Total Cost of Ownership (TCO)-Cost effective ways to manage Information, a Network and its users.

By Chester Qualls, Ashmar, Inc.

 

How can you reduce the cost of your computers, networks and information technology and put me out of business?  You need to plan how your system will operate.  Like so many other things in life you need to visualize the finished product.  You need to break the whole thing down into sections such as I am using in this article;  Asset Management, Standardization, Deployment, Maintenance, Security, Disaster Recovery and User Management.  After you develop a plan and goals for each of these areas you need to put the plan into place.  Once you have implemented the plan you will need to test it against your goals and if it falls short you may need to adjust your plan or your goals.  Simple right?  Well it is, even if it’s not so easy to accomplish.  If you don’t take these steps however my experience says that you will be throwing money away. 

 I have been troubled for a few years now with this basic problem related to Information Technology Management for mid-size to small-size companies.  A number of terms are used for the issue I am about to discuss.  Best Practices is a good term that I considered using but the one I like the most is Total Cost of Ownership because it addresses a number of key components for your IT management.  It is TOTAL in other words we need to look at things in whole not just individual pieces.  We need to plan ahead instead of just patching the problems.  COST $ is a very important component.  I bet everybody who reads this would like to find ways for their computers, networks, and information systems to cost less.  A structured “system” is the way to accomplish savings and efficiency in any area of your business so why not computers?  And finally it is important that you take responsibility or OWNERSHIP of the system.  Everybody in an organization must take ownership all the way to the top, which is where any plan must be initiated. 

It seems a little strange to write an article about reducing your IT costs when upping your IT costs derives my own company’s business but I have good reason.  I have worked with a few really good customers where as time went on the network “seemed” to be getting worse the more we tried to patch it.  I could not explain why this was happening and ended up loosing some business as a result.  So I have found that it does not benefit me to make more money if I cannot provide a stable computing environment for a customer.  Because of this frustration I began looking for an answer to the question of why did the computing environment become unstable?  

A large part of the answer to that question is the Internet.  The Internet is a wonderful connection of all computers on the planet, which empowers the individual.  The Internet is forming the infrastructure of the Information Age as Highways and Railroads did for the Industrial Age.  Just as on the Highways now that there have been some crashes we can learn from them and make some rules to hopefully keep us safer.  I was reading an article the other day about autonomic computing, (which is self healing software) and the author made this statement, “The autonomic thrust largely grows out of the looming, and somewhat inevitable, shortage of people trained to manage computer systems. The Internet is simply becoming too large and complex for the world's technicians to manage.”  The author also went on to talk about how human expenses which had been less than 20% were now equal to hardware and software costs and would in the next 5 years probably outpace those expenses.  The Internet is causing many problems because companies do not have policies about its use.  These policies should go beyond what you spend time on; the more applicable problem is what you download knowingly or unknowingly.

So we need to begin by writing a plan and setting policies.  I think the goal of autonomic computers is similar to the goal of the paperless office; it may be a little while in coming.  So rather than wait for it to happen I believe we can take steps to improve on the problems.  Let’s try to work on each of the areas I mentioned above and determine why they are important.  These areas are not necessarily listed in any particular order of importance.

Asset Management:

At a core of this area is a proper listing of the hardware and software being used in the company.  This listing should be updated often, as my experience is that failing to do so will catch up to you.  You should be able to sort these lists by different criteria so that decisions can be made about upgrading software and purchasing new systems.  You should be able to identify job functions within the company that require more computing power such as CAD drawing software or Database intensive applications.  Also you may need to determine lower computer needs such as word processing and spreadsheet functions.  Also like it or not some people’s time is more valuable to the organization.  Top executives should not have to wait on their computer no matter how simple their computing needs are.  This listing will help you to make these kinds of determinations better.  A listing of your software assets legal and non-legal could be the difference of big fines or not, if you work to get non-legal uses legal.  Some companies make the decision to use illegal copies of software but I believe it is important to be aware how much you are using.

Here are some links to sample reports from a database I developed for tracking computer assets.  If you are interested in this program it could be modified to meet your requirements.

