ISG Provider Lens™ Enterprise Managed Network Services - Managed Network Services Evolution - Europe 2024

Managed delivery of advanced enterprise network services becomes vital for business success

The managed network services (MNS) industry has evolved significantly since its inception in the early 2000s. It faced resistance from many European enterprises, which were more comfortable with traditional large-scale IT and data operations departments based in-house. Although initially focused on basic connectivity and maintenance tasks, MNS encompasses a comprehensive range of services addressing the complexities of modern ICT infrastructures. From underlay network management to network security, cloud connectivity and software-defined networking, MNS is now
essential for robust security measures and regulatory compliance in today’s complex threat landscape. As enterprises and government organizations navigate complex network landscapes and hybrid working environments, the role of MNS has become crucial.

Ongoing advancements in digital infrastructure have created an optimal environment for MNS, network as a service (NaaS) and network service providers to thrive. Moreover, adopting new technologies such as AI and GenAI further accelerates this evolution, demanding specialized expertise and staffing that many enterprises may not be well equipped to handle.

Some key factors driving changes in enterprise networks across Europe in 2024 align closely with global results and can be outlined as follows:

Enterprise network challenges and MNS solutions

Modern enterprises face numerous network challenges that are listed below:

● Heterogeneity in network: Integrating various network types (core, cloud and edge) and enabling them to work
together seamlessly in a fixed/mobile, public/private environment

● Performance and reliability: Maintaining optimal performance and stability across all network domains

● Cost management: Balancing expenditure while achieving efficient and secure network operations

● Regulatory compliance: Adhering to stringent data privacy and security regulations, such as the Health Insurance
Portability and Accountability Act (HIPAA), Central Consumer Protection Authority (CCPA) and GDPR

● Technology refreshes: Adapting to rapid technological changes and upgrades

● Mobility and cloud integration: Facilitating secure and efficient cloud migration and mobile workforce support,  considering the requirement of private 5G networks

● IoT integration: Managing the influx of IoT devices and their associated security risks

● Skillset requirements: Training existing staff and hiring new talent with expertise in cutting-edge technologies and services required

● Vendor management: Coordinating with multiple vendors for cohesive network management

MNS providers address these challenges by offering a comprehensive suite of services, which ISG segregates into three distinct quadrants of business area focus as stated below:

1. Managed Network Services Evolution

MNS providers cover everything from network provisioning and operations and management to monitoring. Their services offer robust security through firewalls, audits, data integrity measures and sophisticated intrusion detection/prevention systems (IDS/IPS). They also offer fully managed and comanaged models, such as those listed below:

● Network provisioning, operations, management and monitoring: Ensuring continuous network performance and security

● Security posture maintenance: Implementing firewalls, conducting audits, ensuring data integrity and deploying IDS/IPS solutions

● Network upgrades and expertise: Providing ongoing updates and specialized support

● Flexible engagements: Offering options for the complete acquisition of existing estates, potentially with a defined upgrade plan targeting discrete parts of the network such as LAN, WAN, cloud and security over time

● Consulting/advisory services: Enhancing enterprise outcomes through strategic guidance, including network upgrades, organizational change, business application integration and consolidation

2. Managed Enterprise Connectivity Solutions (DIA, VoIP and VPN)

For enterprises not completely transitioning to the cloud or software-defined networks, services related to direct internet access (DIA), VPNs and voice over internal protocol (VoIP) remain critical. These services are listed as follows:

● Private and virtual networks: Catering to diverse network needs with enhanced control and security

● Remote access and device management: Ensuring secure and efficient remote operations

● System design and implementation: Customizing networks to meet enterprise-specific requirements Customizing networks to meet enterprise-specific requirements

● Configuration and monitoring: Maintaining optimal network settings and performance

● Bandwidth and UX: Ensuring sufficient bandwidth and a positive UX

3. Network as a Service (NaaS)

NaaS allows businesses to leverage advanced network capabilities without the need to maintain infrastructure or long-term contracts. These capabilities are listed as follows:

● On-demand connectivity: Providing flexible, scalable network solutions

● Pay-as-you-use model: Charging primarily for the services and bandwidth consumed

● Expert management: Delegating daily network management to specialized providers

● Application assurance and cybersecurity: Ensuring secure and efficient application performance, which may also entail the use of security operations centers (SOCs) or cyber defense centers

● Multicloud services: Facilitating seamless multicloud integration, including core to edge coordination and  operation

The MNS industry performs a key role in helping European organizations navigate the complexities of modern ICT infrastructures. By offering a comprehensive suite of services that include legacy networks, advanced next-generational networks, network security, cloud connectivity and support for emerging technologies, MNS providers enable businesses to direct the attention of their staff on core business operations while maintaining robust and advanced network performance and security. The ongoing evolution of the MNS market, driven by technological advancements and the growing sophistication of cyberthreats, underscores its importance in the digital landscape.

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