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 Channel Futures

Sales & Marketing


Add-on Managed Service: WAN Optimization

  • Written by John Moore 1
  • August 10, 2009

Managed service providers (MSPs) looking to extend their reach may find a ripe niche in managed WAN optimization. Here are some observations.

Michael Leonard, manager, Market Management Application Networking Services, at Cisco Systems, said he sees increased demand for WAN optimization services. A Cisco whitepaper predicts the worldwide market for managed application-acceleration services will hit $1.3 billion in 2011. In Cisco’s case, the service is built around the Wide Area Application Services network module of its Integrated Services Router (ISR).

The target market? Organizations looking to consolidate branch office servers and centralize applications in the data center — while hoping to preserve LAN-like performance.

Leonard views managed WAN optimization as a logical step for networking-focused services providers. He said many service providers offer WAN links, then managed routers and managed security. WAN optimization lets MSPs build upon those services. And when MSPs help with application performance, they get closer to their customers’ core business, Leonard explained.

So, essentially, managed WAN optimization provides a bridge that helps networking-oriented MSPs cross over to the applications side. But service providers with a server/application focus can also offer WAN optimization to their customer base, Leonard noted. He said the service providers that get into WAN optimization are either managing the network link and the router or have a practice around application management.

Cisco has nine publicly disclosed partners offering managed WAN optimization services. But the company, naturally, isn’t alone in pursuing ties to service providers in this space. Blue Coat Systems, Juniper Networks , and Riverbed Technology (among others) also cultivate MSPs.

Contributing blogger John Moore covers Master MSPs, Web hosts and emerging opportunities. Follow MSPmentor via RSS; Facebook; Identi.ca; and Twitter. And sign up for our Enewsletter; Webcasts and Resource Center.

Tags: Cloud Service Providers Digital Service Providers MSPs VARs/SIs Sales & Marketing

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2 comments

  1. Avatar Michael Leonard August 10, 2009 @ 2:34 pm
    Reply

    John,

    nice article, thanks for the mention. At Cisco we are seeing a lot of uptake for managed WAN Optimization services. In the face of decreasing budgets and reduced staffing we are hearing that IT organizations increasingly want to outsource network operations and focus on their core business, so they are looking to get more services from their service provider.

    According to reports WAN Optimization is a top service under consideration because it helps organizations to deliver on their initiatives to reduce IT costs while still maintaining application performance.

    Cisco WAAS has a number of features such as transparent network integration, that preserves services on the network and a module for the Integrated Services Router that brings down the total cost of ownership, so service providers and customers find it a compelling offering. We also have appliances for those cases where the router isn’t managed.

    Our Press Release with Service Providers is here: http://bit.ly/AVG5e

    We are on Twitter for the latest news: http://www.twitter.com/ciscowaas

    Michael

  2. Avatar Scott Smith February 24, 2010 @ 1:34 pm
    Reply

    Regular WAN monitoring also offers a very effective low-cost way to optimize bandwidth. WAN optimization products really only address a symptom. Dropping non-prioritized packets at the network edge doesn’t address the source of the traffic being generated. In most management cases, going to the source of problem is where one finds bliss.

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