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Managed Network Solutions provided by Verizon Business Services. All services may not be available in all areas.© 2006 Verizon. All Rights Reserved.
Verizon Managed Network SolutionsVerizon Managed Network Solutions
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PROPRIETARY STATEMENT
This document and any attached materials are the sole property of Verizon and are not to be used by you other than to evaluate Verizon’s service.
This document and any attached materials are not to be disseminated, distributed, or otherwise conveyed throughout your organization to employees without a need for this information or to any third parties without the express written permission of Verizon.
The Verizon names and logos and all other names, logos, and slogans identifying Verizon’s products and services are trademarks and service marks or registered trademarks and service marks of Verizon Trademark Services LLC or its affiliates in the United States and/or other countries. All other trademarks and service marks are the property of their respective owners.
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AgendaAgenda
Current Versus Desired States
Definition of Managed Services
Total Cost of Ownership
Impact of Downtime
Selecting a Managed Services Provider
Summary
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Why Are We Here Today?Current Versus Desired States
Why Are We Here Today?Current Versus Desired States
Resolve Router EOL with Resolve Router EOL with minimal capital impactminimal capital impact<Equipment><Equipment>
Build network to support Build network to support future convergencefuture convergence<Application Issues><Application Issues>
Improve network reporting Improve network reporting and trendingand trending<Average Network Utilization><Average Network Utilization>
Maintain (preferably reduce)Maintain (preferably reduce)network costnetwork cost<Network Availability><Network Availability>
Increase bandwidth to enable Increase bandwidth to enable SAP rollSAP roll--outout<Management Strategy><Management Strategy>
Raise network availability Raise network availability to 99.9%to 99.9%<# US Sites # Global Sites><# US Sites # Global Sites>
Build a single global networkBuild a single global network<Carrier & Contract Info><Carrier & Contract Info>
DesiredCurrent
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What Is a Managed Network?What Is a Managed Network?
OPTIONAL
Managed Devices
Managed Link or Interface
Unmanaged Link or Interface
Project ManagementTechnical Expertise
Project Expertise
PM Tools
Past Templates
LANSwitch
LANSwitch
Servers
Hub
Hub
Network Operations CenterManagement Tools
Staff Expertise
Process
LANSwitch
WANRouter
Engineering and PlanningTechnical Expertise
Broad Design
Experience
Field Engineers and PartsAccessibility
Rapid Availability
Staff Expertise
Process
WANWAN
6 ISO Definition
Essential Elements of a Managed ServiceEssential Elements of a Managed Service
OPTIONAL
Access Control, Policy, Audit, and Breach DetectionSecurity
Collection, Reporting, Analysis, and Capacity Planning
Performance
Usage Tracking and Service Cost AllocationAccounting
Provision, Change Management, Auto Discovery, Back-Up/Restore, and Inventory/Asset Management
Configuration
Detection, Correlation, Isolation, Recovery, and Reporting
Fault Management
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Architected Availability vs. Managed AvailabilityArchitected Availability vs. Managed Availability
Architected = Network Architected = Network Availability Availability DesignDesign
• Infrastructure design balanced with business objectives
• Includes diversity, back-up, equipment sparing, and maintenance strategy
• Balanced with business objectives and costs
Managed = Managed = Network Restoration Network Restoration Availability Availability and Preventionand Prevention
• True measure of a Managed Services Provider
• Includes Management Discipline (process and resources):
– Ability to detect and restore network events quickly
– Change Management Discipline and Performance Reporting
Financial InstitutionFinancial Institution• Downtime generally measured
in millions
• Loss of financial trading
• 99.999% availability
• On-site sparing, on-site techs
• Fail-over CPE, diverse network
Retail IndustryRetail Industry• Downtime generally measured
in thousands
• Inability to process credit transactions
• 99.9% availability
• Remote spares, techs
• Dial back-up
Range of Range of Customer NeedsCustomer Needs
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Total Cost of OwnershipVisible Costs
Total Cost of OwnershipVisible Costs
• Physical costs:
– Transport
– CPE, including software and break/fix
– Diversity and redundancy
– Management tools, hardware and software:
» Fault, configuration, asset, performance, security
• Human capital to perform the functions:
– Network planning
– Monitoring
– Fault isolation and restoration
– Equipment maintenance
– Performance assessments
– Training
OPTIONAL
““There’s more There’s more
to network to network management management than the than the management management of network of network components.”components.”
