How to Unlock the Power of Virtualization

Virtualization uses technology to remove the physical barriers associated with computer servers and applications -- enabling the consolidation or replacement of servers, storage, network and other physical devices.

As a result, your business can better use computing capacity and drive more value from IT resources as well as consolidate data centers and significantly lower energy consumption.

For companies who need guidance on a virtualization project, Verizon Business offers these five tips -- culled from the company's years of experience handling complex IT installations and expertise in implementing and managing virtual environments:

1. Make sure you're looking at the big picture: A business should first complete a thorough assessment of its current IT environment and computing resources, including a full review of all servers. Once the enterprise has a better understanding of its infrastructure, it is easier to determine which computing resources, such as servers and devices, are candidates for consolidation.
2. Enlist vendor support: After compiling a list of applications that can be virtualized, it is important to confirm there will be very few, if any, issues with vendor support. Some vendors, especially smaller ones, do not support their software on virtualized platforms.
3. Evaluate licensing costs: When assessing applications for migration, evaluate the licensing costs associated with them. While consolidating multiple servers and devices into a single virtual machine will lower hardware and facility costs, this does not necessarily apply to software licensing costs. Many vendors still charge based on total available power and the number of physical applications. If that's the case, consider working with vendors that embrace more flexible licensing models.
4. Avoid common bottlenecks: Carefully assess the memory and storage requirements for applications moving to the virtual environment. Memory and storage can severely limit how many virtual machines a host can support. A common scenario is an environment with consolidated storage and a high number of mobile BlackBerry users, requiring large memory and storage needs. Therefore, assessment, management and proper allocation of applications per virtual machine are key.
5. Security, security, security: Security should be a top priority; it should be built in from the ground up to ensure the new environment comes with the right safeguards. Enterprises also should pay close attention to relevant industry regulations. For instance, businesses that store, handle or process customer payment information must maintain compliance with the Payment Card Industry Data Security Standard (PCI DSS), a comprehensive set of requirements for enhancing payment account data security. In that case, PCI DSS compliance would be a key requirement for the new virtual environment.
   

"Virtualization holds huge promise for the enterprise," said Michael Marcellin, vice president of Verizon global managed solutions. "Its ability to increase efficiency and agility while managing costs is unparalleled. With that potential, however, comes complexity concerning deployment and implementation. Our hope is that enterprises will take this promising technology to heart and embrace our suggestions -- based on our more than 10 years experience managing complex IT infrastructures -- on how best to utilize it."

Verizon Business offers a wealth of IT and hosting solutions to help customers meet their most-pressing IT needs in today's dynamic business environment. As we've previously reported on the Business Technology Roundtable, enterprise and small-business executives are actively adopting the selective out-tasking of applications to these managed cloud services.

Six Options for Managed IP Communications

Many traditional businesses maintain separate networks for data and voice communication. With a converged voice-and-data network, companies can often reduce costs and gain significant productivity benefits.

However, the cost of implementing and managing the solution internally can be prohibitive. A more affordable option is to out-task IP communications to a managed services provider. This arrangement avoids initial CapEx and provides economies of scale -- because the service provider already owns the required infrastructure.

You can choose from several options for managed IP communications services. The following describes typical managed IP communications service offerings, and how you can apply them.

Business IP Telephony Services
This includes both subscriber and group calling services. Companies that need sophisticated PBX features can use a managed IP telephony service. Many small businesses can also receive the functionality that they require with a managed IP telephony solution.

Site-to-Site Voice
This service is really useful for companies with several branch offices that communicate regularly. A site-to-site voice service enables you to call from one site to another using the service provider's voice-over-IP (VoIP) infrastructure, avoiding long-distance toll costs. You can maintain a private dial plan, including support for simple 4-digit dialing.

Public Switched Telephone Network Access
Access to the traditional public switched telephone network (PSTN) can be enabled centrally over the service provider's network. Central PSTN access provides economies of scale, which, in turn, help reduce your costs.

Unified Messaging
These capabilities enable you to retrieve and respond to voice, fax, and e-mail messages from any phone or PC within your organization. Your team can check any type of message from the same inbox -- either the voicemail box, accessed from a phone, or the e-mail inbox, accessed from a computer. Rules-based call routing and speech recognition can further enhance usage for you, and your callers.

