The choice between maintaining an in-house Network Operations Center (NOC) or outsourcing this function (NOC as a Service) is an important strategic decision for many companies. Both approaches have their own pros and cons, which must be carefully evaluated. This article explores the differences, advantages, and disadvantages of each option, and compares the costs involved.
In-House NOC
Pros
- Total Control: Having an in-house NOC offers complete control over operations, policies, and monitoring processes.
- Customization: It is possible to fully customize the NOC to meet the specific needs of the company.
- Immediate Response: The internal team can quickly respond to incidents and critical issues without relying on third parties.
- Security: There is a lower risk of sensitive data leaks since operations are kept within the company.
Cons
- High Costs: Maintaining an in-house NOC can be expensive. In Brazil, monthly costs can reach nearly USD 19,675, including salaries, hardware, software, and other operational costs.
- Personnel Requirements: The need to hire and train qualified personnel, which can be difficult and time-consuming.
- Continuous Maintenance: The NOC infrastructure requires ongoing maintenance and updates.
- Absenteeism Risks: Employee absences, vacations, and other issues can impact continuous operation.
Outsourced NOC (NOC as a Service)
Pros
- Reduced Costs: The costs of an outsourced NOC to monitor up to 20 technology assets range between USD 750 to USD 1,350), based on quotes from 10 providers.
- Access to Specialists: Outsourced companies have specialized and experienced teams in various technologies.
- Scalability: Easily scalable as the company’s needs grow, without the need for significant initial investments.
- 24/7 Availability: Outsourced providers ensure continuous monitoring, without interruptions due to absenteeism or vacations.
Cons
- Less Control: Outsourcing can result in less control over monitoring processes and policies.
- Dependency on Third Parties: The company becomes dependent on the quality and response of the outsourced provider.
- Security Risks: Possibility of security risks and sensitive data leaks when relying on third parties.
Cost Comparison
In-House NOC
- Monthly Cost: USD 19,675
- Annual Cost: USD 19,675 x 12 = USD 236,100
Outsourced NOC
- Monthly Cost: Between USD 750 and USD 1,350
- Annual Cost:
- Minimum: USD 750 x 12 = USD 9,000
- Maximum: USD 1,350 x 12 = USD 16,200
Is an In-House NOC Worth It?
The decision between an in-house NOC and an outsourced NOC depends on the specific needs and budget of the company.
- Cost: If cost is a crucial factor, an outsourced NOC may be the best choice, offering significant annual savings up to USD 236,100.
- Control and Security: Companies that require total control and data security may prefer an in-house NOC, despite the higher cost.
- Flexibility and Specialization: Companies that value flexibility and access to specialists may benefit from an outsourced NOC.
Both in-house and outsourced NOCs have their pros and cons. Carefully evaluating the company’s needs, available budget, and the importance of control and security is essential to making the right decision. In many cases, an outsourced NOC can offer a more economical and flexible solution, while an in-house NOC may be more suitable for companies that need complete control over their monitoring operations.
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