Build vs. Insource vs. Colocation Analysis


There are a myriad of options for delivering IT services. First Bick helps clear the mist and ensures our clients that they understand the sourcing parameters before any analysis begins. We find simply getting a consensus on the definitions of terms is critical. The industry’s use of terms has become very gray and often bent to meet a vendor’s needs.

Bick’s analysis focuses on understanding current state costs for those costs that could be affected byaltering the IT delivery model. While cost of facility operations may be reduced, they could be more than offset by increased communications costs. Transition costs can be significant and must be factored in as well. Beyond financial analysis we evaluate risk with the primary focus on security and availability. Technical issues, such as application latency, will need to be evaluated as they can create substantial challenges.

Our Point of View

  • Before exercising vendors and telegraphing intentions that have not been thoroughly vetted, understand the ramifications first. Many organizations seek vendor advice before doing internal feasibility studies. That’s like going to the Corvette club and asking them if they like Corvettes.
  • Many organizations do not have an understanding of their data center TCO. Having the total dollar figure is not sufficiently useful as it is difficult to compare against third-party provider fees. Consider metrics that are similar to the third-party providers’ pricing.
  • Leveraging a third-party provider may result in some reduction of IT staff. Key staff will need to become your resident SMEs who can oversee technical and performance aspects of your provider. This is a skill set shift from operational to managerial roles.

We Work Differently

We spend time upfront with our clients iterating on an SOW until they feel comfortable. In addition to empowering our clients to have significant input into the creation of the SOW, it provides an opportunity to see how we work and get to know us. This build confidence in the relationship and results in a tighter and better financially-targeted SOW.

Our clients seek independent advice to solve difficult issues. Consequently, Bick Consulting’s operating model has no business agreements with the vendor community – no manufacturers, colocation/managed service providers, cloud providers, etc. We are not engaging in a consulting opportunity as a means to generate more revenue from directing you down a certain path.