bMighty Q&A: Leaders Talk IT For Your Business


Leading executives, managers, and experts from SMBs and large enterprises share their insights and perspectives with bMighty on a host of IT issues, challenges, and opportunities that small and midsize businesses face.



Larry Velez Of Sinu: Outsourcing The IT Department

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Larry Velez Of Sinu: Outsourcing The IT Department

Smaller businesses can rarely afford a large IT department, but as IT gets more sophisticated and more complex, the need for tech expertise in a host of different areas grows. It's practically impossible for smaller businesses to go it alone these days, and outsourcing bits and pieces of an IT department can get complicated, not to mention costly. This is where managed service providers come in. MSPs allow companies to outsource the entire IT department, from soup to nuts, in exchange for a fixed monthly cost. Larry Velez of Sinu calls it "holistic outsourcing," and he told bMighty why he believes smaller businesses need to start thinking about MSPs, how the concept can save them money, and what they should look for in a provider.

bMighty: Can you quantify the cost savings of an MSP for a smaller business?

Velez: There is a huge savings in staffing. Most companies can save $30,000 to $60,000 in hardware costs if they start using hosted services. It can take up to $100,000 to build a network. That expense doesn't go away but comes back in more predictable terms, in monthly chunks. There is still wiring in the office and core stuff, but you won't have big, bulky servers -- that's where the up-front cost savings are, and then there are savings on unpredictability.


Don't Miss: The rest of Velez's answer and the complete Q&A


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