Are Managed IT Services Right For You? A Few Things to Consider
How do you get a small business to recognize the value of managed IT services? In the start-up environment, we encounter an eclectic bunch of personality types. There is a reason people become entrepreneurs or C-level execs. When we meet the owners or decision makers at smaller companies and organizations, we can tell right away why they're where they are. They're visionaries. They're risk takers. They're competitive. They want to be in charge.
Therefore, they aren't always quick to place the fate of their business technology in the hands of a third party. They've come as far as they have by being in control and they're hesitant to give up that control. But we've learned a few things along the way.
For example, the Type A personality is highly independent but also very competitive. So we tap into the competitive advantage that managed IT services gives them.
The Type B personality is creative and doesn't like static routines. But their ears perk up when they hear terminology like "cutting-edge" and we can then paint the big picture for them once their listening.
But anyone we do business with has to be committed to the efficiency, security, and stability of their business technology to see our value proposition. And they have to recognize that managing their IT infrastructure is an investment they cannot take lightly.
So here are a few things we commonly have to address before any deal for managed IT services is signed.
Is my business large enough to even consider managed services?
The truth is, any company, regardless of its size or the number of people they employ, will run more efficiently if its technology is monitored, maintained, and managed properly.
These are facets of your operations that drive profitability and give our Type A personalities that competitive edge they crave. And they can rest easy whenever business is booming because their technology is built to sustain their growth. That's the big picture that our Type B personality can appreciate.
How is making another IT investment a cost-savings move for my business?
There are still many SMBs who feel a greater focus and investment should go towards their core operations or marketing and sales. They only worry about technology when it breaks, figuring they'll just call a service technician to come to the office and fix whatever the problem is. Or buy some new hardware at Office Depot.
There are some very obvious flaws to this strategy.
You're paying way too much when it's way too late – An issue that was likely preventable with early detection has escalated into a full blown business disruption and that on-call technician likely charges a high hourly rate, on top of hardware replacement costs, and may not get to your site right away. Being proactive rather than reactive to technology issues is important.
Don't forget productivity killers – It's taking your employees too long to boot their computers. Servers and applications are running slowly. Employee devices are full of Malware. Non-technical employees are running around troubleshooting tech problems. If you see this, your present approach to IT management is killing employee productivity and your bottom line.
What happens internally is noticed externally – Don't think for a second that customers or clients don't notice outdated or slow internal technology and mismanagement. If your site or applications are down often, run slowly, or your customer service rep tells them "I'm sorry, our system is down", they're noticing and it's hurting your business.
When all is said and done, professionally managed IT services will give you a competitive edge, guarantee your business is always leveraging the newest most cutting-edge technology, and enhance your relationships with customers and clients – all while reducing costs.
Downtime is bad news for any business whether big or small.
A recent two-hour New York Times' downtime occurrence sent Twitter ablaze and their stock price plummeting.
Google going down for one to five hours resulted in lost revenue up to $500,000 and decreased overall web traffic by 40%.
We know what you're thinking. Holy crap, Google makes $100,000 an hour? Yeah... insane, huh?
While the hourly cost of downtime for a small-to-medium sized business won't be nearly as large as that astronomical Google figure, downtime is often more detrimental to smaller companies. Smaller enterprises are more susceptible to downtime and are neither large nor profitable enough to sustain its short and long-term effects.
Downtime Leads to Unhappy/Unproductive Employees
Even the happiest of employees become dissatisfied when they can't perform basic day-to-day job functions or properly service customers or clients.
While some employees may use downtime as an excuse to lean back, put their feet up, and comfortably collect their hourly pay, we're talking about those employees who come to work to actually work.
And don't forget your IT guy or tech crew. They can't necessarily sit back and twiddle their thumbs when downtime occurs because they're typically taking the brunt of the storm. They will ultimately grow tired of the daily routine of having to put out fires and having neither the additional manpower nor resources to change things for the better.
These things lead to high employee turnover and the expenses that come with training and re-training a revolving door of employees.
Downtime Leads to Customer Dissatisfaction
Customers and clients grow weary whenever critical components of your operations – or the services they either expect or pay for - cannot be accessed.
Nearly 50% of customers will move on to a competitor if they encounter downtime of five minutes or more. These customers represent significant lost revenue.
While some suggest this is a bigger problem in the retail sector, other types of businesses are impacted as well. Have you ever clicked a link from search engine results only to quickly bolt when the page didn't load, you couldn't complete an online transaction, or you were greeted with a "Technical Difficulties – Be Back Up Soon!" message?
Did you give up on finding what you were looking for or did you wait it out? You did neither. You went back to Google and found someone else offering a similar service or product that satisfied your yearning for instant gratification.
Downtime Ruins Your Reputation
One of the most commonly overlooked consequences of downtime is the hit your company's reputation takes online. In this age of social media, one person's bad experience is broadcast to dozens or even hundreds of followers. Bad news spreads faster than ever and has lasting repercussions.
"It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently." -- Warren Buffet.
Protect Your Bottom Line
The challenge for small businesses has always been how to minimize single-point-of-failure downtime using their limited IT resources. This is why downtime kills so many small businesses. They can't prevent it and they can't react quickly enough.
