Author:  Jason Kallevig
Date:  October 12, 2007

Kaltec of Minnesota, Inc. is a technology rooted company that delivers fully managed I.T. services as an outsourcing solution for small to medium sized businesses.

The Dilemma

"I don't understand computers, and I don't know what I.T. even stands for anymore, but without it I can't get anything done.  Please just make my network work."  Historically variations of this statement have been a recipe for disaster for many small business owners.  What they are really saying is "I'm good at my core business, and technology is a core part of my day to day business operations.  Do I really need to become an expert to simply utilize what it has to offer?"  Hardware, software, networking, and phone companies alike have jumped at the opportunity to implement their latest solution-of-the-day.  Each has their own best interest in mind, with little or no concern to how well the solution even fits that particular business.  For years, small businesses have been missing the role that larger companies obtain from the CIO.  A top down approach to assure that appropriate technology is implemented across the environment.

Can you really outsource your entire I.T. operation to a single service provider?  Kaltec's Managed Services Division answers this with a resounding "YES".  Unlike most providers who started out in the break/fix I.T. support realm, Kaltec entered the I.T. arena as an ISV (Independent Software Vendor).  Kaltec has been developing custom business applications based on Microsoft technology since 1993.  "We found the implementation phase to be very challenging."  Developers found that working with I.T. departments to create an infrastructure robust enough to support the demands of the custom application could be very difficult and bureaucratic.  In addition, any issue that arose in any area of the network was - by default - blamed on the newly implemented software for months after the software was successfully implemented.  To survive custom implementations, our team members at Kaltec found they had to become very good at taking a holistic approach to network infrastructure, as well as honing a skill-set of high level configuration of Microsoft Server aspects such as Exchange, SQL Server, Active Directory & Group Policy.  "It became obvious that the only way to protect ourselves was to be better than our customers at managing their network."

Proactive, fully managed I.T. service

To offer a complete, competent I.T. solution is a huge undertaking.  After all, there are so many aspects to be considered.  Kaltec has established a fully managed suite of I.T. products and services, including a combination of proprietary and resold technologies.  Kaltec works with their customers to build a custom tailored I.T. package, which is delivered for a predictable monthly fee.  This fixed fee concept includes customer support, monitoring, security and patch management.  It also has solutions for hardware, procurement, and even a monthly licensing program for all Microsoft products through the SPLA program. 

Managed Services - just another word for outsourcing?

Is Managed Services just another word for Outsourcing?  Yes, and No.  After the technology bust, and all the hype surrounding the dangers of outsourcing, naturally the industry had to come up with another term to put everyone at ease.  However the key to managed services really lies in our approach.  Experience, standards, and proactive monitoring are keys to delivering a higher level service than businesses can obtain internally.

Battling the Budget

I.T. has long been a significant cost to businesses of all sizes.  More and more, companies are realizing that; while necessary, I.T. really plays no role in how profitable your company is.  While once a differentiating factor, today the benefits of automation are largely assumed as day to day necessity.  To make matters worse, skilled I.T. employees are notoriously difficult to qualify, train, and retain.  Not to mention expensive.  Compounding this, the intellectual knowledge that I.T. staff obtains is invaluable - especially when supporting legacy systems is simply a fact-of-life for most businesses.  Turning these issues over to a reputable service provider makes a lot of sense when looking at the problem from the top.

Cutting Edge, Bleeding Edge, or Brown Box?

One of the most challenging aspects of the Managed I.T. approach is to avoid commoditizing the service as a whole.  To brown-box the service too much means wrapping unique customers into a 1 size fits all container - ignoring the flexibility that is built into today's systems.  Kaltec firmly believes that one of the most intriguing aspects of I.T. is the ability to use common toolkits (known as software) to build custom solutions that make our everyday work experience more productive.  Customers love the idea of a fixed fee approach (duh), but we work with them to create a plan that still accommodates enough flexibility to allow us to really improve their I.T. environment when we see the opportunity.  With commodity comes predictability and stability, but the benefits - as well as the value - are typically reduced equally.  Walking the line between commodity and cutting-edge is an important aspect, and should not be overlooked whatever role you play in the I.T. arena. 

Is I.T. outsourcing via managed services for everyone?  The question a business owner needs to ask themselves is "Am I an I.T. company?"  If the answer is no, the money that is spent staffing and supporting your I.T. department is a liability, not an asset.  Even if your I.T. staff is putting in 60 hrs/wk supporting (i.e. breaking and then fixing) your network, they will never become as skilled as someone who is exposed to hundreds of networks in as many industries.  Documentation, procedure, security and data protection are part of tested standards of practice rather than invented by the latest newbie.  The days of the I.T. cowboy are numbered, as industry moves on creating a whole new level of expectations in the I.T. industry.