethernet

Point-to-point Ethernet services are based on supplying a dedicated fibre pair for each connection, which is physically laid through the service provider’s local hub site. No routing takes place; data packets go in one end and come out the other, exactly as they went in. The advantage of this is that there is no routing overhead and faster delivery.

Multi-site Ethernet services for the metro (regional) area often use switched Ethernet technology and do not usually touch a core network. This delivers better performance than a service that traverses a provider’s core network. However, metro-based services are restricted to the regional area, and generally the benefits of long haul connections will outweigh any loss of throughput over longer distances.

The ideal provider is one with good local presence and an extensive national core network, which can provide a combination of both short and long haul Ethernet services.

3.2 Long haul Ethernet

3.2.1 General

In the case of long haul or National Ethernet, a portion of the service is usually carried over some form of core network. Multi Protocol Label Switching (MPLS) is widely accepted as the best type of core network for supporting both legacy and future applications. This is partly because many service providers plan to offer the highly attractive Virtual Private LAN Services (VPLS) over their MPLS core network.

3.2.2 MPLS

MPLS provides the ability to define and support different classes of service to individual flows of traffic, prioritising bandwidth and enabling you to make the most efficient use of your capacity to ensure carrier class delivery without increased cost.

3.2.3 Virtual Private LAN Services

VPLS enhances a service provider’s MPLS core network by providing a connectionless Ethernet service, delivering anyto-any connectivity, and gives far greater flexibility, scalability and cost efficiency when it comes to managing traffic flows. VPLS also allows multiple services to be delivered to customers over single rather than multiple access circuits.

Adoption of VPLS will undoubtedly accelerate technology change, reduce IT costs and allow use of new applications to increase productivity. In addition, as VPLS is protocol independent and operates at Layer 2, there is greater security for customers as the service provider has no view of, or control over, the customer’s routing of particular importance to the “high end” corporate Enterprise.

3.2.4 Developing carrier Ethernet solutions

Technologies such as Provider Backbone Transport (PBT) claim to provide Ethernet services which aim to match traditional networks delivering Quality of Service (QoS) and protected paths.

4 Choosing your Ethernet service provider

Several UK service providers offer National and Metro (regional) Ethernet services, and any evaluation to differentiate between them should consider:

– coverage of fibre-based local access

– price

– network performance

– flexibility to add future services

– terms and coverage of Service Level Agreements (SLAs)

– security.

4.1 Coverage of fibre-based local access

Ethernet services above 2Mbps tend to be provided using fibre, rather than copper, line plant in the last mile. Therefore, for Ethernet services, you should shortlist operators that have deployed fibre to street cabinets already, thereby reducing the cost of bringing Ethernet services to your business premises.

It’s also important to understand service providers’ ability to connect into every site in your network, which depends on the number of Points of Presence (PoPs) they have. A service provider with more PoPs is more likely to have a PoP close to all the sites in your network, and therefore is more likely to be able to provide comprehensive Ethernet coverage.

4.2 Price

With most Ethernet services, the dedicated access circuit is generally the highest cost component, while shared resources such as the service provider’s core network provide significant economies of scale, and are a small proportion of cost to the service provider. The shorter the access circuit, the more

likely the service provider will be able to provide a low cost circuit. Therefore a large number of PoPs is a strong indicator that the service provider will be able to offer an economical solution.

4.3 Network performance

For all their limitations, ATM and Leased Lines do provide reasonably high levels of performance when measured in terms of latency, packet delivery and jitter. When replacing inter-site networks that use technologies like ATM or Leased Lines, it is important that the new network matches the performance of the old, not least because users do not appreciate cost savings at the expense of network performance. When considering Ethernet services, you should be aware of the following:

Avoid over-provisioning

With packet-based networks like Ethernet, particularly those delivered over a shared core network, it is possible for service providers to contend their network in the same way that Asymmetric Digital Subscriber Line (ADSL) broadband internet access is contended to reduce the service provider’s cost per customer. The better providers are those whose networks have been built with enough spare capacity in the core to respond comfortably to peaks in demand throughout the day.

Latency, packet loss and jitter

As latency, packet loss and jitter significantly impact the delivery of Voice and Video over IP, inter-site performance should ideally match LAN performance.

Voice

Voice over IP requires low latency, low jitter and moderate levels of packet loss and a network that can also manage a high volume of small voice packets (typically 40bytes). If your VoIP traffic is going to traverse your network more than once, such as in a ‘hub and spoke’ network, traffic may be routed into a hub site and back out to a branch (or spoke) site. In this instance, the latency, jitter and packet loss that your traffic experiences will be twice that quoted by your service provider.

Video

‘Real time, two-way’ Video over IP such as video conferencing applications requires low latency, whereas streaming video or Closed Circuit Television (CCTV) does not place such high requirements on the packet delivery system.

Data

Data back-up and restoration necessitates low packet loss. A good rule of thumb is that the lower the latency and jitter figures cited by a provider, the better their service will be. It also pays to consider whether a provider can support ‘any-to-any’ connectivity between your sites.

Performance of existing applications

If you intend to consolidate your servers into just one or two nationwide locations, then you need to bear in mind that established applications may be designed to operate over a network with LAN levels of performance, where jitter and latency would be very low.

To get a clear indication of a provider’s network performance, review their SLAs and be wary of those who do not include target levels for performance. This is often an indication that they over-provision or contend their core networks, which will inevitably jeopardise the performance of your network.

Ethernet Latency

The time taken for traffic to travel from one end user site, across the inter-site network or link, and reach the other side. Some service providers quote “round trip delay,” which is simply double the latency figure.

Latency is measured in milliseconds. VoIP and realtime video are both sensitive to high latency.

Jitter

The latency of a link is not constant: a series of measurements collected from one route will show a variety of latency times. Jitter is the amount by which this latency varies, i.e. the difference between the shortest and the longest latency time measured. Jitter is also measured in milliseconds. VoIP is more sensitive to jitter than real-time video (as opposed to streaming video). However, excessive levels of jitter can nevertheless disrupt both voice and video.

Packet loss

Also known as packet delivery, a measure of the percentage of packets that successfully traverse the

inter-site network. Almost all types of packet, frame or cell-based networks lose a small amount of traffic. If applications are using a higher layer protocol like Transmission Control Protocol (TCP) then these lost packets can be retransmitted. However, many applications use User Datagram Protocol (UDP), which does not retransmit lost traffic. VoIP, Video over IP or data backup are examples of applications which use UDP and can therefore be vulnerable to packet loss. Choosing a service provider whose network has a low packet loss is therefore important.

4.4 Flexibility to add future services

An inter-site service that is future-proof will be able to support new applications as they are introduced further down the line. Even if applications such as VoIP and multimedia are not current requirements, it is important for your business to have the flexibility to incorporate these technologies quickly and easily should the need arise in the future. Being able to take advantage of these new technologies without having to reinvest in your inter-site connections is therefore an important requirement when reviewing providers. A future-proof inter-site service also gives you the option of agreeing a long-term contract and benefiting from term discounts, safe in the knowledge that there will be no need for costly upgrades if new applications are needed in the future.

Supporting Virtual Private LAN Services

Not all Ethernet inter-site services are based on state-of-the-art technology such as MPLS, some are even based on ATM. Whilst Ethernet presentation of ATM services brings some of the benefits delivered by true switched Ethernet services, it suffers significant drawbacks.

The fixed size of ATM cells means that small packets (e.g. VoIP packets) have to be carried in two ATM cells with most of the second cell being ‘padded’ out to make it up to the mandatory ATM cell size. The effect of this padding is that throughput on an access circuit can reduce by up to 35%, with a 100Mbps service only being able to support 65Mbps of traffic.

MPLS-based or true switched Ethernet-based services, by contrast, don’t suffer from this limitation so there’s no need to investigate the packet sizes of your existing network traffic. MPLS-based core networks make it possible to deliver potentially attractive services such as Virtual Private LAN Service. VPLS permits national end-to-end Ethernet (i.e. Layer 2) services to support any-to-any or peer-to-peer traffic, making network management much easier and enabling new applications to be plugged in as and when required at vastly lower cost than in a multipoint network.

In the Heavy Reading Survey 2 , 68% of Enterprises rated VPLS as an important requirement in the future prosperity of their business. Because of its current and growing future importance, it is worth making sure that the long-haul Ethernet services offered by your chosen service provider don’ have any technology barriers that prevent them from being able to support VPLS.

4.5 Terms & coverage of Service Level Agreements

Many SLAs only cover part of the service, and very often exclude the access circuits as they are provided by a local access wholesaler and are therefore outside the control of the overall inter-site service provider. Look for providers that include all elements of the service, including the access circuits.

Additionally, examine the terms applied by a provider to fault resolution. For fault repairs, guarantees are usually measured in hours and / or annual availability, and it is vital to check that the service provider considers that the fault has started when either the customer or the service provider detects the problem.

4.6 Security

Security is an important concern with any network. Fortunately, most of the technologies that underpin intersite Ethernet products are generally considered safe and, where there are risks, they are well understood. None of the inter-site Ethernet products on the market today rely on the internet as the backbone network. However, if any of your sites have an internet connection, adequate inter-site and internet security solutions must be put in place by the service provider. This will typically include firewalls at the gateway to the internet and access restrictions to different parts of the internal network for different users, using such methods as Virtual LANS (VLANs).

