Network Manager's Handbook: Building, Budgeting, Planning, Procuring, Staffing, and Scheduling the System / Edition 1

by Nathan J Muller

Overview

A job manual for the person in charge of the corporate network, explaining its operations and procedures. Topics include: vendor repair and return policies; calculating true cost; staff scheduling; system downsizing; asset identification; contingency planning; security tactics; and more.

Product Details

ISBN-13:	9780071405676
Publisher:	McGraw-Hill Professional Publishing
Publication date:	10/11/2002
Series:	McGraw-Hill Networking Professional
Pages:	544
Product dimensions:	7.43(w) x 9.38(h) x 1.28(d)

Read an Excerpt

Chapter 6

Outsourcing Infrastructure

6.1 Introduction

With computing and networking environments becoming ever more powerful, complex, and expansive, an increasing amount of the corporate budget is being tied up to support them. Enormous amounts of capital are invested annually in bricks -and mortar, hardware and software, lines and circuits, security, electrical power, backup systems, management tools, and technical staff--just to name a few. Instead of building and maintaining this infrastructure themselves, more and more companies are turning to outsourcing arrangements and hiring qualified third-party firms to take care of these essential functions. In offloading these burdens to outside firms and paying a fixed monthly charge, companies can contain operating costs, eliminate waste, use resources more effectively, and become far more competitive by funneling more of their resources to core business activities.

Outsourcing is not a new idea. It is part of a widespread trend that started in the mid-1980s called downsizing, whereby companies flattened organizational structure, streamlined business processes, distributed operations, and reduced staff to serve customers more efficiently, become more competitive, and improve financial performance. This trend continues today as companies seek to readjust themselves to new production technologies, market realities, and general economic conditions. What is new is the kind of activities that can be outsourced. In addition to the traditional management of systems and networks, companies can outsource entire data centers, security, content delivery, and enterprise applications. Even product development, marketing, billing, and customer service functions--still considered core business activities--can be outsourced. With outsourcing taken to the extreme, companies one day may not need to have a physical presence at all. Instead, they may be just as effective in a virtual state of existence--merely a presence on the Web--that does not require the trappings of traditional infrastructure.

Outsourcing, once considered an arrangement of last resort for financially strapped businesses, has instead become part of the overall strategic vision of virtually all organizations, large and small. This arrangement is no longer just a cost-cutting measure for companies; many now view outsourcing as a way to acquire information technology, business processes, network capacity, global reach, and management expertise that will help them become more competitive and expand into new markets more quickly. While companies are still looking to reduce costs at every opportunity, they are also looking for a flexible infrastructure that will sustain them through alternating periods of expanding and contracting market demand without becoming bogged down by a standing army of people, fixed assets, and escalating expenses for data centers and networks. Outsourcing arrangements, properly structured, can meet all of these needs in a timely and economical manner.

6.2 Reasons to Outsource

The reasons a company may want to outsource are varied. They might include:

· Difficulty in using technical personnel efficiently or in upgrading their level of expertise

· Insulating management from day-to-day system problems and decisions, so they can focus more attention on core business issues

· Concern about buying expensive technology that could become obsolete shortly after purchase or before it is fully depreciated

· Greater flexibility to deal with fast-changing worldwide markets, government regulations, and differing standards

· Extend presence to new markets economically, without a heavy investment in basic infrastructure

· The need to improve the corporate balance sheet, extend available investment capital, improve efficiency of business operations, and contain long-term costs

Despite the many good reasons to outsource, there are still many concerns associated with putting critical resources in the hands of outsiders. Many of these concerns can be overcome with experience and knowledge of typical outsourcing arrangements.

Many corporate executives are concerned about giving up control when considering the move to outsource. However, control can increase when corporate management is better able to concentrate on issues that have potentially greater returns. Instead of consuming valuable resources in the nuts-and-bolts aspects of setting up an Automated Teller Machine (ATM) network, for example, bank executives can focus on developing the services customers will demand from such a network and devise test marketing strategies for potential new financial services.

A common refrain among corporate executives is that outsource firms do not know their companies' business. In any outsourcing arrangement, however, users continue to run their own applications as before; the service provider just keeps the data center or network running smoothly. In addition, outsourcing firms typically hire at least some members of the client staff who would have been let go upon the decision to outsource and who are familiar with the business.

Companies that are considering outsourcing should examine their current information system and network activities in competitive terms. Activities that are performed about the same way by everyone within a particular industry can be more safely farmed out than those that are unique or based on company-specific skills. Most important, the company must take precautions to remain in a position to recommend and champion strategic systems and new technologies, which may involve high initial payout and possible cross-functional applications.

As the company opts for external solutions, standards that were internally developed do not suddenly lose their relevance. Oversight of standards that address hardware, communications, and software should remain an internal responsibility to ensure compatibility of information systems and networks across the enterprise.

Outsourcing can increase service quality and decrease costs, but management control cannot just be handed over to a third party. The fact that work has been contracted out does not mean that you, as a network manager, can or should stop thinking about it. Typically, there is still a significant amount of advisory and supervisory overhead that consumes resources.

Someone within the company must ensure that contractual obligations are met, that the outsourcing firm is acting in the company's best interests, and that problems are not being covered up. Since the outsourcing firm will usually not have the detailed knowledge of network operations as in-house staff, you, as a network manager, should expect to play an advisory role in getting the outside firm up to speed. Just as important, considerable effort is usually required to establish and maintain a trusting relationship. To oversee such a relationship requires staff who are highly skilled in interpersonal communications and negotiation, and who are knowledgeable about business and finance.

6.3 Approaches to Outsourcing

There are two basic approaches to outsourcing--each of which can pose clear benefits. First, the outsourcing firm can buy existing information systems, networks, and other assets from the company and lease them back to the company for a fixed monthly fee. In this type of arrangement, the outsourcer can also take over the information systems payroll. This relieves the client of administrative costs, which can be applied to core business operations or used as a resource conservation mechanism to improve the corporate balance sheet.

Typically, the outsourcer maintains the communications equipment and information systems, upgrading them as necessary, but staying within the budgetary parameters and performance guidelines in the master agreement. Sometimes equipment leasing is part of the arrangement. Aside from its tax advantages, leasing can protect against premature equipment obsolescence and rid the company of the hassles of dealing with used equipment once it has been fully depreciated.

A second type of outsourcing arrangement entails the company selling off its equipment and migrating the applications and data to the outsourcer's data center and high-speed network. Often, the company's key personnel, who have been reassigned to the outsourcer's payroll and who receive a comparable benefits package, manage the data center and network. Employees can even find new career opportunities with the outsourcing firm, since it may provide a wide array of services to a broad base of clients worldwide.

In the first case, the outsourcing arrangement leaves the company's assets where they are, minimizing costs and simplifying administration. In the second case, the assets are moved from the company's location and reestablished at the outsourcing firm's location. This usually entails extra cost because duplicate systems and networks must be maintained to enable business processes to continue during the transition. Ultimately, this has the benefit of freeing up the company's office space for equipment and personnel for other uses or closing it down for cost savings. When network equipment is involved, this type of outsourcing arrangement is often referred to as collocation. When applications and data storage are involved, the arrangement is often referred to as hosting. Today, the distinction is blurred because outsourcing, more often than not, includes elements of each.

