Monday, August 08, 2011

The cost of doing business

As a business owner I am acutely aware of how much it costs to run a business, and that it costs more to hire employees and provide them the benefits they deserve than it used to. Since a lot of our customers are in the Financial and Medical sectors of the economy discussions on the implications of Dodd Frank and the effects of the new medical rules and mandates on the costs of doing business are increasing. I often hear that our customers are being caught between allocating budget money for productive purposes or for mandated regulatory compliance.

In 2008 the Small Business Administration published a study on the cost of compliance with federal regulations:

http://archive.sba.gov/advo/research/rs371tot.pdf

“The portion of regulatory costs that falls initially on businesses was $8,086 per employee in 2008. Small businesses, defined as firms employing fewer than 20 employees, bear the largest burden of federal regulations. As of 2008, small businesses face an annual regulatory cost of $10,585 per employee, which is 36 percent higher than the regulatory cost facing large firms (defined as firms with 500 or more employees).”

Note that these numbers do not include the cost to meet state, county and municipal regulations and rules.

In these sectors with ever increasing costs, everyone recognizes it’s getting harder to hire and maintain a great staff to maintain their high availability networks and storage infrastructures. We’ve heard from our customers that our low cost systems and support release budget dollars to pay staff and meet the ever increasing costs of maintaining each employee. Now, a growing number of customers are outsourcing their storage administration tasks to Zerowait, avoiding the regulatory burden and costs of hiring additional employees while continuing to provide the data access their customers require.

No matter how the global economy changes there are always going to be reasons for organizations to economize. Zerowait is focused on providing the services and products our customers need at prices that enable them to reach their goals.

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