I talk with a lot of IT directors and CIOs, as you might imagine. Over the years, I’ve come to recognize fair ones from smart ones, myopic ones from visionaries.
Recently, I had the pleasure of speaking with the latter. She worked for a large bank that was looking to update their old NWM (an old framework) to more modern technology.
The old stuff was (sort of) doing its job, but it required about four full-time people to keep it running, and to generate reports from it.
Buying a next generation NWM would be a wash, financially, since modern NWMs cost about as much as the maintenance payments on the previous generation frameworks. But here’s the catch: modern solutions are easier to use, easier to learn, and require far fewer people to maintain and exploit.
It comes down to people costs. I personally hate the “Today, more than ever, IT must do more with less” cliché that fills the marketing literature of virtually all infrastructure management vendors’ literature. What’s new? But technology that allows customers to redeploy resources elsewhere (or a less savory option if you’re an IT professional), provides significant financial benefit.
We have an MSP customer who used to hire an additional IT staffer for every 10 hosted customers. Once they deployed Entuity, that was no longer necessary. They’ve since added 50 customers with no increase in staff. At $80,000 to $125,000 loaded expense per employee, that is a significant shift. About $400,000-$500,000 OpEx for those last 50 customers, by my calculations. That would pay for a lot of software.