6.4 Outsourcing Trends

Outsourcing is not new in the information systems arena. Historically, service bureau activity has been associated with data center outsourcing, in which in-house data centers were turned into remote job-entry operations to support such applications as payroll, claims processing, credit card invoicing, and mailing lists for mass marketing operations. Under this arrangement, mainframes were owned and operated off-site by the computer service company and processing time was reserved for customers who paid an hourly fee.

In recent years, this type of arrangement has been extended to include facilities management. With this type of outsourcing, an outside firm takes over on-site management of a corporate data center. The service provider typically brings in some of its own people and keeps some of the client's staff, maintaining the data center as it is currently set up at the customer location.

As applied to networks, however, the outsourcing trend is more recent. An organization's Local Area Network (LAN) may be thought of as a computer system bus, providing an extension of data center resources to individual user's desktops. Through Wide Area Network (WAN) facilities, data center resources may be extended further to remote offices, telecommuters, and mobile professionals. Given the increasing complexity of current data networks and the expense of security to protect mission-critical data, it is not surprising that companies are seeking ways to offload management responsibility to those with more knowledge, experience, and hands-on expertise than they alone can afford.

Today's outsourcing vendors offer a mix of technology and management solutions, including consulting, client-server applications development, project management, and life-cycle services. A total outsourcing package typically includes an analysis of the company's business objectives, an assessment of current and future computing and networking needs, and a determination of performance parameters to support specific data transfer requirements. Responsibility for the resulting system or network design may encompass the local and interexchange facilities of any carrier and equipment from alternative vendors. Acting as the client's agent, the outsourcing firm coordinates the activities of equipment vendors and carriers to ensure efficient and timely installation and service activation.

In one type of outsourcing arrangement, an integrated control center--located at the outsourcing firm's premises or that of its client--serves as a single point of service support. Technicians are available 24 hours a day, 365 days a year to monitor network performance, contact the appropriate carrier or dispatch field service as needed, perform network reconfigurations, and take care of any necessary administrative chores.

Selective outsourcing--sometimes called out-tasking-- is a growing trend. More companies want to outsource only a narrowly defined portion of their operation. For example, they may want to outsource only the help desk, application development for a particular platform, hardware procurement, network integration, or distributed computing services. Selective outsourcing includes transition outsourcing, which typically involves helping companies migrate from a legacy system to a networking or client-server system.

Rather than outsource responsibility for the entire network, many companies out-task specific planning, operations, or management functions to a contractor. This approach is less disruptive to daily business operations than a full-blown outsourcing deal because it eliminates the wholesale transfer of assets and personnel to an outside vendor. Some other advantages of out-tasking include:

· It is less risky than turning over responsibility for an entire network to an outsider.

· It can become the basis for establishing a partnership with a vendor that develops over time or is terminated as needed.

· It can result in greater control over the network, since only nonstrategic tasks are parceled out.

By reducing risks, out-tasking can result in immediate cost savings and faster productivity improvements. At the same time, short-term outsourcing is becoming more popular than long-term arrangements. More companies are willing to give up control of select applications or functions in the short term, either because they want to focus inwardly on employee training or retooling, or outwardly on adding value to business processes. Their desire to achieve short-term objectives is driving them to seek flexible outsourcing arrangements that last two or three years instead of seven to ten.

6.5 What to Outsource

Networks are growing rapidly in size, complexity, and cost; technical experts are expensive, hard to find, and hard to keep; new technologies and new vendors appear at an accelerating rate; and users clamor for more and better service while their bosses demand lower costs and increased work performance. Consequently, the question may no longer be whether to outsource but what to outsource.

Just about any aspect of systems and network operations can be outsourced in almost any combination. Start by looking at functions that are not critical to the company's core business, especially those that the telecom or Information Technology (IT) department cannot perform cost-effectively. The following network functions may be considered for outsourcing:

· Service and support operations:

o Help desk

o Customer support

o Consulting: end user, workgroup, department, enterprise

o Problem analysis and management

o Billing inquiries and reconciliation

o Repair and installation dispatch

o Moves, adds, and changes

o Management reporting

· Network monitoring and diagnostics

· Network design, installation, and management

· Local access and integrated services

· WAN voice and data services

· Network security

· Branch office communications management

· Traffic analysis and capacity planning

· Disaster planning and recovery

· New product testing and evaluation

· Technology assessment and migration

· Enterprise applications, such as email

A rule of thumb is to keep in-house any highly critical activity that is being performed cost-effectively, but outsource noncritical activities that are not being performed cost-effectively (see Fig. 6.1).

COMP: Please insert Figure 6.1 here.

A company can let go of the commoditylike operational functions, sometimes called tactical functions. It is possible to both save money and eliminate headaches by letting someone else pull wires, set up circuits, move equipment, and troubleshoot problems. However, it may not be wise to farm out mission-critical or strategic functions. After all, if the outsourcing firm performs poorly, for whatever reason, the client company's competitive position could become irreparably damaged. On the other hand, resource-constrained companies may have no choice but to outsource an important function like network security. The cost for qualified staff such as Certified Security Engineers (CSE) or Certified Security Administrators (CSA) to manage firewalls on a 24×7 basis, stay updated on the latest security threats, and implement attack countermeasures is cost-prohibitive for all but the largest companies.

One way for a company to take a first step down the outsourcing path is to give its network to a vendor during second and third shifts and weekends, while keeping control over the more critical prime time. As confidence in the vendor grows, more can be outsourced. Another way to ease into an outsourcing arrangement is to farm out only one or two discrete activities. Choose those that will provide the telecom or IT staff with some relief. If these activities are successful, consider adding more functions. Each additional function can be farmed out to new or existing vendors, and the desired amount of control can be exercised over each separate activity.

When considering network outsourcing, organizations typically expect to achieve one or more of the following:

· A single point of contact for the management of all voice and data communications

· A reduction in the number and severity of problems that affect service

· Improvements in network performance, availability, and reliability through proactive management

· Better response time for move, add, and change requests

· A reduction in the number of personnel involved in day-to-day operations, with the possibility of redeploying these resources to core business activities

· Better management of equipment inventories, vendor warranties, license agreements, and maintenance schedules

· Obtain all of the above more efficiently and more economically, while providing higher-quality services to end users without compromising security

With network management costs increasing by more than 30 percent a year, large companies are being forced to reengineer their networks more often. Among the reasons for skyrocketing costs are the increased emphasis on network security, the pressure to deploy e-commerce and hosted applications on the Internet, the need to distribute storage and mission-critical data to safeguard them from loss due to disaster, continued implementation of client-server architectures, and development of enterprise applications. These activities entail enormous hidden costs in the form of skilled people. Many of these costs can be trimmed or eliminated by outsourcing.