5 Conclusion

Ethernet-based connectivity for corporate LAN and WAN offers broad business benefits. A massive growth in spend on Ethernet services by UK companies is being fuelled by their recognition that this mode of transport for IP services gives superior technical performance at a vastly reduced cost than traditional Frame Relay or ATM technologies. By using Ethernet-based connectivity to integrate Wide Area and Local Area Networks into a single, national LAN, you can expect to:

– save costs

Bandwidth, equipment and supporting specialist skills are all far less expensive when compared with Frame Relay, ATM and other alternatives. Consolidation and centralised management also minimises hardware requirements, and reduces capital and software licensing costs

– facilitate network management

With Ethernet, the integrated LAN can effectively extend anywhere, yet be managed centrally. This makes the network easier to maintain and saves IT resources that could be deployed more strategically to support your business

– protect business continuity

You can take advantage of the greater speed and bandwidth of Ethernet connectivity to deploy robust disaster recovery measures and ensure staff can access business-critical information in the event of a major outage or catastrophe, regardless of their location

– flexibly develop their business and services

Ethernet connectivity underpins applications like VoIP, multimedia and real-time video to enable you to provide value-added services to customers and staff, such as online provision of information, collaborative working and distance learning.

Checklist for sourcing an Ethernet service provider

Identify cable companies with fibre, not copper-based coverage, that have good local presence and an extensive national core network to enable them to provide a combination of both short and long-haul Ethernet services. A large number of PoPs will also enable the provider to offer you the best-priced solution. Seek evidence that the provider does not over-provision capacity, which will degrade the performance of your network, but instead offers end-to-end Ethernet services. Look also for providers that publish and include target levels for network availability within their SLAs. Check the terms on which support services such as fault resolution are delivered, to guarantee the level of service you are paying for. Choose a provider that can provide the requisite security applications and measures to safeguard your network from attack and potentially crippling outages. Look for the flexibility to introduce new applications quickly, easily and cost-effectively onto your network in the future without the need to exit expensive, constraining contracts or undergo costly or disruptive upgrades. 1 Ethernet in the WAN, Cause and Effect, Ovum.

2 2004 Survey of Ethernet Service Providers, Heavy Reading.

The History of Long Island MacArthur Airport’s Florida Service

Introduction:

While Islip’s Long Island MacArthur Airport struggled for identity and purpose during the first three decades of its scheduled service existence, with turboprop commuter flights to northeast destinations and pure-jet, trunk-carrier BAC-111-200s, DC-9-30s, and 727-100s to Albany, Washington-National, and Chicago-O’Hare with the likes of Allegheny/USAir and American, what was needed was a market that would produce consistent demand, putting the regional air field on the map. That market, not filled until the early-1980s, was Florida and it has remained its lifeblood ever since.

First to provide the vital Long Island-Florida link was Northeastern International Airways.

1980’s:

Long aware of the need to connect Long Island’s only commercial airport with both sunshine state retired parents and its beaches with winter tourists, Stephen L. Quinto, born in the Bronx in 1935, but raised on Long Island itself, combined deregulation with bottom basement aircraft leases and took the bold step of injecting Islip with its first nonstop Florida air service, specifically to Ft. Lauderdale, enabling residents to avoid the drive to and congestion of the major New York airports, particularly JFK and La Guardia.

The inaugural equipment, taking from as a single 185-passenger, all-coach configured DC-8-50 previously operated by Evergreen International Airways, departed on February 11, 1982, bound for Ft. Lauderdale. What may have become a luxury decades later, the low, unrestricted fares assessed to fly in it included baggage check-in and in-flight beverages and snacks. While it operated four times per week and once to Orlando, a second aircraft of the same type facilitated increased frequencies and destinations.

Passenger numbers, which affected airport revenues through concession fees, hovered at the 150,000-mark since Northeastern’s almost 11-month debut and pointed to promise for both the carrier and the airport.

Aircraft numbers also translated into additional destinations. In this case, two 128-passneger, former Pan Am 727-100s eventually facilitated seven daily departures to Ft. Lauderdale, Hartford, Miami, Orlando, and St. Petersburg, and the tri-jets were soon joined by a trio of long-range DC-8-62s.

Officials from the Town of Islip, which owned and operated Long Island MacArthur, were, to put it mildly, pleased, since 6,597 air carrier movements and 546,996 passengers were recorded in 1983 due in significant part to Northeastern and Quinto’s vision.

The following year, its February 9, 1984 system timetable bore witness to its success, with three departures to Ft. Lauderdale at 0840, 1600, and 1945; one to Orlando at 0950; two to St. Petersburg at 1000 and 1945; and one to West Palm Beach at 1515.

But success could sometimes be equated with smart, and Quinto’s Northeastern became too enthusiastic in breaking from its traditional narrow body Florida niche by leasing four 314-passenger widebody Airbus A300B2s and routing them, often in competition with incumbent carriers, transcontinentally from Miami to Los Angeles with intermediate stops in New Orleans, among other routes. Larger capacity 727-200s had also been acquired.

Indeed, by the summer of 1984, it operated 16 DC-8s, 727s, and A300s to 17 US cities on 66 daily sectors, recording the highest load factors, of 71.5 percent, of any US airline, enabling it to grow into the 18th largest domestic carrier as measured by revenue passenger miles.

However, passenger numbers at inadequate fares yielded losses and the inability to meet payments, prompting aircraft returns, service discontinuations, and employee layoffs, and forcing its January 3, 1985 bankruptcy filing with $28 million in assets and $48 million in liabilities.

Returning to its roots with a single no-frills Islip-Ft. Lauderdale segment, it progressively re-expanded to Orlando, St. Petersburg, and West Palm Beach. Fares as low as $49.00, however, could not sustain its financial lift, resulting in a four-month service suspension, during which Quinto made several last-ditch efforts to secure aircraft, including the lease of ten Braniff International 727-200s, those of United, and a single MD-82 from Alisarda. Some subservices were operated by All Star Airlines and Emerald Air with DC-9s.

Although it could not return to its former glory and permanently ceased operations in 1986, the 10,750 air carrier movements and 810,751 passengers recorded two years earlier, its last full-year of operations, indicated that the Long Island-Florida market was the airport’s missing link, toward which Northeastern had served as its catalyst, and its legacy would be reflected by every airline that subsequently filled it. And there were many that did.

First to fill the void was Eastern Airlines. Operating the largest aircraft from the MacArthur field, it routed a daily, 199-passenger 757-200 between Boston and Ft. Lauderdale in 1985, which touched down there on both its south- and northbound sectors. Fares were $99.00. While its operation was brief, the next decade awaited with several carriers lining up to serve the route.

1990’s:

Although its own reign would be equally brief, Braniff, the third rendition to carry the Thomas Braniff name, commenced its own Islip-Ft. Lauderdale and -Orlando service in July of 1991 with $69.00 introductory fares. They rose to $119.00 for Monday to Wednesday travel.

Its daily 727-100, operating as Flight 111, departed MacArthur at 0800 and landed in Ft. Lauderdale at 1045. A 30-minute turn-around saw it take off at 1115, now as Flight 112, and touch down again on Long Island soil at 1350. Suffering from the same inadequate cash flow malady as its two previous versions, however, it ceased service in June of the following year.

A temporary, although ultimately permanent, replacement appeared in the guise of Carnival Airlines on July 31.

Created as a single-class, low-fare deregulation carrier, it transported passengers from the northeast to the sunspots of Florida, the Bahamas, and the Caribbean.

Initially experimenting with the market during the winter of 1991 to 1992, it only operated for a two-week period, but did not attract sufficient traffic to support its 737-400s. Yet Braniff’s exit, which left it without competition, screamed of the need for a replacement, since it, along with Northeastern and Eastern, had established a low-fare market. Like all three, it began with a single daily Ft. Lauderdale rotation.

Established by Carnival Cruise Lines’ founder and CEO, Ted Arison, to funnel people to its principle Miami and Ft. Lauderdale cruise embarkation points, it purchased Pacific Interstate Airlines for this purpose, which itself had been created in 1984 to operate charter flights from its Las Vegas base to Los Angeles. Yet its brief history was directionless, with both frequent name and strategy changes.

A year after it planted its West Coast roots, it adopted the Pacific Inter Air designation and in 1987 rebranded itself Bahamas Express, at least shifting toward Carnival’s eventual eastern seaboard territory, with flights from several cities to Freeport. Although Carnival’s 1988 acquisition saw it adopt the title of “Fun Air,” this name never graced an airplane. Instead, its cruise ship passengers were initially transported on Majestic Air 727-100s.

Originally based in Dania Beach, Florida, it subsequently relocated to Ft. Lauderdale, amassing a narrow and widebody fleet of five 737-200s, eight 737-400s, six 727-200s, and six A300B4-200s, employing some 1,300 personnel, and serving Islip, Newark, and New York-JFK in the northeast; Ft. Lauderdale, Miami, Tampa, and West Palm Beach in Florida; Nassau in the Bahamas; Grand Turk in the Turks and Caicos Islands; and Aguadilla, Ponce, and San Juan in the Caribbean.

Its simplified frequent flyer program advised, “Earn a free ticket after only ten round trips on Carnival Air Lines.”

In 1992 it carried just over a million passengers, a 43.9-percent increase, and earned $88.5 million in revenues, a 67.8-percent increase.

Its winter 1993-1994 flight schedule, which became effective on December 16, included two daily MacArthur departures to Ft. Lauderdale-Flight KW 31 at 1245 and Flight KW 35 at 2035; one to Tampa, Flight KW 41 at 1110; and one to West Palm Beach, Flight KW 33 at 1835.

