Providing a service is all about the client ... yeah right!(Storage Expo 2008)

Author:Leeuw, Guus
 
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There are two types of storage services that can be provided to organisations: in-sourcing and out-sourcing. With in-sourcing, the client would receive, say, a storage administration team that then works on the premises and with the equipment of that client. The business model behind this type of service is quite easy to setup and to sell. Setting up an average cost, to be paid per team member per month, is quite easily done, as one only has to look at the salary ranges of these people to figure out how much the client should be paying for each one of them. As Junior Administrators are likely to be less expensive than a Senior Administrator, an average price coveting all variants between Junior and Principal is easily made up.

The client side of this is that one would expect a good balance in skills, ranging from junior people to Principals. However, it is fairly easy to provide a lot more junior people than a good balance would suggest, and thus under-deliver on the quality of service.

The result of such a scheme would be that the client is over-charged for the service that it receives. After a while the client becomes unhappy with the service and starts looking for a different organisation to provide more of the same. Meanwhile, the storage provider gets a nice bonus for under-delivering on the quality and is doing well financially. The difficulty in this scenario is to find and maintain the right balance, for the sake of the client. The interests of both parties are essentially conflicting, as the service provider wants to reduce...

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