It's not that small a worldI'm a big fan of ebay. My wife isn't so enthusiastic, though. Despite the fact that I've used the site to buy loads of great things and only had any problems on two occasions, it's those occasions she's quick to remind me about whenever I mention it. I know the value of a quiet life, and both of the less-than-straightforward transactions happened to be with overseas suppliers, so I now make a point, whenever possible, of only dealing with UK ebayers.
If you're a regular reader of these tips, it probably won't surprise you to learn that there's a parallel here with network infrastructure purchasing. Let me make one thing clear right away, though. I'm certainly not making a blanket statement ruling out all overseas or long distance purchasing. Indeed, right here at Go Communications we have a large number of very happy Cisco maintenance spares customers right around the globe.
If it's mission critical, keep it localWhat I do want to say, and say loud and clear, is this: for mission critical network support, your key suppliers should be local. The world may be smaller today than it was a decade or two ago, but shipping parts still takes time: generally it just isn't feasible to get network components from a supplier in one country to a customer in another in less than a day or so – and that's when everything goes smoothly.
Almost all networks have one or more mission critical segments, demanding four hour or perhaps eight hour coverage, whether that be from phone call to fix or to initial response. Whichever of the various permutations apply, your maintenance supplier will have made arrangements with a local courier depot, broadly speaking centrally located between you and their other customers in the area, so that it can meet the demands of its SLAs with all those customers.
Local engineering and warehousing That sounds good – and it is good. But it's not enough. You need a supplier, for those mission critical parts of your network, which is actually based near to you. More specifically, you need them to have local engineering and warehousing facilities, not just admin and sales offices.
It's all very well having spares couriered from a local depot, but when the spare itself proves faulty or incorrectly configured for your needs (and, yes, it does happen) the backup unit or engineering resource being at the other end of the country can spell serious downtime for that mission critical network segment. Unless you feel like stumping up for helicopter deliveries.
Build your defencesOf course, selecting a supplier with local warehousing and engineering facilities doesn't guarantee that they'll have a second spare in stock when you need it. It does at least make it possible, though. It's a tick in a safety box, and when it comes to mission critical network segments, you want as many ticks in safety boxes as possible. Each one increases your defences against network failure and downtime.
As well as reducing the chances of serious network outages, using maintenance suppliers who are local to you may well get you a better deal financially, because of their lower shipping costs. And it will all go to help make for a quiet life and reduce the danger of your being smacked over the head, verbally or otherwise, for going with the wrong supplier. In my book, that's got to be a good thing.
Tuesday 21 December 2010
Monday 29 November 2010
Reduce purchasing new equipment
Canny purchasing in difficult timesThe economic downturn resulting from the global debt crisis of 2008 has made itself felt in all corners of the market, and its impact is on-going. For network managers it has meant slashed budgets as businesses and other organisations seek to make significant financial savings. For some, the cuts have already hit. For others they are still filtering down through the financial system. For almost all, though, it's just a matter of time: few businesses are likely to escape unaffected.
Such cuts put network and IT managers in an unenviable position. They must, of course, operate within the finances available, but they, better than almost anyone else, know how dependent modern businesses are on their networks. Every network manager must defend their network (and especially their core network) not least because, if it is compromised, they will be first in the dock when the stewards' enquiry begins. There is a substantial financial circle to be squared.
Buy less?Let's take a good hard look at the situation you could be facing. Cuts in your network budget are either with you now, or on the way. If you are one of those looking at substantial cuts, you could be forgiven for thinking that your options are strictly limited to a drastic reduction in what you will buy, across the board. That's not necessarily the case, though. Instead, consider reducing the amount of new equipment that you buy.
You may normally buy all or most of your network equipment brand new. When budgets are generous, such a strategy can be ideal, for various excellent reasons. Adopting a policy of buying refurbished equipment can save you thousands, though. And these savings can be taken further. To maximise them, canny network managers don't simply specify product X refurbished instead of product X brand new. They pay very close attention to exactly what device is specified for each network requirement.
Supply and demandWith a well-rounded understanding of the market, careful device selection can pay significant further dividends. For example, many large networks are currently decommissioning 10/100 speed kit in favour of gigabit and ten gigabit devices. As a result, the market is awash with 10/100 product, and the immutable law of supply and demand is making prices rather attractive. Predictably, 10/100/1000 is following suit. By specifying refurbished 10/100 devices for network segments that will run happily at these speeds, you can retain as much of your reduced budget as possible for your core network while minimising degradation of your peripheral network performance.
That brings us to the heart of the matter. In harsh times, all these money-saving tactics should have one goal: the protection of your core network. Virtually all businesses today are utterly reliant on a robust core network. Cuts to that core network will almost inevitably impact bottom line business performance – possibly seriously, or even disastrously. Protect it at almost any cost. Buy refurbished devices in preference to new, specify lower performance where you can get away with it, and even cut peripheral network services if necessary, but use the savings, which can be substantial indeed, to maintain your core network.
Then, when easier times come, you'll have a solid, up to date and robust foundation on which to build up additional network services and performance.
Such cuts put network and IT managers in an unenviable position. They must, of course, operate within the finances available, but they, better than almost anyone else, know how dependent modern businesses are on their networks. Every network manager must defend their network (and especially their core network) not least because, if it is compromised, they will be first in the dock when the stewards' enquiry begins. There is a substantial financial circle to be squared.
Buy less?Let's take a good hard look at the situation you could be facing. Cuts in your network budget are either with you now, or on the way. If you are one of those looking at substantial cuts, you could be forgiven for thinking that your options are strictly limited to a drastic reduction in what you will buy, across the board. That's not necessarily the case, though. Instead, consider reducing the amount of new equipment that you buy.
You may normally buy all or most of your network equipment brand new. When budgets are generous, such a strategy can be ideal, for various excellent reasons. Adopting a policy of buying refurbished equipment can save you thousands, though. And these savings can be taken further. To maximise them, canny network managers don't simply specify product X refurbished instead of product X brand new. They pay very close attention to exactly what device is specified for each network requirement.
Supply and demandWith a well-rounded understanding of the market, careful device selection can pay significant further dividends. For example, many large networks are currently decommissioning 10/100 speed kit in favour of gigabit and ten gigabit devices. As a result, the market is awash with 10/100 product, and the immutable law of supply and demand is making prices rather attractive. Predictably, 10/100/1000 is following suit. By specifying refurbished 10/100 devices for network segments that will run happily at these speeds, you can retain as much of your reduced budget as possible for your core network while minimising degradation of your peripheral network performance.
That brings us to the heart of the matter. In harsh times, all these money-saving tactics should have one goal: the protection of your core network. Virtually all businesses today are utterly reliant on a robust core network. Cuts to that core network will almost inevitably impact bottom line business performance – possibly seriously, or even disastrously. Protect it at almost any cost. Buy refurbished devices in preference to new, specify lower performance where you can get away with it, and even cut peripheral network services if necessary, but use the savings, which can be substantial indeed, to maintain your core network.
Then, when easier times come, you'll have a solid, up to date and robust foundation on which to build up additional network services and performance.
Tuesday 12 October 2010
Buy refurbished kit from the manufacturer
Beware end-of-lifeWhen a network device is declared end-of-life its value on the used market typically plunges, drastically reducing the price it can command at resale. As a result, buying devices brand new shortly before they go end of life is a risky business that can cost you dear. The savvy network manager knows his product lifespans and wherever possible opts for refurbished alternatives in preference to brand-new near end-of-life products, saving thousands.
If you are a regular follower of these money-saving tips then my interest in cars, and sports cars in particular, probably won't have escaped your notice. For the last three years, though, my focus has been on building Go Communications into the respected supplier of refurbished Cisco Systems kit that it is today, and during this time I've been without a sports car. This year, with Go Communications established with a solid base of happy customers and strong sales figures, it was time to take a closer look at the sports car market, with a view to spending some money.
Actually, when I say "look at the market" I'm not being one hundred percent honest. I've known for a long time what car I'd be buying – in my book there's nothing to beat a Porsche 911. On checking the market out, though, I discovered that the Stuttgart boys have a new 911 waiting in the wings, due out next year, which of course means the current model is near end-of-life, and its resale value will very likely suffer when the new car is released in 2011.
Network managers often face the same situation. New kit is required for this project or that, and some of the devices on the shopping list are about to go end-of-life. Heavy depreciation and therefore higher over-all costs beckon, unless some canny buying tactics are deployed. There are three approaches that can be used to get the best long-term value in such situations.
