There is so much I could say here, but I just don't have the time to write it. Let me instead answer your questions briefly.
Hardware failures are handled under the agreement, but we don't cover the cost of the replacement hardware itself. We will provide the labor to fix the problem though. As far as other things we can't fix, I haven't run into them. If I did, we would pay for a third-party to fix the issue. Just that simple. We guarantee a fix, unless it is something completely out of our hands (Microsoft bug, etc.)
We guarantee a response time to all issues, but no fix time since that can't be controlled. To be honest, I've never had an issue that dragged on where the client complained. We usually solve most before they are aware of them.
No hindrance to the repair side as these contracts come first. They are your bread and butter once you get them right. I hate break/fix, and managing a network, once you get the hang of it, is so much easier and less time consuming. For most new contracts, we spend quite a bit of time getting things settled down. But within three months, we are maybe receiving a call or two a week.
If you automate and manage like you should, most clients shouldn't take but a couple of hours a week to actively manage most weeks. It all depends on the size and scope of the contract, but the client is paying you for things to be as quiet as possible. It is a different mindset, but it is better for you and the client. There are still unexpected issues (we have had some ISP problems recently with a couple of clients), but nothing too stressful.
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