Managed connectivity solutions yield a range of operational benefits. Although many organizations can engage low-cost connectivity services if their devices have minimal connectivity needs, DIY connectivity management for devices requiring more complex connectivity often costs more than using a managed service provider. VDC’s survey found that projects not using a managed service provider were twice as likely to have the average monthly connectivity cost per device exceed $20.
In addition, using a manager service provider often improves the reliability of the communications services. Such providers, for example, may employ routers with dual-SIM cards and have agreements with multiple cellular network carriers, such that a system automatically switches to an alternate carrier if the primary carrier’s system is temporarily unavailable or operating at reduced efficiency. Dual-SIM technology can be particularly important in locations where cellular service is spotty or inconsistent.
The ability to limit and efficiently address connectivity issues generates a range of cost savings. Connectivity issues will invariably happen for a variety of reasons (carrier downtime, local IT updates, device issues, etc.), so it is important to have solutions in place to minimize disruptions. The use of a managed service provider does just that, reducing the frequency of connectivity issues. The survey found that projects not using an MSP had, on average, two-and-a-half times as many connectivity issues per year [See Exhibit 9]. This omission can result in service disruptions and dissatisfaction among users, not to mention the direct costs to remedy the problem.
Managed service providers also help reduce the hours needed to fix issues. On average, organizations can cut the operational hours spent resolving issues by 70%. Although the majority of connectivity issues can be remedied remotely, depending on the nature of the connectivity issue and the location of a device, resolving the problem may require a “truck roll” (i.e. sending a technician to the site to effect repair or replacement of routers, antennas, SIM cards, etc.). More than one quarter of connectivity issues required a truck roll at a fully loaded cost (including labor and vehicle expenses) of more than $450. By reducing the frequency of these issues, cost savings can quickly multiply with fewer service calls, truck rolls, and replaced hardware.
MSPs can help organizations cut the operational hours spent resolving connectivity issues by 70%
Aggregating this range of benefits, organizations can save over 60% in costs from connectivity-related downtime per year by using a managed service provider [See Exhibit 9]. With some connected fleet deployments involving thousands of devices, the cost savings from using an MSP can scale to millions of dollars in this area alone. In addition, further reducing costs is possible, based on MSP selection. OptConnect, for example, offers free lifetime hardware replacement for defective devices as part of its fully managed connectivity service plan. Without the benefit of an MSP like OptConnect, deploying organizations can be straddled with hundreds, if not thousands, of dollars more in annual hardware replacement costs.
Organizations can save over 60% in costs from connectivity-related downtime per year by using a managed service provider
