10/10/2006 -- Cisco Systems Inc. last month launched its Managed Services Solution (MSS), a new offering designed to address rapid service deployment as well as standards-based fault and monitoring features. Cisco's MSS is a joint software and services offering, consisting of professional services (such as life cycle planning, implementation and design) and new software for OAM functions.

Analysts like the move, which they say positions Cisco to offer service providers one of the most complete managed Ethernet service solutions for both residential and business applications alike. "Providers can now manage their offerings from the IP core through the multiservice edge and aggregation layers of the network and into the enterprise," comments Gerald Hunt, a principal analyst for carrier infrastructure with consultancy Current Analysis.

Hunt says Cisco's MSS helps round out its NGN product portfolio "by providing more assistance to service providers in addressing the complex design and implementation issues associated with video and advanced data services" such as "zero-touch" provisioning.

"The MSS elevates Cisco's professional services capabilities to compete better with its Tier 1 rivals in delivering end-to-end solutions," Hunt argues. For one thing, he says, "Cisco has addressed most of the remaining weaknesses in its NGN product offerings and it has added the ability for the service provider to extend its penetration into the enterprise with the promise of supporting high-value managed services."

Cisco also addresses the network back-end with new OAM service level assurance capabilities (based on IEEE 802.1ag fault management, IEEE 802.3ah link protection and monitoring) for first-mile physical connectivity verification, as well as MEF-16 E-LMI for service status and availability, Hunt points out. In addition, the MSS -- which leverages an Integrated Services Router (ISR) inside the enterprise network -- supports CPE-based managed security services, service analysis and zero-touch provisioning.

"The move is significant since, according to Cisco sources, business services represent as much as 38 percent of projected wireline service provider revenues," he points out. "Cisco's ISR is one of the most widely deployed enterprise routers, and the MSS enables service providers to offer high-value managed services to the enterprise on top of it." What's more, Hunt notes, enterprise managed services (provisioning, managed security, and voice services) are also feasible.

The big takeway, Hunt concludes, is that Cisco has become an increasingly cagey competitor in the services space. "The ramp up in Cisco's own professional services offerings shows that the company is closing the gap with its major competitors, [most of] which leverage their extensive service organizations to differentiate themselves," he argues. -Stephen Swoyer