New infrastructure, refurbished sparesMy personal preference would be to buy all my core network infrastructure brand new, direct from the manufacturer, and all my spares refurbished. This allows me to specify the best core infrastructure available. After all, there's little point in specifying brand new spares if it means you have to cut corners on the kit that your network will actually be running on. By adopting this approach and holding refurbished spares yourself instead of committing to an expensive maintenance contract with the manufacturer you can build a premier quality network and stay within your budget.
Refurbished throughoutBuying all your kit refurbished – core infrastructure and spares – can offer advantages, since the hardware is all 'tried and tested'. Over the last 14 years in network infrastructure sales it's been abundantly clear to me that there's not much to choose between the failure rates of tested used devices and brand new. The old IT adage generally holds true: if a device is going to fail, it will normally do so in its first couple of weeks. And, of course, there are significant financial savings to be made, assuming that an absolutely state-of-the-art network is not your objective.
Refurbished from a dealerThis is essentially a refinement of either of the above approaches. Instead of buying refurbished equipment directly from the manufacturer – the ultra-safe approach – savings can be made by sourcing your refurbished kit from a dealer. In 99 cases out of 100, this will be less expensive than sourcing the same devices from the manufacturer.
The downside is that in the event of a failure, the spare itself may not be supported by the manufacturer. In practice, this simply means that you need to approach the dealer for support, not the manufacturer, so choose your dealer with care.
The best bet is to choose a supplier which not only has a reputation for quality, but has gone out of its way to support that reputation with an internationally-recognised quality standard such as ISO 9000.
ISO 9000 quality controls are typically stricter than those enforced by manufacturers on their dealers: if your choice is between an authorised dealer without a quality standard, and a non-authorised one with a quality standard, the latter is typically going to be the safer – and often less expensive – bet. More expensive does not always mean better.
So: buy cheap, but be wily. Don't sacrifice quality in favour of brand names. Do your homework and identify the best time to buy, the best product to buy, and the best source to buy it from. Play your cards right and you could make significant savings at the same time as improving the quality of the parts and service you're working with.
If you are a regular follower of these money-saving tips then my interest in cars, and sports cars in particular, probably won't have escaped your notice. For the last three years, though, my focus has been on building Go Communications into the respected supplier of refurbished Cisco Systems kit that it is today, and during this time I've been without a sports car. This year, with Go Communications established with a solid base of happy customers and strong sales figures, it was time to take a closer look at the sports car market, with a view to spending some money.
Actually, when I say "look at the market" I'm not being one hundred percent honest. I've known for a long time what car I'd be buying – in my book there's nothing to beat a Porsche 911. On checking the market out, though, I discovered that the Stuttgart boys have a new 911 waiting in the wings, due out next year, which of course means the current model is near end-of-life, and its resale value will very likely suffer when the new car is released in 2011.
Network managers often face the same situation. New kit is required for this project or that, and some of the devices on the shopping list are about to go end-of-life. Heavy depreciation and therefore higher over-all costs beckon, unless some canny buying tactics are deployed. There are three approaches that can be used to get the best long-term value in such situations.
New infrastructure, refurbished sparesMy personal preference would be to buy all my core network infrastructure brand new, direct from the manufacturer, and all my spares refurbished. This allows me to specify the best core infrastructure available. After all, there's little point in specifying brand new spares if it means you have to cut corners on the kit that your network will actually be running on. By adopting this approach and holding refurbished spares yourself instead of committing to an expensive maintenance contract with the manufacturer you can build a premier quality network and stay within your budget.
Refurbished throughoutBuying all your kit refurbished – core infrastructure and spares – can offer advantages, since the hardware is all 'tried and tested'. Over the last 14 years in network infrastructure sales it's been abundantly clear to me that there's not much to choose between the failure rates of tested used devices and brand new. The old IT adage generally holds true: if a device is going to fail, it will normally do so in its first couple of weeks. And, of course, there are significant financial savings to be made, assuming that an absolutely state-of-the-art network is not your objective.
Refurbished from a dealerThis is essentially a refinement of either of the above approaches. Instead of buying refurbished equipment directly from the manufacturer – the ultra-safe approach – savings can be made by sourcing your refurbished kit from a dealer. In 99 cases out of 100, this will be less expensive than sourcing the same devices from the manufacturer.
The downside is that in the event of a failure, the spare itself may not be supported by the manufacturer. In practice, this simply means that you need to approach the dealer for support, not the manufacturer, so choose your dealer with care.
The best bet is to choose a supplier which not only has a reputation for quality, but has gone out of its way to support that reputation with an internationally-recognised quality standard such as ISO 9000.
ISO 9000 quality controls are typically stricter than those enforced by manufacturers on their dealers: if your choice is between an authorised dealer without a quality standard, and a non-authorised one with a quality standard, the latter is typically going to be the safer – and often less expensive – bet. More expensive does not always mean better.
So: buy cheap, but be wily. Don't sacrifice quality in favour of brand names. Do your homework and identify the best time to buy, the best product to buy, and the best source to buy it from. Play your cards right and you could make significant savings at the same time as improving the quality of the parts and service you're working with.
Monday 13 September 2010
Sell redundant network hardware on consignment
One of the near-universal facts of network management life is that every network generates a constant stream of retired devices that must be disposed of. As with so many issues in life, this is both a challenge and an opportunity. It's a challenge because it's yet another task that needs to be addressed, consuming time and manpower. It's an opportunity because it can be something of a money-spinner.
There's no real rocket science here. Retired network devices can bring funds in by the rather simple expedient of selling them. You could have told me that. My kids could have told me that. So, what's the big scoop? It's this: there is a right way and a wrong way (several wrong ways, in fact) to go about selling retired network kit.
Selling your carLet's consider a parallel from the world of motoring. Imagine it's time to replace your car, so you need to sell it on. The right approach to take will depend on whether you need to shift the car quickly, or get the best price for it. Generally, you can have one or the other, but not both.
If you want the best possible price for your car, you'll wash and polish it, clean and tidy the interior, and have a professional agent sell it for you. Of course, if you need a quick sale, you'll skip all that and stick it in a second-hand car rag at a cut price.
The same principle applies to disposing of retired network kit. If you have have time to allow an experienced dealer to sell it for you, you can always secure a better price.
Niche complicationsThings are further complicated if your product only appeals to a niche market. To go back to our motoring example, let's assume your car isn't just any old car, but a Porsche. A bright pink Porsche. If you try to sell it to your local dealer, you're not going to get a good price for it. The dealer's chances of reselling it will be severely reduced, because bright pink just isn't to everyone's taste. There are people who like pink cars: I know a couple myself (one a public figure and the other in the Go Communications Harlow offices) but they are a select bunch.
The laws of economics dictate that if you are looking to resell something that isn't particularly popular, you should play it safe and slow. However, this doesn't mean you need to resign yourself to months of tedious negotiations – months which would be much better spent on more fruitful matters, such as the day-to-day running of your network. There is, you may not be surprised to hear, a better way.
Selling on consignmentIf the reseller of the product is not its owner, the pressure to sell it as quickly as possible – pressure which always tends to drive down the achievable price – is much reduced. The owner is likely to achieve a good selling price and the reseller a better profit on the deal. In the network world this approach, essentially using the reseller as a selling agent, is known as selling "on consignment".
Selling on consignment isn't the approach to take when a speedy sale is required, but it does markedly improve the chances of a good sale price. The reseller acting as sales agent must allocate monies to the cost of storing the device to be sold, but they can weigh that against their cut of the sale price and they have the direct sales advantage and reputation boost that comes as a result of being able to advertise the device as 'in stock'.
Increased demandThis almost always results in additional enquiries for the device, from sources which otherwise would not have known about it – consignment brings the reseller's network of contacts into the game. And that increased demand will deliver the premium selling price that the customer is looking for.
So there you have it: this month's money-saving tip. Sell your redundant network hardware on consignment, especially if it's a little out of the ordinary.
I wouldn't recommend opting for bright pink routers when specifying kit, though. I think even the most effective reseller might struggle to shift them at a good price.
There's no real rocket science here. Retired network devices can bring funds in by the rather simple expedient of selling them. You could have told me that. My kids could have told me that. So, what's the big scoop? It's this: there is a right way and a wrong way (several wrong ways, in fact) to go about selling retired network kit.
Selling your carLet's consider a parallel from the world of motoring. Imagine it's time to replace your car, so you need to sell it on. The right approach to take will depend on whether you need to shift the car quickly, or get the best price for it. Generally, you can have one or the other, but not both.
