More SMB Love Needed

Second Government Cloud Computing Survey

By G C Network | April 1, 2009

Earlier this week I had the pleasure of presenting at the Sys-con International Cloud Computing Expo in New York City. My presentation, The View from Government Cloud Computing Customers, reviewed…

Navy NGEN and Cloud Computing

By G C Network | April 1, 2009

I spent half of today in downtown DC at the Navy Next Generation Enterprise Network (NGEN) Industry Day.  In case you’re not familiar with NGEN, this project will be the follow-on…

An Ontology for Tactical Cloud Computing

By G C Network | March 25, 2009

This week I’ve had the pleasure of presenting at two fairly unique conferences. On Tuesday I was in San Diego at the Simulation Interoperability Standards Organization (SISO) Workshop. SISO is…

Federal Cloud Computing Roadmap

By G C Network | March 24, 2009

ServerVault, a long time provider of IT hosting services to the Federal government, has been discussing cloud computing quite a bit with their current (and future) customers.  The repetitive nature…

Booz Allen Hamilton Lays Out Path To Cloud

By G C Network | March 23, 2009

Now that cloud computing is seen as a viable technology for the government marketplace, management consulting leader Booz Allen Hamilton is now providing cloud transition guidance. In his article “Cloud…

Is Sun Rising or Setting?

By G C Network | March 19, 2009

Today was strange. First Sun announces it’s open cloud computing platform. Sun Unveils Open Cloud Computing Platform “Sun on Wednesday announced plans to offer its own Open Cloud Platform, starting…

A Conversation with Emil Sayegh, Mosso General Manager

By G C Network | March 16, 2009

Last week, Mosso announced their new “Cloud Server” and “Cloud Sites” offerings. They also exited “Cloud Files” from beta, positioning themselves as a challenger to Amazon. With this as a…

Playing the Cloud Computing Wargame

By G C Network | March 12, 2009

Today at FOSE I tried my hand at balancing traditional IT, hybrid cloud offerings and commercial cloud offerings on a craps table. Just to set the scene, the Booz Allen…

Vivek Kundra Nominated for Federal CIO

By G C Network | March 10, 2009

Mr. Kundra’s quote from the Wall Street Journal says it all: “I’m a big believer in disruptive technology. If I went to the coffee shop, I would have more computing…

7th SOA for E-Government Conference

By G C Network | March 5, 2009

On April 28, 2009, Mitre will be holding its biannual SOA for E-Government Conference. This conference is one of the region’s premier opportunity for federal managers and MITRE Subject Matter…

 

 

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.)

 

 

Cloud Musings

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