Fortune 500 companies have their own IT network
staffs, and midsized companies that choose to outsource network services
have enough outsourcing contract worth to compel first-class attention
to their needs.
But what if you're a small business under 100
employees--with network needs that can be just as critical to your
business?
Unique challenges face small business owners and
operators every day as they struggle with installing and maintaining
their computer networks. Here are options and strategies that small
business owners can use to solve their network issues.
The network perspective of small business
If you're a
small business, you may not have a dedicated IT staff. If you do, it
likely consists of one or two employees who scramble to meet the company
network, computer, and telephony needs on a daily basis. On a bad day,
this means that company employees wait to receive service, and waiting
for phones, computers, or networks to be restored means time and
money.
For many small businesses with IT on staff, the
IT-dedicated employees are those who started in other company functions
and then expressed an interest in computers. These employees are often
"homegrown" in their computer and network knowledge. They might be
ill-equipped to fight the invasion of a major computer virus or worm--or
a disaster-recovery scenario where all electrical power has been knocked
out to the building, with computers and networks damaged or down.
Since small companies depend on functioning "lean," with very limited
budgets for training, employees who are working IT issues in these
companies find it difficult to keep up with the latest technologies,
trends, and in some industries, regulatory requirements. During company
busy seasons, these employees may also be called upon to double on other
non-IT tasks.
Very quickly, the case can be built for outsourcing
networking services--but just as quickly, the barrier of cost enters in.
Small businesses cannot afford expensive outsourcing contracts. If small
businesses do secure services from network service outsourcers that also
service larger organizations, the smaller companies will still struggle
when asked to compete with larger companies and larger outsourcing
contracts. Long waits for service compromise customer service, and
that's bad for business.
What strategies can small businesses use
to navigate the seas of network technical support? Often, this
navigation begins with a self-assessment of the business itself.
Do you need a network?
Small businesses differ
widely in the products and the services they offer. It's not surprising
that their computer network needs also vary widely. For instance, if
your small company provides call-center and communications services to
business clients, your computer network is a mission-critical area of
your business. If you are a metal fabrication shop, your computer
network might still be a mission-critical component of your business if
it's where all your engineering drawings are stored and sent from.
On the other hand, if you run a gym, you might not need immediate
access to a computer network, and you might be able to tolerate a
certain amount of down time. This is why understanding your business
information needs is paramount to your network strategy--and a major
factor when you make decisions like whether to hire your own qualified
IT staff, or to outsource all of your networking.
What size is the right size?
A network servicing
solution for a small company is a balance between service and value. Two
types of small companies opt to use internal employees for network
support, and they are at the opposite ends of the spectrum:
*
Companies with little or no resources and expertise in IT support,
making do with the knowledge their existing employees have; and
*
Companies that recognize they will not be a commercial success without
excellent networks, and thus make the decision to employ highly skilled
network professionals who are dedicated to their operations.
It
is difficult to overstate the advantages of having highly trained
network professionals on board. Since these employees are in demand and
highly mobile, the persistent risk for companies that hire is that these
employees sometimes secure advanced network training on company time,
and then leave for greener pastures.
Small companies whose
primary business does not directly rest on their technology often try to
minimize their technology investments. These companies often opt to use
an internal employee to troubleshoot technical issues and install
computers as a secondary function--but they also consider outsourcing
their network support.
hat about network and computer
outsourcing?
There are different types of outsourcers in the
network and computer market. This makes it important for the small
business to distinguish among them.
Consumer-oriented stores
like Circuit City and Best Buy have recognized the small-business
market, and are expanding programs that serve this market.
Small-business programs in these stores are built around multi-year
contracts that provide 24/7 technical support for computer hardware and
networks, and are directly based on the size of a company's technology
investment.
One example is Circuit City's "City Advantage"
program, which begins with a purchase of computer hardware by a small
business. If the business purchases six desktop computers from Circuit
City, it is charged between $130-$140 per station as a one-time upfront
contract fee.
