Guest Column | November 25, 2013

The Benefits Of Functional Sourcing And Automation

By Justin Crotty, Senior Vice President and General Manager, NetEnrich, Inc.

The convergence of cloud, virtualization, and on-premise technologies is making infrastructure management more complex, and an increasing number of businesses today want to use a combination of cloud-based and on-premise technology solutions to meet their business requirements. This desire — and in many cases, need — for hybrid IT infrastructure is putting increasing pressure on the trusted IT advisor to not only support these offerings, but to find new ways to optimize and cost-effectively manage modern IT environments.

Yet, the greatest challenge for many MSPs and solutions providers lies in measuring the true cost of delivering remote infrastructure management services in a blended environment. It’s a tough nut to crack for many, but when you get it right, the math gets a whole lot easier and profits will soar.

One of the big misses we see when we meet with MSPs and solution provider partners is the use of expensive labor costs for routine and mundane activities such as alert triaging, validation and ticketing, troubleshooting, remediation, and even coordination with third-party vendor tech support. In many cases, expensive L3 engineers are handling these activities for a partner’s clients, which can result in big drains on profitability.

The good news is that despite all this, there is room for optimization and automation, and one of the best ways that MSPs and solution providers can achieve this is through functional sourcing models and automation.

When MSPs and solutions providers automate many of the basic block and tackle IT activities within their services practice, they can radically tip the scales in their favor. The impact is immediate and their highly skilled engineers will love them for doing it. Another perk to automation…again, once a service is truly automated, it can be easily tracked and measured.

MSPs and solutions providers should closely examine the options for leveraging partners to assist them with functional sourcing models and automation, so that they can drive down their costs, increase profitability through recurring revenue streams, and scale their businesses to serve a broader range of clients.

Justin Crotty serves as senior vice president and general manager for NetEnrich Inc. He’s responsible for driving growth and scale for NetEnrich and its partners and customers. Prior to joining NetEnrich, Crotty conceived and launched the services division at Ingram Micro, where his team built and grew the first and most innovative managed and cloud services business in IT distribution. Widely recognized as an IT channel champion, Crotty has held management positions in IT sales and marketing, and began his career as an IT network engineer with IBM.