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Maloney + Novotny Latest News
Home   »   News & Resources   »   Latest News   »   10.23.09
 
 

Communications Technology: What to Spend in Tough Times

A slow economy can make it difficult to determine how to best spend on technology. Some of the smart money these days is headed toward devices, applications and infrastructures that help make business more mobile and easier to manage from remote locations. These include smartphones, wireless technology and “cloud computing” services. Take a look at these emerging technologies and what they could mean for your organization.

TAKING YOUR BUSINESS TO THE SKY

As the tough economy lingers, it can be difficult to decide where to spend your company’s technology budget. Consider investing some of the dollars in communications technology that makes your organization more mobile and flexible.

In recent years, businesses and consumers have widely adopted broadband, Web-enabled cell phones and PDAs, and e-commerce. These technologies are increasingly portable and allow your company and its customers to communicate with each other.

Mobility and portability are becoming essential to business success. Some analysts have even suggested that the handheld phone will soon replace PDAs, laptops and office hard drives in communication and computing capabilities.

The iPhone is an example of this type of ultra-portable and versatile business technology. In terms of mobile applications it is the industry leader, with its store listing more than 75,000 active apps. But the iPhone is not the only smartphone on the market and its more popular competitors, including Blackberry, are rushing to launch applications.

Even without the fancy apps, however, the most basic cell phones can access the Web and send e-mails. The newer models have high resolution and touch screens as well as keyboards and ample storage capacities.

Three developments suggest mobile technology could be a winning investment:
  1. Wi-Fi Access – The growing availability of Wi-Fi networks has boosted the use of smartphones. This makes it easy for users to remotely access back-office applications including sales force automation and CRM systems. Quick, portable access to these systems offers the potential for improved employee management, increased productivity and an enhanced ability to give customers timely information.

  2. Voice over Internet Protocol (VoIP) – More enterprises are adopting the Internet as an inexpensive and portable platform for making business calls. Calls can be made with phones specifically designed for VoIP or with ordinary phones that connect to an adapter that then links to the Internet. This means your employees can make cheap calls wherever they are able to get a hardwired or Wi-Fi connection to the Internet. Federal Communications Commission explanation of the phones and answers to frequently asked questions »

  3. Cloud Computing – Cloud computing is a broad-based term that encompasses a variety of services or applications that are accessed over the Internet. They may be free, or paid for with a subscription fee, but your company doesn’t have to purchase any software. You probably use some cloud computing services if you have an e-mail service, such as Gmail or Yahoo, or upload photos on sites like Facebook. Your messages or photos are housed at a centralized location and can be accessed with any Internet-enabled device.
With other applications, businesses use cloud services for tasks such as storage, billing, customer relationship management, group document editing and financial analysis.

For instance, at some companies, CEOs and other managers simply tap an icon on a smartphone or other device to access timely, relevant data about how the business is performing. Staff members access and interpret information they need to maintain quality and customer support reps check how the company’s equipment is performing.

Cloud computing services fall into three general categories:
  1. Software-as-a-Service. Essentially, your company rents hardware and software and the supplier maintains and upgrades it. SaaS services can range from Web-based e-mail to database processing, inventory control, customer relations management, and financial applications.

  2. Platform-as-a-Service. Tools for developing software and applications are hosted on the provider’s platform. Some vendors do not allow customers to move the software they create off the platform.

  3. Infrastructure-as-a-Service. The vendor supplies the equipment used to support a company’s operations, including storage, hardware, servers and networking components.
Cloud computing can offer your enterprise several benefits. For example:
  • It reduces and can even eliminate upfront outlays on hardware and software. This not only produces savings, it improves cash flow because your business doesn’t have to wait for a return on its investment. Cloud computing also eliminates the need to finance maintenance, support, upgrades, disaster recovery, back-ups and archiving.

    With clouds, your company generally pays as it goes. While there may be an initial investment, operating expenses rise only if your organization uses more of the cloud network’s capacity. So the costs of cloud computing are predictable. Cloud computing is flexible. Your organization can expand or reduce server and bandwidth use on demand. For example, if you have an upcoming online marketing promotion or your business is cyclical, you simply buy more capacity as needed.

  • Cloud networks can be fast, which saves time and money. For example, your company can acquire the use of servers or software within minutes. Your business can also build a custom application in days or months rather than years. Cloud computing providers focus on maximizing performance and efficiency so the networks perform at higher levels of utilization than most enterprises could achieve alone.

  • It’s green. Cloud computing consumes less energy by combining the operations of many companies. The networks generally use lean coding in their programming, which reduces the energy demands on processors.
Although companies may be reluctant to spend money during tough economic times, this is an excellent time for tech deals. The dollars spent on portable hardware and cloud computing services may help your company stay in touch with customers and staff members and keep you ahead of the competition.



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BE CAUTIOUS ABOUT SECURITY AND COMPLIANCE

One of the downsides of cloud computing is that it generally involves a shared environment, with many companies using the same networks simultaneously. This results in security and privacy concerns including: What happens if a cloud provider suddenly goes out of business? What will happen to your data?

Ask potential providers about their firewalls, intrusion detection systems and disaster recovery plans. Learn as much as possible about how the company monitors and controls its employee access to your stored information. Be certain that the company can quickly restore all your organization’s data after a disaster.

How will the provider ensure your company can meet its legal, regulatory and audit obligations? Among the areas of particular concern:
  • Data location and segregation – In a cloud, you never really know where information is being stored. Find out where the provider’s servers are located. Will a potential vendor commit to specific jurisdictions and obtain written guarantees that it will comply with all local laws and regulations? How will the provider destroy records that your business no longer needs?

  • Audits – Ensure that the provider maintains compliance logs. You need them for internal and external audits.

  • Credit and debit cards – If your company processes payments, it needs to be PCI DSS compliant. Make sure the provider’s system and policies meet the standards.

  • Forensic investigations – Procedures related to criminal investigations require that storage devices can be physically examined. What mechanisms are in place to help in forensic inquiries? How will a supplier protect your company’s information from being seized by law enforcement officials executing a search warrant on another company? An inadvertent seizure could shut down your business temporarily.
BUSINESS WISDOM FOR TODAY’S ECONOMY

Technology audits often find that companies are not following best practices in configuring their system security. Here are a few questions to answer to help safeguard your data:
  • Are user names unique and are “strong” passwords being used? Strong passwords should have a specified number of characters, not contain the user’s name, and combine upper and lower case letters, as well as numbers and symbols. Using them makes it more difficult for hackers to get into your system.

  • Are passwords changed periodically?

  • Do users have system access that is appropriate to their jobs?

  • Does system access enforce segregation of duties?