Contrary to What You Learned in Grade School… Sharing is Bad, Okay?

There is a place and time for sharing. Share your color crayons, share your toys… share your feelings with those you love. But when it comes to business technology and infrastructure, sharing isn’t always the best approach. Some things you should just keep for yourself… like the servers you use for hosting business desktops, desktop applications and business data.

When we first began the journey of bringing small business desktops and applications like QuickBooks to the Internet, the “cloud” was not yet a thing. Hosting providers put up servers in racks in data centers, installed software and stored data on behalf of customers, and did their best to find ways of making the service affordable. Elastic resources, massive scalability and built-in redundancy (which are benefits of a real cloud fabric) were not generally available nor were they even remotely affordable. Because the hardware, networking and other resources that make up the hosting infrastructure is costly, it is important for the hosting service provider to be able to spread those costs across the entire customer base.

In most cases, this meant creating shared servers where many customers run their applications and store their data. Even when a provider suggests that a customer has a “private” server, there is still a good chance the server is using shared storage and/or networking resources made accessible in the environment.

Sharing can be a good thing or a bad thing, and it often depends on the behavior of those involved. In shared application hosting environments, particularly desktop hosting environments, there is a lot of potential for intentionally and unintentionally causing problems that can and will impact other users and customers on the platform.

A simple provisioning error might allow a user to see data belonging to another company or have access to applications or services they should not.

With shared resources, bad actors and intruders can often escape permission boundaries, attaching to network shares and other computers on the platform.

Malware accidentally introduced by an innocent user from one company could easily penetrate the entire system, following paths to data storage locations and other servers, spreading the problem to many customers and systems and even data centers.

If you are operating on the compromised system you are at risk, even if the compromise wasn’t initiated by one of  your users or from within one of your applications.

In the realm of QuickBooks hosting providers, the issues around sharing infrastructure and resources have created some very difficult situations for hosts and for their customers alike – especially when it comes to dealing with computer viruses, malware and ransomware. A few high-profile events, as well as numerous incidents which have flown under the radar, have revealed just how damaging the shared approach can be.

With the IRS, AICPA and other agencies issuing increasingly strong guidance for tax and accounting professionals to protect client information, finance professionals should strongly consider the risk introduced through shared hosting service arrangements and evaluate if it is greater than the costs of having a more private system.

Cloud platforms available today are fully matured, delivering scalability and agility at price levels that are affordable even for very small businesses.  No longer solely for enterprise enjoyment, real cloud solutions and delivery models can be used by small businesses for desktop and application hosting without compromise. Every business deserves their own cloud, and we know how to make that affordable.

Cooper Mann works with teams deploying on the Microsoft Azure platform, offering an agility in design not previously available with legacy computing approaches. Because every delivery is absolutely private to each customer, the solution can be scaled up (or down!) on demand to suit the specific needs of the individual business. More important is the fact that each customer operates separately, so any bad behavior the system may suffer from is their own.

jmbunnyfeetMake Sense?

J

Model Your Dreams, Not Your Workflows

Jurassic Park: “Are those heavy? Then they’re expensive, put them back..”

Process modeling, process improvement, workflow design and quality management all sound like big, complicated things that larger companies do. Analyzing and re-engineering processes and developing highly structured workflows is often work performed within an enterprise; heavy and complicated and expensive work that’s required to keep large or distributed organizations operating as a single unit. But structure isn’t just for big business operations; it’s a big deal for small business, too.

The truth is that modeling business processes and workflows isn’t necessarily difficult or expensive, and the benefits to be gained apply as directly to small businesses as they do to large enterprises – perhaps even more because smaller businesses can change their trajectory early on, before things are too fully entrenched.  Ongoing, the development of workflows to guide process activities and the regular evaluation and testing of the outcomes may reveal wondrous opportunities to increase performance and profits. It’s all about drawing that picture of what you want the business to be, and then finding the best way to make it be like that.

While business owners and managers may be familiar with projecting financial performance under different scenarios, how often do they look at the actual processes supporting business operations and “project” performance based on changes to processes, worker activities or operational workflows?  It just isn’t something you hear much about in the small business world.  When I reached out to Ben Boomer of ParkPro to have a discussion about this type of stuff, I had no idea that the conversation would turn into a real example of how one single software solution could be the foundation for incredibly beneficial change in the organization, the business performance, and the satisfaction of workers and customers alike. The software is from the Dutch company Exact, and the product is Synergy Enterprise.

