Report:
Magic Quadrant for Managed Network Services
How does Gartner define the Managed Network Services market in 2023?
The managed network services (MNS) market focuses on externally provided, network operations center (NOC) functionality, as well as relevant network and security life cycle services that deliver current and emerging requirements to end users. Gartner defines the MNS market as globally capable MNS providers of service management functions for the network and security operations of enterprise networks for three MNS offerings: Managed LAN services (MNS for LAN) must include the management of enterprise LAN customer premises equipment (CPE), such as campus switches and wireless access points. It provides single point of contact (SPOC) ownership for the life cycle management of these devices. These services may include the management of enterprise customer internet of Things/Industrial IoT (IoT/IIoT) infrastructure and endpoints. These services may include managed operations services for other elements, such on-premises servers, storage, gateways and controllers. Managed WAN services (MNS for WAN) must include the management of enterprise site edge ingress and egress CPE, and any WAN connections and service operations management. These services provide life cycle management for site edge CPE, such as routers, firewalls and software defined WAN (SD-WAN), with or without security co-residency on site edge CPE. MNS for WAN providers must provide an SPOC, ownership for the life cycle management of these devices for site edge CPE and transport services connecting client sites to any destination. This includes hybrid cloud or other non-client-owned locations. These services may include the operations management of enterprise customer IoT/IIoT infrastructure and endpoint management. Managed security (MNS for security) functions must include health, configuration and maintenance support for security technologies. Service delivery is for a single vendor to enterprise clients of multiple vendors of converged network and security function life cycle management operations. These include the support of: (1) SD-WAN-embedded security functions; (2) secure web gateways (SWGs); (3) cloud access security brokers (CASBs); (4) network access control (NAC); and (5) network firewalling, with or without intrusion prevention system/intrusion detection system (IPS/IDS). MNS for Security supports branch offices, remote workers and on-premises general internet security, private application access, and cloud service security functions for consumption use cases.
Key Facts for Magic Quadrant for Managed Network Services in 2023
- Publication Date: 8 November 2023
- Document ID: G00784012
- Coverage: Global
- Authors: Ted Corbett, Bjarne Munch
- Core Purpose: This Magic Quadrant evaluates managed network services (MNS) providers to help I&O leaders responsible for network and security infrastructure operations navigate vendor selection in the competitive MNS market and balance expense optimization with network and security service delivery quality.
Strategic Planning Assumptions
- By 2026, generative artificial intelligence (GenAI) technology will account for 20% of initial network configuration, which is an increase from near zero in 2023.
- By 2026, 60% of new software-defined, wide-area network (SD-WAN) purchases will be part of a single-vendor secure access service edge (SASE) offering, which is a major increase from 15% in 2023.
How was the Managed Network Services market evolved in 2023?
- The MNS market focuses on externally provided network operations center (NOC) functionality and network/security life cycle services
- MNS offerings include three main categories: Managed LAN services, Managed WAN services, and Managed security functions
- Key capabilities include service delivery platform (SDP), service management, operations automation, and customer experience (CX)
- The market is expanding to include security functions support with convergence toward SASE/SSE models
- Providers must demonstrate minimum 80% FCR for all incidents and 15% automated FCR with zero manual touch
- MNS for security must support at least 4 of 5 categories: SD-WAN security, SWG, CASB, NAC, and network firewalling
- Downward pricing trends occurring, especially for on-premises wireless LAN controllers and firewalls (approaching 50% lower than two years ago)
- Growing trend of customers consolidating to fewer vendors for standardization and improved service experience
- Private 5G and Wi-Fi 6 gaining traction with increased IoT/IIoT support
- Microsegmentation implementation growing for zero trust network architecture (ZTNA) initiatives
- AI/ML-enabled automation and orchestration driving service delivery improvements
- Customer experience monitoring evolving toward proactive anomaly detection
What product features are required to be included in this year's evaluation?
- Service delivery platform (SDP): This area is specific to the application tool infrastructure and the integration of the MNS provider's SDP. An MNS provider's SDP involves the integrated application architecture and the enabling technologies designed to enable the standardized, high-quality and scalable delivery of managed network services to enterprise customers. The single MNS SDP supporting LAN and WAN may be separate, but be integrated with a security-focused MNS SDP.
- Service management: MNS management refers to the entirety of life cycle activities — supported by tool-based workflows, automation and customer support mechanisms that are performed by MNS providers.
- Operations automation: This includes the automation of tasks and activities related to the SDP, service management functions, and customer experience (CX) management to achieve consistent MNS service delivery quality.
- CX: This includes all customer support management functions, such as customer portal functions, customer management, customer co-management and related support functions.
What are the common features of top products in the Managed Network Services space?
