Part 5 - Outsource IT or parts of it

Outsourcing is probably a dirty word to some, especially when it is referring to jobs being sent overseas. That is not what I am referring to here, though it is difficult to know where the employees are if you use a large corporations services. I am talking about outsourcing either components of your system or perhaps all of it, but in the case of all of it, it should be done in a considered way or it may not work for you.

Partial Outsourcing

The first type of outsourcing I want to cover from a perspective of saving money is that of outsourcing one or more components – which could be an application or service that you currently run in house but could be done better by partners, either because it is not your core competency or it simply can be done cheaper in an alternative fashion.

My favorite current example of a component of IT being outsourced is that of email and in particular Microsoft Exchange. First of all, Exchange is a fabulous product that has been one of Microsoft’s best over the long haul and I have been involved in many implementations over the years and have never had a customer unhappy with the product or delivery. However, Exchange is a complicated product that requires continuous management and maintenance performed by someone with good messaging skills – there is more to it than meets the eye.

So consider this, even in the smallest organization, say with 5 users all with mailboxes, all requiring calendaring, contacts, tasks etc, the cheapest way to have the benefits of MS Exchange is probably to buy Small Business Server and a basic piece of hardware. Now the cheapest server with SBS 2008 costs around $3000 in the box, and that doesn’t include setup, backup and restore or anything else. Once it is in and all up and running, you then have the ongoing management costs, the upgrades, the electricity, etc.

Microsoft also provides Exchange via their Online Services (as do others but I haven’t been impressed by several other offerings I have tested) and for around $40 per month you can get your 5 mailboxes, the exact same benefits but literally none of the other costs from purchasing to managing and maintaining. You could enjoy the same features using the online edition for 6 years before it will cost you more than the initial outlay for hardware and software for your own internal version. To me that makes economic sense for any small or medium business.

The decision point as to whether it is relevant to you will be the number of users you have as there is a cross over point where it may not be so viable but I believe this could be a very high number in the thousands due to the increased levels of hardware and software you need to support big installations. Also for consideration is whether you use the server for other tasks. SBS will definitely provide other benefits that make it cost effective, as the server in a small environment will be performing multiple roles. Once you have Exchange on its own server the online version works out even better. I would love to see many companies taking advantage of this and having a professional email domain name to go along with it!

Total Outsourcing

Total outsourcing or outsourcing your entire IT operation provides definite savings if managed correctly. By removing your employee costs (and maybe re-allocating them to business growth tasks) and moving to a fixed cost contract you can save a large amount of money per year. A fixed cost contract means no more payroll, no more benefit expenses, no more overtime when the servers go down at 6pm on a Friday and instead hopefully a team of people who specialize in running IT for a business as their main task. They will have the procedures and skills in place to deliver a consistent security baseline, alert you to issues before they occur and be able to present to you improvements as technology develops and becomes relevant to you.

Here are a couple of thoughts:

1. If you do outsource, consider that local outsourcing is the way to go as you need to know that the company will have people on the ground to understand your environment and service needs quickly in the event of a problem - also the IT team external or otherwise is a key function of your business and knowing who they are is critical for success.

2. Key to saving with outsourcing is ensuring your IT house is in order before committing to a relationship, otherwise your fixed cost quickly becomes very variable. By this, I mean that if your systems are not standardized and rationalized first and you just handover a mess, then you are going to endure ongoing issues that will generate additional charges on top of the standard rates. Systems should already be built to a well documented standard then the outsourcer will only have to perform to the contract rather than performing continual ongoing fix projects. It is these fix projects that generate the extra fees and all of a sudden make outsourcing less effective.

Now for the shameless plug – Squeeze Technology (www.squeezetech.com) can hook you up with either of these options if you so wish and can help you evaluate which is more beneficial to you, as always, these are multi-faceted issues.

Part 4 – Remote Working

Everyone knows that allowing your employees to work from somewhere else other than your office has many benefits.

