#managedcloud

What are managed services?

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As the world around us changes, so do the terms we use to describe things that have been around for decades.  This phenomenon is very noticeable in the political arena with the advent of changing terms to be “politically correct”.  I’m not going anywhere near political topics in this blog, but you get the point.

Terms are also changed in the business world, often by someone in marketing trying to put a new spin on an otherwise old subject.  One prominent example today is the cloud.  Cloud can mean a lot of different things to different people, but the basic definition is moving computer systems or software applications outside of your office or home into an offsite datacenter or datacenters.  Anyone using iCloud to store their photos or music is using the cloud.  However, cloud hosting is nothing new.  Software and systems have been housed offsite in datacenters for years.  In the 1980’s and 1990’s this type of service was often referred to as ‘offsite hosting’, ‘colocation’ or simply ‘hosted services’. 

Like cloud, managed services have been around for decades with different names.  Today, an entire industry has been built around managed services.  The companies who provide managed services are called Managed Service Providers or MSP’s.  Managed Service Provider is most often used in the technology industry.  Gartner* defines Managed Service Provider as the following:


A managed service provider (MSP) delivers services, such as network, application, infrastructure and security, via ongoing and regular support and active administration on customers’ premises, in their MSP’s data center (hosting), or in a third-party data center. MSPs may deliver their own native services in conjunction with other providers’ services (for example, a security MSP providing sys admin on top of a third-party cloud IaaS). Pure-play MSPs focus on one vendor or technology, usually their own core offerings. Many MSPs include services from other types of providers. The term MSP traditionally was applied to infrastructure or device-centric types of services but has expanded to include any continuous, regular management, maintenance and support.


As usual in our field, the definition includes an overabundance of techno babble.  In a more generic sense, the definition of managed services is using a third-party company to provide a business process or service traditionally performed within the company using company employees and resources.

Managed service companies make money by charging monthly fees for the services they provide with the intent of providing a stable and predictable cost that can be budgeted for by the customer.  This is the “continuous, regular management, maintenance and support” in the Gartner definition.  In most cases, the monthly cost of managed services is far less and at a higher quality than attempting to hire and operate internally.

Before managed services, outsourcing, fractional services, and consulting were common synonyms used to define the service.  In my opinion, over time, primarily due to a small percentage of poor-quality providers, outsourcing and consulting were cast in a negative light with lower quality results and higher costs.  The industry needed to distance from the negativity and managed service provider was born.

However, managed services come with its own challenges.  It can be very nebulous and generic to many in the business world. 

At its core, managed services are about taking a business process or portion of a business process and hiring an external firm to provide those services and do so with higher quality, typically at a lower cost when compared to hiring a team of employees to do it internally.

Although Managed Services and Managed Service Provider are often attributable to the technology industry, the concept applies to the entire professional services industry.  Each of these services can be aligned to a business process needed by any company running a business.  The amount of ongoing need for a service is dictated by the type and size of the business itself.  Although many have not embraced using the managed services moniker for their services, the concepts are the same.  Some common groups of managed service providers include:

  1. Accounting

  2. Legal

  3. Marketing

  4. Advertising

  5. Human Resources (HR)

  6. Information Technology (IT)

Each group can have many specialty services within them.  Customers may have the option to choose the type and amount of managed service they need for their business.  Using the example above:

  1. Accounting

    1. CFO services

    2. CPA services

    3. Bookkeeping

    4. Month end close and reporting

    5. Accounts payable

    6. Accounts receivable

  2. Legal

    1. Contract creation

    2. Intellectual property

    3. Employee disputes

  3. Marketing

    1. Collateral creation

    2. Logo design

    3. Website design

    4. Writing copy

  4. Advertising

    1. Ad creation

    2. Ad purchasing

  5. Human Resources (HR)

    1. New hire processes

    2. Termination processes

    3. Payroll services

  6. Information Technology (IT)

    1. Helpdesk services

    2. Network management

    3. Systems and services management

    4. Security

    5. Cloud management

The customer has the choice to choose what service and amount is right for their business.  As a company that has provided technology services for the past 20 years, we have seen the ‘preferred’ terminology for what we do change from consulting to outsourcing to managed services.

At Fluid, our Managed Service Provider offering means we take over the day-to-day and ongoing technology needs of our clients, including managing their other vendors (often a pain point).  It is an all-inclusive plan purposely designed to alleviate the risk, stress, and pressure related to managing technology. 

