5 Things You Need to Know About the “Fixed Rate” IT Support Plans!

What is a “Fixed Rate” IT Support Model?

A “Fixed Rate” IT support program provides an unlimited number of tickets per month for all the equipment listed under the scope of the contract.  This plan is the most commonly used IT support plan among all Managed Service Providers (MSP). Primarily because it is easy to bill and it’s easy for the client to understand.  However, it is not as cut and dry as one might think.  As you can see below, there are many caveats to the program:

 1. The “Fixed Rate” Monthly Cost IS Predictable

The number one reason why clients love the “Fixed Rate” IT Support Plan is a low risk.  Subsequently, the client does not need to manage the number of end-user calls or worry about unforeseen labor costs with their network equipment.  Hence, everything is covered.

 2. The IT Support Provider Bears the Cost Risk

Unlike Adhoc, Blocks-of-Time, Use-it-Or-Lose-it, or the Budget IT Support models, the Fixed-Rate plan puts the full burden of cost on the provider.  For example, the provider would be on the hook to clean up a virus that hit all the computers at once.  In other words, it includes unlimited calls.  Obviously, clients LOVE this!

 3. The “Fixed Rate” Cost Only Covers What is Under Scope

Unfortunately, unlimited is not exactly “unlimited”.  Hence, the provider will only cover the assets that are under contract.  For example, let’s say the manager brings in and sets up a new computer.  Unless that computer is added to the scope, all labor is billed separately at a high hourly rate.  In fact, all new computers and server installs are considered “projects” and will be billed at high hourly rates.  Only then is it added to your support agreement and the monthly cost goes up.

Further, unless told otherwise, the cost never drops off.  For example, you will continue to pay the same cost if your company downsizes and you no longer need certain computers.  This may seem obvious to you and me, but you would be surprised at the number of companies that forget to renegotiate their contract at the time of renewal.  In other words, they just let it roll over into a new contract under the same terms.

4. The “Fixed Rate” Hourly Rates Are Substantially Higher Than Other IT Support Models

This is the part that seems to be a real eye-opener for most people, so pay close attention.

That “per seat” or “per device” cost is not how it appears.  Most MSPs will charge $75 to $175 per seat per month.  Maybe more for servers.  To the unknown decision-maker, this seems fairly reasonable.  However, these service providers are not going to lose money.  In fact, they need to make sure there is a healthy cushion for unlimited calls and unforeseen events.  Let’s take a look more closely.

MSPs determine their rates by the industry averages.  For example, industry metrics show that the average computer takes 30 minutes per month to support.  Therefore, they can take care of 2 computers per month in an hour.  Not only does the mean that $75 per seat is actually equivalent to $150 per hour, but $175 per seat is equivalent to $350 per hour.  Ouch!

It should also be noted that 80% of your IT support calls are entry-level calls.  That means that you are paying $150 – $350 per hour for entry-level calls!  (Insert shock emoji here!)  Furthermore, project and add-on rates are charged even higher than that.

5. Not All “Fixed Rate” IT Support Companies Are the Same

As with all things, no two MSPs are identical.  Watch out for the following:

    • IT Maturity Level – The IT Maturity Level is more important than any other factor when considering an IT support provider.  Most importantly, it measures the efficiencies of the people, processes, and technologies.
    • Additional Fees – Many MSPs will charge a travel fee (trip charge), onsite fee, or after-hours fee.
    • Terms – Terms range from month-to-month all the way up to 10-years.  Many will automatically rollover if the client does not give notice in a specific period of time.  Therefore, it is always important to understand the terms.

A Better Alternative

A better alternative to “Fixed Fee” IT services, is INSI’s Managed Services or Customized IT™.  INSI has a tiered structure that can offer decreased rates on 80% of the IT support issues without sacrificing quality.  This is because our tiered structure allows us to charge entry-level rates for entry-level tickets, which constitutes 80% of the IT support tickets.  Further, we can manage the entire environment, fill in the gaps for an internal IT team, or we can break out the services to the client’s exact needs.  Finally, we can do all this for a fixed fee.

