Context
The MNS market is highly competitive. During the past 12 months, MNS providers seeking a competitive advantage have rapidly expanded their investments in automated processes and AI to improve network visibility and end-user experience. They also have applied AI and automation upgrades to speed incident detection and faster remediation of network outages or security breaches.
That said, offerings vary widely in service quality and the extent of support and monitoring. Providers that have implemented more process automation and AI into their service delivery platforms tend to have higher scores in key metrics, such as FCR and repair times, both of which are indicators of a better quality service provider.
This variability requires heads of I&O to choose their MNS partner carefully. To assist in that evaluation, this Magic Quadrant focuses on key features and support levels for MNS providers’ managed LAN, WAN and security service delivery to global enterprise customers. This includes choice of vendor partners, quality of service-level agreements and improvements in service delivery and customer support.
Market Overview
Market Remains Highly Diverse and Growth-Oriented
The MNS market remains highly competitive and diverse, including:
However, service features and capabilities vary dramatically, including service response times, the ability to monitor and manage underlay circuits and equipment, and the extent of security services monitoring. Providers also vary in their MNS bundling strategies. Some require MNS customers to buy other products and services such as hardware, software or network circuits. All providers in this research do not require these additional bundled purchases.
Gartner also has observed an increasing trend among MNS providers to outsource some elements of their service delivery to third-party support or technology vendors. Coordination between two organizations for service delivery tends to result in slower response times, but much depends on how providers manage these relationships and the extent of the outsourced support.
If, for example, a provider tightly integrates an AI security vendor’s authentication control technology into its service delivery platform, it may strengthen overall security access control functions with little resulting service delivery delay. In contrast, if a provider outsources a large portion of its network operations center support to a third party, it can lead to miscommunications and delays in incident response. For this reason, Gartner recommends that heads of I&O require prospective MNS providers to reveal the extent of third-party involvement in service delivery.
MNS Players’ AI Use Deepens, Evolves Toward Agentic AI
During the past several years, MNS providers have been transitioning from manual to automated network processes to make their service delivery platforms more responsive and efficient. This has laid the necessary groundwork allowing them to move to AI for IT operations (AIOps), which relies heavily on automation. AIOps is now widely used among major MNS players to analyze network telemetry and events more quickly than humans, allowing them to provide customers with greater visibility into their networks. AI also supports faster detection and resolution of network outages and security issues.
Further, MNS providers are now deploying network AI assistants, an extension of AI technology that allows humans to interact with AI-powered network management systems via natural-language chat conversations. And in the past year, MNS providers have begun to adopt agentic AI, an evolutionary step from network AI assistants.
Unlike network AI assistants that provide support at the direction of human engineers, AI agents are goal-oriented, acting autonomously to complete network tasks with little or no human oversight. In the past year, MNS providers have started to deploy AI agents primarily to perform network configuration tasks or oversee dynamic path selection, switching traffic to an alternative connection if a primary connection falls below certain requirements for critical applications.
In time, we expect MNS providers will rely on AI agents to carry out a larger number of network tasks, leading to more automated networks. Still, this transition is in early stages. MNS providers’ level of AI agent adoption varies widely from pilot phase to full implementation. Moreover, the service benefits for end enterprise users are mixed. While providers claim AI agents as part of a larger AIOps operating strategy have significantly improved on-time activation, incident detection and network outage repair times, there is little evidence of this in their SLAs. These SLAs have changed little in the past few years.
And while AI and agentic AI can help MNS providers improve their service delivery, the technology itself poses an existential threat to managed services. Networking and security vendors also are building AI and agentic AI capabilities into their products, giving them greater network traffic analysis and troubleshooting capabilities. This opens the door for end enterprise customers to self-manage and monitor their networks, thereby lessening the demand for MNS (see Why Agentic NetOps Will Move Enterprises Away From Managed Network Services).
Gartner has seen continued client interest in MNS services during the past year, particularly in the multicloud enterprise segment, where IT staff is limited and has a greater need for MNS support. There also is continued interest in co-managed services, where the enterprise retains certain management responsibilities, such as security policy control and network device configuration. Moreover, these customers now have access to expanding AI and agentic AI management capabilities built into network equipment vendors and SaaS providers’ offerings to help them co-manage their networks alongside an MNS partner.
Security Drives MNS Service Growth
MNS providers’ managed LAN and WAN services are relatively stable, with improvements mostly focused on AI monitoring and management features. In contrast, managed security services are rapidly expanding, with added SASE vendor options and protections such as threat hunting, XDR and cloud security.
MNS providers’ managed security investment strategy focuses on expanding AI and now agentic AI integrations to improve traffic monitoring and security incident detection. Some MNS providers also are integrating NOC and SOC operations as the security and network interconnection deepens. For the end enterprise, this offers greater choice and depth of managed security products and potentially fewer successful cyberattacks that result in damaged operations and revenue loss.
A handful of forward-looking MNS providers also have added features such as PQC protection. This offers protection from the threat that hackers, armed with quantum computers, will break basic network encryption and steal sensitive user/customer identity information or intellectual property.
However, as with other managed services, providers are at varying stages of managed security service evolution. Capabilities vary, so Gartner recommends using competitive RFPs that require providers to spell out their managed security capabilities. Also, Gartner recommends that enterprises ask prospective managed security providers about their service roadmaps for AI and PQC security.
NaaS and Consumption-Based Pricing Offers Proliferate
During the past year, MNS providers have ramped up marketing for network-as-a-service (NaaS) options, often promoting them more heavily than traditional fixed-price service delivery options. Gartner defines NaaS as a standardized, highly automated delivery model that supports dynamic scaling of network resources and is primarily owned and operated by the provider. Pricing is either consumption-based or as a subscription based on usage metrics.
How providers define NaaS varies. Most providers in this research have launched a NaaS option, but they range from design, installation, leased hardware and monitoring service for a single fixed monthly price to packages that allow customers to add or drop services or adjust service levels via their customer portal.
While NaaS offerings are often marketed as a more convenient and economical option, heads of I&O should proceed with caution. Such offerings frequently lack billing transparency, include excessive equipment lease prices and limit customers’ ability to reduce service levels. In addition, NaaS offerings that include consumption-based billing lack price predictability, making them unpopular with company chief financial officers.
Therefore, Gartner recommends that enterprises require MNS providers to provide NaaS service proposals with clear pricing of all service elements. This will allow heads of I&O to accurately calculate the long-term costs and compare that to standard service pricing models with purchased and installed equipment and monthly fees only for ongoing monitoring and maintenance support.