Voice over VPN
This service can reduce toll charges for your telecommuters and mobile team members. Using an IP phone from home, or SoftPhone software on your laptop during travel, you can easily make voice calls over the same, secure Virtual Private Network connection that's used to access data network applications.

Other Enhanced Services
You can also increase productivity by delivering new applications and information directly to your team's IP phones. As part of a managed IP telephony service, providers can provide customized Extensible Markup Language (XML) applications -- for example, to access team calendar information or read news stories relevant to your business.

Contact a managed service provider, to learn more about these IP communication capabilities, and the associated cost savings or productivity benefits. Most providers will have customer case studies for your consideration.

Can You Reach Your IT Manager On Thanksgiving?

As Thanksgiving approaches on November 27, many U.S. companies are heading into an extended four-day holiday weekend.

If you're an executive or CIO ask yourself the following question: If your web servers, databases or network infrastructure failed over the holiday weekend who would you call for help?

Despite the proliferation of smart phones and ubiquitous network services, many IT staff members are impossible to reach over holiday weekends.

And commuting into the office for an IT or network emergency is the last thing most employees have in mind when they sit down for Thanksgiving turkey.

Secure, Safe and Sound
On the other hand, I will rest easy this holiday weekend because our company depends on multiple managed service providers (MSPs) -- a group of companies that remotely monitor, manage and troubleshoot our Web servers, databases and network systems.

In most scenarios, our MSPs mitigate an IT or network issue before it becomes a major problem. We pay a flat monthly fee to our Web host and MSPs for those proactive services.

As a result, my business partner and I will relax with our respective families this holiday weekend -- even as thousands of readers across the world continue to visit our corporate and media Web sites.

Through our MSP relationships we've purchased peace of mind -- which is actually priceless.

Closing the Business Video Communication Gap

According to Matt Cowall at Appia Communications, if you look around the business video communication landscape today, you'll see two extremes in predominant use within the marketplace.

At one end are TelePresence and other highly sophisticated solutions. These are expensive and largely aimed at the enterprise market, but the quality of the video experience is excellent.

At the other end are PC- and Web-based solutions. These products are inexpensive, but often lack the quality and reliability that business users require.

Mid-Market Video Requirements
Somewhere in the middle, SMBs and similar organizations hope for the best of both extremes -- high video quality and reliability at an affordable price.

But a recent convergence of circumstances and next-generation technologies appears to be closing the gap in both directions, fueled by:

• The soaring costs, hassles, and inefficiencies associated with travel
• The slowing of the economy, which puts a premium on doing more with less
• The focus on reducing carbon emissions
• Internet Protocol (IP) technology, which cuts video transport costs, especially in comparison with traditional ISDN services
• New video compression codecs
• The emergence of Video as a Service (VaaS)

The Rise in Virtual Meetings

Case in point: in survey results released last month by the National Business Travel Association, travel buyers from over 320 U.S. companies reported a 57 percent increase in the use of videoconferencing, and 81 percent of those respondents said that the increase is due to a deliberate replacement of travel with video.

Video communication is on the rise, but how will "the middle" fully adopt and employ it? What mix of products and services will meet the demand? It will be fascinating to find out. Maybe next time, we can discuss it face to face.

Managed Services Reality Check for Small Business Owners

Somewhere between the economic panic and the managed services craze their resides a simple truth: Now is the time for all small businesses to carefully consider their IT strategies for 2009.

I'm tired of reading wild statements that say managed services and Software as a Service (SaaS) are immune to the economic turmoil. It's far more accurate to say we've reached an inflection point of sorts, where small businesses need to review what they spent on IT in 2007 and 2008 to help their planning in 2009.

Traditionally, many small businesses acquired IT assets -- PCs, servers, networks, applications and other infrastructure that they ran internally. But those acquisitions required big lump-sum capital investments.

During the current economic turmoil, we're seeing a shift in the market. Smart small businesses increasingly depend on IT services.

Much in the same way that they pay flat monthly fees for broadband and cellular services, small businesses are embracing managed services to gain far more predictable -- and far more reliable -- IT options.

Look Back to Get Ahead
If you're a small business owner or manager, take a look at your 2008 and 2007 IT expenses. Be sure to underline purchases involving storage, security and application infrastructure.

Going forward, investigate how those big-ticket items could be shifted (partially or entirely) into the cloud.

Hundreds -- perhaps thousands -- of IT solutions providers now offer managed firewall and managed endpoint security services. And new cloud storage services -- such as Amazon's Simple Storage Service -- can bolster your own on-site storage area networks with key disaster recovery capabilities.

The trend certainly includes any applications you're seeking to license or "purchase." I am not suggesting that all on-premise applications will shift to the cloud. But before you build -- or buy -- your next business application, check to see if it already exists on the Web. Chances are, it does.

Small Businesses: The Greatest IT Innovators of All?

When you're a start-up company or a small business, you enjoy a key freedom: You don't have any legacy equipment and you can make sure your IT dollars drive innovation.

But over time -- as your staff, network and application infrastructure grows -- you'll wind up spending more and more IT budget on maintenance rather than innovation.

According to various estimates, mature businesses spend anywhere from 80 percent to 90 percent of their IT dollars maintaining systems they already have in place. That's pathetic. And it's also impractical. Small businesses must either innovate or die.

So, how can a small business remain focused on innovative IT solutions? I've found the answer in my own company. Generally speaking, we outsource just about every piece of IT possible. Here's how we do it:

1. Get Predictable: We seek managed service providers, web hosting companies, developers and other partners who can handle day-to-day maintenance issues at a reasonable, predictable monthly cost.

More than 90 percent of PC and network issues can now be solved remotely, according to ConnectWise CEO Arnie Bellini, whose company specializes in professional services automation (PSA) software. With that fact in mind, small businesses can depend on managed service providers for the vast majority of their support needs. Plus, MSPs typically have technicians they can dispatch to fix any on-site issues that aren't resolved remotely.

2. Build Assets, Not Technology Temples: Empowering your employees with the latest technologies can be fantastic. But that doesn't mean you necessarily need to "own" the technology.

Through leasing programs and managed service programs, you can ensure your technology tools remain ahead of most rivals. And you won't need to open your wallet for big hardware upgrade cycles every few years.

3. Explore Hardware as a Service: Yes, even your network hardware (switches, routers, servers, desktops) can move to a managed service model. Fact is, small businesses can't afford to "buy" many of the latest hardware and broadband solutions. But they still need the capabilities of those services.

A prime example: Small businesses can't build out $300,000 TelePresence centers. And they often can't afford to fly to all corners of the world meeting customers and business prospects. Still, those same small businesses can use shared TelePresence locations (available in more and more hotels) to network with peers across the global.

4. Oh, And Innovate: Now that you've shifted all the "maintence" issues to a service provider, you can focus on driving new innovative applications across your organization.

My small (but growing) business, for instance, leveraged a mix of contract developers and MSPs to launch a series of major media Web sites. We "own" the completed Web sites, but all of the site underpinnings (the content management system, database, server, broadband, etc.) are outsourced to managed service providers and data center partners.

The result: We did not purchase a single piece of software or hardware to launch immensely popular, profitable Web sites. And yet those sites run on state-of-the-art software and hardware.

With the help of our managed service providers, we'll keep innovating.

The Business Case for BT Convergence

The structured approach of Business Technology Management (BTM) is a proven methodology that seeks to unify business and technology decision-making at every level within a company.

Originally conceived to address the needs of large enterprises, there are now very apparent benefits for both small and medium sized businesses. Let's consider the growing body of evidence that supports that business case.

Put simply, BTM is applied to ensure that a company's business strategy can be realized by the technology it deploys. This approach is used by business leaders to align, synchronize and even converge technology and business management for the purpose of ensuring better execution, risk control and profitability.

The Path of Total Convergence
Clearly, these are the type of guiding principles that should transcend all businesses, regardless of their size. Let's explore the meaning of those three states of progression.

Alignment is defined as a state where technology supports, enables, and does not constrain the company's current and evolving business strategies. It means that the IT function is in-tune with the business thinking about competition, emerging threats and opportunities.