Companies with multinational locations are not likely to have a significant level of in-house expertise in more than a few national markets. For example, it is difficult to stay informed of the latest standards and compliance issues of each Post Telephone & Telegraph (PTT) administration. This aspect of international operations alone could require dedicated staff. From logistics, billing, and network management standpoints, an outsourcing firm with an international presence can shave as much as 30 percent off the cost of global network operations.

6.6 Typical Outsourcing Services

The specific activities performed by the outsourcing firm may include:

· Moves, adds, changes

· Systems and network integration

· Project management

· Trouble ticket administration

· Management of vendor-carrier relations

· Maintenance, repair, replacement

· Disaster recovery

· Technology migration planning

· Training

· Equipment leasing

· LAN administration and management

· WAN administration and management

· Network security

· Enterprise applications

The list of activities that can be outsourced is continually expanding. The list above represents the most commonly outsourced activities and are discussed in the following sections.

6.6.1 Moves, adds, changes

Even with the right tools, handling Move, Add, Changes (MAC) requests constitutes a daily grind that can consume enormous corporate resources if handled by in-house network administrators. For both LANs and WANs, the MAC process typically includes the following activities:

· Processing move, add, and change orders

· Assigning due dates for completion

· Providing information required by technicians

· Monitoring move, add, and change service requests, scheduling, and completions

· Updating the directory database

· Handling such database modifications as features, ports, and user profiles

· Creating equipment orders upon direction

· Maintaining order and receiving logs

· Preparing monthly move, add, and change summary and detail reports

· Managing and accounting for all hardware and software assets

In assigning these activities to an outside firm, the company can realize substantial cost savings in staff and overhead, without sacrificing efficiency and timeliness.

6.6.2 Systems and network integration

Current information systems and communications networks consist of a number of different intelligent elements: host systems and servers, LAN hubs and switches, routers and gateways, and local and WAN facilities from various carriers, to name a few. The selection, installation, integration, and maintenance of these elements require a broad range of expertise that is not usually found within a single organization. Consequently, many companies are increasingly turning to outsourcing firms for systems and network integration services.

Briefly, the integration function is concerned with unifying disparate computer systems and transport facilities into a coherent, manageable utility, a major part of which is reconciling different physical connections and protocols. The outsourcing firm also ties in additional features and services offered through a public-switched network. The objective is to provide compatibility and interoperability among different products and services so that they are transparent to the users.

The evaluation of various integration firms should reveal a well-organized and staffed infrastructure that is enthusiastic about helping to reach the customer's networking objectives. This includes having the methodologies already in place, the planning tools already available, and the required expertise already on staff. Beyond that, the integrator should be able to show that its resources have been successfully deployed in previous projects of a similar nature and scope. And since most integrators are not staffed and equipped to handle every conceivable type of project, they should be able to tap the expertise they need through strategic relationships with partners.

6.6.3 Project management

Project management entails the coordination of many discrete activities, starting with the outsourcing firm's development of a customized project plan based on the client's organizational needs. For each major and minor task, critical requirements are identified, lines of responsibility are drawn, delivery milestones are established, dependencies are identified, and problem resolution and escalation procedures are agreed on.

Line and equipment ordering, for example, might be included in a network upgrade project. Acting as the client's agent, the outsourcing firm negotiates with multiple suppliers and carriers to economically upgrade or expand the network in keeping with predefined performance requirements and budget constraints. Before new systems are installed at client locations, the outsourcing firm performs site survey coordination and preparation, ensuring that all power requirements, air conditioning, ventilation, and fire protection systems are properly installed and in working order.

When an entire node must be added to the network or a new host must be brought into the data center, the outsourcing firm will stage all equipment for acceptance testing before bringing it online, thus minimizing potential disruption to daily business operations. When new lines are ordered from various carriers, the outsourcing firm conducts the necessary performance testing before turning the lines over to user traffic.

6.6.4 Trouble ticket administration

A trouble ticket is an electronic record that describes a problem on the network and its resolution. In assuming responsibility for daily network operations, a key service performed by the outsourcing firm is trouble ticket processing, which typically involves a high degree of automation. The sequence of events in trouble ticket processing is as follows:

· An alarm with a severity indication is received at the network control center operated by the outsourcing firm.

· Alternatively, a user may call the outsourcing firm's customer support team or help desk to report a problem that has not been discovered through automated monitoring capabilities.

· A trouble ticket is opened, which describes the problem, and it is given a tracking number.

· Restoral mechanisms are initiated (manually or automatically) to bypass the affected equipment, network node, or transmission line until the faulty component can be brought back into service.

· An attempt is made to determine the cause of the problem and, if necessary, duplicate the problem in an effort to find the cause:

o If the problem is with hardware, a technician is dispatched to swap out the appropriate board or subsystem.

o If the problem is with software, analysis and correction may be performed remotely.

o If the problem is with a particular line, the appropriate carrier is notified.

· The client's help desk is kept informed of the problem's status so that the help desk operator can assist local users.

· If the problem cannot be solved within a reasonable time, it is escalated to a higher level. This escalation is noted on the trouble ticket.

· Before closing out the trouble ticket, the repair is verified with an end-to-end test by the outsourcing firm.

· Upon successful end-to-end testing, the primary Customer Premises Equipment (CPE) or facility is turned back over to user traffic and the trouble ticket is closed.

· A record of the transaction is filed in the trouble database to aid future problem solving and staff performance evaluation.

· A message is sent to the affected user or group of users, informing them of the problem's resolution.

Not all problems go through such an elaborate resolution process. For self-service-related PC tasks that do not require help desk assistance, for example, some vendors offer tools that automatically open, resolve, and close trouble tickets, completely eliminating help desk involvement. Help desk personnel even receive credit for successful trouble tickets, even though the open-resolve-close process is completely automated.

6.6.5 Management of vendor-carrier relations

Another benefit of the outsourcing arrangement comes in the form of improved vendor-carrier relations. Instead of having to consume staff resources managing multiple relationships with vendors and carriers, the client needs to manage only one: the outsourcing firm. Dealing with only one firm has several other advantages, including:

· Elimination of delays caused by vendor and carrier finger-pointing

· Improvement of response time to alarms and trouble calls

· Expedited order processing and move, add, and change requests

· Reduced time spent in reconciling multiple invoices

· Freed-up staff time for planning, prototyping, and pilot testing applications

· Containment of the long-term cost of network ownership

Short of a traditional outsourcing arrangement, reliance on an Integrated Communications Provider (ICP) might be a viable alternative. An ICP is a Competitive Local Exchange Carrier (CLEC) that provides multiple services over the same access connection and has its own data backbone network. The ICP provides end-to-end management of customer equipment, lines, and services. In addition to local and long-distance voice services, some of these providers offer Asynchronous Transfer Mode (ATM), frame relay, or Internet Protocol (IP) services through the same multiprotocol platform under centralized 24×7 surveillance and proactive management from a network operations center.

