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Cisco Express - Network on Wheels When we’re all connected, great things happen. BUSINESS TECHNOLOGY SOLUTION ROADMAPS FOR SMB GROWTH APR - JUN 2008 Market trend: The future belongs to companies who collaborate Dedicated or integrated security appliances? Collaboration is transforming how business works.

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Cisco Express - Network on WheelsWhen we’re all connected, great things happen.

BUSINESS TECHNOLOGY SOLUTION ROADMAPS FOR SMB GROWTH APR - JUN 2008 Market trend:

The future belongs to companies who collaborate

Dedicated or integrated security appliances?

Collaboration is transforming how business works.

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now. | APR-JUN 2008 �To subscribe, log on to: www.cisco.com/go/my/now

is a free, controlled circulation, quarterly publication of Cisco Systems, Inc. • Editorial Services: Ben Chong [email protected] • Design and Layout: Amy Tan • Advertising Sales

Enquires: Adrian Hoon [email protected] • Subscriptions: www.cisco.com/go/my/now • Publisher Committee: Joseph Lee, Anna Chan, Jusak Hartono, Kurnijanto Edy Sanggono.

Copyright © 2007 Cisco Systems, Inc. All rights reserved. Cisco, Cisco Systems, the Cisco Systems logo, and Linksys are registered trademarks of Cisco Systems, Inc. and/or its affiliates in the United States and certain other countries. All other trademarks mentioned in this document or Websites are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company.

Printed by In2 Marketing & Consulting Sdn Bhd (586034-A).

BUSINESS TECHNOLOGY SOLUTION ROADMAPS FOR SMB GROWTH APR - JUN 2008

C O N T E N T S

08 CISCO UPDATE

• New Certification Targets SMBs

10 COVER STORY

• Hop on the Cisco Express for a Technology Ride

12 EXECUTIVE INSIGHTS

• Collaboration is Transforming How Business Works

• Sized for SMBs

16 BEST PRACTICES

• In2 Says “Hello” to IP Communications

17 • Integrated Security: Ideal for SMBs

• Ensuring Non-Stop Power

• Unified Communications in a SMB Package

20 MARKET TRENDS

• Top 5 Security Issues Facing SMBs

• Wirelessness Makes the World Go Round

TECHNOLOGY SPOTLIGHT

Unified Communications is the latest Buzz Phrase in the Hot Seat of Convergence.

A variety of very specific technologies tied to data, voice and video are converging to provide an integrated, or unified communications architecture that bring about change to the way we work. It is about giving you a choice and flexibility over how, where and when you wish to communicate---all in real time.

Journey through this magazine and find out more about the rise of UC and just how it can change your organization for the better.

In this latest edition, our special report highlights one of the year’s most exciting events: ‘Cisco Express-Network on Wheels’ where one can expect to see and experience the latest in unified communications, wireless solutions, network security, and much more.

Cisco Express is a 40-foot container that has been refitted to create a technology solutions showcase for you to understand the benefits of Cisco’s technologies via ‘live’ demonstrations and an interactive user experience. Starting from Singapore, the Cisco Express will travel to Thailand, Philippines, Malaysia, Vietnam, Indonesia and Taiwan.

Hot on the “wheels” of Cisco Express in Malaysia will be Cisco’s upcoming Street Smart Campaign that kicks off at the end of April’08 with exciting activities that include web-based challenge competition, live demos, partner networking workshops and tech nights.

Finally, I would like to bring your attention to network security threats-- an area SMBs cannot afford to ignore. Many of you face the same security issues that large corporate environments do. As security requirements evolve to include more integrated security solutions, it is advantageous if one looks for partners who have a security portfolio that can dramatically improve the ability of a network to identify, prevent, and respond to threats.

As a trusted partner to SMBs, Cisco understands the challenges that lay ahead. NOW Magazine is Cisco’s contribution to enable SMBs in Malaysia to gain better understanding on all business and information communication technology topics. I hope you will benefit from reading this issue and do look out for us in the coming weeks as Cisco Express arrives at a location near you!

