The Savvy CIO

Some months ago we did a breakdown of the costs of Zimbra versus Microsoft Exchange. I’ve long been negative about the costs of Exchange. The price doesn’t scale down at all for small companies, and scales up far too quickly for larger ones. But the previous breakdown was a hypothetical scenario. There’s nothing wrong with that, it’s what we all do when making a purchasing decision. But now there’s some real life data to turn to.

The University of Pennsylvania runs both Exchange and Zimbra. They have nearly 1,000 users on Exchange and over 6,200 users on Zimbra, and the same technical support team takes care of both systems and their respective user bases.

My primary complaint with Exchange is how time-intensive and difficult it is to support and maintain. Support and maintenance are entirely hidden costs at the point of purchase, and many unsuspecting buyers have been lured in with steep license discounts only to discover the ongoing costs were far more than they bargained for.

The data from Penn agrees. For Penn, supporting an Exchange user is over 9 times more time consuming than supporting a Zimbra user.

For 1,000 users, Exchange requires 3.2 full-time equivalent staff members to support. With over 6,200 users, Zimbra requires 2.2 full-time staff members to report. That’s right, 33% less time spent on support for six times the users.

When Penn analyzed the total cost of ownership for Exchange and Zimbra (licensing, hardware, maintenance, support, etc.), Exchange came out at $7.50 per user. Zimbra was under half the cost at $3.00 per user.

Adam Preset, an IT technical director at Penn, discusses their deployment: read more »

Traditional email programs that are disconnected from everything are still the centerpiece of many a businesses’ communications. Each staff member has their own Outlook or Mac Mail or Thunderbird pulling email down from a server somewhere and storing all of their own email, contact information, company directory and calendar.

Everyone is on an email island.

Staff members have their own internal ecosystem (emails related to people related to appointments related to tasks), but there is only one way information comes in our out: through an email.

Usually staff members are also managing a separate “phone island” with contact phone numbers and voicemails completely disconnected from their email.

This is a fractured and frustrating setup.

Every person is managing two (phone and email) critical but separate communication islands. And those islands are separate from everyone else in the company as well.

There is a better way: moving email and phones from islands into a communication hub.

Here’s what I mean: read more »

This is part 6 of a series on IT Self-Assessment for small businesses. We’re providing information and guidelines for a simple IT check, giving you the ability to gain free insights into how your technology can serve your  business better. Each post covers a critical area of technology.

Communications: Email & Collaboration

Function & Value

Email has become the central form of communication for business. Email is critical to your company in marketing, sales, customer service, operations and more.

A host of related functions have grown up around email: calendars, contact lists, task lists, instant messaging, etc. Collaboration technology takes these functions and connects them: you see not only your own calendar, but also your team members’. Contact lists, project tasks and more now become shared information. The effects on productivity are incredible.

Common Problems

(1) Lack of collaboration. Email is provided (often for free) by a website host, and is accessed through a basic webmail program or Outlook. This creates two major issues:

• Each employee’s information is on an “island”, with no ability to share schedules, contact information, or to-do lists. This is a massive time sink with significant cost to your business.
• All email and related information is stored on individual PCs. When a hard drive fails, all of that information is lost. This is a massive business risk with significant potential cost to your business.

Take an informal survey. Find out how much time staff is spending each week managing contacts and calendars, or making phone calls and emails to set up meetings. Multiply that out into annual salary to see what lack of collaboration is costing your business. (And that’s not even considering lost revenue from all that wasted time!)

(2) Overly complex and costly tools. The collaboration tools with the most brand recognition (Microsoft Exchange, Novell Groupwise, Lotus Notes) were made for very large corporations. They work in economies of scale. 1,000 users utilizing a $10,000 investment makes a lot of sense. 25 users utilizing a $10,000 investment does not. These tools are too costly and complex to maintain for smaller businesses.

read more »

Google recently launched a “Going Google” billboard campaign in several major US cities, including our beloved Chicago. The ads focus on Google Apps for small and medium businesses: Gmail, Calendar, Google Documents and Google Chat.

