Virtualisation – What does it all mean and do I need it?

You may have heard about Virtualisation, perhaps on the Web, maybe from an technology supplier. maybe even me! It’s sounds exciting but what exactly is it and is it something you need or even want? It’s a slightly complex thing to understand but I’ll try and explain it in simple terms.

Typically, you get a computer, with a processor, a hard drive and some memory. The operating system is installed on the hard disk, you load up your software in to the operating system and off you go (whether a laptop, desktop or server).

In the “olden days”, servers were usually tasked with one main task, such as Email, File storage or Database. As processing power became cheaper over time it became worthwhile to look at consolidating some of these services (which led to the release of Microsoft Small Business Server). As server technology became even more powerful the next stage was to look at physical server consolidation hence the birth of Virtualisation.

Virtualisation creates a layer where the client operating system (be it Windows Desktop or Server) is run on a Virtual Machine sitting on some kind of host server. So this leads to the next questions, what is a Virtual Machine? And what is a host server.

We’ll start with the host server as this is the foundation that everything sits on.

A host machine will typically this will be a relatively powerful machine, with large amounts of processing power, lots of disk space and ram. On this we install a base Operating system. The big names in Virtualisation are VMWare and Microsoft. Both offer a free (essentially unsupported) or paid for versions of the software (Microsoft offer it as a component within Windows Server 2008 and 2012) and as a stand-alone product (Hyper-V). We won’t look at licensing here as it’s outside the scope of this article.

Once we have the base Operating system installed and configured, we have something called a Hypervisor, which is the system that allocates and manages resources on the base server for the virtual machines.

Virtualization concept

So what is a virtual machine?

Essentially a Virtual Machine is a collection of settings, such as number of processors, size of disks, how much ram etc. The beauty of this is that physical hardware is now abstracted from the operating system, meaning that a standard (and consistent) set of components are supplied to the virtual machine which makes it hardware independent.

VMWare LogoApple Mac users have been using some of this technology for some time with software such as Parallels and VMWare which allowed them to run a Virtual Windows desktop on their Mac so they can run Windows Applications within their Mac. Microsoft brought it in to the mainstream with Windows 7 Professional and the XP mode which was provided to give some compatibility respite for older applications.

Here at The Engine Room we now use visualisation on almost all of our server implementations. With Windows Server 2012 Microsoft made it possible to run one physical and two virtual machines with one license, thus reducing the cost of having a virtualised environment. This means that with a single license you can have two servers running separate applications, such as one with Microsoft Exchange and run with File and Print services, all for the cost of one Server license! We also like using it because (most of the time) the server Operating system is quite reliable and it’s the hardware that can cause headaches. By removing the hardware from the equation reliability improves as will the process of managing upgrades (such as increasing capacity and performance).


So should you be using it? Server side it makes sense as it faciliates the use of additional servers without always needing new hardware (disk space and memory excepted) and an easy migration path to newer or different server hardware. Desk side it can make sense although really if you need to be using different platform applications I would seriously consider whether you are on the right platform or set up a dedicated machine in that function so you are not trading off performance or capacity for compatibility (see Roman’s article about that here).

Is training the best Investment you can make


Here at the Engine Room, we often get support requests along the line of “How do I….?”. Often this is for fairly simple things such as adding an email signature or setting up an Out of Office. However sometimes it’s something a bit more involved such as how to do pivot tables in Excel or setup permissions on SharePoint.

So this got me thinking. How much more productive could your team be if they were educated so that they could unleash both the potential in the software and in themselves.

Now, we all know most solutions to most problems can be solved with a quick Google – indeed we know that most technical problems have been seen before and so it’s simply a case of asking the right question and identifying the right answer. Likewise, there are lots of “How to’s” on the internet for almost every productivity application or platform.

But sometimes, it’s neither productive or beneficial in having staff doing self help, compared to getting in some outside help.

For instance, if you are performing a company-wide transition to Office 2013 (via Office 365 as an example) your staff may find themselves with both a different version of Windows and Office; if they’ve been using Windows XP and Office 2007 or earlier, then the leap to Windows 7 or 8 and Office 2013 can be quite substantial.