Yet its life would only span a decade. Mid-1990 fuel prices and Carnival Cruise Lines’ overambitious purchase of its Fantasy and Destiny classes of ships during the same period left little additional revenue to keep the carrier in the air, and it appeared an attractive takeover by the reincarnated Pan American Airways, which ultimately purchased it. The torch of Carnival Air Lines’ Long Island MacArthur Airport Florida service was subsequently passed to Pan Am when it fell under its umbrella.

The second carrier to sport its name, whose brand was acquired by an investment group, once again arose from the ashes to the sky in September of 1996, when a single Airbus A300, dubbed “Clipper Fair Wind,” inaugurated service on what was intended as a low-cost, US domestic and Caribbean route network.

Led by Martin Shugrue, Pan Am’s last Vice Chairman and Chief Operating Officer, Pan Am Corporation, its holding company, purchased Carnival the following September. Yet its rapid expansion, placing costs ahead of profits, only caused it, like so many other phoenix-rising airlines, to declare bankruptcy–in this case in February of 1998.

Although the interval was brief, 737-400s wearing the once-proud Pan American World Airways’ blue cheat line and vertical tail adorned globe did alight on Long Island.

Nevertheless, Carnival/Pan Am had considerably developed the Florida market with five daily departures to Orlando, Tampa, West Palm Beach, and Ft. Lauderdale.

Two other carriers had competed with it-AirTran in 1994 and USAir to Orlando in 1995.

As the Boeing 717’s launch customer, AirTran Airways itself traced its origins to predecessor ValuJet, which itself was founded by former Southern Airways and Eastern Airlines personnel to fill the void in Atlanta after the latter’s demise, inaugurating service on October 26, 1993 with two former Delta DC-9-30s between Atlanta and Tampa. Its MD-95 launch order would have made it the youngest airline to claim the title. It had posted a $67 million net profit on $367 million in revenues.

AirTran Airways, a low-fare carrier founded by AirTran Corporation shortly before this time, served 24 eastern and midwestern destinations with 11 737-200s from an Orlando hub.

Merging with ValuJet on November 17, 1997, it retained its name, but adopted ValuJet’s Atlanta hub, operating 227 daily departures to 45 cities with 31 DC-9-30s and the 11 737-200s by the following summer.

Next to enter the Florida fray was Delta Express, a low-fare, limited-service division of Delta Air Lines that was created to operate single-class, 119-passenger 737-200s on leisure routes. Because of its main carrier association, it attracted very high load factors.

Commencing service in 1998, it flew to Orlando and Ft. Lauderdale.

Another Florida service provider was Spirit Airlines, which appeared on the MacArthur ramp with its MD-80s and MD-87s in November of 1998.

Of significant size, stature, and longevity, however, was Southwest Airlines, which became instrumental in sparking Islip growth.

Selected, after a two-year search for a third northeast city to serve after Manchester, New Hampshire, and Providence, Rhode Island, MacArthur joined a list of six potential secondary airports, including Newburgh’s Stewart International, White Plains’ Westchester Country, Connecticut’s Harford and New Haven, Trenton Mercy County, and New Jersey’s Teterboro, the latter of which never fielded commercial operations. Because of the 1.6 million living within the vicinity of Islip, local business health, and its “underserved, overpriced air service,” which, according to then-Southwest Chief Executive Officer, Herb Kelleher, was “ripe for competition,” Long Island MacArthur most filled its requirements.

Lacking sufficient space for the intended operation, however, it was subsequently subjected to a $13 million renovation, which entailed a 62,000-square-foot terminal expansion and an extension of the existing short-term parking lot.

Service inauguration, initially employing two Southwest-dedicated gates, occurred on March 14, 1999 with 12 daily 737-700 departures, including eight to Baltimore, two to Chicago-Midway, one to Nashville, and one to Tampa, all of which provided through or connecting service to 29 other carrier-served destinations. Islip was the 53rd city in its 27th state. Florida, admittedly, was little more than a footnote at this stage, but that would change. And the other two Long Island-sunshine state linking airlines continued to expand during the last two months of the decade.

On November 20, 1999, for example, Spirit Airlines inaugurated nonstop Orlando service, marking its seventh daily one to five Florida cities, while Delta Express followed suit with its own inaugural to Tampa 11 days later on December 1, equally resulting in seven daily MacArthur departures when combined with its four existing ones to Orlando and Ft. Lauderdale.

Three airlines thus offered 15 daily flights to five Florida destinations: seven Delta Express 737-200s to Ft. Lauderdale, Orlando, and Tampa; one Southwest 737-700 to Tampa, and seven Spirit MD-80s to Ft. Lauderdale, Ft. Myers, Orlando, Tampa, and West Palm Beach.

2000’s:

The next decade was categorized by airline exit and entry and schedule and frequency adjustments, but Florida-bound passenger counts continued to climb.

In January of 2000, for instance, Spirit Airlines and Delta Express respectively carried 41,804 and 29,865 passengers, 91- and 44-percent increases over the year-earlier period.

By February, with Southwest’s addition of a second Tampa frequency and the inauguration of an Orlando route, daily Florida departures rose to 17.

By mid-year-specifically August 6-Southwest introduced seven additional flights from Islip, including a third daily one to Nashville and new service to Providence, Jacksonville, and Ft. Lauderdale, resulting in a daily quintet reach with its existing single rotation to Orlando and dual rotations to Tampa.

In the first six months of the year, it carried 447,000 passengers. The comparable Spirit and Delta Express totals, which only entailed Florida routes, were 240,286 and 210,000.

But the pull of a larger New York airport-in this case, La Guardia-changed MacArthur’s triplet of sunshine state serving airlines. Spirit, which already dispatched five daily aircraft to three destinations from the Manhattan-proximity field, entirely relocated there on September 4 in order to take advantage of 20 newly acquired slots, demonstrating deregulation’s underlying freedom of allowing carriers to freely enter and exit a market and exemplifying, at least in this case, that the secondary Long Island facility was used when capacity at a primary New York one was unavailable.

Slot availability became the third reason why a Florida carrier discontinued service there. Aggressive expansion beyond its inceptional, low-fare, competition-devoid niche with widebody aircraft, as had occurred with Northeastern, proved the first, while a merger with a debt-ridden airline, coupled with deviations from its northeast-Florida traffic flow, as had occurred with Carnival, was the second.

Because of Spirit’s autumn exodus, Long Island MacArthur recorded a 6.9-percent passenger decrease in the fourth quarter of 2000.

As 2001 dawned, the promise of Spirit replacement service to cater to unrelenting demand hung in the air and it was delivered on August 5. While a third Southwest departure to Chicago-Midway was introduced, a reduction, from three to two, in Nashville frequencies enabled it to link Long Island with West Palm Beach for the first time in September, resulting in six daily departures to the five Florida cities of Jacksonville, Orlando, Tampa, West Palm Beach, and Ft. Lauderdale, and 23 overall.

Delta Express was the next carrier to exit stage-left. A second Delta Air Lines subsidiary, Song, intended to more effectively compete with low-cost carriers such as JetBlue and Southwest with larger, 199-seat 757-200s, was deemed inappropriate for the Long Island market and was created to replace smaller Delta Express with its 25-strong, 119-passenger 737-200 fleet. As those aircraft were retired, both destinations and frequencies decreased.

In 2001, for instance, it carried 290,000 passengers from Islip, down from its 539,500-peak, but this figure was reduced to a fourth the following year with 77,500. In July of 2003, the Delta division entirely disappeared.

Southwest once again stepped up to the plate. On September 4, 2002, it offered one additional flight to both Orlando and Ft. Lauderdale.

Exercising incumbent clout, it had thus replaced Northeastern, Eastern, Braniff, Carnival, Pan Am, Spirit, and Delta Express to Ft. Lauderdale; Northeastern, Eastern, Braniff, Carnival, Pan Am, AirTran, Spirit, Delta Express, and USAir to Orlando; and Northeastern (St. Petersburg), Carnival, Pan Am, Spirit, and Delta Express to Tampa.

Its triumph, illustrating its strong financial position, was the result of its ability to gain market share released by weaker carriers during challenging economic times, fostering its own growth at the expense of another’s retrenchment.

Southwest’s Florida penetration continued. By March of 2002, it operated eight daily flights, including one to Jacksonville, two to Orlando, two to Tampa, one to West Palm Beach, and two to Ft. Lauderdale. Three and a half years later, with an October 5, 2005 Ft. Myers addition, its daily dispatch had almost doubled: five to Orlando, one to Ft. Myers, three to Tampa, three to West Palm Beach, and three to Ft. Lauderdale for a total of 15..

After another three-year interval, a once-familiar tenet reappeared on the MacArthur tarmac. Citing ease of access and lack of congestion, and incentivized by a 50-percent landing fee reduction during its first year of operation, Spirit Airlines, this time operating next-generation Airbus A319s, re-introduced two daily round trips to Ft. Lauderdale on May 1, 2008 with $7.00 introductory fares. Connections could be made to 23 Caribbean and Latin American destinations through its south Florida hub.

Teresa Rizzuto, who assumed now-retired Al Werner’s Commission for Aviation and Transportation at MacArthur positon, commented at the time, “Mid-sized airports are the fastest growing sector in commercial aviation. And in that group, we’ve had some of the fastest growth. New York City’s airports are maxed out.”

