The network management requirements of different types of enterprises and
service providers have traditionally been unique to each market segment and
corporate culture. However, a number of forces are creating more common ground
among these environments. In particular, interdependencies between enterprises
and service providers–and among different types of service providers–have
added a new layer of complexity to planning and implementing successful
management strategies. This has given rise to the concept of Network of
Networks. Recognizing these interdependencies and managing them proactively is
the right tack to take for IT organizations seeking to gain control of
infrastructure investments and service commitments.
One way of looking at this continuum of interdependencies is through the
concept of the extended enterprise. The extended enterprise comprises network
services delivered by both internal staff and service provider companies. All
players are increasingly sharing processes, data, metrics, and service-level
commitments. For instance, an enterprise might provide end users with an
e-trading service that depends in part on outsourced Web-hosting, outsourced
T1/E1 connections, and in-house database management. The end service is an
aggregate of all the enabling services and is dependent on each of them for
success.
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Service providers that acknowledge these interdependencies and collaborate
with partners on performance issues will have an advantage over their
competitors that draw absolute boundaries around what only they can control. The
reason is that clients are increasingly looking for end-to-end service-level
commitments rather than "islands" of guarantees. This is not to say
the management model for enterprises and service providers will converge. There
will remain significant business and operational differences. For example,
service providers need to create directly billable services, while enterprises
remain largely concerned with managing costs and fulfilling corporate business
requirements.
However, enterprises will increasingly derive external revenue from IT
services and are also learning to leverage internal charge-back systems, or at
least usage-based analysis, for effective business planning and cost
accountability.
Can India adopt best practices?
Looking into organizational and business interdependencies, understanding
core requirements for management, and knowing how to integrate new technologies
into mainstream management are all actions that create a solid foundation from
which to approach any management strategy. Each of the integrated networking
technologies–such as IP telephony, wireless, VoIP, VPN, and storage–reflect
strategic business choices for Indian companies.
Globally, enterprises will consider whether to manage or outsource
capabilities. Service providers will make decisions on whether to provide new
services based on these technologies or partner with specialty service providers
to deliver solutions to enterprise customers. India’s challenge–how soon can
we look to adopt this best practice to make our businesses more competent?
Effective outsourcing, management and partnering of networking infrastructure
has become a competitive edge for all businesses in all markets - and might, in
fact, become the single most important differentiator for growing a business
smartly and profitably.
Manoj Chugh
The author is president of Cisco Systems (India & SAARC)