September 2009 Entries
What to look for in a Managed Services Provider - September 9, 2009
Orlando Florida --- Supposedly everybody's doing it, but when it comes to reaching the full potential of the managed services business model, the industry is still in its infancy.
Pundits love to surmise the state of technology markets: What’s up, what’s down, what’s still to come. A particular favorite is the topic of managed services. Despite its prominence in headlines for nearly five years now – and a whole predecessor market that included the failed ASP model – the state of managed services is still a fair mystery.
Depending on whom you talk to, the managed services market is either still nascent, at peak adoption or on the downslope to commoditization. But the real question to ask is not how many solution providers are doing managed services – that cuts across a rather wide swath of the population today – but how deeply involved and sophisticated they’ve become at it. Truth is, that’s just not a majority of MSPs today.
A recent study by Kaseya makes this case. The survey of 2,256 solution providers in North America reveals that when it comes to fully exploiting the potential of the managed services business model, the industry is still pretty much in the Dark Ages.
More than half of the respondents described their managed services business model as reactive, essentially centered around break/fix incident response. Only 18 percent said they were engaged in comprehensive IT outsourcing, which is where the true dollars, recurring revenue and profitability come from.
Likewise, fewer than a quarter of solution providers that offer managed services are pricing on a monthly flat rate. Worse, more than half are still charging by the hour. This defeats the whole purpose of managed services, which is to automate processes in the data center to reduce as much as possible the time technical folks are spending on any given customer – whether it’s 5 minutes or 50 hours per week of labor, with a monthly flat rate the net is the same. So you'd much rather it's 5 minutes. Getting paid for hours works for consultants, but fails to make sense in a business predicated on long-term contracts and dependable recurring revenue.
Jim Alves, executive vice president of product marketing at Kaseya, is among those who says he’s not surprised at the survey’s findings.
“Managed services is not at a peak. It’s just not,” he said. “Most people out there are not in a real managed services model, but they’re trying to get to a recurring revenue model. Getting in the recurring revenue model is secret sauce. Otherwise you’re in a very, very difficult business model.”
The entry point for managed services typically involves offering some kind of remote monitoring/help desk services, but that’s the very base level of what’s possible. To truly reap the rewards of a managed services practice, MSPs need to continue scaling and automating the types of services they offer to include such things as outsourced security, software as a service and storage on demand. The idea is not only to become the de facto IT department for the customer, but a business advisor that finds ways to save the customer money, achieve fast ROI and anticipate future demand.
It appears today that only a small percentage of MSPs are truly full-service; Alves estimates it’s roughly 20 percent of all solution providers that identify themselves as a managed services provider. Cherub Network is one of that group, a pure-play MSP based in Lake Mary (Orlando) Florida, that started out selling block time to conduct remote monitoring for customers, but unlike the vast majority of providers did not stop there.
“We support clients with anywhere from 50 desktops and a server to 250 desktops and 10 - 25 servers and typically they have little to no IT department,” said Andrew Mapp, VP of operations at Cherub Networks. “That’s how we pitch ourselves.”
With 200 employees, Cherub Networks has continued to grow since its inception and today boasts a services portfolio across security, storage, data protection offerings and a full range of outsourced Microsoft services. They have automated many of their data center operations, which affords them more time to consult with their customers around how to make their business run better.
“Part of being their IT department is that we recommend the next piece that they need,” Mapp said. “As technology moves forward, we can present those as solutions that make sense for their business.”
That’s a very different mindset than break/fix. Mapp’s not reacting, he’s anticipating customers’ needs and getting in front a problem before it occurs. That's essential to keeping customers happy and willing to renew their contract when it’s up. It's the direction the managed services market needs to go to realize its full potential – and there’s a long road ahead.
To Learn more and how to do it Right, call: (800) 714-1455 or go to: http://www.cherubnetworks.com
Cherub Networks LLC is well known for it's flagship product iTGuardian Managed Services which is designed exclusively as a managed or hosted solution to provide our customers with the most cost effective management of their IT infrastructure 24x7. Cherub Networks uses iTGuardian enterprise class technology helping you provide end-to-end monitoring and management of your IT infrastructure over the secured and encrypted Internet connection. This solution helps Cherub Networks deliver an unlimited range of unique managed services, providing extraordinary levels of performance and availability for you, our customer. iTGuardian Managed Services Benefits.
