The concept of network management outsourcing isn't new.
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Tysdal says a reseller building a network operations center from scratch would have to sign up 400 to 500 customers just to break even. NetSolve, he says, provides a faster time to market for resellers eyeing the remote network management market.
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NetSolve Inc., of Austin, Texas, is another remote-services provider with an eye on the channel. It has signed up 10 resellers, which get a cut of the monthly customer fee. Craig Tysdal, NetSolve's CEO, is on the lookout for another dozen or so resellers--IT companies or carriers--with at least $50 million in annual revenue and 20 to 30 salespeople
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The concept of network management outsourcing isn't new. Large integrators like AT&T Corp., Electronic Data Systems Corp., IBM Corp. and Infonet Services Corp. have offered managed network services for some time. But a new sweet spot in the market has been identified: midsized companies with networks that span from 20 to 100 major connection points, or nodes.
Now comes the handle. Carney predicts the market for managed network services aimed at midsized companies will be worth $200 million in 2001 and $450 million by 2002.
The market is pretty open," says Michael Turner, vice president of marketing at NetSolve Inc. (www.netsolve.com), by all accounts the top vendor in the midsized net management services niche. "There are an awful lot of [vendors] out there with 10 or fewer customers."
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Whatever their decision, companies have many options. Concord Communications Inc., Kaspia Systems Inc., NetGuard Inc., Network Associates Inc., NetReality Inc., NetScout Systems Inc. and VitalSigns Software Inc. have developed various kinds of performance monitoring tools. International Network Services, Netops Corp. and NetSolve Inc. focus mainly on performance monitoring services
The list of possibilities continues to grow because networks have entered a new stage of evolution. "Only after a company puts a stable network infrastructure in place does it worry about performance issues," said Michael Turner, vice president of marketing at NetSolve
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But others beg to differ. Andrew Levi, chief executive of Dallas integrator Aztec Systems Inc., is banking on remote support to generate really big bucks. Levi says even help-desk support, which yields up to 30 percent margins, is a commodity. By contrast, he notes, remote support can bring margins approaching 70 percent. |
