Battle of the Budget - An Opportunity to Reduce Operating Costs With Managed IT Services

Per Matt Dickerson, Managing Director and Seniorthe internet, the reality is that many businesses and
Network Consultant of AXXIS Technology, and citedconsumers use the internet as the first step in
as one of the Top 15 Worldwide SMB consultants,getting info on your business. Your I.T. services
"The typical small business or firm spends 30% ofprovider should have the tools available to work with
the I.T. budget on hardware purchases and 70% onyou on developing and managing a website that can
I.T. maintenance." What are those numbers for yourserve as "the front porch to your business". While
business? What do you use to measure thosehaving a great website will not necessarily be used to
expenses?rule you in as the business to call, having a
The purpose of this article is to give you a potentialsubstandard or non-existent website can be used to
option the next time you, or the boss asks, "Whatcross you off the list.
can we do to improve the business, while reducingDiscount Product Purchasing
the cost of doing business?" Grab your favoriteI.T. equipment is often an expensive investment.
beverage and let's take a quick look at I.T. ManagedRegardless of the amount you purchase, you should
Services.never pay more than absolutely necessary. Your I.T.
What is Managed IT Services?services provider should have agreements in place to
A mix of products, services and other I.T. partnerensure you get the best, most competitively priced
offerings used to deliver a full range of on-site andcomplete systems, peripherals, parts, or upgrades.
remote I.T. services to primarily the small to mediumWhat are the benefits?
sized business. The service provider serves as theYou now know what the typical managed services
complete virtual I.T. department for the business.company provides or should be offering, but what do
This can include, but not limited to, initial I.T. planningyou really get out of this partnership? After all,
and implementation, to ongoing technical support andchange is difficult and everyone is comfortable with
administration, to budgeting to ensure that thethe way we've always done things, regardless of the
information technology backbone stays in step withcosts, the impact on the business, or how we might
the businesses current and future needs.be getting short changed on services.
What are the services?Focus on Business
All providers have differing services and solutions thatYou and your people are experts and great at what
they provide and, this is important, how they provideyou do. I've spoken with business leaders who give
them. Below are examples of the basic services. Ifexamples of staff members trying to fit I.T. guru into
you are researching a I.T. Managed Services partnertheir responsibilities. I've heard, "One of our staff
and they do not provide these, continue your search!lawyers, Joe, does our I.T.", "Pat, in Accounting, does
7/24/365 Network Monitoring, Maintenance, &the I.T. stuff that she knows.", "My HR Director,
SupportTom, studied programming in college and does our
This is at the core of what each and every I.T.I.T." I never doubt that these people give their best
services company provides the business. Yourefforts, but question if that's the best use of these
information and the needs and expectations of yourvaluable resources and I am skeptical if everything is
customers are too important to call somebody andgetting done.
wait 24 to 72 hours or more for an I.T. issue to beSingle Source for I.T.
resolved. How do you effectively plan and budget forYou have one point of contact for all of your
these out of the blue situations anyway? Your ITInformation Technology needs. Rather than a laundry
services provider should be constantly monitoringlist of contacts and phone numbers, you have one
your systems, providing maintenance, such assource for your I.T. Note: Check on this! Most
spyware and virus protection, disk drive analysis,premier IT services providers will have a single point
application usage, and security patch management. Aof contact who will know you, your business, your
big one for most businesses: have off-site andgoals, and your I.T. infrastructure. If you don't know
on-site support available around the clock. Nowho has your account, you are always speaking with
guessing game or "around this much" - there shoulda different person on the phone, a different
be a fixed fee for the services.technician comes out to your business to do service,
I.T. Systems Planning and Analysiswell, it is time for you to ask probing questions or
Many business owners make I.T.-related decisions assearch for a new provider.
a reaction to their immediate needs rather than partBudgeting
of a long-term growth plan. Your provider shouldThe guesswork is gone. As you formulate your
assess your current and future I.T. needs and makebudgets, you will know exactly what your I.T.
recommendations to help your business grow. Theexpenditures will be for any period of time. You work
idea is for every component of your business to bewith your I.T. services provider to formulate and
geared in some way towards growing your business.define your plan, needs, and expectations. The dollar
This should include I.T., right?figure is assigned and you work on producing results
Disaster Protection/Offsite Data Backupin your industry.
There are plenty of recent examples to confirm forBreadth of Knowledge: We all know the growth rate
us that you have to plan for the unexpected. Yourin the I.T. industry has been phenomenal and new
customers depend on you to serve them withouttechnologies and gadgets are constantly being added
interruption. Your I.T. services provider should provideto the inventory. While most businesses have team
secure offsite data backup solutions that provide amembers who specialize in a particular facet of the
backup of your data automatically. You have acompany, I.T. Managed Services companies also have
business to run. Your I.T. services provider shouldstaffs that have expertise throughout the I.T.
partner with you to develop and implement a disasterspectrum.
recovery plan that you or your staff won't have theIt is near impossible, and not very cost effective, for
hassle of managing.SMBs to employ an in house I.T. staff with the same
I.T. Vendor Managementcumulative breadth of I.T. knowledge. This leaves the
Should you or your staff spend endless hours on thequestions for the business with the in house I.T.:
phone with I.T. vendors, or rather, dedicate time andWhat are we incapable of doing? What is getting
effort to growing the business? Your IT servicesmissed? For businesses without I.T., it makes sense
provider should be there to help you manage yourto avail themselves in having an entire I.T.
relationships with your ISP, hardware vendor, webdepartment at their disposal without the costs or
developer, ASP, etc...impracticality of an in house I.T. department.
Network ServicesAnybody there?
I have yet to meet or work with a business, large orGetting back to the level of support topic, having an
small, that doesn't go through some kind of periodicI.T. services provider ensures that you maintain a
"environment changes". This can range from staffpredictable, consistent level of support, regardless of
changing desks, switching offices, or moving thevacations, sick time, resignations, terminations, etc.,
entire business to a new location. Make sure your I.T.associated with in house I.T. Apart from this, most
services provider takes care of the I.T. aspects ofI.T. services providers have a form of supplemental
these changes. If you are moving or setting up asupport where they will work with you during times
new network, task your I.T. services provider withwhen in house I.T. is absent or there is an increased
designing, installing and certifying your data network.workload.
Make sure they are capable of taking care of theIf 30 minutes would help my bottom line...: Every
telecom, cabling, and I.T. equipment installation.successful business leader, whom I've worked or
Regulations and Compliancespoken with, is looking for ways to improve and
At the beginning of this century, we in the healthcarekeep their business ahead of the competition. Some
industry went through a "regulations crisis". Thebusinesses have an in house I.T. department or retain
Health Insurance Portability and Accountability Acttheir current support and services provider, because,
(HIPAA) came down and the mad scramble andwell, that's the way things have always been done.
focus was on how to secure the system-housedSome businesses prefer the "Las Vegas approach" of
information and ensure we were all in compliance. Asno I.T. support at all. They cross their fingers, roll the
HIPAA is to healthcare, other businesses have rulesdice daily, and hand over the money as they go
and regulations on how to use and securealong.
information. Your I.T. services provider must have theI encourage you to do some due diligence, even if it
knowledge, experience, and resources to aid you intakes 30 minutes. Research, discuss internally, and
remaining compliant with these directives.engage an I.T. Managed Services professional to see
Website design and hostingif I.T. Managed Services would possibly benefit you,
Whatever your position on the degree of benefit toyour staff, and your valued customers.