Local Area Networks (LANs) are quickly becoming as complicated as the enterprise Wide Area Networks (WANs). Segmenting Virtual LANs (VLANs), classifying traffic, applying Quality of Service (QoS) tagging, ensuring high availability, and routing between internal subnets are necessary in the new enterprise LAN. Outsourcing LAN management can significantly reduce the burden on internal resources.

There are several advantages of outsourcing LAN management to a managed service provider, including:

	24/7 network monitoring, surveillance, and alarm response.
	Skilled network administrators available for performance optimization, architectural design, implementation, moves, adds, and changes.
	Guaranteed performance service levels, such as provisioning intervals, Mean Time to Repair (MTTR), availability, and performance.
	Detailed record keeping and reporting, including the ability to track all network changes.
	Reduced internal staffing and training requirements. Headcount may not be reduced, but new headcount can be avoided.
	Reduced overhead. The need for expensive network management software and tools is eliminated.

A managed LAN service is not for every enterprise, but by asking a few questions based on the potential benefits outlined above, enterprises can determine if there might be a fit.

	If the enterprise is paying internal resources to support 24/7 network surveillance, whether through dedicated full time or on-call staff, this cost can likely be reduced through outsourcing network management.
	If highly skilled network management staff are employed by the enterprise, they may not be fully utilized. Outsourcing LAN management divides the cost of these highly trained and skilled professionals across many enterprises.
	If an internal network Service Level Agreement (SLA) is in place, the cost to maintain the agreed upon service levels can become difficult to justify. If no SLA is in place, the cost of LAN outages and performance problems can be considerable as well. Using a managed LAN service can allow the enterprise to provide SLAs at a lower cost than the internal organization.
	Creating and maintaining network documentation, and availability and performance reporting, can be onerous and costly. These services are included in most managed LAN services.
	The cost of training and retaining highly skilled network management staff is not trivial. A managed LAN service provider has the critical mass to hire several of these professionals.
	The cost of network management applications and tools is largely eliminated with a managed LAN service, as they are supplied by the service provider.

Consider the answers to these questions and what the cumulative costs and internal requirements are to administer, maintain, and manage the LAN internally.

Typically, the cost to manage the LAN internally will be more than if the function was outsourced. There are benefits to outsourcing LAN management – including potential cost savings – but do those benefits outweigh the possible benefits of internal management? The answer is not straightforward. In many cases, the advantages of having on-site staff that understand the network and are dedicated to ensuring that it operates optimally will outweigh any potential cost savings.

Alternatively, a managed LAN service will provide very structured LAN administration, management, security, and reporting capabilities supported by an SLA that might be difficult to maintain internally. The decision to use a managed LAN service provider should not be taken lightly and should take into account not only the cost, but also the ability of the organization to ensure this critical component of the IT infrastructure is managed optimally.

Be sure to evaluate internal capabilities and requirements as well as cost. The following should be considered when considering a managed LAN service:

1. Evaluate the current structure. Identify the skill sets of the current network management group to determine if it can support the business requirements for the LAN over the next two to three years. If significant skills upgrades will be necessary, then consider outsourcing.

2. Consider cost structure. If the costs to manage your LAN internally are increasing and are expected to continue to grow, managed LAN services may provide SLA-backed service at a reduced cost. However, keep in mind that moves and changes (MACs) will be charged for, so an enterprise that requires frequent MACs may see an increase in cost.

3. If it isn't broken, it probably doesn't need to be fixed. If the network management group is providing high availability and strong performance at a reasonable cost, then a managed LAN service will not likely reap any cost or performance benefits.

As enterprise LANs become relied upon to carry voice and mission-critical applications, the architecture becomes much more difficult to manage and administer. Network managers struggling to keep up with staffing and skills requirements to manage the increasingly complex infrastructure should evaluate our managed LAN services.