From a business point of view first and foremost you can save on office space – perhaps reconfiguring your office to a place where people can come in to collaborate flexibly rather than sitting in cubes. The saving here is pretty easy to calculate in terms of square footage not being rented, moreover you need less furniture, less maintenance staff, less electricity, which all means less expenditure.

From an employee viewpoint, you don’t have a commute so you could save several hours per day, you can start work earlier, finish later and still be home earlier than ever!

Also as I understand, people are more productive working from home. I am not an expert in this area so I will take it that it is probably true – just the fact you cant be in relentless meetings all day is a bonus.

What Are The Basics To Getting This Running?

A lot of what you need depends on what you want your users to be able to do when they work away. In a simple scenario they may require access to documents, they will want to run some specific applications (other than standard office apps which would be installed locally) and they will require email access. Here is how you might choose to deliver this:

Documents – the two most common ways are either to provide VPN access to your corporate network which will require at least at VPN server at the office end and a client on the user side . Once the VPN is connected files can be accessed using the same drives that you use when in the office. The downside is when file structures are large or you need to move lots of files around, it can be very slow over DSL connections. The second option is to use an intranet document management store such as SharePoint which can either be exposed on the internet (so no VPN required) or kept internal (VPN required). A web system will work well when users need to upload / download documents, work on them for a while and then move on to the next. Normally version control and document management features such as check in / check out are included to save multiple users editing the same documents at the same time.

Applications – if the application is traditional client / server type and doesn’t require very much bandwidth then you might get away with running the client over a VPN so it can connect to the server. If it has heavy duty network requirements then delivering the client component via terminal services will probably be your best bet. Here you have several choices as you could connect via VPN, then connect to the server via a remote desktop, or you could put the server directly on the internet and connect to the service without using the VPN to establish a remote desktop or you could finally host the Remote Desktop client on a web site that connects into the corporate network. If the application is web based or hosted (see my next blog Part 5 for more details) then the key applications may not even be on your corporate network which makes life even easier as all the users need is most likely a web browser.

Email – Microsoft Exchange provides many ways to get at your email, but if a user is going to work heavily on email , then the best choice by far is using a full Outlook client configured with RPC over HTTPS. By using this technique you don’t need a VPN up all the time and it feels like you are sitting in the office. Alternatively you can still run it over a VPN connection if it happens to be up for other reasons. Outlook Web Access also provides a great solution, but I find that it is better for brief email spells or a quick check. It’s a great solution but I still prefer the full client. The extra benefit of using RPC over HTTPS is that once you are set up server side it is just a few seconds of effort to have your Windows Mobile or Apple iPhone connected to your corporate email too. No middleware or Enterprise servers required, it works straight out of the box, mobile data plans not withstanding.

Coming Soon. Direct Access

Now here is a really exciting development, that builds on the discussion – Direct Access technology in Windows 7.

For any one who uses Outlook with RPC over HTTPS you will now how liberating and flexible it is – wherever you are in the world as long as you have an internet connection Outlook behaves as if it is on the corporate network without you knowing any different, all over an encrypted connection and no VPN needed. With Direct Access you get the same advantages but now for the whole remote experience not just email. You can work on company systems, files, intranets, email, everything as if you are connected directly and without a need for a VPN. No clunky VPN clients, connection processes or VPN devices at the business end. Direct Access will therefore save money on network hardware.

The best bit is from a management point of view the laptop appears as if it is on the corporate network and you can apply group policies, deploy software, patches or anything else just as if the computer was in the office.

The only small downside is you need Windows Server 2008 R2 in place at the back end and of course, Windows 7 as the client. Once these two platforms are more common, you will be getting all the solutions above solved with the purchase of software you would have bought anyway.

For more information on Remote Working, please visit www.squeezetech.com or contact the author.

Part 2 - Computer Power Management

Power Management for your PC and server estate is one of the easiest quick wins your company can implement.

