What's the Word? Tell Me What's A Happening.

Recent legal decisions based upon the XML (Extensible Markup Language) used in Microsoft Word 2007 appear to have put a stagger in the step of the software giant. A recent ruling by the Washington, D.C.-based U.S. Court of Appeals for the Federal Circuit upheld a U.S. District Court for Eastern Texas judge's injunction in favor of Toronto-based software developer, i4i, Inc.

The Associated Press summarized the situation quite nicely on December 22, 2009:

"Toronto-based i4i Inc. sued Microsoft in 2007, saying it owned the technology behind a tool in the popular word processing program. The technology in question gives Word users an improved way to edit XML, or code that tells the program how to interpret and display a document's contents.

A Texas jury found that Microsoft Word willfully infringed on the patent. Microsoft appealed that decision, but the U.S. Court of Appeals for the Federal Circuit on Tuesday upheld the lower court's damage award and the injunction against future sales of infringing copies of Word."

What will happen on January 11, 2010?

Whatever occurs on that date will probably be as eventful as Year 2000--some users will be affected by the inconvenient changes that are mandated upon them by change; however, the general population is not likely (as per Microsoft) to be significantly affected. Microsoft, in its modest scale, has already perceived and addressed the potential turnouts of the judgment, thus it is issuing the 2007 Microsoft Office OPK Master Kit Download. This kit and its functionality will strip Word and other Office programs of the custom XML editing capabilities.

What exactly is the patent about?

Nothing in the press has been very explicit, but the hullaballoo is about patent number 5,787,449 which describes how programs go about "manipulating a document's content and architecture separately." What exactly does this mean? Without being a patent attorney or software programmer, it is difficult to state; however, Microsoft commented on Tuesday that "it had put the wheels in motion to remove this little-used feature." The same statement added that Microsoft's upcoming Word 2010 and Office 2010 "do not contain the technology covered by the injunction."

What did the ruling cover?

The ruling means Microsoft cannot sell versions of Word that can open documents saved in .XML, .DOCX, or .DOCM formats that contain custom XML. According to Paul McDougall (Information Week, 12/23/09, "Microsoft Word Gets Facelift"), Those formats were at the heart of the patent dispute. DOCX is the default format for the most current version of Word, which is included in Microsoft Office 2007. Custom XML is used by businesses to link their corporate data to Word documents. The Court left an out for Microsoft. The company can continue to sell Word 2007 after January 11 if it removes the offending technology from the product. By virtue of its recent patch release, it appears that Microsoft is willing to comply with the order.

Who wins?

It appears the winners in this case would be i4i as it gets its share from the suit and to some extent will get some recognition as a possible benefit (and the lawyers that processed the case). Microsoft, on the other hand, will have to pay a $290 million fine (they will probably present additional appeals), and the end users will either be compelled by a forced "update" to revise their installed applications or will have to revise some code once they determine that they actually used the little-used feature.

Although we do not normally report on news items, we felt that this item was worthy of note. Hopefully, it will not adversely affect most of you, but if further insights should arise, we will do our best to keep you well assessed of the situation. If you feel that there is a subject that you deem merits our attention, please feel free to notify us at info@tech4now.com. For more information about a technical subject or for insights to improve your business' productivity, feel free to visit our website at www.tech4now.com. Happy holidays and a Happy 2010.

How Can I Tell Who's Been On My Computers At Work?

A client recently posed the following question:

"I have a small office with about ten users in a large office building. These users often leave their desktop computers unattended while they leave for lunch, go home at night or attend meetings. I am concerned that the computers near the reception area are not only unattended, but may possibly be compromised by strangers who could just walk in. What can I do to help reduce the likelihood of someone breaching my network and accessing confidential data?"

Review the situation...

First of all, you need to educate your users in general security awareness for your office. Larger office buildings provide a situation in which unauthorized individuals may gain access to restricted areas in an inconspicuous and anonymous manner. The fact that you have a computer in the reception area and do not limit access to it, is already a modest concern.

Initial thoughts...