If you want the best possible price for your car, you'll wash and polish it, clean and tidy the interior, and have a professional agent sell it for you. Of course, if you need a quick sale, you'll skip all that and stick it in a second-hand car rag at a cut price.
The same principle applies to disposing of retired network kit. If you have have time to allow an experienced dealer to sell it for you, you can always secure a better price.
Niche complicationsThings are further complicated if your product only appeals to a niche market. To go back to our motoring example, let's assume your car isn't just any old car, but a Porsche. A bright pink Porsche. If you try to sell it to your local dealer, you're not going to get a good price for it. The dealer's chances of reselling it will be severely reduced, because bright pink just isn't to everyone's taste. There are people who like pink cars: I know a couple myself (one a public figure and the other in the Go Communications Harlow offices) but they are a select bunch.
The laws of economics dictate that if you are looking to resell something that isn't particularly popular, you should play it safe and slow. However, this doesn't mean you need to resign yourself to months of tedious negotiations – months which would be much better spent on more fruitful matters, such as the day-to-day running of your network. There is, you may not be surprised to hear, a better way.
Selling on consignmentIf the reseller of the product is not its owner, the pressure to sell it as quickly as possible – pressure which always tends to drive down the achievable price – is much reduced. The owner is likely to achieve a good selling price and the reseller a better profit on the deal. In the network world this approach, essentially using the reseller as a selling agent, is known as selling "on consignment".
Selling on consignment isn't the approach to take when a speedy sale is required, but it does markedly improve the chances of a good sale price. The reseller acting as sales agent must allocate monies to the cost of storing the device to be sold, but they can weigh that against their cut of the sale price and they have the direct sales advantage and reputation boost that comes as a result of being able to advertise the device as 'in stock'.
Increased demandThis almost always results in additional enquiries for the device, from sources which otherwise would not have known about it – consignment brings the reseller's network of contacts into the game. And that increased demand will deliver the premium selling price that the customer is looking for.
So there you have it: this month's money-saving tip. Sell your redundant network hardware on consignment, especially if it's a little out of the ordinary.
I wouldn't recommend opting for bright pink routers when specifying kit, though. I think even the most effective reseller might struggle to shift them at a good price.
Thursday 19 August 2010
Don’t outsource
Don’t outsource everything. My better half won't like it!
I love my wife. I wouldn’t dream of letting anyone else take her out for a romantic dinner, for example. There are some things that you just do yourself. I'd imagine most people would feel the same.
OK. I admit it’s a thin analogy, but bear with me. I do those things for my wife, rather than having someone else do them, because she's important to me. Beyond your home life, your business ranks pretty high on the scale of relative importance – so why would you outsource all your IT and network management? In today's world, without your network and IT, you have no business. It really is that clear cut. You need to be absolutely sure your network is in the right hands: yours.
Outsourcing became something of a business mantra in the nineties and noughties. According to the accepted wisdom of the day, huge savings and dramatic improvements in productivity could be realised if 'non-core activities' were outsourced. Times have changed, though. Rapidly and brutally.
The cold light of day
Much of the last two decades has been characterised by ongoing economic boom, fuelled by plentiful and easily accessible finance. That boom came to a sudden end with the Credit Crunch and the resulting economic downturn. What we have now is the cold light of day, and that light has exposed some uncomfortable truths about IT outsourcing.
The principal reasons for outsourcing an IT network are to make financial savings and to bring in expertise that the network owner does not currently have. In today's climate, a re-think is needed on how much exactly should be outsourced, if outsourcing is the favoured option.
If you don't have the necessary skills in your business to manage your own network, you should bring those skills on board as quickly as possible. Any organisation that fails to learn new technologies and understand today's and tomorrow's Internet is storing up serious trouble for the near future. Web 2.0 and other emerging social networking technologies are here today and here to stay, and new security risks and other threats are arising on a daily basis.
On top of that, successful management of your network demands not only technical expertise, but a deep and continually updated understanding of what your business is all about and what it needs from its network, today and tomorrow. It's likely that any outsourced provider's understanding on this front is going to be weaker in various areas than that of your own people.
This gap in understanding, however small, makes almost any outsourcing of 'all and sundry' an enormous gamble. The Internet is awash with disaster stories testifying in gory detail to the results of such gambles, but what those stories don't always clearly show is that some of them could have worked, if only they hadn’t outsourced absolutely everything in the IT department.
Agility and responsiveness
The current economic challenges, which are impacting all businesses, do seem to be prompting a return to sanity on the outsourcing of company IT networks. This is excellent news, because if there was ever a field in which the age-old maxim "If you want a job doing properly, then do it yourself" applies, it's IT networking.
Key in today's commercial environment is the ability to make the right decisions swiftly. It's that ability that will enable businesses to get ahead and stay ahead. Bureaucracy, indecision and labyrinthine purchasing processes all belong to the last century, along with anything else that hinders a business' ability to act and react with speed and precision.
The need for agility and responsiveness alone rules out wholesale outsourcing of IT networks.
Decision making is inevitably slowed and made less effective, which in turn increases real costs for the organisation, as well as impairing its ability to respond to changing opportunities and threats. Additionally, outsourcing your entire network could mean dealing with your provider's administration team rather than a long in the tooth, hardened purchasing individual. With fixed discounts and pre-set ordering systems, little negotiation can occur and adaptability in the face of changing circumstances and requirements can be severely limited. Surely the days of blind agreement to long-term price structures are long gone?
Partial outsourcing
In many cases, organisations have outsourced their entire IT facility, only to find that, part of the way through the contract, there are such serious problems that the only solution is to bring the arrangement to an end, returning to in-house IT management. The costs and disruption resulting from such a catastrophe are enormous, with the wasted time alone typically running into thousands of man-hours.
I'm not saying that outsourcing is necessarily a complete no-go, although I would certainly recommend exceedingly careful assessment of all of the costs, risks, limitations and potential pitfalls of any contract before committing to it. What I am saying is that complete outsourcing should be a no-go. In almost all the cases in which an outsourcing contract has gone badly wrong, the damage would have been much less comprehensive, and staved off for a longer period of time, if only part of the IT function been outsourced.
Had more time and thought been spent identifying what really needed outsourcing and what didn't, the resulting arrangement could have been far more beneficial to the end user, and significantly longer-lasting. That would have pleased the provider, too, since outsourcing companies calculate risk and costs on the basis of contracts running their full term. And of course the chances of a valuable renewed outsourcing contract would have been increased.
Ten long years
One of our customers is half way through a ten year outsourcing contract, which covers everything from a state-of-the-art 10 gig switch router all the way through to desktop support. Ridiculously (but inevitably) the customer knows far more about the desktops than the outsourced provider does. With the recession biting hard, the customer's income has dropped, but of course the full standing charge must still be paid to the outsourced provider. With internally managed IT, the customer could have cut back or restructured their network, reducing costs and reconfiguring for a leaner operation, but with the outsourced contract, they can't even do that.
That's an extreme case, but it illustrates the issues. The message is clear: don't outsource unless you must, and then only outsource what you must. Never outsource your entire IT function. To enjoy real savings and maintain flexibility and agility, bring the skills you need into your business and manage your own network.
Think of your network as you think of anything else (or anyone else!) highly precious to you. Keep it close and take care of it yourself. Your business depends on it.
I love my wife. I wouldn’t dream of letting anyone else take her out for a romantic dinner, for example. There are some things that you just do yourself. I'd imagine most people would feel the same.
OK. I admit it’s a thin analogy, but bear with me. I do those things for my wife, rather than having someone else do them, because she's important to me. Beyond your home life, your business ranks pretty high on the scale of relative importance – so why would you outsource all your IT and network management? In today's world, without your network and IT, you have no business. It really is that clear cut. You need to be absolutely sure your network is in the right hands: yours.
Outsourcing became something of a business mantra in the nineties and noughties. According to the accepted wisdom of the day, huge savings and dramatic improvements in productivity could be realised if 'non-core activities' were outsourced. Times have changed, though. Rapidly and brutally.
The cold light of day
Much of the last two decades has been characterised by ongoing economic boom, fuelled by plentiful and easily accessible finance. That boom came to a sudden end with the Credit Crunch and the resulting economic downturn. What we have now is the cold light of day, and that light has exposed some uncomfortable truths about IT outsourcing.
The principal reasons for outsourcing an IT network are to make financial savings and to bring in expertise that the network owner does not currently have. In today's climate, a re-think is needed on how much exactly should be outsourced, if outsourcing is the favoured option.