Thankfully, there are end-to-end business continuity solutions available today that integrate Remote Monitoring and Management (RMM) software, 24/7 access to a Network Operations Center (NOC), and advanced backup and disaster recovery solutions to alleviate this issue.
Not only do these methods minimize downtime and get businesses back up and running quickly, but they can reduce the cost of technology infrastructure maintenance by as much as 80 percent.
It's time that small businesses stop being victims to the silent killer that is downtime.
Is That a Business Continuity Plan in Your Pocket or a Bunch of Jargon?
Technology is full of difficult jargon. To further complicate things, certain terms are often used in a different context between one publication or service provider and the next. An example of this is the usage of backup, disaster recovery, and business continuity. These terms are commonly used interchangeably, often resulting in confusion. In an effort to alleviate some of this confusion, let's describe each physical process. You will see an overlay among all three, although they are each different processes.
Backup – In IT lingo, the most basic description of backup is the act of copying data, as in files or programs, from its original location to another. The purpose of this is to ensure that the original files or programs are retrievable in the event of any accidental deletion, hardware or software failure, or any other type of tampering, corruption and theft.
It's important to remember that the term "backup" refers to data only and doesn't apply to the physical machines, devices, or systems themselves. If there were a system failure, disk crash, or an onsite physical disaster, all systems would still have to be replaced, rebuilt, and properly configured before the backed-up data could be loaded onto them.
Disaster Recovery – Backups are a single, albeit crucial, component of any disaster recovery plan. Disaster recovery refers to the complete recovery of your physical systems, applications, and data in the event of a physical disaster like a fire; hurricane or tornado; flood ; earthquake ; act of terror or theft.
A disaster recovery plan uses pre-determined parameters to define an acceptable recovery period. From there, the most satisfactory recovery point is chosen to get your business up and running with minimal data loss and interruption.
Business Continuity – Although backup and disaster recovery processes make sure that a business can recover its systems and data within a reasonable time, there is still the chance of downtime from a few hours to many days. The point of a business continuity plan is to give businesses continuous access to their technology and data, no matter what. Zero or minimal downtime is the goal.
Critical business data can be backed up with configurable snapshots that are instantly virtualized. This allows files, folders and data to be turned on and restored in seconds. Bare metal restores of hardware, where an image of one machine is overlaid onto a different machine, is also utilized along with cloud replication for instant off-site virtualization.
Many businesses also keep redundant systems and storage at a different physical location than their main site as part of their business continuity process. They may also outline procedures for staff to work remotely off-site. Some businesses or organizations may go as far as to have printed contact lists and other critical data stored off-site to keep their business moving if a disaster wipes out power and their ability to access anything electronically.
This should clarify the differences between backup, disaster recovery, and business continuity solutions. Choosing what works best for your business will come down to your current IT infrastructure, your budget and how much downtime you can reasonably accept.
8 Cold Hard Truths for SMBs Not Worried About Disaster Recovery and Business Continuity
The foundation of any successful business continuity solution is the ability to retrieve data from any point in time from anywhere. When the topic of data recovery and business continuity comes up, you get the feeling that many decision makers at smaller businesses and organizations wish they could channel their inner six year old, simply cover their ears, and sing "La, la, la. I Can't Hear You. I'm Not Listening."
Everybody thinks bad things only happen to other people. Just because we hear about a fatal car accident on the morning news, doesn't mean we fixate on that news when we ourselves get into a car and drive to work.
So no matter how many times the owner or executive of a small to midsize business (SMB) hears of other small businesses being crippled by hurricanes, tornados, fires, or flooding, they aren't necessarily overcome with fear to the point that they feel an urgency to take action.
Sure, they may think about backup and data recovery solutions a little more that day, but not enough to initiate immediate change or reverse a lenient approach to their processes.
If you fall into this category, here are eight cold hard truths to consider
It isn't natural disasters or catastrophic losses like fires that take down small businesses but something far more sinister – malware. Cyber attacks through malware have grown exponentially in the past four years. Malware is hitting everything from PCs to Macs to mobile devices and it's inflicting damage.
Over half of the small businesses in the U.S. have experienced disruptions in day-to-day business operations. 81% of these incidents have led to downtime that has lasted anywhere from one to three days.
According to data compiled by the Hughes Marketing Group, 90% of companies employing less than 100 people spend fewer than eight hours a month on their business continuity plan.
80% of businesses that have experienced a major disaster are out of business within three years. Meanwhile, 40% of businesses impacted by critical IT failure cease operations within one year. 44% of businesses ravaged by a fire fail to ever reopen, and only 33% of those that do reopen survive any longer than three years.
Disaster recovery solution providers estimate that 60% to 70% of all business disruptions originate internally – most likely due to hardware or software failure or human error.
93% of businesses unable to access their data center for ten or more days filed for bankruptcy within twelve months of the incident.
In the United States alone, there are over 140,000 hard drive crashes each week.
34% of SMBs never test their backup and recovery solutions – of those who do, over 75% found holes and failures in their strategies.
It's critical that small businesses review their backup and disaster recovery processes and take business continuity seriously. Given the vulnerabilities associated with the cloud and workforce mobility, the risk of critical data loss today is quite serious and firms must be truly prepared for the unexpected.