ICPs give customers the opportunity to take advantage of the most appropriate technology, or facilitate migration between them as their needs change, without having to deal with multiple service providers and equipment vendors. And with the latest generation of Integrated Access Devices (IADs), which support all of these traffic types, there is no need for customers to add or change the access equipment to take advantage of any or all of these technologies. The ICP takes care of reconfiguring the equipment to handle any combination of services, based on the customer's applications and bandwidth needs.

6.6.6 Maintenance, repair, and replacement

Some outsourcing arrangements include maintenance, repair, and replacement services. Relying on the outsourcing firm for maintenance services minimizes a company's dependence on in-house personnel for specific knowledge about system design, troubleshooting procedures, and the proper use of test equipment. Not only does this arrangement eliminate the need for ongoing technical training and vendor certification but the company is also buffered from the effects of technical staff turnover, which can be a persistent problem. Repair and replacement services can increase the availability of systems and networks, while eliminating the cost of maintaining a spare components inventory.

Contracting with a third-party depot service firm is an alternative to a traditional outsourcing firm for maintenance, repair, and replacement. Many service firms are authorized to work only on equipment from specific vendors so several such firms may be needed to take care of all the systems a company might have. The service firm should be staffed with technicians who have undergone vendor training and passed a certification test. A large firm will offer both on-site and in-house repair services and have a hefty parts inventory. A variety of plans are usually offered, including manufacturer's warranties in which there are no charges, customized warranties in which fixed pricing applies, and no-warranty plans in which time and materials pricing applies for repairs.

Typically, a third-party maintenance and repair firm works with customers in the following manner:

· Customer calls the firm to request service.

· The firm calls its logistics partner to arrange for pickup of the item at the customer site.

· The item is delivered to the depot center overnight where a qualified technician assesses the problem and makes necessary repairs.

· The repaired item is packed and shipped overnight back to the customer site.

The kind of equipment that can be maintained, repaired, or replaced by a depot service center varies. This arrangement is common with printers, computers, and servers, but there are firms that specialize in network equipment such as modems, channel service units, routers, hubs, switches, and multiplexers--just about any device that attaches to a LAN or WAN. Depending on the device, turnaround time averages three to five days, or optional expedited repairs are available. All repairs should be accompanied by at least a 90-day warranty.

6.6.7 Disaster recovery

Disaster planning has always been a mission-critical concern of businesses. And with increasing reliance on information systems and telecommunications services, companies of all types and sizes are reevaluating their plans to accommodate previously unforeseen events in the wake of the terrorist attacks in 2001. As part of this reevaluation process, companies are assessing options that will ensure business continuance under a variety of disaster scenarios.

Disaster recovery includes several components that may be outsourced to ensure the maximum performance, availability, and reliability of computer systems and data networks:

· Disaster impact assessment

· Network recovery objectives

· Evaluation of equipment redundancy and dial backup

· Network inventory and design, including circuit allocation and channel assignments

· Vital records recovery

· Procedure for initiating the recovery process

· Location of a hot site, if necessary

· Distribution of mission-critical applications and data among multiple, geographically separate locations

· Acceptance test guidelines

· Escalation procedures

· Recommendations to prevent loss of systems and networks in the face of new threats

· Security assessment and recommendations to prevent unauthorized access and hacker intrusions to corporate resources

Many of these activities are outsourced to multiple sources such as local and interexchange carriers, Application Service Providers (ASPs), managed service providers, and security service providers. Rarely will there be one source that can handle such a diverse and growing array of corporate disaster recovery needs. And for smaller companies to try to take responsibility for all these activities in-house would be cost-prohibitive.

6.6.8 Technology migration planning

A qualified outsourcing firm should be able to provide numerous services that can assist the client with strategic planning. Specifically, the outsourcing firm can assist the client company in determining the impact of the following:

· Proposed national and international standards

· Emerging products and services

· Regulatory and tariff trends

· International political and economic developments on service availability

· Strategic alliances among vendors and service providers

· Mergers and acquisitions among key vendors and service providers

· Competitive aspects of industry deregulation

With experience drawn from a broad customer base as well as its daily interactions with hardware and software vendors, service firms, carriers, and application developers, the outsourcing firm has much to contribute to clients in the way of assisting in strategic planning.

6.6.9 Training

Outsourcing firms can fulfill the varied training requirements of users, including:

· Basic and advanced communications concepts

· Product-specific training

· Custom training

· Resource management

· Security planning and implementation

· First-level testing and diagnostic procedures

· Help desk operator training

The last type of training is particularly important, since 80 percent of reported problems are applications oriented and can be solved without the outsourcing firm's involvement. This can speed up problem resolution and reduce the cost of outsourcing. For this to be effective, however, the help desk operator must know how to differentiate between applications problems, system problems, and network problems. This basic knowledge may be gained by training and improved with experience.

The outsourcing firm may have an arrangement with one or more strategic partners to actually design and deliver basic, advanced, and custom training to its corporate customers. Training may be provided on-site or at a facility leased from a hotel or conference center and supplemented with self-paced materials on a CD-ROM or on the Web.

6.6.10 Equipment leasing

Many times an outsourcing arrangement will include equipment leasing. There are a number of financial reasons for including leasing in the outsourcing agreement, depending on the company's financial situation. Because costs are spread over a period of years, leasing can improve a company's cash position by freeing up capital for other uses. It also makes it easier to cost-justify technology acquisitions that would normally prove too expensive to purchase.

Leasing makes it possible to procure equipment that has not been planned or budgeted for. Leasing, rather than buying equipment, can also reduce balance sheet debt, because the lease or rental obligation is not reported as a liability. At the least, leasing represents an additional source of capital, while preserving credit lines and investor confidence--the importance of both are magnified during periods of slow economic growth and the consequent scarcity of investment capital.

With new technology becoming available every 12 to 18 months, leasing can prevent the user from becoming saddled with obsolete equipment. This means that the potential for losses associated with replacing equipment that has not been fully depreciated can be minimized. With rapid advancements in technology and shortened product life cycles, it is becoming even more difficult to sell used equipment on the gray market. Leasing eliminates such problems, since the leasing company assumes responsibility for disposing of used equipment.

6.6.11 LAN administration and management

As the size, complexity, and expense of LAN management become too big to handle, companies may want to consider outsourcing the job. Certain LAN functions such as moves, adds, and changes can be safely outsourced because they cause little or no disruption to daily business operations. Such functions as planning, design, implementation, operation, management, and remedial maintenance are commonly outsourced, and LAN operation and management are the services increasingly needed by many firms.

Providers of LAN-related services can be categorized into three groups: computer makers, management and systems integration firms, and regional and long-distance carriers.

The strengths of the computer firms include a sound service and support infrastructure, knowledge of technology, and a diverse installed base. Their weaknesses include an orientation toward their own products and skills that are limited to certain technologies or platforms.

Systems integration and facilities management firms approach LAN outsourcing from the time-sharing, data center, and mainframe environments. Their strengths include experience in data applications, familiarity with multivendor environments, and a professional service delivery infrastructure. Their weakness is that they often lack international capabilities, although this is changing.