Yours sincerely,

Rise of Unified Communications

Sean OngDirector of Commercial, Cisco Malaysia

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CISCO UPDATE

“Small and medium businesses can become more competitive if they adopt smart business communication solutions,” said May Koay, sales manager for commercial business, Cisco Systems (M) Sdn Bhd.

The top five challenges facing SMBs today are lack of resources, competitive pressure, operational efficiency, investment protection, and securing business assets. Cisco’s innovative systems approach essentially enables organizations to improve operational efficiencies, enhance customer relationships, manage costs and rapidly respond to changing needs.

May was delivering a presentation to over 200 delegates at MCA ICT Research Centre (MIRC) Business Leadership Summit 2007 in Penang.

“We are all trying to meet the demands of staying connected,” she said. SMBs have their own preferences on how to connect and communicate. If they are able to put all their communication devices into one single network, these companies can not only increase efficiency and productivity, save time, cut costs, but improve customer service.

Cisco’s Business Communications Solution is the industry’s first smart and secure communications

solution designed and priced for small to medium sized businesses. It delivers integrated IP Communications, switching, security, wireless, and routing products with lifecycle services, support and financing.

More importantly, it is provides SMBs with a planned evolution path to help them maximize the short-and long-term potential of their technology investments.

Meanwhile, state executive councilor Teng Chang Yeow, who officiated at the event on behalf of Chief Minister Tan Sri Dr Koh Tsu Koon, said the summit provided a platform for SMEs to share their knowledge and experience

and learn how to tap into facilities and funding opportunities offered by the Government.

The MIRC Penang ICT Week was held from December 13-18, 2007 at Hotel Equatorial, Penang. Organized for the third consecutive year, the Penang ICT Week showcased the latest in technology adoption and IT applications which can be used by small and medium businesses.

Cisco Participates in MIRC Penang ICT Week

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For small businesses that are looking to improve their communications, productivity and mobility, Cisco is offering its Smart Business Communications System-- an affordable solution that brings together voice, data, video, security, and wireless in a single platform.

Designed for the unique needs of small businesses, the Cisco Smart Business Communications System supports up to 16 telephones, and can eventually scale to support up to 48 phones. It works with familiar business applications like calendaring, e-mail, and customer relationship management (CRM). This purpose-built business communications solution is easy to deploy and use, while allowing for business growth.

“Targeted at industries such as manufacturing, retail, and healthcare, Cisco’s Smart Business Communication System is ideally-suited for SMBs with fewer than 250 employees. This is a smart solution that works with existing tools and processes that SMBs already have, to make their organizations more agile and competitive while improving profitability,” said May Koay, sales manager, commercial business, SMB for Cisco Systems (M) Sdn Bhd.

As small businesses continue to face fierce competition from both large international corporations to small, technology-enabled companies, local SMBs are exploring ways to further reach out to the target

market efficiently. Hence, effective communications has since been a competitive advantage for SMBs to stay ahead of their competitors.

State of the marketIn a typical workplace today, most knowledge workers use multiple forms of communications within a business day. With a distributed workforce, face-to-face meetings and telephone calls are becoming far less popular than a decade ago. Face-to-face meetings often mean time-consuming travel for participants and an expensive option for remote workers. Email has therefore become the most common form of internal communications among knowledge workers, but with increased loads of messages, many workers find they cannot respond as quickly as needed.

Cisco Smart Business Communications System is an investment that delivers dividends in big ways for the SMBs. The solution helps SMBs to reach the right resource from anywhere, either from a desk or in a conference room. Employees can easily stay in touch, using business applications and communications tools such as instant messaging. They can collaborate quickly, using user-controlled point-and-click conferencing. Regardless of their location, they will all have the same rich communications experience.

Cisco Launches Smart Business Communications Systems in Malaysia

Small and medium businesses in Malaysia are expected to spend US$3.4 billion (RM11.9 billion) in 2008. According to AMI-Partners, a global SMB market research and consulting firm, SMBs in Malaysia are projected to grow their ICT spending by about 13 percent more than last year. Most of them are likely to invest in Internet connectivity, wireless technologies, storage technologies, and remote hosting.

