What is a virtual CIO

One of the most popular questions I get when talking to current or potential clients is, what is a vCIO (virtual CIO) and how does it differ from technical consulting. I can see where there is a confusion of the difference as there are similarities in the two.

First off, let me explain what a virtual CIO is

In traditional terms a CIO is an executive that is responsible for developing and guiding the overall technology strategy for a business and keeping it in line with the business objectives. This is often not a short term plan that is being developed, but an evolving roadmap to guide the business for several years at a time. The critical part of a CIO’s job is to properly align the needs of the business with the technology. These needs can include everything from budget requirements, data retention, business continuity / disaster recovery, and planning for growth.

Now the dilemma is while large organizations can justify the ROI on a full time CIO / CTO, for most small to mid-size organizations this is a challenge. The result of this is the technology management is passed to people without the proper skills on both sides of the equation. This is a gap that can cause many issues; such as poor technology architecture, increased infrastructure support cost, lowered efficiency, and more.

This is where the vCIO can come in. A virtual, also sometimes called a fractional, CIO can assume the position on a part time or as needed basis. The great thing about a vCIO is that you are essentially sharing the cost of an executive instead of forking over a high salary. Depending on the vCIO service that you choose, you can generally work with them to have more time during major design or project needs. Most vCIO’s will work with the management / executive team of a business on budgets, business technology plans, etc. It is generally a good idea to have either a 6 moth or a year long contract so there is continuity in the business. Another great use for a vCIO is when you are in a search for a permanent CIO either due to growth or because you have recently lost one. This allows the gap to be taken care of during the transition. In most cases the vCIO can help with the search for the permanent placement.

vCIO versus Technology Consulting

Now that we have explained what a vCIO is and can do for your business, it may be obvious where the differences lie when compared to a technology consultant. Whereas a vCIO is overseeing the whole technology plan and business technology alignment, a consultant is generally brought in to focus in a particular area. For example if a company wants to look at building a disaster recovery plan, they would generally bring in a consultant that will focus on that particular area. In many cases a company already has a CIO and wants to bring in additional experts to work on certain areas of need. In most cases, like with vAusTek, a consulting company or vCIO company offers both. There is not always a need to bring on a vCIO if there is a CIO in place.

The vCIO is a fast growing area in the IT field. It is here to stay and you will see more and more that larger organizations move to using virtual executives for many functions. It does not work for all types of organizations, but it is a great alternative to those who need the expertise without the expense.