Do You Want To Learn More About The Difference Between “Fixed Rate” and INSI’s Customized IT™?

Go here to see the various types of IT support, their pros and cons, and great questions to ask the provider on each one.

In addition, if you would like to know more about this topic and how it affects you, visit Amazon or Barnes & Noble for a copy of the book IT Outsourcing Secrets – A Small Business Guide to Comparing IT Support Companies.

Why You Shouldn’t Get the “Budget” IT Support Plan!

What is the “Budget” IT Support Plan?

The “Budget” is an IT support program with a base package plus a reserve of IT support dollars.  Subsequently, the budget reserve can be used for IT support, hosting, professional services, managed security, custom programming, and unified communications.

Positive Aspects of the “Budget” Program

Companies that offer this program usually rank high on the IT maturity scale.  Further, many clients like the idea of rollover “hours” and only paying for what they use.  Last, they like a one-stop-shop for all their IT support needs.

Negative Aspect of the “Budget Program 

Unfortunately, the billing and invoicing of this plan are extremely complex.  In addition, it puts the full risk of the cost on the client.  Subsequently, there are two parts to this plan: the base package and the budget reserve.

  • Base Package

The base package covers all the things mentioned in the IT Maturity article. While it is obvious these companies invest heavily in people, processes, and technology, it’s the clients who absorb all the cost. For example, their base package covers network monitoring and Block and Tackle Security.  However, you will pay a hefty difference if you want your desktops monitored as well.  As a result, the base package could cost as much as a third of the total monthly commitment.

  • Budget Reserve

Now you get into the really tricky part: the budget reserve.  For instance, these types of companies claim that the client can apply any services against the IT budget.  In addition, the unused budget will roll over for an additional two months.  However, the reality is there is rarely any budget left over.  Let’s see how below:

    • Basics of  Budget Reserve Calculation

Simply put, the average budget is based on 30 minutes per workstation per month and 1 hour per server per month.  As an example, 100 computers would require 50 hours.   Next, they calculate the 50 hours with a combined industry average of 10 % onsite rate and 90% remote rate.  Consequently, every time a client calls in, that time is applied against the budget.  Since the calculations are based on the average industry usage, the likelihood of having any leftover budget is slim.

    • Every Level and Service Has a Different Cost

However, the Budget plan doesn’t stop there.  In fact, those are just helpdesk rates.  Hence, everything above helpdesk level is at a much higher rate.  Therefore, the additional work eats away at your budget much faster!

In addition, the client can also apply other service options toward their budget. For example, the client may apply hosting, telecom, programming, or managed security toward their budget.  This guarantees they will run over their allotted budget since the budget is based on the calls, not additional options.

Why Companies Choose the Budget Program

The client wants superior service at a set amount per month.  In fact, many believe they can control their cost and stay under budget.  However, industry metrics do not lie.  It will take an average of 30 minutes per workstation and 1 hour per server to support a client environment whose users are dependent on their servers.  If a company chooses the budget plan, they will need to prepare for these realities.

A Better Alternative

A better alternative to “Flat Fee” IT services, is INSI’s Managed services or Customized IT™.  INSI has a tiered structure that can offer decreased rates on 80% of the IT support issues without sacrificing quality.  This is because our tiered structure allows us to charge entry-level rates for entry-level tickets, which constitutes 80% of the IT support tickets.  Further, we can manage the entire environment, fill in the gaps for an internal IT team, or we can break out the services to the client’s exact needs.  Finally, we can do all this for a fixed fee.

Do You Want To Learn More About The Difference Between “Budget” IT Model and INSI’s Customized IT™?

Go here to see the various types of IT support, their pros and cons, and great questions to ask the provider on each one.

In addition, if you would like to know more about this topic and how it affects you, visit Amazon or Barnes & Noble for a copy of the book IT Outsourcing Secrets – A Small Business Guide to Comparing IT Support Companies.

 

Pros & Cons to the “Use-It-Or-Lose-It” IT Support Model

What is the “Use-It-or-Lose-It” IT Support Model?