The Savvy CIO is always interested in the best solutions for Chicago small businesses, and believes cloud computing is often a smart and cost-effective. So we took a closer look at Google Apps for small businesses: the good, the bad and the ugly.

Not to spoil the ending, but boy does it get ugly.
read more »

We’ve just finished a series of posts about how small businesses can get the most out of hosted solutions. It all started with Forrester’s survey revealing the most popular hosted solutions for small businesses.

Here’s a brief recap of the key information in one place, as well as links back to the original posts.

Customer Relationship Management: How to Get the Most out of a CRM

Key Benefit: Help sales and support win, keep and grow business by organizing customer information and history.

Most popular providers: Salesforce.com, SugarCRM (we use this), ZohoCRM

Email and Collaboration: How to Get the Most out of a Collaboration System

Key Benefit: Increase productivity with best of class email and calendaring tools, without the huge costs of Microsoft Exchange.

Most popular providers: CommuniGate, Kerio, Zimbra (we use this)

Content Management System: How to Get the Most out of a Content Management System

Key Benefit: Make content updates to your own website without the ongoing need for a developer or designer.

Most popular providers: Drupal, webEdition (we use this), Wordpress

Document Management System: How to Get the Most out of a Document Management System

Key Benefit: Store and find files more easily than on a file server, get to files anywhere, help teams work together on documents, control who sees what, and provide client access to deliverables.

Most popular providers: Alfresco, HighlandShare (we use this), KnowledgeTree

Twitter, media darling that it is right now, is logging a bit of bad press for having company documents stolen.

The short version is a hacker got into an employee’s web email account, and from there was able to access information stored in Twitter’s Google Apps account.

Depending on where you read the story, the spin is:

Twitter has serious security issues (partially true)
Cloud computing is unsafe (mostly false)
Someone needs a better password (clearly true)

The real lesson to be learned here is be extremely cautious with your email. Think about it. Virtually everything online is linked to your email account.

Are you equally vulnerable?

read more »

Continuing our series of posts on how to implement the most popular cloud computing services for small business, we come to collaboration tools: advanced email, group calendaring, shared contacts and more.

For many, collaboration means Microsoft Exchange. But Exchange is costly for a small business.

If you have 500 users and spend the $13,000 a year it typically costs to own Exchange, the cost per user is a modest $26 per year. With 50 users, the cost per user is a whopping $260 per year. 10 users? $1,300 per user per year. Yikes.

What collaboration tools actually make sense for a small business?

read more »

Still don’t have company calendars?

Neither did we until 3 years ago. (And we’re a technology and business solutions company–the shame!)

As easy and as basic as it sounds, many businesses are running their operations as if every employee was in charge of their own individual calendar. Here is what company calendars did for us:

⇨    Reduced overhead time and made our staff more efficient. Checking calendars and scheduling a meeting now takes about 15 seconds.

⇨    Reduced embarrassment. We no longer have to reschedule that meeting we planned on a day a co-worker is taking vacation, or make lame excuses for the co-worker who didn’t remember (or wasn’t told).

⇨    Connected mobile staff. Our office manager no longer has to figure out how not to admit, “I actually don’t know where she is today.” Shared calendars enable the office staff to help clients and prospects schedule meetings with busy executives and sales staff who are often out of the office.

⇨    Organized conference rooms and other resources. Our busy locations and resources have their own calendars and can be reserved. There is still competing demand (who doesn’t want to meet in the conference room with the mini-fridge?), but the calendar keeps us forewarned.

One thing to keep in mind:  If your calendaring and scheduling system is not integrated with your email and CRM database, you or your employees may not use it because it’s just going to be too hard. We chose a full email and collaboration platform, and went from not using calendars at all to using them religiously in six months. It was so helpful, we didn’t need any carrots or sticks. Our people realized the value themselves.