Small Business IT - Doing More With Less in 2009 - Part II

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With over a decade of Information Technology experience working with small and medium sized businesses all over the San Francisco Bay Area, Mark H. Jessen’s Small Business Technology articles offer ideas and understanding on how IT helps small business succeed.

Introduction

Part II of this two part article will look at ways you can consolidate your companies IT systems overhead in 2009. There is no doubt that 2009 is going to be a difficult year for business. You can go into the New Year with one of two mindsets; “We’re going to stay the course and hope for the best” or “We will look at this economy as an opportunity to reinvent ourselves into a lean, agile, competitor in our market.” My goal is to have you see 2009 as a time of opportunity to find ways of doing the same, or more, with less. Make 2009 the year you use IT to make your company become a lean, agile, market competitor.

Smaller Servers, Doing More, Using Less – If you haven’t already consider migrating your older standalone chassis servers to low profile rack mounted units and blade server systems can reduce costs in a number of ways. They are both good options for reducing the amount of real estate and power needed in your data center. And both are ideal for running application virtualization software to reduce the number of physical application servers needed. Application virtualization is now a very popular way to consolidate both hardware and management costs in the data center.

Consolidate and Centralize Storage – Network Attached Storage (NAS) and Storage Area Networks (SAN) are two proven ways to make company data management safer and easier. And by making sure all of your work is stored where it will be uniformly and consistently backed up you reduce the risk of lost data. Adding VPN based storage solutions for your mobile users helps keep their work safe and secure too.

Not Your Mothers Appliances – Use dedicated multitasking appliances for consolidating basic network services like Domain Name Service (DNS), Dynamic Host Configuration Protocol (DHCP), Anti-Virus, Anti-Spam, and Intrusion detection systems (IDS). There are currently a number of appliance makers in the market that have products that can handle your basic network functionality from single 1U rack mounted units. The savings include their reduced footprint, lower power consumption, ease of use, and centralized management.

How many applications are you supporting? – Depending on the size of your business, you could easily have dozens. First, audit all the applications and make sure they are still relevant and contributing to the company’s bottom line. Next, look for overlap between complimentary departments like, sales and marketing, where consolidation of similar applications would be mutually beneficial. And use this economy as an opportunity to renegotiate and right-size your commercial software licensing contracts.

Open to door to Open-Source – Now is the perfect time to look for less costly open-source options. More and more companies are looking seriously at Linux on the desktop. OpenOffice, MySQL, and SugarCRM for example are reliable options and all have strong support communities. Almost any type of business can benefit from open source software opportunities. New, as well as budget strained, small businesses should look seriously at the early start cost savings advantages available

Think Global, Outsource Local – What opportunities can you find right in your own backyard when you consider local or regional outsourcing to reduce some of your application development and support costs. Within a five mile radius of you, there are probably a dozen application developers hungry for your business right now. Use contractors to rapidly develop applications that you can get up and running quickly will help keep you ahead of the field. The sooner your ideas can come to fruition the sooner your business benefits. The agile company that can find new ways to quickly meet its customer’s needs wins.

Summary

Earlier in December 2008, the National Bureau of Economic Research (NBER) announced that the U.S. economy had been officially in a recession since December of 2007. Now the question is when can we expect this recession to end? Best estimates are that by April of 2009, we may be at the low point of the curve, leading economists to estimate that this economic contraction could last as long as 35 to 40 months which means conservatively 2010, and possibly 2011.

This means small business IT management will need to be prepared to meet the challenges of this recession with a list of cost saving measures that will keep your company lean, agile, flexible, and competitive.

So make 2009 the year of seeking out the advantages and opportunities of doing more with less.