Carriers, including interexchange carriers, Local Exchange Carriers (LECs), and Value Added Network (VAN) providers, have expanded their network integration services to include LAN management outsourcing. They use the remote monitoring functions of Hewlett-Packard's OpenView, for example, to manage the LAN and WAN components of their clients. Some offer different levels of service to suit customer needs and budgets. Basic service might include fault, performance, and operations management. Enhanced service might include all elements in the basic service package, plus network planning and security management. Comprehensive service might include configuration management along with all the features of the enhanced service package.

Among the strengths of carriers is that they typically have a large service and support infrastructure, significant experience in physical cabling and communications, network integration expertise, and remote management capabilities. In addition, they have available considerable investment capital as well as strategic partnerships and alliances worldwide.

The strength of the value-added network providers is their ability to manage an internetwork of LANs as part of their Internet and frame relay services. Their chief weakness is that they do not have extensive service infrastructures and staff, and rely on local authorized contractors.

6.6.12 WAN administration and management

WAN management is the strength of regional and interexchange carriers. Carrier-provided outsourcing services include:

· Help desks for network administrators

· Router-to-router monitoring

· Coordinated maintenance of network services

· Analysis of WAN performance

· Network capacity planning

· Equipment vendor and carrier coordination

· Network monitoring and problem resolution

· Network efficiency analysis

· Network performance and utilization analysis

Pricing for such services depends on the number and location of network nodes, as well as the level of customization required. Some of these activities, such as network monitoring and problem resolution, may come with performance guarantees that are written into a Service Level Agreement (SLA). If the carrier exceeds a given threshold of noncompliance, the customer may be entitled to credits.

An outsourcing agreement can include the monitoring and management of wiring hubs, routers, multiplexers, Channel Service Unit/Data Service Units (CSU/DSUs), switches, and gateways. It can also include support for a variety of WAN protocols such as Systems Network Architecture (SNA), Transmission Control Protocol/Internet Protocol (TCP/IP), Internet Packet Exchange (IPX), frame relay, and ATM. As part of the outsourcing agreement, the company also can have the carrier arrange for all of the necessary lines and equipment, including local access connections with the various local exchange carriers and CLECs, and international carriers.

With regard to lines, the carrier that provides the outsourcing service can manage the access circuits provided by local carriers and monitor their performance from a network operations center. When problems arise, a trouble ticket is generated, and the local carrier is notified. The status of the trouble ticket is monitored until service is restored.

The pricing for WAN management services is determined by the types of services customers need and the size and complexity of their networks. The goal of some carriers is to charge companies 15 to 20 percent less than the estimated cost of performing WAN management tasks in-house.

The demand for WAN management services is especially high when international services are involved. Few multinational companies have a significant level of expertise in more than a few national markets. The creation of strategic alliances between U.S. and international service providers virtually guarantees dense network coverage and local support in many countries, making the outsourcing arrangement less risky today than in years past.

6.6.13 Network security

With hacker attacks and viruses becoming more frequent and malicious, companies are examining Internet security issues more seriously than ever before and taking steps to close potential breach points on their networks. The solution most commonly applied to meet these threats is the firewall, which enforces security by regulating access to and from the Internet, holding back unidentifiable content, and implementing countermeasures to thwart suspected break-in attempts. However, with large enterprises now spending lavishly on security, many hackers are turning their attention to small and midsize businesses. They know such firms cannot afford the expertise required to configure and manage their own firewalls, much less take effective countermeasures to stop attacks in progress at any time of the day or night.

For smaller companies, outsourcing the responsibility for security to an experienced service provider represents a cost-effective, no-hassles alternative to firewall ownership. In fact, acquiring security expertise is the biggest hidden cost of the do-it-yourself approach. The dearth of knowledgeable security personnel and the high salaries they command puts seasoned talent out of reach for many smaller companies. An outsourced firewall solution, on the other hand, allows small and medium-size firms to implement best-of-breed security solutions at a fixed monthly cost, and without the ongoing challenges of recruiting and retaining quality staff.

After submitting the network to a battery of vulnerability tests, the managed firewall service provider presents the customer with recommendations for fixing the problems that have been identified. The recommendations are codified in the form of rule sets that are loaded into the firewall. Rule sets can be defined to regulate passage of traffic according to its source and destination, specific applications and types of files, users or groups of users, and even limit access to resources by time of day. At this point, the service provider must be prepared to take full responsibility for configuring and fine-tuning the firewall and for ongoing management.

The managed firewall service provider should be able to generate performance reports that can be accessed by the customer on a secure Web site using a browser that supports 128-bit key encryption. By entering a username and password, the customer can view high-level charts and graphs that summarize the quality of network and application resources. Comparative performance data on specific network resources and groups of resources should also be available on the Web.

The managed firewall service should come with an SLA that includes performance guarantees for the following parameters:

· Network Security Operations Center (NSOC) availability

· NSOC answers call from customer within the predefined number of rings

· Callback from NSOC (if required by customer) within 30 minutes of contact

· Status reports of outage provided to customer every four hours until resolved (unless customer requests otherwise)

· NSOC complies with established escalation requirements

· Firewall configuration changes accomplished within predefined number of business hours

· Mean Time to Response (MTTR) for troubleshooting is two hours or less

· Firewall uptime, assuming firewall CPE is functional, as negotiated at time of contract

6.6.14 Enterprise applications

Many businesses find it difficult and time-consuming to run their own enterprise applications. Not only are they expensive to customize and maintain, but skilled personnel are hard to find and keep as well. Even email systems, which are taken for granted because they are so ubiquitous, are actually difficult for most organizations to run problem-free for any length of time. Businesses with up to 1000 employees may find outsourcing their email a more attractive option. By subscribing to a carrier-provided email service, these companies can save from 50 to 75 percent on the cost of buying and maintaining an in-house system.

Carriers even offer guaranteed levels of service that will minimize downtime and maintain 24×7 support for this mission-critical application. An interface allows the subscribing company to partition and administer accounts. Companies can even create multiple domains for divisions or contractors. Administration is done through the service provider's Web site. Changes are easy and intuitive--no programming experience is necessary--and the changes take place immediately. Many services even offer spam controls to virtually eliminate junk mail.

Outsourcing can level the playing field for companies competing in the Internet economy. Businesses no longer need to budget for endless rounds of software upgrades. A carrier-provided service can also include value-added applications such as fax, collaboration, calendaring, and unified messaging services.

For companies that are not ready to entrust their entire email operation to a third-party service provider, there are customized solutions that allow them to selectively outsource certain aspects and functions. For example, a company can choose to have its email system hosted on the service provider's server. Such "midsourcing" can reduce the costs of administration and support, and provide improved performance. In addition, the company can add new functionality easily, without incurring a costly upgrade.

