why managed services

What will my Business look like in 2013?

Break Fix Today, Managed Services Tomorrow

Mike ByrneDirector – Managed & Field Services Division Mike.byrne@quest.com

Introduction& Market Landscape

1

The Managed Services Landscape

Large Businesses (1,000+ Employees)

Medium-Sized Businesses (100-999 Employees)

Small Businesses (1-99 Employees)

• 200 M Employees (18% of Total)• $415 B IT Spending (43% of

Total)• 3 to 4% CAGR

• 200 M Employees (18% of Total) • $204 B IT Spending (22% of Total)• 8 to 9% CAGR

• 700 M Employees (64% of Total)

• $329 B IT Spending (35% of Total)

• 9 to 10% CAGR

45,000Firms (0.1%)

712,000Firms (1.1%)

65.7 MillionFirms

(98.9%)

Approximately 6% of SMBs are under “Management” Global

Small Busines

s Exceed

65 Million Firms

The Managed Services Landscape

A Hot Market Draws New Players

SMBCustomers

CHANNEL

Where the Real Revenue’s Lie

The Managed Services Landscape

Challenges:•Finding the time to create complex service offerings•What types of solutions to offer? •Defining internal initiatives•How to Build, Price Market & Sell Managed Services?

The Managed Services Landscape

Challenges (Continued):

•Keeping up with the competition

•Differentiating your services from the competition

•Finding the “Sweet Spot” pricing model and being able to demonstrate the value

• Anticipating what customers want

40% Additional Project

& Services

Revenue

The Managed Services Landscape, The Benefits!

Minimize Business ImpactAvoid downtown

during big events and

ensure employee productivity and critical business

systems

are not jeopardized.

Dramatically increase

your

Recurring revenue $

$$

8

Increased Utilization

rates

(50%)

Proactively

Monitor and get clear visibility into

network healthIncrease Up-sell

opportunities & Service

profits by (40%)

Economy of Scale

1 engineer can manage 125 unmanaged endpoints

With RMM, 1 engineer can manage 325

2Client based

Value

Proposition

Client Value Proposition

Reduced Mean Time to Resolution: When potential issues are uncovered, instant email and SMS alerts show the exact cause of the problem dramatically reducing the trouble shooting and diagnostic time

Peace of Mind: A well rounded

Managed Services Solution will flush out hidden or sleeping network issues

Uncover ‘Sleeping Issues’: Proactively alerts us on potential network issues

Expert Communication,

Guidance & Trust: The

Heartbeat reporting automatically informs your customers in an easy-to-understand regarding issues

that need to be fixed

Life Cycle MGMT: Addressing issues & fixing them

in real-time

Client Value Proposition

Customized SAL’s: Makes it easy for your

customers to check out an your capabilities

Guaranteed to Happen: Customers don’t have to worry about holidays, sick days, who owns the issue, staff

involvement

3MSP Selling

Points, Process

& Value Proposition

Why is the Network Slow?

From the user’s perspective performance issues are typically tied to the network …

“Argh, the network is so slow today!”

“Why is the network so slow? This is taking forever to load!”

“OMG! The Network is down AGAIN.”

Network Traffic Flow Analysis

Control the Mayhem

Prepareyour network with baseline and simulation testing

Minimize Business ImpactAvoid down time during big events and ensure employee productivity and

critical business systems are not jeopardized.

1ProactivelyMonitor and get clear visibility into network health

Performquick problem detection, diagnosis, and repair

2 3

15

Network Performance Monitoring & MGMT

• Automatically discover devices and get relevant data

• Easily create network maps for all of your locations

• Effectively setup proper conditions and thresholds

• Enable timely responses with Notifications and Alerts

• Proactively analyze traffic and identify bandwidth hogs

• Track response time, availability and uptime

Network Mapping

What doI need to collect?• Obvious

– Network traffic

• Not so obvious– Applications (source of network traffic)– Server performance data– Wireless– VoIP– Virtual Servers/Guest OS

• Even less obvious– Device configuration

What to Collect?

• Simple, single site network – easy

• Complex, multi-site network – not so fast

• Monitoring Architecture must adapt– Agent-based– Agentless

Architecture Impact

• SNMP– Gets– Traps

• WMI– Services, Processes, SQL, Exchange

• Flow technologies– NetFlow, sFlow, Jflow

• Log Files– Syslogs– Event Logs

Collection Methods

Dashboards – Health Check

4

Reality Check

Reality Check

A small business (SMB) today with $1 M in annual revenue generates $500 an

hour

For this example, let’s also say that SMB has 12 employee’s earning on average

$50K annually

That same Small Business generating $1 M in annual

revenue typically experiences on average any where from 200 to 600 hours

of downtime a month SKEPTICAL?

Reality Check

Again, for this example, the small business has 12 employees earning

$50K annually. $50,000 /2080 (yearly hours) = $24/HR

Employee’s helping employees with typical helpdesk issues

– 15 minutes (X 2) = 30 Minutes a day

Applications taking forever to load– 5 seconds X 12 staff X 60 instances a day = 60 minutes a Day

Staff surfing Facebook, YouTube, Dating Sites, Pandora etc…

– 1 HR a day 12 (number of Staff) = 12 Hours a day

3 items – 13.33 Hours a day

Reality Check: Where do we find those Hours?

Reality Check: Findings

With a 100% employee productivity loss, 13.33 HR’s X $24 = $319 a

day, $7,018 a MONTH in lost payroll ALONE! This doesn’t take into

consideration lost revenues based on how each staff effects the $1 M

in annual revenueStill SKEPTICAL?

Typical SMB Downtime Timeline

Internal IT Staff vs. Our Solution• Entry level IT Staff (JR)

o $35,000 to $50,000 per year – ($2,917 to $4,167 monthly)o Typical engagement between 12 to 18 monthso 1 technical skill seto Retention & Turnover and training challenges

• Experienced IT Staff (SR)o $40,000 to $75,000 per year – ($3,334 to $6,250 monthly)o Typical engagement between 2 to 5 yearso 1 technical skill seto Retention & Turnover and training challenges

With our solution, you’ll benefit from the combined 35 years of experience supporting customers just like you.

We also bring enterprise class tools to the network MGMT table to ensure your network is being supported to the best of our ability. You get all this without the burden of an IT salary.

Plus, Most Small business today don’t know what to look for when hiring, motivating and training IT Staff

Our Solution does not show up late for work…. and doesn’t take vacations !

Internal IT VS Outsourcing?

Thank you for your time!For more information please visitwww.packettrap.com

Break Fix Today, Managed Services Tomorrow

• Mike ByrneDirector – Managed & Field Services Division

• Mike.byrne@quest.com