Offering competitive Ft. Lauderdale service with Southwest, Spirit’s two daily flights were projected to generate some $300,000 in annual airport revenues derived from parking fees, car rentals, and other concessions.

Marking Islip’s first regularly scheduled Airbus Industrie operation, the twin-engine A319 touched down on Runway 06 at 0954, taxiing through a dual fire truck created water arch to the gate before redeparting at 1030 as Flight 833 with a high load factor. The three-hour sector saw it touch down in Ft. Lauderdale, Florida’s Venice with its Intracoastal Waterways, at 1330. The second frequency, Flight 837, departed at 1925 and arrived at 2225.

Both were part of Spirit’s more than 200 systemwide flights to 43 destinations. But the weak flicker of Long Island light they provided was doused fever than three months later when escalating fuel prices and declining economic conditions forced their discontinuation on July 31, leaving a fading promise of return, for a third time, when more advantageous circumstances merited them. They never did.

2010’s:

The fourth decade of Long Island MacArthur Airport’s Florida service brought equally unrealized promises, but ultimate hope.

Las Vegas-based Allegiant Air, an ultra-low fare airline serving vacation markets from secondary airports, foresaw the need to connect Long Island with Florida’s west coast-in this case, with another secondary airport, Punta Gorda, which was an alternative to Ft. Myers. Islip was its 99th city that served one of 14 leisure destinations.

Designated Flight 999, the December 20, 2013 inaugural service, occurring on the threshold of the traditional winter period, was operated with a 166-passenger MD-80 and departed at 1920 local time. Fares for the twice weekly round trips were $69.00 one way or $99.00 return.

Although they were discontinued on May 14 of the following year with the intention of being reinstated during the winter 2014-2015 period, they never were.

Elite Airways was the next carrier to taxi up to a MacArthur gate with the intention of serving another secondary Florida city-in this case, Melbourne.

Founded in 2016 and certified as a Part 121 air carrier, it located its headquarters in Portland, Maine, but its maintenance, crew training, sales, and marketing departments took root in its intended destination. Offering, as reflected by its name, a quality travel experience, it operated an all-regional jet fleet, consisting of a single 50-passenger CRJ-100, five 50-passenger CRJ-200s, and five 70-passenger CRJ-700s, offering charter services and transporting college and professional sports teams, executives, and VIPs for the first half-dozen years of its existence before undertaking scheduled flights.

These, in the northeast-to-Florida corridor, included Portland and Myrtle Beach, South Carolina, as well as Melbourne, an identity echoed in its slogan of “Melbourne’s hometown airline.”

Like that of Allegiant Air, it was twice weekly-in this case, on Friday and Sunday-and seasonal, with $149.00 introductory fares, when its inaugural CRJ-700 departed Long Island soil on June 17, 2016.

Seasonal, as had already been demonstrated, could by synonymous with suspicious-of its return. Elite did and did not. The expected January 5 to February 16, 2017 suspension did precede a reappearance, but the second, between April and July of that year, did not.

Instead, it would be 16 months, or not until September 6, 2018, that it once again transported passengers, this time on two weekly, Thursday and Sunday, CRJ-200s to Melbourne, whose rotations entailed an 0800 departure and a 1045 arrival as Flight 7Q 21 and a northbound return at 1600 and alight at 1845 as Flight 7Q 24.

Although it offered Long Island originators one-stop service to Bimini, Bahamas, its low load factors prompted its permanent departure.

Hope came in the form of Denver-based Frontier Airlines in May of 2017 when it announced $39.00 introductory, unbundled fares on its intended Islip-Orlando sector. Part of its latest strategy of doubling its size over the next five years, Islip was one of 21 new destinations it added to the 61 it already served. Contrasted to New York’s La Guardia Airport, from which it already operated, Long Island MacArthur was devoid of road and passenger terminal congestion and had more than adequate airport facilities, inclusive of check-in counters, gates, and ramp space.

Its inaugural flight, operated by an Airbus A320 that landed at 0936 on August 16, 2017 and was greeted with a water curtain, became the outbound F9 1779, which was off the blocks at 1045. The return, F9 1778, was scheduled to land at 2155.

Frontier’s dual-phase Islip expansion entailed inaugural services to Ft. Myers, Miami, New Orleans, Tampa, and West Palm Beach two months later, on October 5, and Atlanta, Chicago, Detroit, and Minneapolis on April 9, 2018, all operated with 150-passenger A319s, 186-passenger A320s, and 230-passenger A321s.

Because of the ultra-low fare nature of its operations, which required high load factors not always achievable at MacArthur, it immediately planned season frequency adjustments, destination substitutions, and altogether eliminations, leaving airport officials and passengers alike to wonder if Frontier would become just another fly-by-night carrier. But this was not necessarily the case.

Toward the Next Decade:

After 22 months of service from Islip, Frontier Airlines carried its one millionth passenger from it in June of 2019, making it the fastest growing of the three current carriers (Southwest and American Eagle included) and the airport itself the fastest growing domestic hub as defined by the Department of Transportation.

In terms of Frontier, it transported 536,000 round trip passengers in 2018 or 33 percent of MacArthur’s 1.6 million total. In terms of the airport itself, its available airline seats, filled or otherwise, escalated from 1.70 million in 2017 to 2.17 million in 2018, itself a 27.6-percent increase, its three tenant airlines having provided more annual capacity than that of any year since 2010.

Although seating marginally increased after American Eagle substituted 50-passenger ERJ-145s for its previous 37-passenger DHC-8-100 turboprops and Southwest replaced some 737-700 departures with larger 737-800 ones, most of these encouraging figures resulted from Frontier’s high-density configured A320 family flights to Florida.

An additional 38 weekly round trips to Ft. Myers, Tampa, and West Palm Beach, scheduled for the winter 2019-2020 season, offered a hopeful indication that Frontier was there to stay.

In December of 2019, or one month before the turn of the next decade, 12 daily departures were offered to five sunshine state destinations by two airlines: one to Ft. Lauderdale, three to Orlando, one to Tampa, and two to West Palm Beach by Southwest; and one each to Ft. Lauderdale, Ft. Myers, Orlando, Tampa, and West Palm Beach by Frontier.

Like a deregulation-created storm of airline entry and exit, frequency and schedule changes, route additions and discontinuations, competition, and fare wars, Long Island MacArthur Airport has weathered four decades of uncertainty and instability. But because of unrelenting demand, nonstop Florida service was always offered by one airline or another, and, in most cases, by several at once.

Passengers express demand through load factors. Carriers respond with flights, destinations, frequencies, and capacity. In terms of Florida, communication never seems to have been lost here.

Roundtable – Shared Services & Outsourcing in Latin America

It might not yet have the same profile as South Asia or Eastern Europe, but Latin America is becoming an increasingly popular destination for organizations looking to establish shared service centers, either serving domestic markets or as part of regional or even global shared services strategies. Furthermore, along with this growth in the captive sector Latin America has become the focus of growing interest on the part of major outsourcing providers whose entry into the market has had knock-on consequences across the board. Throw into this already-volatile mix the current economic instability and it’s easy to see why the region’s activity is making waves across and beyond the shared services and outsourcing space in 2009.

We convened a panel representing practitioners, providers and advisors to take a look at the current level of maturity of the Latin American market and to examine how – and if – the economic malaise affecting much of the rest of the global economy is impacting upon operations in the region.

Attending were:

Laura Bao Castro
CR FSSC Controller
Intel Corporation

Esteban Carril
Director, Latin America Finance Operations
EMC Corporation

Mauro Mezzano
Partner
Vantaz Group Consulting

Ricardo Neves
PwC Global Sourcing Leader for South America
PricewaterhouseCoopers

Q: I think the first question we should look at is: is it right to talk of “Latin American shared services” at all? Latin America is a very big region geographically and in terms of population; it’s got a smaller linguistic diversity than, for example, Europe, but there are still very big differences between, say, Brazil and Costa Rica. To what extent is it actually possible for organizations – captive or BPO – to take a truly regional approach in Latin America? Is it impossible to avoid having significant resources in individual countries?

Ricardo Neves: This is a region different from other regions in the world. If you talk about intra-region services, you’re talking about two major languages which are, in some ways, close to each other; you have also a closeness of overall culture; and usually what you see with multinational or regional operations here is that the larger countries like Brazil, Argentina, Mexico, Chile correspond to a significant size of the operations. Usually if you look at most of the global or multinational companies in the region, they have 50% or even 75% of their operations carried out in two or three countries at most – and then 10, 12 other countries where they do have operations but which make up only 25% or less of their business.

This gives a challenge when setting up a regional center, because there is a scale for the larger countries which is not present in the smaller ones – and what I’ve seen here is a mix between totally centrally run shared services and a lesser local presence in smaller countries to make sure the right scale is achieved and the right support is done at the regional level. There are companies based in Brazil that I’ve seen who have regional shared services – like the brewer AmBev, now connected with InBev and AnhauserBusch, which has a very large regional shared services based in Sao Paulo serving not just operations in the region, but also the firm’s operations in Canada for the Labatt operations. Unilever has also set up an HR shared services – and has just sold its finance shared services to Capgemini in the region.

In sum, from those large operations that I’ve seen, as I said I’ve seen a mix of some centralised services and some small countries with local services combined.

