Category Archives: Outsourcing

To Outsource or Not To Outsource Your IT

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Outsourcing IT can be a challenging proposition as IT has become increasingly more critical to operations… just think, in years past you could get work done with a pad of paper and a telephone. Today, what happens when you can’t get into your computer? Or you don’t have access to your email? For most organizations this causes a complete standstill.

When it comes to deciding whether to outsource or not, the best course is usually to outsource certain functions and not others. This is highly dependent upon the size and type of organization you are in, although managed service providers, or MSPs, are starting to perform many of these critical IT functions better than an internal team. One of the hardest challenges for smaller organizations is that when they get to 20 or 30 people a dedicated IT resource is often needed and the cost to hire that person isn’t in the budget (see the IT Hiring Guide here: https://www.sym.bio/hire-an-it-director). This is also a bit of a burnout job at this smaller scale because there is nobody to cover for them during vacation or sick days.

We’ve put together a guide to help you determine the right type of IT for you. The guide contains a clear comparison of the different types of IT vendors, how to choose a vendor and a checklist for evaluating service level agreements.

Grab the guide here: https://www.sym.bio/outsourced-it-guide

Lessons from “The Grid”

By | Business, Entrepreneurship, Food for thought, IT, Outsourcing | No Comments

Recently, on Bill Gates’ suggestion, I picked up ‘The Grid’ by Gretchen Bakke. To borrow Bill’s words: “This book, about our aging electrical grid, fits in one of my favorite genres: “Books About Mundane Stuff That Are Actually Fascinating.”

I often use the term “utility style computing” when talking about our IT-as-a-Service product, and the parallels between the IT industry today and the way our electrical grid developed in the late 1800’s and early 1900’s are striking. To (very) briefly describe the first few chapters in the book, when electrification first became popular, we were limited to DC (direct current, as opposed to today’s more common AC or alternating current). The primary limitation this imposed was range; it was very difficult to transmit DC electricity more than a mile or so. Thus, “private” small generation plants became the defacto standard for electrical power generation. Factories, private estates, and even the occasional municipality would deploy their own stand-alone infrastructure to power their facilities.

During this time, many small power companies emerged, and due to the limited range their plants were idle much of the time (a factory only runs during the day, street lamps only at night, etc). Because there is no cost effective way to store electrical power for later use, the capital investment was huge and the return very limited. Many of the small utilities turned to selling and servicing private plants as a way to make ends meet.

This really reminds me of the way IT service for most SMB’s developed during the 90’s and 00’s. Lots of businesses with servers sitting in closets, idle 96% of the time. Yet that degree of investment was required because there was no shared infrastructure (or grid) comparable to today’s cloud services.

About 30 years pass, and by 1920, AC (alternating current) becomes the norm. Long-distance transmission and voltage conversion become cost-effective. Samuel Insull, Thomas Edison’s long time aid and business manager took control of Chicago Edison, a small generating station downtown. He came to a series of interlocking insights about the utility business:

1) The key to making money as a utility is keeping your infrastructure as close to 100% utilization 24×7 as possible.
2) The lower your prices, the more money you will make.
3) Subscription is ultimately cheaper for the consumer than independence.

Those insights were enough to propel Chicago Edison under Insull’s leadership from bit player to regional monopoly. He realized that federal and state regulation would turn utilities into natural monopolies, meaning competition in those markets would largely disappear due to high infrastructure costs. It remains to be seen if something similar will play out in the cloud space, but with major infrastructure players developing their own custom chips, and what Cory Doctrow (a personal hero) called a “war on general purpose computing,” it wouldn’t be an unsurprising outcome.

A Step-by-step Guide on Hiring an IT Director or Manager

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IT staffing

What does your IT hiring look like?

We recently came up with a guide to help with the vacuum of IT talent for small and midsize organizations. Generally speaking, most IT professionals prefer to work at larger companies or at places with ongoing complex technical problems to solve. A 30-person nonprofit or small office of accountants is not exactly a dream job for most IT people. Because of this, we have put together our own hiring guide that lays out the process and tips that we use in finding our own talent. Whether you are a recruiter, a business owner or just someone tasked with hiring… this guide will aid you in your process.

If you’d like to access the free guide, then just go to: https://www.sym.bio/hire-an-it-director-guide

I recently posted about this on LinkedIn as well, which can be found here: https://www.linkedin.com/pulse/guide-hiring-director-manager-jeremy-stayton

 

Is IT as a Service right for you?

