|
Outsourcing application and web initiatives is a critical part of business expansion
According to analysts at IDC, corporate spending on Web initiatives will increase to $282.5 billion by 2003, nearly doubling year 2000 expenditures. Thus, we are now entering the second Internet revolution, the e-business revolution. Companies are no longer spending thousands of dollars building Web sites to serve as on-line brochures. Instead, they are applying Web technology for integral business functions, business process deconstruction, and supply chain integration...today’s e-commerce.
Why Outsource Your Data Centre Requirements?
IDC analysts noted that the year 2000 was the first time corporate spending on ISP and Web hosting services exceeded spending on Web-related IT hardware, suggesting a greater willingness of companies to outsource their Web presence.
Competitive circumstances are forcing businesses into an enterprise infrastructure that is online 24 x 7 x 365 days a year. Automation techniques are becoming critical to the success of the business. Performance and Event monitoring and storage and network management are key components that must be automated. That automation is more cost effectively and promptly implemented by outsourcing the management of the company’s network. The advantages of outsourcing your systems and management to a third party provider are several: investments for infrastructure build-out are considerably less; additional staffing requirements are minimal; service offerings can be expanded overnight; and the headaches of site maintenance and support are handled by the MSP.
Overcoming IT Management Concerns
Traditionally, IT managers have been reluctant to give up control of their infrastructure and management solution to a third party, due to security and data access concerns. However, today’s full service MSP provides an integrated infrastructure and management solution that exceeds the capabilities afforded by many small and midsize companies. And MSPs can provide a stepped-approach to implementation that begins right at the customer site.
MSPs monitor the company’s network, systems and applications; and then provide customer access to management information via a single secure Web portal. Regularly scheduled utilisation reports identify potential problems before they affect network performance, and they aid in network trend analysis and benchmarking. Additional tools provide security scans to identify vulnerabilities on the network.
The ability to implement the MSP model at an average price of $4,000 to $6,000 per month is far more cost effective than investing one-half to one million dollars annually on additional applications, staff, and regular upgrades. As companies gain confidence in the MSP model they are more likely to outsource and place full care of their infrastructure and operations into the hands of the MSP Partner.
Insure with a Service Level Agreement
For companies that intend to use the Internet as an outsourcing platform, seeking adequate legal protection to safeguard their data is vital. Companies should attempt to limit their liability by contractually binding the third party to specific performance obligations in a Service Level Agreement (SLA).
An effective SLA should include provisions to protect the customer’s sensitive data and guarantee a level of service. Many standard SLAs guarantee security, system availability, bandwidth, system performance, and indemnification provisions. The SLA should clearly define the responsibilities of each party and protect the customer from non-performance by the third party; including the possibility of the third party going out of business.
What Type of Companies are Outsourcing?
There is ever-present pressure to deploy robust and scalable business-to-business solutions as rapidly as possible, and on a global scale. Companies around the world are seeking experienced and profitable MSPs to oversee their data and Internet services in the United States (USA). The most common business requirements include: companies outside the USA that must locate closer to their USA customers in order to provide the mandated speed and quality of service; companies outside the USA that choose to open facilities inside the USA so they can begin to sell their products/services; small to midsize companies in the USA that need to decrease their web and data operations costs and improve their time-to-market. Studies have shown that a company can save up to 62% per year on recurring IT costs by outsourcing their data centre to a managed services provider. With IT and communications facilities in safe, secure hands, companies are able to focus on their core business and gain faster access to their markets.
Turn to Colo Solutions
Colo Solutions is the leading provider of managed services and colocation solutions in tier-2 and tier-3 cities across the United States. The company has held the position of leader over the past several years because of its personalised customer service, numerous facilities in prime business locations, and continued profitability and growth. Global companies can be assured that their investment in establishing data and web operations in a Colo Solutions facility is safe and secure for the long term.
 Top of Page
|