If you don't have the necessary skills in your business to manage your own network, you should bring those skills on board as quickly as possible. Any organisation that fails to learn new technologies and understand today's and tomorrow's Internet is storing up serious trouble for the near future. Web 2.0 and other emerging social networking technologies are here today and here to stay, and new security risks and other threats are arising on a daily basis.
On top of that, successful management of your network demands not only technical expertise, but a deep and continually updated understanding of what your business is all about and what it needs from its network, today and tomorrow. It's likely that any outsourced provider's understanding on this front is going to be weaker in various areas than that of your own people.
This gap in understanding, however small, makes almost any outsourcing of 'all and sundry' an enormous gamble. The Internet is awash with disaster stories testifying in gory detail to the results of such gambles, but what those stories don't always clearly show is that some of them could have worked, if only they hadn’t outsourced absolutely everything in the IT department.
Agility and responsiveness
The current economic challenges, which are impacting all businesses, do seem to be prompting a return to sanity on the outsourcing of company IT networks. This is excellent news, because if there was ever a field in which the age-old maxim "If you want a job doing properly, then do it yourself" applies, it's IT networking.
Key in today's commercial environment is the ability to make the right decisions swiftly. It's that ability that will enable businesses to get ahead and stay ahead. Bureaucracy, indecision and labyrinthine purchasing processes all belong to the last century, along with anything else that hinders a business' ability to act and react with speed and precision.
The need for agility and responsiveness alone rules out wholesale outsourcing of IT networks.
Decision making is inevitably slowed and made less effective, which in turn increases real costs for the organisation, as well as impairing its ability to respond to changing opportunities and threats. Additionally, outsourcing your entire network could mean dealing with your provider's administration team rather than a long in the tooth, hardened purchasing individual. With fixed discounts and pre-set ordering systems, little negotiation can occur and adaptability in the face of changing circumstances and requirements can be severely limited. Surely the days of blind agreement to long-term price structures are long gone?
Partial outsourcing
In many cases, organisations have outsourced their entire IT facility, only to find that, part of the way through the contract, there are such serious problems that the only solution is to bring the arrangement to an end, returning to in-house IT management. The costs and disruption resulting from such a catastrophe are enormous, with the wasted time alone typically running into thousands of man-hours.
I'm not saying that outsourcing is necessarily a complete no-go, although I would certainly recommend exceedingly careful assessment of all of the costs, risks, limitations and potential pitfalls of any contract before committing to it. What I am saying is that complete outsourcing should be a no-go. In almost all the cases in which an outsourcing contract has gone badly wrong, the damage would have been much less comprehensive, and staved off for a longer period of time, if only part of the IT function been outsourced.
Had more time and thought been spent identifying what really needed outsourcing and what didn't, the resulting arrangement could have been far more beneficial to the end user, and significantly longer-lasting. That would have pleased the provider, too, since outsourcing companies calculate risk and costs on the basis of contracts running their full term. And of course the chances of a valuable renewed outsourcing contract would have been increased.
Ten long years
One of our customers is half way through a ten year outsourcing contract, which covers everything from a state-of-the-art 10 gig switch router all the way through to desktop support. Ridiculously (but inevitably) the customer knows far more about the desktops than the outsourced provider does. With the recession biting hard, the customer's income has dropped, but of course the full standing charge must still be paid to the outsourced provider. With internally managed IT, the customer could have cut back or restructured their network, reducing costs and reconfiguring for a leaner operation, but with the outsourced contract, they can't even do that.
That's an extreme case, but it illustrates the issues. The message is clear: don't outsource unless you must, and then only outsource what you must. Never outsource your entire IT function. To enjoy real savings and maintain flexibility and agility, bring the skills you need into your business and manage your own network.
Think of your network as you think of anything else (or anyone else!) highly precious to you. Keep it close and take care of it yourself. Your business depends on it.
Friday 9 July 2010
Recycle existing network parts
Recycle, recycle, recycle!It's OK. You can relax. This isn't yet another article telling you to be green, to sort and recycle rather than throw away. At least, not just that – and I promise that's the last mention of the 'G' word. I'm going a step further in this month's money-saving tip: before you dispose of decommissioned equipment you pull from your network, consider the possibility of re-using it.
A life lesson from shoesWith three children under six years of age it has become painfully clear to me just how expensive their shoes are. I reckon they must be far and away the most costly items of children's clothing. Of course, no one tells you this before you have children – it's one of those 'life lessons'. And it's a lesson that life takes great delight in ramming home forcefully!
To enhance the lesson, my wife tends towards the view that only the best will do. Now, I don't disagree on this, but the difference in the price tags on apparently very similar shoes from the local supermarket and the high fashion stores can be eye-watering to say the least. Like any father, I want my children to have the best. Higher quality shoes are going to be better for their feet and are likely to last longer. But I'm also keen to make the most of any way to save a bit of cash where I can do so without sacrificing that quality.
I have two daughters. Fortunately they both like pink, and they both take after me in that they have slightly larger and wider than average feet. While they may not be so enthusiastic about the latter, both factors are good news for me. They mean that we can pass shoes from the older daughter to the younger, saving money without upsetting anyone – including my daughters and my wife!
Your network: redeploy, don't throw awayNow – and this, odd though it may seem, is the important bit – your network is like my daughters' feet: 'hand-me-down' strategies work a treat. When you upgrade this or thatsection of your network, do you ever have the nagging feeling that the device you're pulling out could be put to use elsewhere in your infrastructure? Nine times out of ten, it almost certainly could, even if that means using it to upgrade another part of your network before it strictly needs to be upgraded.
Why should you upgrade a section of network that doesn't need to be upgraded yet? After all, the old adage "If it isn't broken, don't fix it" is based on some pretty sound common sense. The reason is that even if that part of your network isn't stretched at the moment, the day will surely come – and probably sooner than you think or hope – when it will be under pressure. Use the parts released by one upgrade to build capacity, capability and reliability in other areas – use your existing investment to secure your network's future.
By doing this, you'll not only please your users but also your finance department, by strengthening the return you get on the original investment in the reused network devices.
Your network infrastructure represents a significant investment – both in terms of hardware and software costs, and also in terms of time and effort. Get the best possible return on that investment and deliver the best possible network service to your users by, wherever possible, carefully redeploying retired equipment rather than disposing of it. After all, when it's gone, it's gone
A life lesson from shoesWith three children under six years of age it has become painfully clear to me just how expensive their shoes are. I reckon they must be far and away the most costly items of children's clothing. Of course, no one tells you this before you have children – it's one of those 'life lessons'. And it's a lesson that life takes great delight in ramming home forcefully!
To enhance the lesson, my wife tends towards the view that only the best will do. Now, I don't disagree on this, but the difference in the price tags on apparently very similar shoes from the local supermarket and the high fashion stores can be eye-watering to say the least. Like any father, I want my children to have the best. Higher quality shoes are going to be better for their feet and are likely to last longer. But I'm also keen to make the most of any way to save a bit of cash where I can do so without sacrificing that quality.
I have two daughters. Fortunately they both like pink, and they both take after me in that they have slightly larger and wider than average feet. While they may not be so enthusiastic about the latter, both factors are good news for me. They mean that we can pass shoes from the older daughter to the younger, saving money without upsetting anyone – including my daughters and my wife!
Your network: redeploy, don't throw awayNow – and this, odd though it may seem, is the important bit – your network is like my daughters' feet: 'hand-me-down' strategies work a treat. When you upgrade this or thatsection of your network, do you ever have the nagging feeling that the device you're pulling out could be put to use elsewhere in your infrastructure? Nine times out of ten, it almost certainly could, even if that means using it to upgrade another part of your network before it strictly needs to be upgraded.
Why should you upgrade a section of network that doesn't need to be upgraded yet? After all, the old adage "If it isn't broken, don't fix it" is based on some pretty sound common sense. The reason is that even if that part of your network isn't stretched at the moment, the day will surely come – and probably sooner than you think or hope – when it will be under pressure. Use the parts released by one upgrade to build capacity, capability and reliability in other areas – use your existing investment to secure your network's future.
By doing this, you'll not only please your users but also your finance department, by strengthening the return you get on the original investment in the reused network devices.
Your network infrastructure represents a significant investment – both in terms of hardware and software costs, and also in terms of time and effort. Get the best possible return on that investment and deliver the best possible network service to your users by, wherever possible, carefully redeploying retired equipment rather than disposing of it. After all, when it's gone, it's gone
Tuesday 8 June 2010
Use surplus new
Buy 'surplus new' not 'brand new'Never be ashamed to make the most of someone else's misfortune. Well, OK – never is a bit strong. But there is one situation in which I would advise you to do so. Whenever the opportunity allows, buy surplus new, not brand new.
