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Hidden Costs

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The offers have been piling up on your desk for months. Cheaper Internet, cheaper phone service, and dirt cheap new computers all only a phone call away. Every time you see them you get suspicious remembering what Grandpa used to always say, "If something looks to good to be true, it probably is." Then the inevitable happens your sales have hit a low cycle and profitability is down. You instinctively go searching for ways to reduce your overhead. Suddenly the ads sound convincing and the next thing you know you have called them up and placed an order. A sense of relief washes over you when you think of the money you will save. The euphoria continues to delivery day. The new Internet company arrives on site and connects your new cheaper service. Minutes after you walk out the door your euphoria gives way to a sudden sense of dread. Your cheap new Internet service does not work. The first time you try to get on the Net you are greeted with some indecipherable gibberish from the land of computer nerd.

The Problem

Internet service providers are only responsible for ensuring that their services works to the modem. Unfortunately all businesses that use more than one computer also require additional equipment for the network to function. Routers, switches and wireless access points connect your computers to the outside world. The problem with this scenario is that the ISPs will not configure this equipment for you. Any time your ISP changes your network must be reconfigured to match the new settings required by the new ISP.

Most small businesses do not have IT professionals on staff. Every time a problem arises with the IT equipment and outside service company must be hired. Unfortunately the services of a competent IT professional do not come cheap. After paying for the service call to reconfigure your network, that cheap Internet service has actually cost you a lot of money. The money you spent is far beyond what you saved.

Facts & Figures

  • An IT service provider can cost $125/hr or more.

  • IT can take more than an hour to reconfigure a router to accommodate an new ISP.

  • VPN clients have to be reconfigured every time you change your ISP.

  • Services such as email and your website can also stop working due to a change in your ISP.

The Solution

Business people need answers to IT related questions on a regular basis. Will I need to upgrade the server if I had 3 more employees? Should I upgrade to the latest version of Windows? Should I change my ISP to company x? As detailed above the consequences of these decisions can be unexpected and far reaching. How do you avoid this pitfall. It is quite simple. Before you make any decision regarding the technology in your consult your IT professional. Any competent IT service provider will be happy to provide you with guidance. A two minute phone conversation just may save your business thousands of dollars.

For guidance on the business impact of technology decisions, please contact Binary Business.

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