ParkPro has been operating for just about 40 years, providing an array of services and solutions ranging from auto gates and access controls to parking revenue management and camera solutions, and even anti-terrorism solutions.  Their deliverables are mostly project-based and there is a very large installation and maintenance services aspect to the business. What all this means is that there are a lot of moving parts, lots of scheduling, projects and recurring activities, and lots of possible product and service combinations. There’s also a lot of inertia behind the processes and methods that have been standard business practice for a long time.

“Making any change to how the business operates is akin to changing tires on a moving vehicle” says Boomer. “You still have to get the work done and move forward”.  With Synergy Enterprise, ParkPro’s system is agile enough to allow them to use the software and at the same time configure and tweak it to meet the needs of the business and not the other way around. He suggests that this is the problem with systems that lack of the flexibility of Synergy Enterprise; businesses must adjust to the way the software works rather than making the software really work for the business. Ben discussed an example and the good advice he received from Jeff Sachs when the company wanted to implement barcodes and thought they could use whatever came in a “canned” solution. Jeff’s suggestion was that “if the process doesn’t work, then this will simply make it not work… faster”.

Greater efficiency and performance are always important, but what it also comes down to is configuring accountability into the system.  The very act of formalizing the processes and the workflow forces ParkPro to think about and define the processes as they really are.  The system that helps them set up work requests and structure activities also helps establish accountability along the way. This has allowed the company to benefit in ways they couldn’t even imagine.

Synergy allows them to make copies of their system where they can pose questions and model the answers and outcomes.  “Do we really need to do this step, or is it just because it’s written down?” he asks. “We can pose questions and then find efficiencies in answering those questions”.  Just as with financial modeling and forecasting, workflow modeling informs on the potential result of the adjustment, allowing businesses to make better decisions and avoid missteps.

The ability to adapt Synergy Enterprise to the requirements of the business has been central to the company’s success in creating new efficiencies and improving overall performance, and the effects are felt throughout the company.  Boomer says that the changes they’ve made in their processes and the workflows which connect them has even resulted in restructuring the organization and management hierarchy to be more reflective of how things are in Synergy because its more efficient.

Reliant upon the “open” nature of Synergy Enterprise and its ability to flex with the needs of the company, Ben knows the solution will continue to support beneficial change in the operation.  In Ben’s own words, “Synergy allows us to project our future dreams and know the software can keep up”.

Make Sense?

J

 

  • Series Introduction:  Fringe to Foundation: Aligning Business Goals and Lifting Business Performance through Digital Workflows
  • Article 1: Every Business Deserves a Chance to be Better
  • Article 2: Improve Processes and Profit More
  • Article 3: Workflow Has 3 E’s

Mobile IT for Contractors and Builders (for every business, actually)

The Trend Is Up For Single-Family Housing Market

Even as lot and labor shortages and other supply side constraints continue to impact builders, and while the cost of building materials continues to rise, the demand for housing continues to increase at a fairly consistent rate. “November’s builder confidence reading is close to a post-recession high-..” NAHB Chairman Granger MacDonald said in a recent release.

Supported by rising homeownership rates and a reduced number of available homes for sale, the trend up is expected to continue.

Increased competition for new business opportunities in the building market require that home builders and developers leverage available technologies and IT resources to improve operational performance and increase the profitability of every project. Applications for better estimating, project and cost management and accounting represent the foundations for information management and supporting the flow of work.Extending workflows to embrace mobile workers and remote offices is the next step to developing an efficient anytime/anywhere business. 92 percent of U.S. construction executives believe that technology will fundamentally change their businesses, and help them bridge the performance gap, according to KPMG’s Make it, or break it – Global Construction Survey 2017 report.

Collaborating while on the go and exchanging ideas and concepts quickly helps businesses be more agile and better-able to meet changing customer needs. Remote and mobile access provides businesses with mobile office options that allow users to get their jobs done no matter where they happen to be.

Business moves at a fast pace and working smarter means implementing the right IT to keep moving up with the demand and creating sustainability for leaner times.

Make Sense?

J

Focusing on Transformation

Focusing on Transformation

In January of 2007, Network World published an article stating that “user satisfaction with software as a service (SaaS) is starting to slip, but customer interest in this method of outsourcing IT functions is continuing to grow“, and says that recent survey results clearly demonstrate SaaS being “a dominant force going forward”.  That was 10 years ago, yet the same message is being played out today as managed services and hosting continues to grow in popularity. IT outsourcing makes sense for thousands of businesses, whether the software is part of the package or not. Today, outsourcing IT is almost an imperative if the business is to keep up a competitive pace.

