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Glow Networks Business Model
Glow’s success in large part has been due to its ability to move several client engagements from staff augmentation services to a Managed Services Model.
Managed Service Partner Relationships
Glow Networks’ continues to provide “Time and Material/Expense” or Contractor Placement services as client needs dictate. However, pivotal to Glow’s overall business strategy has been to develop a strong portfolio of Managed Service Partner (MSP) offerings. The MSP focus is in recognition that short term contract placement engagements adds considerable volatility to the business environment and hampers the ability to invest. Further the nature of such business does not foster the growth of a highly skilled pool of resources but rather it creates a “revolving door” environment as both parties respond to constantly changing circumstances.
On the other hand a MSP arrangement provides the client with access to a stable and predictable workforce that continually grows in proficiency and value. Further the nature of a MSP engagement leads to a close and trusting working relationship that benefits each party as additional or more advanced services often become woven into the effort.
A growing MSP portfolio also supports Glow’s strategic management of resources allowing for advanced skills and cross-training in preparing valued resources for an expanded or next engagement. The key to maintaining and growing these services, resources, and revenues is the quality and effectiveness with which the managed services are delivered and integrated into the client’s business.
Glow Networks was formed on this premise and has been providing Managed Services since 2000. Initially Glow began providing network and site engineering services for Nortel Networks optical product family. Since that early start Glow’s track record reflects three approaches based on client preference and circumstance: a) immediate implementation of a MSP relationship; b) begin with contract staff augmentation with the agreed upon intent of moving to MSP as pre-determined milestones are met; c) begin with a contract staff augmentation service that naturally evolves to a MSP offering as the relationship and business circumstances dictate.
Advantages to Engaging Glow as a Managed Service Partner
Most clients prefer the fixed price model as it eliminates any financial uncertainty. With a proper infrastructure in place fixed price model offers a win-win solution for both the client and Glow. Some of the major benefits clients realize by engaging Glow in a Managed Service model include:
- A true variable delivery model
- Balance sheet implications for revenue per employee
- Lower cost structure
- Reduced overhead
- Headcount Charge
- Management of internal and external resources to deliver service
- Less capital: Laptops/IT Infrastructure/tools are part of MSP delivery
- Reduced Training Costs – GLOW responsible for hiring and training new resources
- A higher level of quality since there is an incentive for Glow to continuously drive work-product and process improvements
- Any rework is Glow’s responsibility
- Cash flow savings - only pay on completion of service and then apply payment terms
- Clients have reported they have achieved a minimum savings of 20% due to factors that include but are not limited to: a) improved payroll/cash management due to payment for labor not made until service completion/accepted; and, b) elimination of underutilization costs
Factors that have contributed to the success of Glow’s MSP focus
- Glow’s willingness to invest in resource training
- Glow’s willingness to invest in capital expenditure for Software/Test Tools
- Proactive project management to ensure successful integration into our client’s operations with no disruption of the existing business relationships with their customers
- Glow’s commitment to TL9000 Quality Certification. Glow systematically extends the TL process to encompass all engagements with an emphasis on quality metrics, comprehensively documented work instructions, and a rigid root cause analysis and continuous improvement process..
- Active participation in our client’s quality programs
- Glow is a certified Minority Business Enterprise (MBE)…..our clients benefit by the allocation of minority credits
- Glow Networks has demonstrated the ability to quickly and effectively “ramp-up” to meet client requirements on multiple occasions.
- A Different View of the Network
- Calculating Value - What is Total Cost of Ownership
- Due Diligence - Ignorance is Not Bliss
- Mining for Gold - Uncovering unknown carrier costs
- Network Engineering - Whose Core Competency
Examples of Glow’s Managed Service Partner (MSP) Relationships
Glow Networks has been providing Managed Services to its customers since 2000. The following are examples of Managed Services provided on a fixed fee basis:
RF Drive Testing/Post Processing Services (Nortel, ALU, TTS): Extensive RF drive test data collection and/or post processing services to support the deployment and optimization of wireless networks across all major technologies: CDMA/EVDO, GSM/UMTS and WiMAX.
UMTS Node B / Re-home Services (ALU): Glow worked with Alcatel-Lucent project management to establish a team of engineers and a project manager to quickly assume responsibility for UMTS Node B Re-home and Growth Services. Within a short time ALU was comfortable with the technical abilities of the team. The team’s responsibility was then expanded to having responsibility for direct interface with other ALU groups as well as with their end-customer.
Field/Site Engineering Services (Nortel/ALU): site visit, development of site drawings (CAD), generation of Installation Related Material Lists – technologies include Wireless (Base Station), Optical and Wireline.
Network/Equipment Application Engineering (Nortel): Network and Detailed Equipment Application Engineering for Nortel’s complete line of Optical, Wireless and Wireline products including responsibility for Order Engineering Specifications, equipment layout, Material Equipment Lists, and drafting.
Configuration Engineering (Database/Script Development) (Nortel/ALU/Nokia): Glow has provided Configuration File Engineering for Nortel on a fixed fee basis including, Hardware Provisioning (EFiles), EVDO Scripts, and GSM Configuration Engineering. Glow also provides UMTS scripting services for ALU. Glow has also provided Line and Feature Migration services on a fixed fee basis.