One of my friends is a new car enthusiast. Whenever he replaces his car, it absolutely must be with a brand new one – something about the smell of it, he says. It strikes me as a bit bizarre, especially when I consider the depreciation hit that he suffers each time, but it all seems very sensible to him. I'm at the other extreme: I've only ever bought one brand new car, and lost so much money as a result that I'm almost too ashamed to admit to it, even today. Regardless of how much I earn, I will never again buy a brand new car.
Now, were money no object, we'd all have brand new every time – myself included. And for many, including my friend, the desire for 'brand new' is strong enough to outweigh the significantly higher price that it commands. The thing is, brand new versus used is a false comparison. There is a third option: surplus new.
Surplus newLet's imagine you have a network project under way. You've done your homework and planning, specced out your requirements and it's time to place the order. You know exactly what you need, and if you're anything like me, you're going to want to get it at the best possible price, but without sacrificing specification, performance, quality or warranty. You shop around a bit, but you need to maintain momentum on the project, so you place the order.
At this point, imagine getting a call back from the dealer: "I've just had a customer cancel his order. There's some overlap between his order and yours and I can let you have those items at a reduced price as I need to clear them out of stock." Now whether or not you're by nature an 'Always brand new and only brand new' person this has got to be good news. I can't imagine many situations in which you'd be answering with anything but a resounding "Yes, please!" The same product, with the same warranty, for less money. That's 'surplus new' and the downside is difficult to see, largely because there isn't one.
Excess stock happensThis situation does often arise, for a wide variety of reasons. A typical example would be a customer with an unmissable deadline to hit in relation to a complex network project. It's almost standard practice in such situations to order more than is required of the project's lower cost, longer lead time components, as insurance against any of these being faulty or suffering damage during the build.
Without such over-ordering, the entire project could be held up for months by a single faulty component. Generally such over-ordered product can subsequently be sold back to the dealer, minimising costs. And that, of course, means the dealer has as surplus new product to shift.
Customers cancel orders for other reasons, too. Changes of direction, component delays and hold-ups in other related projects are just three examples. Whatever the reason behind the order cancellation, though, it almost always leaves the dealer with surplus stock.
Dealers are rarely in a position to send the unwanted products back to their manufacturers, and simply putting the excess items into stock is usually not a viable option, for financial reasons. The best option is almost always to sell the products on, quickly. That means reduced prices. And that's good news for you.
When ordering networking products, always ask if the items you need are available from surplus new stock. You could make significant savings.
One of my friends is a new car enthusiast. Whenever he replaces his car, it absolutely must be with a brand new one – something about the smell of it, he says. It strikes me as a bit bizarre, especially when I consider the depreciation hit that he suffers each time, but it all seems very sensible to him. I'm at the other extreme: I've only ever bought one brand new car, and lost so much money as a result that I'm almost too ashamed to admit to it, even today. Regardless of how much I earn, I will never again buy a brand new car.
Now, were money no object, we'd all have brand new every time – myself included. And for many, including my friend, the desire for 'brand new' is strong enough to outweigh the significantly higher price that it commands. The thing is, brand new versus used is a false comparison. There is a third option: surplus new.
Surplus newLet's imagine you have a network project under way. You've done your homework and planning, specced out your requirements and it's time to place the order. You know exactly what you need, and if you're anything like me, you're going to want to get it at the best possible price, but without sacrificing specification, performance, quality or warranty. You shop around a bit, but you need to maintain momentum on the project, so you place the order.
At this point, imagine getting a call back from the dealer: "I've just had a customer cancel his order. There's some overlap between his order and yours and I can let you have those items at a reduced price as I need to clear them out of stock." Now whether or not you're by nature an 'Always brand new and only brand new' person this has got to be good news. I can't imagine many situations in which you'd be answering with anything but a resounding "Yes, please!" The same product, with the same warranty, for less money. That's 'surplus new' and the downside is difficult to see, largely because there isn't one.
Excess stock happensThis situation does often arise, for a wide variety of reasons. A typical example would be a customer with an unmissable deadline to hit in relation to a complex network project. It's almost standard practice in such situations to order more than is required of the project's lower cost, longer lead time components, as insurance against any of these being faulty or suffering damage during the build.
Without such over-ordering, the entire project could be held up for months by a single faulty component. Generally such over-ordered product can subsequently be sold back to the dealer, minimising costs. And that, of course, means the dealer has as surplus new product to shift.
Customers cancel orders for other reasons, too. Changes of direction, component delays and hold-ups in other related projects are just three examples. Whatever the reason behind the order cancellation, though, it almost always leaves the dealer with surplus stock.
Dealers are rarely in a position to send the unwanted products back to their manufacturers, and simply putting the excess items into stock is usually not a viable option, for financial reasons. The best option is almost always to sell the products on, quickly. That means reduced prices. And that's good news for you.
When ordering networking products, always ask if the items you need are available from surplus new stock. You could make significant savings.
Wednesday 5 May 2010
Exploit manufacturers promotions
How to gamble – with a hidden advantage"Oh, I don't bet. I'm not into gambling." I've heard it a hundred times, My response? Bunk. We're all gamblers to one extent or another. Standing at the roulette table or the race course with your last tenner staked is extreme, but day-in, day-out, we all gamble. And, let's be honest, life would be pretty dull if we never took any risks, wouldn't it?
A classic example of this is our reaction to sales promotions. When we see a 'three for the price of two' offer at the supermarket, we're immediately weighing it up: "When will the offer end? How does the price work out per item? Is it worth buying six? Or nine? Have I got space to store them? Will I use them before they go off? What if the price comes down next week, or there's a different offer on?" We're gambling. We're assessing risk in order to decide which course of action to take.
Hone your skillsGambling is a skill. And like any other skill, the more you exercise it, the better you get at it. Take a game like poker. There's always an element of risk – it would hardly be gambling otherwise – but the more you play, the better you get at reading the game and judging the risks and opportunities.
So, what does this have to do with networks? Well, any network manager who's been in the business for any length of time knows that setting up and maintaining a network is a game in which you can win, or lose. When you win – when you get a great deal on something – the feeling of satisfaction and achievement is wonderful. Losing is less wonderful! When buying new devices or software, whether for a small extension to your existing network, or to set up an entirely new one, there are a number of angles to play to keep you ahead of the game. You have to gamble.
Play those angles right and stay ahead of the game and there are serious cost savings to be had.
The right time to buyIt's vitally important to buy at the right time. That means any time when the manufacturer is running a sales promotion on the items you need to buy. The wrong time to buy is when demand is high, stocks are low, or a new product is on the way but not out yet: at such times the manufacturer has no need to run sales promotions. Demand is high, and they will happily satisfy it at high prices. Sales promotions cost manufacturers money, and while they're happy to bear that cost in return for a benefit – perhaps increased share in a particular sector or shifting excess stock, they won't bear it when they don't need to.
The other side of the coin, of course, is that sales promotions mean savings for you, the customer. To benefit it's essential that you know, in advance, which products are most likely to be of interest to you, should they be available at promotional pricing in the future. That's a matter of research – know what you need and you can snap it up when it's offered at a reduced price.
Read your junk mailYou also need to be in direct contact with (and carefully watching) the outlets which provide the items on your list. This is where junk mail should not be junked, at least not until you've checked it carefully for the items you're after. It's a matter of knowing your network and watching the market – the equivalent of keeping an eye on the Racing Post or Sporting Life. Arm yourself with knowledge. Keep your finger on the networking pulse.
Finally, planning is all-important. Knowing the technologies that you will need for your network later this year and next will put you in a position to identify the products that should be on your wish-list. When items on your list come up as special offers, you can allow yourself a pat on the back, but hold back any desire to leap in the air and whoop for a while longer. This is the point to keep a poker face and play it cool. If there's a sales promotion on, there may will be the potential for further discounts as well. Most manufacturers, when running a promotion, accept that there will be a few 'low-ballers' in the market, keeping additional discount in reserve for such customers. They're playing the numbers game. While I wouldn't get over-excited at the likelihood of additional discount on an order for one or two units, if you have a quantity order to place, you are exactly the sort of customer the manufacturer is looking for, and should make the most of it, pressing them for as substantial a discount as you can.
The golden rulesSo, remember the golden rules of gambling on sales promotions. Know your network and the technologies you're going to need in the next year or so. Know the market – who sells what, at what price, including the products on your wish list and any alternatives. Watch the suppliers, looking out for promotions on the products on your list. And be prepared to haggle hard for extra discount.