6.7 Decision to Outsource

Strategic, business-oriented issues play a significant role in the decision to outsource. It is essential that potential users take stock of their operations before making this decision. Arriving at the correct solution requires an examination of the company's unique characteristics, including its human resources and technological infrastructure. For example, it is advisable to compare the costs of in-house operations with the services that will be performed by the outside firm. This entails performing an audit of internal computing and networking operations to determine all present and planned costs for hardware, software, services, and overhead. These costs should cover a minimum of three years and a maximum of seven years and should include specifics on major expenses that may be incurred within that time frame. This establishes a baseline figure from which to evaluate more effectively the bids of potential outsourcing firms and monitor performance after the contract is signed.

A detailed description of the operating environment should be prepared, starting with computer and network resources. This description should include:

· Hardware configurations

· Storage requirements

· Backup media and devices

· Operating systems

· Applications software

· Bandwidth requirements

· Communications facilities and services

· Protocols in use

· Quality of Service (QoS) requirements

· Locations of spare bandwidth and redundant lines

· Restoral methods

· Applications at remote locations

· Critical processing periods

· Peak traffic loads

The next step is to identify potential outsourcing firms. These vendors can then be invited to visit corporate locations to view the various internal operations, thereby gaining an opportunity to understand the company's requirements so that these can properly be addressed in a formal proposal.

A company that turns to outsourcing to alleviate problems in managing information systems or networks should realize that transferring management to a third party may not turn out to be the hoped-for panacea. Although outsourcing represents an opportunity for companies to lower costs and enhance core business activities, before such an arrangement is considered, it should be determined how well internal staff, vendors, consultants, and contract programmers are managed. If there are already difficulties in this area, chances are that the situation will not improve under an outsourcing arrangement. In this case, perhaps some changes in staff responsibilities or organizational structure are warranted.

6.8 Vendor Evaluation Criteria

Most vendors are flexible and will negotiate contract issues. Each outsourcing arrangement is different and requires essentially a custom contract. It is important to identify all the issues that should be written into the contract. This can be a long list, depending on the particular situation. The following criteria, however, should be included in any rating scheme applied to potential outsourcing firms:

· Financial strength and stability over the last three to five years

· Demonstrated ability to manage domestic and multinational computer systems and data networks

· Number of employees, their skills, and years of experience

· Ability to tailor computer and network management tools to client needs

· History of implementing the most advanced technologies and best-of-breed solutions

· Reputation in the industry, news media, investment community, and customers

· Fair employee transfer policies and benefits packages

· Quality and scope of strategic partnerships with equipment vendors, carriers, and application developers

The company, in keeping with its unique short- and long-term requirements, should set the weights of these criteria.

When it comes to software, suppliers may impose hefty transfer fees on licensed software if an outsourcing vendor takes over internal operations. This is often a hidden and potentially costly surprise. The common assumption among software users is that they can just move software around as they please from site to site. For the most part, software firms do not allow third parties to provide use to customers without a new license or significant transfer fees. Interestingly, this is the basis of a new business model called applications outsourcing, whereby Application Service Providers provide the infrastructure for allowing companies to access enterprise applications that they would not normally be able to afford. The ASP pays the software vendor a license fee based on anticipated usage.

The outsourcing firm should be required to submit a detailed plan--with time frames--describing the transition of management responsibilities. Although time frames can and often do change, setting them gives the company a better idea of how well the outsourcing firm understands the company's unique requirements. Time frames also provide a structure that imposes project discipline.

Performance guarantees that mirror current internal performance commitments should be agreed upon--along with appropriate financial penalties for substandard performance. The requirements should not exceed what is currently provided, unless that performance is insufficient, in which case the company should review its motives for outsourcing in the first place.

Satisfactory contractual performance guarantees for data center and/or network operations can be developed if sufficient information on current performance exists. Although it is possible to develop such guarantees in the applications development arena, the open-endedness of such projects makes it more difficult, which is the reason why many companies do not outsource this function.

A detailed plan for migrating management responsibilities back to the company at a future date should also be required. Despite the widely held belief that outsourcing is a one-way street, proper planning and management of the outsourcing firm will keep the option open of bringing the management function back into the corporate mainstream should it become necessary. Despite this option, the company may decide that, after the three or five years of the contract are up, the outsourcing arrangement should be made permanent.

6.9 Structuring the Relationship

Companies that outsource face a number of critical decisions about how to structure the relationship. Without proper safeguards, entering into a long-term partnership with the outsourcing firm can be risky. As previously noted, poor performance on the part of the service provider could jeopardize the client company's customer relationships and, ultimately, its competitive position.

It must be determined at the outset which party will respond to application, computer system, and network failures, and the degree to which each party will be responsible for restoring these elements back to proper operation. This includes spelling out what measures the outside firm must take to ensure the security and integrity of the data, financial penalties for inadequate performance, and what amount of insurance must be maintained to provide adequate protection against losses.

The outsourcing relationship must make explicit provisions for maintaining the integrity of critical business operations and the confidentiality of proprietary information. The firm must ensure that the outside firm will not compromise any aspect of the company's business.

The typical outsourcing contract covers a lengthy period of time--perhaps three to five years. Some contracts can go to seven years. Outsourcing firms justify this by citing their need to spread the initial costs of consolidating the client's data processing or network operations over a long period of time. This also allows them to offer clients reasonable monthly rates for services.

The relationship must provide for the possibility that the client's needs will expand or contract substantially as a response to customer demand and general economic conditions. The outsourcing firm's ability to meet changing needs (e.g., from the addition of a new division or acquisition of another company) should be evaluated and covered under the existing contract.

Companies entering into outsourcing relationships must also establish what rights they have to bring some or all of the management responsibilities back in-house without terminating the contract or paying an exorbitant penalty. However, this should not be done lightly, since it can take a long time to hire appropriate staff and bring them up to an acceptable level of performance.

To avoid getting locked into the outsourcing arrangement, organizations should minimize the sharing of data centers, networks, and application software and from relying too heavily on customized software, applications, and networks. It can be very difficult for a company to extricate itself from outsourcing arrangements when its operations are too tightly woven into those of other companies operating under similar arrangements. The contract should be structured so that upon expiration of the term, it can be put up for bid by other parties.

Contracts should provide an escape clause that allows the user to migrate operations to an alternative service provider should the original firm fail to meet performance objectives or other contract stipulations. Because it is difficult to rebuild in-house systems or network staff from scratch, it is imperative that users not outsource anything that cannot be immediately taken over by another firm. In fact, having another firm on standby should be an essential element of the company's disaster recovery plan.

The outsourcing agreement can provide major long-term benefits to the organization, if structured properly. The following ingredients make for successful outsourcing agreements:

· Prepare a separate, detailed Service Level Agreement that specifies financial penalties for missing performance targets on such things as network and circuit availability, mean time to repair, outage notifications, and response time to trouble calls.

· Refer to the SLA in the contract, but do not make it part of the contract. This allows minor changes to the agreement without affecting the contract and possibly causing implementation delays.

· At the outset, obtain separate pricing for each service provided by the outsourcing firm. This makes adding and deleting services a more straightforward process.

· If the network is international, obtain monthly detailed and summary billing reports in one currency.