In these cases it’s very worthwhile getting in some help to guide your team through the changes so that as soon as the transition is completed they can be up and running as quickly as possible. The small investment in time and money will reap huge dividends later as they will already have some familiarity with the new system.

Likewise, if you are introducing something new like SharePoint or MS Project into your organisation it’s definitely worth getting some outside help – this should be done in tandem with your development team as both of these systems will have a uniqueness based on how your business operates. Quite often we come across businesses that have implemented a new system that no-one knows how to use and ultimately take up fails because they have no reason to stop using the old system. Getting your staff to buy in to these changes start much earlier with the scoping of a project but training will help seal the deal.

We work with a number of training partners, notably Alpha Training whom we’ve worked with for many years.


They provide bespoke training in your offices designed to fit around your needs and can even help with educating beyond usability and into administration (useful if you are running SharePoint).

Please get in touch if you want to find out more about how training can help your business or if there is anything else we can help you with.

Remote working? The good the bad and the ugly

In the olden days you’d dial in with your modem to the office network, log in and (very slowly) be able to download and work with files. However, this was unreliable and so slow to be something only used in desperate situations.


Once ADSL became normal the use of VPN (Virtual Private Networking) became the preferred method of accessing the office network. However, at the same time the size of the files we were using had also grown considerably and before long VPN became slow and tedious to use as well.

With the advent of Cloud based services, such as Office365 and VoIp, the ability to access your data without needing to use VPN’s or other dial-in systems suddenly opened up the ability to detach yourself from the office without huge levels of complexity.

From a business continuity perspective this is amazing – the need for a Disaster recovery centre was removed and as long as your staff had an internet connection they could work. And better still, the outside world wouldn’t even know!

In any case, since the advent of VPN, more businesses permitted staff to work from home. Some companies, such as MoneyPenny and even the AA used this to have a large proportion of their workforce based permanently from home, giving great flexibility to their staff and create significant reductions on staff costs, as well as environmental benefits from reducing the number of vehicles on the road etc.

This however creates it’s own set’s of issues!

Firstly, the member of staff is no longer visible to the rest of the business in the same manner as an office based staff. This means that you have to have high levels of trust that productivity will be maintained. If the staff is more results or task based then this might not matter.

Next, it can get a bit lonely for home workers – factor in how to keep in touch and maintain motivation. Regular team meetings will help as well as social gatherings to help engage your staff.

There are others factors as well, but the last one I’ll mention here is that staff can also misuse this ability and use “working from home” as a way of getting paid for a day when they don’t feel like coming to the office. You will need to consider how you manage this in terms of your company policies.

Now, there are other options too. If you consider that there will be occasions where it is simply not time efficient to get to the office or other practicalities that prevent getting to the office and working from a Starbucks or Costa coffee doesn’t give you the right environment to work in. With this in mind, a number of businesses are creating places where you can work outside of the office.

If you are a Regus customer, or utilise their BusinessWorld service, you can have access to their meeting rooms and workspaces. However, this can be expensive if your needs are a little variable or infrequent.


My friend Tom Ball recently set up a service called NearDesk which (as Tom himself describes) is much like an Oyster for desk space on a PAYG basis. What’s great about this type of space is that it creates nice hubs to go and work and be amongst and around other people, thus preventing the loneliness you may get if working from home.

So some food for thought when considering having a more flexible work force and working environment. As always, if you want to know more, get in touch and we can help you find the best solution for your business.

How does a Finance Director go about budgeting for IT?

Tanya Srikandan is a Chartered Accountant, with over 10 years financial experience. Her business, Flame Financial, provides financial support and consultancy to small businesses.

In this piece, she offers some of her thoughts when considering IT budgeting, from a non techie point of view.

As a Finance Director, working predominantly with small or charitable organisations, it is my job to ensure that enough funds are allocated for ‘IT’. But what exactly is IT these days and what is the right amount?