A Password Policy would provide you with a prime opportunity to expose your users to the risks inherent in "unprotected computer use." This document, by virtue of making it a condition of employment will require the staff members to become more aware of the concerns that you, as management, carry while enforcing their cooperation for the benefit of the company. Too many companies have users that have a lax attitude toward securing the computer at work; for them, it is an inconvenience.

What's involved in the process?

1. Draft an outline

In it provide an overview of the who, what, where, when and why involved. It must be simple to read and understand, but should be comprehensive enough to help you get your objective.

2. Define a purpose

If the staff reads the policy (and even if they sign-off on it) and don't clearly understand why it is in place, you will be wasting your time and aggravating them.

3. Provide a scope

Anyone who must comply with the policy must not only be made aware, but those who work with them must see that the policy applies to all that work with confidential information or client personal information or enables the office to comply with HIPAA or SOX, ensuring that all systems that reside on the company network are protected.

4. General - Passwords subject to Policy

It should be clear to all users which passwords are subject to scrutiny under the policy and the frequency by which the passwords should be changed. Enumerate the cases where it applies such as Admin Passwords, User Passwords for e-mail, web access, system access. Let the admin passwords change quarterly and the user passwords change semi-annually.

5. Guidelines

A. Provide general guidance to the composition and selection of the password.

B. Inform the number of generations required before a password may be reused, if ever.

C. Provide a format for the complexity:

i. No username may be incorporated into the password (e.g., Fred1234)

ii. The password must contain uppercase, lowercase, numbers and special characters to comply and be allowed as a valid password.

iii. It should not be a word found in the dictionary (due to dictionary attacks).

iv. Make it clear how long the password length must be in terms of characters (e.g., 8 to 15 characters long)

v. If using a passphrase, the length should be significant and should comprise as many aspects of difficulty as possible. For example "I try not to drive down Route 208 South during the rush hour." could convert into: "1#tRy_n0+$to#DrvDwN_R+2o85_DrnGdaRUSHOWER!"

vi. If a user suspects that the password may have been compromised, all involved passwords must be changed immediately.

vii. Where resources are available, attempts to guess the password should be employed and, if guessed, the password must be changed immediately.

D. Inform the users how to maintain a secure password.

i. Do not write the code on a Post-It note affixed to the monitor or under the keyboard.

ii. Do not share passwords with colleagues inasmuch as it helps identify individual accesses.

iii. Do not send password information in correspondence whether printed or electronic.

6. Enforcement of the Policy

If the users are advised of the ramifications of non-compliance, they will be more adherent to the Policy. Violations should be subject to disciplinary action, up to and including termination.

What Else Can I Do To Communicate The Importance Of This Policy?

In general, if the user does not change the password on his/her own, you may enforce the change through system policy. The user would login to the account on the day it expires and would be informed that a new password must be provided before proceeding onto the system.

In addition to this, if a user has changed the password, but forgets the code, enforce a lockout of account for X number of failed login attempts. This will not only force the user to maintain their level of compliance with Policy, but will reduce the system's exposure to a hacking attempt.

Another facet to the system policy would be to set the default on the system to deny remembering login names and/or passwords within applications such as Internet Explorer and other browsers.

The extent to which users will comply with a Password Policy are directly correlated to the costs of non-compliance. If you establish and enforce a strong policy, it will reward you with greater compliance and a more secure network. The level of complexity and inconvenience is totally discretionary; however, the more lax the policy, the greater the risk for exposure. There are clearly many more aspects to security that may be layered upon the users (e.g., Two Factor Authentication (TFA) using a PIN and a time-sensitive code).

If you wish to implement a more stringent Password Policy in your office or would like to learn more about using a TFA in your network, feel free to contact us at support@tech4now.com or call us at (201) 797-5050. This is your opportunity to maintain your network's security and your strategic edge over your competition. If you want to maintain or upgrade your network, visit us at http://www.tech4now.com/. Remember, the best time to act is now because tomorrow never arrives.

I Backup On Tapes, So My Network's Secure, Right?

