Robust network environments – no longer a ‘nice to have’

Almost any CIO you speak to today will tell you that the IT organisation is increasingly being tasked with delivering an enhanced technology operations environment with the most efficient use of resources. This is especially true in the network environment. Traditionally, when faced with lapses in scale or internal expertise, network managers have opted into project-based engagements with third-party providers or leveraged staff augmentation services. Today the option of engaging a Managed Network service provider is gaining in popularity to be able to address the requirements of efficiency, flexibility and agility within the sourcing strategy. Yet identifying service providers with the right level of management capabilities and the capacity to deliver robust operations is no easy task.

FST. What is behind the growing interest in engaging with Managed Service providers?
SP. Today, the cost of providing expert and responsive support for your end users is prohibitively high. The simple reason for this is because the tools they use daily have become increasingly complex, spanning a range of products from various vendors. Failing to provide adequate support will simply escalate your overhead costs. In all likelihood, end user support falls outside of your core business focus.  More and more companies are recognising the merits of giving that responsibility to the experts.

FST. What should CIOs be looking for when evaluating Managed Service Providers?
SP. Firstly flexibility is extremely important. The contracts governing outsourcing engagements should be responsive to the enterprise’s changing business needs. A collaborative approach to SLA development between client and Service Provider can go a long way to achieving SLAs that are just that. All SLAs aren’t created equal – nor should they be. Dimension Data’s experience with clients across the globe has shown us that a simple, standard, one-size-fits-all approach to SLA development is not appropriate. Ideally, organisations should look for partners that have a comprehensive suite of service level offerings and allow them to pick and choose amongst different service levels according to their specific business requirements.

FST. There seems to have been a strong move towards collaboration between Service Providers and vendors in delivering to clients needs in recent years. Why is this, and what does it mean for the market?
SP. The steady rise of collaborative services is a direct response to a gap in the market. Traditionally, organisations had to choose between two options when purchasing IT infrastructure services. On the one hand, they could opt into direct access to the manufacturer’s support team or, on the other, work with a multi-vendor systems integration team, in order to derive ownership of the whole solution. A joint solution combining manufacturer and global systems integration expertise is an attractive option as it significantly reduces the risk and offers the client the ‘best of both worlds’.  

For example, Dimension Data and Cisco recognised that the recent changes within the IT services landscape presented us with a unique opportunity and that through collaborating, we could fill this gap in the market. The first of these collaborative service offerings is a maintenance service called Uptime powered by Cisco Services. This joint support model combines the best of both Dimension Data and Cisco service offerings to support a client's IT infrastructure, assuring business continuity.
 
As a next step, we are looking to take our integrated delivery capability to the next level, by developing a joint engagement model that will potentially provide network and application performance SLAs backed by both Cisco and Dimension Data. More and more, especially in financial services organisations, our clients are under pressure to do more with less. Budgets are shrinking, yet end-user expectations continue to spiral. Our clients are revisiting sourcing strategies and looking for partners who can help them drive efficiencies. Currently, Dimension Data and Cisco are involved in a number of strategic engagements with financial services clients that involve us working in partnership with the IT organisation to distil the needs of the business from IT, and map out a service level plan that comprehensively addresses those needs.