· Require a single point of contact for sales, technical, and management issues. This minimizes opportunities for errors and finger-pointing between the outsourcing firm's partners.

6.10 Negotiations

When it comes to face-to-face bargaining, be aware that the outsourcing firm negotiates contracts every day, while a CIO may do it only a few times a year. This imbalance can be overcome by hiring an experienced consulting firm or specialized technology advisor to take part in the negotiations. These experts know just how far outsourcing firms are willing to go in winning new business. Regardless of who is actually negotiating the outsourcing agreement, there are several pitfalls that should be avoided.

For example, conventional wisdom contends that everything is negotiable when dealing with outsourcing vendors. However, a careful examination of the assumptions that lie hidden beneath the surface of this claim may go a long way toward ensuring the long-term success of the arrangement.

The first assumption that merits attention is that the buyer has properly defined the objective. This may sound rather rudimentary, but it is easy to get sidetracked in the heat of negotiations. For example, in negotiating a network management outsourcing agreement, is the objective to save money? Or is it to improve the availability of information systems and communication networks? The former objective is certainly more attractive, but it might come at the expense of the latter. Bottom line: If competitive advantage is compromised, what has been gained?

Second, there is the assumption that the buyer knows what outsourcing alternatives exist. In the case of network management outsourcing, the buyer must become familiar with the comparable offerings of carriers, vendors, and traditional service companies, as well as the large accounting and/or management firms. Such knowledge provides the buyer with negotiating leverage on such matters as response times, service options, training, maintenance, and equipment repairs and upgrades. But the more emphasis one puts on cost savings at the outset, the more inflexible the outsourcing firm is likely to become on other matters as one tries to negotiate terms and conditions.

The third assumption is that the buyer is prepared to ask the right questions. Related to this assumption is the fourth assumption, which is that the buyer will aim these questions at the right person. For example, asking a carrier how much it will cost to protect the entire T1 network against every possible link failure will elicit a few smiles from the account representative, plus a dollar figure that approximately doubles the cost of the network.

Pose the same question to a network designer, and the answer will turn out to be quite different. In eliminating redundant T1 lines in favor of Fractional T1 and/or multirate ISDN, the T1 network is not only totally protected, but at much less cost despite the addition of extra circuits. When confronting the carrier's representative with this information, suddenly he or she is ready to deal. Without the ability to aim the right questions at the right people, the buyer is at a severe disadvantage during the negotiations.

The fifth assumption is that the buyer understands technical terminology. While plain language is the preferred style of communicating with others, the use of technical (as well as legal and financial) jargon serves critical social functions. It is a form of ritual initiation, and it can be used to expose what one knows or does not know before serious ne gotiations begin.

If technical jargon is used correctly, one is treated as a peer and invited into the inner circle, where candor and fair dealing are the norm. If one does not talk the same language or--worse--pretends to talk the same language by relying only on buzzwords, not only is that person exposed but is never treated as a peer. The inner circle will be forever closed, which is a severe handicap during negotiations.

Boldly going into the negotiation process without adequate preparation is fraught with risks. Careful examination of the hidden assumptions behind this and other broad claims can save buyers from making serious mistakes, which can result in lost credibility among senior management and an outsourcing arrangement that is both costly and inflexible over the long term.

6.11 Conclusion

The pressures for third-party outsourcing are considerable and on the increase, especially as companies in virtually every industry look for ways to become more efficient and profitable without compromising the integrity of business operations. Requirements to service large amounts of debt have made every corporate department the target of close budgetary scrutiny, the data center and corporate network included. In addition, competition from around the world is forcing businesses to scale back the ranks of middle management, streamline operations, and distribute workflows for greater efficiency and economy. Outsourcing allows businesses to meet these objectives.

Although outsourcing promises bottom-line benefits, deciding whether such an arrangement makes sense is a difficult process that requires considerable analysis of a range of factors. In addition to calculating the baseline cost of managing in-house information systems and communications systems and networks, and determining their strategic value, the decision to outsource often hinges on the company's business direction, the state of its present data center and network architecture, the internal political situation, and the company's readiness to deal with the culture shock that inevitably occurs when two firms must work closely together on a daily basis.

Even if the outsourcing contract specifies financial penalties, discounts, or the withholding of payments in cases of subpar vendor performance, many companies have discovered too late that these provisions do not begin to compensate them for related business losses. All things must be considered and if doubt persists, outsourcing should be limited to a narrowly focused activity and expanded to other activities as the comfort level with the arrangement rises.

Figure 6.1 Outsourcing decision matrix.

