More SMB Love Needed

Procurement in a Virtual Business World

By G C Network | May 8, 2018

Today, companies are undergoing a dramatic change in their environment and processes.  Many groups these changes together as “Digital Transformation,” but that industry buzzword fails to describe the essential details…

Taking the Canadian Insurance Industry Digital

By G C Network | May 6, 2018

“Digital disruption isn’t just for hip start-ups. Incumbents can not only compete but actually lead radical industry change if they pay attention to the way their business model is shifting…

#DigitalTransformation Means Hybrid IT and Multipath

By G C Network | April 24, 2018

The cloud is ubiquitous in today’s business world. This operational model is changing both data center operations and application development processes across multiple domains. As the manager of data centers…

Wasabi Hot Innovations Tour: How “Hot Cloud Storage” Changes Everything!

By G C Network | April 8, 2018

Digital storage requirements are growing exponentially. Budgets simply can’t keep up and existing Federal Data Center Consolidation Initiative (FDCCI), “Cloud First” Policy, Federal IT Acquisition Reform Act (FITARA) and Modernizing…

(Lack of) Patch Management Highlighted in US Congress

By G C Network | March 9, 2018

According to the former Equifax CEO’s testimony to Congress, one of the primary causes of this now infamous data breach was the company’s failure to patch a critical vulnerability in…

Experience “The Big Pivot”

By G C Network | February 21, 2018

Graeme Thompson, SVP/CIO Informatica The Big Pivot Podcast explores Digital transformation and its effect on every business in every industry. In exploring the business benefits of data-driven transformation, it is…

Innovation At The Seams

By G C Network | February 19, 2018

by Kevin L. Jackson & Dez Blanchfield Today’s real business innovation is happening at the seams of industries. Moreover, after listening to this podcast between Sanjay Rishi, GM Global Cloud…

Digital Transformation & Intelligent Automation

By G C Network | January 31, 2018

  By Kevin Jackson & Dez Blanchfield   Digital Transformation often needs Intelligent Automation. This type of change is the focus of a recent “Pioneers of Possible” podcast.  In discussion…

The Ascent of Object Storage

By G C Network | January 23, 2018

Over the past few years, the data storage market has changed radically. The traditional hierarchy of directories, sub-directories, and files referred to as file storage has given way to object…

The Deer Hunters: An Information Technology Lesson

By G C Network | January 14, 2018

by Kevin Jackson & Dez Blanchfield   In episode four of the “Pioneers Of Possible” podcast series, Dez Blanchfield caught up with  Max Michaels, General Manager, IBM Network Services in…

 

 

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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