Cloud computing is a radical technology that has drastically altered the way organizations use and manage networks. Since its conception, cloud computing has made inroads into the traditional technology space with its cost-effectiveness and high dependability. As a result of the drawn-out economic crisis across the globe, enterprises have cut back on their IT spending, resulting in them providing minimal funding for research and development. But the fact is that they need to invest more money to upgrade and overhaul existing networks to support cost-effective growth initiatives such as moving to the cloud, rich media and bring your own device.
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At the current adoption rate, many tech experts predict that cloud computing will be the predominant technology of the future. These concrete and impelling predictions are forcing companies to work towards grabbing a foothold of the new space, as a result the competition has already heated up. As an apt premeditated move, Hewlett-Packard Company, a global information technology company, launched a new network service to announce its entry into the space. The network service will allow enterprise level customers to rent and sell enterprise HP’s advanced networks. HP proclaims it to be the largest technology company in the world with its portfolio comprising of hardware manufacturing, personal computing, software development, IT services and IT infrastructure services.
The service is also referred to as ‘FlexNetwork Utility Advantage’. Similar services have already been launched by the likes of Amazon and IBM, who sell and rent private and hybrid cloud space. This type of paid network service is popularly known as managed network service. Though the terminology and concept is new, it resembles the same frameworks used for setting up local-area and wide area networks. By entering the shared network management space, HP is competing directly with the likes of Cisco and Avaya, who are the market leaders in the network services space.
Though HP is way behind Cisco and Avaya in the space, its distinctness from the two is there to see. HP does not rent the networks directly to enterprise level customers, rather it rents the service via telecommunication service providers. The whole renting process is broken down as follows: First, the telecommunication service provider is contracted to use HP’s network space, without any upfront payment. Then, the telecommunication service provider rents the service as a pay-per-use service to its business customers. Finally, the telecommunication service provider pays HP on the same pay-per-use basis. The whole pay-per-use process is calculated based on equipment usage and HP holds the ownership of the used equipment.
If a customer wants to activate or deactivate ports, it can be done on agreeing specific terms and monthly support service fees with the telecommunication service provider. The primary objective of FlexNetwork Utility Advantage service is to offer pay-per-use network space to organizations and enterprises, so as to let them align network infrastructure expenses based on the actual usage.
The features and benefits of the Rent-A-Network service are:
• Effective pay-per-use managed network service.
• Offers advanced and reliable network infrastructures to meet the high demands of moving to the cloud.
• Renders mobility along with Bring your Own Device capabilities.
• Enables enterprises to bring cloud environments to support networks and campuses.
With the FlexNetwork Utility Advantage service, enterprise customers can overhaul their existing networks with standard and prepackaged network solutions that include both hardware and software. The architecture of FlexNetwork is an open and standards-based architecture that supports software-defined networking (SDN).
This service in a way helps telecommunication service providers upgrade their customer networks. In terms of clients acquired, Swisscom, one of the major telecommunication services providers in Switzerland, is the first customer who has signed on for the service. HP also states that it has been in advanced talks with a number of US-based service providers to sign prospective deals.
In conclusion, HP has successfully entered a new playing field, which though competitive, will seed its future growth. Learn more about various types of networks and their limitations, on this website: www.mobilearabi.net