Is My Technology An Expense Or Is It Generating Revenue?

Does it feel like your IT is too expensive? The more efficient your IT processes become, the greater ROI you can achieve with your IT budget. Have you harnessed the potential economy of scale available with modern business technology?

Are you worried you’re not getting the value you expect from your investment in IT?

No one wants to spend money they don’t feel they have to. Especially when it comes to a carefully planned budget, you hate to have to go over it in any way. That’s why, in business, corners are often cut when and where they can be.

This commonly happens with IT. People often rely on cheap, second-hand or inherited technology, and find the cheapest IT company or one-man shop to fix it when it breaks.

What you may not know is that saving money by buying cheap may cost you more in the long run. The fact is that cheap hardware typically doesn't last very long, and limited IT support causes more problems than it solves.

We’ve got good news—IT cost-effect is high, and has only risen in recent years…

3 Indicators Of Increasing IT Cost-Effect

A recent study by Computer Economics shows how businesses are getting more for every dollar they spend on IT over the past few years:

Cost Per User Is Decreasing

When adjusted for inflation, the IT cost per user went from $7,758 in 2019 to $7,602 in 2020, thanks to both cloud technology and automation.

Capital Spending Is Decreasing

Capital spending has become a small part of IT budgets and continues to get smaller year by year. 31% of organizations surveyed planned to decrease their capital spending, even more so than the year prior.

Capital Budgets Decrease In Relation To IT Spending

Furthermore, capital budgets used to occupy as much as 21% of a given IT budget in 2016, but since then it has dropped to 17%.

As you can see, the IT dollar is going further and further for businesses—but only if they’re investing in the right technologies. One way to do so by properly harnessing the cloud…

5 Ways The Cloud Increases IT Budget Cost-Effect

Lower Initial Investment

Choosing a hosted or virtual server over an on-premise server to store your important data comes with a significantly lower upfront cost. A hosted server is maintained at an off-site location and does not require the purchase, installation, or maintenance of hardware or software in your office space.

You pay a predictable monthly fee for your Cloud services plus any time and material costs as needed. You never have to worry about covering the cost of repairs, or dealing with prolonged stretches of downtime—and subsequent loss of productivity and profit—due to equipment failure.

Most issues are dealt with by your IT provider before you even realize there is an issue at all, and in the event, there is a disruption to your services, your provider will be responsible for making sure it's sorted out as quickly as possible.

Hassle-Free Scalability

As your business grows, your technology needs will change. The more business your organization does, the more data it will generate and then need to manage and store securely. More data requires more server storage space, which often means new or additional servers would need to be purchased and installed.

With a hosted server, adding more storage space is as easy as making a phone call, and the cost associated with this addition is minimal. Especially when compared to the cost of buying a brand-new server and having it delivered, installed, and configured.

Lower Personnel Costs

When the bulk of your data, software, and applications are deployed, managed, and stored in an entirely virtual setting, there is less of a need for ongoing onsite IT support. When your internal IT department's only responsibility is occasional break/fix maintenance, you can reduce the number of full-time staff your business needs to keep your IT environment running.

Taking the cost of an annual salary (or salaries) out of your operating budget can make a huge difference to your bottom line, and leave you free to invest your technology budget more wisely.

Lower Energy Bills

Less onsite hardware means lower initial investment and maintenance costs & will save you money each month on your business' energy bill. Fewer pieces of onsite hardware and equipment mean fewer pieces of hardware and equipment that need to run 24/7, continuously drawing power.

This can also reduce the number of battery backups your business needs to have hooked up and running at any given time, saving even more on both hydro and equipment costs.

Reduction in Redundancy Expenses

A smart business owner prepares for any potential scenario. Part of that planning is investing in extra pieces of hardware to have on hand in case an important piece of equipment fails. Big-ticket items like servers that sit in a box in the back of your office and will more than likely be outdated long before they're ever needed are an incredibly expensive way to try and maximize uptime.

Cloud providers will take care of that redundancy for you by offering solutions like multiple failover server sites to make sure that their customers never have to deal with the inconvenience of downtime and lost access to their data and applications. Enterprise-grade security measures and data recovery protocols are generally built right into these cloud-based servers, effectively handling any eventuality on your business' behalf with no extra effort or cost on your end.

What About IT Support?

Beyond IT assets like hardware and software, you may be wondering whether you’re spending too much on IT support without getting a substantial ROI, especially if you’re new to managed IT services. One of the most common questions we get asked is…

I already pay to get my computers fixed when they break down. Why would I pay that much more for managed services? What’s that money getting me?

There's a reason we get asked this so much. It's a good question because there's a rather large gap between what you pay for “a la carte” computer repairs and fully managed IT services.

Here’s what you need to realize about non-managed IT support—it may only cost you specifically for the time needed to fix your problems, but is it worth it? There are a number of downsides to this kind of IT support…

Speed Of Response

A minor computer problem can quickly turn into a disaster. This is especially true today with the increase in cybercrime like ransomware. What starts out with just one malicious email can spread throughout your entire network, locking down your data, and your operations.