The Opening Scene...
Your business has a server with a tape drive. You have been using this drive for the past three or more years to backup a full image of your server's data. It has become a regular step in your day to swap out the drive and confirm that your backup was successful. You even replace all of the tapes in the weekly rotation based upon manufacturer's recommendations. You may have even performed test restores from your tapes to verify their usefulness. You feel secure, but are you?

The Plot thickens...
Stop to consider how a tape drive works...
Data is copied from the drive, a reliable, high-speed, long lasting medium and gets written to a tape. The tape is a nylon/plastic-based ribbon which has a metal oxide coating capable of retaining information in a magnetic form. It can move quickly past the recording heads, but must perform all steps sequentially. Remember, as the information is written to the tape, the written tape is spooled onto a spindle. So, the question emerges... If so many people have been using tape for so many years, why should I begin to question its use in my office for backup?

Considerations...
Have you read any flyers lately from the computer or office supply stores? The price of hard drives has dropped dramatically in the past three years. Three to five years ago, the average computer came with a hard drive that was about 40GB in size. Now, the smallest drive you can get from these stores without special order is 160GB and it's getting larger all the time.

Moore's Law and Kryder's Law (compliments of Wikipedia):
Named after Intel's co-founder, Gordon E. Moore, the law describes a long-term trend in the history of hardware computing, in which the number of transistors that can be placed inexpensively on an integrated circuit has doubled approximately every two years. Whereas, Kryder's Law, named after Mark Kryder, Seagate Corp.'s SVP of Research and CTO, drawing from Moore's Law, says that magnetic disk areal storage density doubles annually. This held true from 1995 to 2005. Kryder also published a new study through PhysOrg.com which reported if hard drives continue to progress at their current pace, then in 2020, a two-disk, 2.5-inch disk drive will be capable of storing more than 14TB and will cost about $40.

Getting to the Point...
Look at the price of the tape drive and the price of the tapes. Their prices have dropped, but not significantly. Now, consider their reliability and dependability. If a tape is exposed to severe changes in temperature (e.g., Do you store it in your car's glove compartment?), don't you see how the tape may become more brittle and susceptible to breakage? Furthermore, it has been shown that at least once in its existence a tape is bound to fail, either being written to or read. If you have an alternative media that can read and write faster, retrieve data in a non-sequential manner and does not need replacement on a regular interval for a similar or lower cost, wouldn't you consider that a viable option?

Hello Hard Drives
With their prices dropping regularly and their capacities growing at a similar rate, the hard drive has become the new medium of choice for long term backup storage. Another wonderful thing about the hard drive as a storage medium is its ability to respond quickly--its read/write ability is "orders of magnitude" faster than tape. This capability enables the backup systems to store data to backup on 15 minute increments rather than wait for the full backup, nightly, which may take over eight (8) hours to process about 20GB (e.g., DAT and Travan tapes).

Capabilities of backup storage have been further enhanced with the NAS (Network Attached Storage) device. Essentially, a NAS is a hard drive built into an external housing that has its own power and network connectivity. Some NAS devices are even more intelligent and run code to enable them to backup multiple computers and servers automatically, then backup the same items as encrypted data to transfer offsite to secure locations. This offering of an automated, frequent and high-speed backup unit has changed technology's choice from tapes to drives. Even older systems used for backup (e.g., Backup Exec) provided in their later revisions, the ability to run B2D (Backup-to-Disk).

Now What?!
So, you have an investment in tapes. Perhaps, you even bought them a few years ago under our recommendation. Well, you needed to have a backup system in place and at the time that was the best for you. However, times have changed and now this is what we propose...

Assess your business' need for backup based upon the following criteria:

1. Timeliness - How often do you need to perform your backup? How often does data change?
2. Capacity - How much data do you have that needs to be backed up? If you were to backup the server, would that suffice? Do you need to backup other machines, too?
3. Turnaround Time - If your business had a catastrophe, how much time would be required to restore the systems to make the business viable again? How much time could you afford to be down?
4. Dependence - If your server were down, would you be willing to pay a little more to have the ability to virtualize the machine to allow others to access data on a quick turnaround?
5. Scope - How many machines are needed to run the office? Could the business recover if just the server and one workstation were restored?
6. Location - If your office became "off-limits" due to a police action, fire or flood, could you resume operations in either a new location or a temporary venue?

