After business meets in Vancouver for 3 days, Dale was coming back to his home in Toronto via an early morning flight.
On that business journey, Dale was accompanied by his business partner-cum-friend, Leo.
They both were running a cleaning service business in Toronto.
The flight took off.
Though they had very little sleep last night, they were too energetic to discuss their business.
Dale started the talk while sipping coffee, “I think we should now move our on-premises servers to the cloud.”
Leo did not respond. He purchased the in-flight Wi-Fi access and searched ‘IT Services Toronto’ in the browser.
‘Oh! They are too many!’, Leo said, showing Google search results to Dale ,‘They can help us move our servers to the cloud.”
‘Did you just pay $35 to show me just this?’, Dale said with narrowed eyes.
‘Yes, because the ROI is high.’, Leo replied,confidently, ‘This $35 can benefit us $3500!’
‘What are you talking about?’, Dale looked puzzled.
‘Let me explain.’, Leo cleared his throat, ‘A must-have skill needed in a businessman and entrepreneur is basic mathematics! If he fails to calculate the money he would earn back by spending even $10, he can never succeed!’
‘You look really sleepy! Please have a nap!’, Dale ignored Leo’s talk.
Leo also did not try further.
After nearly around 4 hours, they landed in Toronto – much faster because of high tailwind.
‘Well then! See you tomorrow. My cab is here!’, Leo said as he found his booked cab driver had already reached the location.
‘Leo, why don’t you buy a car?’, Dale asked out of curiosity.
Leo smiled, ‘ Where is your car?’
‘In the airport parking lot.’
‘And how much you are going to pay?’
‘$200 for 3 days!’
Without giving a reply, Leo stepped into a taxi.
He then rolled down the window and said, ‘Dale, whether it is in-flight Wi-Fi, car ownership or IT-related services, if you spend $1, you should earn or save $100 out of it. If not, you should never spend on it.’
Dale stood still. He was wondering if IT companies really talk about ROI while offering their services?
So, the answer to the question that
Why should you never select IT services Toronto?
is low ROI! (Don’t worry. The solution of this problem has been discussed later in the blog!)
Let’s carry forward Dale’s example to understand the importance of ROI.
Dale is already owning in-premises servers and now he is planning to move to the cloud.
However, Dale has only a staff of 7 people and they only operate the business in Toronto with a very limited customer base.
With just 7 team members and limited business reach, Dale can not leverage cloud servers in such a way that it will make Dale earn or save more than he would spend on cloud migration, deployment and maintenance.
Many business owners make the same mistake because they never consider ROI.
Just to get a competitive edge, they adopt costly IT solutions and aren’t able to leverage it to claim high ROI.
So, before going for IT services Toronto, you should calculate the ROI – money you can make or save with respect to the money you spend.
Another reason that you should not select any IT-related services is high TCO (Total Cost of Ownership.)
ROI puts emphasis on the money you save/earn with IT solutions, while TCO puts emphasis on the money you spend to accommodate,use, and maintain the IT solution.
Many times, after spending huge on IT solutions, you need to replace it in future because your business requirements have changed.
In such cases, the TCO increases dramatically.
Surprisingly, if your hired technology partner wants, he can provide you with an IT solution that can adapt to your changing business needs to ensure low TCO.
We talked about the problem because we have solutions!
Well-defined ROI strategy and business transparency are the solutions!
Whenever a business owner approaches us for IT-related services, we first calculate ROI.
If we find low ROI and high TCO, we either don’t provide him with the service or provide him with the service but with a high ROI strategy. (To get it or leave it is the client’s call!)
In other words, we promote transparency and put a clear picture to clients!
If interested, you have two options now.
Leo would have explored both options!