Support Quality

It could take days to fix your problem—in the meantime, your employees won't have access to the data they need to continue working. You're simply "bleeding money” by the minute. Your support provider then starts charging you after you've already lost work time—time spent on repairs or updates can add up fast.

For all these reasons, managed IT services have become the standard model for IT support. This type of support (i.e. a set of best practices, processes, and tools that, when combined with technical knowledge and proper facilitation, delivers an ideal result to you) is the modern model for IT support for a number of good reasons:

More Time

Think about all the time you waste when your IT isn't working; your employees sit around waiting for their email to come back online, or for a document to print, or going through the support process with a technician over the phone. When your IT works correctly and consistently, all that time can be spent on your actual business.

Stress Reduction

Dealing with IT problems on a daily basis gets old fast. The time and stress involved can have detrimental effects on productivity and efficiency (and your stress level). Beyond your time and money, managed IT services help you reduce your stress and gain a lasting peace of mind when it comes to your IT.

Managed IT services are designed to maximize your budget and provide the support and solutions you need to stay focused on your important work and keep under budget.

Boost Your IT ROI With Expert Advice From N-Tech Consulting

Need help assessing your IT expenses and achieving a greater ROI? Book a meeting with the N-Tech Consulting team.

Your Comprehensive Guide To Finding The Right IT Company

Your Comprehensive Guide To Finding The Right IT Company

You may assume…better the devil you know than the one you don’t, right? At least, that’s what they say. Often, when it comes to IT support, the assumption is that if you’ve worked with one company, you’ve worked with them all.

If you’re not satisfied with the one you currently have, it’s probably not worth the time and effort it’ll take to find a new one. You’ll just encounter the same problems.

But really, this is an illogical assumption to make—as with any market, how could you expect the many, many options available to you to be the same? The right IT partner is out there, but you have to do your due diligence.

If this is to be your next IT company, you don’t want to rush into any arrangement without being sure you’ll get what you need. In this blog, we'll show you why you may need a new IT company, and what to look for in your next one.

Ask These 3 Questions Before You Sign With A IT Company

What are your long-term plans for your IT company?

Think about it: you don’t want to start a relationship with an IT company that’s just looking to attract clients and then sell to a larger company. You want somebody that’s in it for the long haul like yourself. Look for an IT partner that has the right plans.

Are your employees full-time workers, contractors, or outsourced?

Make sure to inquire about the type of people who will be supporting your business’ technology.

Are they well-compensated, experienced, career IT pros? Or are they contractors that work with dozens of clients and thousands of end-users? Will there be any consistency between support requests?

Will the people at this IT company’s help desk be able to learn about your business over time?

Do you outsource any services or work?

Similar to the last question, find out to what degree this IT company’s services are handled in-house. The more expertise they have on staff, the more consistent and personal your support experience will be.

What To Look For In Your Next IT Company

The fact is that, no matter what SLAs you get, what you hear from other clients, or how well-rated they are on Google and GlassDoor, you will never really know what you’re getting into with an IT company until you give them a shot.

Certainly, fixed qualities like price, scope of services, and technical certifications are important considerations in how you determine who you’ll work with. However, they’re not the only considerations that matter.

Do They Understand Your Business?

Nearly any IT company can fix your technology temporarily. What sets the truly worthwhile options apart from the rest is their attention to detail—and to you.

If they take the time to find out what your business does, and how technology plays a role in that, then they can make sure it’s repaired and configured to best suit your needs, as well as make suggestions for how to improve.

Will They Answer When You Call?

It doesn't matter if they have Live Chat, a dedicated phone line, or a 1-hour response guarantee. When you have an issue, you want someone there to answer you. In their marketing, they could make any huge claims about how quickly they respond, but what matters is whether they’re there in the moment.

Do They Go The Extra Mile?

This is the real “x-factor” in support services. Does the IT company in question do that little extra to make sure you’re taken care of? This can be difficult to describe without specific examples, but you know it when you see it. Make sure you learn enough about the IT company to find out if that “x-factor” is actually there.

What Should You Expect From Your IT Company?

If your IT company isn't delivering these key service features and capabilities, then you need to move on to an IT company that will.

Effective And Transparent Support Services

Any IT company can offer a suite of traditional Help Desk features, such as a helpline, ticketed support, or even an online support portal.

What you need to find is an IT company with a demonstrable quality of IT support. Do they truly resolve issues for good? Or do they simply apply a "band-aid" solution that will only last in the short term?

Furthermore, they should also offer a transparent support process that allows users like you to track progress. You should be able to easily access updates on a given ticket and be able to expect a resolution within a given time frame.

