Be penny wise and never pound foolish again!
As I pointed out in my last blog, businesses are looking at and moving to “as-a-service” models so that they are no longer being held hostage by their network. This concept of pay-per-use is quickly becoming the norm for the IT industry.
To take advantage of this, you need to first research the differences between the various providers such as the services they offer and just how much equipment you need upfront and on premises before you can start to benefit from this pay for use concept. One reason companies like this model is because they can pay for the services on a monthly basis that is spread out over a long time instead of having to come up with large sums of money up front.
Another reason this is becoming so popular is the fact that technology is constantly changing. You’ll quickly realize that your budget can’t keep up with the constant large expenditures for the latest, and greatest, network products and applications.
The complexity of the networking industry
Zeus Kerravala* of ZK Research, recently pointed out that most technology markets have already shifted to this aaS model. “However, one market that has yet to evolve is the networking industry.” This market experiences large spending spikes and has many complexities. “A true network-as-a-service offering would simplify the procurement and management of network equipment. First, it would shift the purchasing to something that is more consumption based… organizations would pay for only what they are using and then expand the deployment as needed. This alone could save a significant amount of money over traditional purchasing methods.”
A comprehensive program is needed to support a vendor’s aaS network
Zeus’ point about simplifying the whole process means that vendors need to work harder so that businesses using their service don’t need to. A case in point is the solution that was recently evaluated by Mike Fratto** of Current Analysis. In the report, Mike’s perspective is “Very positive on Alcatel-Lucent Enterprise’s (ALE) Network on Demand (NoD), because it is a comprehensive program covering financing, go-to-market, sales enablement, technical support, and service enablement.” (Read the whole report.)
Channel business partners are key to successful aaS models
The reality is, most businesses do not know where to begin when it comes to deploying a network infrastructure that is based on the aaS model. The answer lies in the networking vendor’s channel business partners. They are the ones who will help you deploy this model and many will actually be taking on the role of a service provider, housing the equipment and applications that your business depends on. You want to look for networking vendors who have channel partners that are front and center in the vendor’s business plans, with go-to-market activities that includes training and tools.
Alcatel-Lucent Enterprise brings pay per use to the network
At CeBIT event in Germany this part March, we announced our entry into the aaS market. Zeus noted this in his recent article, “This is certainly a bold move for ALE but it’s a good one for a company whose market share is nowhere near the quality of the product it offers. NoD could get many customers that may never have considered ALE before to just try the product without having to make a significant financial investment.”
Why not take a test drive of our solutions today as-a-service and potentially realize significant savings for your company? Be penny wise and never pound foolish again!
* Zeus Kerravala is the founder and principal analyst of ZK Research.
** Mike Fratto is Principal Analyst, Enterprise Networking and Data Center Technology
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