What Should Enterprises Look for in a Managed Services Provider?

Gary Barton – Analyst, Business Network and IT Services

Summary Bullets:
• Technology complexity and skills shortages are leading more enterprises to look towards managed network and security solutions

• Enterprises should look for flexible, reliable providers who can offer a full range of managed and professional services from day zero to day two

GlobalData’s conversations with enterprises over the last two years have highlighted a growing trend towards managed network services – a trend that is borne out by GlobalData’s Market Opportunity Forecasts. This trend is true even among large and multinational enterprises in the US who have traditionally favored a DIY approach. Enterprises have indicated multiple reasons for this move, primary among which are complexity and skills shortages.

(Source: GlobalData’s Market Opportunity Forecast to 2027)

GlobalData’s Market Opportunity Forecast highlights that managed network services will deliver 37.5% growth in North America and Western Europe between 2023 and 2027.


(Source: GlobalData’s Market Opportunity Forecast to 2027)

Managed security services will deliver 63.5% growth in North America and Western Europe between 2023 and 2027.

The convergence of security, network and access services and the growing complexity of selecting and integrating the most appropriate ecosystem of vendor partners has made it increasingly difficult for enterprises to build networks that meet their needs without support. Employing the right people who can build and maintain these networks is also becoming more difficult and more costly as demand and inflation drive up wages. But as enterprises look for support, what factors should they be considering when selecting a managed and professional services partner?

A key factor to consider is whether the provider can offer support from day zero to day two. In other words, does the provider have the right capabilities to give support at the design, implementation stages, and through contract lifetime of the solution?

Day zero support is primarily about professional services capabilities. The right provider should be able to understand an enterprises business needs and transformation goals and work with the enterprise to select a network design that combines the right topography and technology vendor partners. Enterprises should talk to providers willing to challenge their initial assumptions about what they require and suggest alternatives where appropriate. The right provider should be able to build proofs of concept to test assumptions and anticipate any policy or configuration issues that may arise. Network solutions should also be designed to adapt throughout the life of the contract as circumstances change and new technologies are brought in.

Day one, or the deployment phase, should involve a combination of preparedness and flexibility from the provider. Simple factors such as site cabling and WiFi signal surveys can play an important role in smooth deployment of new network rollouts. The provider should be able to meet the enterprise’s timetable for deployment at whatever pace, and be able to reschedule individual sites as and when needed. Enterprises should also be aware this phase is likely to be conducted by a combination of the provider’s in-house capabilities and regional partners so enterprises should ensure that the provider is able to coordinate across multiple partners.

Day two support begins once the first site is live on the new network solution. There is no single right answer for the level of support required by an enterprise, so it is important to talk to providers about their ability to offer both fully managed and co-managed solutions. Enterprises should be aware that the co-managed approach may offer more flexibility, but it also potentially impacts end-to-end service guarantees.

Day two support also includes the provider’s user portals, observability, and API capabilities. Even those opting for a fully managed service need the ability to monitor what it is happening on their network. Data sovereignty and compliance laws also make observability a must. Enterprises should challenge providers on their ability to offer observability both at the network and at the application level. API capabilities are necessary for those enterprises who want to be able to integrate network and application performance data into their own IT service management systems.

Ultimately, enterprises should be prepared to ask questions at all stages and challenge prospective providers about all aspects of their managed and professional service capabilities.

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