With new formidable competitors entering the marketplace, Malaysian SMBs are definitely increasing their ICT investments in order to stay ahead of the game.

CISCO UPDATE

SMBs to increase ICT spending in

2008

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CISCO UPDATE

Malaysian TeamMakes IT to the Top

To accelerate the learning curve for technical talent in Malaysia, Cisco has introduced CCENT (Cisco Certified Entry Network Technician) program.

As an optional stepping stone to CCNA, CCENT validates the skills required for entry-level network support positions. A certified CCENT will have the knowledge and skill to install, operate and troubleshoot a small enterprise branch network, including the ability to configure IP addressing, implement basic security measures and understand the concepts of wireless networking.

Setting the foundation for more rigorous certification, CCENT is the first step towards other certifications such as Cisco Certified Network Associate (CCNA) and Cisco Certified Network Professional (CCNP).

As employers are constantly in search for skilled talents, IT professionals with CCENT certification will certainly stand out among the crowd, and have better opportunities to jumpstart a successful career in networking.

The Cisco training and certification program aims to provide network designers and engineers with a solid foundation on which they will change how people collaborate and communicate in the future.

Cisco ExpandsCertification Program

Look no further for the best technical brains within the Asia Pacific region. Malaysian team “BIT World” of Business I n f o r m a t i o n

Technology Sdn Bhd emerged as champions of the Cisco Tech Mastermind Asia Pacific 2007 competition, beating over 650 teams including finalists from Australia, New Zealand and Taiwan.

Held in conjunction with the Asia Pac Business Partner Summit 2007 in Gold Coast, Australia, the competition is managed by Cisco Rewards, an incentive Channels Programme that rewards sales and certification achievements. It is open to Cisco’s authorised resellers and premier resellers, with the aim to educate 2-tier partners about Cisco products, solutions and services. Participating teams were expected to demonstrate knowledge of various Cisco solutions, including Unified Communications, Wireless and Services.

In the earlier stages, BIT World was trailing only in 3rd place behind Australia, New Zealand and Taiwan. But with ongoing teamwork and determination between team mates Mohd Shahnaz and Faiz Shazwan from Pre-Sales, the Malaysian team finally caught up in the Unified Communications Solutions, Wireless and Services segment. This propelled them into the finals, landing them the chance to triumphantly beat the Australian team in a one-on-one showdown with a score of 26 to 17.

Backed by strong partnership with global technology leaders and IT service providers, Business Information Technology Sdn Bhd is an ISO 9000:2001 certified company offering full-service advanced Information Technology solutions. The company is also Cisco’s Premier Partner as a network solutions provider, managing services for implementation, maintenance and support of network infrastructure and network-centric software. Emerging as champions in the Cisco Tech Mastermind Asia Pacific 2007 competition has certainly earned them the recognition they deserve for their expertise and contribution in the competitive technological sector.

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CISCO UPDATE

Of late, the SMB community in Malaysia has been abuzz with news on Cisco. In conjunction with the successful launch of its latest Smart Business Communication System (SBCS), Cisco Malaysia is kicking off “Street Smart Campaign” for SMBs. The campaign underscores the significance of the SMB sector for Cisco Malaysia. Cisco recognizes the need for SMBs to adopt cutting-edge technology for its communication, mobility and security in an increasingly networked environment.

The “Street Smart Campaign” is scheduled to commence in March’08 with education awareness through major newspapers and tech workshops. Some of the issues that will be discussed are the myths of unified communications for SMBs, guide to preparing a Network Security Checklist and Smart Business Roadmap for SMBs.

The key highlight of this campaign is Cisco’s “Street Smart Competition Challenge”. This web-based challenge will be launched in May’08 and will consist of a demo flash video at the beginning to walk customers through a ‘Cisco User Experience’ program. This competition will help educate small and medium businesses on the significance of the Unified Communications system in regards to their business needs.

