Managing Transformation Feature Editorial
November 16, 2009
Maximizing Effectiveness While Minimizing Costs: ICT in the Dynamic Enterprise
By Erin Harrison, Executive Editor, Cloud Computing
Leveraging a fully managed IP network to deliver the functionality, performance, capability and security required to increase productivity and innovation is no small task.
Maximizing the effectiveness of the enterprise network while keeping costs under control is a key objective for every business that wants to remain competitive in today’s marketplace. A recent CIO blog from Aberdeen (News - Alert) Group states that telecom and network services expenses now amount to 3.6 percent of revenue or 12 percent to 18 percent of all expenses for Fortune 500 companies.
Today, enterprises are finding that adding IT and network functionality to its business processes improves employee productivity, and are willing to make the additional expenditures. In fact, according to the Alcatel-Lucent (News - Alert) whitepaper, “The Enterprise Network Partner – Management and Transformation,” enterprises are increasingly outsourcing voice and data network management and transformation to equipment vendors, systems integrators and managed service providers.
A knowledgeable global communications solution provider can offer the managed services needed to efficiently and cost effectively administer the enterprise network from end to end, company officials said.
A managed services team, given its alignment with the company’s CIO, and its familiarity with the design and everyday operation of the network, can also lead the enterprise into the next generation of data and communications networks.
Given that the enterprise network is the backbone of the IT infrastructure and a critical link between customers and suppliers and the enterprise, these networks have become one of the company’s primary means to contact and respond to its customers. Both the Web and the enterprise’s contact centers are used to promote, sell, and deliver goods and services to customers. These two communications channels also allow customers to seek and obtain help and service for the products they have purchased, the whitepaper explained.
Furthermore, business initiatives such as globalization, branch automation, workforce virtualization and post-merger integration all hinge on the effective deployment and management of a secure and responsive network supporting communications and network applications.
The capacity and response time of the combined networks supports the database retrieval, business applications, Web access, e-mail, file downloads, conferencing, and voice telephony constantly needed to keep an enterprise operational. At the same time, the network and its extensive connectivity also invites unwanted intruders interested only in disrupting operations or destroying or stealing information assets, Alcatel-Lucent officials said.
As such, enterprises that want to compete in today’s market need to be prepared to continually evolve their networks to take advantage of very beneficial capabilities being introduced and supported around the globe.
Today’s key enterprise IT transformations include: WAN optimization; VoIP and unified communications; enterprise security refresh; contact center update; and wireless enterprise. “Constant monitoring of an operating network is indispensable to predict and recognize problems. This monitoring should address both immediate and long term needs. As the enterprise grows in terms of revenue, locations, employees, applications, and complexity, the capabilities and structure of the network must evolve and grow as well to support these changes,” the whitepaper said.
In addition, as the enterprise grows in terms of revenue, locations, employees, applications, and complexity, the capabilities and structure of the network must evolve and grow as well to support these changes. The enterprise’s Internet, network and applications service providers – as well as its partners and vendors – also have evolving communications networks.
Enterprises today need to make corresponding changes to their networks in order to not only stay competitive, but to ensure security and operate costs effectively – this may involve a transformation to a next generation IP-based network. Alcatel-Lucent officials recommended that enterprises find a networking partner that can address all the aspects of enterprise network management and transformation. That outsourcing partner should:
· Work directly with the CIO;
· Manage external IT partners and suppliers;
· Understand enterprise network technology;
· Understand enterprise communications;
· Understand voice and data carriers, both fixed and mobile;
· Understand carrier equipment and networks of the carriers;
· Have experience working in a multi-vendor environment;
· Have no vested interest in the enterprise’s other expense streams;
· Be experienced in management; and
· Be experienced in transformation.
Potential outsourcing partners include system integrators, network service providers and network equipment manufacturers. When engaging a network outsourcing provider, Alcatel-Lucent officials said, it is very important to take into consideration the primary interests of the company behind the network management team. While the NSP offers comprehensive managed service programs for voice and data network equipment, the same company derives the bulk of its revenue from transport service contracts that benefit from high traffic demands on their networks.
“With a single network outsourcing partner, the enterprise can build a powerful relationship that will reduce costs and improve service while allowing it to concentrate on products and customers," company officials said.
For more information on maximizing effectiveness while minimizing costs, visit Alcatel-Lucent’s Next Generation Communications community on TMCnet.
Erin Harrison is a senior editor with TMCnet, primarily covering telecom expense management, politics and technology and Web 2.0. She serves as senior editor for TMC's (News - Alert) print publications, including "Internet Telephony", "Customer Interaction Solutions", "Unified Communications" and "NGN" magazines. Erin also oversees production of TMCnet's weekly iPhone (News - Alert) e-Newsletter. To read more of Erin's articles, please visit her columnist page.
Edited by Erin Harrison

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