If it’s broken who’re you going to call?

Unless you’re a specialist, dealing with technology can be a costly distraction. Plenty of help is available, but the trick is to find technical support that best fits your needs and lets you get on with running your business.

Computers, phones, software and networks are a vital part of every modern business. For some people technology is at the core of working life. Designers, writers and bookkeepers can’t operate without computers. Plumbers and sparkies need smartphones. Even if you work outdoors technology puts you in touch with customers and helps you stay on top of paperwork or finances.

Technology isn’t going to go away. If anything, its role is accelerating as it finds its way into more and more areas of our business life. Digital services open up exciting new opportunities, while the Internet and telecommunications mean small New Zealand companies can sell to the world from a home office desktop.

Although you didn’t go into business to be a technology expert, it may feel like that’s where you’ve ended up. Spending time fixing broken computers, getting printers to work, solving network issues or tackling tricky software problems is never going to be the most productive use of your time and energy.

If you find technology a struggle, you’re not alone. Last year Brother International asked American small business owners about their attitudes towards technology. Almost three-quarters said they get a good return on investment from spending on computers and other digital technologies. Yet two-thirds said they felt overwhelmed by technology and had few resources to help them deal with it. Things are no different in this country.

The real cost of technology
If you are like most other small business owners, you focus on the cost of buying technology. There are capital costs such as new hardware: computers, phones, tablets and servers – all items that the IRD regards as assets and allows you to depreciate.

These costs are often only the tip of the iceberg. More sophisticated organisations think of ‘the total cost of ownership’; sometimes written as TCO. Depending on your circumstances the total cost of owning, say, a desktop PC, includes everything needed to get it working in the first place and keep it working over time. The TCO is often three, four or more times what you pay for the hardware in the first place.

Long after you’ve paid for hardware you’ll see money trickle out of your business each month to pay for software subscriptions, Internet or phone connections and various service fees. It doesn’t stop there.

Think for a moment how much time you or your employees spend trying to solve technical problems. Then think what that time is worth. A few hours lost here and there is likely to cost your business more than just that person’s pay — there will be customers not serviced, opportunities missed, and so on.

Roll your own tech expert?
Business owners often think they can get away without paying for technical support. They might rely on a family member “who knows about computers” or an employee who spends all their leisure time playing games and is the closest thing to a technology expert.

This approach worked, up-to-a-point, 25 years ago when systems were less sophisticated and small businesses were not so dependent on technology. It can still work with minor problems, such as finding someone competent to unjam a printer or reconnect cables.

Yet informal help is rarely enough and ineffective when, say, your network mysteriously slows to a crawl or a malware attack hits your server. The cost of downtime while waiting for free technology help to turn up can be higher than the cost of professional support and the results will probably not be as good.

The first port of call for some companies is the fixed-price support offered by big box technology retailers. This may be enough for a trivial problem or a minor repair. For the most part retailers use inexperienced, unengaged and often untrained youngsters. They mainly troubleshoot minor problems. In effect you’re paying money but only getting the same informal service you’d get from a tech-savvy family member.

Another option is to hire someone with the right skills. Salaries for in-house technology specialists start from around $50,000 for a beginner. Generally speaking you need to have between 25 and 50 computer users on your payroll for that to be a cost effective proposition. Neither numbers are hard nor fast; if you run a tech-heavy operation with specialist needs the breakeven point can be much lower.

An alternative is to find someone with other skills, maybe office administration or bookkeeping, who is also able to take on the tech role. More often, in small business the job falls to the boss, who ends up playing tech support on top of everything else. Both are far from ideal. Sooner or later most small and medium-sized companies reach a point where the best option is to find external IT support.

Navigating the IT support landscape
Professional IT support comes in many flavours. You can find companies that will solve specific problems for a fee and get out of your hair. There are others who act more like partners; they’ll advise you on what to buy and how to get the most from your investment, then they will keep things humming. The best are like having your own IT department without the expense.

The simplest form of IT support is known in the trade as ‘break-fix’. It does exactly what is on the label. If something isn’t working as it should, you get on the phone to the service provider. They may be able to fix the problem over the phone; in some cases they can get external access to your PCs or servers and fix them remotely over the Internet. Alternatively, they may send someone to your premises with a box of tools and a head full of knowledge and problem-solving techniques.

Usually a break-fix support organisation will do the job, then bill you an hourly rate for the time spent and any parts used. Charges are higher if an engineer turns up on site. Most break-fix companies do more than simple troubleshooting. They can install equipment, upgrade existing systems, add devices to a network and so on. Often they have a long list of services, each with a price, and each job is treated as a one-off.

Typically break-fix support organisations work office hours, but many offer out of hours service if you pay a premium.

Some break-fix support organisations are contracted to large technology brands. They will repair devices that are still under warranty and are the organisations called on if you pay for an extended warranty when you buy computer equipment. They tend to know those particular products well and will have seen almost every problem you encounter.

The break-fix model works fine for many small companies, especially where there are only a handful of computers or when computer use is unsophisticated.
The downside of break-fix is that the support company is, in effect, only rewarded when things go wrong with your technology. That isn’t the best form of incentive if you want to keep things running. Also there may be a time lag between a breakdown and an engineer turning up. That downtime can be expensive, especially if it means you can’t serve your customers.

The managed service
A more sophisticated approach is to buy a managed service. At first sight this can look like a pre-paid or smorgasbord version of the break-fix approach. You pay a regular fee and get all-you-can-eat break-fix services. But that’s a misunderstanding. The model is quite distinct.

Managed services IT support turns the break-fix model on its head: the support company takes the risk. It will do all the work necessary to keep your systems and devices running, that includes regular preventative maintenance. The goal is to avoid the kind of problems that would mean downtime and a support call. If things do go wrong, the managed support company will fix them. Of course things will go wrong, but managed service support companies work hard to ensure this happens as little as possible.
In other words, while a break-fix support company earns money when things go wrong, a managed service support company faces higher costs. The financial incentive lies in keeping your systems working and the bulk of profits come from you having a healthy network.

Managed service support companies may install monitoring software on your network to track the heath and status of devices and software. In most cases there’ll be early warning signs of trouble before you notice anything odd. Often the support engineer can step in, remotely, and fix the issue. In other cases the engineer may have to come to your premises, this can often be done without disrupting your business.

While the obvious advantage of this approach is fewer breakdowns and less business disruption, managed support teams can also keep your system working efficiently for longer. Often, when support issues first arise they can cause slow-downs or minor disruptions that are not immediately noticed by users. Or if they are noticed, they get dismissed with a “the computers are working slowly today” shrug!

One area when managed support shines is security. A managed service support company can install protective software on a company network, regularly update tools and monitor for security problems. Until recently security was often sold as a separate service, increasingly managed service support companies are building it into their core offering.

Managed support isn’t for everybody. Many business owners feel they don’t get value for money paying someone who appears to do nothing each month. They can see and understand what’s going on with break-fix support. Managed support may be overkill if most years you spend nothing on having problems fixed.

But if you want to stop technology headaches and can’t afford downtime, it’s an investment worth making.