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Small Businesses, Stop Outsourcing Your IT

17/9/2014

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Small Businesses, Stop Outsourcing Your IT
Image source: memegenerator.net
The debate on whether IT should be an internal function, outsourced or a hybrid combination of the two has been going on for a while. There are strong arguments in favour of and against each one of them. So logically speaking, it would depend on a variety of factors, like business requirements, company size, whom one asks, blah blah blah..... right?

WRONG!!

In fact, in the light of my arguments below, I might even boldly describe the entire debate as ‘Rubbish’. But before I launch into another one of my inescapable arguments, let’s have a quick look at some of the pros and cons of IT as an outsourced service and as an internal function. Since this blog is primarily dedicated to small business IT, we won’t even talk about the hybrid combination model. The very idea of hiring an IT staff and then outsourcing that function can only make sense (I guess) in a large organisation.
External (Outsourced) IT
Pros
  • Low cost
  • Access to wider range of expertise
  • Service Level Agreements (SLA)

Cons
  • Poor response times
  • Lack of knowledge about business needs and priorities
  • Poor customer service
Internal IT
Pros
  • Proactive approach with higher response times
  • Intrinsic knowledge of business needs and priorities
  • Higher team dynamic

Cons
  • High cost personnel maintenance 
  • Limited range of expertise
  • Reliability
Now let’s analyse these pros and cons for a small business that uses services such as;
  • Google Apps for Work or Office365 for emails
  • Salesforce or Insightly for CRM
  • Dropbox, Google Drive, OneDrive or a NAS drive for files
  • Cloud-based services for other applications and 
  • Has BYOD or COPE framework deployed

Pros of External (Outsourced) IT
  • With no expensive and eternally outdated hardware such as servers to maintain, the cost of outsourced IT function can become an unjustified expense
  • Small business IT requirements are generally uncomplicated. Cloud-based services come with plenty of technical support and can work independently of other services. This eliminates the need to retain specialised expertise.
  • SLAs for outsourced IT support are complicated and often come with lock-in contracts that can be very expensive to get out of. Cloud-based services do offer SLAs but usually don’t have long term contracts.

Cons of Internal IT
  • The simplicity and ease-of-use of cloud-based systems do not always require a dedicated technical staff maintaining them. Moderate technical acumen within operations staff will more than suffice.
  • With cloud services you have access to the expertise of wide range of IT specialists providing cutting edge technology at extremely affordable prices.
  • Although far less frequent, cloud systems do have outages but the good thing about those times is the knowledge that there is nothing your staff can do and that some of the best engineers would be working tirelessly to get it back up and running without any excuses and overtime pay.

As far as the IT needs of any business is concerned, internal IT function has always been the first choice. Cost is the only primary reason why it is outsourced. Emerging cloud and mobile technologies are, however, radically changing this. You now, not just get better for less but amazing for a fraction and still don’t need an IT whiz-kid to manage it all.

This article was written by Austin D'Mello, Managing Partner of Vocatys, an emerging technology consulting company. If you liked this article please share it with your network. You can also subscribe to the monthly Vocatys newsletter by emailing us at hello@vocatys.com.
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IT Vs Users? Here’s an Easy Solution

16/7/2014

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Solution to IT vs Users
Image source: Vocatys
May it be internal or external, the idea of IT operations within any organisation being a fully integrated business partner, has forever been wishful thinking at best. The IT department needs to control all systems for maximum efficiency and security. Whereas, the users need easy and immediate access to various systems to maximise their efficiency and therefore productivity.

Mathematically speaking, the IT department’s efficiency is inversely proportional to the users’ efficiency. Neither can be truly efficient without costing the other its own. But the biggest loser in this scenario is the organisation itself.

Now imagine if users didn’t have to get clearance from the IT department every time they needed access to new programs, remote access to files and emails. And at the same time, IT department didn’t need to worry about day to day upkeep of eternally outdated hardware, never ending security patches and software updates but instead focussing on the very needs of the business and its users that they are there to service.

Imagine if their efficiencies were directly proportional to the users’.

Here are two easy solutions that have started transforming that imagination into reality for many.

Cloud Computing
While the concept and its origins can be traced back to 1950s, it’s only since around 2006 when Amazon.com introduced Elastic Compute Cloud, has it come into popularity. Cloud computing has a wide range of benefits for virtually any organisation of any size, within any industry sector including government, education and not-for-profits.

One of the key benefits is the ability to use computing as a service or utility. This way businesses do not need to buy and maintain expensive hardware and software. They just pay a monthly or yearly fee to access as much or as little computing power and space required.

It creates a major shift in focus for the IT department. Now for the first time instead of worrying about system security and uptime, IT can focus on the actual needs of the users and actually play an intrinsic role in the growth of the business. User on the other hand will have access to updated technology and systems allowing them to do their jobs without having to worry about IT trying to control everything they do.

Mobile Technologies
The dramatic and continual rise of smartphones is a great indicator of the seismic shift in our day to day computing. In the vast majority of the cases we are carrying mobile phones in our pocket that are more capable than the computers we use at work. The software and hardware of these phones and tablets are designed and built with almost surgical focus on user-friendliness and rarely need any tech support. A vast array of enterprise apps, on the other hand, seamlessly convert them into business devices that can be easily used and managed by users themselves.

Its desirability and competitive pricing has resulted in such levels of popularity that according to various reports, by the end of 2015 there would be more internet connected smart devices than people on earth. This fact has also given rise to BYOD (Bring Your Own Device) model, allowing employees to use their own smartphones, tablets and/or computers for work.

