Co-op replaces network with managed service

High-street supermarket Southern Co-operatives has signed a three-year outsourcing deal to replace its ageing network with a managed, broadband-based virtual service.

A single broadband-based IP network will enable the retailer to centralise multiple applications such as email, stock management and chip-and-PIN authorisation across all its shops.

Southern Co-operatives’ IT manager Paul Sargeant says the virtual network will replace an ISDN network managed in-house, across 100 shops and 20 funeral service outlets.

‘We have multiple ISDN lines to manage transactions and operational applications across all our shops, but these are becoming slow and costly,’ he said.

‘Each shop has just two lines, one of which must be kept open for chip-and-PIN transactions. With an IP network we can run multiple connections to each shop at a fixed cost, and improve network speed by 50 per cent.’

Vendor Sirocom is providing its Retail Application Network, along with 24-hour support and dual backups to reduce the risk of outages.

Sargeant says the network, scheduled to be in place by the end of the year, is also scalable to meet future needs.

‘This will allow us to add things such as voice over IP,’ he said. ‘Eventually the network will form the backbone of everything we do and allow us to focus on customer-facing issues rather than technology.’

Quocirca analyst Clive Longbottom says traditional networks offer limited bandwidth and are charged on a pay-as-you-use basis. ‘A broadband network offers much more bandwidth for its regular internet services at a fixed cost, which should generate significant savings,’ he said.

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Further reading

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