Following this, contestants will be required to participate in a simple quiz relating to the information that they have

learnt from the video. At the end of the challenge, they will be prompted with a registration form to include their personal details and also to submit their ‘Tech Wish List’ for their company.

The final results for the Street Smart Competition will be announced at the end of June’08, and the winner stands to win a Cisco SBCS solution bundle for 8 users.

The prize presentation ceremony for this challenge will be held during Cisco’s SMB Business Awards Night in September’08. This event aims to recognize outstanding SMBs in the fields of technology. More importantly, it will also highlight Cisco’s customer satisfaction and profitability rates as well as the operational efficiency and productivity of their products.

Get ‘Smart’ with Cisco’s Smart Business Communication System

Cisco SBCS Unified Communications 500 Bundles

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CISCO UPDATE

Just as brands are a hallmark of quality, the Cisco Select Certified Partner brand signifies a partner with SMB expertise.

If you are looking for a technology partner, look out for the Select Certified branding. This SMB specialization means the partner will have received the tools, training and incentives to meet the needs of today’s SMB-focused partners, whose customers have fewer than 250 employees.

SMBs that work with a Select Certified Partner get the immediate advantage of knowing they are working with experts. These partners will have relevant expertise to understand what SMBs need and how best to meet their technology concerns.

SMBs can expect the following benefits when working with a Select Certified Partner:

• Value: Certification helps partners fulfill customer needs through an emphasis on delivering value-added services for the SMB market.

• Proven technical expertise: Sales and technical expertise in switching, routing, security, and wireless solutions for SMB customers allows partners to pursue new opportunities in key markets and deliver the new solutions customers demand.

• Focus on customer satisfaction: With access to the same online customer satisfaction evaluation tools Cisco uses to evaluate its own performance, partners can identify strengths and develop targeted plans to better serve their SMB customers.

You can choose from 200 Select Certified SMB-focused partners in Asia. There are plans to have 1,000 such partners in the next three to five years.

The Select Certification is Cisco’s first new certification in 10 years, and the new Select Certified Partner tier will become the entry-level certification for the program, which currently includes Premier, Silver and Gold Certification.

Cisco partners qualify for the Select Certification by meeting the training and exam requirements of the new SMB specialization, which are designed to equip them with the sales and technical skills needed to deliver integrated network solutions to the SMB market.

Select Certified Partners can be identified by the Cisco Certified mark on their marketing material. They will also have access to demonstration equipment and training, as well as specialized business and technical training built from the ground up for SMBs, and a listing in the Cisco Partner Locator.

So look out for the Cisco Certified mark when you next search for a technology partner. It is an immediate sign of SMB expertise. To locate a Cisco partner near you, email us at [email protected].

New Certification Targets SMBsChoose from 200 Select Certified Partners who have deep SMB expertise.

SMBs that work with a Select Certified Partner get the immediate advantage of knowing they are working with experts.

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CISCO UPDATE

What Type of Partner Do I Need?

Cisco partners are ready to help you accelerate your

growth, differentiate your business, and drive greater

profitability. A partner may be qualified to deploy an

integrated network using multiple technologies, or they

may specialize in specific technologies. Partners may

have a global presence, or they may limit their activities

to one country or region.

Questions to consider while deciding which Cisco

partner fits your unique business needs include:

• How does your IT strategy support your business

goals and objectives? How can you build on your

current IT investments to achieve your goals?

• What are your business-critical needs and how does

your network address them?

• Are you seeking foundation technologies (such as

routing, switching and data center technologies)

or are you accelerating advanced technology

investments such as unified communications, wireless

LAN and security?

• Does your business span multiple regions

and locations?

• What role should security play in your network?

Cisco Specialized Partners have achieved a depth of

sales, technical and services expertise in a particular

technology. There are four levels of specialization:

• SMB Specialized Partners: Technical training in

switching, routing, security, and wireless solutions for

small and medium-sized businesses with fewer than

250 employees.

