Why Your Company MUST Upgrade Windows XP, Office 2003 & Small Business Server 2002 by 2014
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The document outlines the necessity for businesses to upgrade from Windows XP and Small Business Server 2003 due to security risks and compliance issues, especially in regulated industries like healthcare. It includes various scenarios illustrating potential upgrade paths and solutions for different types of businesses, along with practical considerations for technology investments. Additionally, it highlights important questions regarding technology choices, email platforms, and the implications of software expiration on business operations.
Why Your Company MUST Upgrade Windows XP, Office 2003 & Small Business Server 2002 by 2014
- 1. Why Your Company MUST Upgrade Windows XP, Small Business 2003 & Office 2003 by 2014 www.carceron.net @Carceron @chadmassaker
- 2. Who The Heck Is Chad Massaker? • 17 years in Information Technology Management experience (and not even the most senior technology expert at Carceron). • Certified HIPAA Security Professional • Named to the MSPMentor 250 List multiple times as amongst the 250 most influential MSP executives in the world. • Recently cited in Cobb inFocus Magazine on Information Security • 2010 Metro Atlanta Small Business Person the Year Top 5 Finalist • Technology Author • Frequent Panelist at Other Technology Conferences www.carceron.net @Carceron @chadmassaker
- 3. Who The Heck Is Chad Massaker? • I am founder of Speakeasy, a members-only cigar club for B2B business owners & execs in Atlanta with 200+ members. • I recently won a gold medal in the International Brazilian Jiu Jitsu Federation’s Annual Pan Am Tournament, the largest, most prestigious tournament in the world. • I like to SCUBA dive too. • I love wine: drinking it, learning about it, hosting events about it... In fact: www.carceron.net @Carceron @chadmassaker
- 4. Aqua Vino: TONIGHT, 7pm, Georgia Aquarium • 200+ wines from all over the world • Atlanta's premier restaurants • 500+ species of aquatic life • Amazing live & silent auctions • Purchase Tickets at the Door for the Grand Tasting That Starts at 7pm for $150 each www.carceron.net @Carceron @chadmassaker
- 5. Who The Heck Is Carceron? • Founded in 2002 by Chad Massaker & Jeffrey Lee out of a college apartment in Kennesaw. • Recently named to the MSPMentor 501 list • Named to the MSPMentor 100 numerous times before • Named to CRN Magazine’s Next-Gen 250 List for the past three years in a row • First company in Metro Atlanta to earn CompTIA’s Managed Services Provider Trustmark. • Fully HIPAA Compliant per the 2013 HIPAA Omnibus Rule for HIPAA Business Associates • Cobb Chamber of Commerce Top 25 Small in 2005 and 2006 www.carceron.net @Carceron @chadmassaker
- 6. About The Presentation: Trivia Prizes • You Can Purchase the Card at www.theDiningOutCard.com for $125 per Year • Provides 25% Off Your Total Dinner Bill For Up to 4 People at Over 65 Participating Atlanta Participating Restaurants • “Total Bill” = Food and Drinks (Yes, alcohol too!) • Also includes restaurants in: • Denver • Miami • New Jersey • Philly / South Jersey Café Intermezzo Escorpion STK Atlanta The Glenwood Tony Morrows Anis French Bistro Basil’s High Velocity Bluefin Imperial Fez Nino Cucino Italiano Tantra Taverna Plaka Kouzina Christos Red Sky Café Vena La Paz Mezza Luna Noodle Decatur Table 33 Taverna Fiorentina Sun in My Belly Sway … and this is only about 1/3rd of the list or participating restaurants. www.carceron.net @Carceron @chadmassaker
- 7. Trivia Question: What Year Did Windows XP Come Out? A. B. C. D. 2000 2001 2002 2003 www.carceron.net @Carceron @chadmassaker
- 9. What It REALLY Means www.carceron.net @Carceron @chadmassaker
- 10. Trivia Question: The Health Information Technology for Economic and Clinical Health (HITECH) Act was signed into law to promote the adoption and meaningful use of health information technology. It also addresses the privacy and security concerns associated with the electronic transmission of health information, in part, through several provisions that strengthen the civil and criminal enforcement of the HIPAA rules. HITECH was actually enacted as a part of which Act? A. Sarbanes–Oxley Act of 2002 B. Emergency Economic Stabilization Act of 2008 C. Right to Information Act of 2005 D. American Recovery and Reinvestment Act of 2009 (What we call “The Stimulus”) www.carceron.net @Carceron @chadmassaker
- 11. Trivia Question: PCI-DSS Stands For? A. Payment Card Industry Data Security Standard B. Payment Card Infrastructure Data Security Standard C. Payment Credit Industry Data Security Services D. Procurement Card Infrastructure Data Security Standard www.carceron.net @Carceron @chadmassaker
