Thursday 15 January 2015

Some IT Pro Business Guidance Pearls

Here are some bits and pieces of business wisdom that I’ve gathered over the years. Much of my initial business formation came from my first employer out here Larry MacDonald while working for Logical Computer Company.

  • Keep a business journal (for me it’s my blog, Twitter, and forum helps)
  • Document everything (take pictures of everything with SmartPhone, use Snip in Windows ALL THE TIME)
  • Create build documentation for everything
    • We have builds for clusters, Exchange setups, Exchange migrations, SBS setups, SBS Migrations, More
  • Be consistent (build documentation helps)
  • Use Tasks in Outlook and on the phone to track everything
  • Be disciplined in tracking, responding, and being present to clients
  • Spend 10%-20% on R&D
  • Spend 10%-15% on lunches, dinners, and such with others
  • Put 10% away for a rainy day
  • Get involved with user groups or start one
  • Get a _good_ accountant and keep them

As far as recurring revenue:

  • IMSNHO, blended is better than full MSP
  • ~$60/User to $110/User for:
    • Server OS patch, Server App patch, and Microsoft App patch/install management
    • Desktop OS patch and Microsoft App patch management
    • A/V Management along with e-mail sanitation (we use ExchangeDefender)
    • Remote Server Monitoring and management included
    • On-site not included
    • Phone and e-mail support beyond 15 minutes not included
  • Offer backup rotation with quarterly full bare metal or hypervisor restore
    • $150-$250 per OS per month
    • Need a dedicated box for this (Intel S1400FP4 with 96GB ECC, and RAID 6 across spindles or SSDs)


  • Non-contract break/fix:
    • $250/Hr immediate response
    • $200/Hr 4 hour response
    • $175/Hr 24 hour response
  • Contract on above
    • 4 Hour response included
    • Immediate response at 1.5 rate
    • Time Blocks offered at discounted rates

*Response being an acknowledgement of the request/ticket.

There are a lot of benefits over time as far as financial stability but also client relationships become a lot more stable and long term with support contracts in place versus a break/fix model.

We soon discover the clients that value our IT services and those that don’t when we move into the above model. What business that runs a fleet does not have a crew of mechanics to maintain that fleet? Why is IT infrastructure any different?

A major plus is in the routines that we build up. Our schedule gets a lot more stable and predictable. While we are still at our client’s beck and call we now have an established set of boundaries as far as how, when, and where the help would be provided.

We can have a few more evenings a week pursuing other things and _not_ looking at screens! ;)

Philip Elder
Microsoft Cluster MVP
Co-Author: SBS 2008 Blueprint Book

Chef de partie in the SMBKitchen ASP Project
Find out more at
Third Tier: Enterprise Solutions for Small Business

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