Home-Based Businesses to Adopt Cloud Services

Surviving the economic pressures of today has been difficult for most businesses, especially the smallest. But despite the economic downturn, Home-Based Business (HBB) appears to be a high growth sector for employment in the U.S. market. Moreover, American HBBs are showing strong signs of sustained growth plans into the foreseeable future.

According to the latest market study by AMI-Partners, there was an 11 percent increase in those who started their home-based business due to corporate downsizing last year.

When some employees are downsized from their employment at larger companies, they are motivated to create their own future employment path -- by starting their own company, based out of their home office.

"What's interesting is that 80 percent of those who became HBBs because of downsizing from a larger company do not plan to return to the corporate workforce," says Jessica Efta, manager of market development at AMI-Partners.

Committed to Ongoing Self-Employment 

Apparently, many survey respondents say they plan to stay HBBs for the long term. Utilizing today's numerous productivity-enhancing business technologies, a small business owner does not need a retail storefront or traditional office building to conduct a successful commercial operation.

Last year, sole proprietorship businesses were two thirds of the home-based business market -- this year it is only one third of the total market, indicating that some home-based businesses are growing and hiring new employees.

This trend will likely continue. Over the last year, there was a 10 percent jump in respondents who say they have plans to grow their business and hire more employees.

Business Technology and Cloud Services Adoption

According to the AMI assessment, reported revenues became positive for HBBs in 2010 and projections show positive growth expectations for 2011. As average employee size increased, so did the average PC use per company.

Cloud computing is another area of growing interest among HBBs. One quarter of U.S. home-based business owners are interested in procuring hosted applications -- nearly double the amount of their nearest peer group (small businesses operating out of a commercial setting, with fewer than 5 employees).

Considering the 16 million home-based businesses already in the U.S. market, this translates into a significant new market development opportunity for on-demand managed cloud service providers.

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Borderless IT Infrastructure for Competitive Advantage

Cisco commissioned a study of present-day challenges that companies face as they strive to address employee and business needs amid increasing mobility capabilities, security risks, and technologies that can deliver applications and information more ubiquitously -- from virtualized data centers and cloud computing services to traditional wired and wireless networks.

The results of this international workplace study reveals that many people now believe that they no longer need to be "in the office" anymore in order to be truly productive.

This and other findings provide new insight into the expectations, demands, and behavior of today's global workforce -- that's influencing the way information is accessed and how business communications are changing.

"The Cisco Connected World Report gives further insight into the future of the workplace and it is clear from the research findings that the desire among employees to be more mobile and flexible in their work lifestyles is extremely strong throughout the world -- as strong as salary, said Marie Hattar, Vice President, Borderless Networks, Cisco.

She added, "It is also evident that organizations need to embrace a borderless IT infrastructure to capture competitive advantage and increase employee satisfaction. The employee desire to be productive anytime, anywhere, using any device provides an opportunity to embrace the agility and flexibility provided through a Borderless Network Architecture."

Key Findings from the Cisco Connected World Report include:

• The study, which involved surveys of 2,600 workers and IT professionals in 13 countries, revealed that three of every five employees (60 percent) believed it was unnecessary to be in the office to be productive. This was especially the case in Asia and Latin America. More than nine of 10 employees in India (93 percent) said they did not need to be in the office to be productive. This sentiment was extremely prevalent in China (81 percent) and Brazil (76 percent) as well.
• Two of every three employees surveyed (66 percent) expect IT to allow them to use any device -- personal or company-issued -- to access corporate networks, applications, and information anywhere at any time, and they expect the types of devices to continue diversifying. In the future, employees expect their choice of network-connected endpoints to broaden to non-traditional work devices like televisions and navigation screens in cars.
• For employees who can access corporate networks, applications, and information outside of the office, about half of the respondents (45 percent) admitted working between two to three extra hours a day, and a quarter were putting in four hours or more. However, extra hours do not translate to always-on, on-demand employees. They simply want the flexibility to manage their work-life balance throughout their waking hours.
• Employees also feel strongly about having the flexibility to work anywhere that it would dictate their company loyalty (13 percent), choice of jobs (12 percent), and morale (9 percent). For example, two of three employees worldwide (66 percent) said they would take a job with less pay and more flexibility in device usage, access to social media, and mobility than a higher-paying job without such flexibility. This percentage was higher in some countries, such as Spain (78 percent), despite economic woes the past couple years.
• Almost half of the IT respondents (45 percent) said they are not prepared policy- and technology-wise to support a more borderless, mobile workforce. Not surprisingly, security is the top concern.
• Although many of the IT respondents felt security (57 percent), budget (34 percent), and staff expertise (17 percent) were the biggest barriers to enabling a more distributed workforce, employees often felt IT and corporate policies were the obstacles. This perception among employees was extremely prevalent in India, where more than half (58 percent) felt IT was the obstacle to a more flexible work style.

