Harris said Virtela has helped set up Voice over IP (VoIP) operations in three of five offices and was able to save Shaklee money by allowing it to close two of its six order processing centers.

He said the service has already provided Shaklee with a return on investment, and rivals the data and voice networking services of other providers in the industry.

Harris said he likes working with small vendors such as Virtela because such companies can be more creative and respond faster to customer issues. "You don't get lost as if you're one of millions of customers," he said.

He stressed that if a contract is written properly -- with economic incentives for both parties -- it is possible to forge a lasting relationship with a smaller vendor. And if the vendor gets bought out, it's important that whatever contract is in place include an ability to transfer guarantees, Harris said.

Winther said Virtela might be the second-largest VNO of nearly 20 in operation, behind Vanco Plc in London. Others include New Edge Network Inc. in Vancouver, Wash., Vanguard Managed Solutions in Mansfield, Mass., Masergy Communications Inc. in Plano, Texas, and Megapath Networks Inc. in Pleasanton, Calif. The worldwide market for such providers is perhaps $500 million, a tiny fraction of the global service provider market.