- 12. What Microsoft’s Announcement REALLY Means… Especially if You are In Healthcare and/or Take Credit Cards. HIPAA ~ 164.308 (a) (5) (ii) B) PCI DSS Requirement #6 Protection from malicious software (Addressable). Procedures for guarding against, detecting, and reporting malicious software. All critical systems must have the most recently released software patches to prevent exploitation. Organizations should apply patches to less-critical systems as soon as possible, based on a risk-based vulnerability management program. Translation: If You Continue to Run End of Life Software You are Engaging in Willful Neglect www.carceron.net @Carceron @chadmassaker
- 13. Intermission: My Dirty Little Secret • What I do as a Managed IT Services Providers Do (or, How we really make our money?) – We’re paid to be proactive managers of your network, security, etc. – Since we are flat fee, every request for support reduces profitability of an agreement, similar to insurance. For example, the more claims you make against an insurance policy, the less profitable it is. – We do sell hardware and software because we are experts on it and it is expected. But the margins are razor thin. – We do make money on project labor installing new hardware and software, but it is not our preferred sources of revenue. We like the lazy-insurance-leverage model. In summary: I AM NOT HERE TO SELL YOU AN NEW WORKSTATION OR SERVER. …unless you want a managed IT services agreement to go with that www.carceron.net @Carceron @chadmassaker
- 14. The Options • Step 1: How Do We Pay For It? – Is everything staying on premise? – Do we have money in the bank or available credit? • Step 2: Do I Simply Upgrade To the Equivalent Current Level Tech? … or, Do I Consider Other Options Like Tablets and Cloud? www.carceron.net @Carceron @chadmassaker
- 15. Trivia Question: What section of US Tax Code, often called “The Hummer or SUV Deduction”, allows a taxpayer to elect to deduct the cost of certain types of property on their income taxes as an expense, rather than requiring the cost of the property to be capitalized and depreciated. This property is generally limited to tangible, depreciable, personal property which is acquired by purchase for use in the active conduct of a trade or business A. B. C. D. Section 13 Section 75 Section 123 Section 179 www.carceron.net @Carceron @chadmassaker
- 16. Section 179 • • • • • • • Equipment (machines, etc) purchased for business use Tangible personal property used in business Business Vehicles Weighing More Than 6,000 lbs Computers & Computer "Off-the-Shelf" Software Office Furniture Office Equipment Property attached to your building that is not a structural component of the building (i.e.: a printing press, large manufacturing tools and equipment) • Partial Business Use (equipment that is purchased for business use and personal use: generally, your deduction will be based on the percentage of time you use the equipment for business purposes). • Can include certain kinds of leases…. THIS IS HUGE!!! www.Section179.org or Talk to Your CPA for More Information www.carceron.net @Carceron @chadmassaker
- 17. Replacing Small Business Server 2003 • Small Business Server Line Completely Discontinued By Microsoft • For Companies who like Microsoft products, especially Outlook, the upgrade path looks something like this: www.carceron.net Less Than 25 Users & 20+ User and/or Fast No Plans to Be Near Growth Companies or Over That Within 5 Years • Office 365 Medium • Office 365 Business Ed for Enterprise Plan for Email and Office Email and Office Licensing Licensing • Windows 2012 • Windows 2012 Std Server Essentials (or higher for Active Directory depending on your User Management, app needs). File Storage, etc. • Consider other • Consider other advanced options advanced options like Box.com for like Box.com for collaboration collaboration @Carceron @chadmassaker
- 18. The $2,000,000 Question: Do I Even Still Need a Server? Are You… YES a regulated business? (healthcare, finance, etc.) * running a line of business application that will only run on a server? NO 10 or less employees and ok with having all your data in the cloud? a branch office? ** * needed because of user security and audit requirements ** depends on WAN design. www.carceron.net @Carceron @chadmassaker Probably Not
- 19. So then the $1,000,000 Question Is: Which Email Platform Do I Go To? Are You… Self O365 GApps Subject to HIPAA Compliance? X Addicted to Outlook? Frugal? Don’t Mind Checking Your Email in a Browser All Day? Needing to collaborate on documents? Primarily Use an Android Smartphones & Tablets Primarily Use Windows Smartphones & Tablets www.carceron.net @Carceron @chadmassaker Google will not sign a Bus. Assoc. Agreement which makes them an unusable vendor for all healthcare providers under HIPAA / HITECH Act.
