{"id":28558,"date":"2015-01-07T19:04:00","date_gmt":"2015-01-08T00:04:00","guid":{"rendered":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2015\/01\/economic-outlook-2015---mark-shaw.html"},"modified":"2015-01-07T19:04:00","modified_gmt":"2015-01-08T00:04:00","slug":"economic-outlook-2015-mark-shaw","status":"publish","type":"post","link":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2015\/01\/economic-outlook-2015-mark-shaw\/","title":{"rendered":"Economic Outlook 2015 &#8211; Mark Shaw"},"content":{"rendered":"<div class=\"img-left\">\n<div><img loading=\"lazy\" decoding=\"async\" alt=\"markshaw.jpg\" src=\"https:\/\/www.saratoga.com\/saratogabusinessjournal\/wp-content\/uploads\/sites\/48\/2014\/10\/markshaw.jpg\" class=\"alignleft\" height=\"183\" width=\"150\" \/>\n<\/div>\n<div class=\"img-caption\">Mark Shaw, president, Stored Technology Solutions (StoredTech)\n<\/div>\n<\/div>\n<p>BY MARK SHAW<\/p>\n<p>The year 2015 will bring about a number of<br \/>\nchanges to the IT industry.<br \/>\nTwo items that are easy to pick off the top<br \/>\nare the ending of support for Windows Server<br \/>\n2003 and &#8220;Capex&#8221; versus &#8220;Opex&#8221; when choosing<br \/>\ntechnology services and solutions for your<br \/>\nsmall business.<\/p>\n<p>Server 2003, the Microsoft flagship server<br \/>\nproduct for almost 12 years, finally comes to an<br \/>\nend. In an unprecedented move, we have seen<br \/>\ntwo major platforms for businesses (Windows<br \/>\nXP and Server 2003) both come to end of life<br \/>\nwithin a year of each other. This will push<br \/>\nbusiness to decide on the best replacement<br \/>\npath for them for the hardware and software they are using.<\/p>\n<p>Many small businesses for the first time in a<br \/>\ndecade will have real choices in how to spend<br \/>\ntheir IT capital. This is why Capex and Opex<br \/>\nwere picked as the second largest economic<br \/>\noutlook indicators in 2015.<\/p>\n<p>So what is Capex and Opex as it pertains to<br \/>\ntechnology solutions? Simply put, it is the ability<br \/>\nto take what used to be a capital expense<br \/>\nlike buying new servers, software and networking<br \/>\ninfrastructure that have to be depreciated<br \/>\nover a set about of time, and convert it to an<br \/>\nexpense item that can be seen as a monthly service fee and deducted fully in the period in<br \/>\nwhich they occurred.<\/p>\n<p>Small businesses in the past have simply<br \/>\nreplaced older servers for new servers and<br \/>\nupgraded software and solutions to make them<br \/>\ncompliant, add new features or provide better<br \/>\nproductivity. These capital upgrades often<br \/>\nrequire a &#8220;rip and replace&#8221; of the old hardware<br \/>\nand applications.<\/p>\n<p>Since the introduction of the &#8220;cloud,&#8221; a term<br \/>\noften overused but whose value is never understated,<br \/>\nbusinesses are able to stop the cycle of<br \/>\nreplacing hardware and software at set times<br \/>\nand move the costs to an expense model where<br \/>\nthey can pay for the services and the hardware<br \/>\nas a service fee.<\/p>\n<p>This removes the need for much of the<br \/>\nserver and storage hardware and places the<br \/>\napplications and services with a vendor who<br \/>\ntakes responsibility for the upgrades, updates,<br \/>\nall the hardware and maintenance for the line<br \/>\nof business application.<\/p>\n<p>An easy example of how this can save your<br \/>\ncompany capital and provide a better ROI<br \/>\nwould be the most basic service most organizations<br \/>\nhave moved to Opex and that is email.<\/p>\n<p>If you had an Exchange 2003 server running<br \/>\non Windows 2003 that was end of life you have<br \/>\ntwo options.<\/p>\n<p>1: Buy a new server, pay for new software<br \/>\nlicenses for the email and the operating system,<br \/>\nhire a consultant or pay staff to upgrade and<br \/>\nrip\/replace the old servers. This is a capital<br \/>\nexpense for many companies and will require<br \/>\na similar exercise in 5-7 years.<\/p>\n<p>2: Move to a cloud-based email system like<br \/>\nMicrosoft Office 365 or Google`s Business Apps<br \/>\nand pay a monthly fee for the services. This<br \/>\nbecomes an operational expense item. Many<br \/>\ntimes less than the maintenance required<br \/>\nfor the systems purchased in Option 1 alone.<br \/>\nMany ROI calculators exists to show the value<br \/>\nin moving your email to the cloud.<\/p>\n<p>Option 2 has become the norm for many<br \/>\npeople today. They remove the hardware,<br \/>\nreduce their technology footprint and all that<br \/>\nit entails (think power, cooling, service and<br \/>\nsupport) and in return simply let someone<br \/>\nelse handle all the back end work required to<br \/>\nrun the email service for them. They use the<br \/>\nservice, enjoy the upgrades that come as part<br \/>\nof the package without any additional costs and<br \/>\nit works anywhere.<\/p>\n<p>This Capex vs Opex experience will drive the<br \/>\neconomics of IT in 2015. Organizations today<br \/>\nare working hard to reduce the amount of overhead<br \/>\nit takes to run their networks, allowing<br \/>\ntheir technology staff to work on driving the<br \/>\nbusiness forward by solving technology problems<br \/>\nand not working hard on the non-value<br \/>\nadded back end maintenance. Productivity<br \/>\ngains and end user\/client satisfaction increases<br \/>\nare also side effects of this Opex model.<\/p>\n<p>This year will hold all of its normal surprises<br \/>\nfor the technology sector, but from an economic<br \/>\nimpact nothing will be driving businesses to<br \/>\nnew ways of thinking more than the forced end<br \/>\nof life to their servers and the new options for<br \/>\ncloud-based solutions to the old standard of<br \/>\nhardware and software refreshes. Small businesses<br \/>\nin particular are the biggest winners as<br \/>\nthe costs of these services continue to drop and<br \/>\nthe number of players continue to increase.<\/p>\n<p>As a small business owner, it&#8217;s worth understanding<br \/>\nand considering any and all options<br \/>\nwhen making a needed change to your technology<br \/>\nsystems.<\/p>\n","protected":false},"excerpt":{"rendered":"<p> Mark Shaw, president, Stored Technology Solutions (StoredTech) BY MARK SHAW The year 2015 will bring about a number of changes to the IT industry. Two items that are easy to pick off the top are the ending of support&#8230;<\/p>\n","protected":false},"author":121,"featured_media":20313,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[57],"class_list":["post-28558","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","tag-business-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\r\n<title>Economic Outlook 2015 - Mark Shaw - Saratoga Business Journal<\/title>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2015\/01\/economic-outlook-2015-mark-shaw\/\" \/>\r\n<meta property=\"og:locale\" content=\"en_US\" \/>\r\n<meta property=\"og:type\" content=\"article\" \/>\r\n<meta property=\"og:title\" content=\"Economic Outlook 2015 - Mark Shaw - Saratoga Business Journal\" \/>\r\n<meta property=\"og:description\" content=\"Mark Shaw, president, Stored Technology Solutions (StoredTech) BY MARK SHAW The year 2015 will bring about a number of changes to the IT industry. 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