“Legacy networks are frustratingly obsolete to the modern enterprise — their changing requirements outstrip what telcos can deliver. That’s why we’re building innovative managed network solutions on our next-generation Multi Services Platform, MSP, transforming how large enterprises do business today”.
J u l i a n Pay n e , H e a d o f D ata P r o d u c t s, C a b l e & W i r e l e s s
Keeping up with enterprise needs
Although many service providers already offer business VPN services, they are often implemented on first-generation IP/MPLS networks, which were designed to deliver an earlier generation of services over legacy access networks. With first-generation networks, implementing QoS is frequently labor intensive and costly, and existing edge devices offer a narrow range of services and poor access to applications. As a result, many existing VPN services provide only limited flexibility and QoS capabilities. They are also connectivity oriented — not service oriented — restricting service providers’ ability to generate new revenues.
The benefits of Managed Business Networking services
Many enterprises are already embracing managed business networking services, such as MPLS-based Carrier Ethernet VPNs and IP VPNs, because they can provide higher bandwidth, superior QoS and application-level SLAs. As a result, the market for these services is already around 19 billion Euros globally — and is expected to grow to over 32 billion Euros by 20131. Managed business access services can also meet the diverse connectivity needs of enterprises, while managed business security services satisfy security requirements.
Figure 1. Managed Networking Services Market Forecast
| 35,000 | | | | | |
| 30,000 | | | | | |
| 25,000 | | | | | |
€ (M) | 20,000 | | | | | |
15,000 | | | | | |
| | | | | |
| 10,000 | | | | | |
| 5,000 | | | | | |
| 0 | | | | | |
| 2008 | 2009 | 2010 | 2011 | 2012 | 2013 |
Managed business security
Managed business access
Managed business VPN
1Source: The 2008-2013 Global Managed Services Market Forecast, InfoTrack, March 2008
Alcatel-Lucent Managed Business Networking Solution 3