I know that the finance department of most organisations tend to have their own ‘special’ reputation – but the truth is, we care very much about making sure the rest of the business has the right tools to do their job, that all our employees are productive and confident that their equipment will not let them down. And on those occasions where their equipment does fail – we have to make sure we can get them up and running as soon as possible – after all, employee downtime affects our profitability and our ability to compete. Like many FDs, particularly for smaller organisations, I am responsible for Business Continuity Planning (what we need to do in the event of a disaster) as well as preparing risk analyses for high impact events happening, all weighed up against costs of prevention or doing nothing.

So back to my first question – what is IT?

What should we be considering when setting the annual budget? The industry is moving so quickly, and some of us (including me) are in danger of being left behind, as a result of the fear of the unknown and therefore not investing in the right technology. And this will have a huge impact on our organisations. There are two issues I think most Finance teams have fallen foul of in the past – firstly, not discussing requirements with the IT department, or IT services provider and secondly, considering IT expenditure in terms of the current year only.

IT is so critical to businesses these days, not only to stay ahead of the competition, but to be aligned with the needs of our customers. IT should not just be viewed as necessary for the day to day, but as a real investment into the future of your organisation. However, without speaking to the ultimate users of the technology (your employees and clients) and the experts (your IT team), you won’t be able to make a robust and well thought out decision as to what you need.

There are three categories of IT – Operational, Investment and Strategic. Let me explain my understanding of the different categories.

Operational – These are your day to day IT needs, such as tech support, licences, server maintenance software upgrades and critical events.

Investment – This is where you would be introducing new initiatives, or improvements to existing kit or software, including your website, better firewalls and the like.

Strategic – Looking at a longer term scenario, this would include new technologies, fundamental changes to business processes or completely new systems.

The annual budget process of course forms part of the larger business strategy process – so ideally you will already be communicating with your operational leaders regarding their budgets and what they will need for the coming few years. As part of this process, you should be speaking to your IT team to determine improvements and efficiencies that can be made – but more importantly, their view as to what should be budgeted for the above.


Operational IT requirements, for example, are critical for running your business. You should avoid cutting costs here, particularly if you are experiencing trading or operating difficulties. The last thing a distressed business needs is for its IT to fail. So, within this category I would throw in server maintenance and replacement, key software upgrades and administration of your IT systems – such as your IT support.


I would classify these costs as those which improve your existing technology and equipment. So not critical in the same way as Operational requirements, but vital for the longevity of your organisation. If cash is tight, or if finance is required elsewhere within the business, these items could be deferred to a future period, without materially impacting the health of the business. However, likewise, if your business does have some spare funds, these initiatives could equally start sooner than originally intended.


So, today these costs may not seem essential, and are therefore quite likely a good candidate if savings need to be made. However, by virtue of what they are, they are likely to be tied into the strategic objectives of your business. Therefore be mindful that if these have to be cut now – you don’t lose sight of them.

Now, the fun part. How much is the right amount to budget?

In order to ensure that your business is best placed to operate within its market place competitively and efficiently, getting the right cost split between these categories is important. Ideally, you will be in a position to allocate funds to all three, but this is not always going to be possible. Warning! Don’t continually cut out your Strategic costs as an easy option to save on your budget – your organisation needs these, otherwise it will be left behind.

Okay, so I know, a lot of this is easier said than done, particularly if you are a small business or a not for profit organisation, and you do not have an abundance of funds. The most important piece of advice I can leave you with? Set aside cash whenever funds allow, to enable you to execute future IT initiatives, including budget not spent. These reserves can also be used in the event of a serious failure of your technology. As a small business, the last thing you need is to be stuck. Ensuring you have sufficient budget allocated to operational / day to day costs, should be high up on your list.

£60 per person per month is considered sufficient to cover all your operational, and therefore critical needs. This should represent around 60% of your total IT spend (fund allowing) with 20-30% put aside for Investment, and 10-20% for Strategic spend. This equates to £1,200 per annum per employee, and for a business with 35 employees, this totals £42,000.  For a small business this could feel expensive, especially as IT is sometimes considered as an intangible benefit and simply a cost.

