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New network service option

Flat fee for network health, not support

By James E. Gaskin, Network World
September 06, 2007 12:09 AM ET
James Gaskin
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Ever wondered if your computer support company works as hard and fast as possible to fix your problems? After all, the longer the service call, the higher your bill and their payment.

If the method advanced by IT outsourcer Sinu catches on, you might not have to worry about that any more. Turning the typical support arrangement upside down, Sinu provides your IT foundation for a set price per month, and it claims it will fix anything, and everything, that doesn't work to your satisfaction.

David Owen, one of the three Sinu principals, said, "We provide and support your IT infrastructure for a flat monthly fee, with unlimited support." The founder, Larry Velez, worked for various large enterprises until starting Sinu in 2004. His goal, said Owen, is to provide enterprise-level IT services to small business users.

Small businesses don't often see the level of technical support provided at large companies. When employees start at a large company, a configured computer awaits. Their e-mail, network file storage and backup systems are in place. If they have a problem, a tech comes immediately. The user can't use "bad computer" as an excuse not to work, because someone else takes care of all the problems for them.

Sinu believes it can deliver that level of support to small businesses because 80% to 90% of small businesses use the same type of technology. The company developed a Linux-based server platform which it installs and manages remotely, and provides a hosted Exchange e-mail server for each customer. A contract network of several thousand techs around the country provides the hands-on service needed for installation and any follow up visits.

Owen said that it is in Sinu’s best interest to provide solid infrastructure because if it breaks the company is committing to fixing it for free. Even when it comes to wiring: "If they commit to us, we'll get the best wiring contractor in the area to wire it properly.”

If your server breaks, the company replaces it, no extra fee. And if you outgrow your server, the company says it will add new hard disks or upgrade the server for free.

Sinu charges $125 per user per month. Owen said, "We charge about the same as one hour of support. For 20 people, we cost around half as much as one mid-range IT person as an employee." That's about right, because 20 people means $2,500 per month, or $30,000 per year. Can you hire a full time employee to do your own network installation and support for $60,000? Maybe. Will that one person bring, free, a file server, hosted e-mail service, automated backup, disaster recovery, antispam, antivirus, mobility tools, and remote network connections between offices? Nope.

In essence, Sinu bets you $125 per user per month the network foundation it provides will work. If it doesn't work, the company claims it will fix it, no matter how extensive or expensive. If it does work, then you forget your technology issues and focus on your business.

"A few companies have come and said we just got funded, and we need computers in a week," said Owen. "We worked out what they needed, ordered the gear, installed it when it arrived, and got everything going."

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