Deciphering Dedicated Internet Access Pricing: A Complete Guide

by Waseem Hassan

What is Dedicated Internet Access (DIA)?

Dedicated Internet Access (DIA) is a type of internet service that provides a direct, private connection to the internet for a specific user or organisation. Unlike shared internet services, such as broadband connections that may experience congestion and fluctuations in speed due to shared usage, DIA offers a consistent and reliable internet connection that is reserved solely for the customer. 

Here are the key features and significance of Dedicated Internet Access: 

1. Dedicated Connection: DIA provides a connection that is solely for the use of the customer, ensuring that bandwidth is not shared with other users. 
2. Symmetric Bandwidth: DIA typically offers symmetric bandwidth, meaning the upload and download speeds are equal, which is beneficial for activities such as video conferencing and cloud computing. 
3. Scalability: DIA can be scaled to meet the growing needs of a business. Organisations can choose different levels of bandwidth based on their requirements. 
4. Service Level Agreements (SLAs): DIA providers usually offer robust SLAs, guaranteeing specific levels of uptime, speed, and reliability. 
5. Consistent Performance: Because it is a dedicated service, DIA offers consistent performance without the variability often associated with shared connections. 
6. Security: DIA connections are generally more secure because they are private and can include additional security measures such as encryption and network monitoring. 

Importance of Reliable and Dedicated Internet Connectivity for Businesses 

1. Productivity: Reliable internet access is essential for business productivity, particularly in today's digital world where cloud computing, online collaboration, and virtual meetings are the norm. 
2. Business Continuity: DIA ensures uninterrupted business operations and continuity, especially in industries that rely heavily on real-time data and online transactions. 
3. Customer Satisfaction: In industries such as e-commerce and customer service, having a reliable internet connection is vital for maintaining customer satisfaction and trust. 
4. Scalability and Growth: As businesses grow, their internet bandwidth requirements also change. DIA offers scalable and flexible solutions that can grow with the business. 
5. Secure and Compliant: Dedicated internet connections can provide higher levels of security, which is crucial for businesses handling sensitive data and needing to comply with regulations.
6. Competitive Advantage: Having a fast and reliable internet connection can give businesses a competitive edge, enabling them to operate more efficiently and serve customers better. 

Overall, Dedicated Internet Access is an essential service for businesses that depend on high-speed, reliable, and secure internet connectivity for their operations. 

Orixcom Managed Dedicated Internet Access Pricing Models

1. Flat-Rate Pricing

With flat-rate pricing, customers pay a fixed monthly fee for a specified level of bandwidth, regardless of total data transferred. This model provides predictability and simplicity in billing, making it easier for businesses to budget their internet expenses. Orixcom's pricing model aligns with flat-rate pricing. Customers are charged a fixed monthly fee based on the desired bandwidth, with no additional charges for usage. For example, if a customer orders 100mbps bandwidth, they will pay a consistent, predetermined amount each month, regardless of how much data they transmit. 

2. Usage-Based Pricing

In contrast, usage-based pricing charges customers based on the amount of data they transmit or the level of bandwidth they consume. This model is more flexible and can be advantageous for businesses with fluctuating internet usage patterns. However, it can also lead to unpredictable costs, especially during periods of high demand. While Orixcom does not operate on a pure usage-based pricing model, they do offer a burst option for customers. This means that customers have the flexibility to exceed their contracted bandwidth up to a specified limit, with additional usage charges incurred only for the excess bandwidth consumed beyond the contracted amount, typically based on the 95th percentile industry standard.  

Factors Impacting Dedicated Internet Access Pricing

1. Bandwidth Requirement

• Higher bandwidth (faster speeds) typically commands higher prices.
• Symmetric bandwidth (equal upload and download speeds) can also be more expensive due to the additional infrastructure and capabilities required. 

2. Geographic Location and Market Competition 

• Location: DIA costs can vary significantly based on location. Urban areas often have more options and better infrastructure, leading to more competitive pricing. In rural or remote areas, costs may be higher due to limited provider options and the need for longer distances or unique infrastructure. 
• Market Competition: Greater competition among service providers in a given area can drive prices down and improve service quality. Conversely, limited competition can lead to higher prices and less flexibility. 

