Five traits of a world-class managed services provider As more companies choose managed services for communications, they should be very specific about what they need — and expect — from their service provider. Large and midsize businesses are increasingly turning to managed services providers (MSPs) to operate and maintain their enterprise communications systems. Companies that outsource to MSPs including transformative initiatives consulting company, recently can benefit by: that support revenue and profit conducted competitive research growth. Mobile solutions, video- for Avaya to learn more about conferencing and other unified current vendor offerings and communications tools boost help identify attributes that IT collaboration and productivity executives should look for in a • Leveraging MSPs to help manage while reducing travel expenses and managed services relationship. the complexities of integrating improving personnel management. This white paper discusses new and legacy technologies An overextended IT department five characteristics that were across multiple platforms. can be relieved of a significant identified as traits of a world-class systems management burden, managed services provider. • Reducing their operational costs and increasing network and application reliability. • Accelerating the business through a shift to unified communications allowing key personnel to focus on strategic priorities. environments while reducing overall risk and realizing full A brief look at the spectrum of MSPs An often-overlooked consideration According to Gartner, Inc., nearly in choosing an MSP is that different half (48 percent) of U.S.-based Cost reduction and service reliability providers focus on different organizations plan to increase their remain key reasons why companies priorities, such as specific product use of managed services. By doing turn to managed services. However, families, cost containment or risk so they hope to overcome some MSPs can help companies add mitigation. MarketBridge, a brand of the barriers to adopting next- business value in other ways as well, research and management generation technologies, including productivity earlier. 2 | avaya.com large capital investments and spending for training and tools. They also hope to rein in lines of business that are pursuing their own technology plans unaligned with overall IT strategy. Traits of world-class services providers To many, outsourcing and managed services are the same. However, many of today’s businesses do not necessarily want a service provider to simply take over their While planning to expand use of MSPs, cost-conscious organizations are taking a close look at their provider relationships, including traditional MSPs, systems integrators and providers of direct manufacturer support. The MarketBridge survey sought to identify how leading MSPs are focusing their offerings and services. One category of providers stresses their support for business transformation, including expertise in unified operations. Rather, they may just want a provider with the expertise and resources to address network and application performance according to established metrics. For example, instead of contracting with an MSP to totally take over a contact center, a business may want to keep tight control over what the center does and how it operates, directing the MSP to meet specific criteria, such as call handling times and how to handle alarms. communications and contact center applications, and their willingness to share risk with clients through flexible arrangements. Another category focuses on cost control, service predictability and transparency, along with multivendor support. And a third category focuses on using their expertise to help customers Focus on customer performance and growth Reducing costs and improving efficiency are objectives of virtually all managed services arrangements. World-class MSPs address these priorities, but they also help businesses use advanced applications, such as unified communications and contact center technologies, to drive top-line revenue growth and bottom-line profitability, improve the return on current investments, and increase employee productivity. This trait helps fill a growing need in the market: Many companies are challenged with deploying the component applications of unified communications, such as video, instant messaging, presence, Web In this new, more demanding environment, the MarketBridge survey revealed five traits that stand out as indicative of a world- collaboration, voice and mobility, and they are unable to achieve the effects of fully deployed seamless implementation and operation. class services provider: a focus on customer performance and growth, superior application management, flexibility, accountability, and standards-based services. For example, Session Initiation Protocol (SIP)-based technology can help companies deploy more enterprise communications solutions capture the benefits of their that promote mobile, nimble own technology investment. workforces that can quickly seize 1 http://www.virtela.net/press-room/industry-news/networking-news/gartner-report--48-percent-of-u-s--companies-to-increase-managed-servicesadoption-in-2010-19885492 avaya.com | 3 business opportunities. But Characteristics of a world-class cost-effective transition to SIP MSP that contribute to performance requires a defined road map to and growth include: avoid being overly capital intensive or disruptive to the organization. An MSP can develop and manage the entire SIP-based unified • Ability to provide multivendor support • A managed services platform communications or contact center that can quickly adapt to solution using a predictable, emerging technologies per-user, per-month pricing model. The customer doesn’t have to deal with refreshing the operations team’s skills or ongoing software and hardware updates. Next-generation unified communications • A strong focus on applications in addition to network elements • A strong focus on user experience monitoring to address actual and perceived service level A world-class MSP can also guide performance the transition to new technologies and contact center in contact centers — a major user solutions enable of communications and computing to improve overall solution resources in many organizations. performance businesses to conduct • Personnel who understand how The MSP can manage deployment integrated, personalized and operation of Web-based and real-time applications and the integration communications using of social media into the center, Next-generation unified communica- enabling such activities as tions and contact center solutions monitoring and responding to enable businesses to conduct other channels. customer tweets and Facebook integrated, personalized and real- However, these postings. This allows the MSP’s time communications using video, customer to take advantage of voice, data and other channels. leading-edge technologies in a However, these solutions aren’t timely manner and address the simple. video, voice, data and solutions aren’t simple. Superior application management latest market trends both quickly and without an outlay of capital World-class MSPs are staffed by investments. highly skilled personnel who understand both the backbone network 4 | avaya.com and the applications it supports. center agents and the broader World-class MSPs offer flexible Moreover, they understand how to workforce and can provide a options that meet these needs. optimize application and network road map for implementation. Services can be customized performance in alignment with the based on the customer’s specific objectives of the business and the Factors to consider in assessing requirements, from simple system needs of the end users, both within the application capabilities of an monitoring or