What Is Network Management?

Network management is the set of practices involved in the monitoring, administration, control, automation, and maintenance of computer networks. It’s essential for a range of IT functions—from asset management and incident response to compliance and security.

As networks grow in size and complexity, effective network management becomes increasingly critical. Cloud computing, remote work, and a variety of network monitoring protocols can all complicate network strategies, especially for MSPs managing assets across multiple clients or large-scale IT teams overseeing diverse environments.

In this article, we’ll break down how network management works, the tools and strategies involved, and how to simplify the process using the right technology.

How does network management work?

Key domains of network management

At a high level, network management can be separated into two domains: 

• Processes that define how network devices are configured, monitored, and maintained throughout the IT asset lifecycle. 
• Tools like network management systems (NMSes) that enable effective network management in practice.

Network management protocols and data collection

How network management works can vary meaningfully depending on network topology, devices, and requirements. But at a high level, network management works by using network management protocosl like simple Network Management Protocol (SNMP), SSH, ICMP, WMI, NetFlow, and sFlow to collect data from network devices.

While the protocols provide the “language,” NMS tools act as the interpreter, pulling network device data into actionable insights. This technical foundation enables:

• Device discovery and inventory
• Data collection for monitoring
• Automated alerts and logging
• Configuration access and updates

Types of network management 

One of the best ways to conceptualize network management is to break it down into types or functions that, put together, ensure a comprehensive network management strategy. The FCAPS (fault, configuration, accounting, performance, security) model from ISO/IEC 10040 is particularly useful here. Here is a breakdown of each FCAPS category.

Fault management

• Meaning: Fault management focuses on detecting, logging, and remediating issues and errors that can occur on a network device or within a network. 
• Examples: Everything from a UPS overload to a link failure on a network switch. 
• Impact: Effective fault management helps teams respond to faults before end users complain. It aims to reduce MTTR, prevent end-user disruptions, and identify trends indicative of broader problems.  

Configuration management

• Meaning: Configuration management ensures network configurations are properly maintained, updated, and controlled, while enabling restoration when needed.
• Examples: Tracking and managing “golden configs,” updating routing tables, or restoring device settings after a failure.
• Impact: Effective network configuration management reduces the risk of configuration drift, improves operational stability, and makes recovery faster during incidents.

Accounting management

While less common in enterprise IT, accounting management remains important for telecoms and service providers.

• Meaning: Accounting management captures statistics and utilization metrics to support cost allocation and billing. 
• Examples: A service provider billing based on bandwidth consumption, or an IT department allocating network costs internally by department.
• Impact: Effective network accounting management enables cost transparency and resource accountability.

Performance management

• Meaning: Performance management monitors and validates that the network is meeting service-level requirements related to speed, reliability, and throughput.
• Examples: Using SNMP, WMI, or flow protocols to measure latency, packet loss, or bandwidth usage.
• Impact: Effective network performance management helps ensure acceptable end-user experience and compliance with service level agreements (SLAs).

Security management

• Meaning: Maintains the confidentiality, integrity, and availability of data, assets, and systems in the network.
• Examples: Authentication and authorization policies, auditing activity, enforcing access controls, and responding to security alerts.
• Impact: Effective network security management strengthens defenses against threats, supports compliance, and reduces organizational risk.

As any IT pro can tell you, there is a lot that goes into each one of the subdomains of network management we just listed. For example, you can take a deep dive into a single network management protocol like SNMP or break down the intricacies of network documentation best practices. There is a great depth to the broader domain of network management. 

From model to practice: Key functions of network management

While the FCAPS model provides a useful theoretical framework, IT teams often think about network management in terms of day-to-day responsibilities and outcomes. With that in mind, let’s take a step back and look at nine key core functions of network management. 