Consider the following example, the average PC combined with the average LCD screen (not a CRT as they are far hungrier) uses 100 Watts. If that PC runs 24 hours per day 365 days per year then it will use around 100 x 24 x 365 = 876 KW hours of electricity which on average is about 11 cents per KWh. Therefore we have a total electricity cost of $ 0.11 x 876 = $ 96.36 per year. That is also equivalent to half a metric ton of C02 emissions per PC per year!

Now bear in mind that Hawaii pays far more per KWh than Kentucky so if you are based in a higher charge state – and lets face it they are all increasing over time, you could be paying far more.

PCs are left on for a number of reasons from pure laziness on the part of the user to IT Directives that insist they stay on so they can be maintained at night.

So How Do We Address This Problem So Easily?

By implementing Power Management, such as Squeeze Technology’s product Powerwise.

Here’s how it works. A lightweight server product is installed on the network and an agent is installed on each PC. An administrator can then configure “power” profiles for groups of computers, and using a sliding bar, can set each group for more normal energy saving to aggressive saving. Normal savings would make sure the computer is powered off at a certain time, powered up in the morning and can also be set to turn the PC and screen on and off at night as many times as required to match any update / patching windows a company might have. On the aggressive front, the software can detect how long it has been since someone touched the computer and put it in sleep mode, if for instance you have gone to a meeting or got distracted at the water cooler.

The entire Powerwise architecture is written with conserving network bandwidth as a priority. The agent refreshes policy data when it starts, and only contacts the server at certain intervals to store report data. This communication is compressed, and only updates and changes are sent.

What Are The Benefits?

For an average company the electricity savings per PC are large, even using the less aggressive modes you can look to cut costs by 70% so our example PC will now only cost $28.90 a saving of $ 67.

If you company has 100 computers you can look at $670 savings per year and if you have 500 computers we are looking at $ 33500 per year.

There are other benefits too. All these PCs idling away throw out a lot of heat, which increases the ambient room temperature, which you then have to spend more money on powering the air conditioning. We therefore have a positive impact on HVAC costs too from running costs, through to maintenance.

The software can be used on servers too, though a little more care has to be taken to ensure you don’t turn off critical 24 x 7 systems. Many servers though are not used at night. The savings from one server are much higher than a standard desktop PC.

The final benefit is the reduction in carbon emissions, leading to an immediate improvement in ‘Green’ credentials. These ‘Green’ credentials of businesses both large and small are of increasing importance to customers, and as part of their Corporate Social Responsibilities are becoming main stream issues for businesses. Indeed the government will no doubt in the future start setting all sorts of targets. Implementing Power Managements puts you ahead of the game!

How Much Will This Cost Me?

The return on investment (ROI) for this type of product is extremely fast and Powerwise can be had for as little as $9 per seat meaning you are making savings from month 2 of operation.

I will be covering more on Powerwise on the Squeeze web site (www.squeezetech.com) and on future blog posts to continue to promote this very easy way to conserve energy and money for the long term.

If you would like more information on this product, a free trial then please email me.

This is a hello from Elliot Lawrence, founder and CEO of Squeeze Technology in Orange County, California. Welcome to my new blog. I can almost feel the anticipation and excitement over the web waves for what I am going to write :-)

Here at Squeeze Technology, one of our main priorities is saving businesses money through better use of existing investment or new technology, and in this current climate it is more apt than ever. My blog will be covering the tips and techniques to deliver these benefits and will cover areas I think potential business readers will be interested in and more specifically will improve their business effectiveness and bottom line.

Now I am not a miracle worker but I have been working in this field for about 12 years and have had some pretty good results at the customers I have worked with and as of yet I have never been told to “take a ride”.

As time passes I hope to cover new issues, gotchas and specific technologies that I think will make a difference. For my next post I will be introducing 6 ways to save money and improve IT efficiency in measurable ways. If you want to know more in the meantime, please feel free to contact me.

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