The “Use-It-or-Lose-It” IT Support Model provides a fixed fee for a certain number of hours.  Subsequently, the hours are determined at 1/4 of an hour per workstation per month for a stable environment. Alternatively, the model can also be determined at 1/2 of an hour per workstation per month for an environment where the end-users are heavy computer users.  In addition, the client is charged an overage fee if they exceed the number of hours.

Positive Aspects About This Program

The “Use-It-or-Lose-It” IT Support Program is more sophisticated than the Adhoc or blocks of time I previously wrote about.  In fact, I really like this program.  Subsequently, the program is simple, reliable, straightforward, and honest.   Most importantly, these companies typically document the network, monitor the network infrastructure, and have staff on hand to respond to issues in a timely manner.

Negative Aspects About the Program

The only thing negative about this program is that the client bears the risk of cost.  For example, if they go over their numbers, they have to pay a hefty overage fee.  This can get quite expensive in the event of a server crash.  Similarly, if they don’t use all of their hours, they lose them.

Why Companies Choose the “Use-It-or-Lose-It” IT Support Program

SMBs like this program because it is stable and easy to manage.  In my experience, IT support companies who offer this service are typically small.  For this reason, it is ideal for a company with no strong growth plans, has a stable network, and does not have an overly complex environment.

A Better Alternative

A better alternative to “Use-It-Or-Lose-It” IT services, is INSI’s managed services or customized IT™.  INSI has a tiered structure that can offer decreased rates on 80% of the IT support issues without sacrificing quality.  This is because our tiered structure allows us to charge entry-level rates for entry-level tickets, which constitutes 80% of the IT support tickets.  Further, we can manage the entire environment, fill in the gaps for an internal IT team, or we can break out the services to the client’s exact needs.  Finally, we can do all this for a fixed fee.

Do You Want To Learn More About The Difference Between “Use-It-or-Lose-It” and INSI’s Customized IT™?

Go here to see the various types of IT support, their pros and cons, and great questions to ask the provider on each one.

In addition, if you would like to know more about this topic and how it affects you, visit Amazon or Barnes & Noble for a copy of the book IT Outsourcing Secrets – A Small Business Guide to Comparing IT Support Companies.

Why “Blocks of Time” IT Services Are So Dangerous!

What Are “Blocks of Time” IT Services?

“Blocks of Time” IT Service is an IT support agreement that allows the client to pay for IT support hours upfront at a highly discounted rate.  Subsequently, the more hours the client buys upfront, the cheaper the hourly rate.  In fact, discounts can be quite substantial.

On the surface, it appears to be a viable option for IT support.  However, upon closer examination, it can actually be more dangerous than ad hoc IT support.

Dangers of “Blocks of Time” IT Support

Imagine a situation where you pre-pay a home contractor for 60 hours.  As a result, the contractor agrees to be at your beck-and-call for any home repairs.  However, he makes the same agreement with 20 other homeowners.  A few months later a major storm hits, and you have a leak in your roof.  Therefore, you need help before more damage is done.  Unfortunately, the other nineteen customers also had problems with the storm.  Subsequently, the home contractor does not have enough bandwidth to respond to everyone’s needs in a timely manner.  Such is the danger for clients who buy Blocks of Time IT Support Services.

Interestingly, most industries who ask for payment in advance, do so to cover their out-of-pocket expenses.  However, this is not the case with IT support companies.  They need money when services are rendered to pay their employees.  Likewise, even the on-boarding is paid for by the client at the time of service.

The Risk to the IT Support Provider

Undoubtedly, the biggest challenge for companies who sell “blocks of time” IT support services is the liability of unused hours.  In fact, many of these companies’ hours never expire.  Yet, in the interim, a business must go on as usual.  For example, bills and salaries must be paid.  Therefore, the money could be long gone before the client ever calls in the hours that are owed to them.  For this reason, many of these companies do not stay in business long.

