key insights
- When organisations take a total cost of ownership approach to
computing, they're increasingly seeing the merit of using managed
services providers, says Zero One general manager Suraj
Keshvara.
- Not many people understand the true total cost of IT
infrastructure ownership, but once support and downtime costs are
factored into a system's purchase price, managed service
arrangements are often compelling, Keshvara says.
- Fast networks, abundant processing power and speedy storage
systems, combined with support for the managed services - or cloud
computing - model from many industry heavyweights, makes this an
increasingly attractive way for organisations to meet their IT
infrastructure needs.
Key Innovation
Key Innovation: Web and managed services provider Zero One gains
ongoing savings by opting for IBM's cost-effective serial-attached
SCSI (SAS) drives for storing customer data.
"To do what we do we really need a quality
of infrastructure that is best-of-breed … high-speed,
high-performance systems." Zero One general manager Suraj
Keshvara
If pandemics or clogged roads are making your business look at
the feasibility of working away from the office, the news is good.
According to Suraj Keshvara, general manager of IT services
provider Zero One, it's only getting easier for workers to be in
one place and their computer infrastructure in another.
He should know. Providing all levels of managed IT services -
from email to complete business systems - is precisely what Zero
One does. And even before Zero One got into the market, Keshvara
was closely involved in the development of the managed services
model.
Zero One is owned by telco Compass Communications, whose ISP,
voice, tolls and payment services businesses earn revenue of about
$200 million a year. In 2006, it saw the opportunity to expand into
the higher value IT services market.
It did so by acquisition, first taking over the business of GDC,
a pioneer of the application service provider (ASP) market, which
was in receivership. Keshvara and a partner ran a company that
helped GDC develop its ASP offering and it, too, was bought by
Compass.
The ASP computing model proved to be ahead of its time, and
didn't last. A customer would access applications such as Microsoft
Office on the service provider's computer, via a leased line or the
internet. But that was the weak link - the telco services were
either too slow or too expensive, requiring costly software
workarounds.
"Then came the third acquisition, Zero One, which had been
playing in the web hosting, web services sphere for 10 years,
predominantly in Wellington," Keshvara says.
"It had some big clients - big name brands such as the All
Blacks. It had developed the allblacks.com website and was hosting
the site for the New Zealand Rugby Union, and had developed the
online ordering system for Pizza Hut and was hosting that for
Restaurant Brands.
"And it had some other high-calibre New Zealand entitities that
it was providing services for as well."
It made sense to merge Zero One's web services business with the
managed services business acquired from GDC, and that was done 18
months ago under the Zero One brand.
Underpinning the business is Compass' data centre, which has all
the reliability and resilience needed to run a telecommunications
company's operations. That includes dual power supplies,
air-conditioning, fire suppression equipment and redundant data
processing and storage systems.
IBM® has become Zero One's key supplier of servers and
storage, as existing data centre hardware comes to the end of its
economic life, and the company builds on the managed services
business.
"We needed to make infrastructure decisions abut what technology
platforms we were going to implement to replace big-ticket items
like our storage area network. We went to market to see what
options were out there and, from a technology perspective, IBM came
up with the most compelling offering."
An important part of the new relationship, Keshvara says, is
IBM's ability to supply cost-effective SAS storage systems at a
fraction of the price of older-generation fibre-channel gear. In
the future that will be paired with IBM's Storage SAN Volume
Controller to give Zero One sophisticated storage management
capabilities.
"To do what we do we really need a quality of infrastructure
that is best-of-breed … high-speed, high-performance
systems.
"The vast majority of our business is managed services,"
Keshvara says. "It's really taking a customer's IT infrastructure
and hosting it in a data centre and delivering those services back
to them, whereby they're maintained and managed by an expert party
allowing the customer to focus on their core business."
That reduces their technical headaches and, in many cases,
costs, Keshvara says.
On one level, it might be just hosting an organisation's email
server. A step further up the food chain would involve managing
desktop services such as Microsoft office. The ultimate service is
having Zero One host business applications, such as a company's
enterprise resource planning (ERP) system.
If it sounds remarkably like the ASP model all over again,
Keshvara doesn't disagree. "It's all very much the same sort of
service and delivery mechanism."
A couple of things have changed, though. First, today's
catch-phrase for remotely delivered services is cloud computing,
which has the respectability of being part of the offerings of
industry heavyweights like IBM, Microsoft and Google.
And second, affordable, capable telco services are more readily
available. The combination of today's faster networks, abundant
processing power from virtualised blade servers, and speedy storage
systems, means there's nothing to give away the fact that an
organisation's staff might be on one side of town and their data
processing on another.
What with one thing and another, Keshvara says remote access is
getting a lot of customer attention. "That's another wonderful
thing about our service - it provides people with a lot of options
around what to do if swine flu hits their office."
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Reader Value:
- Managed services - from email to
complete business solutions - can relieve organisations of the
burden of buying and supporting their own IT infrastructure.
- A total cost of computing calculation
will demonstrate for many organisations that managed services can
save them money.
- Resilient facilities - backup power
supplies, data processing and storage capacity - are a must for
managed services providers.
Key Benefits:
- Zero One uses the telco-grade data
centre of parent company Compass Communications to deliver managed
services.
- The company takes advantage of abundant
processing power from blade servers, and fast, cost-effective new
storage hardware, to guarantee the resilience of its
platforms.
- Improved networking options, combined
with growing industry support for the managed services model, makes
this an increasingly attractive way for organisations to meet their
IT infrastructure needs.
further reading: