Capital Investments in IT Resources: Advantages & Disadvantages

by Yehuda Cagen 18. June 2010 05:22

A 3-part interview with Kirill Davydychev, Senior Technical Specialist, Xvand Technology.

IsUtility® Technical Specialist Kirill Davydychev takes a look back and a peek ahead at the evolving nature of IT consulting and IT support in Houston.  The business community has witnessed - and embraced - many technological transformations since Xvand first introduced utility computing (as “IsUtility®”) in 2000. Davydychev offers his perspective on the significant changes in IT and what businesses can expect moving forward into the next decade.

Q. With all of the utility and cloud computing  options available, why would someone want to invest in in-house IT resources?  

Until recently, many of today’s business executives see IT as a sinkhole rather than as a profit-center. As a result many have opted with what, at first glance, was the least expensive option. I think many recognize that IT has become more integrated into the business process.

Some IT professionals believe that you can better control your own destiny by using your own IT equipment. This way you’re not at the mercy of third-party computer services or tied into their long-term contracts. Owning your own IT resources is fine if you’re just starting a company, but as your business grows so does the complexity of your IT system.

Q. Should Houston businesses be concerned about being ‘locked-in’ by an IT consulting firm?

Unfortunately, yes. Most of the firms that provide IT support remote PC support in Houston are credible and competent. However, you should always be careful about signing a long-term contract. Computer technology evolves so quickly that it’s hard to know whether your vendor has the resources to keep pace. This is especially the case with cloud or utility computing which sounds great in theory, but you don’t want your vendor to learn new systems at your expense.

Q. What are the primary disadvantages of owning and managing your own IT equipment?

As I mentioned earlier, buying your own equipment seems fairly innocuous for a small business just starting up. However, over time, key components - such as CPU, disk, RAM, and, to a certain extent, the network – begin to bottleneck, resulting in latency or crashing of your system. These problems grow exponentially in organization with satellite locations and remote users or when remote pc access is required. All too often the typical in-house answer for these problems is to throw more money at it. Buy another server. Add more redundancy. Hire another IT support person. It’s becomes a vicious, never-ending cycle.

For these reasons, budget forecasting for IT is also an issue when you invest in your own equipment. You never know when IT problems can arise, and to what extent. You find yourself having to assume more capital expenditures and risk.

Q. What should a prospective client look for in an IT vendor?

Certainly be wary of long term contracts. Also, if you’re venturing into “newer” IT solutions, such as cloud computing, make certain that the prospective vendor has significant experience in this area of IT expertise. We cover this topic extensively in our Nine Tips for Choosing the Right Outsourcing Provider whitepaper. 


We hope you have found this information helpful. If you feel that your current process does not meet these standards, or if you would like more information on IT outsourcing please feel free to contact us:


Tags: , ,

Outsourcing Tips


Add comment

(Will show your Gravatar icon)

  Country flag

  • Comment
  • Preview

About IsUtility®

IsUtility® is a turnkey  Houston infor-
mation technology
solution that
brings accountability back to the IT
services industry. We've already
invested in your business - all the
servers and remote pc support -
eliminating the costs and risks of
owning  an onsite IT infrastructure.

Ask The Experts!

Send your IT questions directly to our knowledgeable experts. Since 2000, we’ve helped executives just like you make sense of business technology!
Your Question

Message was successfully sent

Email Newsletter icon, E-mail Newsletter icon, Email List icon, E-mail List icon Join our FREE Email Mailing List
For Email Marketing you can trust
Follow Us facebook twitter LinkedIn