Do SMBs Want Cloud Computing?
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In my weekly column this week, "Managing the Mass of Clouds," I speculated on a new role for solution providers in the cloud computing era; that of manager and advisor on cloud-based applications and services. The premise is simple: small and midsized businesses will come to rely on SAAS and cloud-based services, but won't have the bandwidth or expertise to manage those relationships. Solution providers could step into the breach and provide SMBs with expert management and advisory services for cloud applications. The feedback on this column, so far, has been interesting. While solution providers are in agreement that cloud services are becoming increasingly important, there's a division over whether SMBs will adopt cloud services. Alex Zaltsman, CEO of TourSport and former partner of Exgient Technologies, writes: "In my mind there is no reason for a very small business (under 50 employees) to buy and maintain servers. We're not at the point where on-site servers can be eliminated entirely yet, but I do see the trend - starting with Microsoft Exchange and Sharepoint hosting - to reduce servers at these small businesses. VARs who service this market could continue to be "MSPs" - but providing more of a support role and advisory role rather than monitoring IT systems. Conversely, Chris Smith, president of The Tech Dcotors in Illionis, disagreed with the need for cloud services by SMBs. In feedback he provided, Smith states: "I think the industry is in for a shock when the SMB space doesn't go for this! Think about I'm a small business - struggling - not thinking about "Cloud Services" just thinking about making ends meet. They will go to their trusted advisor and find out what is the best way to go." So which is it? Is cloud computing the next wave to take over the SMB market or will SMBs continue to rely (and invest in) on-premise solutions? |
Comments (1)
Personally, I wonder if SMB owners can really trust their IT department? If your company has maybe a maximum of five IT staff, a server in a cupboard, and a small budget, I would argue that there is far more risk in NOT outsourcing. You need to trust your IT staff, and that they really know what they are talking about and have the competence to run your firewall properly and ensure proper procedures are in place. small companies can't attract the best IT talent to manage their systems, and inevitably problems mount up as compromises are made because of cost and a paucity of expertise. A small business owner wont necessarily know what to look for to hire competent IT staff, and has to rely on a certain amount of trust.
For example, would you trust your banking information to your bank's online service- an outsourced service- or on your own IT systems? Or all of your life's photos? on your own computer or on Flickr? I know what I would rather.
I would be interested how many SMBs actually have effective IT security in place. Many may think they do, but I suspect that when it comes down to it they don't, and it unfortunately takes a disaster to find this out. I think that Chris Smith has got it the wrong way round, SMBs are crying out for a reliable way of taking this responsibility off their hands so they ont have to think about it. Cloud computing adds the benefits of flexibility, both in terms of access and resource scaling.
Our company has used cloud computing for a number of years [in our case as a relocations service provider and a supply chain management company, Move One], and after the feedback we got from other companies about the effectiveness of our system verses the ineffectiveness of their own in house systems, we now package our system and sell it as a service to other relocation providers and HR managers.
Of course, nothing is ever 100 percent secure, but you can mitigate your risk by choosing the right provider, rather than dismissing the notion outright.
Posted by Matthew Shore | August 10, 2009 11:13 AM