Once you have answered the six questions listed above, you can begin to determine the type of backup system you need to implement for your business. This information will also come in handy when you begin to compile your documentation to support a Disaster Recovery Plan.

If you feel you do not have an adequate backup system in place or are considering an "upgrade," please feel free to contact us to discuss your options. It's your business and your livelihood, don't let it slide for too long or you may have serious issues to contend with. To setup an appointment to review your backup, please contact us at support@tech4now.com or visit our site at http://www.tech4now.com/ or call us at (201) 797-5050. Remember, there's no time like the present.

I Don't Have A Server...I Like My Peer-To-Peer Network

Small businesses tend to stay that way when the Management fears change. For any business, change is an intimidating component of growth, but it is necessary nonetheless. For example, just this weekend, we migrated a client's network from Microsoft Windows 2003 Small Business Server (SBS 2003) to the newer incarnation of the same: Windows Server 2008 for SBS.
Was this a daunting change for my client? In the immortal words of Rowan and Martin's Laugh-In, "You bet your sweet bippy!" But they made the change for the better: The server had limited resources, e-Mail needed better management and resiliency, and remote services needed an upgrade for better security.

Why Not Keep My Peer-To-Peer (P2P Network)?

So, back to the subject of Peer-To-Peer networks. Why are they limiting to the small business?

If you have four, five or more workstations, you are seriously lacking control over your network and it won't improve soon because...

1. E-mail is not saved in a convenient location where it may be backed up nightly or more frequently. Furthermore, you may have "cracks" in your firewall where "strangers" are delivering mail to you without your ability to control it.
   
2. The same goes for your business' critical data. Do you back up all data on all machines at least once every night?! If a single computer were to have a hard drive failure, would you lose critical data that was only stored on that machine? How well will your office recover from such an inconvenience?
   
3. Do you impose any security to limit access to the machines or is it non-existent? You may have a computer sitting unattended in your reception area that would provide a rogue visitor unfestered access to your local network. If it hasn't got security and it's unmonitored...What's to stop that from happening?! Remember, you don't have any passwords or controls on the machines.
   
4. Do you ever need to access your data from home or from elsewhere due to pressing circumstances? If you run SBS 2003 or SBS 2008, you would have the ability to provide your staff and yourself such amenities like Remote Web Workplace (remote control), VPN (remote access), Outlook Web Access (remote web mail from your e-mail server), and Outlook Anywhere (effectively, remote access for your local machines Outlook client).

Do any of these features sound enticing? Are you at all interested in learning more about how you may streamline your productivity and make your business more attractive in the long run?

Perhaps, your greatest concern is that you won't have copies of all of your data when the client needs to get, for example, an old tax return from 2005. Is that what's bothering you? Consider the following scenario:

You are an accountant. You have a plethora of clients that have you preparing their taxes, both personal and businesses. The client expects you to maintain an archive of their taxes in case they either lose them or need additional copies. They may also expect other services from you that cause you expense in storing and retrieving their records.

Now, suppose you had a server and stored all of the clients records electronically on the server. This server would be backed up regularly, both onsite and offsite. Data could be stored on media that would comply with mandated retention schedules. You could access the records without having to contact the archive warehouse to retrieve the box that you believe holds the records in question. Wouldn't this be more conducive to running a successful practice over the hard copy? (Mind you, if hard copy is mandated, then you have other complexities to address, but in many cases, once you have delivered the return to the client, you may often advise them that you will only retain an electronic copy for future use.) If you were to institute such changes, wouldn't that help you get greater order to your life? Would a scan and store document archiving solution fit your needs?

I was dumbfounded...

