Skip Links

Network World

  • Social Web 
  • Email 
  • Close

Small businesses moving to the midsized outsourcing providers

Three reasons small businesses are making the move to midsized outsourcing providers
By Dan Twing , Network World , 12/20/2006
  • Share/Email
  • Comment
  • Print

Editor's Note: We regret to let you know that starting in 2007, we will no longer be publishing the Outsourcing newsletter. Starting Jan. 3, you will begin to receive our Network/Systems Management newsletter, which publishes every Monday and Wednesday. That newsletter is also written by analysts at Enterprise Management Associates. If you would like to update your newsletter subscription, or sign up for others, please go to the Subscription Services link below. We thank you for your continued support.

If you would like to information on how to continue to get this content, please register here, and you will be notified of where to receive my future writings on this subject.

The Outsourcing stories that most often make the news are the big company, big outsourcer mega-deals. Even as the mega-deals have given way to mega-multisourced deals, these are the stories we hear the most about. And when these go bad, they get even more attention.

However, the everyday heroes of the outsourcing world are the small and midsized managed services providers (MSP) who support the infrastructure, hosting and integration needs of the thousands of small businesses that are the cornerstone of the economy. Small businesses generally cannot justify the cost of dedicated internal IT resources. Some will have a network administrator to handle the basics, some will just get by as they overwhelm the one person who knows something about desktop configuration or the e-mail server setup. Many need some outside help.

EMA recently conducted a survey of 188 small businesses for a report that will be available in January titled “SME (Small and Medium Enterprises) – Strategies and Priorities.” About 50% were outsourcing some of the their infrastructure or software needs. 41% of those outsourcing were using multiple types of outsourcing including MSPs, Software as a Service, or network services. The most often outsourced function is the Web Services and eCommerce infrastructure. On the rise is outsourcing of accounting and financial software; e-mail hosting; and data backup and recovery services.

I recently spoke to Eddie Spears, a partner at 3T Systems, an MSP with data centers in Denver and Fort Collins, Co. Mr. Spears has seen a trend where small businesses are moving to the midsized outsourcing providers, either moving up from the small three and four person IT support services providers or moving down from the very big MSPs.

  • Share/Email
  • Comment
  • Print
Partner Content

Simplify Your Branch Infrastructure

Learn how to simplify your branch infrastructure while dramatically increasing app performance with Citrix Branch Repeater.

Download the Free Info Kit

Next-Gen Load Balancing

Free Guide: "Next Gen Load Balancing: 8 Things You Need to Handle Today's Network Traffic" shows you the functionality needed in your next load balancer.

Download the Free Guide

Accelerate Your Web Apps by up to 5x

Free Guide: "The Secret to Getting Maximum Speed from your Web Applications." Learn how you can deliver Web apps up to 5x faster.

Download the Free Guide

Comment
Login
Forgot your account info?
Add comment
Anonymous comments subject to approval. Register here for member benefits.
Have a NetworkWorld account? Log in here. Register now for a free account.

Videos

rssRss Feed

Whitepapers

Overcoming Single Provider MPLS Limitations

In this whitepaper paper, Stratecast Partners reviews the limitations associated with a single...

Global IT Integration Strategies for Mergers, Acquisitions & Divestitures

One of the most critical success factors for a merger, acquisition or divestiture is how quickly...

Windows Vista: Necessity and Opportunity

The Vista era of Windows is here. Yet most organizations will retain Windows XP alongside new Vista...

Webcasts

Migrating to Windows Vista: Necessity and Opportunity

The Vista era of Windows is here. Yet most organizations will retain Windows XP alongside new Vista...

CX4: Leading-Edge Midrange Storage for Virtualized Environments

View this webcast and learn how you can enjoy next-generation innovation with UltraFlex technology,...

PoE Plus: Impact on the PoE Market

The standard for Power over Ethernet (PoE), IEEE Std. 802.3af(tm)-2003, advanced networking,...

Special Reports

Get More From Your WAN

Download this Network World Executive Guide and get information that details how real-world...

WAN Optimization: How to rev up sluggish applications

WAN optimization technology is maturing and buyers are more comfortable than ever with tools that...

Network World Executive Guide: Perfecting Application Performance Management

Application performance-management vendors are dangling a new carrot in front of network executives...

Get instant email notification when white papers, webcasts, executive guides are added to our library. Stay informed and up-to-date with the latest on IT Technologies with Network World's Resource Alerts.
Network World,to go. Wherever you are. Breaking news delivered to your mobile device. Select the hottest topics in networking and start receiving Network World on your mobile device today.