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Managed and Cloud Services Market Study

Cisco and Verizon Business will host a live webcast to unveil new findings from a commissioned study conducted by Forrester Consulting on behalf of Cisco and discuss new opportunities in managed and cloud services for service providers and enterprises.

Key findings from the market study include:

• Global managed services growth will outpace technology growth in 2010 by more than double.
• The total global managed services opportunity will be $217 billion by 2014.

Join Ellen Daley, Forrester Research vice president; Will Scott, Cisco global director of managed solutions; and Joseph Crawford, Verizon Business executive director of IT solutions, for an online discussion on these major market trends.

Managed and Cloud Services: Opportunities in a Transitioning Market

Date: Thursday, June 10, 2010

Time: 8 to 9 a.m. (PDT) / 11 a.m. to noon (EDT)

Register, in advance, at:
Cisco Verizon Business Webcast

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Increased Productivity Due to Telecommuting

In the global networked economy, work is performed everywhere, at any time and any place. That said, what are the operational benefits? Cisco set out to evaluate the social, economic and environmental impacts associated with allowing and actively enabling employees to telecommute.

Cisco announced the findings of its Teleworker Survey, an in-depth study of almost 2,000 company employees. The study, conducted to evaluate the social, economic and environmental impacts associated with telecommuting at Cisco, revealed that a majority of respondents experienced a significant increase in work-life flexibility, productivity and overall satisfaction as a result of their ability to work remotely.

Create a Sound Telecommuting Strategy
As the modern workforce continues to evolve and globalize, more companies are evaluating a telecommuting strategy to save costs and lower carbon emissions as well as to retain top talent.

For these companies, Cisco's survey highlights the gains that a sound telecommuting strategy provides for employees and employers alike.

Cisco is achieving new levels of efficiency and effectiveness by enabling people to work together no matter where they are located. In fact, according to Cisco's Internet Business Services Group, the company's global strategic consulting arm, the company has generated an estimated annual savings of $277 million in productivity by allowing employees to telecommute and telework.

Examples of Connectivity Solution Adoption
In addition, with the steady adoption of enterprise-class remote connectivity solutions like Cisco Virtual Office, the recently announced Cisco OfficeExtend, and virtual collaboration tools like Cisco WebEx, Cisco anticipates that employees and employers will continue to see a rise in the benefits associated with telecommuting.

Highlights from the study include the following:

• Approximately 69 percent of the employees surveyed cited higher productivity when working remote, and 75 percent of those surveyed said the timeliness of their work improved.
• By telecommuting, 83 percent of employees said their ability to communicate and collaborate with co-workers was the same as, if not better than, it was when working on-site.
• 67 percent of survey respondents said their overall work quality improved when telecommuting.
• An improved quality of life through telecommuting was cited by 80 percent of survey respondents.
• Telecommuting can also lead to a higher employee retention rate, as more than 91 percent of respondents say telecommuting is somewhat or very important to their overall satisfaction.
  