Go on. Have a flutter.
A classic example of this is our reaction to sales promotions. When we see a 'three for the price of two' offer at the supermarket, we're immediately weighing it up: "When will the offer end? How does the price work out per item? Is it worth buying six? Or nine? Have I got space to store them? Will I use them before they go off? What if the price comes down next week, or there's a different offer on?" We're gambling. We're assessing risk in order to decide which course of action to take.
Hone your skillsGambling is a skill. And like any other skill, the more you exercise it, the better you get at it. Take a game like poker. There's always an element of risk – it would hardly be gambling otherwise – but the more you play, the better you get at reading the game and judging the risks and opportunities.
So, what does this have to do with networks? Well, any network manager who's been in the business for any length of time knows that setting up and maintaining a network is a game in which you can win, or lose. When you win – when you get a great deal on something – the feeling of satisfaction and achievement is wonderful. Losing is less wonderful! When buying new devices or software, whether for a small extension to your existing network, or to set up an entirely new one, there are a number of angles to play to keep you ahead of the game. You have to gamble.
Play those angles right and stay ahead of the game and there are serious cost savings to be had.
The right time to buyIt's vitally important to buy at the right time. That means any time when the manufacturer is running a sales promotion on the items you need to buy. The wrong time to buy is when demand is high, stocks are low, or a new product is on the way but not out yet: at such times the manufacturer has no need to run sales promotions. Demand is high, and they will happily satisfy it at high prices. Sales promotions cost manufacturers money, and while they're happy to bear that cost in return for a benefit – perhaps increased share in a particular sector or shifting excess stock, they won't bear it when they don't need to.
The other side of the coin, of course, is that sales promotions mean savings for you, the customer. To benefit it's essential that you know, in advance, which products are most likely to be of interest to you, should they be available at promotional pricing in the future. That's a matter of research – know what you need and you can snap it up when it's offered at a reduced price.
Read your junk mailYou also need to be in direct contact with (and carefully watching) the outlets which provide the items on your list. This is where junk mail should not be junked, at least not until you've checked it carefully for the items you're after. It's a matter of knowing your network and watching the market – the equivalent of keeping an eye on the Racing Post or Sporting Life. Arm yourself with knowledge. Keep your finger on the networking pulse.
Finally, planning is all-important. Knowing the technologies that you will need for your network later this year and next will put you in a position to identify the products that should be on your wish-list. When items on your list come up as special offers, you can allow yourself a pat on the back, but hold back any desire to leap in the air and whoop for a while longer. This is the point to keep a poker face and play it cool. If there's a sales promotion on, there may will be the potential for further discounts as well. Most manufacturers, when running a promotion, accept that there will be a few 'low-ballers' in the market, keeping additional discount in reserve for such customers. They're playing the numbers game. While I wouldn't get over-excited at the likelihood of additional discount on an order for one or two units, if you have a quantity order to place, you are exactly the sort of customer the manufacturer is looking for, and should make the most of it, pressing them for as substantial a discount as you can.
The golden rulesSo, remember the golden rules of gambling on sales promotions. Know your network and the technologies you're going to need in the next year or so. Know the market – who sells what, at what price, including the products on your wish list and any alternatives. Watch the suppliers, looking out for promotions on the products on your list. And be prepared to haggle hard for extra discount.
Go on. Have a flutter.
Tuesday 6 April 2010
Choose a reliable supplier
Choose a supplier who can handle a crisis
When your network is working well, the best supplier might seem to be the one offering the keenest prices, the swiftest delivery or the latest technology. Don't let the good times fool you, though: you may find that when problems arise, your supplier can't cope.
I've worked in the network industry for 13 years, so it's probably not surprising that I've seen several well-known names come and go. They've all either been swallowed up in large scale purchases – usually by larger manufacturers – or fallen by the wayside. Most of those that went out of business did so not for want of innovation or as a result of choosing the wrong technology direction. They failed because, either in their products or in their service, they didn't deliver that good, old-fashioned business essential: reliability.
Reliability is key
Back in the late 90s networks were moving from the then standard Thicknet to the new 'Fast Ethernet'. As is the case at the introduction of any new technology, for most network managers, slow but reliable was more far more desirable than quick but unreliable. There is, after all, no point in having the fastest car around if it's for ever breaking down.
Of course, no technology is ever one hundred percent reliable, but devices that fell over constantly or repeatedly needed patches or firmware upgrades were going to be unacceptably disruptive.
That was the case even ten years ago, when business was nothing like as reliant on communications technology as it is now. Today communications technology sits at the top of the business model tree, and it's likely to remain there until long after you and I have enjoyed our time here. If reliability in your network manufacturer and supplier was important ten years ago, then it's nothing short of vital today. I would rather have a Voice over IP system that reliably operates at 95% sound quality than one that delivers 100% quality most of the time but every so often fails completely. If I couldn’t get to my emails or take a phone call because this system or that was down it wouldn't be that long before you'd see me heading for the nearest travel agent out of sheer frustration. Like it or not, we are all dependent on reliable communications technology.
Swift solutions are vital
At the root of this is the simple fact that time is usually the most expensive commodity in any business. As soon as a network device fails, the clock starts ticking and the costs start building – costs relating not only directly to the failed network segment itself but also those relating to a host of other business areas whose normal operation is impacted by the failure. The knock-on effect is virtually unmeasurable.
The bottom line is that when a failure occurs, a solution needs to be designed and implemented as swiftly as possible. It's in such situations that network manufacturers and suppliers show their true colours.
The right manufacturer
It's all well and good having a network manufacturer show you their high speed, feature-rich goodies to tempt you into choosing their products. If they or their products don't have a track record of reliability, though, then specifying their products could well be storing up trouble for the future.
The nature and severity of that trouble will depend on exactly where in your network you install their products. Perhaps, in a non-critical area, such a risk may be worth taking in order to realise cost savings or some other benefit. Make sure you're clear on the risks before you take them, though. Plug the product name and keywords such as "faults", "problems" and "field notices" into your favourite search engine and see what comes up.
The right supplier
Identifying a good supplier or dealer is a much tougher job, so how do you go about it, if your current one isn't up to the job? Sadly, there are plenty of suppliers out there who take a rather short sighted view of their business, focusing purely on the bottom line. Happily, there are gems among the also-rans: suppliers who understand that the only way to build a business that's successful over the long term is to focus on outstanding customer service. The challenge, of course, is to find those gems.
It's very easy to accept second-best, claiming "Better the devil you know." The problem with that is that devils you know are still devils: if your supplier's service is mediocre when nothing's going wrong, there can little hope for a speedy and effective resolution when things do go awry. Of course, you can choose to wait until disaster strikes to find out how they'll perform, but that's certainly not a risk I'd like to take with my business.
Your network will fail
Benjamin Franklin famously said that there are two things of which we can be certain: death and taxes. In the Network world there is one more: at some point, your network will fall over. I've seen it happen many times, and it's always a time of mixed feelings for me. On the one hand, I'd much rather no one had to go through the stress of such a situation, but on the other, a crisis of this sort fires me up – I really get a buzz out of tracking the problem down and devising solutions that will get the customer back up and running, quickly and reliably.
In some walks of life there isn't always a solution to every problem. In the network world there always is – indeed there's almost always more than one. The tricky thing is finding the right solution for the situation at hand. It's that process of problem identification and resolution that really gives me a buzz. There may be a failed component for which there's no replacement available quickly enough, unexpected complications arising from a software upgrade or any of a hundred other possible causes for the failure. Whatever the problem, the right decisions need to be made fast.
A 'customer first' attitude
You need a supplier who can make those decisions quickly and effectively. That demands years of experience and a 'customer first' attitude. You'll get hints as to whether your current supplier has what it takes in the way they work with you from day to day. If it's apparent that you're just putting up with them, I'd strongly advise you not to do so for any longer than you absolutely must. That network disaster could strike at any time, and you want to be working with the best when it does.
Shop around. Read reviews. Ask your industry contacts for their recommendations and for feedback on specific suppliers. See what's being said on the online forums.
You don't need to put all your eggs in one basket or commit yourself before you're sure of the right supplier to go with: you could bring in a new supplier alongside your current ones, to keep them on their toes, for example. But keep your eyes open and your ear to the ground: you might just meet the new networking love of your life and choose to move on.
When your network is working well, the best supplier might seem to be the one offering the keenest prices, the swiftest delivery or the latest technology. Don't let the good times fool you, though: you may find that when problems arise, your supplier can't cope.