- 20. Replacing Windows XP New PC Upgrade Win7 OS to Win Pro 647 Pro 64-Bit Bit What You Have Non-End User Desktop or Laptop (e.g. runs a time clock) New PC Win8 Pro 64Bit End User Desktop End User Laptop: No Touchscreen End User Laptop: Touchscreen * End User High End Workstation (AutoCAD, etc.) * Personal preference. Might want to wait for the release of Windows 8.1 due out anytime this month www.carceron.net @Carceron @chadmassaker
- 21. Do I need to get Windows Desktops? What about tablets? Or Chromebooks? Windows Desktops, Latops/tablets Your situation Android Tablet or iPad Chromebook 100% Cloud. High Consumption. Simple Data Entry. 100% Cloud. Complex Data Entry (Needs Full Keyboard) * 100% Cloud But Need Offline Capability (Regardless of Date Entry Needs) Runs Client-Server Applications Over VPN** Runs heavy on Microsoft Stack: Office, Dynamics, etc. *Obviously you can get Bluetooth keyboards or higher end units like the ASUS Transformer which have built in keyboards. But screen sizes are still very small for prolonged worked. Would suggest adding an external display if you wanted to stick with a tablet-keyboard solution. ** obviously this does not matter for virtual desktop infrastructure environments. For VDI, any device will work. www.carceron.net @Carceron @chadmassaker
- 22. Trivia Question: Is Office 365 a traditional software license or a subscription? • License • Subscription • Both www.carceron.net @Carceron @chadmassaker
- 23. Upgrading Office 2003: Not as Simple as It Sounds… You Have Some Decision to Make First Office 2013 Home & Business Your situation Office 2013 MOLP Office 365 Google Apps You’re cheap and/or broke You’re upgrading from Small Business Server 2003 and you love Outlook You’re running Small Business Server 2008 or 2011 You’re a larger firm and already have Microsoft Exchange and just need to upgrade Office You’re ready for a change from Microsoft Products All Together And Aren’t Afraid of Technology You’re Comfortable Checking You Email in a Browser vs an Application All Day Long www.carceron.net @Carceron @chadmassaker
- 24. Some Possible Scenarios WARNING: The following scenarios are inspired by true events. Any resemblance to persons living or dead is all in your mind. No really…. It is. www.carceron.net @Carceron @chadmassaker
- 25. Scenario #1: Spunky Real Estate Group • Miley, the owner, bought an SBS 2003 server in 2007 • Uses it for email and file storage only. No line of business applications. • Does a lot of field work: contract signings, photos of properties, etc. • Interested in learning how tablets can streamline day to day operations • Has 7 employees, all of whom are under 35 or less. • Still recovering from the real estate market crises. So funds are tight. www.carceron.net @Carceron @chadmassaker
- 26. Solution: Spunky Real Estate Group • 2 Things Stand Out In Terms of Making Google Apps the Go-To Recommendation: – The people in the company are young (and most likely not addicted to Microsoft tech) – the company is broke • Google Apps will replace their email service and Google Drive might be Sufficient for File and Photo Storage. But probably not, so we will recommend they use Box.com for file storage, sharing and collaboration. • 5 Employees are always in the field. So replace their Windows XP desktops with tablets. Get new PCs with Windows 7 Professional for Heather and her Office Admin. (Or maybe a tablet with Windows 8 and docking station for Heather) www.carceron.net @Carceron @chadmassaker
- 27. Scenario #2: Cheatham Law Firm • • • • • • • Saul bought his SBS server in 2004 when he only had 10 employees. He’s since grown to a 50 person firm. Saul is old school is not fond of anything being in the cloud, but is coming around to the idea of at least letting email be hosted. He runs a practice management system that currently uses SQL Express, but was told by the PMS vendor that his databases are getting too large and he will need to migrate to the standard edition of Microsoft SQL Server very soon. He’s considering investing in other line of business applications to help streamline the firms operations His Partner and Associate Lawyers have been complaining about their inability to multi-task and perform document review effectively from their old Windows XP PCs. Most of Saul’s clients are Healthcare Providers so he is subject to HIPAA compliance as a Business Associate Saul has a huge “pharmaceutical” client in New Mexico that has made him very wealthy. Money and access to credit are not an issue. www.carceron.net @Carceron @chadmassaker
- 28. Solution: Cheatham Law Firm • This is a pretty straight forward, old school upgrade to the next version of what he has now with a couple enhancements. Let’s start with the servers: – Purchase 2 beefy physical servers capable of running 3-5 virtual servers each. 1 server is a primary server and will host multiple virtual servers, the first two of which will be: 1. 2. A Domain controller (auditing on for compliance) An application server with Microsoft SQL Server Std. for the Practice Management System – He will have spare horsepower to host other virtual servers for other applications he is considering. – The other physical server is a redundant failover server. (time is money). www.carceron.net @Carceron @chadmassaker
