Why More SMBs are Turning to the Cloud to Reduce TCO
More small and mid-size businesses (SMBs) seem to be taking the initiative to learn more about the benefits of the cloud. Determining why SMBs have this sudden keen interest in the cloud isn’t all that tricky.
If you shouted, "Cost Savings!" in a room full of SMBs, you'd undoubtedly be the center of attention. And it seems as if this is also the motivating factor as to why more SMBs are looking into cloud-based solutions to reduce expenditures.
Although it seems like an oxymoron to recommend investing in new technology to control costs, cloud-based solutions can be leveraged for a greater return on already inevitable operational expenses. By enhancing productivity and overall efficiency, the cloud could help spur business growth and profitability.
Here are few of the reasons more SMBs are opening up to cloud-based solutions...
Containing Costs – This is the big one. Every SMB wants their business to grow but that growth is accompanied by rising costs to maintain safe, reliable, and sustainable business technology.
On-premise solutions are expensive. If you’re paying someone $60K a year to manage and monitor your technology, and most of their day is spent performing routine maintenance tasks or running to the aid of the intern who complains that something is running slow, are you really getting a return on that investment? You can do better and your on-site IT support can do more for you.
The cost for cloud-based solutions have been found to be anywhere from 35% to 50% lower than with on-premise solutions. This is because the cloud can completely eliminate most infrastructure costs such as servers, databases, backup, operating systems, upgrades, migration, physical space, power and cooling, and associated in-house or third party staffing costs.
Greater Flexibility – No doubt you’ve been privy to an office Happy Hour conversation or two about Infrastructure-as-a-Service (Iaas) and Platform-as-a-Service (PaaS). Is that crickets we hear? Okay, well since you’re in the dark, the flexibility of the cloud makes it really attractive to SMBs. IaaS and PaaS are two increasingly popular cloud technologies because of their flexibility when it comes to big data analysis.
IaaS technology is flexible as it allows an as needed rapid deployment of resources. Basically, fast expansion to accommodate growth. SMBs can pay accordingly for this on-demand usage, giving them the ability to access and analyze the kind of big data seen at larger enterprises without having to pay for necessary hardware capacity.
PaaS technology gives SMBs the ability to affordably increase or decrease data storage capacity as needed.
Of course, there must be a need for big data analysis that justifies the use of these technologies. Many SMBs may be just fine using Microsoft Excel for data analysis.
Greater Mobility – Many SMBs are turning to the cloud to provide remote employees with access to communications solutions. Through the cloud, remote workers can use smartphones, laptops, and notebooks to access documents and files for internal and external collaboration.
As you can see, it's understandable why the cloud is being seen by SMBs as the "great equalizer" to take their business to the next level and stay competitive with even the big dogs despite budget and staffing limitations. It also helps that cloud-monitoring services have simplified the monitoring and management of SMB cloud deployments, alleviating a lot of the fear about migrating to the cloud.
How SMBs Can Utilize the Cloud To Build Their Business
There has been a lot of talk lately about the cloud and its ability to put small to midsize businesses (SMBs) and startups on a level playing field with large global enterprises. Can this be substantiated or is it a load of trendy hype to push SMBs to cloud-based solutions? We’ve compiled this breakdown of how the cloud can be used to boost profitability.
The Convenience Factor
It once took smaller companies and startups weeks to launch and configure their own IT infrastructure. Doing so also required a ton of overhead costs. Today’s cloud technology provides the benefits of this very same infrastructure but on an as needed and on-demand basis. SMBs can build a technology infrastructure for themselves online in less than a minute.
For example, a smaller agency that provides apps for its clients, can turn to a Platform-as-a-Service (PaaS) cloud provider. A PaaS provides companies an environment that enables them to more easily host and deploy apps. They do this by shielding developers from the hassles that come with the set up, configuration, and management of things like servers and databases.
Without having to worry about things on the infrastructure side, the company and its application developers can focus on creating innovative apps that will generate business revenue. Once their server is online and available, they can launch instantly with a 1-click deployment of their application.
Mission Critical Agility & Scalability
In the tech industry, everyone must channel his or her inner Maverick and Goose* because there is a need... a need for speed. Speed is everything and agility is mission critical. The cloud’s rapid provisioning of computer resources can offer additional storage space in mere minutes rather than weeks.