Cloud Infrastructure

Moving to the cloud is as necessary as it is challenging. With assistance from your IT company, your team should be able to harness the strategic advantages offered by the cloud-efficiency, agility, and scalability without taking on any risks that come with a poorly planned and executed migration.

In order for organizations like yours to stay connected and productive while working remotely, you need the right technologies and processes in place. For example, due to how quickly the pandemic developed, many organizations were unable to prepare for the shift to a remote work setting.

Doing so would have required careful planning methodical execution of new processes and expert implementation of new technologies

The right IT company can streamline that entire process. In addition to standard cloud services, your IT company should have been able to seamlessly migrate you and your staff to a secure and user-friendly remote work environment as needed.

Network & Infrastructure Management

Network Infrastructure Management involves managing both the hardware and software systems within your IT infrastructure, including computers, servers, security platforms, routers, and more, to enable a smooth flow of business processes.

A great IT company will be able to resolve network errors immediately because their team has a good understanding of server technologies, including physical and virtual servers, storage and backups, and most importantly, disaster recovery.

Expert Cybersecurity Support

Perhaps more than any other IT service that you could have managed, security is likely the most valuable. Unlike printers or communications, security requires ongoing monitoring and maintenance, all of which can best be delivered as a managed function.

Your IT company should be able to deliver a range of cybersecurity solutions and services. The "defense-in-depth" functions include 24/7 monitoring and management of firewalls and intrusion detection systems.

Your IT company should also be able to respond to emergencies, perform security assessments and security audits, and oversee patch management and upgrades.

Long-Term IT Planning Support

Lastly, you need an IT company that is committed to your long-term success. Do you only hear from your IT company when you have an immediate, pressing issue?

An IT company that's invested in your long-term success will meet with you on a regular basis to plan ahead for upcoming projects and upgrades, assisting with IT budgeting and overall strategy. That's how ongoing challenges stemming from IT issues and business obstacles can be permanently overcome.

Delivery Of New Technology

Many businesses find it difficult to keep up with the latest advances in technology. Outsourcing your IT to a local IT company should provide easy access to the latest technology so you can be more competitive in this technology-driven world.

Furthermore, with an IT company, these solutions are less expensive than if you purchased them yourself. Most IT companies have partnerships with vendors and can provide new technologies at a reduced cost.

The IT industry is full of new developments, each of which could be a real, beneficial trend to invest in—but it’s more likely to be a gimmick that won’t achieve much in the end. An expert will know which is which.

Telling the difference can be difficult, but it gets easier with time. The right IT company will have seen countless IT fads come and go. Not everything is the “next cloud”—those with the right experience and expertise will know the difference.

Scale Technology With Your Growth

As your business grows, your IT needs to grow as well. Keep in mind that new service offerings often come with significant upgrades or new software. Your IT company should have the knowledge and skills to provide the flexibility you need to change your products/services or add new ones when required.

You need to discuss the technologies you use every day, and make sure your IT support knows how to support them. The key is in finding an IT company that can offer industry-specific expertise and unique service that can't be found anywhere else.

In addition to understanding the technology you use, they should also understand and actively apply the potential of new technologies—such as the cloud—to help you improve the way you work.

IT Expertise

You need to find an IT company that has true expertise. The fact is that, whether you’re looking for your first outsourced IT support company, or you’re looking to switch from one that’s not getting the job done, the process of doing so requires a fair bit of research.

After all, you don't want to make this decision lightly. You need to find an IT company that is capable, knowledgeable, and cost-effective.

Your IT Support Should Be Proactive

Proactive IT support monitors and maintains your IT on an ongoing basis. Operationally, proactive monitoring provides a view into the health and status of IT assets.

Like air traffic controllers, your IT company uses monitoring tools to see network traffic and plan actions to avoid potential problems. They can act proactively while using the tools to benchmark performance.

From active monitoring and patch management to responsive on-site and Help Desk support services, fully managed support takes care of everything you need.

Advantages include…

Freedom Of Focus

You can finally focus on running your firm and not on IT worries. Your IT support provider will minimize or eliminate downtime that could hit your bottom line.

Easy Budgeting

You'll benefit from a flat-rate payment model, allowing you to budget your tech more effectively. You'll be able to plan for growth far more easily and with greater peace of mind.

Cost-Effect

Tech maintenance from a third party is more cost-effective than relying on reactive solutions, especially when you consider the lost revenue from downtime.

Finding The Right IT Company For You

Selecting a company to maintain your technology is one of the most important decisions you can make for your business. You must find the most competent and reliable IT support provider in your area.

How do you know if the IT company you're considering is right for your business? Some technology companies call themselves the best, but they haven't kept up their certifications.

This is important because the latest certifications validate the skills that their techs learned in their training. With all the cyber threats and new IT solutions today, it's critical that your IT provider is up to date on their skills.

Don't just pick a company off the Internet because they're the closest one to you. Do your research to find out if they are truly qualified to protect your data and meet your organization's unique IT needs.