If you’ve been in the IT industry for awhile, you’ve no doubt noticed that it goes through one hype cycle after another. Many of us witnessed the dot-com explosion, implosion and subsequent MSP market conversion. Watching the cloud hype cycle of the past few years is a little disturbing -- not because I lack excitement about the massive possibilities of distributed computing, utility billing, virtualization advancements and economies of scale; they are large parts of my company’s business model. What bothers me is the extent to which companies will go to make a claim about the cloud. The exaggerations and omissions -- stemming from either ignorance, lack of risk aversion or outright dishonesty -- being used to sell cloud computing and cloud storage services are just nauseating. As an officer of a company competing in this environment, it’s especially hard for me to ignore these problems with cloud storage.
You want to enter in a fully burdened labor rate for this field. What that means is that you want to take the base hourly rate, plus 25-30% for employer payroll taxes, benefits, vacation/holiday time, etc.
For example, someone making $80,000 per year will typically work 52 weeks of 40 hours, or 2080 hours. $80,000 divided by 2080 is $38.46/hour. Multiply that hourly rate by 1.3, and you get $50.00/hour. Of course, rates of pay, taxes and benefits will vary from city, state and company; but 30% is usually a good number to use. Don’t forget to account for time-and-a-half or after-hours rates of pay if patching is being done in the late evening, early morning, or weekends (in order to avoid impacting user productivity).