But I LIKE my IT guy!

The Dilemma…“I don’t understand computers, and I don’t know what I.T. even stands for anymore, but without it I can’t get anything done. Please just make my network work.” Historically variations of this statement have been a recipe for disaster for many small business owners. What they are really saying is “I’m good at my core business, and technology is a core part of my day-to-day business operations. Do I really need to become an expert to simply utilize what it has to offer?” Hardware, software, networking, and phone companies alike have jumped at the opportunity to implement their latest solution-of-the-day. Each has their own best interest in mind, with little or no concern to how well the solution even fits that particular business. For years, small businesses have been missing the role that larger companies obtain from the CIO. A top down approach to assure that appropriate technology is implemented across the environment.

Can you really outsource your entire IT operation to a single service provider? I have been heavily involved in developing Kaltec’s Managed Data Division to answer this with a resounding “YES”. Unlike most providers who started out in the break/fix IT support realm, we entered the IT arena as an Independent Software Vendor (ISV). We have been developing custom business applications based on Microsoft technology since 1993, and found the implementation phase to be very challenging. Developers (myself included) found that working with IT departments to create an infrastructure robust enough to support the demands of the custom application could be very difficult and bureaucratic. In addition, any issue that arose in any area of the network was – by default – blamed on the newly implemented software for months after the software was rolled out. To survive custom implementations, our team members had to become very good at taking a holistic approach to network infrastructure. This included honing a skill-set of high level configuration of Microsoft Server aspects such as Exchange, SQL Server, Active Directory & Group Policy. It became obvious that the only way to protect ourselves was to be better than our customers at managing their business network.

Our mission to offer a complete, competent IT solution has been a huge undertaking, and there are many aspects to be considered. A key component was to establish a fully managed suite of IT products and services, including a combination of proprietary, branded, and resold technologies. Kaltec works with their customers to build a custom tailored IT package, which is delivered for a predictable monthly fee. This fixed fee concept includes customer support, monitoring, security and patch management. It also has solutions for hardware, procurement, and licensing.

I am often asked, is Managed Services just another word for Outsourcing? After the technology bust, and all the hype surrounding the dangers of outsourcing, naturally the industry had to come up with another term to put everyone at ease. However the key to managed services really lies in the approach. As a general statement, experience, standards, and proactive monitoring are key to delivering a higher level service than businesses can obtain internally.

IT has long been a significant cost to businesses of all sizes. More and more, companies are realizing that; while necessary, IT really plays no role in how profitable your company is. While once a differentiating factor, today the benefits of automation are largely assumed as day to day necessity. To make matters worse, skilled IT employees are notoriously difficult to qualify, train, and retain. (Not to mention expensive!) Compounding this, the intellectual knowledge that IT staff obtains is invaluable – especially when supporting legacy systems is simply a fact-of-life for most businesses. Turning these issues over to a reputable service provider makes a lot of sense when looking at the problem from the top.

One of the most challenging aspects of the Managed IT approach is to avoid commoditizing the service as a whole. To brown-box the service too much means wrapping unique customers into a 1 size fits all container – ignoring the flexibility that is built into today’s systems. I firmly believe that one of the most intriguing aspects of IT is the ability to use common toolkits (known as software) to build custom solutions that make our everyday work experience more productive. Customers love the idea of a fixed fee approach (duh), but we work with them to create a plan that still accommodates enough flexibility to allow us to really improve their IT environment when we see the opportunity. With commodity comes predictability and stability, but the benefits – as well as the value – are typically reduced equally. Walking the line between commodity and cutting-edge is an important aspect, and should not be overlooked whatever role you play in the IT. arena.

Is IT outsourcing via managed services for everyone? The question a business owner needs to ask themselves is “Am I an IT company?” If the answer is no, the money that is spent staffing and supporting your IT department is not an asset. Even if your IT staff is putting in 60 hrs/wk supporting (i.e. breaking and then fixing) your network, they will never become as skilled as someone who is exposed to hundreds of networks in as many industries. In my experience; documentation, procedure, security and data protection derived from tested standards of practice – rather than the latest newbies “great idea” – provide the greatest longevity in a business environment. We are in the state of a paradigm shift on technology, and the days of the IT cowboy are numbered. Looking forward, as industry moves on creating a whole new level of expectations in the technology industry, we as IT providers need to reassess our methods and lead the charge.

Jason Kallevig
Kaltec of Minnesota, Inc.
www.kaltecdatasys.com

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