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Managed Services for Small Business

The Perspective in this blog is a first hand account from working for a network service provider under going a transformation. We are moving from simple bandwidth and data center services provider to a complete managed services provider(for IT Infrastructure) by partnering with several hardware, software and tools providers.

Let me do jargon bursting for easier comprehension...

SaaS - Software as a Service - Providing a in-house/third party software in a shared Multi-tenanted (apartment leasing type) model with automatic upgrades and technology refreshes in a Pay as you go model.

Platform as a Service (PaaS) - Providing basic building blocks of IT like Servers, Storage and Networks along with some tools that enable hosting/running compatible applications on a pay as you go model.

Cloud computing - Similar to PaaS in a pay per use model with more generic/abstracted platform services.

What are Managed Services ?

Managed services in general is the practice of transferring day-to-day related management responsibility as a strategic method for improved effective and efficient operations. Managed Services for IT infrastructure allows enterprises to focus on the core competence and pass the responsibility of day to day IT management to the experts.

Why are Managed Services relavant to Small Business ?

We are living in trying times; the economic turmoil coupled with global competition and a deep awareness of climate change has a lasting impact on the business strategy for Small and Medium Business Owners.

Managed Services free up the business owner/management from day-to-day sustenance services to help him focus on strategic objectives and practical measures relevant to his/her core business.

There is a new social networking driven consciousness in corporations and individuals on the necessity to create innovative products/solutions, identify frugal manufacturing/execution options and safeguard this world for a better tomorrow.

This consciousness is driving adoption managed services to create new technologies/processes for harnessing human knowledge, technology sustainability and economic viability of enterprises.

How do managed services help harness human knowledge Small and Medium Businesses?

Communication, Collaboration and Knowledge management are key components of an effective social network to harness tacit and explicit human knowledge. The Businesses of all sizes are realizing this value of social networks and are investing heavily into communication/collaboration infrastructure.

We intend to reduce the inherent complexity of operating Multi-Media communication infrastructure by driving the adoption Voice Services, Contact Centers, Messaging and Video Conferencing as Managed services or on a SaaS platform.Our capability to deliver these services is largely due to symbiotic relationships with our partners who provide technology, tools and expertise to quickly ramp up the SaaS/PaaS platforms to serve the customer. We have challenged the conventional wisdom by collaborating with two competing 600 pound gorillas(google/gmail and Microsoft/Exchange) in the collaboration technology to serve different classes of customers.

How can managed services provider help Small and Medium Businesses in Technology Sustainability?

Managed Service Providers bring the technology innovation in Virtualization (on Storage, Network and Server fronts) to enabling new and unique business models for Remote Infrastructure Management for enterprises of all sizes.Virtualization not only allows easy realization of compute on demand infrastructure but also creates compelling business case for outsourcing system builds and software deployments to Remote Managed Services providers.

There are new trends in Desktop virtualization that remind us of déjà-vu of mainframe days with data center based user computing environments.

This creates a clear opportunity for standardizing, simplifying and remote management of desktop infrastructure directly translates into faster ROI for these services.

There is a rapid convergence is happening in storage technology, the innovation in storage arrays (like Thin provisioning and de-duplication) and the advent 10 gb Loss less Ethernet along with support for emerging standards(FCoE) is reducing the cost and complexity in network storage.

This convergence is creating opportunities for Data Center providers like us to morph in to Managed service Providers by offering Storage on Demand both for within Data center use and for Remote replication/Business continuity.

Last but not the least, Original equipment providers are focusing on Green IT technologies by reducing their carbon foot print and measuring themselves on metrics like Performance Per Watt and power consumption ratios(Idle to full capacity).It is easier for us(Managed Service providers) with our deep partnerships with technology providers like Cisco, EMC, HP and IBM to rapidly adopt the technology upgrades.

There may be a time when organization may stop buying Hardware, software or security appliances and instead opt for specific business functions as a service from managed service providers to realize the true benefits of sustainable green IT Infrastructure.

How do we improve Economic Viability for Small and Medium Business ?

It may be challenging to allocate and spend capital expenditure on IT assets for Small and Medium business in this economy.

PaaS/cloud computing offerings from managed service providers make it easier for small businesses to consume IT assets in a pay as you go model.Managed Service providers are able to leverage the economies of scale, relationship with technology providers and financial institutions to acquire the Building blocks for SaaS and PaaS services on revenue share/annuity model.

Small and Medium businesses can move from CapEx to OpEx model for IT investments to conserve cash and improve economic viability by subscribing to Managed services.

It makes sense to partnering with your Managed Service Provider...as an early adopter.. Typically SaaS and PaaS services are available for trials, beta testing and early adopter programs.

The Small and Medium Business can take advantage of early adopter programs, these are generally in the spirit of partnership. The providers have a deeper engagement during these engagements and may not charge for other wise billed professional services. The reward is significant enough to warrant the risk.

In a Nutshell, As the technology stacks are become more complex and expensive. The economic reality of managing the complexity may compel us to seek and nurture symbiotic relationships managed service providers for long term success.

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