Users need and demand mobility and will get their anytime/anywhere access to applications and data however they can get it. Businesses require agility in their technology, which is difficult when significant investments in hardware and infrastructure must be earned out prior to any new investment. Making systems accessible from outside the firewall, securing them in a reasonable manner and keeping them up and running all the time so users can access at any time is not a job for part-time IT.  Keeping the systems on and available at all hours requires full-time IT management, and this is in part what fuels the popularity of outsourcing it all.

SaaS (Software-as-a-Service) goes a long way toward helping businesses manage their IT costs in that the systems are part of the service.  The hardware running the application, the storage of the data and the support accompanying the solution are all part of the package.  Unfortunately, the SaaS solutions is not generally the only thing in use by the business, so continued reliance upon PCs, desktop software and locally stored data causes IT management costs to persist.  One size does not fit all, even with online application services.  Although customizations and add-ons can help a single app become a broader solution framework, there is usually something left behind that ends up anchoring a process or function to the desktop, device or local network, and requiring IT management and administration to go along with.

Application hosting services compete somewhat with SaaS in that the systems and management of them is included in the hosting service subscription fee.  While the business user retains licensing of applications and the flexibility of using the software already embedded in the operation, the organization is enabled to focus on operational improvements and not on the underlying systems supporting them.  By reducing or eliminating the requirement to directly manage and maintain servers, complex networks and user working environments, businesses are able to focus their in-house technical energies towards innovation and improvement. The centralized nature of the system facilitates new collaborative capabilities while allowing the business to build on the knowledge and base of information already invested software and processes.

Outsourcing IT service provisioning and management is just a baby step towards improving the business agility and positioning the organization for growth. Real digital business transformation begins with a change in the business mindset: not simply a focus on operational processes and improvements, a new strategy should evolve where the enterprise is situated to interact with its market seamlessly, at any time and all the time.  Businesses that wish to compete at this level must consider whether or not purchasing and maintaining their IT infrastructure is where they wish to focus their energies or if they’d rather invest their technical talent towards market building and transformational objectives.

Make Sense?

J

Centralize and Secure Business Applications and Data

laptop drawingThe portable computer is an essential business tool for day’s mobile workforce, having the power and portability to meet the demands of executives and professionals working away from the office.  While executives and mobile professionals get the applications and data they need to keep productivity high, carrying business data on devices outside the network introduces significant business risk.

There are studies which estimate that as much as 80% of the data a small business owns (data like customer files, contracts, product information and financial data) is copied to or stored on portable computers.  When valuable business data is lost or stolen, the business can be exposed to a variety of problems – loss of revenue being just one. Losing track of business data can create legal issues, too. Customer privacy may be compromised, sensitive information could be exposed, or confidential plans might be made public if a business doesn’t take the right steps to secure its data.

It isn’t just the possibility of loss or theft which increases risk when data is copied to portable computers – the increased vulnerability of the information sits with the likelihood that the user will access unsecured networks, launch non-corporate applications, access private email accounts and perform other non-business related tasks with the computer because they have more access than with a fully secured corporate in-office desktop.  User behavior is often what puts corporate data and assets at risk, regardless of the policies that might define correct and acceptable procedures. It is very easy for workers to unknowingly lose and leak data, and when the data is present on the portable computer it gets even easier.

A 2014 study commissioned by Cisco Systems found that employees around the world continue to engage in “risky” behaviors that put business and personal information at risk:

  • The majority (70%) of surveyed IT pros believe that as many as half of their data loss incidents are due to authorized program installations
  • 44% of employees share work devices with others without supervision
  • 39% of IT professionals have dealt with employees trying to access unauthorized parts of the company’s network
  • Almost half of the employees admitted to copying data between work and personal computers when working from home
  • 18% (up to 25% in some regions) of employees shared passwords with their co-workers

Companies must not only protect their data for their financial well-being, but must recognize their legal obligation to protect much of the information, as well.  The risk extends beyond the walls of the enterprise, to vendors and customers and consumers whose information may be stored in the company data. Additionally, portable computers exposed to malware and virus attacks are likely to pass the bad code to other systems they come in contact with, introducing not just risk for the recipient but liability for the infected laptop owner.