3. Service Level Agreements (SLAs)

• SLAs define the guaranteed levels of service, including uptime, latency, packet loss, and speed. Providers offering more stringent SLAs (e.g., higher guaranteed uptime) may charge higher prices. 
• The penalties for not meeting SLA targets (e.g., service credits) and the frequency of maintenance can also impact pricing. 

4. Additional Fees and Surcharges

• Installation and Setup Fees: Some providers may charge an upfront fee for installation, setup, or equipment. 
• Maintenance Fees: Some providers may charge maintenance fees for upkeep and upgrades to the infrastructure. 
• Equipment Rental Fees: If the provider supplies equipment such as modems or routers, there may be rental fees associated with this. 
• Usage-based Costs: Some providers may offer DIA services based on usage, with additional charges for exceeding allocated data or bandwidth. 

Determining Your Business's Dedicated Internet Access Requirements 

Determining your business's Dedicated Internet Access (DIA) requirements involves assessing bandwidth needs, scalability requirements, budget constraints, and cost-effectiveness. Here's how you can approach it: 

1. Assessing Bandwidth Needs 

1. Current Usage: Start by analysing your current internet usage patterns, including the number of users, types of applications used, and data transfer requirements. 
2. Future Growth: Consider your business's growth projections and how they might impact internet usage. Factor in any upcoming projects or initiatives that could increase bandwidth demand. 
3. Symmetric vs. Asymmetric Bandwidth: Determine whether your business requires symmetric (equal upload and download speeds) or asymmetric bandwidth based on your usage patterns and applications. 
4. Quality of Service (QoS) Requirements: Identify any specific QoS requirements for critical applications such as VoIP, video conferencing, or cloud services. 

2. Scalability Requirements

1. Flexibility: Choose a DIA solution that offers scalability to accommodate future growth and changing business needs. Ensure that the provider can quickly adjust bandwidth levels as needed. 
2. Contract Terms: Evaluate contract terms to ensure flexibility in scaling up or down without incurring significant penalties or fees. 
3. Traffic Patterns: Take into account any fluctuations in your bandwidth needs, whether they occur seasonally or at specific times of the day and opt for a solution that can seamlessly adjust to these changes. 

3. Evaluating Budget Constraints

1. Total Cost of Ownership (TCO): Consider not only the upfront costs but also the ongoing expenses associated with DIA, including monthly fees, equipment costs, maintenance, and support. 
2. Budget Allocation: Determine how much your business can allocate for internet connectivity while balancing it with other operational expenses and priorities. 
3. ROI Analysis: Assess the potential return on investment (ROI) of investing in higher-quality DIA services, considering factors such as productivity gains, improved customer satisfaction, and business growth opportunities. 

4. Cost-Effectiveness 

1. Comparative Analysis: Compare offerings from multiple DIA providers to evaluate features, SLAs, pricing structures, and customer reviews. 
2. Value-added Services: Consider whether additional services or features offered by the provider, such as security enhancements or managed network services, justify the costs. 
3. Long-term Considerations: Balance short-term cost savings with long-term benefits and potential drawbacks. Sometimes, investing in a more flexible and scalable solution can result in better overall value over time. 

Case Study:

Discover how Terra Firma boosted their Network Security by leveraging Orixcom's Colocation and Dedicated Internet Access (DIA) services.

Company Overview: Terra Firma is an international fertiliser company headquartered in Dubai, known for its production of high-quality fertilisers and its widespread customer base spanning across the globe, with a particular focus on markets in India and the Middle East. With a commitment to excellence, Terra Firma strives to continuously improve its operations and services. 

Challenges: As a company dealing with sensitive data and operating in a globally competitive market, Terra Firma recognised the importance of enhancing its network security. Keeping its onsite servers and network infrastructure posed challenges in terms of physical security and monitoring. With the evolving landscape of cybersecurity threats, maintaining robust protection for its digital assets became imperative for the business’s sustained growth and success. 

Solution: To address these challenges, the company sought a solution that would provide enhanced network security while ensuring reliable access to its servers and applications. Orixcom, offered a comprehensive solution that combined Colocation and Dedicated Internet Access (DIA) services. 

