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The case for managed services
Eric Pradier, Motorola Services’ Vice President and General Manager, reviews the types of managed service arrangements that are available for critical communication networks and some of the issues that organisations should assess when evaluating the support they may need.
The operational case for deploying an ultra reliable and secure communication like Tetra for both the private and public sector is strong. However, governments and enterprises are faced with a prominent challenge: how best to construct, and subsequently operate, systems. For a growing number of organisations, managed services provide the answer.
Critical communications are especially suited to managed services: a claim substantiated by both practical and financial considerations. By calling on dedicated expertise, enterprises and governments can immediately acquire knowledge in how best to build, maintain and upgrade networks.
It’s expertise with cost advantages; managed service companies introduce high levels of efficiency to reduce CapEX and OpEX (capital/operating expenditure) and also offer performance guarantees. These are critical benefits. Enterprises are necessarily focused on solving the conundrum of driving costs from operations while simultaneously improving service, and governments must demonstrate value in an environment where expenditure is scrutinised intensely.
Organisations should assess where their competencies lie – do they have the skills to set up and maintain a critical communications network? If they have the capacity to create the necessary in-house resource, what might the costs be to do that compared to outsourcing? And what are the hidden costs such as people’s time and technical support? Due to the versatility of managed service contracts, there are a range of options to evaluate.
Companies can use external support to advise them on the system they need and then build and operate it themselves. This model tends to apply to private networks where a single Tetra antenna, core equipment and end-user support can be delivered by a small group of engineers. Where regional or nationwide coverage is involved, a significant number of personnel are required to: oversee control rooms, monitor the network etc. It’s unusual for organisations to have the competencies and the resource to invest in each of these areas.
Consequently, managed services can be relied upon to provide all, or part of, these requirements. Managed service contracts provide performance assurances; especially important for organisations with no prior knowledge of how to build, own and operate systems. Nationwide networks often have a lifespan of two decades or more and maintaining and upgrading them costs more than the initial build. With this equation in mind, customers have pressed for contracts that see managed service companies take on more responsibility. The objective of this is to ensure that risk is brought under greater control, and that uncertainties and rewards are more equitably shared between themselves and their managed service suppliers.
Managed service companies have responded to this demand by offering two distinct models to suit different business or government needs: “turnkey” and “build, own and operate” agreements.
Delivered to a pre-agreed price, timeline and benchmarks (eg call quality and capacity), turnkey projects remove risk and control costs during the design and contruction of communications system. With turnkey projects the infrastructure vendor often remains involved in areas such as spares management once the system has been handed over. The network operator then oversees the majority of maintenance and upgrade requirements.
Build, own and operate: “Inception to retirement” schemes where companies construct, own and maintain systems are becoming popular. In this case the vendor is responsible for the network and in return there is a charge for network access and maintenance over extended periods. With an understanding of their financial liabilities, public safety organisations can focus on service delivery.
Also, all emergency services can access infrastructure to extend cost and performance returns. The build, own and operate model is also applied in the private sector. Complete Tetra systems that come with dedicated support and assistance to customise applications are available from companies such as Motorola. Alternatively, businesses can opt to use infrastructure constructed for national public safety systems by leasing space.