• Express Specialized Partners: There are two

Express Specializations. The Cisco Express

Foundation Specialization provides integrated

training in routing and switching, wireless LAN, and

security technologies. The Cisco Express Unified

Communications Specialization provides expertise

in converged data, voice, and video networking

technologies.

• Advanced Specialized Partners: Expertise in

selling, designing, installing, and supporting solutions

for a wide range of customer needs—from SMBs to

larger enterprises. Technology areas include data

center, unified communications, security, wireless

LAN, and routing and switching technologies.

• Master Specialized Partners: This Certification

recognizes an elite group of partners that have the

most in-depth technology skills and demonstrated

customer success in selling, deploying, and providing

services for more sophisticated Cisco Security and

Unified Communications solutions.

Training in Cisco Lifecycle Services methodology is

a requirement for each specialization. The Lifecycle

Services approach helps partners define the activities

needed to successfully deploy and operate Cisco

solutions, to optimize technology performance, and to

reduce deployment risk.

All Cisco Certified and Specialized Partners have access

to Cisco’s Channel Partner Program resources, and have

access to the latest technologies.

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Hop on the Cisco Express for a Technology RideBusiness and technical customers can see andexperience Cisco’s technologies via “live” demonstrationsand an interactive user experience.

COVER STORY

As the Cisco Express - Network on Wheels (NoW) rolls into your town, expect to see the latest and greatest in unified communications, wireless/mobility solutions, network security, meeting collaboration, emergency communication, and physical surveillance.

The Cisco Express is a 40-foot container that has been enhanced and refitted to create a technology solutions showcase from Cisco and its partners. This includes regional sponsors – CNA, EMC, Emerson Network Power, Linksys, Panduit and SingTel. In Singapore, the country sponsors are: 3D Networks, Avodaq, Common Town, Comstor, Datacraft, NCS, NEC, NexLabs, Qala and SCS.

This traveling showcase is a powerful tool that allows technical and non-technical customers to understand the benefits of Cisco’s technologies via “live” demonstrations and an interactive user experience.

A Firsthand LookStarting from Singapore, the Cisco Express will travel to 30 capitals and cities in Thailand, the Philippines, Malaysia, Vietnam, Indonesia and Taiwan. Visitors will be able to get a firsthand look at Cisco’s most integrated, advanced technology for companies from 20 employees to enterprise-type companies.

The Cisco Express is designed especially to extend Cisco’s reach to businesses like clinics, supermarkets, construction firms, resellers, schools, and even consumers. Over 20,000 people are expected to have seen the Cisco Express at the end of the 12-month tour.

“The Cisco Express provides a unique opportunity to create a “tell, show, try” customer experience,”

said Christian Hentschel, Cisco’s Director for Channel, Commercial and Marketing in Asia. “Visitors will be able to see Cisco technology and demos right where their businesses are located, wherever they are.”

The demonstrations will showcase the benefits of using:

• Unified Communications Solutions• Security Solutions• Mobility Solutions• Network Foundation Solutions• Data Center Solutions• Rapid Deployment Communications Solutions (iComm)• IPICS (IP Interoperability and Collaboration System)• Physical Security• Digital Media Systems

Each session in the Cisco Express can accommodate up to 10 people with plenty of time for questions, hands-on experience and personal attention. The demonstrations are designed to help businesses build their competitive advantage, maximize productivity and ROI, enhance customer care and loyalty, increase user satisfaction, and reduce operation costs.

The Cisco Express will be parked at strategic locations to be within easy reach of a large audience. These locations include: industrial parks, office compounds, and manufacturing parks. It will also be driven to educational institutes like tertiary institutions and univiersities, and schools, and government offices.

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To lend an air of excitement, the Cisco Express will be set up like a carnival. Besides Cisco technology on display, there will be an exhibition area to showcase partner solutions. Accompanying the roadshow will be events like channel partner networking nights, as well as workshops and seminars, and networking activities like CXO Nights in selected countries.

For Tai Chin Teck, Technology Manager at Nan Hua High School in Singapore, it was an eye-opening experience.

