July 20, 2007

Dell's Managed Services Strategy

My friend Evan Stein, owner of CMIT Solutions in NYC wrote this recently on his blog, about managed services:

You know the break/fix model. Technology breaks, client calls a consultant, consultant fixes problem & bills for work. The problem with this is that the client and their trusted consultant are actually working at odds with each other. The consultant only makes money when the client's technology breaks. There's very little inspiration for the consultant to keep the client's systems running efficiently.

The Managed Services model puts the technology expert and the client on the same team. The focus is on preventative maintenance, efficiency, stability and security. With the flat-rate model, it's in both parties interest to keep the systems running as efficiently as possible. Problems mean downtime for the client and higher costs for the technologist.

What I found so interesting about Evan's post was that it's so true. Some things you do but don't really think about it. Paying for computer repair when you could have paid less to keep it from braking down in the first place is simply idiotic. This is not the first time I've heard this, but it's good to be reminded.

Instead of waiting for something to grow wrong with your computer systems, your IT consultant should pro-actively ensure you have enough memory, that your hard disk space is not too low, that you have the latest applications and patches you need and etc.

This is what managed services is all about. The interesting thing, is that Dell knows this and it fits perfectly into their direct model. To enhance their offerings in this area they're buying a leading managed services provider - Silver Back Technologies.

Dell already offers a full suite of managed services and this purchase will be integrated into its existing offering to make it more robust.

Although Dell is becoming more channel friendly, it's still wants to rely on a direct relationship with its customers - just as Michael Dell started it in 1984.

The big question for you? Will you give Dell your business - products and servcies or go through a local technology consultant.

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