U.S. Enterprises Modernize Networks Through Managed Services
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software-defined networkingtechnical
Software-defined networking is a way to control and manage computer networks using centralized software rather than relying on many individual hardware switches and routers. Think of it like replacing a room full of manual light switches with a single app that can rewire lighting patterns instantly. It matters to investors because it can cut costs, speed rollouts, improve security updates, and enable more flexible, scalable services that drive revenue and reduce capital spending.
secure access service edge (SASE)technical
A secure access service edge (SASE) is a cloud-delivered approach that combines networking and cybersecurity into a single service to connect users, devices and branch offices to applications wherever they are. Think of it as replacing separate roads and security checkpoints with one managed highway that both directs traffic and screens travelers; for investors, SASE matters because it can drive predictable subscription revenue, lower operational costs, and reduce security risk for customers.
security service edge (SSE)technical
Security Service Edge (SSE) is a cloud-based bundle of tools that protects users and data as they access internet services and applications, no matter where they are. Think of it as a virtual security checkpoint that inspects traffic, blocks threats, and enforces access rules before data moves between people, apps, and the internet. Investors care because SSE shapes cybersecurity spending, recurring revenue models for vendors, and a company’s ability to safely scale cloud and remote work, which affects risk and growth prospects.
network as a service (NaaS)technical
Network as a service (NaaS) is a cloud-based offering that delivers networking capabilities—like secure connections, traffic routing and performance monitoring—on a pay-as-you-go basis instead of a company owning and running the hardware. For investors, NaaS matters because it turns a capital-heavy, specialist function into a recurring revenue service for providers and gives customers flexibility and faster scaling, which can drive predictable cash flows and faster adoption of cloud-based business models.
hybrid IT environmentstechnical
A hybrid IT environment is a company’s mix of computing resources where some systems and data run on the company’s own hardware and others run in cloud services, like splitting work between an in‑office workshop and a rented workshop. Investors care because this mix affects costs, speed of rollout, security and regulatory compliance — factors that influence a company’s operating efficiency, capital needs and risk profile.
multicloudtechnical
Multicloud is the practice of a company using cloud computing services from two or more different providers instead of relying on just one, like keeping money in several banks so you can use each bank’s strengths. For investors, it matters because it can lower operational risk, improve reliability and flexibility, and affect costs and growth prospects — all of which influence a company’s profitability and competitive position.
ai-assisted network operationstechnical
AI-assisted network operations use artificial intelligence as a co-pilot to monitor, troubleshoot and optimize computer and telecommunications networks automatically. Like an autopilot that notices and corrects small problems before they become crashes, it can reduce downtime, cut operating costs, speed rollouts of new services and improve security — all factors that can affect a company’s revenue, margins and competitive position for investors.
iottechnical
The Internet of Things (IoT) describes a network of everyday devices—such as appliances, vehicles, and equipment—that are connected to the internet and can share data automatically. For investors, IoT represents a growing trend that can drive efficiency and innovation across many industries, potentially creating new opportunities for growth and value. Its expansion influences how companies operate and compete in a digitally connected world.
Organizations expand use of managed networks for reliable performance and security across hybrid mobile and cloud environments, ISG Provider Lens® report says
STAMFORD, Conn.--(BUSINESS WIRE)--
U.S. enterprises are rapidly adopting managed network services as network complexity, security exposure and regulatory pressure make advanced network capabilities essential for business continuity and growth, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.
The 2025 ISG Provider Lens® Enterprise Managed Network Services report for the U.S. finds that companies increasingly require coordinated management of underlay networks, cloud connectivity, software-defined networking and security functions. This trend reflects the rapid expansion of hybrid IT environments, distributed work modes and connected devices, which has strained internal network teams. Enterprises increasingly seek centralized visibility, consistent performance and predictable operations across core, cloud and edge environments.
“Network underlay and overlay operations have become a strategic concern rather than a background IT function,” said Leon Platts, partner and president, ISG Network and Software. “U.S. enterprises recognize that resilient, agile, secure and scalable networks are fundamental to proactively supporting AI adoption and keeping pace with business demands.”
U.S. enterprises are prioritizing integrated management of network environments that span fixed, mobile, wireless and cloud architectures, the report says. They face challenges maintaining performance and reliability as applications and users spread out across locations. Centralized orchestration and monitoring help companies reduce outages and improve service consistency. These capabilities are increasingly important for organizations operating complex hybrid and multicloud environments.
Security and regulatory compliance are driving adoption of advanced network security architectures, ISG says. Enterprises are implementing secure access approaches such as secure access service edge (SASE) and Security Service Edge (SSE) to protect users, data and applications outside traditional perimeters. These architectures address risks posed by remote work, increasing cloud use and IoT expansion. Regulatory requirements related to healthcare, consumer privacy and data protection heighten the urgency for stronger, integrated controls.
Enterprises are also adopting AI-assisted network operations to manage scale and complexity, the report says. Automation and analytics improve incident detection, performance optimization and response times. These tools reduce reliance on manual processes that cannot keep pace with growing network demands. AI-enabled operations support more predictable performance while lowering operational risk.
“Enterprises are balancing agility, cost control and resilience as networks evolve,” said Kenn Walters, lead author of the report. “Managed services help organizations address skill gaps while maintaining consistent network performance.”
The report also explores additional managed network trends affecting U.S. enterprises, including adoption of flexible consumption models and efforts to improve cost visibility across network operations.
For more insights into the network management challenges faced by U.S. enterprises, along with ISG’s advice for addressing them, see the ISG Provider Lens® Focal Points briefing here.
The 2025 ISG Provider Lens® Enterprise Managed Network Services report for the U.S. evaluates the capabilities of 34 providers across three quadrants: Managed Network Services Evolution, Managed Enterprise Connectivity Solutions (DIA, VoIP & VPN) and Network as a Service (NaaS).
The report names Accenture, Comcast Business, GTT, Kyndryl, NTT DATA and Orange Business as Leaders in all three quadrants. It names Colt, HCLTech, Microland and Verizon Business as Leaders in two quadrants each. DXC Technology, Tata Communications and Wipro are named as Leaders in one quadrant each.
In addition, Capgemini, Computacenter and Tata Communications are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.
In the area of customer experience, Tata Communications is named the global ISG CX Star Performer for 2025 among Enterprise Managed Network Services providers. Tata Communications earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.
The 2025 ISG Provider Lens® Enterprise Managed Network Services report for the U.S. is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens® Research
The ISG Provider Lens® Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.
About ISG
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.