“It was very interesting as there were a lot of new technologies on display, like VoIP [Voice over IP]. Instead of just reading about the technology, we could actually get to see the physical layout and demonstration of the technology.”

At the launch of the Cisco Express, Cisco also announced a joint development initiative with Nanyang Polytechnic (NYP), a leading tertiary institute in Singapore, to further enrich the pool of networking technology talent.

The students will work at the Cisco Briefing Center (CBC) in Singapore and also be a part of the regional Cisco Express project team.“Our students will benefit immensely from the

development of solutions and technologies for industry, and from their involvement with the regional CBC. The exposure will better equip them with advanced ICT skills, and prepare them for the challenges of the global economy,” remarked Edward Ho, Deputy Principal/Development of NYP.

With mobile Internet connectivity and equipped with rapid deployable communications in the container, the Cisco Express can also be called upon to provide essential communications services for first responders in the advent of a natural disaster in the vicinity.

“We want the Cisco Express to be more than just a mobile technology showcase, it will integrate into the communities that it visits. We see the Cisco Express as a vehicle to extend the human network further into more parts of the region,” said Hentschel.

The Cisco Express has kicked off its tour in Singapore, and will visit Malaysia, Indonesia, Thailand, Vietnam, Taiwan, and the Philippines.

The Cisco Express provides a unique opportunity to create a “tell, show, try” customer experience. – Christian Hentschel, Cisco’s Director for Channel, Commercial and Marketing in Asia.

Singapore

Thailand

Philippines

Malaysia

Vietnam

Indonesia

Taiwan

Oct 2 - Oct 26 ’07 (4 weeks) Nov 8 - Dec 21 ’07 (6 weeks)

Jan 21 - Feb 8 ’08 (3 weeks)

Mar 10 - Apr 20 ’08 (6 weeks)

May 12 - Jun 7 ’08 (4 weeks)

(To be announced)

(To be announced)

N/A

Bangkok, Chonburi, Phuket, Had Yai.

Manila - Ortigas, Eastwood, Alabang.Luzon - Laguna, Cavite, Bataan.

Klang Valley, Putrajaya, Penang, Johor & Terengganu

Ho Chi Minh, Hanoi, Danang.

Jakarta, Bandung, Semarang, Yogyakarta, Surabaya.

Taipei, Shin-Chu, Taichung, Tainan, Kaoshiung.

Country Event Schedule City (Subject to change)

Event Schedule: October 200� – June 2008Cisco Express Tour

Please visit your local Cisco Website for more Cisco Express tour details.

COVER STORY

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The future belongs to companies who collaborate. In the “Foresight 2020” study conducted by the Economist Intelligence Unit (EIU) in 2006, executives predicted that over the next 15 years their markets will become even more global, functions within their organizations will atomize across geographies and partners, and competition will intensify from new corners of the world. To succeed in this environment, organizations need to collaborate with thousands of specialized players.

As part of a research program that arose from this study, the EIU surveyed 394 business leaders worldwide for a Cisco-sponsored survey gauging the extent to which collaboration is being encouraged, managed, and measured in both the private and public sectors.

The need to collaborate is clear. The elements required to ensure that collaborations work are emerging. What remains to be done is to develop formal collaboration frameworks. And despite massive growth in the reach and power of networks, there is little consensus on how technology will facilitate the growth of collaboration.

There were four major findings:

Collaboration is Transforming How Business Works

1. Companies are indeed facing a new imperative to form collaborative relationships.

Senior executives understand that success depends on collaborating across greater distances—physical, cultural, and organizational.

There was near-universal agreement that collaborative relationships are therefore growing increasingly crucial to business success. Sixty-three percent of executives said they would spend more time working with teams in different locations over the next three years. Just over one-half expect to work more with people outside their function or organization.

2. Successful collaboration requires a cultural shift that is already well underway.

A strong culture of collaboration exists at many of the organizations. Employees trust each other. Sharing ismore prevalent than secrecy. Communication is frequent and open. Employees actively seek specialized knowledge from other organizations, and more than 80 percent want to partner with other organizations.