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In short; IT as a Service can make complete sense for small and mid-sized businesses that want access to enterprise-class infrastructure and features without having to manage all the mundane support needs, all while consolidating tech expenditures and overhead into a predictable monthly fee — just like a utility. It does not, however, fit for all businesses.
I’ve been working with some very innovative guys over here at Symbio and am compelled to share some of my learnings regarding IT as a Service. First off, the business model for ITaaS is quite unique and better aligns business interests with those of the client. By charging a flat, per-user fee that covers ALL hardware, licensing and support expenses, Symbio is incentivized to ensure that the support lines ring as little as possible… that means that the infrastructure is extremely well maintained and preventive measures are taken to meet client needs before they arise. When was the last time you called your utility company to tell them what a great job they are doing because your power hasn’t gone out in 3 months? Exactly.
The other thing that stands out is the cost savings to the customer while at the same time always having upgraded tech. One possible IT as a Service model, and the one Symbio uses, leverages desktop virtualization via their own hosted environment, which essentially means that your desktop lives in a data-center (where it should be) and you access it via software or a ‘thin-client’. The benefits far outweigh the cons for most organizations; efficient upgrades and patches deployed to customers remotely, a desktop that can be accessed from anywhere or any workstation, rapid resolution of issues, disaster recovery and audit compliances to name a few. Additionally, what I’ve seen on average is that most firms are able to lower their average annual cost by over 20% when embracing the IT as a Service model, and at the same time dramatically improving their technology and productivity.
There are however businesses where this does not make sense. Organizations that are heavily dependent upon graphics processing or primarily using Macs are not a good fit for this technology as the enterprise management tools aren’t quite there yet. Also, systems dependent upon absolute guaranteed uptime (high frequency trading, medical emergency, etc.) would be best suited to locating all infrastructure as close to the user as possible. In some of these cases it makes sense to bring all the expertise in-house, and in other scenarios it may be best to hire a managed service provider to manage your infrastructure. One size does not fit all, but it may fit most.
Just like outsourcing payroll or legal functions, it seems like more and more often, outsourcing IT makes complete business sense for small to mid-sized businesses. Some food for thought.

Upgrading to a High Performance Storage System

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With summer almost upon us, we’re excited to announce that we’ve completed the deployment of our new high performance storage system. This system is orders of magnitude more performant than our existing system and it means we will no longer have a single spinning hard drive in production. We’re going to complete the data migration portion of the project over the next couple months, and then the last vestiges of 1970’s era technology will finally be behind us. We are now a Virtual Desktop provider that doesn’t use hard drives for anything other than data backups!

What this means for our clients is that our VDI environment will be much more responsive from a user experience perspective and load times for applications will be dramatically reduced. We’re excited to roll out this upgrade to all our clients as a value-add and competitive differentiator for the years to come — aren’t you glad you got rid of that clunky desktop computer?

The Garden of Business IT – Growing Your Own or Farming IT Out

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We live in a world of outsourcing.  Can you think of any tasks you outsource? At home, do you groom your own pets? Does your energy come from solar? Do you raise your own chickens for eggs and chicken parmigiana? Do you grow all of your own vegetables? When it comes to technology, do you build your own smartphone? What about computer maintenance?

The popularity of outsourcing our everyday needs has been on the rise ever since the industrial age. Today, we live in the age of technology. New outsourcing solutions evolve as our technology expands. Why should we outsource the production of our veggies to a third party like farmers? Why should you outsource your business’ IT needs? Outsourcing has its pros and cons, and we will look at some factors you should consider in this article. To illustrate this point, imagine planting a garden.

So you want to grow your own garden.

Great! Here are some of the benefits of having your own little garden:

  • You get to plant the seeds and watch them grow
  • You are literally able to taste the fruits of your labor
  • You can observe all the processes that the plant goes through
  • You feel proud when you serve a home grown salad on your dinner table

Everything seems good so far. Why would someone buy their vegetables from the store? Here are some obvious and not so obvious reasons:

  • You can find food in several convenient locations like famers’ markets and stores
  • You avoid the expense of buying materials
  • You can find a wide variety and abundant supply of vegetables
  • You might not have the knowledge, the time or energy resources to grow your own
  • You have no way of guaranteeing that your garden will yield the results you want
  • You may not have enough room for gardening on the scale you’d like, if at all
  • If you run into a pest or fungus problem you don’t know how to handle, it may destroy your garden

What does this have in common with business IT? Well for starters, planting your own garden is like handling your own IT in house, and requires some of the same planning skills you’d apply to creating your garden.

  • You get to build your own IT systems and management from the ground up (no pun intended)
  • You work out the kinks in your own systems and reap the rewards of your own hard work
  • You are able to directly oversee the hardware, servers, and maintenance of your IT
  • You feel proud when you grow from your mistakes and learn new things

What about outsourcing your business IT? Outsourced IT is alive and flourishing in many industries. Why?

  • With outsourced IT, you get state of the art security; your data is secured in elite data centers with advanced security measures
  • Money spent on the hardware and maintenance costs of your hardware infastructure can be dramatically reduced by utilizing cloud based systems
  • The time you spent managing your IT can now be used to focus on the growth of your business
  • Scaling your hardware and software to accommodate growth is a seamless process
  • You have a team of specialists who are expert at keeping your systems safe, secure, and efficient

Given all the pros and cons of keeping your produce or IT in house, what would you choose? Both are viable options. The real question is, what is best for your business? We recommend that you outsource your IT if your needs outgrow your ability to manage them in house. We encourage you to research your options further before making any big decisions. Think of the prospect of managing your own IT needs in house in the same way that you would consider planting a garden to meet all your food needs.