More SMB Love Needed

Yahoo-Microsoft Merger Proxy Fight – May 14, 2008

By G C Network | May 18, 2008

As I alluded to last week, “It’s not over ’till it’s over” Carl Ichan Looking to Start Yahoo Proxy Fight Money – The Microsoft-Yahoo Merger may not be over. Billionaire…

Now in the ring Sun/Amazon! – May 04, 2008

By G C Network | May 18, 2008

The Sun/Amazon cloud may be announced soon. Sun CEO Jonathan Schwartz delivered a short keynote at Startup Camp in San Francisco, an adjunct event to the JavaOne Conference. According to…

Microsoft gives up on Yahoo? – May 04, 2008

By G C Network | May 18, 2008

“Cloud computing is far more than a concept. With Broadband Internet connections now all-but-ubiquitous and microcomputers and locally-run software now so trouble-prone, Cloud Computing’s time has come.” This is a…

IBM, Google and the Blue Business Platform – May 01, 2008

By G C Network | May 18, 2008

Today was good !! This morning. there was a main session built around “CIO 2.0”. The basic premise was that CIOs have now earned a seat at the business management…

The coming cloud – April 30, 2008

By G C Network | May 18, 2008

I attended the IBM Public Sector briefing this morning. The IBM executives were clearly basking in a financial performance glow. After ending 2007 with increases in revenue, profit and earnings…

Google, Cloud Computing, and the US Intelligence Community – April 29, 2008

By G C Network | May 18, 2008

Just arrived in Los Angeles for the IBM Business Partner Leadership Conference. IBM is billing this as a “new” conference, but I have my doubts. I am, however, very interested…

Location Based Services – April 25, 2008

By G C Network | May 18, 2008

INmobile.org is a exclusive community for executives in wireless industry. As a member, I have the opportunity to participate in a number of interesting discussions about mobile and wireless technology.…

IBM Business Partner Leadership Conference – April 23, 2008

By G C Network | May 18, 2008

I just completed registration for the IBM Business Partner Leadership Conference. This is a new invitation-only conference being held this year in Los Angeles from Wednesday, April 30th through Friday,…

Telephone & Web = WOW !! – April 21, 2008

By G C Network | May 18, 2008

The power of the Internet and the web lies in its ability to provide access to information. The mobile web takes this one step further with its ability to provide…

The Power of Family Oral History – April 19, 2008

By G C Network | May 18, 2008

Although I just started this yesterday, I’ve decided to backdate this entry to last Saturday, April 12, 2008. That’s when my family had it’s 3rd Annual Black History Party. The…

 

 

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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