If Sterlite Tech has to realize its 10X
dream, it is extremely important to
enable a seamless broadband delivery
with highly efficient telecom networks
for our customers globally.
With Sterlite Tech receiving the APO for
BSNL Wi-Fi, it is a matter of pride that
we now have a fully integrated telecom
solutions offering with products,
services, software and applications.
These projects will be executed through
our partners but service support of 10
years+ during warranty and AMC will
be critical for successful completion of
all mandatory obligations and closure of
projects.
The whitepaper talks about how these
services can be effectively managed
and throw light on the managed
services models, how to choose a
managed network services provider,
best practices criteria for choosing
an MSP, types of managed network
services, challenges, advantages etc.
Introduction
Managed services are the practice
of transferring day-to-day related
management responsibility as a
strategic method for improved, effective
and efficient in built operations. Service
providers have offered their business
customers managed services for
broadband connections,VPNs, security
services, and IP communications for
years. Managed network services are
typically offered by a managed services
provider (MSP) on a subscription basis,
with some fee that reflects the network
services, bandwidth, number of users,
equipment, and service level agreement
(SLA) performance levels covered by
the customer contract.
The MSP staff monitors the health and
availability of the subscriber’s network
equipment and services to ensure
they operate smoothly and securely. A
managed services provider also offers
a single point of contact for network
trouble reports and a fulltime help desk
for user support.
What is a Managed Service Model?
A Managed Services model allows
an organization to outsource the
management, operations and delivery
of processes effectively to lower the
total cost of the business. This model is
attractive to organizations as the pricing
structure is based on regular monthly/
quarterly billing around service levels
and volumes, rather than per diem fees
associated with staff augmentation
Apart from this the most attractive
reasons for organizations to adopt a
managed service model is that the
supplier assumes the risk of transition
and future operations based on an
agreed, committed scope and tenure.
This is contrasted by the loss of control
and possible security issues in a staff
augmentation model.
However, like any pricing model one
need to watch out for the following risks
associated with this model and ensure
that they are handled appropriately
before signing the contract. The key
risks include:
a) Ability to define and monitor service
levels - Since the model heavily relies
on service levels, it is a must that
organizations should have ability to
generate and monitor these service
levels. Inability of an organization to
monitor service level may result in a
vendor overcharging due to lack of
transparency
b) Single vendor dependency - Once a
vendor is ingrained in the organization,
they may be reluctant to increase
scope.
c) May lead to loss of in-house
capability.
How to move to a Managed
Service Model?
Moving to a managed service will
involve a systemic change in an
organizations operating model. The
organization needs to follow a four
step process in order to implement the
managed service model.
The below figure shows how these
basic services support more advanced
services and the typical large enterprise
places in the network: headquarters,
branch office, and remote access.
Best Practices Criteria for
Choosing an MSP
When searching for an MSP, you
will likely find several companies to
consider. How do you evaluate these
providers and their service offerings to
make the best choice? The following
best practices provide helpful decisionmaking criteria.
Service Offerings: The MSP should
focus on understanding your unique
service needs and meeting them
with a business orientation that goes
beyond offering all customers a “cookie
cutter”solution. The provider should
offer network connectivity in a variety
of access speeds from DSL to DS3,
allowing you to select the right speed
for each user or remote location. The
broadband access service should offer
a high-speed “always on” connection in
a nationwide connectivity solution that is
easy to deploy, manage, and support.
The MSP should also offer businessclass hosted voice services in a range
of equipment and feature packages
with low start-up costs and affordable
monthly fees. To ensure superior quality
on voice calls, the MSP should maintain
high QoS levels for voice traffic and
guaranteed levels of service uptime.
Network, Voice and Security
Operations Capabilities:
The service provider should support and proactively
monitor its data, voice, and security
services on a 24/7/365 basis from
multiple redundant Network Operations Centers (NOCs) and Security
Operations Centers (SOCs). A
dedicated support infrastructure
ensures that the network services
perform to their maximum potential,
and that customers receive timely and
responsive technical support. The
provider should also give customers
complete visibility into network status
and performance via a Web-based
customer information portal, so great
service is extended to self-service
capabilities.
