There are a myriad of options for delivering IT services. Bick helps clear the mist and ensures that our clients understand the sourcing taxonomy before any detailed analysis begins. The industry’s use of terms has become very gray and often bent to meet a vendor’s needs. We find simply getting a consensus on the definitions of terms is critical.
Bick’s analysis focuses on understanding current state costs that could be affected by altering the ITdelivery model. For example: cost of facility operations may be reduced, but 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 also need to be evaluated as they can create substantial challenges.
Your contract will reflect your prediction of future needs. Therefore Bick emphasizes a rigorous review of current and future state requirements.
The buying strategy for third party service is different than insourcing. The need to factor in largecapacity contingencies when you are requesting capital does not apply to procuring colocation or managed services. Subject to due diligence, the provider should supply capacity when and if you need it.
Our Point of View
- We know that the data center ecosystem is constantly evolving. Due to the situational nature of the market – services, availability and pricing change as well, even at the same location. Think of how airlines sell seats.
- You don’t need the best data center; you need the best data center that matches your business needs.
- Keep in mind; this is an IT delivery model, not a real estate transaction. Your thinking shouldn’t be limited to real estate, nor should you be paying the real estate commission fees calculated on the full term value of the contract that your third-party provider will pass along.
- We know that the laws of supply and demand are currently in the buyer’s favor. However, poor contract terms can turn a good deal bad.
We Work Differently
While we are interested in having long-term relationships, we do not engage in long-term contractrelationships. We prefer to conduct our consulting engagements in modules – defined, fixed fee engagements that address a set of defined issues over a relatively short period of time. Our clients appreciate a stepped approach that allows them to define the specific needs they have for each module.As we complete a module, we have better clarity around what is best to address next. Our clients seek independent advice to solve difficult issues. Consequently, Bick Consulting’s operating model has no business agreements with the vendor community – no software, hardware, services, colocation, outsourcing etc. We are not engaging in a consulting opportunity as a means to an on-going revenue stream.