The Client Bares the Cost

The client bears all the burden when they purchase a block of hours.  Unless you want to sue, there is no way to recover your money if the service levels are poor.  Even then, many of these companies file bankruptcy and open their doors under another name.  In one case, I was approached by a company who was owed $32K in unused hours by their IT support provider.  Their provider’s owner got sick and he could not fulfill the agreement.  The client was actually negotiating on his provider’s behalf to buy the company, so they didn’t lose their money.  This wasn’t the first time I came across this situation, nor the last.

In addition, the entire program is reactionary.  This is an issue because these companies cannot staff appropriately for peak times.  In fact, most of the “Block of Time” IT Support companies are small.  For instance, they may have one technically strong engineer and a few entry-level technicians.  As there is not much management oversight since the technically strong engineer is putting out fires and the entry-level engineers are left to their own devices.

Unfortunately, it could take days for a client to get a returned call during peak times of the year. As a consequence to being understaffed, there is very little proactive support.  This leads to viruses, malicious attacks, and festering issues.  In the end, it is a trial by fire environment and the client is the one who pays for it.

Why Companies Choose “Blocks of Time”

Many small- and medium-sized businesses use “Blocks of Time” IT services in an effort to save money and control their cost.  As a matter of fact, you can buy hours for as little as $75.  Obviously, this seems really great on the surface, but it is actually quite dangerous.

Companies that use “Blocks of Time” IT services are at a high risk of viruses, failures, and hacks.  Subsequently, the combination of downtime and excess hours far outweigh the cost of a monthly contract with a reputable company.

A Better Alternative

A better alternative to “Blocks of Time” IT services, is INSI’s managed services or customized IT™.  INSI has a tiered structure that can offer decreased rates on 80% of the IT support issues without sacrificing quality.  This is because our tiered structure allows us to charge entry-level rates for entry-level tickets, which constitutes of 80% of the IT support tickets.  Further, we can manage the entire environment, fill in the gaps for an internal IT team, or we can break out the services to the client’s exact needs.  Finally, we can do all this for a fixed fee.

Do You Want To Learn More About The Difference Between “Blocks of Time” and INSI’s Customized IT™?

Go here to see the various types of IT support, their pros and cons, and great questions to ask the provider.

In addition, if you would like to know more about this topic and how it affects you, visit Amazon or Barnes & Noble for a copy of the book IT Outsourcing Secrets – A Small Business Guide to Comparing IT Support Companies.

 

 

6 Security Tips for the Unprecedented Remote Workforce!

Remote Workforce Security Tips

Who would have suspected in February that, as early as March 18th we would all be working from home full-time, cyber-teaching our kids, and on government lock-down?  We are indeed working in unprecedented times.  Like it or not, it has indeed changed the way we see the world, both personally and professionally.

Remote Workforce Impact on Companies

While this time has been especially hard on each one of us as workers, it is equally as hard for companies.  Imagine not only having the responsibility of making enough profit to keep all workers on the payroll but also blindly trusting each worker to protect your company data in a different environment.

Unfortunately, one honest mistake could cost the company a fortune.  Therefore, the remote worker’s ignorance or unwillingness to adhere to cyber-security policies could negatively impact a company’s ability to stay afloat.  Clearly, these are trying times for all of us.  As a result, it is up to each one of us to do our part to keep our companies profitable.

Ways You Can Help Protect Your Company Data

There are several ways you can protect your companies data when working remotely.  This includes a combination of safe practices and good communication with your IT team.  After all, your IT team is always available to help you make the right decisions.  Below is a list of ways you can do your part to help protect the company’s data.

1. Use Your Company’s VPN When Working From Home

Interestingly, when you are at your office you are on a private network.  As a result, you can send and receive data without it going over the public Internet.  Likewise, remote users typically have access to a Virtual Private Network (VPN) that allows you to do the same remotely.  Obviously, this VPN is a major security vulnerability if you do not use a properly configured firewall.

So, how do you know if you are on your company’s VPN.  It’s simple.  You will know if you are using the VPN because you will access it under your Window’s Settings.  However, there may be several reasons your company does not have a VPN.  Examples include Software as a Service Applications, Office 365, and other secure data sharing.  Therefore, you should ask your IT department about VPN access if you do not see it as an option in your Windows Settings.  They will let you know if you need it or not.  If you do, make sure you always log on when performing work tasks.