The contract is in force for two years, and if the
company chooses to exit the contract, the remainder of the monthly
contract payments is returned as a prorated amount to the business
without penalty. The business also has the option of entering into a
four-year contract that further discounts computer technical support
fees in return for a longer contract.
"Our support for hardware
problem resolution and replacement is virtually unlimited, although
viral infections and accidental damage, like damage resulting from
spilling a Coke on a computer, are not covered," said a Circuit City
representative.
Although consumer stores offer hardware technical
support only, programs like these give small businesses cost-effective
24/7 support for hardware failures and troubleshooting. Some of the
disadvantages are lack of software technical support, limited training
options (the consumer stores are working to expand these), lack of an
equipment leasing program, and little help or assistance in computer and
network security.
Major PC equipment manufacturers like Dell,
HP, CDW, and Gateway all offer small business technology purchase and
technical support programs. All are reputable companies, with their own
core competencies and areas of expertise.
Dell's business
services target companies with 200 employees or less. Dell offers
installation services for hardware and software, outlets for the
recycling of obsolete technology, and financing. It has a full
complement of training programs that are both in-person and online. This
training includes Microsoft certifications, Red Hat Linux certifications
and Dell certifications.
HP offers network and computer
technology purchase and leasing, with specialized solutions for vertical
industry sectors in real estate, accounting, legal and healthcare. The
company offers free online classes in desktop publishing, wireless
technology and Web skills, along with online how-to guides for computer
security, the production of marketing brochures, and Wi-Fi security. HP
also offers small businesses network security and backup services--and
keeps businesses informed about the latest network and computer
technology trends.
CDW also provides purchase programs for
government and education. The company provides technical support options
and competitive pricing to small businesses.
Gateway offers
programs for businesses with fewer than 100 employees. It has a n array
of computer hardware and software, and is positioned to configure
hardware for unique business applications. In one case, Gateway
customized a handheld tablet PC with touch-screen capability for a
medical center that the medical center was unable to procure elsewhere.
Gateway also keeps small businesses informed of the latest network and
computer trends on its Web site.
Smaller networking companies
often support specific vertical markets. Recognizing the challenges
that many small businesses have in managing their networks, a number of
industries have formed associations or consortiums that offer discounted
technology purchase prices at group rates, as well as affordable
technical support. This is especially prevalent in vertical industry
sectors like banking, hospitality, healthcare and small government.
"We recognized small business technical support as a significant
issue several years ago, says Rodney Ford, vice president of Sales and
Marketing for Core Technology, a Lansing, Mich., network provider and
service bureau for law enforcement and government.
"When our
clients began upgrading their technology into modern computer networks
that went beyond modems and dedicated phone lines, and transformed into
communicating over the Internet, smaller law enforcement and government
agencies needed a new technology infrastructure at the same time that
they were being mandated to adopt industrial strength security to meet
state and federal standards," adds Ford. "It was natural for us to offer
them an online service bureau in which we procured the technology,
installed it, ran it and responded to technical support issues."
Another company working a similar market is five-year-old Sorbis,
based in New York City. It provides computer network services to over 22
hotels in downtown Manhattan.
"We perform network installations,
network servicing, project rollouts and problem resolution on a
pay-per-service, 24/7 basis, says President Gene August, who began his
career as a network specialist for a Manhattan hotel.
August
acknowledges that he was initially concerned about the pay-for-service
strategy that the company adopted, with no guaranteed ongoing income
from contracts. Originally starting in the hospitality industry, August
now estimates that about 60 percent of his firm's business is in
hospitality while another 40% of the client base comes from the
financial and manufacturing sectors.
"We find that many of our
clients are looking to save the expense of direct employees for
technology," said August. "At the same time, we can offer these
companies 24/7 staff with all of the latest technology and security
experience and credentials."
An additional alternative for small
companies is the neighborhood computer store that typically does not
offer 24/7 service, but that offers the opportunity for a pay-as-you-go
hardware repair service. Many times these smaller stores can respond
quickly to a problem situation.
