About this interactive
Picture a headquarters with tens of thousands of staff and a satellite campus with thousands more, joined by a WAN link. For each service you choose where it runs and who manages it.
Centralized means one location. Web filtering at headquarters, with the satellite's traffic tunneled there first, is easy to manage, but it uses WAN bandwidth. Phones and security are usually centralized, because the company wants one consistent way of doing them. The cost is flexibility: one structure fits every site, whether or not it suits it.
Decentralized means spread across sites: a filter at each one, network services at each campus, a help desk on site. It adapts to each site, including a site in another country with its own laws, but there is twice as much to manage.
It is not all or nothing. Networking has to be at both sites, but one team can still manage it centrally. To sort a card, ask whether the thing described sits in one place or in each.
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