CSN keeps outsourcing model for network infrastructure and updates equipment

Source: Information Week -  September 2008 - Jordana Viotto

Never change a winning team...

Eight years ago, Companhia Siderúrgica Nacional (CSN) decided to outsource its network. With the capacity to produce 5.6 million tons of steel and a 16 thousand staff, the company intended to ensure greater stability to its infrastructure, combined with expert management.

At the present stage, all the operations at the plant are automated and implemented through the network. As CSN technical support manager, Francisco José de Oliveira Ferreira pointed out, a significant drop means halting of the main activities. Another aspect regarding outsourcing is that the staff doesn’t need constant training and can be released for other projects.

In 2007, when the contract with the former provider was about to end, CSN could considered continuing the model. The choice was to go on and bidders were invited to present proposals. A survey was conducted to learn more about network and the technological advancements available in the market, and set the requirements for bidders.

Among the improvements required, there was the installation of a more modern virtual private network (VPN), network-IP telephony interconnection and quality control for services, besides supply of switches that could allow traffic cryptography and authorized users connection. Medidata presented the winning bid for network deployment and management.

For equipment, CSN elected Cisco, which was already their supplier. Two new stages were established: equipment change and implementation of voice and image traffic.

CSN build a mirror infrastructure to keep operations running while equipment was being replaced. “By doing this, one network item is only disconnected when its counterpart in the new architecture is ready”, Ferreira explained.
Presently, São Paulo offices have completed the migration and the Company is at the Paraná site, in the city of Araucária. The next office to implement the is located in the city of Volta Redonda (RJ).

The executive stresses that the new network is prepared to provide  new services like unified communications. This technology is new in Brazil but a new wave of investments is expected in the field of telecommunications systems. According to a market research released by Wainhouse Research in partnership with In-Stat, the world market of integrated communication services will jump from present US$ 8.8 billion to US$ 24.2 billion in 2012.