Without the need to constantly maintain and troubleshoot ageing computers IT can once again focus on being a true business partner that can leverage emerging technologies to increase user productivity and engagement. Users too, will see increased efficiency due to free and flexible access to a host of services that work effortlessly without the constant need for support.

In conclusion, these emerging technologies are already making their presence felt. The opportunities and threats they present are extreme. Depending on the choices they make, businesses can overthrow their biggest competitors, breakaway from the peloton or succumb to the smallest player in the industry. Strategic use of technologies to eliminate operational inefficiencies will be critical to the success of any organisation.

This article was written by Austin D'Mello, Managing Partner of Vocatys, an emerging technology consulting company. If you liked this article please share it with your network. You can also subscribe to the monthly Vocatys newsletter by emailing us at hello@vocatys.com.

References:
  • http://en.wikipedia.org/wiki/Cloud_computing
  • http://www.itu.int/en/ITU-D/Statistics/Pages/facts/default.aspx
  • http://www.itu.int/en/ITU-D/Statistics/Documents/facts/ICTFactsFigures2014-e.pdf
  • http://teqy.co/facts-internet-things-infographic-exigent/
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Top 5 Don’ts of Cloud Computing

3/7/2014

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Cloud Computing Fail
When it comes to cloud, there are 2 kinds of businesses out there. Ones that have adopted cloud and ones that don’t yet know they have. A plethora of services from emails, media and file storage to various mobile apps are cloud based in some form.

From a business point of view these services bring great deal of advantages at shockingly affordable prices. These advantages, however, come with their own perils. We have complied a list of top 5 pitfalls of using cloud that should be actively avoided.

Don’t go cheap
With global price wars between industry giants and smaller players, going cheap should not be an option. In the end only the fittest will survive. Given the relatively low differentiation in product offerings it would certainly be wiser to choose a well-established service provider irrespective of the price. Ultimately you will get what you pay for.

Don’t lock yourself in a contract
Small and medium sized organisation should avoid contracts where ever possible as a general rule. Cloud services is a rapidly changing industry. Even a 2 year contract could become very restrictive and stop you harnessing the full advantages of ongoing innovations.

Don’t allow free access
One of the biggest advantages of cloud computing is its ease of use and accessibility. It opens up a range of possibilities like accessing emails on your smartphones and files on multiple devices anywhere, any time. While it may have been main reason to go cloud, without a well formed IT governance policy and security strategy, it will quickly and easily turn into a nightmare.

Don’t ignore ongoing monitoring
Another huge selling point of cloud services is that need for maintenance is little to none. While there may not be any need to maintenance, ongoing monitoring of services should not be overlooked. Every service has its own variables, thresholds and limitations. They need to be monitored regularly to ensure optimal usage, avoid cost blow-outs and in some cases service outages.

Don’t forgo local backups
Most cloud services run from multiple data-centres with multiple backups and fail-safe technologies which ensure that you will have your service up and running even if one of the data-centres were to go down. Some offer additional backup services as well. Which is all well and great until you suddenly lose your internet connection or in a worst case scenario the service provider’s entire operation is hacked and rendered inaccessible. Always work on the philosophy that there can never be too many backups. Having a local backup solution will keep you and your team going no matter what.

While innovative technologies bring a great deal of improvements in our live and businesses, they do come with their own pitfalls. What other pitfalls have you come across while adopting cloud technologies? Feel free to leave us a comment below.
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3 Reasons To Breakup With Your IT Support Company This Valentine’s Day

13/2/2014

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Break Up with IT Support
I know, I know! It’s that time of the year and I’m not sure what a Valentine’s Day villain is called but like a Grinch equivalent, here I am suggesting break ups. Just hear me out though because I’m not the first and am certainly not going to be the last. Apparently 47 per cent of the couples break it off on this day.

But this is not a ‘how to’ but more a ‘why to’. So let’s see;

1. They are high maintenance
“You get what you pay for.” When it comes to IT support there is no such thing as cheap. In fact, it’s one of those industries where perception is what determines the price. So in most cases, you will not only pay a monthly retainer on a two-year contract but also on top of that, a fairly steep hourly rate for all those special visits from your engineer.

These are times where technical innovations are growing exponentially. This remarkable growth has now put in our hands mobile devices that are far more powerful and can do far more than the super computers from only a few decades ago. But the most amazing thing about these mobile devices is that you don’t need to be a tech whiz to use them. When did you last call Apple, Google or Samsung to figure out how to use your smart phone or its apps?

2. They are boring
You’ll never hear your IT support excitedly announce or recommend a new app or program that will not only starkly improve your existing processes and is self-managed but it will also cost you significantly less if not nothing at all.

Almost everyday a new app, software or program is being developed to help you make your work and life easy. Be adventurous, go out there and have a look. You’ll be amazed at how much fun work can get.

3. You speak different languages
Have you ever tried asking your IT support why your computer or server is doing what it’s doing? Or how to set up something on your PC? What am I saying, who hasn’t? Let me guess, the response is usually a frustrated ‘sigh’ or a full-blown ‘groan’ followed by set of words I often wonder if even they themselves understand.

In this new world of awesome smartphones, tablets, watches, glasses and everything in between (Internet of things), things are made so easy, even toddlers just seem to know what to do. These things don’t even come with a manual. I say, it’s like magic, you just know!

So there it is. Like every great decision, it’s not going to be easy or comfortable but nothing great has ever come out of playing safe.

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    The Vocatys Team writing on Breaking News on Emerging Technology, How-To's, Why-To's, Company News and some seriously mundane ramblings!


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