Research / all articles
Article

Publication year:

Pricing mechanisms for network operations

In this article, we focus on network operations and take a closer look at which factors and variables determine the price when purchasing network operations as a managed service.

Hybrid IT environments, where data is exchanged between systems that can be run locally, in external data centers, and across both private and public cloud providers, place high demands on network performance and stability. At the same time, the need for focus on network security is increasing as threats from cybercriminals pose an ever-increasing challenge.

In a modern digitalized company, a well-functioning network is a prerequisite for systems, applications and the underlying IT infrastructure to function optimally and create the greatest possible value.

This is an area we expect to see increased attention in IT departments, and therefore it makes sense to look at the commercial aspects of outsourced network operations or managed networks.

The article consists of three parts:

  • Review of the content of a typical agreement and a look at which activities and components are included in a standard service.
  • Clarification of pricing mechanisms for network operations and the factors that affect unit prices.
  • Key sourcing strategy considerations before entering into an agreement with a supplier for network operations.