Source: Source: Gartner ResearchGartner ResearchJanuary 2003January 2003
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Total Cost of Ownership Hidden Cost Estimates
Total Cost of Ownership Hidden Cost Estimates
The Yankee Group, November, 2004
How much is the prevention of an hour of
downtime worth?
Transportation
Retail
E-commerce
Media
Banking
Brokerage
$0M $.5M $1M/ $1.5M $2M $2.5M $3M $3.5M $4M $4.5M $5M
$2,600,000
$1,150,000
$113,000
$90,000
$89,500
$4,500,000
$700$700InfrastructureInfrastructure
$1,000$1,000MessagingMessaging
$1,000$1,000Human capital managementHuman capital management
$1,500$1,500Financial managementFinancial management
$3,500$3,500ATM/POS/EFTATM/POS/EFT
$3,700$3,700Customer service Customer service
$10,000$10,000EE--commercecommerce
$11,000$11,000Supply chain managementSupply chain management
Estimated Outage Estimated Outage Cost Per MinuteCost Per Minute
Business ApplicationBusiness Application
Profit-Draining Potential A mere minute of downtime can bring big losses.
Source: ALINEAN, January 2004
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Total Cost of OwnershipBusiness Impact of Downtime
Total Cost of OwnershipBusiness Impact of Downtime
Loss of:Loss of:
– Brand equity:
» Website accessibility
» Customer relationship management
– Productivity of knowledge workers
– Business applications
– Critical sites, such as manufacturing or warehouses
– Data networks for regulatory reporting
– E-Commerce:
» B2B transactions
» Credit card processing
» Supply chain management
What is the financial impact of downtime What is the financial impact of downtime
within your company?within your company?
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Total Cost of Ownership Risk Mitigation
Total Cost of Ownership Risk Mitigation
•• Effective network management strategies help:Effective network management strategies help:
– Ensure that your network is performing to the architected availability
– Minimize the impact of an outage
•• Companies have choices:Companies have choices:
– Do it yourself; you are responsible for everything
– Choose a Managed Services Provider:
» Out-task some or all of the functions
“As trends such as web services, IP convergence, and on-demand computing continue to develop, the reliability of the network will become even more important. The network will support even more critical business applications, increasing the cost of downtime.”Source: The Yankee Group, November, 2004
12 Source: Based on Gartner Research Brief, June 2003
Why Look at Managed Network Services Providers?Why Look at Managed Network Services Providers?
• Focus on core business
• Lack of in-house expertise
• Minimize investment risk
• Improved reliability
• Frequent maintenance and upgrades
• Globalization
• Network change and complexity
“With the high cost of labor and major network transitions, enterprises that bring management of their networks in-house will spend as much as 25% more than those using Managed Services Providers.”
Source:
Gartner Research, January 2003
13 Source: Gartner Symposium, March 2004
How to Select a Managed Network Services ProviderHow to Select a Managed Network Services Provider
• References/past performance
• Definition of service/SLA
• Process and methodology
• Technology expertise
• Agility/ability to accept and govern change
• Price/contract practices
• Viability/strategic and tactical partnerships
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References/Past Performance Verizon’s Proven Track Record in Managed Network Services
References/Past Performance Verizon’s Proven Track Record in Managed Network Services
• Verizon manages customer premises equipment and networks:
– Over 3,400 customer networks
– 149 countries
– Over 207,000 devices
– Nearly 8 million remote access user accounts
Since 1989, Verizon has managed networks for some of the world’smost successful companies and government agencies.
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Verizon outsourcing initiated with Chrysler IDNX in 1989.
Currently, Verizon manages 3,400 customer networks in centers around the world.
Networks 1 4 28 60 73 203 299 352 444 1,037 1,793 2,530 2,572 2,661 3,400
1989- 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Global Managed Services Customer Network Growth
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CPE and Site Services
Managed Telephony
LAN Management
WAN Management
*2006 roadmap additions highlighted in yellow
• CPE:– Source– Install– Maintain
• Inside Wiring• Standard• Custom
• Site Survey
• Managed PBX/KS• Managed IP PBX
• Cisco• Nortel• Avaya
• Telecom Exp Mgmt• Hosted IP PBX• Managed IP Centrex
• Managed LAN:–Switch/Hub/
Router–Non-Switch
Devices• Campus LAN• Wireless LAN*
• Managed WAN:• Managed Ethernet
• IP VPN• Internet Dedicated -
Managed• Custom Services
Managed Network Solutions Portfolio
• Application Management• Managed Migration• Rapid Deployment
• Program/Project Management • Performance/Capacity
Planning• Change Control
• Network Assessment• IP Readiness• Wireless
• Design Consulting
•Professional Services
Definition of ServiceVerizon’s MNS Portfolio
Definition of ServiceVerizon’s MNS Portfolio
Integrated Services
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Definition of ServiceVerizon’s Managed Services Continuum
Definition of ServiceVerizon’s Managed Services Continuum
Customer manages:Strategic Direction
Verizon manages:Monitoring Fault IsolationFault NotificationFault Restoration-LogicalFault Restoration-PhysicalMaintenance-Break/FixAsset ReportingChange Management-LogicalChange Management-PhysicalConfiguration Back-UpPerformance ReportingSecurity Policy Security Patching
Customer manages:Strategic DirectionSecurity Policy
Verizon manages:Monitoring Fault IsolationFault NotificationFault Restoration-LogicalFault Restoration-PhysicalMaintenance-Break/FixAsset ReportingChange Management-LogicalChange Management-PhysicalConfiguration Back-UpPerformance ReportingSecurity Patching
Customer manages:Strategic DirectionFault Restoration-LogicalChange Management-LogicalChange Management-PhysicalSecurity Policy and Patching
Verizon manages:Monitoring Fault IsolationFault NotificationFault Restoration-PhysicalMaintenance-Break/FixAsset ReportingConfiguration Back-UpPerformance Reporting
Customer manages:Strategic DirectionFault IsolationFault Restoration-LogicalFault Restoration-PhysicalChange Management-LogicalChange Management-PhysicalConfiguration Back-UpSecurity Policy and Patching
Verizon manages:Monitoring Fault NotificationMaintenance-Break/FixAsset ReportingPerformance Reporting
Customer manages:Strategic DirectionMonitoring Fault IsolationFault NotificationFault Restoration-LogicalFault Restoration-PhysicalMaintenance-Break/FixAsset ReportingChange Management-LogicalChange Management-PhysicalConfiguration Back-UpPerformance ReportingSecurity Policy and Patching
Verizon manages:Nothing
OutsourcingFull Mgmt.Physical Mgmt.Monitor and NotifyDo It Yourself
Co-ManagedManaged
VerizonVerizon
ManagedManaged
InIn--HouseHouse
0%
100%
Percentof Service
ProviderManagement
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Definition of ServiceTransport-Independent Management Service
Definition of ServiceTransport-Independent Management Service
•• Management of nonManagement of non--Verizon networks:Verizon networks:
– Over 25,000+ non-Verizon circuits managed today
– Over 60+ network service providers globally
•• SLA metrics available on thirdSLA metrics available on third--party circuitsparty circuits
•• SingleSingle--vendor responsibility vendor responsibility that enables transport and vendor diversity
•• Leverage Verizon global field force Leverage Verizon global field force for rapid restoration
•• Integrated NOC Integrated NOC for rapid isolation and remote restoration
•• Drive lower Total Cost of OwnershipDrive lower Total Cost of Ownership
•• Test the watersTest the waters without requiring a network migration; maintain network diversity but with a single view to all your network end-points
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*Terms, conditions, and restrictions apply. See your Verizon account manager for complete SLA details.1Subject of one or more U.S. Patents Pending.