1. Network provisioning: Onboarding and configuring new devices
2. Network monitoring: Tracking device health and performance metrics
3. Network alerts: Notifying IT teams of potential problems in real time
4. Network troubleshooting: Identifying and resolving issues like outages to reduce MTTR
5. Network configuration management: Maintaining routing tables, port settings, and golden configs
6. Network operations: Executing commands or updates across devices, including remotely
7. Network maintenance: Patching, updating, and managing hardware and software lifecycles
8. Network security: Enforcing controls and maintaining compliance with organizational policies
9. Network performance management: Ensuring networks meet reliability, speed, and SLA requirements
10. Network documentation and reporting: Maintaining accurate records of devices, configurations, and changes through maps, version histories, and compliance reports

Together, these functions give IT teams the clarity and control needed to keep networks reliable, secure, and ready to scale.

Why is network management important? 

Network management is essential for ensuring reliable, secure, and cost-effective network performance. An effective network management strategy ensures that network resources are:

• Tracked in a central source of truth with key asset details such as software/firmware version, warranty information, and unique identifiers (e.g., serial number, MAC address, etc.)
• Maintained by storing configurations, facilitating backup/restore, and supporting patches and upgrades
• Monitored to ensure resource utilization (e.g., CPU, storage, memory, bandwidth, etc.) and performance (e.g., I/O, throughput, etc.) are in desirable ranges and alerts are sent if there are anomalies, faults, or errors that require attention

For IT teams, network management is a productivity booster. It can support remote control, allowing issues to be resolved without hands-on intervention. It can also reduce time lost to “swivel chair,” from admins bouncing between multiple dashboards.

From a business perspective, this means network management leads to less wasted time, better asset lifecycle management, lower security risk, and faster MTTR, all of which drives cost savings and a healthier bottom line. 

How do companies usually handle network management?

Most organizations use a combination of in-house IT teams, MSPs, and dedicated NMS tools. 

• Smaller businesses often opt for a cloud-based platform or outsource to an MSP. 
• Larger enterprises typically use hybrid approaches, combining on-prem tools, cloud services, and automation.

Day-to-day management usually includes centralized dashboards, automated alerts, and well-documented workflows aimed at minimizing manual effort and reducing errors.

How is network management deployed?

A network management system’s deployment model directly impacts scalability, control, and security considerations. There are two basic categories of NMS deployment types: on-prem and cloud-based. To understand the differences, let’s break down on-premise vs. cloud deployment models. 

On-premises network management 

On-premises tools are deployed within an organization’s perimeter, typically on a physical or virtual server. For example, NMS software can be deployed as a virtual appliance (OVA/OVF), Windows installer (.exe/.msi), or container image, and then used to monitor devices on a private network without internet exposure.

Pros:

• Complete control over installation, configuration, and operations
• Data and monitoring remain fully inside the organization’s perimeter

Cons:

• The organization is responsible for patching, scaling, maintenance, and security
• Higher operational overhead compared to cloud-based models

Cloud-based network management

In a cloud-based network management model, the management console and business logic run in the provider’s cloud, while an on-premise or on-device agent collects data from individual network devices.

Pros:

• Reduced operational and maintenance overhead
• Easier to scale across multi-site or multi-client environments
• Flexible deployment and faster time to value

Cons:

Less direct control over the platform, with security and compliance dependant on the provider’s implementation

Challenges of network management 

No two networks are exactly the same. 

Real-world networks often include: 

• A hodgepodge of devices from different vendors
• Configuration variances resulting from mergers and acquisitions
• Complexities that emerge from band-aid fixes that become required over time

As a result, what sounds simple on the surface (e.g., “monitor all of the network devices at HQ”) can be meaningfully complex in practice. 

The table below breaks down six of the most common network management challenges administrators encounter, along with their solutions. 