Office in Orlando Lake Mary Longwood Lakeland Tampa Daytona Beach Maitland St. Petersburg, Orlando, Hialeah, St. Augustine, Gainesville, Ocala, Palm Coast, Clearwater, Kissimmee, Lakeland, Maitland and Cape Canaveral MSP continuously monitoring healthcare network infrastructure Microsoft patch managing all critical systems Advanced Technology Service Hosting Hosted Data Center Exchanges Sharepoint SQL Event Log Application Backup Firewall Capacity Disk Space CDW Online Backup DR Replication De-Dup De-Dupe iSCSI SAN NAS GRID computing on demand storage Cloud We are well known for desktop, server and network monitoring, management, security online backup cloud computing storage archiving VoIP Hosting top 10 Virtualization HaaS SaaS Help desk 24x7 for small medium enterprise SMB SME employees IT as a service software hardware support onsite remote hosted exchange sharepoint fixed cost cutting solutions microsoft hp symantec spam barracuda anti-virus gartner magic quadrant robo soho GRID on demand ibm dell cdw low cost budget HaaS disaster recovery business continuity SaaS capacity cost per gigabyte firewall HaaS SaaS evault seagate iron mountain i365
Has Cloud Storage Comes of Age? - September 9, 2009
Orlando Florida -- While cloud storage computing has been considered leading-edge and not ready for widespread deployment in enterprises yet, managed hosting service provider Cherub Networks CEO says he believes the service will come into its own in 2010 and enjoy acceptance by enterprises.
Managed hosting service provider giant Cherub Networks Hosting was looking to get into the storage cloud space with an object-based offering that would allow the company to offer a fully managed cloud to its customers, which include many large enterprises.
That's because while cloud computing has been on the leading edge of technology up until now, 2010 is the year when the technology will enjoy acceptance by enterprises, according to Cherub Network CEO Brian J. McCarthy, whose company is big enough to host mainframes for some larger customers.
"Developers were the really early adopters of cloud computing," Mccarthy tells Channel Insider. "And 2009 was the foundational year where everyone was talking about the cloud. But I think next year will truly be a year for cloud to be embraced by enterprises."
But how does a managed provider looking to add cloud computing to the mix evaluate potential vendors? And why did Cherub Network make the choices it did in terms of platform?
McCarthy says he started exploring building his cloud storage service about a year ago, looking to build out an object-based storage platform that could scale on demand, delivering all the capabilities of network-attached storage (NAS) on demand. Cherub Networks wanted object-based storage because it would be easier for customers to use without custom code, APIs or any other development work.
Some large vendors such as EMC were exploring object-based storage, says McCarthy. But Cherub Networks ultimately went with a smaller vendor called iTGuardian. One of the reasons for the choice came down to the company's size.
"We had the ability to interact with iTGuardian at such a level [as] to see their road map," says McCarthy. "We found iTGuardian easy to work with and we had good access into the team."
McCarthy says he looked at storage area network (SAN) technology, but found it to be on the high end of pricing and didn't allow Cherub Networks to be competitive in the cloud.
"You could argue that you could deliver a lot of this with NAS, but it doesn't provide other benefits, like the ability to run our own code on the box," McCarthy says.
Other benefits included the ability to implement a multitenant environment and to connect to it with standard protocols. Back when Cherub Networks first began its evaluation a year ago, McCarthy says, iTGuardian was the only company that could "deliver cloud storage in a form that was easy to consume from anyone."
It also enabled parallel access, which helps when a file becomes "hot" or heavily accessed. Plus, it has enabled Cherub Networks to layer value-added services on top of the basic offering, such as virus protection and content delivery networks.
"Storage is a value-add service, not just files," McCarthy says. "This lets me do some pretty innovative things."
Cherub Networks went live with its storage cloud in April 2003 and formally announced it in June 2003.
To Learn more and how to do it Right, call: (800) 714-1455 or go to: http://www.cherubnetworks.com/availability.php
Cherub Networks LLC is well known for it's flagship product iTGuardian Managed Services which is designed exclusively as a managed or hosted solution to provide our customers with the most cost effective management of their IT infrastructure 24x7. Cherub Networks uses iTGuardian enterprise class technology helping you provide end-to-end monitoring and management of your IT infrastructure over the secured and encrypted Internet connection. This solution helps Cherub Networks deliver an unlimited range of unique managed services, providing extraordinary levels of performance and availability for you, our customer. iTGuardian Managed Services Benefits.
Office in Orlando Lake Mary Longwood Lakeland Tampa Daytona Beach Maitland St. Petersburg, Orlando, Hialeah, St. Augustine, Gainesville, Ocala, Palm Coast, Clearwater, Kissimmee, Lakeland, Maitland and Cape Canaveral MSP continuously monitoring healthcare network infrastructure Microsoft patch managing all critical systems Advanced Technology Service Hosting Hosted Data Center Exchanges Sharepoint SQL Event Log Application Backup Firewall Capacity Disk Space CDW Online Backup DR Replication De-Dup De-Dupe iSCSI SAN NAS GRID computing on demand storage Cloud We are well known for desktop, server and network monitoring, management, security online backup cloud computing storage archiving VoIP Hosting top 10 Virtualization HaaS SaaS Help desk 24x7 for small medium enterprise SMB SME employees IT as a service software hardware support onsite remote hosted exchange sharepoint fixed cost cutting solutions microsoft hp symantec spam barracuda anti-virus gartner magic quadrant robo soho GRID on demand ibm dell cdw low cost budget HaaS disaster recovery business continuity SaaS capacity cost per gigabyte firewall HaaS SaaS evault seagate iron mountain i365
Research firm Gartner predicts absenteeism rates of 40 per cent should the swine flu hit! Will you be ready? - September 1, 2009
Research firm Gartner predicts absenteeism rates of 40 per cent should the swine flu escalate futher. If an epidemic hits Florida, disaster recovery plans for many companies might not mean too much technology involvement, says experts
Just as companies plan for data duplication, they should also map out strategies for redundancies in staffing and supply sources, McCarthy said.
For instance, certain key functions should not be dependent on a single person. There should always be alternates adequately trained and prepared to takeover in case of emergencies.
Prior arrangements with temporary staffing agencies can also be helpful to fill in any unforeseen absences that could occur at a critical moment.
In the printing company I worked for, staff cross-training was put into high gear after SARS incident to make sure that all positions were covered in case of emergencies.
Alternative supply routes and suppliers will also help ensure that business operations continue despite disasters.
Companies must also have access to contact their employees either from home or remotely in the field, said McCarthy.
"Public transportation disruption or quarantines might prevent people from reporting in. Business must plan out arrangements for teleworking or other alternatives."
They key, he said, is reliable communication so that managers can relay information to employees or determine who can do what.
"Working from a remote location is an enabler that IT can help with but at the same time, that's not the only answer," according to Richard Cocchiara, chief technology officer for the business continuity and resiliency services of IBM Global Services.
If businesses want to prepare for a disaster, they should start by thinking about enabling their employees to work remotely, he said.
Apart from deploying technology, this initiative would include obtaining worker buy-in and training.
"We're talking about human capital here, so you're going to have to have the ability to track employees and track their ability to work," he said. Apart from ensuring communications within the company, business must also be in close contact with government agencies and perhaps even news agencies involved in the disaster, according to Darin Stahl, lead analyst with Info-Tech research group.
To Learn more and how to do it Right, call: (800) 714-1455 or go to: http://www.cherubnetworks.com/availability.php
Cherub Networks LLC is well known for it's flagship product iTGuardian Managed Services which is designed exclusively as a managed or hosted solution to provide our customers with the most cost effective management of their IT infrastructure 24x7. Cherub Networks uses iTGuardian enterprise class technology helping you provide end-to-end monitoring and management of your IT infrastructure over the secured and encrypted Internet connection. This solution helps Cherub Networks deliver an unlimited range of unique managed services, providing extraordinary levels of performance and availability for you, our customer. iTGuardian Managed Services Benefits.
Office in Orlando Lake Mary Longwood Lakeland Tampa Daytona Beach Maitland St. Petersburg, Orlando, Hialeah, St. Augustine, Gainesville, Ocala, Palm Coast, Clearwater, Kissimmee, Lakeland, Maitland and Cape Canaveral MSP continuously monitoring healthcare network infrastructure Microsoft patch managing all critical systems Advanced Technology Service Hosting Hosted Data Center Exchanges Sharepoint SQL Event Log Application Backup Firewall Capacity Disk Space CDW Online Backup DR Replication De-Dup De-Dupe iSCSI SAN NAS GRID computing on demand storage Cloud We are well known for desktop, server and network monitoring, management, security online backup cloud computing storage archiving VoIP Hosting top 10 Virtualization HaaS SaaS Help desk 24x7 for small medium enterprise SMB SME employees IT as a service software hardware support onsite remote hosted exchange sharepoint fixed cost cutting solutions microsoft hp symantec spam barracuda anti-virus gartner magic quadrant robo soho GRID on demand ibm dell cdw low cost budget HaaS disaster recovery business continuity SaaS capacity cost per gigabyte firewall HaaS SaaS evault seagate iron mountain i365
Will Swine flu and not hurricanes lead diaster recovery Top 10 agenda? - September 1, 2009
Hurricane Bill and Danny were barreling over the Atlantic threatening to flood data centers and new, potentially destructive computer viruses are always popping up, but, surprisingly, a real virus — swine flu — is taking shape as the biggest storm cloud on the horizon for disaster recovery specialists. In conversations with the major disaster recovery providers this week concern about the H1N1 influenza virus was running high. The big question is whether companies were sufficiently prepared for an outbreak among employees. For many companies, particularly smaller workplaces, even issues such as whether the company has the right to send a sick worker home can be confusing.
“The larger enterprise companies are beginning to take the H1N1 pandemic seriously and beginning to think about what they are going to do if 40% of their workforce gets sick this winter,” said Brian McCarthy, CEO of Cherub Networks, the Lake Mary, Florida-based provider that brings its EverReady Mobile Suite on-site in the event of a disaster or for testing purposes. “We are seeing a fairly significant increase in interest from those larger companies to have technology on schedule with us, so that if they sent 100 people home, we could ship them laptops, so they could work from home.”
Indeed, of the 41 recoveries Cherub Networks has done this year, seven have been for customer responses to the pandemic. One was in Miami and the rest were in the U.S.
“In the seven cases we’ve done so far, their pandemic plans said that if an employee is diagnosed with H1N1 virus, the company takes the 100 people that employee is closest to, whether in the adjacent cubicles or by contact in meetings, and all those people go home for up to two weeks, because the incubation is thought to be about 10 days,” he said.
Companies like Cherub Networks can supply laptops loaded with the technology employees need to do their jobs along with any equipment, like headsets.
Cherub is planning a series of webinars in September with avian flu expert John Lange to help its smaller member companies get ready for the expected upswing in swine flu cases this year. The emphasis will be on what companies can begin to do to protect their employees from the swine flu virus and how to handle cases, as they come up. Large companies with effective HR departments are typically well-prepared to deal with medical issues.
“You get to a small medium-sized company, that guy doesn’t even know if he has the legal right to send that worker home. They need help on how do they talk about H1N1 with their staff and encourage good practices,” McCarthy said. He said Cherub is spending a lot of time talking to customers about cross-training employees, so that more than one person knows how to perform a critical business function. “If they are right, a lot of people are going to be out sick.”
To Learn more and how to do it Right, call: (800) 714-1455 or go to: http://www.cherubnetworks.com/availability.php
Cherub Networks LLC is well known for it's flagship product iTGuardian Managed Services which is designed exclusively as a managed or hosted solution to provide our customers with the most cost effective management of their IT infrastructure 24x7. Cherub Networks uses iTGuardian enterprise class technology helping you provide end-to-end monitoring and management of your IT infrastructure over the secured and encrypted Internet connection. This solution helps Cherub Networks deliver an unlimited range of unique managed services, providing extraordinary levels of performance and availability for you, our customer. iTGuardian Managed Services Benefits.
Office in Orlando Lake Mary Longwood Lakeland Tampa Daytona Beach Maitland St. Petersburg, Orlando, Hialeah, St. Augustine, Gainesville, Ocala, Palm Coast, Clearwater, Kissimmee, Lakeland, Maitland and Cape Canaveral MSP continuously monitoring healthcare network infrastructure Microsoft patch managing all critical systems Advanced Technology Service Hosting Hosted Data Center Exchanges Sharepoint SQL Event Log Application Backup Firewall Capacity Disk Space CDW Online Backup DR Replication De-Dup De-Dupe iSCSI SAN NAS GRID computing on demand storage Cloud We are well known for desktop, server and network monitoring, management, security online backup cloud computing storage archiving VoIP Hosting top 10 Virtualization HaaS SaaS Help desk 24x7 for small medium enterprise SMB SME employees IT as a service software hardware support onsite remote hosted exchange sharepoint fixed cost cutting solutions microsoft hp symantec spam barracuda anti-virus gartner magic quadrant robo soho GRID on demand ibm dell cdw low cost budget HaaS disaster recovery business continuity SaaS capacity cost per gigabyte firewall HaaS SaaS evault seagate iron mountain i365