Computer Location Inventory (pdf Adobe Acrobat format)

Computer by Location Detail (pdf Adobe Acrobat format)

Standardization:

The above list of software installed on your computer systems may identify a number of different things.  You may find software on some computers that do not need that specific software application.  You may also find somebody without access to software that could help them.  You will probably also notice a core of software applications that everybody should have.  The more programs that are on a computer the more complex the registry of that computer becomes.  Also standardization of versions can help support staff in troubleshooting problems.  If support staff must support Windows 98, Me, 2000 and XP as well as multiple versions of Office within the same network problems become hard to trace.  The fix for one workstation may not be the correct fix for the next workstation.  So to fix a similar problem may require more research if dealing with multiple versions.  Training users which is a subject I will get more into later can also be impacted by a non-standardization of versions.  Standardization of Hardware can also be important.  This one can be harder to accomplish because very few of us have a budget to replace all our workstations every two years at one time.  Usually we have to buy a few computers here and a few computers there.  One way to control this problem is to work with a reputable hardware vendor who is likely to be around a few years.  Discuss with that vendor a desire to standardize your hardware over the next couple years.  Work with them to identify components that are mainstream and also likely to be around.  Ok I think I better stop there because I was laughing to hard.  The above may be nearly impossible but there are some things you can do.  Some components may be good parts but they have not been tested fully along with all the other components of your system.  This is the advantage of getting your computer from a good manufacturer.  They usually fully test all of the pieces together, and now that almost everything is on the motherboard including network cards this is becoming easier.  The vendors that are serious about this also pay to have their assembled computers tested by Microsoft for compatibility with the Windows Operating system.  Buying systems that have not gone through this process could and usually does introduce minor problems that are very difficult to trace because they are caused by a minor piece of code in the software not cooperating with the firmware on a component like a floppy drive or memory chip.  The better quality your computers and the more standardized they are the fewer problems you will have and the easier it will be to apply solutions to those problems.  Another piece of standardization is to control what the user can install on their computer or how they can configure or personalize their computers.  With Windows NT, 2000 and XP Professional the network manager can enforce more control on the user but previous versions depend on rules and procedures in the office.

Deployment:

What I mean by this is how long does it take you to get a new computer up and ready for a user to begin use?  Having standardized software and hardware makes this job much easier, but you probably need more than an Operating System and Applications readily available.  It is also handy to have drivers for the various components such as sound, video, network adapter, printers, etc. It is also worth checking the Internet for updates to these drivers although you should have a policy for this and be very careful about applying drivers from just everybody.  (Once again you want standardization)  I have in the past set up all necessary software and drivers in a special place on the Network drive so that I would not have to go looking for disks to set up a computer.  If that does not work for you I have also seen a customer with a “crash box”.  If a machine had trouble they grabbed the box that had all the relevant software and drivers in it to bring it back to life.   This is great but I think we can do even better.  Software exists that allows us to take an image of a correctly configured machine and put it on a CD.  You know how when you buy a computer these days you often get a recovery CD to put the machine back the way it was when you first got it.  The technology exists for us to do the same.  Using the recovery CD may not replace Applications you have loaded like MS Office, MS Project or Anti Virus.  It would also not recover your personal settings for email or proxy server settings.  But if we set up your computer and then burned an image of it we could have all your settings.  Then if anything goes terribly wrong you just pop in the CD and in about 15 minutes go back to where you were.  In this scenario it is best to store your email and all documents on the Network drive or those may not be recovered.  This is a huge issue and it would be fairly easy to burn an image for each individual computer although if you have standardized computers that are identical you can burn one image for each of them, this image wouldn’t have personal information however.  If you are interested in this service let me know.

Maintenance:

Having a solid standard and being able to deploy it quickly are keys to the new computing environment but no matter how good your standard is it may need to change often.  How often depends.  These days in a single week there are normally a couple new security breeches to an operating system, a new vulnerability found in some application and 3 to 4 new viruses or mutations of a virus.  Because many of us are connected to the Internet we should be paying attention to this matter or be subscribed to a service that will update our system once a month and immediately if a major threat is introduced as it was when the Code Red Virus was launching.  Some companies such as Microsoft and Symantec among others are providing ways to automatically update your systems, however I would do that cautiously.  From time to time a patch does harm not good so although the temptation will be to apply them quickly unless the risk is huge it may be better to wait a little bit.  There may be other items to maintain as well, many people are aware that Windows includes tools to remove temporary files which did not automatically get deleted and de-fragment hard drive files.  People often ask me how often they should de-fragment their drive, which really depends.  I have seen some people that needed to do it once a week and others that may only need it once a year.  Start out once a month and if your drive keeps being quite fragmented you may want to do it more often. In earlier versions of Windows if these disk operations were scheduled to run automatically they had a tendency to lock up the computer.  I noticed similar problems with automatic Anti-virus scans.  I think it is best to run these checks on your own without the computer doing them automatically. On not so much of a technical level it is a good idea to have your computer cleaned out once in awhile.  They suck in dust with their fans and if you are in a dusty environment you can keep your computer running better if you get the dust cleaned out twice a year or so.  It is amazing how much trouble dust can cause to a computer.  In most offices only once a year is probably adequate, but in homes with more plush carpeting you may need to clean them out more often until the fibers are not releasing so much from the carpet.  As I mentioned earlier, companies are at work to create autonomic computers or holistic computers.  This same article states some of the rules for autonomic computing, “They must be self-configuring (able to adapt to changes in the system), self-optimizing (able to improve performance), self-healing (able to recover from mistakes), and self-protecting (able to anticipate and cure intrusions).”  As I said earlier I image it will be awhile before we see these computers but when we do the needs for maintenance will be few, and if they can make them self cleaning we may never need to do anything.