Certified Professionals and Industry
Partnerships:Delivering high-quality
managed network services requires
highly knowledgeable and skilled
network professionals, as well as
partnerships with leading equipment
and network capacity vendors. Ask a
potential MSP about the professional
certifications held by its employees
and its participation in vendor
partnership programs.
The Importance of Service
Level Agreements:Service Level
Agreements (SLAs) are a valuable tool
for assessing how well a managed
services provider maintains high
levels of network performance and
availability. These measurements
guarantee overall network uptime,
as well as response and resolution
times for network problems. For
greater confidence in the provider’s
performance, look for an MSP that
backs its SLAs with customer credits
when targets are missed.
How does Managed Network
Services help?
In a managed network services solution, we outsource the day-to
day operation and management of
your network to a managed services
provider. Outsourced network
management offers a viable option
for most communications services,
including:
- Network connections:Broadband
Internet access—including T1, bonded
T1, business Ethernet, DS3, DSL,
cable, and wireless broadband
- Remote access:Virtual private
networks (VPNs) based on Secure
Sockets Layer (SSL) and Multiprotocol
Label Switching (MPLS) that use the
Internet to provide remote sites and
users with secure access to an internal
business network.
- Voice: Carrying voice and data traffic
on the same circuits.
- Network security:Comprehensive
management of security elements to
mitigate network intrusions, attacks,
viruses, spam, and other threats
A managed services provider can
consolidate, integrate, and manage
all of these network services—giving
organizations cost-effective ways to
connect their business locations to
each other, the Internet, and business
partners.
How to zero in on the right
Managed Network Services
Provider?
After deciding to explore managed
services, the next step is finding
the right managed network services
provider. With so many types of
providers offering a range of services
and management models, the choices
can be confusing. Understanding the
different types of service providers
is the first step in making the right
decision for your organization.
IT managers may initially think of the
large telecom carriers as potential
managed network services vendors. It
is important to note that although large
carriers sell hosted network services
to small and mid-size businesses;
their real focus is on large enterprises
networks. Even for large enterprises
with geographically-dispersed
locations, services, and network
needs, the managed network services
offered by large carriers may not be
the best-fit or the most cost-effective
solution.
At the other end of the managed
services spectrum are small
“boutique” providers that offer hosted
services under a Bring Your Own
Bandwidth (BYOB) model, where
customers arrange for network links
and equipment. This model does not
provide the benefits of a provider’s
dedicated MPLS network or support
for network-based QoS and managed
security services.
For most organizations, the right MSP
can be found in the middle of the
spectrum—in an MSP that maintains its
own network and offers an extensive
array of managed services. With
this type of MSP, you can choose
if you want fully managed network
access, voice or security services, or
a combination of individual services
that match your business needs
and internal network management
resources. In addition, this type of MSP
can scale its services to fit as your
organization’s needs evolve.
Conclusion
By outsourcing to an MSP, Sterlite
Tech would be achieving increased
operational efficiencies while lowering
network costs by using managed data,
voice and security services. Some of
the benefits of relying on a managed
services provider include as tabled
below:
| Criteria |
Advantages |
| Better use of staff |
1. Allows agencies to focus human resources on strategic planning ore mission support
2. Access to leading network technologies and management
expertise, without high capital expenditures or on-going investments in upgrades |
| Cost savings |
1. A single point of contact reduces network costs and simplifies vendor management
2. Predictable monthly fee for network and management services; pay only for the networking services used
3. Using outsourced expertise avoids the costs of developing management and reporting capabilities |
| Simplified Management |
1. Proactive management of network services through 24/7/365 monitoring of connectivity and equipment,
2. Automatic fault notification, and responsive trouble management |
| Ability to use optimal technologies |
Adjust types and mix of hardware, software, skilled labour, capital investment and technology to support changes in mission needs |
| Service Level Agreements (SLAs) |
Well-defined SLAs guarantee response and resolution times for network problems to minimize impact on users |
| Rapid response to organisation and business changes |
Supplier is measured by ability to produce solutions |
| Closure of projects as planed |
Timely completions of PO obligations, realisation of payments without penalties and retrieval of BGs |
The below figure shows model of managed services could work effectively in Sterlite Tech
White Paper
By Yogesh Sharma
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