Having that kind of agility bodes particularly well for the scalability needs of SMBs. As business grows and the need to store more data increases, the cloud is flexible enough to resize your infrastructure on the fly and grow with you.
The cost of cloud-based solutions is much more beneficial to SMBs than the cost of traditional shared or dedicated hosting plans. This eliminates the high overhead that comes with buying dedicated hardware and hiring staff to run the servers.
Cloud technology has empowered SMBs by eliminating any need to make the same kind of costly upfront investments that large enterprise are able to incur. There is no longer a need for SMBs to spend thousands of dollars building out a massive infrastructure to support their big data applications. Better yet, backing up that big data is also inexpensive compared to traditional hosting solutions.
The Good, The Bad, and the Ugly of Mobility and BYOD
There are a lot of advantages to mobility in today’s workforce, but the Bring-Your-Own-Device (BYOD) movement has also brought its share of headaches as well.
We live in a society where everyone must have the newest technology. We are inundated with ads reminding us that the smartphone or tablet we just bought a year ago is laughably outdated and inferior to the upgrade that just hit the market.
People who have just bought the latest technology don’t want to have to set it aside to use a separate company-issued device. As a result, businesses are beginning to grant these employee-owned devices access to their file and email servers, databases, and applications.
While this brings certain competitive advantages to employers, it naturally carries many risks, too.
Let’s begin with the pros of BYOD...
The Advantages of BYOD
Greater Flexibility and Productivity - Personal devices allow workers more flexibility, which in turn can increase productivity. Today’s employee isn’t restricted to their office workstation or cubicle. They can carry out job responsibilities from home, a coffee shop, their child’s dance recital, or while traveling.
Reduced Costs – Purchasing even the most basic Blackberry for an employee can cost a company $900+ per worker. Costs like that can be completely eliminated by adopting a BYOD policy where employees are required to use their own device.
Happier Employees/Attractiveness to Job Seekers - Recent studies have found that 44% of job seekers are attracted more to employers who are open to BYOD and occasional remote work. Beyond this hiring advantage over competition, it has been found that employees as a whole are generally happier using the devices they own and prefer for work purposes.
Better Customer Service – This goes hand and hand with more flexibility and productivity. Mobility allows employees to occasionally resolve or escalate urgent client issues outside of normal working hours, and clients remember that kind of response time.
And now the cons of BYOD...
Disadvantages of BYOD
Compromised Data Security – Unfortunately, letting employees use their own smartphones, tablets, and laptops increases the likelihood of sensitive company or customer/client data being compromised. It is important for companies to establish a comprehensive mobile device security policy and never make any exceptions to it whatsoever. Really. No exceptions. Ever.
Employee Privacy – Many employees may oppose using their own devices for work, especially if it’s a company requirement that they aren’t reimbursed for. You have to remember that these are the same devices employees use to log into their Facebook and Twitter accounts or do their online banking. In this age of constant paranoia over big brother watching our every move, employees may be concerned that their employer will spy on them or access their personal passwords and information.
Handling Employee Turnover – Companies must consider how they will address the retrieval of company data and information from an employee’s device if the employee either quits or is fired. Some companies may require that employees only save or edit company files on their servers or use cloud-based sharing software like Dropbox to share and edit docs.
The Importance of a Mobile Device Management Tool
Obviously, businesses must keep track of all of the devices that access their server, applications, and data. Mobile Device Management helps enterprises centralize what is an otherwise chaotic hodgepodge of devices and operating systems. This ensures that all devices are configured, deployed, and properly monitored and managed. This is a smart way for businesses to embrace BYOD while securing data and applications across multiple devices.
Why SMBs Must Proactively Address the Threat of Mobile Hacks
More cyber criminals are targeting small-to-medium sized businesses. One reason for this is too many workplaces have insufficient bring-your-own-device (BYOD) policies in place. Some have none at all. Although firms are generally more knowledgeable about network security risks than in years past, they still woefully underestimate the security vulnerabilities linked to mobile devices like smartphones and tablets.
This is a real cause for concern since data breaches have the ability to put many already financially challenged SMBs out of business.
If customer/client data has been breached, there could be potential litigation costs, and naturally, lost goodwill and an irreparable hit to brand or company reputation.