- 29. Solution: Cheatham Law Firm • His email is moved to Office 365 and Archival service is added for HIPAA compliance. – This also makes his employees happy since each employee gets 5 licenses per employee of Office Pro Plus to install on whatever devices they need to get work done. • He replaces his ancient Windows XP Desktops with top of the line HP Windows 7 desktops that support up to 2 monitors each. • Saul probably spent well over $100,000 for all of this but he’s happy because he can depreciate it all this year due to Section 179 of the IRS tax code. www.carceron.net @Carceron @chadmassaker
- 30. Scenario #3: FogieCare LLC • • • • • • • Headquartered in West Palm Beach Florida. Gregory is CEO over 25 outpatient clinics across the country. They also provide in-home care. The only servers (20 of them) are located in their own “datacenter” in West Palm HQ Office. (16 are Windows Server Std 2003, 4 are light weight Windows Server Std 2008 servers) He has 350 desktops and laptops all running Windows XP and Office 2003 or 2007, broken down as follows: – 200 desktops in treatment rooms – 100 laptops issues to nurses providing in-home care – 50 desktops and laptops (mixed) for administrative and executive staff They currently use Google Apps for email. They like all of their line of business applications and don’t use Microsoft Office much but are Outlook addicts. The only reason they are even talking with us is that they are worried about going out of HIPAA compliance when support for Windows XP and Office 2003 expires. Due to ongoing issues with Medicaid and their government contracts, cash flow can be inconsistent. They might capitalize the project, but they want financing options too. www.carceron.net @Carceron @chadmassaker
- 31. Trivia Question: What huge problem does Gregory have right now that he needs to fix even before he thinks about replacing the Windows XP units or upgrading the Office licenses? www.carceron.net @Carceron @chadmassaker
- 32. Solution: FogieCare LLC • If they are worried about HIPAA compliance, they have a more immediate concern than the Windows XP Workstations: Google Apps. Google will not sign a Business Associate Agreement which means that FogieCare cannot use them by law. Continuing to use Google for their email can result in a massive Willful Neglect fine of… A LOT! – Luckily, Office 365 is HIPAA compliant and comes with a Business Associate Agreement. So FogieCare can transition over to HIPAA compliant email and handle upgrading all of their old Office licenses one move. This is a no brainer for them. Office 365 Enterprise also has subscriptions where the Office license is not included for the people who already have Office 2007. www.carceron.net @Carceron @chadmassaker
- 33. Solution: FogieCare LLC • After some research, we find out that your EMR vendor is about to release a Windows 8, touchfriendly update to their software. So, for all of the treatment room desktops, we recommend some sexy HP All-in-One Units with Windows 8 Professional. For the home-care nurses: Windows 8 tablets (encrypted for HIPAA compliance of course) • The execs and the office staff are mostly power users, most of whom are not fond of the new Windows 8 interface and most of whom spend little time in EMR system except to pull reports, so we fit them in Windows desktops and laptops respectively. www.carceron.net @Carceron @chadmassaker
- 34. Solution: FogieCare LLC • • • What about the Windows 2003 servers? Since they are not the Small Business Server edition, we have another year or so to worry about this technically (July 2015)… However… After careful analysis of their financial situation and making so financial projections, FogieCare decided that it would be better to lease the equipment. An since the they are doing all of these desktops, they might as well throw those 4 servers in there too and get those done now. – Oh, and our project labor can be built into the lease as well. – And the lease can be depreciated under Section 179 of the IRS Tax Code. Final Thought: We might also recommend that Gregory scrub all of their servers and move everything into a datacenter located in a state less ravaged by hurricanes. www.carceron.net @Carceron @chadmassaker
- 35. Summary & Close • End of Life Support Date for Windows XP, Small Business Server 2003 & Office 2003 is April 8th, 2014. – But this does not mean you have plenty of time because… • You only have until December 31st, 2013 to use the Section 179 deduction in this tax year. • Start planning now. Especially if you in a regulated industry. • Ask for help. Especially if you are considering Cloud options. www.startupvitamins.com www.carceron.net @Carceron @chadmassaker
- 36. Questions, Book, Door Prize & How to Get a Hold of Me • chad@carceron.net • Voice, Video & SMS: 678-529-6310 • /chadmassaker www.carceron.net @Carceron @chadmassaker