Implementation: Orixcom worked closely with Terra Firma to migrate its onsite servers and network infrastructure to a secure and modern data centre environment. Through Colocation services, Terra Firma's hardware was housed in a state-of-the-art facility equipped with advanced security measures, including biometric access controls, surveillance systems, and redundant power and cooling systems. 

In addition to Colocation, Terra Firma leveraged Orixcom's Dedicated Internet Access (DIA) services to establish highly secure and reliable internet connectivity. This ensured seamless access to servers and applications, with guaranteed bandwidth and minimal latency. By moving its infrastructure to Equinix's DX1 data centre and utilising Orixcom Managed DIA, Terra Firma significantly strengthened its network security posture. 

Results: The transition to Colocation and Dedicated Internet Access (DIA) services provided by Orixcom yielded several benefits for Terra Firma: 

1. Enhanced Network Security: By relocating its hardware to a secure data centre environment, Terra Firma mitigated the risk of physical security breaches and unauthorised access. 
2. Reliable Access to Applications: With Dedicated Internet Access (DIA), the business ensured high availability and performance for its servers and applications, enabling seamless global operations. 
3. Secure Data Transmissions: The robust security measures implemented by Orixcom ensured encrypted data transmissions between servers and users, safeguarding sensitive information from cyber threats. 
4. Global Application Management: With its infrastructure hosted in a secure data centre, the business significantly improved their capability in managing applications globally, streamlining operations and improving efficiency.

Conclusion

Understanding Dedicated Internet Access (DIA) pricing is essential for businesses seeking reliable and high-performance internet connectivity. Throughout this guide, we have explored the various factors that influence DIA pricing, including bandwidth requirements, geographic location, service provider reliability, service level agreements (SLAs), and additional fees. 

By assessing bandwidth needs and scalability requirements, businesses can ensure they select a DIA solution that aligns with their current and future connectivity demands. Evaluating budget constraints and cost-effectiveness allows organisations to strike a balance between investing in quality internet services and managing expenses effectively. 

Ultimately, incorporating DIA into your business strategy serves as a cornerstone for fortifying and enhancing your digital infrastructure. Choosing the right DIA solution not only ensures consistent and reliable internet connectivity but also provides a competitive edge, enhances productivity, and supports business growth. 

FAQs 

1. Is Dedicated Internet worth it? 
   Dedicated Internet Access (DIA) is often worth the investment for businesses that prioritise reliability, security, and performance in their internet connectivity. Unlike shared internet services, DIA offers a dedicated connection that ensures consistent speeds, low latency, and high uptime, critical for mission-critical applications, cloud services, and remote collaboration. While DIA may come at a higher cost compared to shared options, the benefits of enhanced security, guaranteed bandwidth, and superior service quality can outweigh the expense, especially for businesses dependent on uninterrupted internet access for their daily operations and competitive advantage. 
   
   
2. How does Dedicated Internet Access pricing compare to other connectivity options? 
   Dedicated Internet Access (DIA) pricing typically exceeds that of other connectivity options such as broadband or shared internet services due to its dedicated nature and higher service levels. While DIA offers guaranteed bandwidth, symmetric speeds, and robust service level agreements (SLAs), these benefits come at a premium cost. In contrast, broadband and shared internet services are often more affordable but come with shared bandwidth, slower speeds during peak hours, and less stringent SLAs. Ultimately, the choice between DIA and other connectivity options depends on the specific needs and priorities of the business, weighing factors such as reliability, performance, security, and budget constraints. 
   
   
3. What are the typical contract terms and SLAs associated with dedicated internet access? 
   Typical contract terms and Service Level Agreements (SLAs) for Dedicated Internet Access (DIA) often include commitments regarding uptime, latency, packet loss, and customer support. Contract terms may range from one to three years, with options for renewal or termination clauses. SLAs typically guarantee a certain level of uptime, often exceeding 99%, and specify penalties or service credits for failure to meet agreed-upon performance metrics. Additionally, SLAs may outline response times for technical support and maintenance, ensuring prompt resolution of any connectivity issues.