Esteban Carril: We’re serving Argentina, Chile, Peru, Mexico, Colombia, Venezuela, and Brazil. My team is divided into three functional areas, in two countries. One team is working in Sao Paulo, Brazil; the other two functional teams are working here in Argentina. We run accounts payable, accounts receivable, credit and collections, billing, cash applications, payroll, commissions and bonuses. It’s actually not divided linguistically: we found we already had some good skills in Brazil to develop the credit and collections department there, so we decided to leave the existing group providing services there in Brazil, to provide services for the rest of the Latin American countries. We wanted to have three functional groups, but we wanted to try to keep the same skilled people working and we didn’t want to have to move them from one country to another.

Laura Bao Castro: We’re part of a global strategy. We have currently two pretty large financial shared services centers in Intel. One is located in Malaysia and the other one is located here in Costa Rica; the markets that are supported from Costa Rica are Canada, the US, Costa Rica, and Mexico, Colombia, Venezuela, Chile, Argentina and Brazil.

Q: Laura and Esteban, you both come from big global organizations with significant worldwide presence. Do you think it’s still the biggest companies who are setting up shared services in Latin America or are the smaller, or maybe mid-market, organizations also getting involved?

Laura Bao Castro: I think the mid-market is coming up. I was able to go to [a Latin AMerican shared services event in] Chile last year, and also participated in [a] conference in Mexico City, and I was very surprised by the number of Latin American multinationals that have already moved into this journey, or are in the process of doing so – especially in Mexico where I think a lot of companies are looking into it, even having shared services within Mexico itself. The concept is right there; they know they can reduce costs and produce more quality with shared services, and even within Mexico itself companies are developing shared service centers.

Mauro Mezzano: Actually we’ve been seeing this shift since two or three years ago. At the start of the decade many multinationals began establishing shared services in the region, but when I went to conferences in Miami and Orlando there weren’t many Latin American-owned companies present. Then in 2004, 2005, bigger local companies and groups started with the concept. Now smaller and smaller companies are doing it; some of them don’t really implement what we would call shared services but they do centralize and they do take a few concepts from shared service centers, and perhaps redesign a process. The influence of shared services is spreading out through many more companies than before.

Ricardo Neves: I’ve seen an increase in interest: among mid-market companies it’s less regional. What I’ve seen is among large companies, they’ve done a lot of rationalization in each of their countries of operation, and a lot of discussion about regional shared services. What I’ve seen in the mid-market, specifically in Brazil, are still questions on “in-country” shared services if you know what I mean. It’s more making sure that they leverage their local operations, and then as a second step – especially with some of the systems work done – it’s something of a done deal to set up something regional: when you have a regional systems platform, for example.

Q: Let’s shift focus slightly and take a look at the outsourcing market in Latin America. Over the past couple of years we’ve seen the entry into the region of some of the big global players – in particular some of the big Indian providers. What impact has that had on the market – and on firms that are running shared services?

Esteban Carril: In my experience in leading a shared service centre I have been trying to find different ways to do things, and finding vendors who can provide services in a more efficient and economical way than us doing it ourselves. When it comes to the outsourcing sector, I find that in Latin America things are still in development. When it comes to outsourcing it’s important to see how well-organized companies are, and how well they provide services in multiple countries – and I see the challenge for many of the big firms is that they are still working as independent companies in each country, and not really regionally organized in order to provide services to multi-country shared service centers.

I think that’s one of the key points that I’ve been finding. Another key point is that some companies are regionalized but unfortunately they might not have presence in all markets, so that becomes a problem in terms of finding a single regional outsourcing solution to meet our needs.

Laura Bao Castro: About five years ago companies providing outsource service arrived to Costa Rica. Since then, these companies have grown , for example HP has now close to 8,000 employees. While I can’t be specific about their services or regions they serve, these companies look for people speaking Spanish, English, Portuguese, French, Italian – even Chinese. We do not work specifically with an outsource vendor at this moment – but periodically we reassess our current strategy.

Ricardo Neves: One of the features that I’ve noticed, one of the movements in the outsourcing space in Latin America, is that there’s been a lot of currency fluctuation between the dollar and the real, and the dollar and other currencies, and I’ve seen some discussions on contract review – especially for service providers – from both sides: if the clients want to take advantage of that, or even discuss relocation of some work; or if the providers are saying that an increasing cost is related to currency fluctuation putting added pressure on their margins. Definitely currency fluctuations have been one of the biggest topics of discussion in the region.

Q: OK, let’s move on and address the big issue of the moment and, perhaps, of many moments to come: the financial crisis and global economic downturn, and their impact upon shared services and the sourcing sector in the region. Ricardo, what do you see as having been the main changes in the space since the beginning of the main phase of the crisis in October?

Ricardo Neves: What I’ve seen is basically a larger interest in discussing measures to reduce costs. Some of the plans that were lined up to be rolled out in the future have now become more interesting for discussion now; specifically, if they can help reduce costs. The mood, the willingness to do something now has increased. Organizations today want to do something bolder than they were willing to do even six months ago. We used to hear things from the business like “don’t disrupt my growth”, “don’t rock the boat”; now executives are coming and saying “hey, where can we make this boat more nimble? How can we rock the boat but at the same time make us leaner and more prepared?”

I’ve seen this happening in a couple of ways. One is, clients coming to us looking for an overall assessment of cost reduction – which usually includes the theme of shared services. Secondly, we’re also having a lot of discussions on reviewing outsourcing contracts – or even making those contracts broader, in order to ensure they are capturing all the value they could based on the relationship. So overall what I’m seeing is an increased willingness to take bold measures to ensure cost reduction.

Q: Do firms still have money to spend on big implementations, or is it about making changes as cheap as possible?

Ricardo Neves: I think a lot of it is, as you say, to make things as cheap as possible, as fast as possible. But I’ve seen some room to say “if I need to spend that to get that back, then let me hear what you have to say”. Again, I think firms are more willing to do things than they were before – but no-one’s saying they’ve got a big pile of money to reduce their costs. What they need to do is support the investment through the cost reduction itself.

Q: Moving over to the practitioners: Laura and Esteban, how have you been responding to the crisis? Has it had a big impact on your business and are you looking at operations in a different way?

Laura Bao Castro: Intel Corporation has been, over the past 2.5 years, on a restructuring and efficiency program that has resulted in run-rate savings of greater than three billion dollars, CapEx avoidance in excess of one billion dollars, and a reduction of twenty thousand employees from our peak in 2006. We as part of the Corporation are taking actions to contribute in this process. We are doing a big effort to reduce discretionary spending and one example is travel. We are also increasing the number of meetings over the phone and are focusing on productivity and efficiencies so we can do more with the same.

Esteban Carril: Laura mentions the travel and entertainment reduction, and this is clearly an area where we have tried to pay close attention – but as a matter of fact I think that there is no doubt that the economic crisis will bring new opportunities for shared services here in Latin America. I think this might now be a great time to demonstrate that Latin America is a reliable region, especially for global shared services. As we speak my company is looking for new opportunities in emerging markets. Right now we are looking for a shared service center for sales operations here in Latin America; this might be a great opportunity for consolidation and cost efficiency.

Like Laura we have accelerated process improvements and efficiencies, and tightened our controls over expenses; we are also now implementing new tools to give us better visibility of customer usage patterns and people’s performance, in order to drive customers to more efficient services. Those services that may be high-cost and are not being used by our customers are the ones that we would like to either outsource or discontinue. We have also identified other opportunities to expand our scope of services by leveraging our shared services to serve new internal customers, and redirecting our services to areas where they can add more value… [Regarding discretionary spending] As Laura mentioned, we have to do more with the same; in my case I’m trying to engage people from my shared services to lead some of these projects. On other cases we will prioritize those projects where we see there is a clear benefit in costs in the short term.

Mauro Mezzano: What I would say is, working in shared services implementations in 2000, 2001, everybody was looking towards cost reductions. Then moving through 2005, 2006, 2007 and last year – up to October, of course! – I had, as a consultant, many customers who were very focused on growing, so they were very interested in preparing for big growth rates. Now, after October last year, once again I’m getting many calls from people looking for cost reductions, and being very proactive in implementing projects with quick results. I think it’s come back to that, and I think as Esteban was saying, in our region some countries become even more interesting for multinationals to do medium-to-long-term cost reductions because the labor costs are under what they can see in other regions.

Something which is different from the 2000 period, in 2008, 2009, 2010, I think the offshoring/BPO providers are really appearing here in Latin America, and this could be a very interesting moment to potentiate that outsourcing and offshoring business.

Q: Have you been seeing clients are coming to you with the need to do more with the same amount of money, or reduced budgets?

Mauro Mezzano: I’ve been seeing both. Some of the clients that were working here during 2008 in shared services have come to me and said “Sorry, I cannot come anymore with this budget because my company is in a crisis”; but at the same time I’ve been having new calls from customers who weren’t working with us previously, but who really want to work with us because they’ve got a new approach to shared services. The market is still very open and diverse, but I think it’s going to narrow down into cost reductions during March and onwards.

Q: Obviously globally over the last few years one very big question has been how to attract and retain talent. Recently however as the economy has worsened there has been the feeling in other parts of the world that talent acquisition and retention isn’t going to be such an issue over the foreseeable future, because people aren’t going to be willing to move out of secure jobs. Is this mirrored in what’s happening in Latin America right now?

Laura Bao Castro: You know, Costa Rica is behaving very differently from other markets, specifically in the service industry. This year is no different; and the projection is 3,500 new jobs, so we actually have a pretty hot market. Talent retention is critical for our success.