2. Reach Out to Your IT Team Before Loading Software

Always remember that your computer is company property and it is is not yours to do with as you please.  Clearly, your IT team exists to both protect your company’s data and keep you productive.  Therefore, you should include them on any and all software download decisions.

Often times, free software is offered to exploit the end-user device.  When this happens, hackers access end-users’ computers as an entry point to all company data.  Therefore, if you download an infectious software, you are giving access to hackers.

3. Save All Work on Corporate Drives

If you’re like most people, you have lost an important file at some point in your life. Undoubtedly, even thinking about it will likely make your heart sink as you remember having to recreate it from scratch.  Now imagine losing all the files on your computer.  That’s the risk you take when you do not back up your files to the corporate drive.

Unfortunately, there are many things that can go wrong when an employee takes their computer home.  After all, you just don’t have the same protections.  For most companies, this includes everything from firewall protection to desktop backups, surge protectors, or even theft.  For this reason, it is vitally important that you store all your documents on the company drive and not your local hard drive.

At the corporate level, all your data is being backed up in case of a natural disaster, hackers, hard-drive failure, or theft. In fact, this is done on a nightly basis.  Yet, when you are not connected, everything is being stored on your local drive.  That’s why it is extremely important that all remote workers copy new files on the company drive every night before they quit work for the day.

4. Think Before You Click

It may be hard to believe, but nearly 95% of attacks on business networks are the result of successful phishing emails.  Even worse, the average cost to a mid-size company is $1.6 million.  This could come in the form of a text like smishing. It could be a targeted attack, that appears to come from a trusted source, like spear phishing.  Yet, they can even come from a trusted friend or acquaintance.   The best thing you can do is to get educated on what a phishing email looks like and how to spot them.

Unfortunately, once a hacker is let into the system, they remain undetected for nearly 9 months on average.  Imagine the damage that a hacker can do in 9 months with unlimited access to all corporate data. Yikes!  Therefore, it is vitally important you get educated on what to look for and what to avoid.  Not just as a remote worker, but for all times.

5. Do Not Share Your Devices at Home

Sometimes it may seem harmless to share your work computer with your children or your spouse.  However, when you do this, you are risking the companies data.  Incidentally, no one ever purposely downloaded a virus.  Rather, they unknowingly visit questionable sites, click on phishing emails, and download infected games.  In the end, the company pays the price and you are the one who gets blamed. Therefore, when you work from home, make sure your family uses their own devices, not your companies assets.

6. Lock Devices When Unattended

It may surprise you to know that even in your own home, your work computer might not be safe.  In fact, anyone who has been in technology long enough can tell countless stories of company devices being improperly used at remote user’s homes.  For instance, one person’s roommate sent out a company-wide email claiming that person was having an affair with the Vice President.  On another occasion, a teenage son accessed his father’s computer, who was a doctor, to prescribe narcotics.  However, the cutest remote working story was when a toddler fell on a keyboard and accidentally sent the father’s venting message to the CEO.  Consequently, it was a message the father hadn’t actually intended to send.

Those are just a few examples of things gone wrong when a computer is left unattended.  Therefore, the best practice is to lock your computer when you leave it unattended.  Another great idea is to set automatic time-outs in the Window’s Settings.

When in Doubt Ask Your IT Department!

Your IT team is here to help.  Whenever you have a question, issue, or problem with your teleworker’s technology, it is best to reach out to them right away.  Most importantly, do not wait until things are out of hand before you contact them.  They want to know what is going on so that they can guide you in the right direction.

INSI is Here to Protect You!

This post is part of the INSI Awareness Campaign that is designed to keep our clients protected and informed.  In addition, you can click here to learn more about our security offerings.

Most importantly, if you are an INSI client and are concerned about remote workforce technology, please do not hesitate to contact our helpdesk at 770-387-2424.  Our engineers are more than happy to guide you on safe technology practices.  After all, we are here to serve you!