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| September
2006 |
Strategic Technology Horizons
Ideas and
Information for Your Business |
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Welcome!
Labor Day has passed and, as kids head off to school, our
focus turns from summer work schedules and vacations back to
business. While for many, the summer no longer provides the respite
of a slower business pace, long weekends and vacations hopefully
provide the rest and rejuvenation we all need to thrive.
For me, summer downtime provides time to let the mind wander. A
relaxed step back, looking and thinking outside the box, often sheds
light on old problems and highlights new opportunities.
For this issue of Strategic Technology Horizons, we step
out of the box and offer a different type feature article -- a
collection of IT facts and thoughts that will, hopefully, offer some
inspiration (or at least some good food for thought).
Best Regards, Allen
P.S. Don't miss Chris Caldwell's ideas for saving money via
better vendor management. | |
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Technology Thoughts for
Tomorrow | |
| by Allen
Falcon |
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Trends in the News
Recent issues of Computer Reseller News, a publication for
computer and network sales and service companies, have reported several
interesting trends:
- While the average cost of a network server has declined by almost
13% over the past year, reseller- based purchases remain flat
- Spending through resellers on networking gear has surpassed
reseller-based purchasing of desktops, laptops, and peripherals,
combined
Horizon’s Analysis: Server prices reflect a
continuing improvement in the performance/value curve. As more end user
companies become comfortable configuring and purchasing servers directly
from manufacturers, resellers will continue to see pressure on resale
prices and reseller margins.
At the same time, most companies do not have the necessary expertise to
plan, purchase, and implement network infrastructures without assistance.
With Voice Over IP (VoIP), Power over Ethernet (POE), and increasing
security demands, we expect this trend to continue.
Emerging Architectures: SANs and Virtual Servers
With multiple, competing technologies and many new vendors, the cost of
network-based storage has dropped dramatically, making Storage Area
Networks (SANs) an affordable alternative for many small and mid-size
businesses. If you have a multiple server environment, network-based
storage lets you run a single, high-availability storage server. Disk
space is then allocated to specific servers and/or applications.
Network-based storage lowers your storage cost on a per GB basis and lets
you adjust your storage allocations without having to rebuild and/or
migrate systems. Network-bases storage also supports “backup to disk”
capabilities that can increase the performance and flexibility of your
backup/recovery solution.
Key to the lower cost of SANs is the emergence of iSCSI technology.
Using iSCSI, servers can connect to a SAN device via Gigabit Ethernet.
Given that most new servers ship with dual Gigabit Ethernet ports, there
is no incremental cost per server. Most vendors recommend a dedicated
Gigabit Ethernet switch for the SAN, a relatively modest cost. Entry level
systems can provide up to 6 TB (6,000 GB) of space and support up to ten
servers.
Microsoft and its primary competitor, VMWare, are practically giving
away server virtualization technology. By allowing you to run multiple
“virtual” servers on a single physical machine, server virtualization
reduces overall hardware costs and makes it easier to load balance
applications. While companies with larger data centers are still working
out the “kinks”, the technology holds promise for companies with smaller
computer rooms. If you run any test/development servers, server
virtualization can reduce your hardware requirements.
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Save Some Money | |
| Chris
Caldwell |
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Vendor Management
Pays Off
If you
purchase hardware and software through, or with the assistance, of a
network service company, how they facilitate the purchase may be costing
you money. Most vendors are moving to a business model that offers
discounts off published pricing based on total dollar volumes, a tactic
designed to build loyalty in the battle for market share. If your service
provider orders from vendors using your customer number or does not
consolidate most purchases through a single account, you are likely
missing out on discounts. Make sure your service provider is aggregating
volume on your behalf.
Want to save more when buying hardware or software? Let your preferred
vendor know which competitors are under consideration and ask for
competitive incentives. Many vendors, including Cisco and Dell, will offer
additional price breaks in order to keep out the competition.
A final cost saving tip: If you plan on spend more than $15,000 to
$20,000 on hardware and software over the next year, share you intent with
your preferred vendor. You might qualify for “preferred” account status.
In addition to increased discounts based on your volume, you should
receive better pre- sales support and access to technical specialists.
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Contact Information
phone: 508-329-2058
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