In terms of our sourcing strategy, we work very closely with the technical schools – particularly the accounting technical schools – and the public university that provides accounting professionals. We provide internship programs for technical school graduates and a student program for university students: we bring those people while they’re still studying to work part-time for us – some of them in an internship mode, some as what we call “student workers” – and by the time they graduate, and if we feel that they have delivered to our expectations – we offer them full-time jobs. That has been a very successful strategy that we implemented about six years ago, and we have a conversion rate of 95%.

In addition we provide English classes to those employees to ensure that by the time they get converted they have reached the level of English that we require to do our jobs, because we offer services to the North American market and a lot of our jobs will require a certain level of English capability. So that’s a sourcing strategy that I think has proven to be very successful for us, and it gives a continuous pipeline of new employees coming in.

In the area of talent retention, Intel is a company that believes in flexibility and we do provide a lot of flexibility to our employees. I don’t know if you’re familiar with the term “Generation Y” for people born after 1980; 80% of the population that I manage are Generation Y, young people with very different mentalities – they have a different chip in their minds from mine, for example – and they value flexibility very much, so we have programs like what we call “telecommuting” where they’re able to work from home up to two days a week. They have different start and ending times – some of these employee are going to school so they need flexibility to continue their studies – we have found through the surveys and questionnaires that flexibility is one of the main reasons why they choose to stay with us. We provide portable computers to all our employees which they can take home – and this generation are technology-growers, of course, so they love that.

These two things have really been proven to help us retain employees – in addition to the career development of course. One of the beauties of shared services is that you manage different functions, you manage different groups, and if someone wants to start a career they will have the opportunity to move into these different groups and become a rounded professional.

Q: Esteban, how are you finding the employment market – and has there been a shift in your acquisition and retention strategies as a result of the economic crisis?

Esteban Carril: In our case – and I would say that this applies for every other shared services in Latin America – turnover rate is one of the most challenging areas for shared services. We have been doing several things to retain our talent. We have been cross training – so, for example, when an employee comes to work in one department we offer them some exposure to other areas of operations, to other processes, so they can learn other activities and processes which as Laura pointed out adds more value to their own career.

This year we are also offering a new service inside shared services which is that we loan employees to other areas, so for example if a business area needs an extra person because someone goes on maternity leave, or even leaves the company, we provide them with people as a service. If our people are trained in other systems and other processes we can add value by moving those people to other areas where they can spend two or three months. We’re offering that as another service from our shared service centre.

Another area is flexible time. The nature of our business is, 70% of our business takes place within the last three weeks of the quarter so we really need to be flexible with our people. We let them do some telecommuting, we offer flexible time, because – as Laura pointed out – you should give them some kind of freedom inside the company. We provide English and Portuguese classes as well.

The key here is that we’ve signed some agreements with universities through which we bring new people on board; we usually train them in those areas which are more transactional, so they gain experience – and then we move them around, not only inside shared services but also outside, offering them now career opportunities in the business, in different countries, in our local finance team. So we offer them several routes to success inside our company.

Q: Are you thinking that turnover is still going to be an issue for you in a worsening economy and a consequently tightening job market?

Esteban Carril: I think right now, there are several companies that are letting people go, and I think the labor market will be better for us. However, inflation is still a problem – particularly in Argentina – so when it comes to retention we would expect to be reactive in terms of salary adjustments, to ensure competitive salaries. So in general terms I think the market’s going to be quieter; however, we should always keep an eye on the need for salary adjustments – especially with the inflation fluctuations we may see in coming years.

Q: Ricardo, what’s your take on the job market and the pressures on talent management at the moment? Have things changed as a result of October’s events?

Ricardo Neves: Some of the clients I support have said the pressure on them has increased to deliver a good service at a lower cost, and the best way to do that is with good people. So I think the search for good people, and the importance of retaining them, and working the talent market, is still a big challenge as we go into crisis mode. Even though when you think about it there might be a little more availability of resources on the market, when you look at the example we’ve heard of Costa Rica – or even Brazil, where companies are going more into the interior of the country and looking at other cities inside Brazil to be able to retain a good flow of people coming out of universities, and have been growing very fast throughout the country – shared services and new organizations coming in are going after talent very fast, wherever it is; so I don’t believe it will be an easier time managing talent for shared services during the crisis we have now.

Q: And have you noticed – or are you forecasting – a drop in attrition rates over the next few months?

Ricardo Neves: Not at this point; considering what I’ve both from clients and from providers with whom I’ve been working closely I have not seen any significant change in those rates at this point, in Brazil particularly.

Q: And will the increased operation of big BPO providers have an impact here?

Ricardo Neves: I think so. I have not seen a slowdown in any way in the growth of the shared service centers either from providers or companies going after it. So even if there is any increase in supply I don’t think demand will decrease; actually, I think demand will increase from both existing shared services and from new companies coming into the market. I don’t foresee an easier time on turnover rates or talent retention.

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7 Tips To Help You Choose The Best Clipping Path Service Provider

If you are a fashion designer, retailer, online seller, or photographer, editing images may be quite important for you. It is important to remove unwanted objects from photos to make them look natural. Besides, you may need to adjust the lighting. And all of these post-production tasks may consume a lot of time. If you don’t have that much time, you can hire the services of a good clipping path service provider. In this article, we are going to talk about how you can choose the right service provider.

1. Quality service

Although saving money is a good habit, you cannot compromise on the quality of the service. An easy way to choose the best service is to compare and analyze their image editing skills and techniques. Besides, you can also make your decision based on the samples provided by the seller. Finally, you can ask for a free trial.

2. Affordable Service Charges

Secondly, you may want to look for an affordable service provider. During the negotiation, you may want to make sure that the final price includes the services you require. Respecting your budget limits is of paramount importance for every business.

3. Delivery Time

For any image editing service, turnaround time is of paramount importance. Reputable service providers meet their deadlines and provide updates on a regular basis. Therefore, before you send an assignment, make sure to discuss the delivery time.

4. Express Delivery

In some cases, you may have some urgent assignments to get done. Therefore, you may want to look for a provider that offers faster delivery. Although it may cost you a bit more money, it is worth it.

5. List Of Services

In the beginning, you can get started with fundamental image editing services, such as image masking and clipping path. With the passage of time, you may need advanced services, such as photo retouching, drop shadow, and ghost mannequin, just to name a few. Therefore, you may want to find out if the company you want to hire offers these services.

6. Communication

Communication is another important factor that you may want to consider when making a choice. After all, you will have to remain in touch with the service provider throughout the project. The service provider must be able to communicate effectively. Plus, they should be available 24/7 to answer your queries. They must be reachable through phone and email.

7. Reliability

For any business, trust is extremely important. Therefore, the service you are going to hire must be reliable as far as providing services are concerned. After all, no business can survive without providing services on time.

Long story short, you may want to follow these tips if you are looking to hire the best clipping path service.

Enterprise Service Bus Features and Advantages

An Enterprise Service Bus (ESB) is a flexible connectivity infrastructure for integrating applications and services.

The Enterprise Service Bus(ESB) can help you achieve the goal of SOA. It is flexible connectivity infrastructure for integrating applications and services. It is at the heart of an SOA powering it by reducing the number, size, and complexity of interfaces.

An ESB powers your SOA by reducing the size, number and complexity of interface.

An ESB will performs the following things between requestor and service

1) ROUTING the messages between services
2) CONVERTING the transport protocols between requestor and service
3) TRANSFORMING the message formats between requestor and service
4) HANDLING the business events from disparate sources

The Enterprise Service Bus allows us focus on our core business.

The following Advantages

1) Add new services faster
2) Change services with minimal impact to existing services

The following two requirements for an Enterprise Service BUS

a) If all your applications confirm to Web Service standards then all you may require is an ESB focused on standards based service integration.
b) If not all your applications conform to the web services standards then you may require a more advanced ESB focused on the integration of services with existing non-services assets.

The four points i would like to highlight the products

1) Provides Web services connectivity, JMS Messaging and service oriented integration, WebSphere Enterprise Service Bus delivers smart integration to connect your assets through service oriented interface.
2) Ease of use. The tools are easy to use and require minimal programming skills. You don’t have to know Java in order to use this tool it is integrated, interactive and provides a visual development experience. Mediation is simply the term used to describe the in-flight processing of information. It is simple to develop, build, test, deploy and manage services components. Easy to understand samples are also included.
3) Improved time to value. This cost effective solution has support for over hundreds of ISV solution such as SAP, Siebel, peoplesoft, JD Edwards, and Oracle. Save time and development costs by utilizing prebuilt mediations such as XML transformation, content based routing and message logging.
4) Seamless integration with the Websphere platform-unlike some of our competition, we have the ability to easily move up the stack to solve more complex business problems with process server, which is built on WebSphere ESB. So you can easily extend to leverage WebSphere Process Server as needs dictate. WebSphere Enterprise Service Bus is built on the WebSphere Application Server; A world -class J2EE foundation providing industry -leading levels of availability, scalability and performance.

