ACG Research

ACG Research
We focus on the Why before the What

Sunday, September 28, 2014

Business Case for Virtual Managed Services

Cisco Evolved Services Platform provides automated, optimized, and personalized services via orchestrating virtualized network functions running on cloud data center technology. It allows fast introduction of new services and reduces the TCO of managed services sales and service delivery processes. Virtual managed services provided via ESP reduce costs and increase operational efficiency to the point where service providers can now profitably sell to smaller businesses.

ACG Research compared the total cost of ownership of the present mode of operations with the virtual managed service solution for two managed services offerings: 1) Cloud VPN service, and 2) Security service. It found that operation expenses (opex) were about 78 percent less for virtual managed service for both offers and that return on investment (ROI) for both virtual managed services offerings was more than 200 percent over a five-year planning period. The three largest sources of reduced opex are elimination of most truck rolls, many onsite maintenance and installation activities, and minimization of the costs to support onsite software.

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