More SMB Love Needed

“Cloud Musings” Named A “Top 50 Blog”

By G C Network | August 27, 2010

My appreciation and thanks goes out to Jeremy Geelan for including “Cloud Musings” on his list of the Top 50 Cloud Computing Blogs. Thanks is also in order for “HighTechDad”…

Will Oracle Buy Informatica?

By G C Network | August 25, 2010

According to 1,250 ERP Software Advice readers that will be Oracle’s next acquisition. Terradata came in a close second in this race, suggesting that Oracle will “…play it safe next time…

What’s Next For Oracle?

By G C Network | August 14, 2010

Watching Larry Ellison and Oracle over the years as it has morphed itself is a real study in market dynamics.  It’s transformation from database company through middleware provider to now…

Enterprise Architecture Enables Innovation: Melvin Greer, Lockheed Martin

By G C Network | August 11, 2010

Earlier this week, my good fried and NCOIC colleage, Melvin Greer was interviewed by Rutrell Yasin of Government Computer News. In the interview, Mel focused on the importantance of entrprise…

Are You A Cloud Architect? NJVC Needs YOU!!

By G C Network | July 31, 2010

If you are a cloud computing architect, have I got news for you!  NJVC, one of the largest IT solutions providers supporting the U.S. Department of Defense (DoD), is building…

“Army Private Cloud” RFP Released

By G C Network | July 28, 2010

Last week the US Army released  a procurement solicitation for the Army Private Cloud.  This $249M solicitation calls for a 1-year base period with four, 1-year options. Department of the…

Cloud Musings Direct Launches

By G C Network | July 15, 2010

In response to request, the inaugural “Cloud Musings Direct” newsletter was launched this week.  This bi-weekly electronic newsletter will highlight important government cloud computing industry trends and events.  If you…

CloudExpo Europe 2010: Not Your Father’s Prague

By G C Network | June 30, 2010

When my good friend Jeremy Geelan invited me to speak at CloudExpo Europe in Prague, Czech Republic my imagination went into overdrive.  Being a child of the 60’s and a…

NCOIC Plenary Highlights Collaboration and Interoperability

By G C Network | June 29, 2010

Last week in Brussels, Belgium, the Network Centric Operations Industry Consortium highlighted it’s support of collaboration and interoperability through an information exchange session with the National Geospatial-Intelligence Agency (NGA) and…

GovLoop “Member of the Week”

By G C Network | June 22, 2010

Thank you to Radiah Givens-Nunez and GovLoop for the honor of being their Member of the Week for June 21-25, 2010. Created in 2008, GovLoop is an online social network…

 

 

In a recent post, titled “10 Surprising Facts About Cloud Computing and What It Really Is”, Zac Johnson highlighted some interesting facts about cloud computing in the SMB marketplace:
  • Cloud Computing is up to 40 times more cost-effective for an SMB, compared to running its own IT system.
  • 94% of SMBs have experienced security benefits in the cloud that they didn’t have with their on-premises service
  • Recovery times for SMB are four times faster for businesses using cloud computing when compared to those not utilizing cloud services.
  • For SMB, energy use and carbon emissions could be cut by 90% by using cloud computing, saving the environment and energy costs.

 

These advantages show a strong indication that SMB information technology should be dominated by the adoption of cloud computing services.  Although one of the most prominent of these cloud services is Microsoft’s Office 365 (O365), a recent survey cited by CIO.com suggests that 83% of U.S. small and medium businesses (SMBs) have yet to use any form of O365.  If cloud services can deliver such remarkable improvements, why are SMBs holding back?
 
According to the survey, part of the reason is that SMBs often lack the required internal resources needed to analyze the cloud migration opportunity.  This type of analysis often requires the testing of multiple cloud-based business and productivity services as well as more focused attention on data protection capabilities.  Many SMB executives see cloud computing as nothing but marketing hype and are more focused on running their businesses.  Cloud services may also be perceived as being very confusing, technically overwhelming, and even frightening.  Another key technical challenge is dealing with a more sophisticated networking environment that may require virtual private network (VPN) management and remote infrastructure access.
 
The networking challenge is further exacerbated by the requirement to support a distributed mobile workforce with secure mobile device access to company network resources.  NETGEAR is making an impressive bid to address this challenge by their recent release of a new line of small business switches, access points, and NAS devices equipped for native cloud management via a new mobile application.  The app, called Insight, is designed to let administrators or unskilled end users discover and configure multiple wired and wireless network devices.  The users can then monitor and manage these network resources remotely through an intuitive touchscreen interface.  Insight is designed to fill a critical gap in the networking market for simple SMB solutions that provide robust functionality.
Switching from software or CPU license-based pricing to the subscription-based utilization models offered by cloud service providers can also require an SMB to conduct a careful economic analysis of the change.  This change can potentially divert finance and IT staff from their core jobs. The reality is that most cloud services aren’t designed for SMB consumption.  Small businesses are therefore likely postponing cloud migration because they don’t know where to start or don’t possess the internal resources to manage through the transition.
 
This small business industry challenge is bound to become harder. According to International Data Corporation (IDC), the small and medium business spending on IT hardware, software, and services, including business services,  is expected to increase at a compound annual growth rate (CAGR) of 4.2%, reaching $668 billion in 2020.
 
As SMB cloud adoption grows, the need for more cloud transition support for the SMB marketplace will also continue to grow.  As a historically underserved market, more SMB tailored cloud services and cloud adoption support are desperately needed.  Unfortunately, the SMB market is typically seen as an afterthought by enterprise vendors, and small business solutions are designed as dumbed down versions of the enterprise solutions, let’s hope that more companies like NETGEAR will wake up and serve this clear and growing SMB marketplace need.
( This content is being syndicated through multiple channels. The opinions expressed are solely those of the author and do not represent the views of GovCloud Network, GovCloud Network Partners or any other corporation or organization.)

 

 

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