Managed Service Scenarios: Choosing the Best-Fit Solution

Are you puzzled about how to choose the best-fit managed service solution for your particular business needs? As a basic guide, the following are three typical high-level scenarios for deploying managed network services.

Scenario 1: Customer Owns Network and Shares Management Responsibility

Companies that already have an internal IP network can continue to manage it while out-tasking the management of onsite equipment -- usually known as customer-premises equipment (CPE), used for the managed service (see Figure 1).


The Roles and Responsibilities are as follows:
Managed service provider -- Sets up, maintains, and administers the equipment needed for the managed service, including company-owned equipment such as servers.

Company -- Managed service customer maintains and administers its internal network.

Scenario 2: Service Provider Owns the CPE; Customer Can Share Equipment Management with Service Provider

Some companies do not own a LAN, either because the location is new or the company already out-tasks its LAN services. In this situation, the service provider can manage the equipment needed for the corporate network as well as the managed service.

Many large enterprises like this arrangement because they can maintain physical control of the equipment while relying on the service provider for 24-hour network operational support (see Figure 2).


The Roles and Responsibilities are as follows:
Managed service provider -- Sets up, maintains, and administers the equipment for the managed services as well as the corporate network.

Company -- Monitors its corporate network through a Web interface provided by the service provider, receives regular reports on the network status and managed services, and is notified in case of a defined emergency.

Scenario 3: Service Provider Owns Equipment in its Own Facility; Customer Monitors Service Provider's Management of the Equipment

The difference between this scenario and the previous one is that most of the equipment is physically located in the service provider's "hosting" facility instead of on the customer premises.

The Roles and Responsibilities are as follows:
Managed service provider -- Sets up, maintains, and administers the corporate network and related managed services; most of the network equipment is physically located in the provider's computing center; the exceptions are the equipment for the LAN and network connections, as well as gateways for computers and IP telephony.

Company -- Monitors performance of its systems through a Web interface provided by the service provider, receives regular reports on the network status, and is notified in case of a defined emergency.

Summary: each of the three basic scenarios can be customized to meet your particular requirements. In upcoming posts, we'll identify some more specific application examples.

Introduction to Managed Network Services

Many companies find it expensive to keep up with new Business Technologies -- or simply prefer to devote their limited IT or Telecom resources to the core business, rather than routine ongoing network management.

Managed network services can quickly enable your company to evolve, by giving business decision makers access to leading network technologies and management expertise -- without requiring high initial capital expenditures (CapEx), or ongoing investments in technology upgrades.

Deploying a Managed Service Solution
When a company subscribes to a managed service, a service provider manages the network equipment and applications on the customer premises according to the terms of a service-level agreement (SLA) established to meet the company's unique business needs.

Some managed services are also hosted, meaning that the service provider hosts the equipment in its facility instead of the customer's, and delivers services to company employees over the Wide Area Network (WAN) to wherever they are physically located.

For small and medium-sized businesses (SMBs), managed services provide enterprise-class capabilities for a predictable monthly fee -- without requiring a large, initial capital investment.

The On-Demand Pay-as-you-go Model
Companies that out-task enjoy high levels of network support and availability, enabling internal IT staff to focus on strategic activities instead of network support, and pay only for those networking services that they need.

Managed services generally include software, hardware, and other Internet Protocol (IP) networking services. The service provider's highly experienced technical experts focus exclusively on providing the network services and support that customers need to meet their business requirements.

Companies have the option to out-task some or all of their network management and monitoring tasks and retain control of the rest -- even if the equipment is physically located at the provider's site.

Key Benefits of managed network Services:

• Reduces costs, including service call fees, hardware, operations, and network transport
• Eases adoption of new technology-enabled business processes
• Increases levels of support and network availability, without additional staff
• Makes your IT and Telecom budget more stable and predictable
• Provides access to the latest technology, with limited risk
• Provides access to an enhanced technical skills base
• Makes it easier to adapt to changing business conditions
• Enables the IT manager and staff to focus on your core business
  

In upcoming posts, we will outline some typical scenarios for deploying managed network service offerings -- including simplified application diagrams that explain the basic concepts.