The other day, I was at a new client. The client happened to be an accountant. He was an intelligent and well-spoken person. In fact, his credentials were quite impressive. Needless to say, when we discussed the concept of backup, his reply surprised me. He retains triplicate copies of all of his clients on floppy disks! I asked him while staring at a tower of stacked disks, how do you keep track of all of the disks and data for your clients? He responded that he knew where each and every needed file could be found. I wondered if he was being as detailed as "the pile on the front left side of my desk" or "under the roof." I am still trying to convince him of the benefits of technology and systems. He says that he is "Old Fashioned," so it may take a while. I believe he will soon recognize that I am not trying to pull a fast one, but introduce him to a better way... only time will tell.

Have you been there or never left?

If you have a small office, practice or other business that you operate and need assistance in coordinating it better, please do not hesitate to contact us. We would be more than happy to help you address your outstanding issues. In fact, if you have five or more computers and have never done business with us before, contact us and we may be able to give you a free network audit to help you determine what you have going for you and against you. We can be reached at (201) 797-5050 or you may learn more about us by visiting our website. Happy Thanksgiving!

What makes Windows 7 stand out from other operating systems

We liked it so much, we put it into our production systems...

Windows 7 is still a new product, but it has had a positive impact on us. We have already installed it in our production system. We have found that the operating system is responsive, has proven to be highly compatible with many of our applications and has a number of tools that truly make our tasks easier.

In terms of response...

We installed the new operating system on a Dell Optiplex 780 with a Duo Core Pentium and 2GB of RAM. Since the initial install (Windows 7 Ultimate 64-bit), we have found that the machine is not only responsive, but boots much quicker than our older XP Professional machines. Mind you, we are clearly not at the point where we would be experiencing "registry bloat", but out-of-the-gate, it just seems to outperform: Accessing the Internet is snappy, loading apps is quick, and working with Quickbooks 2009 is night and day from our experience running it on XP. The program opens, saves and closes with a significant edge over its predecessor.

In terms of compatibility...

Loading up our line-of-business (LoB) apps was fast. However, not all programs were suited for this platform. Our installation of Adobe Acrobat v7.x Standard had some issues. It would allow us to open and read Acrobat files, but the Acrobat Distiller and PDF Printer were not compatible. We made the investment and purchased the latest version of Adobe Acrobat Pro v9.x. It installed flawlessly and has functioned perfectly since we started using it. Microsoft Office, needless to say, has run without issue on the system since Day One. Saving files and accessing locations on the network are non-incidents. Folders, both local and networked, are readily opened as if they were equivalent. We did have a modest issue with security on Windows 7 while loading up our LoB database for CRM (Client Relationship Management). Although the files could be seen, they were not able to open on the workstation. As it turned out, a modest change to the UAC (User Accessibility Control) allowed us to open the file without problems. Had we been on Vista, the UAC could only be on or off. On Windows 7, we have four levels of UAC settings to provide a more granular control over how applications may run on the OS.

The toolset is improved...

One of the features that we have found to be a true timesaver is the Snipping Tool. This handy utility allows you to capture a screen image and save to either GIF, JPEG or BMP formats right from the tool. In the past, you could use a handy tool such as SnagIt, but this app is built-in, so there's no inconvenience. Furthermore, we used to use the Ctrl-PrtScrn key combination to effect the same, but that only saved the file to the clipboard. Now, you can capture and process, effectively, in one step.

Had we been working on a single monitor, such tools as Snap (Instantly arrange two windows exactly side by side), Peek (Look right through open windows to see the icons, gadgets, and anything else on your desktop, all with a simple move of your cursor), Shake (In order to focus on only one window, shake it, and all the other open windows on your desktop will be hidden. Shake again, and they're all back). Instead, we find ourselves using the Pin feature (similar to the Quick Launch in previous versions), Live Taskbar Previews (viewing the running applications by hovering your mouse cursor over the taskbar, you can see all open instances of the app visually), and Internet Explorer 8 (even though it is available for all recent versions of Windows operating systems), we have found ourselves enjoying the Favorites Bar and Accelerators (shortcuts to new and established locations on the web). Rather than enumerate a list, just visit Microsoft's Windows 7 site or our November edition of HTS Insighter.

