It seems in the not too distant future, you will probably not buy software to use for your business. You will rent the software and use it on the Internet. You will be working in the cloud. Cloud computing will bring a number of advantages to businesses. It will be possible to operate the business with less powerful, less expensive computers. There will be smaller up front expenses. The servers will be off-site, so you won't have to worry about maintaining and backing up servers. However, before you make the leap, there are some things to consider. Most small businesses use a DSL or cable broadband connection to the Internet. This service is relatively inexpensive, but doesn't come with many guarantees. If it goes down, then it is a best effort to get it restored. Also, consider what happens if the company that provides the cloud service goes down. It may be possible to reduce the risk of downtime by buying a more robust Internet connection with a service level agreement with guaranteed uptime. You can also reduce risk by using redundant Internet connections supplied by different vendors. That way if one goes down, it should be possible to switch immediately to the other. Another thing to consider is the speed of your internet connection, or your bandwidth. Once you and all of your employees are using the Internet to do your work, will your Internet connection be fast enough? The cloud provider should be able to help determine how much bandwidth that's needed.  However, you can see that the less expensive cloud solution will be offset somewhat by potentially more expensive Internet connections.

Doubtless you have seen the news about the Conficker worm. It has infected a staggering number of computers. One of the strange facts about this is that the infection can be prevented by simply downloading and installing a patch from Microsoft that was issued last October. The patch should have been installed months ago. Many businesses don't have their computers patched for a variety of reasons. They don't think that it's really important. They don't know if they can really trust the updates from Microsoft (or Adobe, or Java). They think it is happening automatically, but they don't actually check to make sure that it is. They think an employee is taking care of it who isn't. They think that it looks suspicious whenever the computer pops up alerts that an update needs to be installed. In other words, they cannot distinguish between real, legitimate update alerts and something generated by malware. All of these ideas indicate that there is a need to hire someone to manage that. It is too important, and too risky to leave to chance. Hiring someone to manage it is affordable. It's a lot less expensive than paying someone to deal with the infection.

As some businesses face the mounting pressure of falling revenues, business owners are faced with decisions about how to lower expenses and still provide the high level of service that customers expect. Unfortunately, it sometimes appears that the last recourse is layoffs. However, there is a possible alternative. Telecommuting may be the solution. Telecommuting makes it possible to reduce the amount of office space needed for the business. Reducing the amount of office space may reduce costs enough to keep valuable employees. Reducing or eliminating office space not only cuts the cost to provide that space, but it also reduces the costs of power and cooling. Most employees have access to broadband Internet so telecommuting is a good solution. An added bonus is the fact that telecommuting generally increases employee loyalty.

In the current economic environment, many business owners are thinking about how they can control costs. With income flat or falling, it's very important to find ways to manage the cost of running the business. Are there areas where it's possible to cut costs? The business may have some hidden costs that can be controlled.

 Many businesses have hidden costs in their computer networks. Hidden costs take the form of reduced productivity due to slow computer or network performance or completely lost productivity due to computer, server, or network failures. A computer network is a tool to improve your company's efficiency and competitiveness. Like any tool it requires maintenance to keep it running at peak efficiency. Unfortunately, many business owners overlook the fact that there are costs associated with computers and computer networks beyond the original purchase price. One study showed that the total cost of ownership of a system is 2 1/2 to 3 times the direct cost. They see the costs whenever they have to pay someone to come in and repair a computer that has a problem. That's a visible cost. What they may not see is all of the lost productivity from employees enduring a problem or trying to fix it themselves. The employee or business owner may be very computer savvy, but since they aren't trained to do this the fix is slow or ineffective. The better decision is to recognize that there are ongoing costs to use this tool and hire someone competent to manage it. A competent computer consultant will help you avoid the most disruptive and expensive problems. That lets the owner not only be aware of the expenses associated with the network, but also control the expenses and mazimize the usefulness of their investment. 

 

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