An Approach to Offering Profitable Managed Network Services
The market for managed network services is large and growing. The worldwide market for managed services in 2020 was $52 billion and is expected to grow to $71 billion in 2025. For managed service providers to continue to grow revenue and profitability in this lucrative business it is critical that they continue to develop their managed services offerings to SMBs and enterprises.
SD-WAN has become a popular managed service over the last five years. However, not all customers’ or enterprises’ sites need all capabilities of SD-WAN. To address this gap in the market Juniper Networks SSN solution has developed a Flexible Service Edge (FSE) offering consisting of three options: Layer 3 Network Interface Device, Services Edge Router, and Session Smart Router. The FSE licensing options use the same hardware and software at each site. Therefore, service capabilities can easily be upgraded without hardware replacements or software upgrades. Peter Fetterolf has created a business model that shows positive cumulative cash flows over 5 years, payback of between 2−3 months and return on investment up to 426% for these service offers.