More SMB Love Needed

SOA-R!! Another Hit !!

By G C Network | October 9, 2008

Yesterday’s SOA-R event coverage by TECH Bisnow Washington was yet another indication that cloud computing is real in the Federal space. Thanks goes to Mr. Dave Stegon from Bisnow on Business and Pauline Healy from Apptis.  Thanks…

World Summit of Cloud Computing, December 1-2, 2008, Wohl Centre, Ramat Gan, Israel

By G C Network | October 8, 2008

I am proud to announce that I’ve been invited to speak at the “World Summit of Cloud Computing“, December 1-2, 2008, at the Wohl Centre in Ramat Gan, Israel. As…

MIT Survey: What A Response !!

By G C Network | October 7, 2008

We’ve been quite surprised by the number of survey responses we’ve received.  THANK YOU !!  That subset of the cloud computing community interested in national security and public sector applications…

Cloud Auction Business Model

By G C Network | October 3, 2008

The other day I talked about how cloud computing could change the government’s budgeting process. Well what about this! Last week, Google filed a patent application that describes a system…

Oracle: To Cloud or Not To Cloud …

By G C Network | October 2, 2008

First Oracle’s Larry Ellison bashes cloud computing as nothing but hype and then his company announces that it will let customers run Oracle 10g and 11g databases and its Fusion…

Capacity planning in a cloud environment

By G C Network | October 1, 2008

In her post “Cloud computing killed the capacity star“, Ivanka Menken brings up some good points. Just think what changes this could bring to the government budgeting process. The trends…

Cloud Databases

By G C Network | September 30, 2008

Joab Jackson, in his “Cloud computing leaving relational databases behind” article, makes some pretty interesting points on the incompatibility of relational databases with cloud-based infrastructures. He first list the various…

The 6 layers of the Cloud Computing Stack

By G C Network | September 29, 2008

From Sam Johnston’s Taxonomy post Clients (examples) are computer hardware and/or computer software which rely on The Cloud for application delivery, or which is specifically designed for delivery of cloud…

Thank You KMI Media Group

By G C Network | September 26, 2008

In this month’s Editor’s Perspective, Mr. Harrison Donnelly announced the new KMI Media Group collaborative effort. Military Information Technology will be using the blogosphere to get their government and industry…

VMware, Cisco and the Virtual Datacenter

By G C Network | September 26, 2008

Last week, VMware and Cisco announced their latest collaboration for the virtual datacenter of the future. The Cisco Nexus® 1000V distributed virtual software switch is expected to be an integrated…

 

 

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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