Cisco Guide to Buying Managed Network Services

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CISCO GUIDE TO BUYING MANAGED,NETWORK SERVICES,02 Business Case for Out Tasking. 06 Benefits of Out Tasking,08 Selecting a Service Provider to. Manage Your Network Services,08 Cisco Powered Network. 10 Managed Services Quick,13 Find Out More,BUYING NETWORK SERVICES CASE STUDY. Fontango an online only business serving the European community enables. digital and conventional camera users to view share and organize their photos. Fontango requires 24 hour fully scalable high bandwidth Internet access in a. highly secure environment Fontango chose a service provider to deliver a. cost effective fully managed access solution using its pan European network of. advanced Internet Solutions Centers for Web hosting and state of the art. fiber optic networking By choosing to out task essential Internet access services. to a service provider whose service is built over end to end Cisco equipment. Fontango retained control of its Internet presence with dedicated secure rack. space that met its requirements for support network performance and enter. prise level security,Business Case for Out Tasking.
We wanted to integrate voice IP and In today s market economy businesses depend on increasingly complex networking. data on the same high speed network technology to support internal processes and external relationships with customers. for cost saving efficiencies in terms of, suppliers and partners Many businesses have come to realize that keeping on top of a. IT staff and for the easy rollout of new, productivity enhancing applications sophisticated network infrastructure can tax resources that could be better devoted to. such as Service Advertising Protocol core business competencies. SAP With our service provider we, are already seeing a return on invest Many companies are therefore choosing to out task some or all of their network. ment and have found out how much functions to service providers Companies are finding that out tasking can help achieve. more efficient our business can be, significant revenue benefits increase flexibility and agility and provide access to skills. Bill Freyer that a business might not have in house such as networking security or communica. Vice President of Information Technology, tions with the added assurance that these skills will be up to date and scalable.
JT International Switzerland,Purchaser of Managed Services. As more companies realize that out tasking does not mean losing control over critical. business functions that it is possible to determine the degree of in house management. and monitoring even for network services whose physical components are located at. service provider facilities the trend toward out tasking networked business functions. is growing, Whether your company is large or small if you are considering out tasking some or all. of your networked business functions Cisco Systems can help ensure a positive result. Cisco has extensive experience in making out tasking work for businesses and because. choosing the right provider is an essential element of success has identified service. providers whose networks are built end to end with Cisco hardware and software These. recommended providers carry the Cisco Powered logo designation on their services and. provide the peace of mind you need to turn over essential networking functions for your. business so you can concentrate on what you do best. The information in this guide will help you determine whether out tasking is right for. you In this guide you will learn about,The basics of out tasking. What services companies are out tasking,Growth trends. Benefits of out tasking,Selecting a service provider.
Service level agreements,Cisco Powered Network designation. Resources for further investigation,Frequently asked questions. Fundamentals of Out Tasking Network Based Services. Out tasking a network based service means that a company hands over part or all of the. management of its network infrastructure applications and security to networking. experts These experts might include service providers systems integrators or value. adding resellers Businesses might out task a particular service or set of services or might. out task most IT functions,Out Tasking Defined, Out tasking is the contracting by an organization with a third party for the management. and enhancement of ongoing operations for particular elements of its network services. Outsourcing is typically used to describe an organization that has a third party handle. entire business functions, Out tasking as opposed to outsourcing entire business functions to a third party offers. companies flexibility in choosing which aspects of its operations are best handled. in house and which can be turned over to a service provider For example a business. might choose to out task management and service provision using its own network. infrastructure or might choose to connect to a service provider s infrastructure. Who Is Out Tasking, The practice of out tasking is expanding to encompass more services strategic alliances.
and industries because more and more businesses are finding out tasking critical to. The out tasking relationship is key competitiveness and growth Large businesses are the most likely to out task services. to solving our business problems led by banking insurance and financial services followed by medium sized businesses. and government,Core services commonly out tasked are. Managed VPN,Intranet and Internet hosting,Joseph Quinlan Data storage. Director Internet Architecture,Pierson Technology USA Managed security. Purchaser of Managed Services,Business continuance disaster recovery. Backbone network transport,Managed business voice,Managed contact centers.
Specialized services are also filling important needs Financial companies for instance. are using content and mobile wireless services and health care companies are taking. advantage of hosted applications Typical services used by one or more industries include. Content services,Mobile wireless services,Broadband services. IP communications,Hosted applications,E commerce,Customer support and help desk. Figure 1 CIOs Say Outsourcers are Best Providers of Technology Solutions. System Integrator,Hardware Vendor,Traditional National. Telecom Provider,Traditional Local,Telecom Provider. Software Vendor,Consulting Firm,First Choice,Local Value Added Second Choice.