Service Level AgreementVerizon's Competitive Standard SLA
Service Level AgreementVerizon's Competitive Standard SLA
IndustryIndustry--leading repair (Full Management WAN)leading repair (Full Management WAN)**::• As low as 3.5-hour Time To Repair (U.S. Verizon
circuits/maintenance)
• Third-party circuits now covered:
– As low as 4-hour Time To Repair
• Rest of world based upon geography
IMPACT $120M+ invested:IMPACT $120M+ invested:• Fault isolation and restoration tools
• Automated rapid fault isolation1
EndEnd--toto--end fault visibility and restoration (Verizon)end fault visibility and restoration (Verizon)
LEC eLEC e--bonding and auto ticket creationbonding and auto ticket creation
PTT inPTT in--country relationshipscountry relationships
Operational support model:Operational support model:• Globally deployed technicians
• NOC integrated team
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Meeting Service Level AgreementsTypical Customer or Non-Carrier Test Points
Meeting Service Level AgreementsTypical Customer or Non-Carrier Test Points
No Visibility or ControlVisibility
and Control
Verizon Verizon PoPPoPLEC PoPLEC PoPCustomer SiteCustomer Site
M13-DS1to DS3
MuxM13-DS1
to DS3 MuxDS3-DS1
DXCSmartJack
FiberMux
FiberMux
MSP/SI or DIY Test
Points
Router
CSU/DSUPhone
PC
Out-of-BandRouter Dial
Access
SwitchFR/Private IP/ATM Internet
Switch FR/ATM/FR/ATM/
Private IP/Internet Private IP/Internet
NetworkNetwork
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Meeting Service Level AgreementsEnd-to-End Fault Visibility and Restoration
Meeting Service Level AgreementsEnd-to-End Fault Visibility and Restoration
Visibility or ControlVisibility
and Control
LEC PoPLEC PoPCustomer SiteCustomer Site
M13-DS1to DS3
MuxM13-DS1
to DS3 MuxDS3-DS1
DXCSmartJack
FiberMux
FiberMux
Router
CSU/DSUPhone
PC
Out-of-BandRouter Dial
Access
SwitchFR/Private IP/ATM Internet
Switch FR/ATM/FR/ATM/
Private IP/Internet Private IP/Internet
NetworkNetwork
FaultManagement
ProactiveMonitoring
Verizon Remote
Loop-Back Points
Verizon ITS
Test Points
X
Automated Dispatch to LEC
Verizon Verizon PoPPoP
Edge Visibility and LEC/ Verizon
E-Bonding
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99.8
80
99.9
12
99.9
16
99.9
36
99.9
39
99.9
34
99.9
32
99.9
28
99.9
19
99.9
34
99.9
33
99.9
48
99.9
38
2.56 2.55 2.542.38 2.38 2.28 2.11 2.08
2.28 2.28 2.312.75
2.44
98.00
98.20
98.40
98.60
98.80
99.00
99.20
99.40
99.60
99.80
100.00
Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05
Avail
ab
ilit
y
1
2
3
4
5
6
7
8
9
10
MT
TR
Ho
urs
Availability MTTR MTTR Target < 3.5 hours Availability Target > 99.9%
Automated Rapid Fault Isolation has improved performance.Automated Rapid Fault Isolation has improved performance.
Average TTR reduced by an additional 15 minutes in 2005.Average TTR reduced by an additional 15 minutes in 2005.
Total Element-Based Availability averaged for all managed elements (circuits, routers, and non-routers) on a global basis.
Target: 99.9%
CoreMSO
Measures
Other
TrackingMeasures
Contractually
ObligatedSLAs
Service Level Agreements Delivering Exceptional Service
Service Level Agreements Delivering Exceptional Service
Target: 3.5 hours
Rapid Fault Isolation
(patent pending) Expert System
Implemented
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Process and MethodologyAwards, Certifications and Patents
Process and MethodologyAwards, Certifications and Patents
• Industry Leading Award Winning Service– Frost and Sullivan Award (9/2005)
» Customer Leadership
– Industry Leading SLAs (3.5h TTR)*
– Exceptional Operations
» Avg. Jan-Jun 2005 TTR < 2.5 hours
– Customer Recognition Awards (FAA)
• Quality Process Leadership and Commitment– ISO 9001:2000 Certification
– ITIL (Best Practice) Assessment
• Innovation in Network Management– Rapid Fault Isolation** – Expert System
– Network Management Systems – EMC/Smarts Whitepaper
– Smithsonian Awards (NASDAQ, IDEA)
• Award Winning Management Platform (IMPACT)– Technology Managers Forum – Best Practices Award (10/2005)
– InfoWorld Top innovative corporate IT solutions (11/2005)
The Frost & Sullivan Award for
Customer Service Leadership is
bestowed upon the company that
has demonstrated excellence in
customer service leadership within
the industry. The recipient company
has shown tremendous
responsiveness to customer
needs and has continually focused
on long and short-term customer
profitability goals. In addition, the
recipient company demonstrated
flexibility in tailoring their
product offerings to suit customer
businesses.
