CASE STUDY 3 - WATSON PHILLIPS NORMAN

Anyone asked to pick a small business manager out of an identity parade would be forgiven for choosing a hair torn, sleep starved, cigarette puffing, fingernail chewing suspect. According to countless surveys, persistent IT problems have made these stress symptoms commonplace in UK small businesses for years.

On paper, managers have three technology choices: do it yourself, hire, or outsource. In reality, time pressures and tight budgets force most small businesses to outsource IT operations, and unfortunately it’s rarely sorted out by a single phone call. Most suppliers offer only a piece of the technology pie and all too often SME managers must piece together a supplier matrix that takes up precious time and generates unforeseen, and unwelcome, management and integration costs.

While the biggest suppliers offer a total managed solution with remote management, helpdesk, and regular upgrades, they do so only for the (not so) small businesses employing a minimum of 200 users. Genuine small and medium sized businesses in search of such a top notch service won’t find their answer by knocking at the big boys’ doors. However, one

new business believes it can put an end to SME IT blues. Virtual IT offers a specially designed SME service that offers a single point of contact for all kit and support, an easy and predictable payment plan, and the latest advances in managed service.

SMES And The Core Business

In 2003 John Watson, original founder of internationally renowned direct marketing agency WWAV, decided to start again. He formed a marketing consultancy, John Watson Partnership, in July and a new direct marketing company, Watson Phillips Norman in September.

Watson Phillips Norman decided to move the companies into new office space where all employees would require new kit and wanted a single, cost effective solution that would be seen and not heard.

Watson says: “I notice IT when it fails and starts costing me money. Creative businesses tend to be heavy technology users and gremlins can grind an entire day to a halt. I asked for a reliable IT infrastructure with fair and predictable costs that allows us to focus on our core business.”

The SME Technology Bundle

Unfortunately, like many SMEs, Watson Phillips Norman had a poor impression of IT support; used to lacklustre service, slow response times and a day-to-day approach to problem resolution. The first meetings did little to alter that impression.

Jeanine Berigliano, office manager at Watson, Phillips and Norman, narrates: “Talk about stereotypes. The first suppliers we called were difficult to get hold of and evasive about arranging a meeting time - exactly the approach you don’t want applied to an urgent problem. But when we met Virtual IT, we heard about their flexible approach to small business problems and realised the stereotype no longer applied.”

The VIRTUAL IT Solution

Virtual IT is using a technology “step change” to deliver a technology bundle exclusively for genuine SME businesses of all size. In addition to hardware and software provision, Virtual IT offers unheard depths of technical support. Using advances in Microsoft XP, remote management, and ADSL connections, Virtual IT solves SME problems remotely and instantly from its central data centre. Berigliano says: “When there is a problem, we get in touch and before long we’ve an expert accessing our system. We don’t need to listen to suppliers blaming the transport system, the weather, or their phone anymore. Help is quickly on hand. For the first time, one supplier provides small businesses with a fully managed IT service, including hardware (desktops, servers, and printers), software (MS Office, email), disaster recovery (anti-virus, offsite backups, firewalls) and support (remote management, virtual private networks, home working, monitoring and helpdesks).

The SME Budget

Watson, Phillips and Norman quickly realised the bundle would improve quality of service beyond recognition, but expected a financial catch.

“It sounded too good to be true, so naturally we were holding our breath at the price-tag,” continues Berigliano, “The service levels discussed seemed to more consistent with the upper, more expensive, end of the SME market – not an 11 man shop. Remarkably, however, the bundle approach saves us money – directly and indirectly.”

Virtual IT’s financial package is designed to work with small business budgets, cash flow and capital base. Virtual IT operates per user per month payment terms that allow SME businesses to retain capital, run transparent monthly budgets, and generate a simple growth road-map.

While economies of scale drive down hardware and software costs, the key savings are derived from low support costs and eradication of downtime. Virtual IT expects to cut the spend of an average SME by between 10 and 30%.

David Somen, CEO of Virtual IT, explains: “Small businesses have been clamouring for a specially designed bundle for years now, but the expense has ruled it out. The technology step change makes it viable for the first time.”

Berigliano adds: “We have a full IT solution from one company that provides us with everything we need. I have a professional outsourcer that brings hardware, software, disaster recovery and support together to make technology simple, transparent and effective.”

The SME Answer

Hired in November 2003, Virtual IT kitted out Watson, Phillips and Norman’s office with the latest hardware and software, and hooked it up to its data centre where it has successfully monitored, backed up and resolved problems glitch-free ever since.

Chairman Watson concludes: “We’ve moved our new office, where we’ve won some new clients and masterminded successful campaigns for existing ones. Since installing the Virtual IT system I don’t remember one major IT problem distracting my attention from my core responsibility. We know what we’re getting and we know how much it will cost. As a manager of a small, growing business I got what I asked for.”

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