NETWORK WORLD NEWSLETTER: MARK EHR ON OUTSOURCING
08/25/04
Today's focus:  Lessons from the trenches

Dear [EMAIL PROTECTED],

In this issue:

* EMA's own experience with outsourcing
* Links related to Outsourcing
* Featured reader resource
_______________________________________________________________
This newsletter is sponsored by Alterpoint 

Read the latest analyst report on Network Change and 
Configuration Management (NCCM) written by EMA's Dennis 
Drogseth.  This report discusses the latest developments in the 
NCCM market, including an in-depth look at DeviceAuthority 
Suite, a comprehensive solution for configuring, changing, and 
controlling today's complex, multi-vendor IT network 
infrastructures.   Download the report today to learn how you 
can leverage NCCM to reduce the cost and complexity of managing 
network change. 
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_______________________________________________________________
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_______________________________________________________________

Today's focus:  Lessons from the trenches

By Mark Ehr

Those of you who follow this space regularly may remember that a 
few weeks ago my company decided to outsource our entire IT 
function to a local MSP/ASP (MASP) called JustConnect, now a 
part of MicroSource.

The reasons for making this move included cost savings, 
increased productivity for our workforce, and higher levels of 
service (not to mention that I have been handling our IT 
function, and I don't want to be an IT guy - been there, done 
that).

MicroSource (MSI) provides a fully supported Citrix-based 
desktop and takes over network and (optionally) desktop 
management duties. The company provides a 24-7 help desk for 
users to call into and tracks all issues using CRM software - 
both of which are minimum requirements for a MASP, in my 
opinion.

Part of the justification for outsourcing was financial. ROI 
calculations showed we could realize a 100% payback on the 
annual cost of service within a quarter using a simple 
comparison of MSI's costs compared with the costs of a full-time 
IT person and other IT-related capital and operational 
expenditures. An even bigger "soft" benefit not included in the 
calculation was increased productivity by allowing our users to 
work anytime, nearly anywhere, while still enjoying the same 
desktop environment that they use when they are in the office.

The final justification was disaster recovery. Not having our 
data and applications hosted in a real carrier-grade data center 
(that we could never afford to build ourselves) was a major 
concern of mine. With MSI, all of our data would be stored on 
and backed up from a storage-area network. If all of our offices 
were to disappear tomorrow, our entire IT infrastructure would 
remain intact and available.

Unbeknownst to us, we would take immediate advantage of this 
feature.

During migration planning, I set an aggressive date for cutover 
to MSI - two weeks from contract signing. The reason for this 
was simple. We were moving our office just a week after the 
cutover date, and I wanted to have our IT virtualized prior to 
the move. MSI delivered in spades - it not only met the planned 
cutover date, but also beat it by two days.

Exactly one week before our move I drove our servers down to 
their data center (on a Friday evening), and the following 
Monday morning we were live with Citrix-hosted desktops, Office 
2003, and an MSI-hosted Exchange server. Granted, we did not 
have all of our applications virtualized, but 95% of our 
mission-critical systems were online and available.

That Friday, we performed our physical move. We hired an 
independent telephone contractor to move our phone systems, and 
the contractor also offered to help us move our T-1 line (bad 
idea). To make a long story short, the order for the T-1 move 
was either not entered or executed properly and today (four days 
after our move), we still have no data connectivity in our 
office.

Not to worry - since all of our IT is virtualized, I just told 
everyone to work from home until the T-1 line is in place. Our 
company has been able to maintain productivity through the 
entire move, saving us tens of thousands of dollars in lost 
revenue, and that makes a big difference when you're a small 
company. Now that is ROI you can take to the bank.

I have a few minor bones to pick with MSI around service-level 
agreements and the migration planning process (which will no 
doubt become the topics of future articles), but overall we are 
extremely happy with the levels of service and the 
responsiveness and technical acumen of the staff. For example, 
MSI has gone beyond the call of duty, helping us escalate our 
T-1 problems with our telco. Without its help, I believe we 
could have been without our T-1 for many more days or even 
weeks.

I welcome your ideas, suggestions and comments on the subject of 
outsourcing; my e-mail address is below.

RELATED EDITORIAL LINKS

Is security ripe for outsourcing?
Network World, 08/23/04
http://www.nwfusion.com/news/2004/082304outsecure.html?nl2
_______________________________________________________________
To contact: Mark Ehr

Mark Ehr is a Research Director with Enterprise Management 
Associates in Boulder, Colo., a leading market research firm 
focusing exclusively on all aspects of enterprise management 
software and services. Mark has more than 20 years of experience 
working with distributed systems, applications and networks. His 
current focuses at EMA are applications and systems management, 
mobile and wireless, enterprise application integration, 
security, and Web services.

He can be reached via e-mail at 
<mailto:[EMAIL PROTECTED]> 
_______________________________________________________________
This newsletter is sponsored by Alterpoint 

Read the latest analyst report on Network Change and 
Configuration Management (NCCM) written by EMA's Dennis 
Drogseth.  This report discusses the latest developments in the 
NCCM market, including an in-depth look at DeviceAuthority 
Suite, a comprehensive solution for configuring, changing, and 
controlling today's complex, multi-vendor IT network 
infrastructures.   Download the report today to learn how you 
can leverage NCCM to reduce the cost and complexity of managing 
network change. 
http://www.fattail.com/redir/redirect.asp?CID=73288
_______________________________________________________________
ARCHIVE LINKS

Archive of the Outsourcing newsletter:
http://www.nwfusion.com/newsletters/asp/index.html

Breaking outsourcing news and resource links:
http://www.nwfusion.com/topics/outsourcing.html
_______________________________________________________________
FEATURED READER RESOURCE
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Answer the questions and find out what the average salary is for 
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<http://www.nwfusion.com/salary/2004/calculator.html>
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