Case Study: Verticomm’s AEC Niche Promises Unlimited Ceiling for Managed IT

Verticomm, the managed IT division of Denver-based All Copy Products, has been providing the full range of managed network services since 1999. Nearly 20 years later, the full dossier of products and services may bear little resemblance to its original platform, but the core philosophy of Verticomm’s business mantra remains the same.

“IT technology requires constant knowledge and passion in order to accommodate the needs of the client,” said Calvin Wanner, Verticomm’s sales manager. “Security is huge right now, and when clients don’t need to invest in hardware, that’s a key. Accommodating for growth internally and externally for our clients is critical.”

Verticomm has clients ranging in size from one to 500, with a huge focus on the SMB market. In the past two years, Verticomm has carved out a niche in the architecture, engineering and construction (AEC) space which it serves through FORTRUST (recently acquired by Iron Mountain), one of the only tier three data center that is publicly utilized, according to Wanner. FORTRUST is “bomb and bulletproof” and runs on indefinite power. Verticomm’s platform consists of a handful of physical and virtual servers that are scalable to clients’ needs.

An Expensive Refreshment

In 2016, Verticomm embarked on a GFX platform that focused on virtualization. An engineering firm with about 80 employees was looking to roll out a technology refresh, including new laptops and servers. Given the nature of the vertical, this client required high-end laptops with a price tag of $6,000 apiece and five servers that cost approximately $15,000 each. In all, Wanner estimated that the client’s technology refresh (including management) would tally upwards of $750,000 or more.

Calvin Wanner,
All Copy-Verticomm

“All these high-end graphics users require you to do one of two things: buy a super server(s) and load all those applications on them, which can still limit you on bandwidth if you’re not in the network of that facility. Or two, you keep it local to the desktop,” Wanner said. “If you’re using AutoCAD, SolidWorks or other leading engineering/architecture applications, they require a super computer—a very beefy, high processing, high RAM, highly-graphics intensive computer. These computers cost anywhere from $3,000 to $7,000 each. A small- or medium-sized engineering firm is investing in refreshes on these laptops every two or three years.”

When engineering firms hire employees, the cost of additional laptops, servers, licensing, etc. can cost upwards of $12,000 per employee, according to Wanner.

Enter Verticomm.

The MNS provider hammered out a three-year pact with the engineering firm last August. Verticomm provides monitors and terminals for the client that points back to its data center. “We’ll adjust the horsepower as they require, turn it up or turn it down,” Wanner noted. “Our agreement covers them, regardless of how many apps they bring on or how many resources they need. They don’t need the expensive laptops. In all, they’re reaping a savings of 33 percent which, when you include the management, is upwards of 50 percent.”

One of the many benefits of tapping into Verticomm’s data center is the ability to work remotely at home or on the road. Previously, users would need to download the CAD file, upload it to the server, render the file and send it to team members for review. Now, the work can be done virtually simultaneously. This provides more flexibility for engineers to meet project deadlines regardless of work engagements that may take them out in the field.

Early Challenges

The first six months of the engagement were somewhat difficult, with unknown applications coming to the foreground during the migration process. Wanner believes that the more information that is shared between client and provider, the greater the chance of mitigating unknowns that can stymie the ramping up phase of a project.

“It’s not just on the client, it’s on us,” he said. “We have to be able to identify areas of concern. People don’t necessarily understand IT or know what they have, and we have to help guide them through the process.”

Despite some growing pains, weekly meetings with the client and consultations with their senior engineers and decision makers spearheaded the team approach that has enabled both client and MNS provider to find a comfort zone with the platform. Wanner is optimistic that Verticomm’s GFX platform, which accounts for 15-25 percent of overall MNS revenue, can rise to nearly 50 percent as it builds momentum.

As for advice to new managed IT practitioners, Wanner preaches patience. “It’s a long road with a lot of hard work, but very rewarding,” he said. “It does cost a lot of money and don’t expect to turn a profit for your first few years. Those early years were a challenge to us, but having the right resources—from sales and operations teams—is essential to success in the managed service industry. At the end of the day, people are your profits. Your employees need to be passionate about what they do and be caring for the clients. If they’re not, it doesn’t work.”

 

Erik Cagle
About the Author
Erik Cagle is the editorial director of ENX Magazine. He is an author, writer and editor who spent 18 years covering the commercial printing industry.