What is a vCIO?

That’s a great question and I understand not a term used as much as it should be these days.  A vCIO is a Virtual CIO, meaning a Chief Information Officer that is outsourced to help provide guidance and implementation to better align business strategy with IT. This is especially crucial in the SMB (Small/Mid-size Business) world where more often than not an organization does not have a CIO. In fact, more often than not, an SMB will have a small technology staff focused only on tactical issues. With tight budgets, multiple projects as well as multiple responsibilities, most SMBs have very little time or even energy to devote to strategic business/technology planning.

With all of the technology developments of the recent years, even months: look at the growth of Cloud Computing, BYOD (Bring You Own Device), IoT (Internet of Things), BYOA (Bring Your Own Application); as well as security concerns, government/industry concerns and the growing technology of the future, the SMB is more in need of a solid technology strategy than ever before. Something that was once only realized by their larger counter-parts, a vCIO can help on a trusted, outsourced basis. A vCIO is someone who understands the needs of the business, can translates those needs to IT as well as understanding the needs/concerns of IT while translating that back to the business. The vCIO is a bridge that allows business to leverage IT in other ways beside simple support of the network/email (as an example).  It is a role that is both business management consulting AND technology consulting, best of all the SMB does not need to carry the burden of overhead and benefits often associated with hiring a full time CIO.

It’s important to note here the difference between a vCIO and the vCTO.  While the vCIO is a mesh of technology and business, more often the role is filled by a business person with technology expertise; the vCTO (Virtual Chief Technology Officer) is more concerned with the bits and bytes of an organization. The vCTO is purely focused on technology and technology-only issues, where the vCIO will first understand the needs and goals of the business and then utilize technology to help address those needs and goals.  For example, the vCIO will provide such things as:

  • IT Assessments
    • Objective analysis of IT Operations/Current state view with key performance benchmarks/Policy and Procedures/Governance
    • Vendor management
    • Risk management
    • Project and business initiative prioritization
    • Compliance
    • Feasibility studies
    • IT Investment Strategies
      • Capital investments versus operational expenditures/IT budgeting
      • IT legacy infrastructure migration/Outsourcing analysis/Facilities configurations
      • IT technology solutions, ROI analysis
      • New technology evaluations such as CRM/ERP/SFA
      • IT Strategic Planning & Goals that align with the Needs & Goals of the business

    And more depending on the situation. Using a vCIO allows the SMB owner/management to focus on the growth of the organization; it allows the SMB IT managers to focus on operations; it adds the benefit of a senior level IT Executive without the overhead costs and finally it allows the SMB to drive value from their investment in their technology environment.  The SMB deserves the same technology strategies/competencies that larger companies rely on with full-time CIOs. The vCIO offers this and is a viable, affordable alternative.

    LeadershipRobert SiegerCIO, vCIOComment