Save money—purchase more IT support

 

The late U.S. Senator Everett Dirksen is reported to have said, "A billion here, a billion there, pretty soon you're talking real money." He was presumably referring to government, but CEOs of small to medium enterprises might think he was talking about their larger corporate cousins. Some large enterprises lose or write off in a quarter amounts that far exceed the wildest revenue dreams of smaller businesses. Small to medium enterprises are different. The executives I've talked to are focused on the bottom line almost on a day-to-day basis. Budgets are tighter. And while they probably became successful by taking calculated risks,calculation is the key consideration.

That certainly applies to IT. IT spending as a percent of revenue for smaller companies runs less than larger enterprises (2 ½ percent on average compared to more than 3). IT staff is smaller, and staff members frequently play several roles—often whatever role needs to be played at the moment. With so much budget pressure, IT managers are always looking for ways to save. The recurring cost of support for their IT systems usually draws a glance. And because HP equipment tends to be highly reliable, it's a tempting place to cut back.

But the calculation says otherwise. Consider the cost of computer downtime. A study by IDC found small-to-medium businesses experienced 15 to 18 hours of network, system, or application downtime per year resulting in revenue losses of up to $75,000 per hour. I'll do the math for you. That means the average SMB loses $1.13 million to 1.35 million in revenue annually due to system outages.

And revenue losses aren't even the whole story. Another study shows 37 percent of employee productivity is lost during downtime. For 500 employees, that's the equivalent of having 185 of them sitting waiting for the system to come back up before they can do whatever you hired them to do. That's another $100,000 to $200,000 in losses due to downtime. Plus, 44 percent of the companies surveyed said employee morale suffered, 35 percent said customer loyalty declined, and half said their business reputation took a hit. A million here, a million there, and pretty soon you're talking real money—certainly for small-to-medium-size businesses.

HP support services from HP or HP ServiceOne partners help reduce that downtime and the losses that result from it. We provide reactive and proactive services with response times you can match to your budget and business needs—from next business day response to four-hour response available 24/7. And when you connect your systems directly to our support centers, our techs can achieve near 100 percent diagnostic accuracy, so our customers are reducing downtime by an additional 55 percent.

We created an infographic summarizing the information I provided above (with source references and everything). Download it and spread it around next time the command to cut back comes down. And in the meantime, check out this information on HP services designed specifically for small and midsize businesses. When you do the math, IT support pays. I know Everett Dirksen would have seen the logic in that.

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