From our clients perspective, our MSP plans simply means someone else is handling all their technology needs and they can focus on running their business.  Our clients also know we will proactively keep them secure and provide advisory services to help ensure technology is being used to maximize productivity and align to their company business objectives.  In reality, we strive to help the company use technology to grow and make more money.

Whether its unlimited helpdesk support with excellent service and response time or complicated migrations of systems to the cloud, we have a relationship built on trust that allows our clients to lean on us while they run the business.  We manage their technology operations top to bottom as if we were an employee.

Our most important metric we measure in relationship to our clients is client satisfaction.  If our clients aren’t 100% satisfied in the service we provide, regardless of the type of task, we are letting them down.

Managed Services can be a very powerful tool when understood and used properly to enhance any company’s business.  If you want to learn more about Fluid’s managed service offering give us a ring or click here!

 

* Source: Gartner IT Glossary https://www.gartner.com/it-glossary/msp-management-service-provider

Understanding the Cloud

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In 2019 you would think the business community would have a good understanding of cloud computing. Reality is much different.  As I speak with business owners, management, and users, the “cloud” is still a nebulous concept more than a solution.  It’s certainly not understood well enough to know how to maximize the value of the cloud based on specific business use cases.  This knowledge gap is a source of business risk as well as lost potential business value.

I’ve written many blogs on cloud computing the past 5 + years and “hosted servers and software”, the stepping stone to the cloud, prior to that.  We have learned a great deal during that time, but one constant remains – there is always more to learn because the technology changes so rapidly.

At Fluid, we have a “cloud first” philosophy where any solutions kept on premise in the office requires a valid business case; a 180 degree change in philosophy from 7 to 8 years ago.  Today, it’s not just about determining if the cloud is a good fit, it’s about selecting the best type of cloud solution with the most optimal deployment.  This requires a deep technical understanding of cloud solutions, well beyond the glossy sales brochures.  Just keeping up with current technology is a full-time job, add the need to understand new disruptive technologies and how they impact the value proposition and you quickly realize it takes a disciplined commitment and process involving many people with varying skill sets.

The barrage of marketing buzzwords around cloud attempting to clarify things actually add to the confusion – public cloud, private cloud, hybrid cloud, software-as-a-service, platform-as-a-service, infrastructure-as-a-service, cloud disaster recovery; the list goes on.

To simplify things, let’s look at a few types.  These definitions and descriptions can be scrutinized and argued among vendors, experts and engineers, but that is not the audience.  The ones needing the most help in understanding the cloud are the business buyers and users.

Public Cloud

These are the big ‘logo’ guys: Microsoft Azure, Amazon AWS, Google Cloud, etc.  These companies, as you would expect, have behemoth cloud infrastructures and solutions that literally span the globe.  These are typically shared environments that are highly complex requiring senior engineers and architects to properly design and deploy.  Their sheer size can provide benefits in cost and deployment with geographical flexibility.  Each have their own rules to abide by.

Private Cloud

These are typically smaller players that have their own cloud infrastructure in smaller geographical areas.  The advantage of private clouds is greater flexibility and control.  Because they aren’t aligned to the major public cloud companies, which are also ‘product’ companies, they have the ability to host solutions that may not be a good fit for the public cloud.  In addition, some companies prefer the private aspect of knowing more about where their information is stored, how it’s managed and, in many cases, more secure.

Hybrid Cloud

The hybrid cloud is just that, a hybrid that utilize more than one solution.  This can include hosting components in the public cloud and others in the private cloud.  It can also be a mix of hosting some solutions onsite with others in the public or private cloud.  Hybrid cloud solutions are typically very ‘business use case’ specific.  For example, an engineering company with very high processing requirements for CAD drawings may use solutions on premise and back up the data to a private or public cloud.

Software-as-a-service (SaaS) should also be mentioned because a vast majority of companies use SaaS solutions alongside others.  For example, if using Dropbox for file sharing and hosting accounting systems in Microsoft Azure is using SaaS for Dropbox and public cloud for the accounting system.

Licensing is a beast!

Invariably, when companies evaluate cloud solutions they focus primarily on the core of the solutions: what will run in the cloud, how much processing power do we need, how much storage is required, how can remote users access it easily from anywhere.  What is often glossed over is the software licensing requirements.  Abusing software licensing rules even unintentionally is not something to take trivially.  The volumes of rules, requirements, and options is literally a wormhole requiring multiple jobs in itself. 

Be wary the sales rep that says licensing is ‘all included’ or ‘nothing to worry about’.  The costs associated with licensing can double the cost of a cloud solution and more if not done properly.  Every software solution has licensing rules and regulations, many of which are specific to usage not just in the cloud but the type of cloud. 

We have a half dozen different licensing programs and certifications just to cover Microsoft licensing in the cloud.  Just multiply that by the number of software providers and it’s a book no one wants to read.  But someone must read it and understand how to weave all the various licensing options into the blanket that best covers your business.  Make sure your provider understands licensing and make sure you understand licensing enough to be comfortable your business is properly covered.  It’s too good to be true is a cautionary motto to follow.

As I was writing this blog, I received an email from a cloud customer, who is the business owner of a food manufacturing business.  In his email, he forwarded dialog with his ‘local tech provider’ questioning every aspect of the cloud setup, software licensing, etc.  It was clear the customer provided the invoice detail to the tech to be a second set of eyes to confirm he had a good solution, which is never a problem.  Transparency with customers should always be the standard protocol.  Interestingly, every line item the tech questioned and provided feedback on was incorrect.  If the end customer followed this advice they would be woefully non-compliant and given dangerously bad information.  This exchange of information proves the entire point of this blog.  Even technical people providing advice don’t understand the cloud technologies with dire consequences. 

Choosing the wrong provider and partner can be disastrous to the business.

The challenges businesses face today is not if a cloud solution will be a good fit but finding the expertise to determine the best solutions available to the business and, more importantly, the ability to execute and implement the solutions.  There are hundreds if not thousands of IT companies, managed service providers (MSPs), etc. happy to sell cloud solutions without the in-house knowledge required to design, implement and support the services properly. 

The problem is exacerbated because the typical business ‘buyer’ does not have the knowledge to ask the right questions to confirm the ‘seller’ has the skills required to meet business needs.  Migrating to the cloud is not an easy task, regardless of what the sales pitch says.  A vendor skilled in doing migrations will have a defined, disciplined migration process and experience to make the migration as painless as possible.  Every flawless plan has unexpected issues to be addressed.  This is where your vendor earns their keep.  If the vendor doesn’t have migration experience and skills, the wheels can shoot off well beyond frustration and become a major disruption to the business with outages and downtime.

Public cloud is… well, public.  So what?

Microsoft Azure publishes its cloud pricing to the public, as well as a “pricing calculator” to use to estimate potential cloud costs.  Easy right?!  Think again.  You must know this stuff at so many deep technical levels and layers it will make the most tech savvy run for the hills.  As a Microsoft Cloud Solution Provider (CSP) we have dozens of “portals” we must navigate just to manage our customers Azure and Office365 accounts and environments, and we are the experts.  This scenario plays out for the other 800 pound gorillas as well.

Proceed with caution… it’s one thing to sell, quite another to advise, implement and support

What is the real implication?  The cloud has come a long way and continues to improve with better tools, automation, and solutions.  But notice I did not say support.  One major lagging necessity is good (not even great) support from cloud providers.  Every cloud provider will require you purchase support, even if it’s buried in the pricing.  What they don’t tell you is the quality of the support.  It’s only when you make that initial call for support that you realize it’s going to be very long day.  Again, this stems from a lack of skills and experience to deliver on both the technical side of the house and customer service.

It is very disheartening to witness how these powerful technologies can improve and enable business only to be poorly understood by those who position themselves as experts to support it.

No one becomes a cloud expert overnight.

We have invested over 10 years of countless hours, millions of dollars, and hundreds of deployments in the cloud.  It wasn’t and isn’t easy to do. It requires a different level of commitment I’m sorry to see many in our business not obligate themselves to.  We owe it to all those we serve not only to understand the technologies, but educate in business terms the value, the many options, and ultimately find the right solution for the situation.  There is an entire segment of business soured on the idea of the cloud because of poor advice, execution, and support.  I only hope with the right partner they can find their way back to today’s possibilities.  Cloud is definitely not a fit for everyone and never will be, but it shouldn’t be swept off the table because we didn’t do our jobs.