One Size Fits All In Virtual Servers

Server virtualization isn’t just for the big guys anymore. Small businesses can also benefit from virtualization, allowing offices of any size to access the latest enterprise-quality technology.

Ron Kramer has built his business around the idea that server virtualization can help small businesses work better, and his one-man IT-shop-for-hire is thriving.

After leaving dot-com California and his IT services business in Petaluma just before the bubble burst, Kramer settled in Portland, Maine, for a change of pace. But as word of his IT knowledge spread, he was “cajoled into building a practice,” he said. “The next thing I know, I’m supporting a law office.”

In 2001, he started All Computer Solutions in Portland and now has more than 20 high-end boutique small-business clients.

Before virtualization technology, Kramer was putting two to four servers in each client’s office. Today, he takes a different approach. “I’ll put in one medium-powered HP ProLiant ML Series Server, and I’ll build it out with VMware GSX Server,” he said. “I’ll build a very robust host and we’ll have anywhere from three to six guest operating systems on that hardware. What virtualization allows me to do is become hardware independent.”

The virtual machines run Microsoft Small Business Server 2003, additional modules of Windows 2000 for vertical applications and a few Windows XP guests for antispam or filtering software. The system is backed up hourly and tape is taken off-site each night, allowing Kramer to do rapid disaster recovery, if necessary.

“If the backup media is off-site, I can recreate the environment and put it on a standby virtual machine,” Kramer said. “Reduced downtime—that is a function of how quickly I can restore their media, that is the biggest benefit of everything that has to do with their architecture.”

All of Kramer’s customers use much the same hardware and software, which he said benefits both his business and those of his clients. If each environment were different, there would not be enough time in the day to competently support all his clients because the technology is so sophisticated, he said.

“It allows me to manage their environment a lot more effectively and efficiently,” Kramer said. “I don’t necessarily have to go on-site. I can do more things remotely. It allows me not to be stuck with a piece of hardware. I have one place to go and can use remote technologies to manage those operating systems.”

One customer, Nancy Fannon, managing partner of Fannon Valuation Group, a business valuation and litigation support service in Portland, said Kramer’s solution has been incredible for the business.

“I had no idea that we could have this kind of software for a small business like ours. It allows us to do everything that I thought you could only do with big companies,” she said. “We can have access anywhere at any time. It’s great to be able to be at home and log in as if we were right in the office.”

Kramer said remote access is driving a lot of the investment in new server infrastructure. He also said his small-business clients in law, accounting and retail want newer, richer applications that leverage horizontal productivity tools. “We have customers of 25 [seats] or less that feel like enterprise customers now,” he said. “We’re charging top dollar and getting paid top dollar.”

Bringing advanced technology to the small business is good business. Kramer expects revenue this year to reach $400,000, with about 80 percent coming from services, including recurring service contract revenue. His customers generally buy or lease systems from Hewlett-Packard, and he receives a commission, preferring not to deal with the receivables.

“The things that I do for small customers would have cost hundreds of thousands of dollars just four or five years ago,” Kramer said. “It is really affordable and creates a great amount of opportunity for people working in this market space to provide wonderful solutions for their customers.”

John Longwell contributed to this story.

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