Don’t Just Say You’re Worried About the Bad Guys... Deal With Them
SMBs say they view network security as a major priority but their inaction when it comes to mobile devices paints a different picture. A recent study found that only 16% of SMBs have a mobility policy in place.
Despite the fact that stolen devices are a major problem in today’s mobile workforce, only 37% of mobility policies enforced today have a clear protocol outlined for lost devices.
Even more troubling is the fact that those firms who have implemented mobility policies have initiated plans with some very obvious flaws.
Key components of a mobility policy such as personal device use, public Wi-Fi accessibility, and data transmission and storage are often omitted from many policies.
Thankfully, most SMB cybercrimes can be avoided with a comprehensive mobility policy and the help of mobile endpoint mobile device management services.
A Mobility Policy Is All About Acceptable/Unacceptable Behaviors
Your initial mobility policy doesn’t have to be all encompassing. There should be room for modifications, as things will evolve over time. Start small by laying some basic usage ground rules, defining acceptable devices and protocols for setting passwords for devices and downloading third-party apps. Define what data belongs to the company and how it’s to be edited, saved, and shared. Be sure to enforce these policies and detail the repercussions for abuse.
Features of Mobile Device Management Services
MDM services are available at an affordable cost. These services help IT managers identify and monitor the mobile devices accessing their network. This centralized management makes it easier to get each device configured for business access to securely share and update documents and content. MDM services proactively secure mobile devices by:
Specifying password policy and enforcing encryption settings
Detecting and restricting tampered devices
Remotely locating, locking, and wiping out lost or stolen devices
Removing corporate data from any system while leaving personal data intact
Enabling real time diagnosis/resolution of device, user, or app issues
It’s important to realize that no one is immune to cybercrime. The ability to identify and combat imminent threats is critical and SMBs must be proactive in implementing solid practices that accomplish just that.
More people today use personal mobile devices like smartphones and tablets for business purposes. Such devices, coupled with greater Wi-Fi accessibility and cloud services, have empowered us with the ability to access data and do business from practically anywhere at anytime.
Needless to say, many small-to-medium sized business owners have embraced the BYOD (Bring-Your-Own-Device) revolution. The benefits are obvious; increased employee productivity, enhanced services to customers/clients, and better overall customer and employee satisfaction.
But what about the potential consequences associated with this mobility revolution? Are small business owners doing enough preemptive planning to address potential risks that could arise with the use of BYOD devices?
Mobile Device Management - Questions Every SMB Should Ask
First, it is important that small business owners honestly assess whether their systems, networks, data, and overall infrastructure are ready for the use of an array of mobile devices.
What particular devices or applications are permissible for work use? Assuming security requirements are in place, not every device or application will meet those.
Will anyone in the company be tasked with the daily management of BYOB strategies? What should BYOD policies cover and what kind of management solutions will be needed? Would a BYOD management tool that collects device information, deploys and monitors usage, and offers insight into compliance be helpful?
Which costs will be the responsibility of the employee? This pertains to any fees associated with usage - from network plans, to the device itself, to software, accessories and maintenance costs.
What data will be accessible? Will data encryption be necessary for certain information traveling through the personal devices of employees? Which employees will have read, write, update/delete privileges?
What is the process when handling sensitive data stored on lost or stolen devices, or the personal devices of ex-employees? Does the company or organization have the right to wipe out the entire device or just corporate data and apps?
BYOD is here to stay as it affords smaller-sized companies the mobility of a corporate giant without a huge investment. But when it comes to ensuring that devices, applications and networks are safe from the variety of threats linked to greater mobility, small business owners may find it necessary to enlist the help of a managed service provider to adequately take on mobile management challenges and provide ongoing consultation.
4 Essential Pieces of Any Small Business BYOD Strategy
Believe it or not, once upon a time, kids at the bus stop didn’t have cell phones and the mobile device strategy of many businesses was typically "you’ll take what you’re given, refrain from using it for any personal use, and the data may be scrubbed clean whenever we please."
We’ve come a long way. Today, businesses really have no choice but to let employees use personal devices for work purposes. Blurred lines now make it difficult to differentiate between what is professional and what is personal. A company or organization may partially pay for an employee’s tablet computer or smartphone, but that same device is used to upload photos to Facebook or download torrents of this season of Game of Thrones.
