Internet Service Providers, how much do you know about the terminology?

To fully understand the network and its capabilities, sometimes it's best to go back to the basics. An ideal starting point is to understand what network services are and how you can purchase them.

So, what are network services? Network services are functions or applications that run to ensure that the network meets business and performance objectives. They include various communication methods, network operations, management and monitoring, performance and security services. In short, they make the network run behind the scenes.

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Over time, network services have adapted to changes in the network and network technology. Services from years ago differ from current services in order to align with business priorities and necessary needs. While some of these building blocks have changed significantly, the fundamental elements that make up network services and how enterprises purchase them remain the same.

Businesses can purchase network services directly from network service providers or through managed service providers, value-added resellers and system integrators, depending on the type of service and management they require.

The following key words will explain the basics of what network services are and who provides them. These basic terms will help build a basic vocabulary for network services.

Index: Basics of Network Services

Network Service Provider (NSP). NSPs are companies that control, operate and sell their Internet backbone infrastructure and other services such as web hosting and network access points. As the name suggests, NSPs provide a variety of network services, but not only that, they are also responsible for building and maintaining the fiber optic cables and core routers that make up the Internet.

NSPs primarily sell services to other service providers, which in turn provide different types of services, such as Internet connectivity, to consumers and businesses. Once a customer connects to the NSP's infrastructure, the NSP routes the traffic to ensure it meets demand.

NSPs are essential to modern networks and support wireless carriers, virtual network operators, and Internet service providers. Some NSP representatives include AT&T, CenturyLink, Sprint, and Verizon.

Internet Service Provider (ISP). ISPs are similar to NSPs, but they provide Internet connectivity and can use the underlying backbone infrastructure from the NSP. They can provide facilities to establish points of presence (POPs) on the Internet, which can be local, regional, national or online.

Many ISPs own and operate their own backbone infrastructure to enable them to serve as Internet and network service providers. Compared to smaller ISPs, these larger ISPs are less dependent on telecom providers to form POPs in their geographic areas because they own their own high-speed leased lines. In addition, larger ISPs can also connect to each other through exchange centers.

Businesses can purchase Internet connections from ISPs via a variety of delivery methods, including broadband, Ethernet, fiber optic, cable, and DSL. Each of these options offers different levels of bandwidth, speed, and availability.

Managed network services. Managed network services are similar to basic network services. However, instead of handling the various aspects of the service directly, they outsource various applications and functions to a managed service provider (MSP), who remotely operates, monitors, and maintains the network service.

Managed network services are a way for small businesses with limited resources to gain IT and network expertise without hiring an entire IT team. For larger businesses, managed services can relieve their dedicated IT staff of minor disruptions and inconveniences so that employees can work on other projects.

Managed Service Provider (MSP). An MSP is a company that remotely manages IT infrastructure and systems. MSPs typically provide services based on a subscription model or service level agreement. Monthly recurring revenue streams can differentiate MSPs from other service providers because they can provide organizations with a more predictable business basis.

Typical MSP customers include small and medium-sized businesses, as managed services are a good way for them to get IT assistance and expertise. However, MSPs face challenges in the ever-changing network industry, including the rise of cloud computing, as MSPs must learn to manage cloud architectures. Another challenge is maintaining a balance between overall operating costs for customers and their own profits.

System Integrators. System integrators build computing systems for customers with hardware, software, networking or storage products, and can combine corresponding services from different vendors into customized off-the-shelf packages. System integrators provide enterprises with a simplified way to combine services to achieve their goals. Integrators assess business needs, define technical requirements, and then provide a plan for software, hardware and system integration.

Enterprises can use system integrators to obtain customized architectures for service integration. For example, with cloud computing, integrators can combine internal IT infrastructure with cloud-based applications. Like other vendors, system integrators also change over time in order to meet the changing technology, network services and business needs of their customers.

Value-added reseller (VAR). VARs resell software, hardware, and networking products, providing businesses with a useful package that goes beyond the product itself. In the case of networking services, for example, a VAR might create an application for a hardware platform and sell the combined result as a turnkey item or a fully complete service. Some larger VARs also offer services such as consulting, design, and training. These are often called solution providers, and they sometimes receive authorization to work with vendors.

People often compare VARs to system integrators because they can also perform customized integration when reselling products. However, VARs usually deal with SMB customers. In the future, many value-added resellers may also transform into MSPs.

Large enterprises also work with VARs to get help with complex projects and evaluate product options. VARs can also specialize in certain industries, such as healthcare or finance. In addition, VARs can serve as a single point of contact between suppliers and enterprises, minimizing the back-and-forth process of purchasing services.