How can your business benefit from these key insights? Bring your people and information together to reduce decision times and accelerate innovation. Develop a strategy to enable open, secure, adaptable enterprise collaboration that improves your company's creativity and velocity.

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Verizon Cloud-Based Computing as a Service

Verizon Business introduced an on-demand, cloud-based Computing as a Service (CaaS) solution -- designed to meet the stringent security and performance requirements of their enterprise customers.

This new offering helps businesses take advantage of cloud (IP-based) computing to more efficiently and securely manage IT computing resources -- server, network and storage -- to meet day-to-day business demands.

This CaaS solution, which leverages Verizon's global IP infrastructure and data centers, enables companies to use a Web-based portal to employ computing resources in the quantities and duration dictated by their own business needs.

As a result, businesses pay for the resources used and avoid having to build out for peak capacity requirements by buying new equipment and adding IT or networking staff.

Designed for mid-to-large-sized businesses, CaaS is ideal for new development projects, major events and migrations so that organization can easily and quickly shift IT resources as required.

Just-in-Time Computing Resources
It is also well suited for businesses with seasonal demands such as retailers, companies holding annual benefit enrollments or sales promotions that drive incremental traffic to Web sites. The service is immediately available in the U.S. and Europe, and then will be introduced to the Asia-Pacific region in August.

Verizon's Mike Marcellin explains in a video commentary some of the key features and benefits.

Melanie Posey, research director, hosting & telecom services at IDC said "Verizon has incorporated a number of key elements that make this solution a stand-out in the marketplace. The CaaS combination of flexibility, security, performance and resiliency is well positioned to serve certain enterprise requirements in a nimble, next-generation fashion."

Clearly, we can anticipate that the forward-looking managed and hosted service providers will continue to launch innovative new managed cloud service offerings that meet the selective IT out-tasking needs of their customers.

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Best MSP Procurement Checklist - part 1

The process of researching, reviewing and selecting a managed or hosted service provider can be a daunting task for those business and technology decision makers that have never performed this task before. Like any other process, there are some best practices.

The following candid questions will help you determine if a provider of managed services can meet and exceed your expectations. Also included are examples of specific details that you should seek.

How do you select a best-fit service provider? Ask all the right questions. Where do you start the selection process? Focus primarily on how the service offered will help to solve problems or create new opportunities -- not merely what it does (its features and functions).

1. Are you prepared to offer only the features and functions that my business needs, instead of the ones that you include in your one-size-fits-all service bundle?

• Ask for a list of all the "standard" items included in the base bundle.
• Request details of all optional items that can be added and/or subtracted.
  

According to recent market research, decision makers at companies of all sizes now prefer that service offerings only include essential features as mandatory elements in a bundle. All other features may then be selected from a menu of options.

2. Can you describe the services that you offer -- and their business benefits -- in terms that I, and the other members of my executive team, will understand?

• The salesperson or sales support person should address your specific needs.
• Ask the service provider to explain any terms that you don't understand.
  

If you can't determine how the managed services will directly benefit your business, then you'll be unable to make an informed decision. Qualified service providers should be able to describe their offerings within the context of your specific business requirements.

3. Will you provide case study materials to demonstrate how you delivered a managed service solution that solved a business challenge similar to mine?

• Documented customer success stories provide useful insight.
• Reference checks should include details on the business impact.
  

While a service provider with limited experience may be able to meet your application needs, those that can clearly articulate the methodology they use to meet their existing customer needs will likely provide a better fit. Moreover, a basic knowledge of how your industry operates will help to avoid misunderstandings.

Note: these are the first three questions from a list of ten. The remaining Q&A will be featured in part 2 and part 3. We'll also provide a link to a complete list that you can download, and a useful ROI calculator to help you build a business case.

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Exploring Managed Services - Key Performance Indicators

All business has become global. Companies of any size can now market products and services worldwide over the Internet. At the same time, competition has intensified because customers can investigate global competitors with ease.