Not to be premature...

After running multiple installations, using the system for a while, and testing it in real life, we have come to a modest determination that this is a valid platform (unlike Windows ME and, to some extent, Windows Vista). If you would like more information on integrating it into your environment, give us a call, visit us, or drop us a line. We can help you improve your productivity through education and insights.

I Didn't Want Vista, So Why Should I Use Windows 7?

It's been under a month (Oct. 22, 2009) since Microsoft officially released their latest operating system, Windows 7, and the product is actually getting positive reviews. Perhaps, it has been due to the fact that THIS TIME, they have listened to the END USERS and not just the Engineers. Okay, maybe it's just their slogan ("I told them that I wanted.... and they listened. That makes me the boss."). I have better things to do than listen to Madison Avenue's commercial hype. However, this time, it seems to be a truly functional product.

My office had been running the product's pre-release versions on a virtual platform just to become familiar with it. But now, we are running it on our production systems. I guess if we are to speak well of it, you could say we should be "eating our own dogfood."

Loading Windows 7 was a snap. Insert the disk and allow it to run. The installation seemed to take less time than Windows XP did and definitely less than Vista. Once the system was up, I noticed that most of the drivers had already been installed by the OS. Windows XP often required you to install the drivers for the network card, video card, sound card and others after the installation completed.

I also noted that the loading time for the system was conspicuously faster than both of its predecessors. This was clearly a welcome change. The system already has Internet Explorer 8 as part of the initial installation--this was expected. In addition to the upgraded set of tools, Microsoft has shown its acknowledgement of the need for the system to be "backward compatible" with previous Windows. Yes, Vista has an XP Compatibility setting for individual files, but it still fell short of the mark. To address this issue, Windows XP Mode was added to a number of the versions to enable the legacy apps to run side-by-side with the newer apps on the same computer.

I don't see the Windows XP Mode listed in my Startup Menu...

If you need to have Windows XP Mode on the system, it is added in later. Simply, go to the Microsoft Website, type XP Mode in the Search and you are at the site. It took all of four steps to load it: download the Virtual PC, download the XP Mode installation, then reboot. Upon reboot, enter the BIOS and make sure to enable the Virtual features on the systems settings. When the system loads up the next time, open the Windows XP Mode under Virtual PC on the Startup Menu. Configure the settings and...you're up! You now have a full blown installation of XP Pro in which to run your legacy programs. Just a reminder, Windows XP Mode is only available in the Professional, Enterprise and Ultimate versions, so don't expect it if you have Windows 7 from a store with the Home Premium version.

Inasmuch as I am running the 64-bit version of Windows 7, having the XP Mode will be a handy tool for my productivity inasmuch as I have a number of "relic" utilities that I still find valuable. Next time, I shall give you more insights on the features that I find truly beneficial in the added features of Windows 7. If you need to install the program and require assistance or are considering an upgrade, feel free to contact us or visit our website.

Why Use A Managed Services Contract When Calling You When I Need You Is So Much Cheaper?

One of the latest "trends" in the IT industry is called "Managed Services." Basically, it is the equivalent of business insurance for your computer systems--it's a fixed fee, so you can budget your expenses better. Lots of small businesses have been discovering why they would consider paying more as they assess its overall value.

Let's consider the following...

You have a small business that manufactures widgets (yes, I know it's cliché). Your office has a staff of ten that work on all aspects ranging from production through sales. You only have one office. You do not have anyone dedicated as a full time IT person, just a "guru".

The business has been performing well in spite of the economy. Productivity has been maintained at 90% capacity, Sales have risen 10% per quarter for the last eight quarters and the profit margin has been a clean 40% over cost. Life is good.

You have saved money for the past four years by using the owner's college-age nephew, Jimmy, to maintain the systems. Afterall, he was an honor student in high school and is now doing his undergrad in Computer Science at Rutgers. He has fixed things when he was on break and could often walk the owner through repairing issues on the phone. The office is networked and a Server is in place with a domain to control security.

