Demand for Managed Network is Expected to Rise

Demand for Managed Network is Expected to Rise

In today’s business, everything from fundamental processes to external relationships with business partners, suppliers, and clients depends on the support of a robust and efficient network. However, network infrastructure can be costly to set up as it entails quality devices, connections, and dedicated professionals. This is where Managed Network comes in. Companies can now outsource network functions to a third-party service provider that has the technology and workforce to supplement business aspects like networking, communication, and security.

What is a Managed Network?

Managed Network refers to a network communication created by, managed, and protected by a third-party service provider. It is done by outsourcing all or a part of a company’s network solutions, delivered through the cloud or by the provider’s in-house infrastructure.

The managed service provider (MSP) may deliver primary access to a network and transport channels like the LAN and WAN, software-defined WAN (SD-WAN), and virtual networks. They may also provide unified messaging, WAN optimization, managed firewalls, network administration, and virtual private networks or VPN.

Part of the appeal of the managed network is the flexibility it offers. The business may hand over operational aspects that can best be handled by the service provider so the in-house staff can focus more on core business competencies. It is mainly a service necessary for large organizations such as financial institutions, government agencies, and medium-sized enterprises.

Most common managed network services are offered by telecommunications companies. Legacy WAN, consisting of a hub-and-spoke MPLS-based network, is a basic deliverable of managed network, but globalization and mobile solutions call for more robust and dynamic connections.

Ongoing Demand for Managed Network

Since a managed network is handled by a third-party service provider, the complexities and risks are transferred to them, enabling businesses to attend to other aspects of their operations. Managed network services are steadily rising in demand in the corporate and entrepreneurial world.

There has been a boost in managed network services, and it’s due to digitization, globalization, and cloud computing use in recent years. Companies that leverage the cloud also see an increase in their operational complexity, which necessitates high-expertise deployment from third-party providers. As organizations depend more on artificial intelligence, Internet of Things, automation, robotics, virtual and augmented reality, entities like security, network uptime and network services have become a priority that is better fulfilled by an experienced MSP.

In 2018, the worldwide managed services market rose to $166.8 billion, reflecting the role technology has over business orientation and expansion. With a managed network, an organization can effectively reduce costs, enhance productivity, and improve its performance. The sector is expected to grow to $319.5 billion, with a CAGR of 11.5% by 2024. MSPs can help slash network costs by up to 15-25% for businesses.

Telecoms are seeing the willingness of clients to pay a premium for a managed network, which is bound to take over unmanaged connectivity as more advanced technologies are innovated. Today, solution-based services are overtaking feature- or price-based offers. Clients avail of managed network services because they are given the power to choose which specific service that they require without having to worry about infrastructural upgrades, maintenance, and operation.

Benefits of a Managed Network

The most significant benefit any business can have when they deploy a high-expertise managed network service is that they can remain competitive in a saturated market. With many competitors wanting to take centerstage, leveraging technology is the next logical step to take in the current landscape. The business can rest their worries and trust the MSP to keep them on top of the game.

Reducing the overall network costs is also a feature that managed network services can provide. Since the organization surrenders all or a part of their ICT infrastructure to an MSP, they also need not pay for infrastructure upgrades unless necessary. Hiring professionals dedicated to unmanaged connectivity in-house may also incur expenses that can be avoided when an MSP is enlisted for.

A third-party service provider has experts in the field of managed network and is therefore privy to new and leading technologies that would otherwise be too expensive to integrate to in-house infrastructure. With an MSP, innovations are quickly implemented and go live right away, as opposed to weeks or months of setting it up in-house.

World-class Services

Leveraging technology in the world of business has become more of a necessity than an option in recent years. To stay on top of the game, a company has to strongly consider hiring a service provider to deliver a managed network. This way, issues like limited resources and lack of IT expertise are effectively remedied, which also helps the business focus on the more critical aspects of running their operations.

We at 3Columns provide world-class managed network services, with all its advantages. Contact us today to learn how you can implement it in your company.

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