Is(n't) it Time for Hosted IT Service Management?

Hosted solutions make a lot of sense for smaller companies. We followed the hosting model when developing our desktop video conferencing service. It is a low cost method for our users to have video capability without having to purchase expensive hardware. The same benefits apply to the variety of hosted IT services in the market.

We used hosted IT Service Management with several businesses with great success. Done right and using the right hosted application can work and create a great customer experience.
James

Full disclosure - Online Tech (http://www.onlinetech.com) is a Managed Data Center Operator offering SAS-70 Colocation and Managed Servers.

Hosted IT Management can mean different things to different people. Rather than discuss 2 separate options – managed dedicated servers OR colocation, I prefer to think of hosted IT as a spectrum of options.

On one end of the spectrum is raw colocation - where the client gets power, network, and rack space – and they manage their own IT infrastructure.

On the other end is a completely managed (dedicated) server – where the server is delivered as a turnkey solution – fully managed – for a simple monthly fee.

And in between is a set of options that IT managers can choose – including hands and eyes, managed backup, monitoring services, or fully managed colocated servers. The later provides the same level of support as a managed dedicated server, except the hardware is owned by the client.

The further along this spectrum that you move towards fully managed servers, the higher leverage you get on the hosting provider’s expertise and the lower the overall cost if IT management. Because the expertise and infrastructure is shared across thousands of servers in the managed data center, the data center operator can offer server management far more cost effectively than most companies can do internally.

Remote Infrastructurer Mangement Services (RIM) would ideal to opt for SMB & Enterprise Customers.

We follow the ITIL V3 based Remote Management Services as well as on site.

This is a cost effective services whrein our NOC is shared between the data centres & end users.

The question of whether a hosted solution is right for your IT organization is really dependent upon your needs and goals (and in some cases your vertical). The IT Service Desk will continue to remain an imperative function within any enterprise due to the fact that the organization relies on the service provided by IT. I believe hosted, or SaaS, delivered applications will only provide the IT team with the ability to devote resources to projects that directly contribute to the enterprise instead of programming and maintaining an application. In addition, the cost benefits are now being recognized due to the removal in in-house infrastructure, no-cost non-disruptive upgrades and zero maintenance and support costs. I will add, however, that HP and Service-Now follow different models. HP is delivering their solutions as an ASP whereas SN.com is a SaaS. While HP customers may face upgrades in the future and the threat of the application sunsetting (HP SD is right now), IT organizations who have adopted true SaaS delivered applications, will continue to reap the benefits, not have to worry about unforeseen upgrades or their application 'going away' and not having support.

The answer we focus our business on is a product called NetSuite, which is a web based software as a service solution covering the following areas: CRM (sales force automation, customer support, marketing), ERP (including inventory management, project management & accounting), and eCommerce. We have been a NetSuite reseller and implementation partner for 3 1/2 years and migrated this direction after getting frustrated with the various on-premise apps that Microsoft and Sage offer (we were previously reseller partners in these channels for 12 years).

NetSuite has a strong value proposition as enumerated below:
* CRM / ERP / eCommerce / Portals built in for customers, partners, vendors and limited use employee users - what other solution covers all these areas in one product for the small to medium sized business??
* The infrastructure of the application is hosted and managed by NetSuite, a public company since 2007 w/ approximately 6,500 customers worldwide now
* Disaster recovery is built in with the application - you can continue to manage your critical business systems with an internet connection
* End to End integrated business processes can be achieved for your business in ONE solution without having to integrate multiple systems
* Visibility for the business is exceptional - real-time dashboards and reporting are customizable by employee or employee role
* The ability to tailor the application to the business is exceptional. More importantly the tailoring of fields, forms, reports etc... that may be done are not lost and rarely if ever need rework during upgrades
* A small to med. sized business can run the system without an IT professional. A power user type is extermely helpful to understand tailoring the system and doing adminstrative functions - but no need for traditional IT or DBA resources.
* Integrations can still achieved if required - web services methods of integration are fully supported as well as other methods

Software as a Services (SaaS) is here to stay and allows for small to med. sized businesses to compete at a higher level while controlling cost and maintenance levels required of on premise systems. It was a little slower going when we started trying to explain the benefits to prospective customers, but in recent years that % of companies that don't get understand the benefits is on a steady decrease.