More SMB Love Needed

Microsoft vs Google in Cloud Computing

By G C Network | May 22, 2008

Many took note of the Randall Stross essay in the New York Times last weekend. In it he succintly described why Microsoft is failing in it’s attempt to bridge the…

IBM at Forrester IT Forum

By G C Network | May 22, 2008

At the Forrester IT Forum yesterday in Las Vegas, Rick Lechner, VP Enterprise Systems at IBM, made the following comments The changing face of globalization (transformation from exporting to multi-nationals…

HP & EDS

By G C Network | May 21, 2008

In an interesting take on his Enterprise Architecture blog, Chris Pearson sees the HP acquisition of EDS as a ploy by HP to remain relevant in a cloud computing world.…

The Library of National Intelligence (LNI) – A Possible Cloud Application

By G C Network | May 20, 2008

In the MAZZ-INT Blog a couple of weeks ago, Joe Mazzafro artile on “Intelliigence and the Concept of Customer” stated that a “realistic business model for the IC to assume…

Net-Centric Enterprise Services – An Update

By G C Network | May 19, 2008

Net-Centric Enterprise Services (NCES) is about to enter the initial operational test and evaluation phase. NCES are a set of capabilities that support network-centric warfare operations and information sharing. It…

Microsoft Renews Yahoo Bid

By G C Network | May 19, 2008

Microsoft renews Yahoo bid and is now offering to buy a piece of Yahoo. I believe this is just the opening of the second round. Follow me at https://Twitter.com/Kevin_Jackson

Cloud Computing Risk

By G C Network | May 18, 2008

CIO.com reviewed the top three concerns that the IT executives have regarding the adoption of cloud computing – security, latency, and SLA. These concerns seem similar to those previously assigned…

Grid vs. Cloud – May 17, 2008

By G C Network | May 18, 2008

From Geva Perry’s April 25th blog Cloud Computing overtaking the term Grid Computing With the term “cloud computing” rapidly being hyped everywhere, I did this little exercise on Google Trends…

Blogsphere Clouds – May 16, 2008

By G C Network | May 18, 2008

The cloud is billowing in the blogsphere !! Virtual Computing in the Cloud — How a Universal Dialtone Will …Virtual Cloud Computing represents the next wave of virtualization and offers…

Gartner on Cloud Computing / Yahoo vs. Icahn- May 15, 2008

By G C Network | May 18, 2008

Gartner thinks that cloud computing may be the next big thing: By 2012, 80 percent of Fortune 1000 enterprises will pay for some cloud computing service and 30 percent of…

 

 

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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