Executive Summary: ISG Provider Lens™ - Enterprise Managed Network Services - U.S.2024
11 Dec 2024
The individual quadrant reports are available at:
ISG Provider Lens™ Enterprise Managed Network Services - Network as a Service (NaaS) - U.S.2024
Managed delivery of increasingly complex enterprise network services is a critical success factor
The managed network services (MNS) industry, whereby entire or parts of enterprise networks are effectively outsourced to expert suppliers, has witnessed a significant evolution since its inception in the early 2000s. Initially focused on basic connectivity and maintenance tasks, the industry has expanded to include a comprehensive range of services that address the complexities of modern ICT infrastructures. Today, MNS encompass underlay network management, network security, cloud connectivity, software-defined networking and more. The demand for MNS is driven by the need for robust security measures such as secure access service edge (SASE) and regulatory compliance amid an increasingly complex threat landscape.
As enterprises and government organizations navigate the increasingly complex network landscape and hybrid working environments, the role of MNS has become crucial. The ongoing advancements in digital infrastructure,
driven by the need for enhanced security and compliance with stricter regulations, create a fertile ground for MNS, network as a service (NaaS) and network service providers to thrive. Adopting new technologies, including AI and
generative AI (GenAI), further accelerates this evolution, introducing additional layers of complexity that demand specialized expertise and staffing, which enterprises may not be well equipped to deal with at pace.
Some key factors that drive rapid changes in enterprise networks globally and, in particular, within the U.S. in 2024 can be outlined as follows:
Enterprise network challenges and MNS solutions
Modern enterprises face numerous network challenges:
● Heterogeneity in networks: Integrating various network types (core, cloud and edge) and ensuring they work seamlessly in a fixed, mobile, public or private environment
● Performance and reliability: Maintaining optimal performance and stability across all network domains
● Cost management: Balancing expenditures 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: Keeping up with rapid technological changes and upgrades
● Mobility and cloud integration: Facilitating secure and efficient cloud migration and supporting mobile workforce, considering the implementation of private 5G networks where required
● IoT integration: Managing IoT devices’ influx and associated security risks
● Skill set requirements: Training existing staff and hiring new talent with expertise in advanced technologies and services required
● Vendor management: Co-ordinating with multiple vendors to ensure cohesive network management
MNS providers address these challenges by offering a comprehensive service suite, which can be broken into three distinct quadrants of business area focus:
1. Managed Network Services Evolution
MNS providers cover everything from network provisioning, operations and management to monitoring. Their services assure robust security through firewalls, audits, data integrity measures and sophisticated intrusion detection systems (IDS) or intrusion prevention systems (IPS). They offer both fully managed and comanaged models, which include:
● Network provisioning, operations, management and monitoring: Ensuring continuous network performance and security
● Security posture maintenance: Implementing firewalls, conducting audits, assuring data integrity and deploying
IDS and IPS.
● Network upgrades and expertise: Providing ongoing updates and specialized support
● Flexible engagements: Options for the complete takeover of existing estates, potentially with an upgrade plan over time defined or targeting discrete specific network parts such as LAN, WAN, cloud and security only
● Consulting or advisory services: Enhancing enterprise outcomes through strategic guidance, including network upgrades, organizational change, business application integration, consolidation, etc.
2. Managed Enterprise Connectivity Solutions (DIA, VoIP and VPN)
For enterprises not fully transitioning to cloud or software-defined networks, services related to Direct Internet Access (DIA), Virtual Private Networks (VPNs), and Voice over IP (VoIP) remain critical:
● 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 specific enterprise requirements
● Configuration and monitoring: Maintaining optimal network settings and performance
● Bandwidth and user experience: Ensuring sufficient bandwidth and a positive user experience
3. Network as a Service (NaaS)
NaaS allows businesses to leverage advanced network capabilities without the burden of maintaining infrastructure or long-term contracts:
● On-demand connectivity: Providing flexible, scalable network solutions
● Pay-as-you-use model: Charging only 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; this may also entail using security operations centers (SOCS) or cyber defense centers
● Multicloud services: Facilitating seamless multicloud integration, including core-toedge coordination and operation
The managed network services industry plays a vital role in helping organizations navigate the complexities of modern ICT infrastructures. By offering a comprehensive services suite that includes network security, cloud connectivity and support for emerging technologies, MNS providers enable businesses to focus on their core operations while ensuring robust network performance and security. The continuing expansion and changes of included elements within the MNS market, driven by technological advancements and the growing sophistication of cyberthreats, underscores its importance in the digital landscape.
In this report on enterprise managed network services (2024), ISG explores the evolving market demands for enterprises in the U.S., Europe and APAC regions and presents a comprehensive analysis of its different sectors. The report provides valuable insights helping enterprises make informed decisions regarding strategic planning, risk mitigation, and cost optimization. The report utilizes primary data from providers, as well as input from ISG advisors and other secondary and tertiary sources.
Access to the full report requires a subscription to ISG Research. Please contact us for subscription inquiries.
Page Count: 15
Categories
QUESTIONS?
To purchase this product or for more information, please contact your account manager: