Managed Services Enabled Strategic Focus of IT Resources, Part II

As noted in Part I, global sensor manufacturer Measurement Specialties Inc. (MSI) faced multiple challenges with its managed network services provider. It suffered from excessive downtime, and the team of IS/IT director Bob Andreini spent too much time solving problems that were the responsibilities of their provider.

Andreini brought in Virtela, a Greenwood Village, Colo.-based managed network services provider that works with multiple vendors of networking equipment, including Cisco. It devised a mesh network using Multi-Protocol Label Switching (MPLS) technology that eliminated the point-to-point problems that plagued MSI previously.

He describes it as a seamless network with multiple subnetworks, "almost like a black box. Someone in Fremont, Calif., can send something to our site in Shenzen, China via the most logical route over the network."

Automatic Backup
At the same time, MSI's downtime has disappeared. Virtela set up a back-up DSL circuit at each of MSI's sites, so that if anything does go wrong, the back-ups kick in automatically. "We can't even tell when it happens," says Andreini. "Usually we only find out after we get notification from Virtela's operations center." The cost of the DSL lines is only a couple hundred dollars a month, and he estimates that MSI now enjoys more than 99% reliability.

Even with his difficult experience, Andreini was still sold on outsourcing his network services. "I didn't want to beef up on network engineers internally, because that technology is so complex. Having a partner that could take care of that was very attractive."

Dramatic Time Savings
Having a managed network services provider also gives Andreini "dramatic time savings. When every event took two days of firefighting, we were unproductive in other projects. It was very disruptive, and took the equivalent of at least two full-time people. Having a managed network services provider means I can have my staff focus on the strategic IT needs of the business, not running the infrastructure."

The moral of the story is that it's important to look closely at your managed services provider. Don't look just at their services, but at their business model and their telecom relationships. Determine how their plans suit your company, and your plans for your company's growth. As MSI found, it was able to shift from an unsatisfactory provider to a satisfactory one and reap the benefit of reliability.

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Managed Service Nightmare - Lessons Learned, Part I

By any measure, Bob Andreini's network was a nightmare. Even though he had outsourced the management of the network, downtime was measured in days. His team regularly mediated finger-pointing between international telecom providers. Even the configuration of his infrastructure left a lot to be desired.

Andreini, the global director of IS and IT at Measurement Specialties Inc., a $200 million manufacturer of sensors with 12 locations around the world, knew something had to change.

His company had grown through acquisition, adding sites in locations in Galway, Ireland; Versailles, France; Dortmund, Germany; and Bevaix, Switzerland, a village of 3,500 outside of Neuchatel. But this growth also meant an increasing patchwork of network connections.

Reliability was a challenge, especially with an IT staff of 35 and only ten of those people devoted to the infrastructure -- able to work only part-time on this key task.

Downtime Here Meant Downtime There
A hub-and-spoke infrastructure meant that all communications went through MSI's corporate headquarters in Hampton, Va., some by point-to-point connections, others through VPNs. "If we had trouble in Hampton, we had trouble across the whole network," says Andreini.

Part of the problem, he admits, came from the telecom provider's own growth problems. It didn't always have the best relationship with telecommunications providers in the countries where MSI did business.

"We ended up with higher communications costs, because they couldn't get good resell rates." And because it didn't have good relationships, where there were problems, there was a lot of finger-pointing. "We would eventually have to have our IT people figure out the problem," sighs Andreini. Then the guilty party would admit it was their problem, sometimes as much as two days later.

Unmanaged Services
Some of Andreini's team even had to spend time learning about Cisco router configurations because their provider, which was supposed to be providing maintenance, had outsourced it to yet another company.

Solving MSI's network management problems took multiple steps, including signing on with another vendor of managed network services. MSI worked with the new company, Virtela, a Greenwood Village, Colo.-based company, and its team to create a new infrastructure. Together they took a close look at what kind of infrastructure would serve the global firm best.

In part II: how MSI solved its managed service problems.

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Managed Service Enables Secure Delivery of Intellectual Property

In a global economy, professional services firms must differentiate themselves from their competition in increasingly creative ways. Rockwell Technology Group, a Grand Rapids, Mich.-based software development firm, serves customers across the U.S. Midwest and Canada, including manufacturers, insurance companies, and management services.

Because its customers are widespread, it needed to come up with a way to quickly and securely deliver software updates and patches for systems it had developed. As a way to save both time and money, it uses WebEx Workspace, a hosted extranet service, to post the results of its work for download by customers.

The alternative would be to burn the software onto a CD or DVD and either have it delivered by hand or shipped overnight. But by using WebEx Workspace, Rockwell garners several advantages.

Saving Time, Increasing Security
One advantage is that the software updates, which may be necessary to make a business process more efficient, are immediately available to customers. "As soon as our developers have new custom software ready for delivery, I can call the customer and say, 'download it and you're good to go," says Mark Laws, Rockwell Technology Group's chief operating officer. Rockwell doesn't have to send someone to the customer to install the software.

Rockwell's customers also appreciate the increased security. WebEx Workspace uses the Secure Sockets Layer (SSL) protocol to ensure protection during transmission, and Rockwell posts software updates in a password-protected folder accessible only to that customer.

Hosted Collaboration Brings Internal Advantages
Rockwell also uses the collaborative workspace internally as well, which helps the company update team members about customer projects.

It stores project-related documents in the hosted Document Manager; it uses the Discussion Forums to carry on impromptu online chats, which are then maintained for later access by other team members; and it maintains schedules and to-do lists using other Workspace capabilities.

Even though Rockwell could just as easily deploy collaborative software internally, it prefers to use WebEx Workspace because of its capacity and convenience. "We have millions of gigabytes stored on the WebEx Workspace," says Laws. "If one of our computers crashes, we don't have to worry about losing any data. We just go to another computer."

If you need to share sensitive information securely, and don’t want to worry about maintaining an extensive infrastructure, asking a managed services provider to set up a collaborative workspace can help you focus on serving your customers more productively.

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Unified Communications Helps Law Firm Serve Clients

A professional education trains someone to be a lawyer, doctor, or accountant, but it rarely teaches them how to run a business practice – that's typically learned from experience. Ken Wolfe is a worker's compensation lawyer in Chicago with 25 years experience.

When he hung out his own shingle, he realized that in addition to being a lawyer, he was now managing his own business operations.

Among other things, that meant making decisions about choosing the best telephone system for his business needs. Wolfe thought he was playing it safe by setting up his operation with phone and Internet service from a leading telecommunications provider, using traditional technology.

But before long, he realized he missed many of the services that had been available at his previous firm, which had used Geckotech's hosted IP-based phone system. Lesson learned, he switched providers after a year.

Hosted System Brings Voice and Data Together
Because the replacement phone system was hosted, Wolfe no longer had to worry about leasing, managing, or maintaining the phone system. Because it was IP-based, his firm was able to take advantage of capabilities that integrated voice and data together.

For instance, his employees could easily forward calls to a different number, such as a home phone or cell phone if they expected an important call from a client – they could also route less crucial calls to voice mail if they arrived after hours.

Because Geckotech offers a variety of reports regarding phone services, Wolfe Law could track length of calls by client, which made professional services billing simpler. It could also track outbound calls by employee, inbound calls, and call length, among other metrics. It was also easy to add new employees to the system, simply by plugging in a new IP phone.

Increased Productivity, More Control
Wolfe Law also benefits from Geckotech's 24-hour support from a local help desk, a dependable monthly bill from one service provider, and built in disaster-recovery.

As Wolfe says, "In my practice, phone calls are extremely important, but they also can be the bane of my existence. Geckotech helps me keep them manageable and under control. I cannot imagine running my practice without it."

When it comes to telephone service, bigger is not always better. Sometimes smaller firms using IP-based hosted services, like Geckotech, can offer more creative ways to help businesses to not only track their communications expense, but gain valuable business insight from that data. Think about what kind of data you might be able to glean from your telecommunications system.

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When Selecting a Qualified MSP, Assume Nothing

Hiring a managed services provider shouldn't be a leap-of-faith decision-making process. Perhaps you have staff that could fulfill their responsibilities, but instead you entrust a key component of your IT infrastructure to another company.

You believe they can do the job better and more efficiently. However, is that belief proven to be justified?

This begs another question: who licenses or certifies a managed service provider?

The topic came onto our radar thanks to a handful of companies claiming SAS 70 certification. The SAS 70 standard was developed by the American Institute of Certified Public Accountants (AICPA) to govern service organizations. (SAS stands for statement of auditing standards; see the AICPA page relating to auditing standards for more information.)

Certification's Real Meaning
You may assume that a managed service provider claiming SAS 70 certification has submitted itself to rigorous tests relating to its internal processes. However, according to Judith Sherinsky, technical manager of audit and attest standards at the AICPA: "There is no such thing as SAS 70 certification."

Sherinsky says that undergoing a SAS 70 audit only results in what she calls a "restricted use report," one intended to help auditors at the customer determine the reliability of transaction processing at the managed service provider.

For such a report to be useful to a customer, it must have meaningful context. "If the service provider organization provides several services, the report is useless if it doesn't cover the services the customer is interested in," she says.

Let's be clear: any MSP willing to undergo an audit is good for the industry, and helpful for the buyer. I'm merely highlighting the need for due diligence.

We'll return to this topic, both to keep you updated on what we learn about other standards and certifications (for instance, the ISO/IEC 20000 standard for service providers, and the MSPAlliance Accreditation program).

Attestation vs. Certification
In fact, Sherinsky suggests that customers of managed service providers check out the AICPA's attestation standards. These encompass a review of engagements that are the responsibility of "another party," that is, a service provider. An attestation report covers the processes between two parties, while an SAS 70 report covers processes internal to a service provider.

When your service provider claims certification under certain standards, don't take them at face value. Ask them exactly what it means, and how it's relevant to your relationship.

Any "seal of approval" is only of value in the procurement process when you have a sense of how stringent the benchmark requirements are, and whether they apply to your specific needs.

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