Because they are in the same
trader area as the business, there is great potential for a mutual
relationship. However, like other small businesses, these smaller,
privately owned computer stores can be limited by their own internal
resources. Companies may have to wait a little longer for technical
support and problem resolution if the store has limited technicians to
work on technical issues, and if incoming problem volumes are high.
One size does not fit all
There is no one network
servicing and technical support solution that fits all small companies.
Some companies opt to address their networking needs with internal
resources. Others look for outside help.
For the latter, network
service providers have recognized the need to provide service options
for smaller organizations. The key for small businesses is finding
quality service while maximizing the value of technology investments.
"We made a conscious decision to serve small businesses when we
developed our service bureau," said Core Technology's Ford. "We felt we
could meet the day to day technology needs they were hard-pressed to
address. For a small business owner, I recommend that he make sure that
his business is a priority for his service provider."
Seven top network service strategies
Regardless of how
a small business chooses to address its networking and computing needs,
there are best practices that can be followed to ensure that the best
possible choices are made. Below are seven best practices that small
businesses can use for their network serving and support:
* Determine how mission-critical your technology is to your business
If your network is a critical component of your end business
and you can't afford to be without it, you need strong technical
support. Conversely, if your business is able to function several days
without your computer network, you might consider a very affordable but
less service-intensive mode of technical support.
*
Consider leasing instead of buying your computer and network
equipment
The companies you lease from typically track technology
developments, and can assist you in keeping up with current trends as
you exchange and upgrade equipment on lease. From a financial
standpoint, you can expense lease costs, and can thereby avoid having to
depreciate an asset that will obsolete itself in three years. Leasing
arrangements also assure immediate replacement of technology that
fails--with the lessor assuming all servicing and replacement costs. All
you worry about is the monthly cost of the lease.
* Look
for an industry buying group or network service provider
If you
belong to an industry with a trade association, the trade association
often offers buying programs that give you better technology purchasing
(and possibly even lease) options, based on the strength of a larger
purchasing group comprised of multiple businesses. If you are looking
for servicing, a number of vertical sectors also have network providers
with both specialized network and industry knowledge. This combination
is frequently a "best of breed" combination for a small business. You
get the network know-how at a discount price and do not have to take on
payroll--at the same time that you have a service provider that
understands your end business and the particular technology demands that
it has.
* Form your own network services cooperative
If you don't have a trade association that can offer you technology
discounts--or a service provider that specializes in your industry, you
could consider starting an independent organization that provides
network and technology services to a pool of small businesses that share
the costs. Many small businesses in the same industry have done this,
particularly in areas like financial services and healthcare.
* Ask your vendor what his performance guarantees are
Small businesses with limited technology needs don't have much
"clout" when it comes to demanding service guarantees from outside
vendors--but many of these vendors make it part of their business to set
such standards for themselves. Before entering into a contract for
network services, ask your vendor what his service guarantees are.
Important items to ask about include how quickly the vendor promises to
respond to your trouble call, and how quickly the vendor pledges to
resolve problems. At the same time that you are asking your vendor
about service levels, also ask him about his business partnerships. Many
vendors have business partners that can supply other technology needs,
such as hardware and software fulfillment, or network disaster recovery
services.
* Check references
Ask a prospective
service provider for customer references, and take the time to interview
these references. References are excellent sources of "inside
information" about service providers. They can be instrumental in
helping you with your decision.
* Consider a "payback
period" for training investments
Some organizations are beginning
to establish training investment "payback" periods with IT staff. Here's
how it works: You invest in a Microsoft network professional
certification for an employee. In turn, the employee commits to repaying
the hard-dollar training investment if he leaves the employ of the
company within a certain period of time (typically, one year) after
receiving the certification.
Mary E. Shacklett
is president of Transworld Data, a marketing and technology practice for
technology companies and organizations.