Network management challenge	Description	Solution
Alert fatigue	Poorly tuned alerts can overwhelm IT staff while real problems slip through the cracks	Intelligent alerting with tuned thresholds to reduce noise
Tool sprawl	Using too many tools causes information silos and operational inefficiencies that slow down troubleshooting and can leave network issues undetected.	Consolidate into an integrated NMS platform
Limited visibility	IT can’t secure what they can’t see. Undetected devices and network segments create security risk and leave IT in a purely reactive mode when something goes wrong.	Use automated discovery and mapping to capture all devices
Security vs. visibility balancing act	Monitoring and discovering devices often involves the use of network protocols that could increase attack surface or may not use encryption (e.g., SNMP v1/v2c).	Adopt secure protocol versions (e.g., SNMPv3) and limit access rights
License cost	NMS tools can be expensive and as an organization scales, certain pricing models can lead to significant costs and billing surprises.	Choose predictable, transparent pricing models that fit growth
Multi-site and multi-client management	Networks consisting of multiple large subnetworks, business units, and physical locations can create network management complexity as teams work to keep data isolated while standardizing and scaling network management services.	Use centralized, multi-site management features with role-based access control (RBAC)

Benefits of using a network management system 

The right NMS can address many of the challenges of network management. For example, most NMSes have network discovery capabilities that can drastically improve network visibility. They can also help teams consolidate their tooling stack by monitoring and managing their network devices in one place. 

Other network management problems require a mix of tooling and process to solve, like when IT needs to ensure services that enable remote monitoring are limited to the right level of privileges (e.g., read-only SNMP for a monitored system rather than read-write). 

To understand how an NMS can help IT and MSP address real business problems, let’s take a look at our top benefits of using a network management system.

1. Network observability: See the bigger picture

Network observability is a key enabler of network performance, security, and incident response. The better you can understand the health of your network, the better you can address problems and optimize where it matters. A network management system is a key enabler of network observability, as it captures the data needed to achieve it.

2. Centralized monitoring: Stop the swivel

Context switching is a huge (and understated) problem in IT. Constantly switching between apps, dashboards, and notifications takes cognitive energy, slows down task completion, and can lead to things not getting done. 

When IT has to swivel chair between multiple different dashboards to understand network health or identify a bottleneck, the context-switching problem becomes a network operations problem. 

Network management systems stop the swivel by centralizing network asset information, monitoring data, network maps, documentation, and alerts all in one place. Instead of jumping from one device interface to a vendor-specific dashboard and then into a logging tool, IT can dig into their NMS to get the answers they need. 

3. Faster troubleshooting: Reduce MTTR

When it comes to network incident response, speed matters. A good NMS will enable administrators to view the network as a system at a high level and drill down to individual devices and connections as needed. As a result, they can get the information they need in one place and may even be able to execute a remote control to solve the problem. 

4. Asset lifecycle management: Stay ahead of refreshes

An NMS centralizes data on network assets and allows IT to quickly discover when something new is connected, document changes, look up key warranty information, and plan hardware refreshes. Additionally, an administrator can use their NMS to look up software and firmware versions from one place to determine if they’re behind on patches that could create security risk. 

5. Automated workflows: Eliminate the toil

Eliminating repetitive tasks is one of the best ways to improve a technical team’s productivity.  NMS network automation capabilities can automate away much of IT’s network admin toil. For example, an NMS can automate the process of rolling out changes to network devices, documenting the network, and backing up network configurations. 

For MSPs, a network management system can even help automate the process of value discovery. An NMS that automatically discovers new devices and networks can help increase assets under management and, as a result, MSP revenue. 

Simplify your network management with Auvik 

Network management is complex. Auvik is purpose-built to simplify it. The cloud-based Auvik Network Management (ANM) platform has made its name among IT and MSP pros by solving the challenges of network management while making things easier on administrators, even in complex multi-site and multi-client environments. 

Just how does Auvik make life easier for network admins?

• Quick deployment in minutes
• Intuitive multi-site and multi-client controls
• Intelligent alerts to reduce noise and MTTR
• Support for over 15,000 devices from 700+ vendors
• Automated documentation, mapping, and configuration backups

Auvik’s transparent and predictable pricing helps avoid surprises for you and your finance team. If you’d like to see what ANM can do for you, sign up for a free (no credit card required) trial today.