Provides Web Services connectivity, messaging and service oriented integration

– Improves flexibility through the adaption of service oriented interfaces
– Gain support for a variety of messaging protocols including JMS 1.1 to exploit a variety of transports and interoperate with the WebSphere family
– Utilize a broad range of interaction models to meet your requirements
– Leverage advanced Web service support to incorporate leading edge capabilities
– Take advantage of a comprehensive clients package to extend your environment
– Leverage UDDI 3.0 for a secure description and description and discovery of web services in an open standards based way.
– reduce sharing by using WebSphere ESB to handle integration logic
– Customized routing -Transport/protocol specific routing and content based routing
– Protocol conversation between a variety of protocols: HTTP, IIOP, JMS
– Format transformation between standards: XML, SOAP, JMS messages and when used with adapters, many more
– Supplied mediation function for database interaction
– Allow the flow of business events and add needed intelligence to that flow
– Leverage WebSphere Adapters for capture and dissemination of business events

Delivering an Enterprise Service Bus that’s easy to use
Websphere Integration Developer provides an integrated, interactive and visual development environment for rapid development of integration logic, simple to develop, build, test, deploy and manage services components. Get up and running quickly with comprehensive documentation, easy to understand samples. Provides a simplified and visual development experience for standards based artifacts like XML schema, WSDL, XSLT, etc. Supports the declaration of services and connectivity through a visual composition model. Allows easy orchestration of mediation functions with first-class support for intelligent message routing, enrichment and transformation. Offers a seamless integrated tooling approach to connect between service-oriented and messaging-oriented services. True role-based support provides a simplified administration experience.

WebSphere ESB is designed to be easy to use from both a tools and runtime perspective. Websphere Integration Developer, the tools that works with WebSphere ESB, is built for an integration developer-someone who understands IT systems and architectures but who is not a Java developer.

Both WESB and WID are designed to help customers get up and running quickly and easily, with comprehensive out of the box documentation and a simplified and visual development environment. A visual composition model allows easy orchestration of mediation functions. The fact that tool is role based makes administration much easier.

WebSphere ESB Improving time to value.

Gain a cost effective solution for services integration Leverage your SOA IT investments by quickly building a flexible integration infrastructure to extend the value of your existing investments, regardless of vendor. Modular approach supports ability to start small and grow as fast as the business requires. Extensive business and IT standards support facilities greater interoperability & portability. Utilize first class support for hundreds of ISV solutions. Extensive WebSphere Adapter support, including new JCA-based adapters. Support for numerous ISVs within the WebSphere Platform partner ecosystem.

Save time and development costs by utilizing pre-built mediation functions. Mediations operate in messages/events as they are passed between service requesters and service providers. Operate on both One-Way and Request-Response interactions. Pre-built mediation functions allow mediations to be visually composed and include XML transformation, message logging, message routing, and database lookup, Customers can augment the function provided by the supplied primitives by programming their own ‘custom primitives’. Dynamically re-configure to meet changing business needs. WebSphere ESB runtime provides the administrator with the ability to reconfigure service interactions. Avoid system downtime by adding or replacing integration logic dynamically.

WebSphere ESB Seamless integration with the WebSphere platform

Leverages WebSphere qualities of service. Inherits the WebSphere runtime for world class scalability, clustering, and fail-over. Utilizes the common WebSphere Administrative Console to enable system management across WebSphere Application Server. WebSphere ESB, and WebSphere Process Server. Addresses end-to-end security requirements on authentication, resource access control, data integrity, confidentiality, privacy, and secure interoperability.

Easily extends to leverage WebSphere Platform as needs dictate. Customers with the right skills can take full advantage of the underlying capabilities of WebSphere Application Server Network Deployment. Extend your existing WebSphere MQ messaging foundation to integrate new environments in an open, standards-based way. Common tooling and administration means the move from WebSphere ESB to WebSphere Process Server is painless.

Integrates with IBM Tivoli security, directory, and systems management offerings. Includes Tivoli Access Manager, for optional use, to deliver a secure, unified and personalized experience that will help manage growth and complexity. Integrates with IBM Tivoli Composite Application Manager for SOA for added monitoring and management capabilities

Service Oriented Architecture: Triangle of Truth

The triangle of truth is a simple way to look at the important architectural constructs that make up a service oriented architecture. As you begin thinking about what is needed to build a service oriented architecture, the triad that makes up the triangle of truth quickly emerges. Specifically, there needs to be a way to represent the data that is exchanged between services, there must be a mechanism for invoking services, and there should be a way to compose services into a larger integrated business application.

Today there are many different programming models for supporting each construct in the triangle of truth. This situation presents developers with the challenge of not only needing to solve a particular business problem, but they are also faced with choosing and understanding the appropriate implementation technology. One of the important goals of the WebSphere Process Server v6 SOA solution is to mitigate these complexities by converging the various programming models used for implementing service oriented business applications into a simplified programming model.

This presentation focuses specifically on the Service Component Architecture (SCA) introduced in WebSphere Process Server v6 as the service oriented component model for defining and invoking business services. In addition to the important role SCA plays in providing an invocation model for the SOA solution in WebSphere Process Server v6, you will also learn in this presentation that it also plays a role in composing business services into composite business applications.

SCA Basics:

Whenever you are beginning to learn a new technology or programming model, it is often useful to look at the pieces that compose the overall architecture of that technology. This slide lists some of the important features of SCA that you should be aware of as you begin learning about SCA.

First, the Service Component Definition Language(SCDL) provides the basis of SCA. SCDL is an XML based definition language, and is used to define all SCA artifacts in a project. The WebSphere Integration Developer V6.0 tools support of SCA takes care of generating the appropriate SCDL definitions when building an SCA-based applications, however a basic familiarity with SCDL can certainly help understanding the overall architecture and debugging applications.

The next important part of SCA to understand is different is the different types of artifacts that can be defined using SCDL. The various artifact types that exists in SCA were designed to support some of the basic requirements of this service oriented architecture. To start, the most basic building block in SCA is the service component definition. Once a service component is defined, it is important to have a mechanism for making that service available to clients inside and outside of the current.

Service Component Overview:

This is a common concept which will be familiar to those from a WPS background. SCA was first introduced in the concept of WPS V6 as an architecture and implementation to support the enablement of a Service Oriented Architecture approach to process Integration. SCA underpins the programming model in WPS and is also fundamental to WESB. Everything is a Service And a Component And has an interface which describes it.

SCA separates component interface from their implementation. The implementation of an SCA component may change without affecting the interface. It is possible for example, to replace the implementation of component, say with a Web Service invocation rather than invocation through an adapter. We invoke components, so one can regard SCA as perhaps as invocation model as much as anything.

This situation is kind of represented on this next foil – we can see that a Service Component provides an invocable Service Instance. In order to provide that, it must have an Implementation, an Interface, and Configuration properties. A critical point here is that the Implementation can be any of the programming constructs that we provide in WPS. So it could be a BSM, BPEL Process, Map, Adapter, POJO.

Interface can be of two types-Interfaces that this module exposes for consumption by others, and Interfaces exposed by other modules that we want to consume. This latter type of interface consumption is called a reference. We should also note that the interface can be described using either Java interfaces or WSDL. But if there are multiple interfaces specified then you cannot mix WSDL with Java. For reference type you do not have that restriction.

Service Module: Overview

Here we have got our Service Module, which we know is the SCA unit of packaging and deployment. We can see that this particular Module contains 2 Service Components- each containing an implementation, Interface and references where appropriate. This second Service Component does not contain a reference because it does not invoke any external Service.

Now in the Service Module we can see that we have a number of additional things, which are related to incoming and outgoing Interfaces at the Module Level. Remember that an Interface and reference describe incoming and outgoing interface at the Service Component level. Well we have a similar notation at the Service Module level, referred to as imports, Exports and Standalone references.

An Export is how the Service Module exposes its interface to the outside world for consumption by another Service Component within a different Service Module. A Standalone Reference is how the Service Module exposes its interfaces for consumption using a non-SCA client invocation mechanism. Clients using this invocation mode are either Other SCA components within the same SCA module, or non SCA clients such as a JSP. An Import is how a Service Component invokes an external Service. The relationship or potential invocation path between these artefacts is represented by wires.

SCA Basics and terminology

SCA is a runtime that facilitates the abstraction of a component’s implementation
SCA separates infrastructure from Business Logic
Provide a programming model for invocation
Support a variety of the invocation models
Provide the runtime infrastructure suited for application consumption

Universal model for Business Services, Publish or operate on business data. Service Data Objects (SDO) provides the universal model for “business data”. Components run on a SCA enabled run-time, Java interfaces (j-typed), WSDL port types9w-typed). Arguments and return are described using SDO’s, Java classes, or simple Java types. SCA focus on business purpose.

Service data Objects and Business Objects
As introduced already in the triangle of truth, business objects play an important role in the WebSphere Process Server v6 SOA solution as the data abstraction. This is indeed an important goal of the business object framework, but in addition to this, the business object framework also provides some other important functions. Specifically, the business object framework was developed to provide functional capabilities similar to the business object construct found in WebSphere Interchange Server(ICS). The set of capabilities that have been adopted to support ICS style business object functions, are needed to provide a way to help developers mitigate the complexities related to developing applications that work with federated and disparate business data as is commonly the case with integrated enterprise applications.

SCA provides the ability for services to be called synchronously or asynchronously.
An asynchronous invocation model is also provided with the following semantics
One Way -Fire and Forget
Deferred Response-In this model the client makes a request, but does not bloc, but at some later point in time goes back and asks for the response. In this form of invocation takes a second parameter which specifies whether the invocation behaves when the response is not immediately available. (invoke Async() returns a ticket that identifies the invocation. invokeResponse() passes a ticket back in that is used to get the response that corresponds to the invocation identified by the ticket)

The semantics of the synchronous vs asynchronous invocations differ as summarized here. So synchronous invocations are pass-by-reference, whereas asynchronous invocations are pass-by-value. Note also that if you want type-safety you’ve got to be using Java interfaces definitions. However there is tooling to allow you to generate Java interfaces from WSDL definitions. Synchronous calls outside the JVM are pass-by-value invocations. We could use an extra column in this chart.

