Logo-png
March 2007 Strategic Technology Horizons
Ideas and Information for Your Business
Welcome!

A few readers responded to my article “Rethinking the Middleman” in the last issue of Strategic Technology Horizons with a challenge. Could I name one “middleman” other than a computer reseller that definitely saves money for its customers?

Definitely! Optima Worldwide, a recent addition to our client list, saves its customers money on every package shipped (see below for more information).

Our feature this month, Are Managed Services Right for You?, outlines the differences between Managed Service Providers and traditional service and support vendors. As Managed Services become more popular, care should be taken in selecting the right type of service provider.

With advancements, such as Managed Services, in network and systems administration, we see small and mid-size businesses focusing on their business applications. We ask for your opinion and feedback on the issue.

Best Regards,
Allen

Are Managed Services Right for You?
by Allen Falcon   Managed Services

While managed service providers have been around since the early 1990’s, this form of outsourced network administration and support services has only gained popularity within the past year or so. For many companies, a managed services provider offers a more cost-effective solution for outsourcing network administration and user support and/or augmenting internal staff.

For those not familiar with the term with respect to information technology and services, “Managed Services” is a method for providing active network and systems administration, user support, and other services, usually over the Internet. As opposed to vendors that offered scheduled on-site services or respond to project requests and problems, Managed Service Providers (MSPs) generally monitor customers’ networks, servers, and workstations over the Internet and actively manage the environments to prevent problems. When problems do arise, MSPs attempt to resolve the problem remotely; they dispatch staff on-site only when needed.

Managed Services are more effective now, as remote diagnostic and control capabilities are built-in to most computers and operating systems. As such, most MSPs do not need to run intrusive ‘agents’ on every computer.

Managed Services differ from traditional service and support vendors. While MSPs offer advantages, the solution is not necessarily better for all companies.

Traditional Service and Support Vendors ...

  • Charge hourly rates for project and when responding to problems
  • Vary hourly rates based on the level of skilled services delivered
  • Discount hourly rates if customers purchase blocks of hours in advance or pay a retainer
  • Surcharge for emergency and after-hour responses
  • Schedule site visits for preventative maintenance and periodic administrative tasks
  • Customize agreements and solutions to each customer’s needs
  • Support customers with diverse, unique, and non- current environments

Managed Service Providers ...

  • Charge a fixed monthly or annual fee based on the number of servers, workstations, and services under management
  • Offer set service packages and pricing reflecting multiple levels of service, which may include options for limited or unlimited on-site support time
  • Attempt to resolve all issues remotely before dispatching personnel on-site
  • Complete preventative maintenance and periodic administrative tasks remotely
  • Offer set hours during which they monitor customer networks and are immediately available to respond to emergencies
  • Surcharge for after-hour emergencies
  • Complete projects under additionally hourly or fixed-price statements of work
  • Prefer customers with standardized, current environments

In addition to monitoring, remote support, and active administration, MSPs offer a set, predictable fee on a month-to-month basis. This structure and technology, however, often limit options for customers with unique needs. Traditional service and support providers are often better able to adjust service options to individual customer needs, but may lack the tools and methods for active monitoring and administration.

Which solution is best depends on your company’s computer networks and systems configuration; hours of operation; support expectations and needs; and budget. Selecting the right vendor type should follow an examination of your infrastructure, business operations, and budget.

Your Points of Pain
 
Recent trade articles bemoan the lack of qualified resources available to small and mid-size businesses, with most of the hand-ringing focusing on network and systems administration. While we agree that much of the network and systems talent on the market is mediocre at best, quality individuals and service providers are not difficult to find.

In our experience, most of the current technology angst is application driven. We see small and mid- size companies struggling to roll out, use, and support specific business applications. Whether a financial, CRM, web site, or transaction processing system, we see companies struggling to find and manage the technical resources needed for success.

What is your greatest technology frustration or challenge? Email me and let me know.

Things We Like
  Optima Worlwide Shipping Optima Worldwide
By combining a few packages a day from hundreds of businesses, Optima Worldwide shares significant discounts on shipping fees with its customers.

With a web-based system to ship and track packages, Optima can discount shipping fees well beyond the discounts normally offered from the carriers themselves. In addition, Optima delivers a broader range of services, including same-day and next-day regional courier services.

Share the Knowledge
  Email_@
Do you know a business owner or manager that might benefit from Strategic Technology Horizons? If so, please forward this issue.

Interested in past issues? Click here for the archives.

 

Contact Information

phone: 508-329-2058
Join our mailing list!


Forward to a Friend!

This email was sent to afalcon@horizoninformation.com, by afalcon@horizoninformation.com
Powered by

Horizon Information Group, Inc. | 4 Bellows Rd | PO Box 1129 | Westborough | MA | 01581-6129