Table of Contents

	Preface	xix
	Acronyms	xxi
Part 1	Assembling the Infrastructure
Chapter 1.	Role of the Communications Department	3
1.1	Introduction	3
1.2	Network Planning and Design	5
1.3	Network Management	10
1.4	Help Desk	18
1.5	Administration	19
1.6	Record Keeping	22
1.7	Training	23
1.8	Technical Support	24
1.9	Operations Management	25
1.10	Importance of Staff Continuity	26
1.11	Role of the CIO	28
1.12	Conclusion	29
Chapter 2.	The Procurement Process	31
2.1	Introduction	31
2.2	Managing Change	32
2.3	Organizational Objectives	33
2.4	Needs Assessment	33
2.5	Selecting Potential Vendors	34
2.6	Select the Vendor	49
2.7	The Action Plan	50
2.8	Feedback	50
2.9	Coping with Change	51
2.10	Conclusion	58
Chapter 3.	Writing the Request for Proposal	59
3.1	Introduction	59
3.2	Needs Assessment	60
3.3	General Information	61
3.4	Contract Terms and Conditions	67
3.5	Proposal Specifications	80
3.6	Technical Requirements	84
3.7	RFP Alternatives	88
3.8	Conclusion	89
Chapter 4.	Financial Planning	91
4.1	Introduction	91
4.2	Asset versus Expense Management	92
4.3	The Planning Process	93
4.4	Return on Investment	101
4.5	Procurement Alternatives	101
4.6	Financial Management of Communications	108
4.7	Requirements for Strategic Operation	110
4.8	Opportunity Assessment	111
4.9	Assessing Vendor Stability	116
4.10	Conclusion	118
Chapter 5.	Managing, Evaluating, and Scheduling Technical Staff	121
5.1	Introduction	121
5.2	Structuring the Setting	122
5.3	Managing the Process	123
5.4	A Closer Look at Bridging Skills	125
5.5	Integrating the Information	127
5.6	Support	130
5.7	Withdrawal	131
5.8	Why Bother?	132
5.9	Staff Expectations	133
5.10	Employee Evaluations	133
5.11	Computerized Scheduling Tools	140
5.12	Conclusion	140
Chapter 6.	Outsourcing Infrastructure	143
6.1	Introduction	143
6.2	Reasons to Outsource	144
6.3	Approaches to Outsourcing	146
6.4	Outsourcing Trends	146
6.5	What to Outsource	148
6.6	Typical Outsourcing Services	151
6.7	Decision to Outsource	164
6.8	Vendor Evaluation Criteria	165
6.9	Structuring the Relationship	166
6.10	Negotiations	168
6.11	Conclusion	170
Part 2	Organizing Technology Assets
Chapter 7.	Downsizing and Distributing Information Resources	173
7.1	Introduction	173
7.2	Benefits of Downsizing	174
7.3	Opportunity Assessment	174
7.4	Making the Transition	177
7.5	Distributed Processing Environment	178
7.6	Transition Aids	183
7.7	Organizational Issues	186
7.8	Implementation	188
7.9	Assuming a Leadership Role	194
7.10	Collocation Arrangements	195
7.11	Conclusion	198
Chapter 8.	Network Service and Facility Selection	199
8.1	Introduction	199
8.2	Transmission Media	199
8.3	Analog Services and Lines	230
8.4	Digital Subscriber Line	231
8.5	T-carrier Facilities	233
8.6	Centrex	234
8.7	ISDN	236
8.8	Packet Data Services	239
8.9	Bundled Services	249
8.10	Conclusion	254
Chapter 9.	Systems Integration	255
9.1	Introduction	255
9.2	Systems Integration Defined	256
9.3	Role of Business Process Reengineering	256
9.4	Types of Integrators	261
9.5	Evaluation Criteria	268
9.6	Alternative Arrangements	275
9.7	Conclusion	275
Chapter 10.	Help Desk Operations	277
10.1	Introduction	277
10.2	Help Desk Functions	278
10.3	Types of Help Desks	279
10.4	Help Desk Installation	280
10.5	Infrastructure Requirements	280
10.6	Operation	281
10.7	Staffing	285
10.8	Staff Responsibilities	287
10.9	Help Desk Tools	289
10.10	Role of Expert Systems	291
10.11	Delivering Support via the Internet	293
10.12	Outsourcing the Help Desk	295
10.13	NMS-Integrated Help Desks	296
10.14	Conclusion	297
Chapter 11.	Network Integration	299
11.1	Introduction	299
11.2	Internetworking Devices	300
11.3	Methods of Integration	307
11.4	Terminal Emulation	311
11.5	SNA-LAN Integration	312
11.6	Outsourcing Network Integration	319
11.7	Conclusion	320
Chapter 12.	Navigating Service Level Agreements	323
12.1	Introduction	323
12.2	Enterprise SLAs	324
12.3	Service Provider SLAs	334
12.4	Types of SLAs	338
12.5	Issues to Consider	352
12.6	Conclusion	354
Chapter 13.	Technology Asset Management	355
13.1	Introduction	355
13.2	Types of Assets	357
13.3	Methods of Implementation	370
13.4	The Cost of Asset Management	375
13.5	Standards	376
13.6	Conclusion	377
Part 3	Keeping the Network Healthy
Chapter 14.	Maintenance and Support Planning	381
14.1	Introduction	381
14.2	Service and Support Offerings	382
14.3	In-House Approach	384
14.4	Reporting Requirements	392
14.5	Equipment Requirements	394
14.6	Vendor and Carrier Services	396
14.7	Third-Party Maintenance Firms	397
14.8	Cooperative Arrangements	400
14.9	Cabling and Rewiring Considerations	401
14.10	Other Planning Activities	405
14.11	Conclusion	406
Chapter 15.	Network Monitoring and Testing	407
15.1	Introduction	407
15.2	Protocol Analyzers	408
15.3	Breakout Boxes	417
15.4	Bit Error Rate Testers	418
15.5	Analog Line Impairment Testers	418
15.6	DSL Testing	420
15.7	T-carrier Testing	421
15.8	ISDN Testing	423
15.9	Digital Data Service Testing	425
15.10	Testing Frame Relay Networks	425
15.11	X.25 Testing	426
15.12	Testing ATM Networks	427
15.13	Conclusion	428
Chapter 16.	Network Management	429
16.1	Introduction	429
16.2	Network Management System Functions	430
16.3	Network Management System	435
16.4	SNMP Integration	439
16.5	Remote Monitoring Management Information Base	442
16.6	RMON II	456
16.7	Conclusion	457
Chapter 17.	Network Design and Optimization	459
17.1	Introduction	459
17.2	Data Acquisition	459
17.3	Network Simulation	461
17.4	Bill of Materials	462
17.5	Network Drawing Tools	462
17.6	Drawing Techniques	463
17.7	Embedded Intelligence	467
17.8	Bandwidth Optimization	469
17.9	Optimization Issues	476
17.10	New Directions	477
17.11	Selection Criteria	480
17.12	Conclusion	481
Chapter 18.	Managing Technology Transitions	483
18.1	Introduction	483
18.2	The Transition Plan	484
18.3	Transition Methodology	486
18.4	Role of Outsourcing	492
18.5	Role of Process Reorganization	495
18.6	Topology Considerations	496
18.7	Support Issues	503
18.8	Management	505
18.9	Conclusion	506
Part 4	Protecting the Business
Chapter 19.	Network Security	509
19.1	Introduction	509
19.2	Risk Assessment	510
19.3	Access Controls	514
19.4	Other Security Measures	516
19.5	Data Encryption	520
19.6	Virus Protection	522
19.7	Firewalls	524
19.8	Remote Access Security	528
19.9	Policy-Based Security	532
19.10	Security Planning	533
19.11	Conclusion	535
Chapter 20.	Business Continuity Planning	537
20.1	Introduction	537
20.2	Planning Process	538
20.3	Staff Roles	540
20.4	Security Risk Assessment	545
20.5	Outsourcing Business Continuity	548
20.6	Training	553
20.7	Development Tools	554
20.8	Conclusion	555
	Index	557

Editorial Reviews

The Barnes & Noble Review
This book is a practical guide that puts project phase and other infrastructure issues into a proper perspective to greatly increase the chances for success in building and operating advanced communications systems and networks. Nathan J. Muller has put together a very comprehensive tour through the responsibilities of the network manager that will leave you thoroughly prepared for the projects ahead.

Muller starts by spelling out the responsibilities of the communications department -- from network planning and design to configuration management, maintenance, security, and everything in between. Next, he thoroughly examines the procurement process and provides an outstanding guide for writing a request for proposal (RFP). Muller then discusses financial planning and offers a little insight into managing the technical staff. Outsourcing and downsizing are also taken into consideration, as well as a thorough discussion of network services and system integration. There is also a very useful discussion on help desk operations.

Muller then rounds out this excellent book with chapters on maintenance, monitoring, optimization, and managing technology transitions. There is also a chapter on network security. And, while security nowadays deserves a huge proportion of your overall effort, the subject is nicely presented here as an introductory discussion for both experienced and entry-level professionals.

If you're an IT professional in the communications industry and your responsibilities involve managing networks, this book will give you specific insights into the role of the network manager. It will also make it much easier to tackle the daily operations involved in running a business-scale network in an orderly and effective manner. John Vacca

John Vacca, the former computer security official (CSO) for NASA's space station program (Freedom), has written 38 books about advanced storage, computer security, and aerospace technology.