Demand for Lean, Green Business Technology

According to a recent market study by Datamonitor, the current global economic recession may also prove to be a significant driver for Green Computing. Their market assessment raises lots of questions -- including, is it better for the world, and overall business profitability, if executives cut-back on their IT investments?

"The global economic recession has spurred a paradigm shift in the way organizations evaluate, budget for and deploy green IT," says Rhonda Ascierto, senior analyst at Datamonitor. "The downturn has also resulted in green IT trends for datacenters, client devices and asset lifecycle management, as well as re-shaped return on investment (ROI) models."

Datamonitor believes green IT that's intended to eliminate the need for capital expenditure -- such as datacenter virtualization, facility design and asset lifecycle management -- has become very important, especially as IT budgets are trimmed.

Lean and Green in 2009
Their research uncovered that lean IT budgets will likely be the norm in 2009, and that organizations will predominately seek green IT solutions because they're cost-effective. This represents a significant market trend, in their opinion.

Green ROI models are becoming compulsory and shorter. In order for green IT vendors to satisfy these new ROI requirements, they're being forced to develop more efficient solutions. However, when it comes to new IT equipment investments, if "less" is more, then "none" can be even better.

Business technology budget constraints force CIOs and IT managers to think beyond legacy approaches to a current problem. As a result, organizations that face critical datacenter limitations are already considering alternatives to building new datacenters or upgrading existing facilities.

Alternatives to IT Capital Investment
Those alternatives include IT leasing, managed services, virtualization software, cloud computing and software-as-a-service (SaaS). Datamonitor believes datacenter resources will increasingly be hosted in a cloud-based environment, which should -- at least theoretically, they say -- fall under the green IT banner.

Clearly, it really doesn't matter what you call your own concerted plan to reduce and contain operating expenses -- in contrast, what matters most is that you take appropriate action now.

Perhaps you're still wondering if the selective out-tasking of business technology is something that your executive team should act upon. If so, you might consider also reading the recent editorial in a mainstream business magazine entitled "The IT Companies Shouldn't Buy" and then ask yourself some of the same fundamental questions about your own business strategy.

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Managed IT Services Buyer's Guide - part 3

Here are the final three questions from our ten-point Q&A that's designed to help guide your procurement process. Part 1 included the first three managed and hosting service buyer's guide questions and Part 2 had the next four questions.

8. What are the type and scope of management capabilities that you routinely offer?

• Request a list of capabilities and associated benefits, relative to your needs.
• Historical reporting is essential, forward-looking insight is valuable.
  

Examples of typical basic management tools include a service desk and management of various activities including assets, configuration, fault, change, release/update, performance, capacity reporting and planning, and trend reporting with recommendations.

9. If required, how will you support existing or acquired IT/networking infrastructure?

• Service providers may have policies that limit the device types they support.
• In addition, some providers only support devices they install and configure.
  

If you are like many managed service users, then you have an environment where a combination of self-managed and out-tasked infrastructure will need to coexist -- at some point in time. Service providers should be able to delineate how their role and responsibilities start and end in a multifaceted scenario. Likewise, they should explain their role in the event that they are asked to operate in a multi-vendor or multi-service provider environment.

10. How do you price and deliver professional services, beyond the scope of the managed service?

• Examples of advice, support, and guidance should be included as standard.
• Ask for non-standard consultation examples, and associated fee structure.
  

There will likely come a time when you will ask your service provider to perform an activity that is beyond the scope of your managed service agreement. You should anticipate this event by asking the service provider what constitutes routine (non-billed) information and guidance, and in contrast what is the fee structure for time and materials work -- or other billable activity.

In Summary
Managed services have a long and successful history of helping businesses like yours to reap the full benefits of IT and networking technology capabilities -- without the drudgery and distraction of the ongoing equipment operation, management, maintenance, and perpetual updates or enhancements.

You can download the complete checklist "How to Select a Best-Fit Managed Service Provider" as a .pdf document.

Also, the "Managed versus In-House Service Comparison Calculator" may help you build an internal business case. This build vs. buy expense comparison tool should only be used for basic estimates. We recommend that you consult a managed service provider to obtain an accurate comparison, based upon your actual requirements.

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