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.

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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.

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3 Things to Consider Before Jumping Into BYOD

You’ve read it time and time again. “Bring Your Own Device” isn’t a trend, it’s the future. Workplaces where companies let workers use their own devices for work purposes are the new normal. BYOD attracts new hires and lifts employee morale and productivity. But this doesn’t mean a small business owner should recklessly jump right into BYOD just because everyone else is doing it. Data and network security concerns have to be thought out, defined, and addressed in a comprehensive BYOD policy. Here are three things to consider.

Cost of Support

Most businesses salivate at the thought of the money saved by having employees participate in a BYOD program. With employees using their own devices for work, there is no need to shell out thousands of dollars for desktop PCs, smartphones, tablets, and laptops. While that’s undoubtedly a huge incentive, extra support costs must also be factored in. Chances are your employees aren’t necessarily tech savvy and will need help deploying applications and performing basic yet very necessary maintenance techniques. Unless you have a dedicated IT support team, which most SMBs do not have, you will need to turn to a Managed Service Provider (MSP) in your region for support. A MSP can provide specialized expertise and leverage Mobile Device Management (MDM) tools to keep your network infrastructure and business applications monitored, secured and fully optimized.

Limited Number of Support Devices

Obviously you can’t accommodate EVERY employee-owned device. Limiting the types of devices accepted in your BYOD program will mitigate any need to pay for software or equipment upgrades for outdated devices and keep your infrastructure safer as a whole. It’s important to not be too exclusive, select a broad range of devices and their more recent releases to accommodate the varied preferences/tastes of your employees.

Legal Risks

Adopting BYOD at your workplaces will expose your company to more legal risks. Sensitive business or private client/customer data can potentially be exposed if devices are lost or stolen. The personal online habits of your employees can also increase your network’s vulnerability to viruses, phishing, or hacking schemes designed to steal such data. These increased legal risks are another reason why SMBs must take precautions such as working with a MSP that offers a solid MDM solution to ensure all employee devices are configured, deployed, managed and monitored in a manner that prioritizes data integrity and security.

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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.
• Written policies should be put into effect that correspond with terms of use policies and any guidelines pertaining to remote/telecommuting workers or the sharing of sensitive data. There should be clearly defined consequences for violating any or all policies.
• 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.

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How to Trim the Fat From Data Center Costs

When smaller businesses look to cut costs, they commonly take shortcuts that are risky to their bottom line. They may go out of their way to avoid upgrading dated hardware, buying software licenses, or increasing bandwidth. In some instances, they layoff in-house IT support, or avoid hiring new help, even as the business grows. This often leads to a very cranky and disgruntled “IT guy” with a bad attitude as he or she runs around the office putting out one fire after another – feeling overburdened and underpaid.

Operating even the most basic data center today means recurring operating expenses that aren’t affordable for most small-to-midsize businesses.

Unfortunately, SMBs just have to accept that keeping their data center alive and kicking means significant overhead and expenses. That’s just the way it is.

Or is it? There are actually several ways to reduce data center infrastructure costs without sacrificing the efficiency of your network, server, and applications, or the sanity of your IT guy.

Rent, Don’t Own: A data center needs experienced people and a virtual, always-on, 24/7 staff of administrators, networking experts, database specialists, systems managers, and dedicated IT personnel monitoring the network. From an economic perspective, it’s simply more logical to “rent” these workers rather than hire permanent employees.

Keep Things Remote & Energy Efficient: According to a study published by the U.S. Department of Commerce, the fastest-growing sources of U.S. energy consumption are data centers. This is due to the increased power supply required to run and cool a data center. Hardware sprawl is also a problem contributor, as most businesses have space limitations and lack the available room for any additional hardware.

Embrace Outsourcing

Both of the aforementioned cost control measures can be accomplished by outsourcing data center operating expenses. Outsourcing isn’t a dirty word. Managing IT on your own is difficult and far from cost effective. Outsourcing the day-to-day IT management responsibilities through a Managed Services Provider is a strategic way to improve the efficiency of operations and dramatically cut costs.

Is it any surprise that more and more SMBs today are tapping into the full spectrum of outsourced managed services to empower their business processes and reduce overhead? Are you?

Contact us at Adna Technologies