TCO and IT Security Consulting: What You Need To Know
- Posted by Compass Computing Group, Inc.
- On December 20, 2021
- 0 Comments
- cloud services, IT management, IT security consulting, IT Solutions, MSP, network security
When it comes to managing your IT expenses, including IT security consulting and your technology costs, there are two main numbers you need to keep in mind. The provider will offer you the monthly costs or “price per seat.” However, your total cost of ownership (TCO) often gets overlooked in the conversation.
According to Gartner, the TCO includes prices beyond the upfront cost. It also includes the cost of hardware and software acquisition, the management and support you receive from your vendor, any costs to the end user, the cost of any downtime and loss of productivity, and the costs associated with training. In other words, you need to look beyond the monthly price tag and consider the amount you will actually end up spending for your managed services provider (MSP).
Unfortunately, many companies overlook the total cost of ownership and simply compare the price tags, which can result in greater costs in the long run. We sat down with a few of our IT management experts at Compass Computing Group to see what they could tell us about managing IT costs and how businesses should evaluate the bids they receive.
What To Consider When Looking at IT Security Consulting and Management Bids
What dangers will businesses face if they just take the lowest price?
A lower price quoted by another company can certainly look tempting. Who doesn’t want to save money? However, the savings can be very short-sighted. Customers need to remember that they get what they pay for – and when it comes to managed IT services and network security, you don’t want to engage in a race to the bottom.
Your business needs in-depth cybersecurity protection. The average cost of a cybersecurity breach surpasses $4 million, which can be devastating to businesses. You also need to consider the loss of trust you would encounter from customers and employees alike. Consider the costs you can incur overnight if your organization experiences a ransomware attack, email compromise, or a breach of your system. It’s easy to see how quickly these problems can spin out of control.
At Compass Computing Group, our customers receive comprehensive cybersecurity protection, including 24/7 monitoring, remote assistance, and training for their employees. Our customers know that they pay for outstanding service, and the care and concern they receive keeps their businesses safer every step of the way.
If you want to know more about how to defend your business against cyberattacks, download our checklist of 15 ways to ward off a cyberattack.
What is often overlooked in companies posting low bids?
When businesses review the bids and prices they receive from different potential vendors, we often find that they have overlooked a few key areas.
1. You have to remember the cost of the tools involved. Many businesses will list the costs associated with setting up the tools as extra, which can then drive up your costs.
2. You want to have access to on-premise support. What will you do if you have a technology problem that requires someone to take care of it in person? Will you have to pay extra for these services?
3. You will want to look at the promises regarding wait times for receiving assistance in the event of a problem. What is the difference in wait time between getting an initial response to a problem vs. when the problem will be fixed?
Businesses want to be careful that they are not being short-sighted. Many customers let us know how much they appreciate all of our services, which are often not available with other providers. For example, we have 24/7 support, regardless of your time zone. If a remote employee has a problem at 10 at night, we are there to walk them through it. We also promise a 90-minute response time, while our competitor’s can be as high as 4 hours.
When your organization is facing a potential problem, these are the promises that can make a real difference in protecting your business, minimizing downtime, and maintaining your desired levels of productivity. You want to make sure you have them addressed before you decide to go with a particular IT provider.
What additional cost concerns should businesses have when evaluating options?
We also recommend that organizations take a moment to consider a few different areas of their finances. Specifically, they want to look at:
- Escalating costs
- Operating costs, including cloud services vs. on-premise support
- Expected costs
At Compass Computing Group, we offer services specifically designed to help customers control these costs. Our services include on-premise and cloud-based support so that customers can have their needs addressed promptly and as efficiently as possible.
Our offerings are also designed to scale, making it easy for businesses to pay for only the services they need. By partnering with some of the best-in-class specialists for different aspects of our managed IT services bundle, our customers know that they have access to the tools they need to enhance their productivity.
We also help clients lower their overall IT budget because they will not need as many full-time IT staff. You get predictable monthly fees, less downtime, and reduced CAPEX costs by partnering with our IT specialists.
What other considerations should businesses have when evaluating vendors?
Finally, we remind customers that they should keep some other factors in mind as they evaluate the different price points and bids they see from IT services providers.
1. The cost of transitioning. Moving from one partner to another will cost your business in terms of money, onboarding training, and the time needed for everyone to fully adapt. It is not something you want to do more than necessary. You want a vendor you can trust and work with for the long term. Therefore, you need to evaluate your options with an eye towards the future.
2. You want a company that can help you stay on top of technology to come – a company in touch with emerging trends, that can help you innovate and adapt as tech changes. At Compass Computing Group, we have technology in place to help customers adapt to the Internet of Things, Machine Learning, APIs, and hybrid cloud computing.
3. You want your employees to be able to reach providers in a manner of their choosing. For example, to know if they can reach out with a phone call vs. a ticket and how that might vary with response times.
Can You Really Put a Price on Excellent IT?
An estimated 70% of consumers report that they do not believe businesses do enough to keep their information secure. Additionally, nearly 90% of customers say that they take the security and trustworthiness of a company into account when considering making a purchase.
Investing in the IT services and capabilities of your business requires careful discernment and consideration. What is on the line is not just the current price you have to pay out of pocket, but also the long-term implications of brand trust and the future risk that your organization might face. Failing to prepare by working with qualified partners ready to help protect you can set you up for failure.
How Can Compass Computing Group Help in 2022?
Our customers know that they can trust us to have the tools they need and the attention and security they deserve from their IT partner. Don’t just take our word for it, come and see what our customers have said. If you are ready to take the next step towards securing the managed IT services you need, reach out to us now. Secure your 2022 IT assessment to see what you can do to help your organization thrive.