IT budgets are tight, in fact SMB’s are only reporting a 5.6 increase in budgets (before inflation) for the next 4 years (2009 to 2013). The situation for enterprise class customers is even worse with a contraction in IT spend in real terms for the next 4 years (according to a recent IDCB Market Analysis and Forecast).
In addition to constrained IT budget allocations, IT managers must manage networks with extensive staff shortages in their departments. Not only is there a people shortage, but a shortage in the skills and experience required to manage and implement solutions. Hardware and software providers are increasingly bringing complicated solutions to market – virtualization is a very good example of this, with a high demand for professionals with Hyper V and Citrix experience; security is another good example with providers such as Checkpoint and MacAfee, bringing more complex solutions to bear on what are, complicated threats to networks security and company data.
It is the responsibility of an IT manager to protect the network, ensure performance meets the needs of the business and deliver real ROI to the bottom line. Turning to VAR’s and system integrators is one way in which IT departments can manage their budgets and meet their objectives. The issue becomes, how do you choose from the large number of companies vying for your business in the VAR/SI marketplace?
First of all, VAR’s should have the appropriate certifications and provider partnerships in place to deliver the solutions and services a company is looking to source. Their staff must be current and up to date in the specialized areas which are relevant to the delivery and management of the solutions into the client.
More than this, there should be a distinct transfer of knowledge from the VAR to the client’s staff – it helps enormously with staff development and in the reduction of operating costs if in house staff can be “brought on” in new techniques and how to manage the on site aspects of a solution implementation.
A secondary issue is what a VAR can do to shift capital expense to operating expense. This is crucial because the vast allocation of an IT budget (at least 80 in a typical company) is dedicated to operating costs which leaves precious little budget to implement solutions and new projects. IT management has an uphill task of convincing boardrooms to allow even microscopic upgrades unless the financial equation adds up. VAR’s with Software as a Service (SaaS) offerings are increasingly in demand because this achieves a straight shift of expense from the capital caption to the operating alternative, making an IT manager’s life that much easier. It is this financial/management skew in terms of what can be done to alleviate an IT manager’s budgetary constraint and yet achieve positive improvement to the network and business functionality which can differentiate a VAR.
Thirdly, ask what enterprise class continuity partners a VAR has. Most of the solutions which are being deployed today require fully “on” web capability; email, web access, intranet based business processes, hosted applications, and of course, Saas solutions, all demand a very resilient and high availability solution. VAR’s as stand alone companies are not likely to be in a position where they can deliver this themselves and in turn must rely on an enterprise class provider. If they don’t have one, you have to question the viability of their service offering.
Author Resource:
Lawrence Reaves works for PLANIT Technology Group, a leading provider of Richmond IT Services such as Richmond network security and Richmond enterprise storage. PLANIT can be found online at: http://www.planittech.com .
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