Network Complexity Simplified: Choosing the Right Managed Network Service Provider | ISG

With an increasingly mobile workforce, many national and local governments are investing in digital infrastructure and looking for help from managed network service (MNS) providers, network as a service (NaaS) providers and network service providers. New technologies like AI and IoT continue to democratize technology adoption, and data privacy regulations are becoming increasingly stringent. The network is more and more complex every day.

Enterprises also face growing network challenges. Challenges include performance and reliability issues, rising costs, regulatory compliance, technology refreshes, mobility, cloud migration/integration, IoT and vendor management. Many organizations find the complexities of modern networks – from ensuring robust security measures to managing seamless connectivity – require specialized expertise. This is where MNS providers come into play. They offer a comprehensive solution for businesses to outsource their network operations. By doing so, they simplify complexities and enhance efficiency across hardware maintenance, security implementations, network upgrades and access to specialized expertise.

Choosing the Right Network Management Strategy for your Enterprise

ISG's upcoming report on MNS dives into this dynamic landscape, analyzing and comparing provider offerings across three quadrants.

• Managed Network Service (MNS): From network provisioning management to monitoring, these providers help enterprises with continuous network upgrades and ongoing expertise that offers comprehensive support and end-to-end solutions with audits and sophisticated security solutions. Provider solutions can take different forms, including a co-managed model, a complete take-over of the existing estate (with/without rip and replace options) or specific projects. They can span LAN, WAN, cloud, security, wireless/fixed, software-defined, disaster recovery, business continuity, on-demand connectivity or consulting/advisory type engagements. ISG’s 2023 Networking Survey highlights infrastructure complexity as the second greatest challenge for global enterprises.
• DIA, VPN and VoIP: Modern enterprises need traditional support, including design and implementation, remote access and device management, security and compliance, configuration and monitoring, bandwidth management, UX and training services. But services such as Dedicated Internet Access (DIA), SD-WAN, Virtual Private Networks  (VPNs) and Voice/Video over IP (VoIP) also cater to enterprises that need enhanced control and security, flexible network performance and on-demand scalability with cost savings. As per ISG’s Networking Survey, for the 58% enterprises choosing private connectivity, network security, TCO control and campus renewals (e.g., Wi-Fi 6 deployments) were key drivers. For the remaining 42% of enterprises choosing Internet connectivity, public cloud connectivity, hybrid/remote workforce enablement and access to next-gen voice/video applications remained top drivers. This clearly highlights that requirements for DIA, VPNs and VoIP can be leveraged in conjunction or discretely for addressing the cost-versus-control or privacy/security-versus-remote-access debates. Again, nearly three-quarters of global enterprises favor managed network service providers that are easier to do business with. While security compliance and network availability are table stakes, it boils down to customer experience, patch management, incident response times and mean-time-to-repair parameters for enterprises contracting managed network services.
• NaaS: Network-as-a-Service (NaaS) allows businesses to enjoy reliable connectivity without having to maintain their own network infrastructure. It combines on-demand connectivity, lifecycle managed services and multi-cloud-based services across a standards-based automated ecosystem. This means enterprises gain visibility and scalability and get to delegate daily management to experts, so they can focus on improving performance, reducing costs and achieving their business goals. In short, NaaS streamlines and manages network connectivity, letting enterprises concentrate on their core business. In 2023, cloud managed networking services was preferred by almost three out of four enterprises in the survey.

Even businesses that are wary of outsourcing are likely to see benefits with a MNS provider if the relationship is built on transparent communication. Expanding internal IT capabilities, optimizing expenses and fostering trust with transparent communication are well-documented benefits of outsourcing network management. The right provider can also provide access to cutting-edge technologies at scale. MNS providers can help prioritize a strong security posture and even accommodate requests for on-premises systems with greater security, interoperability and road mapping that lead to significant cost savings.

Additionally, MNS providers offer comprehensive, scalable, secure network solutions that enhance business performance and support growth. They can assist in meeting regulatory compliance standards such as HIPAA and CCPA in the U.S., navigating GDPR and diverse regulatory setups across EMEA and APAC (Asia Pacific). Furthermore, they also mitigate advanced cyberattacks, facilitate rapid digital transformation, address network infrastructure inequalities and support organizations at different stages of maturity.

Assessing Network Service Providers

ISG’s Provider Lens Managed Network Services Study 2024 (for the U.S., Europe and APAC) will help enterprises make decisions for strategic/tactical planning, risk mitigation and cost optimization. To ensure market competitiveness, ISG assesses variations in solutions along with providers’ relative market size, number and variety of clients in each quadrant, case studies and CX scores as part of the ISG Star of Excellence™ program.

The ISG Provider Lens™ Quadrant research series integrates empirical, data-driven research and market analysis with the practical insights and observations of ISG’s global advisory team, making it the only comparison research of its kind. Enterprises will discover abundant detailed data and market analysis to assist in choosing suitable sourcing partners. ISG advisors also use the reports to validate their market knowledge and make recommendations to enterprise clients. The research currently covers providers offering their services across multiple geographies globally. For more information about ISG Provider Lens™ research, please visit this webpage. Or contact us to find out how we can help you with your next network decision.