Features

December 2006

SPECIAL FOCUS: MSPs/INTEGRATORS

Cut costs, simplify network operations

A managed network services provider can offer flexibility and reliability, as well.

by Andrew Goldsmith


With an MNS provider, a user should be able to demand and obtain a single end-to-end SLA, even if multiple carriers are providing the underlying infrastructure.

A managed network service (MNS) offering for an enterprise customer generally consists of a flexible best-of-breed solution comprised of a customized bundle of services that can include all or some of the following: network design, implementation, operation, management, monitoring and maintenance, as well as optimization for cost and/or performance. It can involve virtually any communication service, ranging from private line, point-to-point broadband data connectivity to multiprotocol label switching (MPLS), IP virtual private networks, ATM or Frame Relay.

Some of the potential primary benefits of opting for an MNS solution versus using an enterprise’s in-house staff to deploy and operate a domestic or global enterprise network include:

  • lower capital outlay;
  • easier migration to new technology;
  • potential for lower costs or more bandwidth for your buck;
  • less strain on in-house IT resources; and
  • single point of contact even if multiple facilities-based carriers are used.

From a practical point of view, an MNS can help to eliminate the need for entering into multiple contracts with the various equipment vendors and carriers (and the associated interoperability issues, different taxes and capital expenditures) that may be required to acquire and deploy the connectivity for a wide area domestic or global network. If an enterprise tries to put together its own network using multiple carriers, there is no single point of contact and no single service-level agreement (SLA). By contrast, with an MNS provider, a user should be able to demand and obtain a single end-to-end SLA, even if multiple carriers are providing the underlying infrastructure.

A similar consideration in deciding whether to do it yourself or use an MNS concerns the acquisition of customer premises equipment that may be required to implement an enterprise network solution. Whereas implementing an enterprise network on your own could require the capital expenditure to obtain equipment at every terminating location to utilize the connectivity provided by carriers in between, an MNS may be able to bundle the use of equipment as part of the operating cost of the managed service.

When searching for an MNS provider–whether an integrator, virtual network operator (VNO) or facilities-based carrier–there are a number of “best practices” that should be considered.

  • How will the MNS provide the connectivity to get you to the various locations for your network?
  • What is the quality and reliability of the service being provided in terms of availability, performance and continuity?
  • How is the MNS addressing security; what are the potential weaknesses and can the MNS address these weaknesses?
  • Can the MNS provide a cost-effective design and what are the alternatives? Does the solution come within, below or above the return on investment (ROI) figures? Is ROI an issue or do you need to be in a given location for strategic reasons and cost is not the primary issue?
  • What is the level of experience and knowledge of the MNS provider in providing service in terms of technology and geographic regions for which you need service?

Keeping in mind the MNS best practices, when looking at different MNS providers, you may also want to consider whether the provider has its own facilities-based network. This is an important consideration because the provider with its own facilities-based network may likely be more committed to providing a solution that maximizes usage of its own network. By contrast, a provider that has relationships with multiple carriers–such as a VNO, telecom service integrator or systems integrator–is less likely to be committed to a particular underlying network infrastructure. Moreover, the more facilities-based carriers that the MNS has relationships with, the better value and flexibility they may be able to provide to an enterprise customer.

For example, the spread in pricing for a 155-Mbps optical OC-3 circuit between Herndon, Va., and Athens, Ga., from different underlying facilities-based carriers can range from $18,195 for the low-cost option to $37,561 per month for the 10th best price, a $19,366 difference each month.

In another case, there is more than a $2,700 per month spread for a 45-Mbps DS-3 circuit between Princeton, N.J., and Alpharetta, Ga., with underlying carrier pricing that ranges between $8,133 and $10,909 per month. Similarly, the cost for a dedicated Internet access port and local loop in Newark, N.J., at the DS-3 rate of 45 Mbps can vary between $2,340 per month to $17,069.

Another important consideration in choosing an MNS is its knowledge of international markets and networks. Deploying an enterprise network has its challenges, but the question of addressing global enterprise network requirements only further complicates matters. For instance, in an international, multicountry scenario, there can be inconsistency in both services offered and service quality. In some cases, there may only be a single local government-owned telco on which to rely. Some are sophisticated in their offerings; some are not.

Consequently, when looking for an MNS, you should make sure that the provider is knowledgeable of the communications infrastructure in the regions in which you have requirements. It should also provide 24/7 support and multilingual technicians. The risk of not having the proper support is to have an extended loss of service for two or more weeks.

Occasionally, you may have to compromise on the quality, reliability and availability of service. An MNS provider should know when these compromises have to be made and plan accordingly. For example, if you are looking to implement an MPLS strategy and you have requirements in some of the developing nations, you likely will have to consider alternatives.

Under these circumstances, you may be able to deploy MPLS to Johannesburg, South Africa, for example, but for connectivity in the sub-Sahara region, the best you might be able to do is a hybrid approach in which you deploy an IP VPN over a dial-up voice line. An MNS provider should be able to help the enterprise customer identify these considerations in an international network deployment and determine the best course of action from among the available options.

Andrew Goldsmith is vice president of marketing and strategic planning at Global Telecom & Technology, McLean, Va.

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