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Over the years there has been on constant split between UK based organisations vs their US counterparts. The US appear to procure their MPLS capability as wires only, i.e. self managed vs the UK’s tendency to outsource.
We are witnessing companies such as BT experience more traction with self managed WAN products such as IP Connect unmanaged which allows clients to procure network connectivity and not management. Note: For UK readers, IP Connect replaces the IP Clear product.
As a rule, service providers are traditionally a little cumbersome to deal with when making adds, moves and changes. in many ways, the lack of agility when making changes is perhaps one of the main reasons why there is so much churn in the industry. In our past life, we assisted organisations with WAN procurement which provided an insight into why businesses were looking to change service provider. One of the main reasons? Making changes to the network took way too long, the change was often incorrect and the documentation reflecting the updated network was poor.
With the above in mind, I would have expected to see less churn in the US market simply because businesses are in a position to make their own changes to the network. I believe this tells us that the frustration with service provider agility is simply one reason why an organisation procures a brand new WAN and the sum reflects a number of issues and problems.
When outsourcing to a service provider, you are effectively reliant on the provider to configure and maintain the capability of your edge routers (and switches potentially). There is an obvious benefit here since outsourcing allows your IT team to focus on other areas of the business rather than the WAN. However, the negative occurs when the provider simply does not act quickly enough and / or misunderstands requirements resulting in incorrect delivery of the change. In my experience of working with and for large service providers, we’ve seen the simplest of changes take weeks which has a profoundly negative effect on the business. When these kind of delays occur, the WAN becomes a bottleneck rather than an enabler. In 2014, you would also expect to see innovations in the field of change requests and for sure we are seeing some improvements. However, the majority of providers are very much still reliant on the same bureaucratic processes. This said, we have seen some real innovations with portals now providing an easy to access method of requesting changes with real time updates as progress is made. These portals generally only support a ‘base’ level of changes though and the more complex or un-productised changes still very much require a manual process.
The clients which adopt an in-house managed service approach are well positioned to make changes as and when required. However, any changes which require the provider to also alter the configuration on their network may still result in similar delays to those experienced with outsourced capability. In general though, straight forward changes are completed quickly as and when required which provides an agility which the service providers generally cannot meet. The negatives revolve around having to ensure your IT staff are well positioned to troubleshoot, configure and maintain the required due diligence required with a corporate network. As MPLS is a provider network protocol (and not deployed on your edge router), the actual configuration required is relatively simple. Self managed networks are more often than not fully monitored by the service provider which is key to leveraging their knowledge and insight into the end to end connectivity.
The last point to make is that outsourcing does not have to be provided by the service provider. There are many opportunities to leverage the ability of niche managed IT companies to look at providing an alternative. As cloud services are becoming more prevalent, IT companies are leveraging their capability to provide a ‘one stop shop’ for managed services. I believe we will see this occur more as we move forward.