by, Gerrit-Jan van Wieren, Vice President Business Development
As an IT service provider you probably started years ago with the idea you would do a better job than the rest. With a lot of enthusiasm and energy you have built a company of reasonable size and offer all kinds of different services. With the rise of Cloud you have the ideal position to tell your customers not to buy and own things, or have IT staff as a core business. You ask them the question; is this bringing you money? Or can we take it off your back? You used to invest in hardware which looked cheaper long-term, but you end up with IT staff that you don’t want on your payroll.
Did you ask that question to yourself? As an IT service provider providing services is in your DNA. But is investing also in your DNA? Or is it about making money? Owning stuff is not your core business. When you choose a solution, whether it is hosted backup or hosted e-mail the question should always be if you could do a better job. Look at all the aspects which come with hosting it yourself. It might look cheaper; buy some disks, forget to calculate the costs for staff, electricity and bring in the money.
Is it that easy? There is some risk involved. Disks can break, 24x7 availability is actually costing money and your staff can (accidentally) mismanage the platform into serious downtime. When we take a closer look at the business case we also see the calculation is missing reality. You always start with 0 GB and it takes time to reach the 100% coverage for all invested Terabytes. And when you reach 80% you know you’re up for new cash out.
Will you do a better job than the manufacturer? Will it bring you more money?
Always go for pay as you grow, without investments. Add value to the proposition with your knowledge and well educated staff. Start making money from day one. And remember what you tell your end customer about investing in IT. Practice what you preach.