Vanco Euronet, an independent managed network services supplier, anticipates a revenue run rate that it expects to touch 30m pounds in 1999 from its 70 ‘substantial’ managed network agreements. Vanco Euronet reckons it has created its own profitable niche as a provider of managed wide area networking (WAN) services across Europe to mid-tier businesses. The […]
Vanco Euronet, an independent managed network services supplier, anticipates a revenue run rate that it expects to touch 30m pounds in 1999 from its 70 ‘substantial’ managed network agreements. Vanco Euronet reckons it has created its own profitable niche as a provider of managed wide area networking (WAN) services across Europe to mid-tier businesses. The company says its independence enables it to sell what it considers the most suitable combination of products to fit individual projects, and enables it to shop around until it finds the best-cost service. The liberalization of the European telco market means there is now a wide choice of networking services available, with an estimated 270 telco and circuit suppliers operating in Europe. But the complexities of choosing the best carrier, added to the technical barriers of wide area networking and the move to e-commerce, have left an opening for companiers such as Vanco. The company has loaded its 150-strong workforce towards networking technicians which account for around 90 of its staff. Formed in 1988, the company estimates its managed network contracts provide WAN services to some 100,000 end users in 19 European countries. Services include data, intranet, voice, video and fax. The company runs Inchcape’s global intranet, and lately has developed an ISDN dial-up extranet that ties together the 200-strong dealer chain of Chrysler Cars in the UK. Other customers include the Financial Times, Meyer International, Lee Cooper and Otis Elevators. Vanco Euronet fosters the notion of shared risk project assignments and likes to include in its contracts a risk-reward clause. If by rationalizing a customer’s WAN services or by redesigning a network to minimize bandwidth or by swapping out a circuit provider in favor of a more cost-efficient one, then in return Vanco expects to take 20% of any savings. After detailing a technical specification and carrying out any necessary pilot study Vanco Euronet also agrees to take full responsibility for a customer’s WAN service. A contract will typically last for three years minimum and include some degree of consultancy and network design. Other aspects take in project management and implementation, network management and maintenance, and account management and performance review. The company has offices in London, Paris, Madrid, Amsterdam, Copenhagen and Frankfurt. Its competition comes from the likes of Equant, GlobalOne, BT Syncordia or IBM Corp, but none of these offer its level of indepedence, the company claims.
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