I've worked in the network industry for 13 years, so it's probably not surprising that I've seen several well-known names come and go. They've all either been swallowed up in large scale purchases – usually by larger manufacturers – or fallen by the wayside. Most of those that went out of business did so not for want of innovation or as a result of choosing the wrong technology direction. They failed because, either in their products or in their service, they didn't deliver that good, old-fashioned business essential: reliability.
Reliability is key
Back in the late 90s networks were moving from the then standard Thicknet to the new 'Fast Ethernet'. As is the case at the introduction of any new technology, for most network managers, slow but reliable was more far more desirable than quick but unreliable. There is, after all, no point in having the fastest car around if it's for ever breaking down.
Of course, no technology is ever one hundred percent reliable, but devices that fell over constantly or repeatedly needed patches or firmware upgrades were going to be unacceptably disruptive.
That was the case even ten years ago, when business was nothing like as reliant on communications technology as it is now. Today communications technology sits at the top of the business model tree, and it's likely to remain there until long after you and I have enjoyed our time here. If reliability in your network manufacturer and supplier was important ten years ago, then it's nothing short of vital today. I would rather have a Voice over IP system that reliably operates at 95% sound quality than one that delivers 100% quality most of the time but every so often fails completely. If I couldn’t get to my emails or take a phone call because this system or that was down it wouldn't be that long before you'd see me heading for the nearest travel agent out of sheer frustration. Like it or not, we are all dependent on reliable communications technology.
Swift solutions are vital
At the root of this is the simple fact that time is usually the most expensive commodity in any business. As soon as a network device fails, the clock starts ticking and the costs start building – costs relating not only directly to the failed network segment itself but also those relating to a host of other business areas whose normal operation is impacted by the failure. The knock-on effect is virtually unmeasurable.
The bottom line is that when a failure occurs, a solution needs to be designed and implemented as swiftly as possible. It's in such situations that network manufacturers and suppliers show their true colours.
The right manufacturer
It's all well and good having a network manufacturer show you their high speed, feature-rich goodies to tempt you into choosing their products. If they or their products don't have a track record of reliability, though, then specifying their products could well be storing up trouble for the future.
The nature and severity of that trouble will depend on exactly where in your network you install their products. Perhaps, in a non-critical area, such a risk may be worth taking in order to realise cost savings or some other benefit. Make sure you're clear on the risks before you take them, though. Plug the product name and keywords such as "faults", "problems" and "field notices" into your favourite search engine and see what comes up.
The right supplier
Identifying a good supplier or dealer is a much tougher job, so how do you go about it, if your current one isn't up to the job? Sadly, there are plenty of suppliers out there who take a rather short sighted view of their business, focusing purely on the bottom line. Happily, there are gems among the also-rans: suppliers who understand that the only way to build a business that's successful over the long term is to focus on outstanding customer service. The challenge, of course, is to find those gems.
It's very easy to accept second-best, claiming "Better the devil you know." The problem with that is that devils you know are still devils: if your supplier's service is mediocre when nothing's going wrong, there can little hope for a speedy and effective resolution when things do go awry. Of course, you can choose to wait until disaster strikes to find out how they'll perform, but that's certainly not a risk I'd like to take with my business.
Your network will fail
Benjamin Franklin famously said that there are two things of which we can be certain: death and taxes. In the Network world there is one more: at some point, your network will fall over. I've seen it happen many times, and it's always a time of mixed feelings for me. On the one hand, I'd much rather no one had to go through the stress of such a situation, but on the other, a crisis of this sort fires me up – I really get a buzz out of tracking the problem down and devising solutions that will get the customer back up and running, quickly and reliably.
In some walks of life there isn't always a solution to every problem. In the network world there always is – indeed there's almost always more than one. The tricky thing is finding the right solution for the situation at hand. It's that process of problem identification and resolution that really gives me a buzz. There may be a failed component for which there's no replacement available quickly enough, unexpected complications arising from a software upgrade or any of a hundred other possible causes for the failure. Whatever the problem, the right decisions need to be made fast.
A 'customer first' attitude
You need a supplier who can make those decisions quickly and effectively. That demands years of experience and a 'customer first' attitude. You'll get hints as to whether your current supplier has what it takes in the way they work with you from day to day. If it's apparent that you're just putting up with them, I'd strongly advise you not to do so for any longer than you absolutely must. That network disaster could strike at any time, and you want to be working with the best when it does.
Shop around. Read reviews. Ask your industry contacts for their recommendations and for feedback on specific suppliers. See what's being said on the online forums.
You don't need to put all your eggs in one basket or commit yourself before you're sure of the right supplier to go with: you could bring in a new supplier alongside your current ones, to keep them on their toes, for example. But keep your eyes open and your ear to the ground: you might just meet the new networking love of your life and choose to move on.
Monday 1 March 2010
Buy peripherals from your hardware supplier
Use a one-stop-shop
When buying network devices, which approach is best – entrusting the entire purchase to a single supplier or shopping around for the best deal on each component?
There are, of course, pros and cons to the one-stop-shop approach to general IT purchasing. Buying a complete system from a single vendor has the significant advantage that should something go wrong, that vendor has to sort it out. You don't find yourself dealing with various companies, each denying responsibility for rectifying the fault. On the other hand, shopping around can often result in savings on individual system components.
For network systems, the situation is rather clearer. Broadly speaking, networks break down into hardware, software and cables. Cables are a specialised area, and the majority of network managers have a preferred, tried-and-tested cable supplier, able to supply not only standard, off-the-shelf cables and harnesses, but also bespoke items to meet very specific needs.
Don't go it alone
When it comes to network hardware and software, however, I would advise that, in almost all circumstances, you buy both from the same supplier, especially when purchasing refurbished products.
It's a matter of making use of your supplier's expertise and experience. When redecorating your house (or perhaps your comms room) you can take one of two approaches. Option one is to go it alone, fumbling through colour choices, buying undercoats and top coats, and trying to make sure the paint looks good against your perhaps dubious choice of flooring and woodwork finish.
That's fine if you're a DIY guru. For the rest of us mere mortals, the sensible way to go is to get an expert in to advise on colours, supply the right materials and finish the job to a professional standard. Their reputation is at stake – referrals and testimonials mean new customers for them – so they're going to make every effort to get the job done as well as possible.
You don't have to be Brain of Britain to know that your chances of impressing your friends and family with your newly decorated room will be significantly higher if you get the expert's input, than if you shop around yourself.
Hardware and software compatibility
Coming back to network purchasing, the issue at hand is the tricky matter of hardware/software compatibility. Many products remain on the market for several years, during which time the manufacturer updates both hardware and software several times. One result of these updates is that earlier versions of the hardware may not support later versions of the software. This can cause end users purchasing refurbished hardware no end of problems, especially when early revision devices are specified with later software versions.
In fact, I would take my recommendation a step further: as well as buying hardware and software from the same supplier, make it a supplier that was in the network systems business when the hardware was available new. That way, you get the benefit of the supplier's experience with the device. If there were compatibility issues with the device you're ordering, they will remember them, and will be able to flag them up at the quotation stage. If your supplier does this, hang onto them – it's a sure sign that they're up there with the best.
Don't forget memory
Memory is worthy of particular mention. Shopping around for a memory upgrade may make sense on paper, as there is no doubt that savings can be made. However, complexities can and frequently do arise. The memory may be the wrong type for the device, the firmware revision in use may not support the level of memory being installed, or the memory may simply be the wrong physical shape to fit the space available in the chassis.
The resulting wasted time, multiple phone calls and to-ing and fro-ing between suppliers each blaming the other for the problem add up to significant cost and delay. Such costs and delays need not arise. Purchase your memory upgrades from the same supplier as the hardware devices for which they are intended, and the responsibility for ensuring that the two are compatible rests fairly and squarely with that supplier.
When buying network devices, memory, peripherals and software, always use the one-stop-shop approach. Have your supplier analyse the products you are ordering and ensure that everything works as it should do.
You'll save time, money and stress. You'll reduce the risk of compatibility issues arising, and should end up with a reliable network with fewer problems, as well as the added bonus of no sideways glances and comments from your colleagues or friends about your network configuration. Or the colour of your comms room walls!
When buying network devices, which approach is best – entrusting the entire purchase to a single supplier or shopping around for the best deal on each component?
There are, of course, pros and cons to the one-stop-shop approach to general IT purchasing. Buying a complete system from a single vendor has the significant advantage that should something go wrong, that vendor has to sort it out. You don't find yourself dealing with various companies, each denying responsibility for rectifying the fault. On the other hand, shopping around can often result in savings on individual system components.