- Formal continual service improvement programs for MNS customers
- Networking and security architecture design services
- Certifications, such as ITIL v3/v4, relevant OEM vendor and SOC 2 certifications
- Network and security product resale or as OEM sale offers
- Customer network and security product implementation professional services
Scope Exclusions
- The MNS market does not include any network or security products, software, maintenance, network services, or cloud-based services or products
Inclusion Criteria
Vendors must, among other requirements:
- Provide MNS to enterprises for networking products and related network services on a 24/7 basis for customer locations
- Offer a fixed monthly subscription fee for each device managed for enterprise customers for MNS for LAN, WAN and security offers
- Provide MNS for network operations life cycle management of networking hardware/software in support of both LAN and WAN technologies
- Internally operate a multitenant SDP for MNS customers
- Provide services for customers' existing LAN, WAN and security environments (greenfield/brownfield and managed takeover)
- Confirm service management processes and tools achieve minimum 80% FCR for all incidents
- Confirm service management processes and tools achieve minimum 15% first-contact resolution via automation (zero manual touch)
- Currently offer MNS for security services in at least four of five categories: SD-WAN, SWG, CASB, NAC, and network firewalling
- Provide evidence of current and planned security incident automation methods, tools, and performance KPIs
- Have at least 500 MNS for LAN customer sites, 1,000 MNS for WAN customer sites, and 500 MNS for security customer sites
- Evidence of customer locations for MNS in at least three regions: North America, Europe, APAC, Middle East/Africa, and Latin/South America
Ability to Execute — Relative Weighting
- Product or Service - High
- Overall Viability - Medium
- Sales Execution/Pricing - High
- Market Responsiveness/Record - High
- Marketing Execution - Medium
- Customer Experience - High
- Operations - High
Completeness of Vision — Relative Weighting
- Market Understanding - High
- Marketing Strategy - Medium
- Sales Strategy - Medium
- Offering (Product) Strategy - High
- Business Model - High
- Vertical/Industry Strategy - Medium
- Innovation - High
- Geographic Strategy - Medium
FAQs
Q: What does this research cover?
A: This research evaluates globally capable MNS providers offering service management functions for network and security operations across three MNS offerings: Managed LAN services, Managed WAN services, and Managed security functions. It covers provider capabilities in service delivery platforms, automation, customer experience, and their ability to support enterprise network operations life cycle management for LAN, WAN, and security technologies.
Q: Who should use this research?
A: I&O leaders focused on network and security infrastructure operations should use this research to help navigate vendor selection in the competitive MNS market. It helps organizations balance expense optimization with network and security service delivery quality when deciding between do-it-yourself (DIY) operations and managed services, and when evaluating which MNS provider best fits their requirements for service delivery quality, automation capabilities, and customer experience.
Q: What are the mandatory features of vendors included in this market?
A: For inclusion in this Magic Quadrant, vendors must have generally available services that support four must-have capabilities: (1) Service delivery platform (SDP) - integrated application architecture and enabling technologies for standardized, high-quality and scalable delivery; (2) Service management - life cycle activities supported by tool-based workflows, automation and customer support mechanisms; (3) Operations automation - automation of tasks related to SDP, service management functions, and customer experience management; and (4) Customer experience (CX) - all customer support management functions including customer portal, management, co-management and related support functions. Additionally, vendors must provide MNS for LAN, WAN and security operations with 24/7 support, achieve minimum 80% first-contact resolution (FCR) for all incidents and 15% automated FCR, offer security services in at least four of five categories (SD-WAN, SWG, CASB, NAC, network firewalling), and meet minimum customer site requirements across multiple geographic regions.
Q: What are some reasons for not being included in this report?
A:
- Not offering MNS to enterprises for networking products and related network services on a 24/7 basis
- Not offering a fixed monthly subscription fee for each device managed
- Not providing MNS for network operations life cycle management of both LAN and WAN technologies
- Not internally operating a multitenant SDP for MNS customers
- Not providing services for existing customer environments (greenfield/brownfield and managed takeover)
- Not achieving minimum 80% FCR for all incidents
- Not achieving minimum 15% first-contact resolution via automation (zero manual touch)
- Not offering MNS for security services in at least four of five required categories
- Not providing evidence of security incident automation methods, tools, and performance KPIs
- Not meeting minimum customer site requirements (500 LAN, 1,000 WAN, 500 security sites)
- Not having customer presence in at least three of the specified geographic regions
- Requiring customers to purchase other products or services (hardware/software or network transport services) to obtain MNS
Q: What differentiates Ability to Execute vs. Completeness of Vision?
A: Ability to Execute evaluates vendors on the quality and efficacy of their current processes, systems, methods and procedures that enable competitive, efficient and effective performance. It focuses on operational excellence, market responsiveness, customer experience, and sales execution. Completeness of Vision evaluates vendors on their ability to articulate logical statements about current and future market direction, innovation, customer needs and competitive forces. It emphasizes strategic planning, market understanding, innovation capabilities, and the vendor's approach to product development and business model. Essentially, Ability to Execute measures current operational performance while Completeness of Vision assesses strategic direction and future planning.
Reference
- Gartner, Magic Quadrant for Managed Network Services, 8 November 2023, ID G00784012
View Leaders
View Vendor Movements
