Managed Integrated Services Now More Than Ever

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1 Managed Integrated Now More Than Ever Steven Taylor Webtorials Editorial/Analyst Division Today s Speakers Jim Metzler Moderator Co-Founder Editorial/Analyst Division Steven Taylor Lead Analyst Co-Founder - Editorial/Analyst Division Joel Conover Cisco Senior Manager Network Systems Marketing 2

2 The Analyst View Agenda Managed Today Multifunction Network Appliances Today Integrated Managed Why Now? Comments from the Sponsor 3 Defining Managed All services are managed services Management is a question of degree, not an absolute The private line myth Until 1984, essentially all network services were Managed Defining a demarc for technical reasons and political reasons Managed as a term started as a euphemism for the O-Word after the early disasters with outsourcing Numerous business, technical, and political issues

3 Managed and Flexibility The key is being selective Inclusive or a la carte Options include: Router, TelePresence, Application delivery, Unified communications or other collaborative business applications, Virtual machine processors for applications, IP telephony, Software as a service (SaaS)/cloud computing, Contact/call center, Security, Application hosting, Wireless LAN, Application performance management (APM) Device C Device B Device A WAN Hosting Device D Top Managed For which services does your company use or anticipate using managed services? (Please check all that apply.) IP telephony ep 48% Application hosting Router/WAN CPE 38% 40% Contact/call center Unified communications or other collaborative business applications Security Application delivery Application performance management (APM) 31% 31% 29% 24% 23% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Preliminary survey results as of 11/12/2008 6

4 Multifunction Network Appliances How many functions in one device? Options to add functions Options include: Router, TelePresence, Application delivery, Unified communications or other collaborative business applications, Virtual machine processors for applications, IP telephony, Contact/call center, Security, Application hosting, Wireless LAN, Application performance management (APM) Device C Device B Device A WAN Hosting Device D Integrated Managed Selective Sourcing of whatever makes sense for the company The focus needs to change from managing technology to managing suppliers and relationships Allows for rapid deployment of new features/capabilities as needed Device C Device B Device A WAN Hosting Device D

5 Today s Managed To what extent does your IT organization currently use managed services as opposed to performing tasks in-house? (An MSP is a "managed service provider.") Totally MSP 1% Mostly MSP 11% Totally in house 20% About half MSP 22% Mostly in house 46% Preliminary survey results as of 11/12/ Future Managed To what extent will your IT organization use managed services in the future? Significant decrease Some decrease 3% 5% Significant increase 10% Some increase 32% No major change 50% Preliminary survey results as of 11/12/

6 Reasons for Managed What are the primary reasons that you would consider using a managed service? (Please check all that apply.) Allow existing staff to concentrate on strategic as opposed to tactical tasks 55% Easier to provide 24/7 support 48% Cutting costs 42% Gain access to certain skill sets 39% Reduce deployment time 39% Easier than adding staff 37% Easier than training existing staff on new capabilities 24% 0% 10% 20% 30% 40% 50% 60% Preliminary survey results as of 11/12/ Importance vs. Funding In what way do you see the changes in 2009? 50% 45% 40% 35% 35% 38% 42% 46% 30% 25% 20% 15% 10% 5% 0% 1% 4% Significant decrease 11% Some decrease No major change 17% Some increase 5% 2% Significant increase Importance of IT functions Funding for IT functions Preliminary survey results as of 11/12/

7 Why Now? Efficient use of limited resources Concentration on strategic as opposed to tactical tasks Rapid deployment of critical new applications Mandate: Efficient use of IT - especially Integrated Managed - as a means to economic survival and even success 13 Managed Empowered Branch SP Opportunity Managed Connectivity Connectivity L2/L3 VPN LAN Mobility Security Firewall IPS/IDS NAC UC IP PBX Dual Mode SIP Trunking Advanced Physical Security WAAS Hosted Applications Customer Value Presentation_ID 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 14

8 Bringing It All Together Managed Empowered Branch Managed + = The Managed Empowered Branch Eliminates Complexity Lowers Cost Puts the Focus Back on the Business Presentation_ID 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 15 For more information and additional presentations, please visit us at

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