However, if you consider an average office salary in London of £25k, this equates to less than 5% of their annual cost. But now consider what happens when, for example, as a result of failing to upgrade or improve critical software, your member of staff was out of action for 1 or more days. This equates to £100 plus per day, not including the cost of lost business. Should your server fail, for a business with 35 users, this now reaches £3,500 per day.

I know from experience, that another by-product of suffering a failure in your equipment, is the resultant workload from trying to ‘catch up’, as well as affecting staff morale, particularly if this is a regular occurrence. Last minute or panic IT purchases also tend to be more expensive. And let’s not forget the impact on your industry – you are now operating at a capacity lower than your competitors.

I mentioned earlier, that if you have to save costs somewhere in your IT budget, look at your Investment and Strategic costs first. Your business can survive a small nip and tuck here, for a year or so. But don’t lose sight of these areas. Please do look at other areas of your business first – and identify where savings can be met elsewhere. For example, what about your marketing budget (or is there scope for some Investment funding to be included here?), or your office maintenance and cleaning contracts – when were these last reviewed? New technology, faster and better hardware, more sophisticated software and the like – is out there and available to everyone, including your competitors …

Woah, too much too soon?

If this not something you have really thought about before, don’t panic! Now is as good a time as any to start. Take a moment to chat with your managers, and your IT team – and find out what you really need and how you can take advantage of what is out there, in order to achieve your objectives. Don’t forget, your closest competitor is already doing it!

If you need some financial advice regarding your organisation’s budget or some further information on what is your optimal IT spend, please get in touch.

Office 365 – Everything you need to know!

A little while I wrote a piece about choosing which edition of Office 2013 to get. Judging on the number of questions I get about Office 365 there seems to be some misunderstanding as to what it actually is.

O365 Logo

Many people see it as just a different way of getting the Office desktop software on their computer and paying monthly rather than buying a copy outright.

It’s not. It’s much more than that.

In a nutshell, Office 365 is Microsoft’s collective brand for their SaaS (Software as a Service) or Cloud portfolio. It comprises of a number of different elements, of which the key ones we will explore here.

Exchange Online

This is Microsoft’s Hosted Exchange service – rather than having your Exchange Server on a server in your office this is where your email is provided as a service. Key benefits are no server, no need to worry about backup and very high uptime or availability.

SharePoint with Office WebApps

SharePoint is an interesting one. In some respects it can be considered as a document management system, but really it fits in to the Intranet/Extranet space and allows you to publish documents, shared content etc to both internal and external parties. Additionally, it also comes with Office Web Apps which is essentially a cut down version of Word, Excel and PowerPoint which will allow you to edit documents within the Browser without having to have the applications installed locally, or needing to download the document before editing (which you still can if you want).


Lync is an internal communication system a bit like Skype except it’s a bit more private. It will link into your Outlook calendar so other people in your directory can see if you’re in based on your diary (it will also change to away if you’re away from your desk for a while) and there is a mobile app that you can have on your iPhone.

Office Professional Plus

The desktop software is the normal Office 2013 we already know. However this is the subscription version and (if you have it) will link in to your SharePoint site so you can access documents on your SharePoint site.

Additionally you can add things like Dynamics CRM online and other applications such as Project Professional and they will integrate in to your overall Office 365 package.

Do I need it?

It often depends on what you want and how you operate as a business. Personally, if you want a nice wrapped up solution that can provide a significant amount of your business technology in one place then I think it’s ideal. If you like running the very latest version of Office and other applications then it’s also ideal from a software lifecycle perspective and allows your entire organisation to be on the same version.

The big catch is that support from Microsoft directly is very limited and rely on Cloud Partners, such as us, to provide the skills in developing, implementing and supporting businesses using 365 as a platform.

If you’re giving it some thought and ready to start moving services in to the cloud then please get in touch to talk about this or any other Cloud services you might be considering.