Security:

Once again the Internet has changed things in this area for all of us.  For years most of the companies I worked with to install networks did not need to worry about swiping cards to get into the building, they did not have armed guards at the door and passwords were very lax.  Just about everybody knew each other’s passwords.  Today the rules have changed.  Everybody that is connected to the Internet should worry about the security of the information on your network.  You hopefully still do not have to worry about the people in your company but you have no idea who is outside looking in.  Intruders may want to find information they can use or they may just want to mess up your systems.  They could even choose to do it subtly, the equivalent of scratching the paint on your car or more like messing with the air fuel mixture in the carburetor.  It doesn’t keep the car from running but it just makes something wrong.  In other words they may even do something that cannot easily be detected.  The update maintenance I talked about earlier is critical to this issue.  All software has vulnerability, and the more popular the software the more likely pranksters are to find a way to exploit the vulnerabilities.  Passwords are also important as using a password to login to a server is generally an accepted method of gaining access to a network.  The name of your cat or a birth date is an extremely easy password to crack.  Some times you do not even need a tool to make a guess at those.  Software is available for purchase for around $195 that can capture this password.  First this software checks dictionary words.  About 99% of the passwords people use can be determined in probably less than 10 seconds.  Advances in the field of Biometrics will make our world more secure using our fingerprint or retina to authenticate us to the network.  I have seen one of these authentication devices at work.  Most secure will be a combination of a biometric and a password.  There is however no such thing as a completely secure computer.  In determining what level of security is appropriate for your company you must balance the risk, cost and difficulty.  You should also consider who does need access to information as well as who should be kept out of that information.  If you are in a very competitive field you may need to worry about more than your computer systems.  The easiest way to get information about your company and your competitors is to go through the dumpster at your office.  Be careful what you throw away and how. 

 Disaster Recovery:

Just as you need to asses the risk of your information falling in the hands of your competitors you should also ask yourself what would happen if we lost all the information completely?  You must list the things that could go wrong such as hard drive failure, drive controller failure, flood or water damage, fire, theft, power outage, and there are probably others.  What would loosing that information do to the business and how much would it cost to get it back?  Many companies do a backup of their critical data.  Of course a good backup is the first most important step you should take to insure recovery from a disaster.  A backup alone will not protect you against most of the problems listed above, so it is important to come up with a solution for each of the possible problems that will reduce or eliminate the risk to your company.  Let’s consider a few of the items listed.  Setting up your system to use a mirrored drive and mirrored controller can reduce hard Drive or Controller failure impact.  You could also choose to implement RAID drive sets, which are considered to be superior to simple mirroring.  Due to the reduced cost of drives these days it is not a bad idea to have a duplicate hard drive on hand which matches the specs of your installed hard drive so that it could quickly be installed if any problem arises.  There are other solutions to this problem, which can involve mirrored systems on site and off site.  These solutions could be outside of your budget and that is an important thing to consider.  What tradeoffs can you afford?  If a mirrored system would cost 20-50K is it beneficial to pay for it and know your data is duplicated or is that too much money.  You may decide to take the risk.  I think more companies should consider this kind of protection than currently use it.  Even at a higher price tag many companies would be out of business if they could not recover quickly from a disaster.  You may not be at high risk for flood but water damage could be a possibility if you have an automated sprinkler system.  What if something happened to trigger your sprinkler system and all your workstations were damaged?  You could take steps to protect against this by having rolls of plastic ground cover on hand.  The plastic could be quickly stretched over cubicles before leaving the building to protect from the water damage.  If any water did get into the monitor it may need to be dried thoroughly.  The computer box may not be best placed on the floor so it is protected from any resulting flooding.  Power Outage can be minimized by the use of Uninterrupted Power Supplies (UPS) although most of the affordable units on the market are not truly uninterruptible they are measured in their transfer time.  (The shorter the transfer times the better.)  You may also choose to have a generator installed to keep power going if long power outages are common in your area.  Generators can also be rated in transfer time.  A Power Outage can cause a corruption of data especially in Accounting programs and this can take a lot of time to repair.  Often people only consider the power outage impact on the Server but each workstation is also important, as that may be where data is really lost.  These are some examples of how to prepare for disaster but also important to consider is how long can you be without these critical systems.  Some companies could survive for a week, others are measured in hours and of course there are some industries in which each minute the systems are unavailable can be very costly.  In any case if you have a plan you will be back up and running much faster than you will without a plan.  Once you have a plan there is one more important step to take, you must test your plan before the disaster hits.  It is important to know your recovery plan will work by testing under a controlled situation.  Hopefully disaster will never strike but I have seen strange things happen.  One customer had a roof cave in due to heavy snow pack they came out amazingly well but things could easily have been far worse.  Another odd situation I saw was each night the tape backup was failing and the server was turned off.  This took a while to figure out because it made no sense.  We would test it and everything was fine.  One night the CFO of that company finally found out that the janitor was unplugging the server to plug in his vacuum and was terminating all services.  It pays to control as many things as you can; you never know where the disaster will come from.

User Management:

I saved this for last but it certainly is not least.  The biggest issue here is training.  Once the standards for software are set users should be trained how to use this software.  As well users need to be trained on the policies and procedures related to computing for your unique company.  I will submit that the biggest expense you have in IT is your users time.  It is more expensive than hardware and maintenance/support.  The biggest savings in your IT budget could come from a place you probably don’t even have budgeted.  I have watched a lot of people use software tools such as Microsoft Office and I believe there is a lot of wasted time due to lack of knowledge.  In some ways it is worse than 17 years ago.  Often 17 years ago employees did not even know how to use their programs at all however there were minimal expectations and once they learned just a little bit they could perform at some benefit.  Today although many people can get into Word and Excel and can type a letter or prepare a simple spreadsheet there is a need for them to do much more and only a few people posses the skills to produce time saving work.  Software needs to be thought of beyond one use.  Even though programs have become much easier many people do not use a number of features that could save them time and get much more functionality from their documents.  Another problem I have seen is people using the wrong application to do their work.  Many things I see on spreadsheets would be much better handled in a database.  Some Word documents would be better if done in Publisher.  I have seen some spreadsheets designed that would be better presented in Word and hardly anybody uses Powerpoint as much as they could to present a point, including me.  As I will be writing in another article there are many practices beyond inefficiency in which an employee can damage their workstation and severely impede the corporate network.  Much of this trouble has to do with; you guessed it, the Internet.  It is important to realize the type of damage employees can do and develop policies for the use of their computers at work.  Once developed these policies must be communicated.  Now all this sounds great all you have to do is write it down in a procedures manual or training guide and give it to the employee right?  That would probably be true if most people read and understood the materials given to them.  All this information is best if it is taught.

I believe education of all users to be a major issue ahead of us.  Because of how things change rapidly in computers the process is probably a continual one.  Every year we all need to keep our computer skills sharp and improving.  Education is becoming a major focus for me in my business.  I have started to write articles such as this one to help with others education.  I have also started periodic news briefs to keep everyone I know up to date on various computer issues.  Soon I will be starting a monthly newsletter to educate anybody who will read it.  I have also started training programs with companies to help keep their employees trained.  This is the real secret to putting me out of business as I mentioned at the beginning of the article.  If people will learn more about their computers they will not need me to do the same things I have been doing for them for years.  So if you want to put computer guys like me out of work be sure to aggressively keep yourself trained.  If you feel sorry for cutting me out then please give me a call or an email to help with the training of people in your company or assistance in putting together a plan for Asset Management, Security, Disaster Recovery, or any of these issues presented here. 

Article referenced: IBM Leads Charge on Holistic Computing by Michael Kanellos April 11, 2002 http://news.com.com/2100-1001-881279.html

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