In large, complex networks, enterprise system management
is extremely expensive, with implementation costs potentially
running into seven or eight figures. But the functionality could be
achieved with just a telephone and a helpdesk number.
A cynical outlook? Absolutely, but there are many who
think the same way - and with evidence to back up their
arguments.
A few years ago Broadband-Testing researched enterprise-level users
of major network management packages and found that very few were
ever fully deployed despite the costs involved - or sometimes
because of them.
In one instance just the first module of a management application
suite had taken the user nine months to successfully deploy - and
the man in charge of the roll-out was chairman of the software's
user group, so he should have known what he was doing.
In another example, a carrier tried to deploy two well-known
network management suites and gave up both within a year, switching
to what was at the time a far less famous but lower-cost product
which did the job and took only two weeks to change to.
Then there is the one about the entertainments company which, on
trying to discover why the network management system it had
installed was not improving downtime, found that 72% of its network
traffic was management data. SNMP (Simple Network Management
Protocol) can be a real killer if not configured correctly, as many
companies have found to their cost.
There is a recurring theme here: the problems involved in
successfully deploying a network management system. In other words,
it is one thing to spend thousands of pounds buying a product, but
another making it work properly.
An obvious answer is to outsource your entire network management
requirements. After all, how many people really want to administer
network adds and changes, identify faults, resolve them, compare
network performance and behaviour?
The problem with outsourcing network management to date is that it
has been too expensive for most companies.
The irony, of course, is that the smaller the company, the less
likely it is to have members of staff who are capable of resolving
a networking problem. So, by default, they are the ones who most
need outside help, but who can least afford it.
John Earley, of Optimised Networks, a start-up focusing exclusively
on the provision of IT and network monitoring for SMEs, suggests
that in the past, would-be providers of outsourced network
management to smaller businesses got the basics wrong.
"Return on investment is arguably where suppliers have misread
their ability to persuade smaller enterprises of their value
proposition," he said. "Although downtime may cost large
enterprises six- and seven-figure sums, the same is not true for
SMEs, whose employees will always endeavour to find something
useful to do if the computer fails periodically."
Of course, that is not to say that SMEs do not appreciate downtime
costs. Earley believes it is simply that they do not audit
associated costs and refute figures presented by those with a
vested interest in network management systems. He noted that
low-cost software products have enjoyed limited success among SMEs,
which have tended to invest less than £1,000 for software that is
supposed to be in permanent operation, only to decommission it,
preferring to use it as a trouble shooting utility.
The argument here is that the time required to administer such
systems is disproportionate to the value returned - a point of view
that stacks up well when you consider that even free software
products have failed to satisfy the needs of most SMEs, which lack
the internal technical skills to make them work.
Then there is the argument that SMEs simply refuse to invest time
and money in network management software that they see as only
being of occasional use and primarily for when something goes
wrong. In other words, it is a case of the "insurance syndrome".
Even when a company has the in-house expertise to use management
software, it is common for it not to spend money up front on a
network management product.
Phil Snell of Limbo Creatives, which produces a change management
software suite called Deltalert, believes one answer lies in
renting management software tools on an as-needed basis. "I can see
why someone would not want to spend money on a product that they
believe they will hardly ever use," he said.
"So, given that software can be downloaded as and when needed from
the internet, why not offer a range of online management tools,
downloadable for rent?"
The Deltalert change management tools are based on the idea that
network problems mainly arise when something is changed. They are
all downloadable and are designed to be up and running within
minutes of installation.
The tools have also been designed so that they can be used remotely
over unpredictable, low-bandwidth internet connections, so they are
ideal for low-cost, outsourced management services.
This has been a shortcoming with many management software suites in
the past, which have been designed for use on high-bandwidth Lan
connections, despite many networking problems arising in satellite
or branch offices with low-speed Wan or internet connections to the
main office.
However, the SME market is finally attracting the interest of both
the management software giants and managed service providers which
have previously focused on the enterprise and ISP markets.
An interesting development in this respect is the collaboration
between Computer Associates and iRevolution, where the latter is
using CA's Unicenter management system to provide managed services
targeting SMEs.
The concept is simple: use iRevolution's own network operations
centre to provide 24x7 monitoring to third parties. The
proposition, which is charged at £75 per month per application
(with an initial focus on SQL), appears more realistic than the
pricing model traditionally used by managed service
providers.
Another initiative that employs CA technology has been packaged by
PC World Business, which is increasingly active in the SME market
place. A key difference of the PC World Business offering is that
it provides a helpdesk service for desktop users, charged at only
£12.50 a month per seat. However, SMEs may be put off by the
associated server monitoring charge of £200 per month per server,
which offsets the otherwise realistic cost model on offer.
According to Earley, hidden costs are the key element to be avoided
in providing outsourced management at the SME level. His company
has a simple pricing policy - £19.95 per month, with no minimum
contract requirement.
The software was developed in-house, so no third-party product
royalties are payable, helping to keep costs down. Another enabling
factor in this pricing model has been Optimised Networks' decision
to outsource its own network operations to India.
"Some people argue that this adds an element of controversy to our
business model, but the reality is that the technical skills of
staff in India match those in the UK at a fraction of the cost,"
said Earley.
"We also appreciate that users prefer a 'closer to home' contact,
so we always look to provision services through local resellers who
'front' the service and provide added value through, for example,
break-fix maintenance and helpdesk services."
Steve Broadhead runs Broadband-Testing Labs, a spin-off from
independent test organisation the NSS Group. Author of DSL and
Metro Ethernet reports, Broadhead is now involved in several
projects in the broadband, mobile, network management and wireless
Lan areas, from product testing to service design and
implementation.
www.broadband-testing.co.uk