According to a recent study released by Information Services Group (ISG), European businesses are increasingly seeking the expertise of managed network services providers (MNS) to propel their digital transformation efforts. The report highlights that these companies are turning to MNS to navigate the complexities of modern ICT infrastructures and to address the growing threats posed by cyberattacks.

The demand for MNS services is driven by the advancements in technology, particularly in fields like AI and GenAI, which require specialized knowledge that many organizations find challenging to manage in-house. Additionally, the rise of distributed applications and hybrid operating systems amplifies the complexity of managing data across on-premises, cloud, and edge network environments.

Jon Harrod, a partner at ISG Network Advisory, noted that businesses are increasingly relying on multicloud configurations and transitioning their owned assets to network-as-a-service models. This shift not only reduces IT capital expenditures but also streamlines staff training and minimizes risks associated with constant software changes.

MNS providers offer an extensive range of services, including disaster recovery, fault diagnosis, configuration management, and overseeing remote installations, all aimed at optimizing network operations. Organizations are turning to these services to gain competitive advantages through diverse network technologies.

As network function virtualization evolves, enterprise workloads are diversifying across mobile, branch, and edge devices, complicating the tasks of internal ICT teams. Even though MNS primarily manages on-premises and hybrid systems, the increasing complexity remains a critical factor driving the sector’s growth.

Managed network services also encompass cybersecurity aspects, providing continuous software updates and expert support along with robust security measures like firewalls, audits, and advanced intrusion detection systems. According to Jan Erik Aase, a worldwide leader and partner at ISG Provider Lens Research, as enterprise networks grow, so do their complexity and security demands. Poor network administration can introduce cybersecurity risks, a challenge that managed network service providers are well-positioned to address.

The ISG report also discusses the challenges that European CIOs and CISOs face in articulating the return on investment (ROI) from their ICT investments. Beyond technical solutions, these executives seek advisory services from managed service providers to help align investments with business objectives effectively.

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