hosting to total the business and with outside users MSP include: infrastructure outsourcing. Services such as suppliers and customers. The MSP can execute site-by-site cutovers with awareness of how changes affect existing systems so can be segmented within an • Staff experience • The number of customers, ports and seats the provider manages disruptions for users are minimized. They can then manage and monitor operations going forward so peak user productivity is possible. understands SIP • What standards the provider communications and call center environments. For example, once a company has enhanced its contact center with instant messaging, it may want to bring in Twitter feeds. Or it may want to deploy the infrastructure for video kiosks or mobile applications in the unified communications environment. Leading MSPs understand how different applications fit together to improve the performance and productivity of both the contact Flexible procurement and financial options are also key. Approaches can include capital expenditure, operating expenses or leasing, as Flexibility abreast of the latest application continuing evolution of unified and can be delivered on premise, remotely or in the cloud. An MSP can also keep the developments, supporting the services, geographies or applications • How well the provider applies to its services customer’s IT department organization by operating units, well as assets-on-books arrangements that include professional Businesses want to leverage managed services in different and implementation services in an overall agreement. ways. One may be standardized on a single vendor’s equipment and software, while others may have multivendor environments. One company may want to mix new technology with its existing systems so it can wring more from past investments while charting a future course. Another may want to Other options may include customizing a scope of work to service level agreements (SLAs) and specific service definitions, such as moves, adds, changes and special requirements. In a call center, the MSP may take over both service desk calls and end-user calls, freeing internal staff. take advantage of cloud computing. One organization may want an MSP to take over all its networks and applications, while another wants to pass off only a portion. avaya.com | 5 Among the traits of a flexible MSP are: • Buy and/or build arrangements Accountability Historically, managed services arrangements were akin to what tailored to a customer’s is today considered outsourcing. spending model An MSP would take over full management and operation of • Pricing models that accommodate the changing needs of the functions such as network services or contact centers. experience and capabilities that minimize the learning curve at the beginning of the relationship and adapt to changes in the customer’s Now, however, organizations face greater accountability demands from shareholders, regulators and other stakeholders. In turn, they are from MSPs. to maintain control over their environments while still shifting operational responsibilities and risks to MSPs. They want to specify what functions an MSP will perform and | avaya.com for underperformance. A key differentiator of a world-class MSP is that it provides strong governance and is a trusted, accountable a vendor but an extension of the customer’s IT department that also makes recommendations on the organization’s technology road map. The MSP understands the customer’s business applications In today’s world, businesses want 6 controls, including financial penalties demanding greater accountability business over time • Customizable services through contractual SLAs and other adviser. Such a provider is not just customer • Technical and business how, and the MSP is held accountable and what they mean to the customer’s broader value chain. It can advise on solutions the customer can implement and use to better drive business performance, extend capabilities and reach new markets. And it The use of standards — especially understands the controls needed one as widely recognized as to meet expanding regulatory the Information Technology requirements. Infrastructure Library (ITIL) — can help overcome these issues. Among accountability features Standards help specify what to look for in an MSP are: an MSP will do when it says it will monitor, operate and • Customer control and a customer-facing Web portal • Full transparency of tools, optimize a network based on agreed-upon and documented Face the future with the right MSP partner Businesses are looking for more than reliability and cost reduction from MSPs. Today they want help in transforming their organizations, deploying new technologies to gain competitive advantage, and using communications to increase productivity and collaboration. prerequisites. processes and knowledge It is important to remember • A real-time network view • Performance guaranteed through SLAs that an MSP that provides part of the solution is likely to end World-class MSPs offer up part of the problem when superior application issues arise. Unless the provider Standards-based managed services Managed services relationships can dissolve for reasons such as an actual breach of contract, a customer perception of a breach is willing to take on multivendor management and accountability, finger pointing network expertise will inevitably ensue — the network across multivendor vendor says it’s a router problem, environments, as well the router maker says it’s in the PBX, and so on. as flexible options that meet a variety or failure to meet the financial goals of the pact. In any of these cases, the primary cause of problems is often a lack of alignment between the MSP and Key features of a standards-based of needs. Services can approach to managed services be customized based include: • Use of ITIL definitions specific requirements • Agreement on nonstandard segmented in many customer on the definition of terms. Common terms such as “capacity” and “configuration” appearing in a statement of work can be surprisingly open to interpretation. on the customer’s nomenclature • Responsibility for multivendor environments accepted by the ways and delivered on premise, remotely or in the cloud. MSP • Clear understanding of additional pricing for incremental tasks avaya.com | 7 Not all MSPs are equipped to handle the job. Those that are will have the capability to support a customer’s growth and profitability goals, a real focus on application expertise, flexible arrangements, the willingness to demonstrate accountability, and a standardsbased approach that avoids confusion and promotes an open relationship. By considering these five traits of world-class MSPs, IT executives can be better prepared to make a choice they and their organizations can thrive with both near-term and over time. About Avaya Avaya is a global leader in business communications systems. The company provides unified communications, contact centers, data solutions and related services directly and through its channel partners to leading businesses and organizations around the world. Enterprises of all sizes depend on Avaya for stateof-the-art communications that improve efficiency, collaboration, customer service and competitiveness. For more information, please visit www.avaya.com. 8 | avaya.com © 2011 Avaya Inc. All rights reserved. Avaya and the Avaya logo are trademarks of Avaya Inc. and are registered in the United States and other countries. All trademarks identified by ®, ™ or SM are registered marks, trademarks and service marks, respectively, of Avaya Inc. All other trademarks are the property of their respective owners. Avaya may also have trademark rights in other terms used herein. References to Avaya include the Nortel Enterprise business, which was acquired as of December 18, 2009. 03/11 • SVC4719