For network systems, the situation is rather clearer. Broadly speaking, networks break down into hardware, software and cables. Cables are a specialised area, and the majority of network managers have a preferred, tried-and-tested cable supplier, able to supply not only standard, off-the-shelf cables and harnesses, but also bespoke items to meet very specific needs.
Don't go it alone
When it comes to network hardware and software, however, I would advise that, in almost all circumstances, you buy both from the same supplier, especially when purchasing refurbished products.
It's a matter of making use of your supplier's expertise and experience. When redecorating your house (or perhaps your comms room) you can take one of two approaches. Option one is to go it alone, fumbling through colour choices, buying undercoats and top coats, and trying to make sure the paint looks good against your perhaps dubious choice of flooring and woodwork finish.
That's fine if you're a DIY guru. For the rest of us mere mortals, the sensible way to go is to get an expert in to advise on colours, supply the right materials and finish the job to a professional standard. Their reputation is at stake – referrals and testimonials mean new customers for them – so they're going to make every effort to get the job done as well as possible.
You don't have to be Brain of Britain to know that your chances of impressing your friends and family with your newly decorated room will be significantly higher if you get the expert's input, than if you shop around yourself.
Hardware and software compatibility
Coming back to network purchasing, the issue at hand is the tricky matter of hardware/software compatibility. Many products remain on the market for several years, during which time the manufacturer updates both hardware and software several times. One result of these updates is that earlier versions of the hardware may not support later versions of the software. This can cause end users purchasing refurbished hardware no end of problems, especially when early revision devices are specified with later software versions.
In fact, I would take my recommendation a step further: as well as buying hardware and software from the same supplier, make it a supplier that was in the network systems business when the hardware was available new. That way, you get the benefit of the supplier's experience with the device. If there were compatibility issues with the device you're ordering, they will remember them, and will be able to flag them up at the quotation stage. If your supplier does this, hang onto them – it's a sure sign that they're up there with the best.
Don't forget memory
Memory is worthy of particular mention. Shopping around for a memory upgrade may make sense on paper, as there is no doubt that savings can be made. However, complexities can and frequently do arise. The memory may be the wrong type for the device, the firmware revision in use may not support the level of memory being installed, or the memory may simply be the wrong physical shape to fit the space available in the chassis.
The resulting wasted time, multiple phone calls and to-ing and fro-ing between suppliers each blaming the other for the problem add up to significant cost and delay. Such costs and delays need not arise. Purchase your memory upgrades from the same supplier as the hardware devices for which they are intended, and the responsibility for ensuring that the two are compatible rests fairly and squarely with that supplier.
When buying network devices, memory, peripherals and software, always use the one-stop-shop approach. Have your supplier analyse the products you are ordering and ensure that everything works as it should do.
You'll save time, money and stress. You'll reduce the risk of compatibility issues arising, and should end up with a reliable network with fewer problems, as well as the added bonus of no sideways glances and comments from your colleagues or friends about your network configuration. Or the colour of your comms room walls!
Monday 1 February 2010
Buy end of life products refurbished
When refurbished is better than new
When the time comes to replace any network device, the manufacturer will always recommend that you buy the device's direct replacement - brand new, of course. If you've read a few of these money-saving tips, you may not be surprised to learn that there is a better way.
Imagine it's time to replace your car. You've done your ground work, researched suitable makes and models and spotted your dream machine. It's in the showroom and it's within your budget.
It's just a matter of signing on the dotted line, then, isn't it? Well, no. There's a small complication. The model you've set your heart on is due to be replaced by a new model, due to hit the showrooms next year.
So, do you go ahead and buy the current, end-of-life model at the asking price? I wouldn't advise it. At least, not until you've checked out its availability second hand or at discounted prices from other showrooms. After all at some point in the future you're going to want to either trade it in, or sell it on. You want to make sure you've bought it at the best possible price, or you're kissing your hard-earned money goodbye completely unnecessarily.
Substantial savings
The same principle applies to your network. Substantial savings can be made, way in excess of those that you could have made on the car. Virtually all network manufacturers have their futures planned out in detail - the keen eyed can often spot products which are about to be made end-of-sale, but for which support will continue for several years. Buying such products refurbished rather than new can save you thousands.
Of course, making such forecasts takes time that many do not have, but reference to manufacturers' websites will reveal which products have already been declared end-of-sale. Such information is updated daily, so, before making any acquisition for your network, check to see if the item you're about to order is on the manufacturer's end-of-sale list. If it is, it's likely you have the opportunity to make some serious savings.
Sit behind the curve
While some network managers buy the newest technologies to minimise depreciation at resale, others don't have the time or inclination to research the next big thing, preferring to seek savings through old fashioned cunning and common sense. Sitting 'behind the curve', they purchase products which are almost, but not quite, at the cutting edge.
With a little careful planning they can build a near-perfect solution, which, being a year or so behind the curve, will already have suffered the bulk of its depreciation - and had its bugs worked out.
This is a simple strategy for saving money. You can build a network which is for all practical purposes state-of-the-art - fully up to date on the software front and virtually so on the hardware front - at a saving of some 25% per annum.
A canny customer
One of my canniest customers always waits until any new piece of network hardware has been in the market for at least 12 months before considering installing it - and then they often choose to buy it refurbished. Their preference is always for the market leader, for support reasons, but they would never contemplate using brand new, recently-released products. They understand the need to wait to see if problems arise before committing to new products.
A well-known and highly respected company, they know exactly what they're doing on this front. When the manufacturer declares a product end-of-sale, there will be a period, often as long as five years, during which the product will still be supported. In just twelve months' time, the product will only be available refurbished, so they choose to purchase refurbished right away, enjoying the financial benefits immediately.
Take the time to research end-of-sale products, and consider buying refurbished instead of new. You could save yourself a heap of trouble, as well as a fat chunk of budget.
When the time comes to replace any network device, the manufacturer will always recommend that you buy the device's direct replacement - brand new, of course. If you've read a few of these money-saving tips, you may not be surprised to learn that there is a better way.
Imagine it's time to replace your car. You've done your ground work, researched suitable makes and models and spotted your dream machine. It's in the showroom and it's within your budget.
It's just a matter of signing on the dotted line, then, isn't it? Well, no. There's a small complication. The model you've set your heart on is due to be replaced by a new model, due to hit the showrooms next year.
So, do you go ahead and buy the current, end-of-life model at the asking price? I wouldn't advise it. At least, not until you've checked out its availability second hand or at discounted prices from other showrooms. After all at some point in the future you're going to want to either trade it in, or sell it on. You want to make sure you've bought it at the best possible price, or you're kissing your hard-earned money goodbye completely unnecessarily.
Substantial savings
The same principle applies to your network. Substantial savings can be made, way in excess of those that you could have made on the car. Virtually all network manufacturers have their futures planned out in detail - the keen eyed can often spot products which are about to be made end-of-sale, but for which support will continue for several years. Buying such products refurbished rather than new can save you thousands.
Of course, making such forecasts takes time that many do not have, but reference to manufacturers' websites will reveal which products have already been declared end-of-sale. Such information is updated daily, so, before making any acquisition for your network, check to see if the item you're about to order is on the manufacturer's end-of-sale list. If it is, it's likely you have the opportunity to make some serious savings.
Sit behind the curve
While some network managers buy the newest technologies to minimise depreciation at resale, others don't have the time or inclination to research the next big thing, preferring to seek savings through old fashioned cunning and common sense. Sitting 'behind the curve', they purchase products which are almost, but not quite, at the cutting edge.
With a little careful planning they can build a near-perfect solution, which, being a year or so behind the curve, will already have suffered the bulk of its depreciation - and had its bugs worked out.
This is a simple strategy for saving money. You can build a network which is for all practical purposes state-of-the-art - fully up to date on the software front and virtually so on the hardware front - at a saving of some 25% per annum.
A canny customer
One of my canniest customers always waits until any new piece of network hardware has been in the market for at least 12 months before considering installing it - and then they often choose to buy it refurbished. Their preference is always for the market leader, for support reasons, but they would never contemplate using brand new, recently-released products. They understand the need to wait to see if problems arise before committing to new products.
A well-known and highly respected company, they know exactly what they're doing on this front. When the manufacturer declares a product end-of-sale, there will be a period, often as long as five years, during which the product will still be supported. In just twelve months' time, the product will only be available refurbished, so they choose to purchase refurbished right away, enjoying the financial benefits immediately.
Take the time to research end-of-sale products, and consider buying refurbished instead of new. You could save yourself a heap of trouble, as well as a fat chunk of budget.
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