*Full Management, US with Verizon Circuits and Maintenance**Subject to one or more U.S. patents pending
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Process and Methodology Implementation and Transition
Process and Methodology Implementation and Transition
•• Proven experience managing activationProven experience managing activation in the past seven years:
– Up to 1,100 sites per month
– Over 1,500 managed networks implemented
– 30,000 nodes designed and implemented
– Over 130+ countries, utilizing Verizon resources
•• Speeds adoptionSpeeds adoption of new managed network infrastructure:
– Knowledge, techniques, and business relationships
– Can rarely be matched by customer’s staff
•• A premier team of professionalsA premier team of professionals that includes certified resources dedicated to delivering managed networks:
– Managed Services Operations personnel hold over 375 certifications
•• Offers mature, disciplined processes,Offers mature, disciplined processes, as well as workflow automation and leading-edge account and project management technologies’
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Technology ExpertiseBreadth of Technologies and Relationships
Technology ExpertiseBreadth of Technologies and Relationships
•• Established business vendor relationships: Established business vendor relationships:
– Cisco, Nortel Networks, third-party installation and maintenance providers
•• Broad range of transport technologies:Broad range of transport technologies:
– Satellite, Private Line, X.25, Frame Relay, ATM, MPLS
– Private IP, IP VPN, IP VPN broadband, optical wavelengths
•• Broad range of existing services:Broad range of existing services:
– WAN, LAN, security, IPv6
•• Additional services to become available in 2006 include:Additional services to become available in 2006 include:
– Wireless LAN, IP Readiness Assessments
•• Broad range of equipment vendors: Broad range of equipment vendors:
– Cisco, Nortel, Adtran, Motorola, Juniper, 3Com, Lucent, Visual, Check Point, NET, Alcatel, Hughes, Ericsson, Nokia, Verilink
•• Broad range of CPE devices:Broad range of CPE devices:
– Routers, LAN switches, hubs, multiplexers, servers, probes, PBX, FRADs, access nodes
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Higher Availability Can Translate Into Overall Savings*
NEWNEW
TCO PropositionIndustry-Leading Repair and Restoration
TCO PropositionIndustry-Leading Repair and Restoration
•• AwardAward--winning worldwinning world--class management platform:class management platform:
– End-to-end network view; edge to core
– Automated Rapid Fault Isolation1 (Verizon network only):» 30-60 minute restoration time over other MSPs or DIYs can translate
to additional downtime cost savings
– LEC e-bonding in U.S. can minimize LEC hand-off time
•• StaffStaff--support model:support model:
– Single NOC engineer: » Empowered across transport + edge CPE
– Globally deployed field techs and engineers
•• Leader in restoration:Leader in restoration:
– SLA is 3.5 hour TTR, “Repair,” not “Respond.”
– In 2004, Verizon consistently averaged 30 minutes better than goal.
– In 2005, Verizon is consistentlyaveraging 60 minutes better than goal.
$42,000$42,000$31,500$31,500$21,000$21,000$10,500$10,500
60 min.60 min.45 min.45 min.30 min.30 min.15 min.15 min.
* Based on $700/minute infrastructure downtime cost estimate cited in the ALINEAN, January 2004 study highlighted earlier.
1 Subject of one or more U.S. Patents Pending.
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Verizon ValueVerizon Value
• 3,400+ networks in over 149 countries globally
• More than 16 years managing customer networks
• Breadth of services from monitoring to outsourcing
• Standard, custom, and dedicated NOC solutions
• Industry-leading restoration
• Multi-vendor management
• Proven processes
• Automated rapid fault isolation, remediation process
• Broad range of technologies and vendors supported
References/References/
Past PerformancePast Performance
Definition of Definition of
Service/SLAService/SLA
Process Process
and Methodologyand Methodology
Technology/Technology/
Vendor ExpertiseVendor Expertise
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Verizon Managed Network ServicesSummary
Verizon Managed Network ServicesSummary
• Verizon provides maximum flexibility, helping manage all or part of your network.
• Verizon can help you to lower your TCO.
• Verizon can assist you to determine your TCO.
• Verizon Managed Services allows your company to focus its resources on its key business initiatives.
• Verizon has a proven track record of delivering exceptional network availability and restoration.
• Verizon delivers one of the most comprehensive suites of global managed solutions.
• Verizon delivers just the right fit for your business needs – today, tomorrow, and into the future.
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For More InformationFor More Information
• To speak to a Verizon Representative about whether Verizon Managed Network Solutions are right for your business:
– Fill out a consultation form at:http://mediumbusiness.verizon.com/products/managed/net_solutions/aspx
Or
– Call 1-800-201-1452, press 1