Small Business Looking for Easy Road to Cloud
ComputingPosted March 19th, 2012
Cloud technology is supposed to simplify the IT environment, so it should not be a surprise that SMBs also seek simplicity in how their cloud solutions are delivered. According to results of a new Dell-sponsored survey of 400 companies with 50 to999 employees, 69 percent of SMBs prefer to purchase cloud solutions from a single, trusted provider.
Fifty percent of SMBs say there are significant challenges in keeping track of multiple service level agreements (SLAs), while 48 percent say explaining their business to each vendor is tedious and time-consuming.
Integration Flexibility, Efficiency Important
SMBs desire a high degree of integration flexibility with their cloud implementations. Currently 74 percent of SMBs are using in-house staff to integrate cloud technology with existing applications and 61 percent are writing software code to integrate cloud solutions. Sixty-three percent want the ability to modify cloud integrations based on business process changes.
Overall, SMBs state that the key benefits of adopting cloud applications include a low total cost of ownership (TCO), fast deployment time, simplified access from a browser, single sign-on, and automated feature and functionality upgrades. And SMBs that currently use cloud applications plan to add an average of three new cloud business applications in 2012, proving there is a substantial business opportunity in healing SMBs’ cloud-related pain.
MSPs Can Offer Perfect Solution to SMB Cloud Problem
MSPs are in a great position to assist SMBs with their cloud problems. By its very nature, the managed services model is a “turnkey” model, as the user essentially turns IT applications on and off as needed, without worrying about any management or hosting issues. MSPs also offer SMBs the benefits of both best-of-breed and enterprise implementations.
An MSP can mix and match cloud solutions from different vendors to get the exact mix of features of functions that will best suit an SMB’s specific needs, but deliver them through one point of contact and under a single agreement, taking care of all the multivendor issues on the back end.
Furthermore, MSPs can take the responsibility for integration, coding, upgrading, and other IT management functions, freeing SMB IT staff for other important tasks and possibly even allowing SMBs to reduce IT headcount.
MSPs already know how much easier they can make the lives of SMB cloud users, the trick is to share this information with your SMB client base. Whether your SMBs currently use cloud technology or are considering an implementation, make sure they understand exactly how much simpler and more productive you can make their journey through the cloud.
4 Digital Companies Reaping Rewards From Cloud Computing
November 30, 2011. The cloud computing trend is gaining steam as more and more companies are looking to become more efficient and lower their cost structures. Especially in a slow economy as we are in now, companies that are providing cloud computing services are being looked at more and more by CIOs and CTOs.
And this trend is showing up in the numbers. In a report published just last week, GIA predicted that the global cloud computing services market will reach $127 billion by 2017. One of the factors the firm sighted was that cloud computing can potentially slash IT costs by over 35%. Here are four companies that stand to benefit from the growth in cloud computing.
Wave Systems (WAVX) is a provider of client and server software for hardware-based digital security. Wave’s core products are based around the Trusted Platform Module (TPM), the industry-standard hardware security chip that is included as standard equipment on most enterprise-class PCs shipping today. A TPM is a highly secure cryptographic support system. It generates, stores and processes keys, which can be used to encrypt information and harden identities. Even in a down economy, the company has continued growing its topline. For its recently reported Q3, Wave Systems was able to grow revenues nearly 42% y/y.
CACI International (CACI) has been around for 50 years and provides services and IT solutions needed in the areas of defense, intelligence, homeland security, and IT modernization and government transformation. CACI solutions help federal clients provide for national security, improve communications and collaboration, secure information systems and networks, enhance data collection and analysis, and increase efficiency and mission effectiveness.
Because CACI works closely with the government, revenue growth is a bit slower than for the whole cloud computing space. For its recently completed Q1'12, the company reported revenue growth of 10.8% with a jump in EPS of 53.3%. CACI is trading for less than 0.4x sales and less than 10x FY12 estimated earnings.
Amwest Imaging (AMWI.OB) provides relationship-building tools and processes that help any business cultivate profitable relationships with customers, all through web based solutions. The company has been expanding into new technology with its recent acquisition of Zipclik Technologies, which has 256 AES encryption software. This software is essential and necessary for clients wanting to protect and privatize financial data, medical information, enterprise research, sensitive corporate directives, passwords, and all other confidential, and sensitive information. This software has the potential of changing the landscape of how any and all sensitive data or communication is conducted.
VSE Corporation (VSEC) is another government contractor and is based right outside of Washington D.C. It is a diversified company focused on creating, sustaining, and improving the systems, equipment, and processes of government through core competencies in legacy systems sustainment, obsolescence management, prototyping, reverse engineering, technology insertion, supply chain management, foreign military sales, management consulting, and process improvement.
The company has seen a bit of a slowdown as government budget issues are impacting the flow of orders. Despite a drop in revenues y/y for its Q3, the company was able to cut costs and increase operating margins by 150 basis points. Surprisingly for a tech company, it pays a dividend which currently yields 1.2%.
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