Where mobile computing brings huge advantages to today’s business, owners would do well to consider the benefits of enabling mobility through the use of server-based and hosted computing models. Rather than installing software and copying data to PCs and mobile devices, workers should be able to access a central system where the applications actually run. IT management is more efficient and security is easier to enforce when applications and resources are contained exclusively within the corporate boundary, even if they are accessible from without.

Virtual desktop and remote application solutions offer features that address a variety of potential risk factors as well as enabling improved management and security of IT assets.  Centralizing and securing applications and data resources at the server allows businesses to deliver the mobility and functionality users need while enabling the information security and management the business demands. This is a foundation upon which remote desktop and remote application technologies were built, allowing users to have the real-time access to applications and data with full functionality and desktop modality, but without the requirement to install, manage and secure applications and data on the individual devices.

Make Sense?

J

Licensing for Hosted Application Services: Why it costs what it costs

Licensing for Hosted Application Services:

Why it costs what it costs

Application hosting services are experiencing resurgence in popularity these days, due to the prevalence of messaging about the benefits of a “cloud” technology model.  While hosted application services aren’t really cloud (according to cloud technology purists, anyway), they can look and feel and be paid for just like cloud solutions, so the name fits OK.  Hosted applications are desktop or network applications you access via the web, where the software is implemented and managed by a 3rd party application service provider (the host) rather than being installed on your local PC or LAN.  Some software products may be rental-licensed by the ASP, and when combined with the hosting service, the entire subscription service is more like SaaS (software-as-a-service) than the old “purchase and install” approach.

An important supporting program for application hosting service providers is the Microsoft Service Provider License Agreement program. Under a formal agreement with Microsoft or via an SPLA reseller, service providers and independent software vendors are able to license the latest Microsoft software to provide software services and hosted applications to customers. With the SPLA, service providers and ISVs can lawfully license Microsoft products on a monthly basis to host software services and provide application access for their customers. The SPLA supports a variety of hosting scenarios to help providers deliver highly-customized and robust solutions to a wide range of subscribing customers, and it’s the only valid means for obtaining subscription-based provider licensing for these products.

Because the software products being hosted are essentially desktop or LAN-based products, the underlying technology to “deliver” those applications is generally of a similar foundation.  In cases where the provider is offering hosting of Windows-based QuickBooks desktop editions or Microsoft Office applications, for example, the platforms and servers used by the service provider are almost certainly Windows-based.  This operating system, as well as the rights to allow remote user connections to it, is licensed to the provider from Microsoft under the SPLA.  These elements are referred to as “user” licensing elements.

An aspect of Microsoft reporting and licensing which is not well recognized (or frequently complied with) is the difference between user and application licensing.

User licensing, which includes the Windows server access license as well as the remote desktop user license, is a named user access license. This means that the provider need only report and settle for the user license if the user actually accesses the system during the reporting period (usually each month).  Not quite like a concurrent user model, where only the high count of users is reported, the named user model requires that the license for each user be paid if that user logged in at any time and remained logged in for any length of time during the reporting period.

Application licensing applies to the application software license acquired through and governed by the use-rights provided for and granted under the Microsoft SPLA. Rental application licensing is assigned to a specific, named user, and is to be reported fully on a monthly basis regardless of whether or not the user accessed the software. This is in direct contrast to the named user access licensing described above. Providers are required to report and settle on a monthly basis the total number of subscribed application licenses available to users, including Microsoft Office applications, Exchange, SQL and others, regardless of whether or not the user actually logged in and used the products.  The license is assigned to the user and is therefore required to be paid.

Being an application hosting service provider is a complicated business, and there is a lot to consider when developing subscription services for broad customer delivery.  Pricing is one of the complaints customers voice relating to these services, but the reality is that it takes quite a bit in terms of system resources and licensing to provide an acceptable hosted application experience.  This is one of the areas where SaaS and true cloud solutions benefit from a scale economy – where the application is designed for the platform, and one instance of the solution and platform can serve a large number of customers more affordably.

When working with a hosting service provider, it is wise to recognize that the platform and software licensing costs are there to support the type of applications being hosted.  If you have an SQL-based application, you will need the SQL licensing to support it, just like you have to pay for licensing of an Exchange mailbox or a hosted copy of Word.  Enabling only a portion of the total business software requirement may make it difficult to cost justify hosting just one solution.  However, if the business utilizes the host to manage all the desktop applications and data, the cost-efficiency of the approach can increase dramatically.  Regardless of whether the business elects to continue to run software on local PCs, or if it decides to outsource IT to a host and run it there, the company will have to pay the price for software licensing.

Make sense?

J