Naturally, security and privacy issues are a concern since these devices sync to the company network. Larger corporations may be able to hire IT support or produce sophisticated BYOD guidelines for employees to adhere to, but smaller businesses have limited resources.
In fact, recent surveys suggest that the small business sector is doing very little to preemptively prepare for potential network security risks that could arise with the use of BYOD devices. This could prove to be disastrous.
The practical reality is that employees are going to use their mobile devices for personal use. However, too many firms have overlooked what this means for their data security.
Implementing a comprehensive BYOD policy right now, rather than when it’s too late, is important. We’ve compiled a list of four items that any business currently building a BYOD strategy must consider.
It must clearly be outlined what specific devices are permitted for work use.
The company/organization must have the ability to remotely delete company-sensitive data from mobile devices without the device owner’s permission. Remote deletion capabilities are much more refined these days; simplifying the removal of enterprise-related data from devices, while leaving other content like personal photos, contacts, apps and music downloads intact.
Employee privacy should be discussed within the BYOD policy since employees often use these devices to check personal email, browse or post to Facebook and Twitter feeds, instant message, and store personal documents, photos, music and movie downloads. Employees must understand that employers still have access to the content stored on these devices. Location tracking, which gives employers the ability to locate employees, is also something to discuss since many people don’t necessarily welcome that kind of surveillance.
It is understandable that BYOD and more mobile employees have some small business owners feeling anxious and nervous. But mobile management tools, periodic conversation, security checks, and research will do wonders when it comes to keeping small businesses safe.
Everyone in the office loves Eric. Sporting a different ironic t-shirt everyday, Eric is the one we call when technology spits in our face. Whether it's a slow system, a bug that needs to be squashed, a website issue, or a crash that results in unexpected downtime and data loss, Eric is right there. Not only does he get to the bottom of any issue but he also rights the ship like he's some sort of miracle-working captain who just happens to have a pretty wickedly funny Peter Griffinfrom Family Guy impersonation.
But business is growing and Eric is overworked. Eric has certain skills that you'd love to use to develop innovative applications and revenue-generating projects-- but he's too busy running around fixing things that break. Or he's performing the most mundane and routine tasks day-in-and-day-out just to keep things secure and running smoothly.
You get a sense that Eric's overburdened and he's saddled with too many responsibilities. His demeanor has changed from pleasant to moody. He's listening to angrier metal and punk music and you're noticing cracks in his work. You fear Eric is being pulled in too many directions and the reliability of your server, network, and applications, as well as the integrity of your data, are all at risk.
Someone who has watched a bit too much of Donald Trump on The Apprentice might think Eric should be fired. We're not going to fire Eric. But we're also not going to hire a full-time salaried Robin to his Batman or Cheech to his Chong. We're going to help Eric by exploiting IT automation and managed services to handle many of the monotonous tasks making Eric hate his job right now.
Let's help Eric.....
Focus Primarily on Cost-Cutting and Revenue Increasing Projects: First things first, Eric has to realize that he can't do everything himself. Where are his skills best used? Whether it's processes that help drive down costs or ones with the potential to raise revenue, evaluate the projects in the queue and rank them by what impacts the bottom line the most.
Once that's done, look at the day-to-day processes designed to keep things running securely and efficiently. What can be off-loaded from Eric? Determine which of those tasks can be automated either through the cloud or managed services.
Take to the Cloud: Some IT people fear the cloud spells the end to their job security. Meanwhile, the cloud can actually help them take on a more prominent contributing role in the company's success. The cloud should be seen as another tool that further eliminates the mundane yet necessary daily drudgery from their workday. Those who work WITH the cloud will find that they have more available time to take on more meaningful cost cutting or revenue generating projects.
Use a Managed Service Provider: Using outsourced managed services not only alleviates much of Eric's pressure and stress, but also boosts productivity and gives the company a much improved ROI (Return-on-Investment) on their technology investment.
While technology has gotten easier for the end user, it has become more complex on the backend with the advent of virtualization, cloud computing, and advanced infrastructure.
Using an MSP gives Eric access to a trusted advisor, a 24/7 help desk, remote monitoring and management tools, mobile device management tools, and much better disaster recovery and business continuity solutions. All without the overhead that comes with hiring more help for Eric. MSPs offer a consistency to not just your end-user but also your main IT guy who will certainly appreciate the help.