As networks grow more complex and cybersecurity needs more sophisticated, enterprise are turning to dedicated MNS providers, ISG Provider Lens report says
Enterprises across Europe are increasingly turning to managed network services providers to advance their digital transformation agendas, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.
The 2024 ISG Provider Lens Enterprise Managed Network Services report for Europe finds firms are seeking managed network services (MNS) providers to help them address the growing complexity of modern ICT infrastructures and the growing threat of cyberattacks, often because they lack the internal skills to manage their networks.
Ongoing advancements in digital infrastructure have spurred greater demand for MNS and network-as-a-service (NaaS) offerings, accelerated by newer technologies such as AI and GenAI, which demand specialized expertise. Distributed applications and hybrid operating environments-where workloads and data reside in on-premises, cloud and edge network facilities simultaneously-create additional complexity.
"Enterprises are relying more on multicloud configurations, and migrating owned assets to network-as-a-service, to enable business transformation," said Jon Harrod, partner, ISG Network Advisory. "Once they do, they find they can reduce their IT capital expenditures, rationalize staff and training, and mitigate the risks that typically come from continual software updates."
MNS encompasses a variety of services, such as enterprise planning and advice, provisioning fixed and mobile infrastructures to streamline network operations, managing and monitoring remote installations, fault diagnosis and configuration management, and disaster recovery. Enterprises are adopting a plethora of network technologies provided by MNS, to gain a competitive edge.
Further advances in network function virtualization are spreading enterprise workloads across mobile, branch and edge devices in the network. This adds complexity and stress to an enterprise's internal ICT workforce. The need to tackle such complexity is a major contributing factor to the continued growth of MNS, although on-premises and hybrid computing environments continue to be the largest segment of networks managed by MNS providers.
MNS cybersecurity services cover everything from network provisioning, operations and management to network monitoring. They provide robust security through firewalls, audits, data integrity measures and sophisticated intrusion detection and prevention systems, while offering ongoing software update management and specialized support.
"Enterprise networks have to be very advanced and secure," said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. "The bigger the enterprise, the more complex and demanding its network becomes. Improper management of these networks is in and of itself a cybersecurity threat. This is what gives managed network service providers the edge."
The report also explores other trends, such as the challenges Europe's CIOs and CISOs are facing in articulating the ROI expectations for their ICT investments. These executives expect managed service providers to offer technical solutions and serve as strategic partners in quantifying the business impacts of their investments, as well as consulting services to align investments with the enterprise's business objectives.
For more insights into how MNS providers are meeting the challenges of growing network complexity and more complex enterprise customer demands, see the ISG Provider Lens Focal Points briefing here.
The 2024 ISG Provider Lens Enterprise Managed Network Services report for Europe evaluates the capabilities of 33 providers across three quadrants: Managed Network Services Evolution, Managed Enterprise Connectivity Solutions (DIA, VoIP VPN) and Network as a Service (NaaS).
The report names Accenture, Colt, Deutsche Telekom, GTT and Orange Business as Leaders in three quadrants each. Comcast Business, HCLTech, NTT DATA, Verizon Business and Wipro are named Leaders in two quadrants each. Kyndryl and RIEDEL Networks are named Leaders in one quadrant each.
In addition, Capgemini, Computacenter and DXC Technology are named as Rising Stars companies with a "promising portfolio" and "high future potential" by ISG's definition in one quadrant each.
In the area of customer experience, Accenture is named the global ISG CX Star Performer for 2024 among enterprise managed network service providers. Accenture earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence program, the premier quality recognition for the technology and business services industry.
Customized versions of the report are available from Deutsche Telekom, GTT and Orange Business.
The 2024 ISG Provider Lens Enterprise Managed Network Services report for Europe is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens Research
The ISG Provider Lens Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.
About ISG
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world's top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.
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Will Thoretz, ISG
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Philipp Jaensch, ISG
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