28 February 2011

Trends in Local Area Networks
Why LAN outsourcing is "in" in 2011!

Since 2008 and 2009 when the manufacturers succeeded in stabilizing prices reductions in the enterprise market and even achieved some improvement, the market has fallen apart in 2010. While some are satisfied with 50% off list, Service Providers have fought for up to 80% discounts on vendor list.

For the first time in almost 10 years Service Providers clearly have better conditions than large end users. This fulfils an important prerequisite for meaningful outsourcing.

The introduction of a complex process model such as ITIL V3 along with personnel reallocation towards the East, such as Romania or even India, open further possibilities for Service Providers.

It is no wonder that more and more hard boiled "owner / operators" are switching to Managed Services. A must for a comprehensive service catalogue with prices under €6 / month per active LAN Port.
2011 will be a year of network outsourcing.