To compete effectively in the global networked economy, companies need new capabilities:

• Global procurement and sales 24 hours a day.
• Integrated internal and external business processes.
• Up-to-the-minute access to sales, order processing, production, and other business critical information required for informed decision making.
• Flexible processes that can adapt dynamically to changes in the business climate.
  

The application of Business Technology is now a primary enabler of strategic advantage. However, chief executives have become impatient, as their companies have failed to keep pace with these advances. There are alternatives, for those who choose to act. The managed services model can be applied to accelerate this much needed change.

Review the following common business needs to decide if managed services can provide benefits to your business. If you answer yes to these key performance indicators, then perhaps there are areas where out-tasking could help drive change.

Are you a candidate for managed services? Consider these scenarios.

Our business is facing challenges:

• Staffing IT professionals.
• Staying up-to-date with evolving technologies and IT skill sets.
• Managing and maintaining current infrastructure, hardware, and software.
• Securing data, transactions, and communications.
• Responding quickly to time-to-market demands.
• Remaining flexible enough to maintain competitive position.
• Reducing network overhead costs.
• Operating in real time in order to meet 24-hour demand.
• Delivering services to branch offices and remote workers.
  

Our business is in transition:

• We need to upgrade, refurbish, move, or relocate existing infrastructure.
• The scope or scale of current business operations is changing.
• A merger, partnership, or acquisition is altering operations.
• We need to increase the range and level of service.
• Our growth targets depend on implementing new technologies.
• We are expanding into new markets.
  

Our business must increase profitability:

• We prefer to dedicate resources to our core competencies and mission critical processes rather than network support activities.
• We view managed services as a good strategy for gaining efficiencies and reducing costs.
• We need to implement a global network service but lack internal global resources.
• We are concerned with our ability to keep up with the latest security threats and to meet privacy or security regulations.
• We are experiencing dynamic business growth while undergoing downsizing and hiring freezes.
  

Initiate a dialog with a managed service provider, and you can begin to explore the possibilities of how to effectively adopt Business Technology as a Service.

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Managed Service in Search of a Market

There's a new term in the managed services space -- Desktop-as-a-Service (DaaS), and it's an obvious extension of the SaaS model. Desktone is a company that provides DaaS capabilities to service providers. Its customers, according to CEO Harry Ruda, currently include Verizon and Softbank Telecom.

Ruda characterizes DaaS as a service whereby users obtain their computing services through a remote connection over a network. The physical compute power, if you will, is delivered through a service provider and paid for on some usage basis.

In other words, users can access operating system and applications through a completely hosted system, and the service provider would be responsible at the back-end for storing data, upgrading applications, updating virus protection, among other activities.

Computing Power of a Utility
It relies on the whole concept of utility computing, in which compute power is delivered the same way electricity is -- when you want it in a metered fashion. DaaS proponents even promise that their service, like electricity, is instant-on, because there's no booting of an operating system.

I'm skeptical about a technology that even its proponents admit doesn't work well over wireless connections, when you consider that laptops now outsell desktops because of their ability to work even when users are disconnected.

However, proponents insist that by handing management of PC resources over to a service provider, companies of almost any size can cut maintenance and technical support costs, as well as increase security because the service provider can focus more on patches and virus protection.

Another pioneer in this new category, MokaFive offers a DaaS subscription service for $100 per user per year that uses a virtual machine, which they describe as "centrally managed but locally executed."

That means end-users can choose from among any number of devices -- laptops, Macintoshes, smartphones, tablets -- and have corporate data protected, but can still use their chosen device for other applications or personal information.

Evolution is Easier than a Revolution
The arguments and variations of DaaS go on and on. One of the biggest stumbling blocks to the DaaS model may be the fact that it requires extensive re-thinking of one's infrastructure -- either by replacing desktop computers with disk-less computers or significantly upgrading the network bandwidth, or both.

In contrast to DaaS, most of the current "fill-in-the-blank" as a Service models have been tried and proven, because they're a logical evolution from existing operational models. My skepticism remains intact.

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