Reseller Third Choice,0 10 20 30 40 50 60, Source The Yankee Group 2004 Percent of Respondents. The Growth of Out Tasking, Growth trends indicate that out tasking is proving to be both economically advantageous. and strategically effective, The total U S managed network services industry is expected to increase from US 7 9. billion in revenue in 2000 to US 31 4 billion by 2006 a compound annual growth. rate of 22 4 percent Gartner 2002, Ethernet service revenue is expected to increase 57 percent compound annual growth. rate CAGR from 2003 to 2008 Yankee Group 2004, Business voice revenue is expected to increase 214 8 percent CAGR from 2003 to 2008.
Gartner 2004, Managed services can help businesses reduce overall network costs by 15 to 25 percent. Gartner 2002, Compared to traditional services such as Frame Relay DSL VPNs reduced the total. cost of wide area networking by 17 to 65 percent META Group. Yankee Group research found that chief information officers consider IT outsourcers. to be the best providers of technology solutions Yankee Group 2004. When to Consider Out Tasking, It would be a total waste of Consider the scenarios outlined in Table 1 to decide whether out tasking is the best solution. time for me to try to under for your company,stand functionality that is not. in my core business Table 1 Out Tasking Checklist,Why My business is facing challenges.
Staffing IT professionals, Staying up to date with evolving technologies security monitoring and IT skill sets. Managing and maintaining current infrastructure hardware and software. John Gilbert, CEO and Executive Vice President Securing data transactions and communications. Rudin Management USA, Purchaser of Managed Services Responding quickly to time to market demands. Remaining flexible enough to maintain our competitive position. Reducing cost margins on overhead, Operating in real time in order to meet 24 hours per day requirements. When My business is in transition, It is time to upgrade refurbish move or relocate existing infrastructure.
The scope or scale of current business operations is changing. A merger partnership or acquisition is altering operations. We need to increase our range and level of service to meet customer. demand or competitive challenges, Our projected growth targets are dependent on implementing new technologies. We are expanding into a national or international market. Who My business is setting priorities to increase revenue. We prefer to focus on core competencies and mission critical processes rather. than dedicating resources to supporting network applications. We are able to purchase specialized services that complement our core business. We need to implement a global network service but lack internal global resources. We are concerned with the security of our network and our ability to meet. privacy or security regulations, We need better tools and dedicated resources to keep up with the latest. security threats, We are experiencing dynamic business growth while undergoing downsizing. and hiring freezes, PRIMARY BENEFITS BUYING NETWORK SERVICES CASE STUDY. Customers partners investors analysts, The Prudential Group is one of the United Kingdom s largest financial service.
and unstable market conditions have all, caused increased demand for speed providers When Prudential needed to move complex confidential financial. access availability reliability security transactions online security was paramount Prudential turned to a service. service and support Out tasking is one, way to meet these demands and remain provider whose fully managed solution allowed it to offer customers online. competitive in today s shifting economic trading in a secure environment using advanced digital certification and. climate Companies give the following, encryption technology Access privileges for customers and financial advisers. reasons for their decision to out task, are controlled by the service provider based on Prudential s requirements. Enables the company to focus on its core Essential security is only one of the advantages Prudential has gained by. working with a service provider network administration and management of. Fuels business growth with access to an extensive extranet has been simplified cost efficiency improved and. world class capabilities, transaction times reduced The service provider is in turn partnering with.
Enhances security for operations and U S based Verisign for the Managed PKI certification technology By choosing. private data to out task to a service provider whose service is built over end to end Cisco. Offers superior high performance network equipment the Prudential Group has access to the latest security network. availability technologies and expertise without the overhead. Increases speed and agility to meet market,demands Benefits of Out Tasking. Supports faster implementation and optimal Return on Investment. interoperability of new networking and, In addition to the above reasons 48 percent of companies that out task do so specifically. communications services, to reduce and control operating costs Outsourcing Institute 2001 Cost reductions can. Secures mission critical applications and be significant in areas such as operations maintenance service equipment hardware. transactions, software and infrastructure and technology upgrades. Provides access to leading technology that,companies might not otherwise be able to.
Out tasking saves companies money,Reduces maintenance and operations costs. Reduces internal IT and information services IS staff and service expenditures. Reduces operational and capital expenses, Reduces costs incurred for training staff turnover and keeping the staff trained on. new technologies upgrades viruses etc,Creates economies of scale. Provides predictable costs for information technology. Out tasking does require careful analysis of your business model and evaluation of the. financial factors involved especially if your company is used to doing it all For exam. ple the level of network availability your company requires can make a difference in the. cost of out tasking Organizations that are dependent on high levels of uptime will want. to invest in the standard maximum target rate of 99 999 percent availability Companies. with lower availability requirements might be able to save in this area. For small and medium sized businesses the ability to count on predictable typically fee. based networking costs while improving operational efficiency is a very large benefit of. out tasking It gives smaller companies access to enterprise class economies of scale while. keeping costs steady,BUYING MANAGED SERVICES CASE STUDY. As one of the leading feeder and container shipping operators in the Asia. Pacific region Regional Container Lines RCL covers more than 70 destinations. in Asia Australia and the Middle East With nearly 40 agencies op. BUYING NETWORK SERVICES CASE STUDY Fontango an online only business serving the European community enables digital and conventional camera users to view share

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