How The Cloud Saves SMB's money

OK. You pay someone to store all of your data in the cloud, as opposed to keeping it on your own server and backing it up. And you pay on an ongoing basis. How is that possibly going to be cheaper than just making a one-time investment and keeping it your self? 

Let’s count the ways:

(1)  You lose the hardware expense –a capital expenditure cost.
(2)  If that hardware fails, you are out in the cold. 
(3)  Someone has to maintain that hardware. In house IT labor is expensive. 
(4)  If you need more capacity, you have to ramp up at a tiered level, which means you may need to buy capacity you don’t presently need
(5)  All of that hardware runs on software, which costs money
(6)  All of that software needs to be installed, updated, etc. (see # 3) 
(7)  All of that hardware and software has to run 24/7. Are you large enough to pay for in house monitoring and support 24/7? (See again #3) 
(8)  All of that data has to be protected with security software, which means skilled IT support and expensive virus protection

Ok. The list doesn’t end here, but this blog will. Talk to Net DirXions, Inc about how the cloud can be a really budget saver for small and medium sized firms.

Using the Cloud to Challenge Big Business

Has anyone suggested you begin moving your business to the cloud? Cloud data storage or cloud computing? What is this, anyhow? And isn’t it something for huge companies?

In a previous post we explained what cloud computing is. Simply put, it is the offsite storage of your data, and perhaps even the software packages you use. The primary benefit is pretty straightforward.  It gives you access to enterprise-class technology, pay-as-you-go service.

But is that all it is? There is a much stronger case for a small business to incorporate the cloud in their business model. The cloud allows you to become competitive with the big players in your industry.

The traditional issue holding back small business: they do not have the capital to create the infrastructure to compete with large firms. They are too small to enjoy economies of scale. One obvious area is software and hardware. Historically, the technology used by big business has been out of reach of the little guys. Most SMBs have neither the hardware budget nor internal resources to own a network infrastructure. A small business does not have capital to buy the equipment. Take a simple example: You run a storefront, but think you might be able to sell a bit more if you went online, but you don’t know how much more. You can’t justify the capital to buy the hardware, software, and the labor to design, build, and support it all. The cost of entry to the online world is just too much.

The cloud ends all of that. In simple terms, the cloud lets you rent just as little infrastructure as you need, and then lets you grow as incrementally as you like, paying only for what you use.Essentially, the cloud has become the great equalizer. The high cost of entry created by IT can be eliminated by the cloud.

The Cloud: Are There Security Issues?

For many, the idea of offloading their data to another physical/virtual location can seem like a security risk. It seems counter intuitive that moving data away from “ home” is safer. But is that really true? Any server stored at your location is probably more physically vulnerable than one protected in a large server farm. If you had a fire, flood, or other physical damage that included damage to your server, what would be the result? Also, are your backups stored on–site? If a major event damaged your entire physical location, those backups would be also lost.

There is a second reason the cloud may be safer: security. All of your data, no matter where it is located, may be vulnerable to cyber attacks and data breaches. However, cloud storage providers probably offer some of the most sophisticated security projection available. It is unlikely that a small or even mid-sized firm has the internal resources and research capacity to maintain an equivalent level of security.

So give some thought to the cloud as tool to preserve your data and the integrity of your business (as an added bonus, it likely will be a money saver, too).

Business Natural Disaster Survival Guide: Building Fire or Flood

With the devastating fires in California this month,  every business has to prepare for the worst. Those that don’t may never fully recover from a disaster. But not all disasters are created equal. And not all businesses are at risk for every kind of disaster. That’s why we’ve put together this quick Disaster Survival reference guide to help you ensure that your business can keep operating even if a natural disaster strikes. 

BUILDING FIRE OR FLOODING

Description: Fires or floods within an office or building can range from small incidents of short duration to the complete destruction of the facility. 

Potential impact: Even a relatively small fire/flooding incident can have a very disruptive impact on a business. For example, a small fire in an office on an upper floor can result in the complete flooding of computers and telephone systems in the offices below as the building’s sprinkler systems kick in and firefighters seek to extinguish the blaze. Similarly, even a relatively limited amount of water leaking from a broken pipe or valve can put some or all of a business’s technology infrastructure out of commission. A large fire, of course, can force a business to have to relocate all of its operations temporarily or permanently. 

Risk factors: There are approximately 100,000 commercial building fires in the U.S. per year, according to the National Fire Protection Association. Those at highest risk include manufacturing facilities, as well as offices located above or in proximity to restaurants because cooking is a primary cause of non-residential structure fires, just as it is in homes. 

Warning times: Water damage from failed plumbing, sprinkler systems, etc. can short-circuit electronic equipment with zero warning. However, building alarm systems typically give employees a few minutes to shut down critical systems and evacuate the premises. 

A large fire, of course, can force a business to have to relocate all of its operations temporarily or permanently.  

Technology Continuity: 

As noted above, the severity and length of business disruptions caused by fires and flooding can vary considerably. 

To be prepared for extended or permanent facility damage, businesses should: 

• Maintain continuous off-site backup of data, applications, and server images. 

• Have arrangements in place for re-routing incoming calls to an alternative site and/or to employees’ mobile phones. 

• Prepare an emergency posting for the company website that can be activated immediately and progressively as the consequences of the event unfold. 

Prepare an emergency posting for the company website that can be activated immediately and progressively as the consequences of the event unfold. 

People Continuity: 

Because building fires and flooding only affect individual structures (or, at worst, just a few adjoining ones as well), businesses impacted have a lot of options for keeping people productive. Business Continuity plans should include: 

• Arrangements in advance with a nearby shared/furnished office space provider, hotel, college, or other facility for an immediate/temporary operations command center. 

• Next-day workspace provisioning in another company facility, emergency failover “cold site,” or at home personal desktops/laptops with appropriate call forwarding. 

• Internal communications for keeping employees updated on resource availability, recovery status, etc. • Any necessary third-party contracting for shipping/receiving, mail processing, duplicating, etc. 

Process Continuity: 

Again, because building fires and flooding are highly localized, they typically only disrupt processes that touch a single company location. Business continuity plans therefore need to provide for alternative locations and means to perform actions such as: 

• Answering phones

 • Processing orders 

• Issuing invoices 

• Signing checks 

• Filing reports required by regulatory mandates 

Businesses may also seek policy provisions that address work done from home or other locations while the facility is under repair (and/or a new location is secured) as well as business losses that may occur despite best–effort BC planning and execution.

Insurance Considerations: 

A properly insured business should have a policy that covers the expenses above, in addition to the physical damage directly caused by the fire or flood. Businesses may also seek policy provisions that address work done from home or other locations while the facility is under repair (and/or a new location is secured) as well as business losses that may occur despite best-effort BC planning and execution