by Michael Pascuzzi

Digital transformation and innovation are becoming the keystone of modern business strategy. Automating facilities, collecting and analyzing more information, streamlining actions, and creating fresh ideas all require complex procedures. Complex doesn’t have to mean complicated. Moving processes to cloud architecture is viable and introduces high ROI possibilities. However, moving is not without cost.

Where Cloud Costs the Most

Business units often move to the cloud independent of the whole, obscuring the visibility of cloud resource consumption.
It’s become all too easy for anyone within the organization to buy or subscribe to cloud services and bypass centralized procurement or specified procurement policies. These bypasses lead to unforeseen, unplanned, unbudgeted spends.
When it comes to IaaS, IT spending can grow even faster. Without the right tools in place cloud resources are not optimized; servers can be running 24/7 unnecessarily, and expensive software can be left idling on forgotten servers. Compounding the issue vendors are not forthcoming when it comes to detailing which services have been run up and by whom — resulting in organizations being unable to attribute exact costs of IT spending to the right business unit.

Optimization of Cloud ROI

With visibility into what individual business units are using, the IT department can then begin the process of cost optimization. This type of optimization is a great way to understand end-user needs and preferences. It is also an opportunity to ask users about the value of the technology they have deployed and what problems it is solving. Knowing this can help other business units solve similar issues through better pan-enterprise deployment of such technologies.

Cloud Economics and Collaboration

It’s important to note that many business units require access to the same information. Individual copies throughout a business are redundant and potentially spreads misinformation; this is where cloud economics meets collaboration. Nowadays, it seems inconceivable, and almost lousy form, that co-workers would send hundreds of versions of the same word document across an organization via email. Instead, using a chat platform can help colleagues stay connected wherever they are, but everyone has to be on the same page. For many businesses, Office 365 provides software solutions to achieve these goals, allowing many users to edit a single document concurrently, in real-time via Word.

Still, many enterprises use on-premises Microsoft Office, and while that is a great tool, Office 365 takes collaboration to the next level. The Cloud Easy service from Crayon helps organizations migrate to Office 365 to achieve that next level.

Enhancing the collaboration efforts of your business can be impeded if you lack the appropriately skilled resources. The easy button to overcome such issues is to lean on an expert partner like Crayon to smooth your organization’s digital transformation journey to the cloud.

Interested in learning more about combating increases in IT spending? Don’t miss Crayon at The 20’s upcoming VISION Conference!

And to learn more about The 20 and how we can help your business, be sure to check us out here.

by Dan Astin

The statistics are daunting. A great percentage of SMBs and, in particular, MSPs and other tech services firms will never reach $5,000,000 in gross revenue. As such, growth through careful acquisition of other SMBs or their assets is a great way for MSPs to increase lead gen, sales and scale.

Here are 5 fundamentals — practical keys — to increasing the likelihood of success in pursuing acquisitions:

1) Assets v. Stock

Consider buying assets only. Acquiring assets without assuming liabilities may provide the greatest ROI at the most competitive price. Many times the seller just wants out, and the tribulations that led to the decision to sell are often better left behind.

2) Acquisition Entity

The decision whether to acquire through your existing entity or a NEWCO will depend on a variety of factors, including newly-enacted tax laws. Consult with your financial, legal and tax advisors to be sure you make the most beneficial decision.

3) Due Diligence

The “opportunity inspiration” of the deal often results in a rush to get the deal done. There is no substitute for caution through due diligence in an acquisition. First up, on every deal pursuit, there should be financial and other diligence depending on the nature of the deal. Consult your professionals to assist. Even basic diligence through review of financials and tax returns can help avoid wasted time and acquisition costs when the numbers don’t measure up.

4) Term Sheet

Assuming you get past the diligence stage, work with your professionals to draft a term sheet with the core deal components. Many times, once the parties have term sheet in front of them, one of the parties determines they are not on the same page after all and at the very least disconnects may be easier to work out. Going straight to an APA may be less cost-effective if the deal is not consummated. At the contract stage, parties often become intractable when their deal term expectations are not met.

5) Just Business

Remember that it’s a business deal. Becoming emotionally attached to the thrill of the “great” deal will color judgement and lead to disappointment if the deal does not close — or, worse yet, buyer’s remorse when unbridled enthusiasm wanes after closing and it becomes clear it wasn’t such a great deal.

Dan Astin is a business attorney and consultant with offices in Philadelphia, Wilmington and San Diego. He’s a Managing Partner of Ciardi Ciardi & Astin.