Surprise!!!

You come in to the office on Monday morning, it's the first week of December. The computers are up, but no one can connect to the server and the line-of-business software is not accessible either because the database is hosted on your server and it appears to be "down".

Now, What?!

The owner calls Jimmy. He is in the library studying for finals. His time is fully booked preparing for his exams later on that week. You have a situation that requires immediate attention. The business cannot afford to be down for seven days! Okay, let's find a computer service company that can fix our problem. Keep in mind, you have never or infrequently used any outside support company and now you need them in an emergency. Do you think you are the priority on their customer list? Do they know your systems intimately or will they have to "come up to speed" as they are in the process? How long will this take?

The Costs...

As the clock ticks and you await the arrival of your "tech," it dawns on you that your costs are not only coming out of your pocket to pay the technician, but you have production and opportunity costs, as well. Let's examine some of the details...

Tech comes onsite (emergency rate) to fix server.....$250 per hour (2 hour min.)
The server had corruption on the drive or the drive has gone bad, you will have the cost of the equipment plus whatever time it takes to restore the data from your backup. (It would have been simpler if the power supply had just died!)

What do you mean, you don't have a current backup?! Who was in charge of maintaining the tapes for your server's backup? Was it the owner, the secretary, the administrative assistant or the Production Manager? Oh, yes, it was the Sales Manager, Laura. Laura takes the tapes home to keep them safe, off-site. Where's Laura? We'll have her get the latest tape. Then we remember, she's at a conference and NO ONE has been covering for her.

You finally reach Laura. Her neighbor has the key and she allows you to send someone over to pickup the tape. When the tech gets the tape, it turns out that most of the data that can be read is too old to be of value. The tech has finished working and the server is back up. The company that develops your line of software has been contacted and whatever could be salvaged was restored. You will have to have the clerks and staff reinput all of the data for the last two months!

Let's assess the situation...

The server is known to be down from 8:00a.m. on Monday. No one has performed a stitch of work since they arrived. By the time you reached the tech and got one onsite, two hours passed. The tech determined the cause was from two failed drives in a RAID5 array. So, the two drives must be acquired and the data will need to be restored. No one has access to the accounting, CRM (Client Relationship Management) software, Line-of-Business application or e-mail. For all intents and purposes, your business is closed until further notice. If you recover from this catastrophe, what was the effective cost of this outage in the long run?

It adds up fast...

The tech company charged you for a tech's full day's work on the server. The drives were restored to a working state and the data was restored as well as possible. It also took extra time for the tech to become familiar with your network environment.

Time charged by the Tech Company was 16 hours x $250 per hour = $4,000
The drives to replace the two bad ones were ordered with HIGH PRIORITY at $350 each = $700

The manufacturing of the widgets continued during this ordeal; however, nothing else could be processed.

Your orders for the day were delayed, no new orders could be input into the system, the accounting department could not reconcile the account with the Bank or work on End-of-Month reports for November; Sales could not access its pipeline and management could not track the production, sales and overall reports for the business. In general, the business generates one million dollars ($1,000,000) per year, so the details and tracking are critical to the process.
We had ten employees idle for two days.

Our average business income for the month is $83,333 divided by 22 work days = $3,788 per day x 2 days of downtime = $7,576. Let's go easy and only penalize ourselves by 75% = $5,682(This represents the lost opportunity in Sales, Production and Development.)