Synchronization implies that business technology (BT) not only enables execution of current business strategy, it also anticipates and helps to shape future business models and strategy. In this state, BT leadership, thinking, and investments may be ahead of business needs.

The state of Convergence includes both alignment and synchronization, with technology and business leadership willing and able to operate simultaneously in both spaces. Essentially, the disciplines have merged in both the strategic and tactical senses. A single leadership team working together to orchestrate one intertwined agenda.

A Business Impact Case Study
Does this seem like an academic exercise? Consider the following facts, and then you decide.

According to the BTM Institute, in research covering 50 industries, companies with a more converged business technology management exhibited superior revenue growth and net margins relative to their peer group:

• 12% average annual revenue growth vs. 4% for their industry groups.
• 36% average annual earnings per share growth vs. 7% for their industry groups.
  

Not only did these companies grow at a faster pace than their peers, but they also exhibited consistently greater returns than those of their competitors:

• 6% higher EBITD margins than those delivered by their industry groups.
• 4% average higher return on equity, 8% average higher return on assets and 14% higher return on investments.
  

Therefore, perhaps the most important question is not whether you should strive for BT convergence, but how will you be able to compete with those companies that have already evolved to that state? It's something to think about, as you consider your next steps.

Managed Services: Safe At Home

As more businesses allow employees to work from home, a new IT challenge -- and opportunity -- arises. It's impossible for employers to offer on-site, full-time tech support to all of their stay-at-home workers. But the rise of managed services -- including remote monitoring and pro-active administration -- can bring order to these highly distributed workplaces.

The trend toward telecommuting is undeniable. More than 40 percent of American and Canadian companies let their employees telework, according to WorldatWork, a global HR association. As energy prices continue to fluctuate and businesses increasingly focus on environmental issues, the march toward telecommuting will surely accelerate.

Home Networks Become Complex
As a small business owner myself, my home office includes a network with multiple nodes -- three PCs running a mix of Ubuntu Linux and Windows XP; and my trusted MacBook Pro running Max OS X.

Now, multiply that IT complexity across hundreds of home offices and you'll understand why many small, midsize and even large organizations struggle to keep their home-based employees online and productive.

That's where managed services enter the picture. Increasingly, managed service providers (MSPs) and VARs (value-added resellers) use remote monitoring and administration tools to troubleshoot small and mid-size business networks.

The New Executive Suite
The managed services trend is now spilling over into the home market, where entrepreneurs and executives now demand the same level of IT service and support that they experience within corporate offices.

Small business owners and midsize business executives need to rethink their IT outsourcing strategies. In fact, all IT projects and network administration decisions must now include the extended enterprise -- including home offices and mobile devices.

The old corporate network as we know it is dead. The clear line between your enterprise and your employees' homes are gone. Going forward you need an IT architecture that blankets all of your employees -- regardless of where they're working.

Make Your Move for 2009
As you negotiate IT service contracts for 2009, ask your IT consultants and integrators how they're addressing the growing trend toward stay-at-home workers.

And make sure your IT contracts for patch management, security, storage and other automated services cover those telecommuters.

Small Community Banks, Big Managed Service Benefits

Community banks have attracted new customers by offering a truly personal banking experience that their larger rivals can't match, and by maintaining close ties to local communities.

However, all bank customers are demanding Business Technology driven services that many community banks simply can't provide with their current infrastructures. The lack of the latest technology can make migrating to new services prohibitively complex and expensive.

Community banks have depended on multiple providers for their voice and data networks. These banks found that they were paying substantially more for their network connections than larger institutions.

Moreover, having to deal with multiple providers can strain the smaller bank's modest IT staff. Implementing and operating a new converged voice/data/video IP network would overwhelm an IT team that usually handles simple tasks.

In addition, deploying a new IP network could negatively impact the community bank's operating budget. In fact, the total cost of ownership (TCO) for a typical bank's voice and data networks is second only to employee salaries and benefits.

Truly Demanding Operating Environment
Adding to these business challenges is the banking industry's strong emphasis on security and business continuity. Banks must be certain that their networks can pass their banking regulator's annual IT audit -- and deliver 24/7 services to customers in the event of a major disaster.