Enterprises service bus reference architecture
We are going to introduce all these elements later in the presentation. Lets look at the scope of WSEB and all the things the customer gets in the box. The product is named ESB not Enterprise Service Bus. The naming reflects the industry mindset. It allows an ESB to be built which brokers service requests and responses. It is primarily a Web Services focused platform specifically to support the service interactions that take place within a SOA. ESB is built on AS (ND) and therefore fundamentally a J2EE platform. It leverages and shares technology introduced with WAS V6 and WPS. Use of the additional products and capabilities shown ( for example, TAM) are optional.

Introduces the concept of “mediations” as a term for message (broker) processing. Service invocations are Service messages within the ESB. A new version of WID is released which supports the development of mediation flows. The ESB supports mediation flows and primitives with which to build mediation processing. Support for basic ESB processing is supplied. WESB leverages the messaging support delivered in WAS V6 (SIB) using the JMS 1.1 provider and the MQLink to interoperate with an MQ QM. The WS support again leverages base AS support SOAP/HTTP and SOAP/JMS as protocols and the various WS-* capability. SCA (define) is the programming model which is the technology first surfaced, and shared with WPS. It is the foundation for the composition of mediation and process logic. SDO (define) allows for the logical representation of business data. The SMO (define) is an extension of an SDO message which is the service message which flows through the ESB. XMS clients (C++ and .Net). JAX/RPC client invocations supported via WS C/C++ client. Connectivity to other endpoints is achieved using the WBI Adapters (either the original adapters or the variants which support JCA 1.5).

In a loosely coupled SOA architecture, Service requestors and providers connect with each other through an Enterprise Service Bus. Loosely coupled Services provide more flexibility and ability to introduce mediations and QOS that can then be applied uniformly to the services connecting through the bus. Mediation services intercept and modify messages that are passed between existing services(providers) and clients (requesters) that want to use those services. Mediation services are implemented using mediation modules that contain mediations flows. WebSphere ESB and Process Server provide the ESB capability through the use of Mediation Module deployed in the server. Mediation Module uses the same Service component architecture (SCA) introduced in WebSphere Integration Developer V6.0.0 and WebSphere Process Server V6.0.0

ESB concepts: Medition Module

WebSphere ESB and Process Server introduces a new type of module, called Mediation Module, that intercept and modify messages between service requester and the service provider. Mediation module provides the ESB functions of converting protocols, routing, transformation and other custom processing on the messages. Mediation Module is the unit of deployment and runs within the WebSphere ESB or Process Server. Interactions with external service requesters and providers defined by imports and exports, whose interfaces is defined using WSDL.

A new type of module is introduced in WebSphere ESB and Process Server, called Mediation Module, provides the ESB functionality by allowing the processing the messages between service requestors and providers. This enables loosely coupled connectivity and mediation services between different service requestors and provides connecting through the bus. The Mediation module allows converting protocols, routing, transformation and other custom processing on the messages, tpically needed in an ESB environment. The WebSphere Process Server supports business modules used for business processing and the new mediation modules, whereas WebSphere ESB supports mediation modules. Service requestors interact with the mediation module in the bus via the module exports, and the module interacts with the service providers via the module imports. These export and import interfaces are defined using the WSDL.

Mediation Module: Import and Export bindings

Different kinds of requester and provider types of interactions are made available via different bindings for the imports and exports. WebSphere ESB provides support for JMS bindings- JMS 1.1 provided by WebSphere platform Messaging can exploit a variety of transports TCP/IP, SSL, HTTP(S). Allows interaction with the WebSphere family WAS, WebSphere MQ, WebSphere Message Broker. Web Services binding SOAP/ HTTP, SOAP/JMS, WSDL 1.1, Service Registry -UDDI 3.0, WS-Security, WS-Automatic Transactions. WebSphere Adapter bindings JCA Adapters -SAP, PeopleSoft, Sibel, Files, JDBC, WBI Adapters for all the rest. Built-in SCA (Default) binding Used for module to module communication-supports both synschronous and asynchronous communication. WebSphere ESB supports update this binding via the admin console allowing module to module connectivity to be changed.

Interactions with external service requesters and providers are defined by imports and exports. Import/export interfaces are defined using the Web Services Description Language (WSDL), which may contain several service operations. Different kinds of requester and provider are made available via different bindings for the imports and exports. WebSphere ESB and Process Server v6.0.1 supports JMS binding, WebServices bindings, WebSphere Adapter bindings and the default built-in SCA binding. These different bindings allows maximum flexibility for the requestors and providers to use the protocol of their choice. Use of different bindings permits easy transformation of protocols between the service requestors and providers. The import and Export bindings are same as used for Business modules in WebSphere Process Server.

Mediation flow component and Request-Response interaction

Mediation module contains a new type of SCA component, called Mediation Flow Component. Mediation Flow Components act as ‘service intermediaries’ to pass a 9potentially modified) request from a service requester to a service provider, pass a (potentially modified) response from a service provider to a service requester. Processing of requests is separated from processing of responses in the mediation flow component. Request processing within a mediation flow component can send a response back to the requester without necessarily needing to contact a service provider.

Mediation Module contain a new SCA component called Mediation flow component which acts as a service intermediary for the processing of the message. The Mediation flow component provides a standard way of processing the message independent of the binding protocol used by the service requestors or providers. It supports one way model where no response is expected or 2 way request and response model. It supports synchronous or asynchronous invocation model, similar to other SCA components. Within the Mediation flow component, the processing of the request message is performed separately from the response message. This allows different processing of the request message is performed separately from the response message. This allows different processing to occur on the request and the response side by having different mediation primitives on the request and response flows.

The mediation application developer may choose to create and handle the response within the mediation flow component without actually calling the service provider. The Mediation Module developer will need to construct the response message based on the interface definition of the module export.

Mediation Module: Contents
Mediation Module can have the following: Exports, defined using WSDL that expose the mediation module to external service requesters. Imports, defined using WSDL, that identify external service providers and their interfaces. A new type of SCA component called, Mediation flow component- this provides the mediation function on the messages between these services requestors and the providers. In cases where the only need is to transform the message from one interaction protocol to another, there may not be any need for a mediation flow component in the module. Optional SCA Java components-this is used in conjunction with the custom mediation primitive or when there is a need to use Java interface.

Mediation module contain exports, imports, a new type of SCA component called the Mediation flow component and optionally other SCA components of type. Mediation Imports are like normal SCA imports with all the supported bindings, namely, Default SCA, JMS, Web Services. Imports are the entry points into the Bus. Similarly, Mediation Exports are like normal SCA exports with all the supported bindings, namely Default SCA, JMS, Web Services. Exports are the exit point from the Bus. A new type of SCA component, called the Mediation Flow component, contains logic of how the message is processed between the input and output of the flow. Functions like message routing, transformation, augmentation, logging or any other custom processing are performed on the message within the Mediation Flow component. Lastly, the module can optionally contain SCA Java components, used to implement custom mediation primitive. More on this later in the presentation.

Mediation Flow editior is used provide the implementation of the mediation components that are used to process the message flow as it flows from the service requestor to the provider through the Enterprise Service bus. The editor contains 3 sections. The top one is the Operation Mediation section used to define the mapping of the source input operation to one or more target output operation. The map is created by visually wiring the input operation to the appropriate target out operation. Once the connection is made between a source and target operation, the middle section called the Mediation Flow section is used to create the message processing flow. Mediation Primitives are added here and wired to create the message flow between input and output operation. The bottom most section of the editor is the mediation properties section to view or modify the properties of the connection, primitives that are highlighted in the mediation flow section.

Mediation flow component design methodologies.
Two types of design methodology

Top- down design
Developer creates with Mediation Flow component with the required interfaces and references. Developers generates an implement (empty) for the Flow component This will open the Mediation Flow component editor. Using the Mediation Flow Editor, the developer create mappings from a source operation to one or more target operations.

Bottom-up design
User starts with actual implementation of the flow component does not yet have the Mediation Flow component. The mediation flow component is then used to assemble the module. This approach can be used to modify any existing design and then merging the implementation of the flow component.

WebSphere ESB provides several built-in mediation primitives and allows the capability of adding your own custom mediation for cases that are note covered by the built-in mediation primitives. Following built-in mediation primitives are provided.

1. Message Logger used to log/store message information to a database.

2. Message Filter to filter messages selectively forwarding them on to output terminals, based on simple condition expression.

3. Database lookup to access information in a database and insert it in the message. The mediation primitive is supplied with key id to look for and where in the message is the value of the key. Using the two information, the value of the specified column for the matching key is inserted in the specified location within the message.

4.XSL Transformation mediation primitive is used to transform messages using XSL transformation. This is mainly used when the target provider has a different interface than the incoming message interface. Using the mapping within the XSLT, one can map the input values to the appropriate output fields.

5. Stop mediation primitive used to stop the flow execution.

6. Fail mediation primitive used for error conditions, where the flow execution is stopped and an exception is generated.

Custom mediation primitive is used to do message processing that is not covered by other ediation primitives by executing custom logic. Custom Mediation Primitive calls a SCA Java component that you create or provide. The SCA Java component must be within the same Mediation module.