Furthermore, the cost of doing business (Salaries, insurance, electricity, heat, rent, insurance) easily cost a minimum of...
Salary for 3 Salespeople (8 hours x 2 days @ $25/hr) = $1,200x 130% (benefits) = $1,560
Salary for 1 Administrative Assistant (8 h x 2 d @ $17.50/hr) x 130% = $364
Salary for 2 V.P.s (8 h x 2 d @ $40/hr) x 130% = $1,664
Salary of 1 Bookkeeper (8 h x 2 d @$20/hr) x 130% = $416
Salary of 2 Phone Sales (8 h x 2 d @$10/hr) x 130% = $208
Salary of 1 R&D Engineer (8 h x 2 d @$40/hr) x 130% = $832
Rent, Liability insurance, electricity and heat for the non-factory floor x 2 d is about $1,200

Oh, and remember, you need to have your clerks RE-ENTER all of the data for the past two months of business. We'll simplify the math and figure 15 days for 3 temps to input the data...
3 Temps (8 h x 15 d @ $7.50/hr) = $2,700.

Final cost (not including emotional distress and wounded reputation): $19,534 for a TWO (2) day outage
...and remember, you are no better off than you were the day before! None of your machines are being maintained, including the server.

What was the alternative?

Had your company been using a Managed Service, then you most likely would have paid a fixed monthly fee for support of the Server and all workstations. Furthermore, those machines would not only have been maintained, but would have been monitored, as well. It is also likely that the services provided would have included onsite and offsite backup to disk for a reliable contingency to such a catastrophic event. Had you been covered by a Managed Services Agreement, it is more than likely that the failure of the first of the two drives or its initial indications of the first drive failing would have been detected--enough to alert the support company that the drive needed replacement. Thus, this situation would have been averted.

How much would this typically have cost?

The average Managed Services Provider (MSP) would have charged monthly from $45 to $125 per workstation and from $450 to $1,250 per server (depending on the features of the offering). So, if we apply these prices to our widget company, we would have seen a charge of $900 to $2,500 per month. If we compare the median numbers to our two day outage we see the following savings have occurred:

$1,700 x 12 months = $20,400 --> Maintained, monitored and backed up systems with guarantees and plans in place to assure a quick and reliable level of coverage.


If you can understand that the provider is motivated to service you regularly to help control costs (e.g., shorter visits = lower maintenance cost), you will see how this model actually aligns the needs of both parties with the benefit of lower cost when the client's systems are running reliably. It's a WIN-WIN scenario!

Versus

$19,534 (only $866 (4.4%) less than the cost of the service (for a year) which would have stabilized an unreliable system that has only been patched! ) Keep in mind, this modest difference represents the maintenance of the server AND the workstations with backup AND constant monitoring AND unlimited support FOR 12 MONTHS!

For an even more powerful statement, envision the same situation with the monthly rate of $900 for the Managed Services. Then, the number would have been $10,800. That means the server outage would have represented over a 180% increase! Not only does this save you money, it becomes even more apparent if you consider the occurrence of two (2) incidences in one year (five years, even)!

Penny-wise and Pound foolish

Many businesses are actually running in a manner similar to our example. Too many of them are closer to failure than they would like to believe. If you are concerned that your company is "on the brink" and would like to have it checked out, feel free to contact us. We can perform a network audit to help you assess any possible shortcomings in your environment and help you to take the preventative steps necessary to avoid such an inconvenience. For more information on this program, please visit www.tech4now.com/offer. If you visit this site, you may receive two free gifts. For more information on technology, please visit our blog and website inasmuch as we update them regularly.

Welcome

Holzsager Technology Services, LLC (http://www.tech4now.com/) has been around for over seven years providing small businesses and SoHo offices with technical support and managed services in the computing and networking realm. Our staff has achieved Microsoft's Gold Certified Partner and Small Business Specialist status.

This blog will serve as a resource for the small business owner (and others) to access a wealth of articles and insights shared by our IT Director, Fred Holzsager. Fred is a published author, accomplished and certified technician, speaker and business owner. He will share his insights on the latest trends in technology affecting the small business and its operations, sales & productivity.

Visit us on a regular basis to view comments on Windows 7, Small Business Server 2008, antivirus/spyware, SPAM filtering, e-mail archiving, Backup, Disaster Recovery, hardware & application software, and other aspects of your daily worries if you run your own business. For more information to help you with your business, we also publish a monthly newsletter...feel free to contact us if you would like to receive a copy. Archived editions are currently online for your perusal.