A strict regulatory environment and tight budgets make community bankers conservative when it comes to implementing technologies they consider unfamiliar. One solution that's proven, and likely to deliver lower operating costs, is the out-tasking of IT and communication network needs to a managed service provider.

A managed service solution can reduce a community bank's recurring voice and data expenses by 10 to 25 percent, with even greater reductions possible for larger banks.

Less Restrictions, More Freedom to Innovate
That said, an out-tasked IT and network infrastructure scenario isn’t purely about cost-reduction, it's also an enabler of customer service innovation. As an example, community banks are now deploying TelePresence applications that simplify the challenge of delivering full-service offerings at their distant branch locations.

A customer at an outlying branch can contact a bank officer at another branch and talk face to face without having to travel a great distance for the meeting. Plus, all required transactions can be completed locally.

Small community banks can now gain big Business Technology benefits, thanks to the creative use of managed services.

Small Businesses: Your TelePresence Room Is Ready

Conventional wisdom says TelePresence -- the next-generation video conferencing technology -- is best positioned for enterprise customers with big IT budgets. But through affordable managed services, small businesses are poised to join the TelePresence party.

Fact is, TelePresence can benefit small businesses in many ways. It can allow entrepreneurs to meet virtually with business partners, customers, investors and even job candidates scattered across the globe -- without booking expensive business trips or depending on impersonal conference calls.

TelePresence creates a virtual environment where all participants feel as if they're seated in a single executive conference room. You can read each person's body language. You can maintain eye contact. And you can focus on deep discussions.


Only for Big Enterprises?
Now, for the challenge: The TelePresence industry is gaining momentum within large enterprises that want to improve virtual communications with customers, board members and other key influencers.

However, small business owners are not very familiar with TelePresence. And in many cases, small businesses couldn't afford the upscale conference room designs and back-end IT infrastructure that TelePresence requires.

A Better Option
Of course, entry-level TelePresence systems allow small businesses to get started with high-end video conferencing without breaking their budgets.

Still, there is another option that small businesses should consider: Managed TelePresence services, which are popping up in hotels, airport terminals and other places that involve business travel.

In a typical scenario, many upscale hotels will soon offer TelePresence conference rooms that you will be able to reserve for an hourly fee. Assuming the hotel chain has locations throughout the country and across the world, you'll be able to invite customers, partners and remote employees to participate in TelePresence sessions simply by telling them to drive to a local hotel.

The hotel, working in partnership with a service provider or major Telecom partner, will manage the entire TelePresence experience -- shielding the small business owner from any potential IT complexities.

Questions to Ask a Managed Service Provider

The benefits of outsourcing make a simple and strong case, and more organizations are choosing to do so. As a natural result, more and more companies are entering the managed services provider (MSP) market.

According to Matt Cowall at Appia Communications, some of them are well-qualified; others are simply trying to take advantage of a market opportunity. Price is important, but it's not the only consideration, and the benefits of using an MSP can quickly evaporate if you choose the wrong one.

Matt recommends five key questions to ask before selecting an MSP. We'll discuss three of them today.

How long has an MSP been in business?
As in any business, there's an art and science to offering managed services. One obvious way to separate the experienced MSPs from the wannabes is to ask how long they've been in business.

If they've been operational for some time, they probably will have already addressed any service delivery issues they may have experienced in the beginning. Length of time in business is also an indicator of financial stability and client satisfaction.

What kind of support does the MSP offer?
One of the reasons you choose managed services is to turn your headaches over to someone else. If the MSP's support is weak, then you'll need to manage both the MSP and the problems you thought you were outsourcing.

Does the MSP have a support center that is staffed 24/7/365 (as opposed to being on call)? Does it have formal ticketing and escalation procedures? And does it monitor your services for you, or are you expected to bring problems to its attention?

What kind of redundancy does the MSP offer?
As you shop for an MSP, you'll learn about the infrastructure they use. Don't forget to ask if that infrastructure is redundant. Redundancy is the duplication or repetition of critical components in a system to provide alternative functionality in case of a failure. Even the best equipment fails from time to time, so it's essential that there are sound backups in place to ensure service isn't interrupted.

This is part one of a two-part blog post. In part two, Matt will share his thoughts on questions that managed service buyers should ask about provider quality and flexibility.