More SMB Love Needed

Stateless Computing

By G C Network | August 15, 2008

A few days ago I read a review of Merrill Lynch’s Jeffrey Birnbaum LinuxWorld keynote on stateless computing. “With stateless computing, users’ settings and data are automatically saved to the…

Cloud Services

By G C Network | August 14, 2008

38% of 456 business technology professionals in a Information Week survey indicated that they currently use or will consider using services from a cloud provider. This seems much betterthan the…

Amazon, Elastra and the New Enterprise Data Center

By G C Network | August 13, 2008

Last week Amazon made an investment into Elastra. Some see this as Amazon’s enterprise play. Others see it as move towards the viability of private clouds. I see it as…

Microsoft Midori

By G C Network | August 12, 2008

Last week word got out that Microsoft’s new research project codenamed Midori. According to Information Week “the Midori system is being called Microsoft’s first cloud-based OS, and it could one…

Dell Trademarking Cloud Computing

By G C Network | August 11, 2008

There has been quite a bit of chatter lately over Dell’s attempt to patent “cloud computing”. Last week, the US Patent and Trade Office put an end to those aspirations…

Rob Enderle Cautions on Cloud Computing

By G C Network | August 8, 2008

Words of caution from Rob Enderle in “The Real Truth and Technology and IT”: “The key to success in the cloud will be keeping solutions simple, plus understanding and mitigating…

3 Important Point for Federal Government Cloud Computing

By G C Network | August 7, 2008

Point 1: In May, Verizon and AT&T were awarded a DHS task order for just under $1B to provide telecommunications services to the department. Verizon won the lead provider’s spot…

A Cloud Methodology

By G C Network | August 7, 2008

Although this was published in June, I just saw it and felt it was to good not to repeat: A Methodology for Cloud Computing Architecture Peel off the applications individually,…

IBM Invests Nearly $400M on Cloud Computing Centers

By G C Network | August 6, 2008

In a press release last week, IBM says that it will spend $360 million to build its most sophisticated, state-of-the-art data center at its facility in Research Triangle Park (RTP),…

Cloud Computing and the NCOIC

By G C Network | August 5, 2008

According to their website, The Network Centric Operations Industry Consortium (NCOIC) has scheduled a session on cloud computing at their upcoming plenary session in September. In case you haven’t heard…

 

 

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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