�. Companies face challenges in establishing processes, and measuring and monitoring the benefits of collaboration.

Employee attitudes are not always backed up by high-level reinforcement and incentives. In many cases, senior management fails to establish collaboration processes, explain the benefits, publicize successes, or reward collaborators. As difficult as it may seem, some companies have established extensive metrics.

�. Despite the promise of technology, there is still dissatisfaction with online collaboration tools.

Despite the rise of powerful networks with universal connectivity, there is little consensus on the most effective ways to use technology to facilitate collaboration. Executives use e-mail, instant messaging, shared calendars, intranets, and web conferencing, but they do not feel that current tools add much to the collaborative process. For example, while virtually everyone uses e-mail, only 61 percent find it useful.

market trendsEXECUTIVE INSIGHTS

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Most companies recognize that they need to collaborate. They are collaborating more widely and deeply than ever before. Instead of trying to cover all areas in-house, corporations will try to reduce costs, maintain or increase quality and increase strategic flexibility by drawing on the capabilities of other organizations.

Disparate groups will come together in collaborative networks, with work flowing to where it can be done best. Companies that excel in collaborative problem-solving will be able enter markets early, take advantage of local knowledge and ramp up quickly.

Companies can increase the odds that their collaborations will be successful by setting up a formal process to select partners and devoting substantial time upfront to planning and goal-setting. Partners can enhance trust by communicating openly and frequently and emphasizing face-to-face interactions early in the project, when the tone of the relationship is set.

Here are some tips for managing the implementation of collaboration technology in your company:

Tip 1: Build a Cross-Functional TeamPut together a team that has both technical expertise and represents users.

Tip 2: Get Your Users On BoardResistance to change is normal and should always be anticipated. Manage user expectations by using education and frequent communication to mitigate mystery and uncertainty.

Tip �: Do Your HomeworkUnderstanding your organization’s culture is critical to successfully implementing new technology on a large scale. Consider questions such as:• Does your company encourage risk taking?• What have previous technology deployments taught

you about how users prefer to be trained?

Tip �: Ensure User Requirements Drive Design RequirementsIdentify user-preferred services and features, identify critical communications features, validate key business needs, gauge risk tolerance and user discomfort, and identify key functionalities that are paramount to your business.

Tip �: Crawl First, Walk Proudly, and Run AggressivelyYour implementation strategy should allow you to progressively move faster as your experience levels become more efficient. The number of employees,

complexity of user requirements, size of the organization, and how widely all are dispersed affect your migration strategy. Develop a strategy that accounts for all the variables that could change or affect implementation of the network.

Tip �: Follow the 80/20 RuleSuccess depends on several considerations, most important among them is planning. In fact, implementations usually consist of 80% preparation and 20% installation. Quite simply, if you focus on your plan first, the implementation will be much smoother.

Tip �: Have a Good Support PlanA well-developed support plan has four elements:• Team: people who can resolve the entire spectrum

of issues• Processes: use the ones you already have in place

rather than creating new ones• Services: internal and external teams, management

tools, and global coverage• Tools: network monitoring tools to resolve problems

before they become visible to users

In summary, the biggest challenges to building effective collaborations are developing the processes, leadership, and metrics to support them. New technology can and undoubtedly will facilitate collaboration, but teams can collaborate successfully even using e-mail, conference calls and instant messaging. As long as companies devote the requisite time and effort to planning, managing and measuring collaborative efforts, they are likely to bear fruit.

Which of these objectives would benefit most from collaboration?

Increasing revenue growth 25%

Improving competitive differentiation (eg, better product design, more customer loyalty) 32%

Increasing operational efficiency (eg, process improvements, faster speed to market) 42%

Increasing productivity 29%

Improving problem solving 33%

Extending our global reach to customers and/or partners 15%

Improving service for customers or constituents 20%

Lowering costs 16%

Communicating more efficiently across the organization 21%

Improving knowledge sharing within the organization 28%

Improving profitability 16%

Other 1%

Source: EIU, Foresight 2020 (2006)

market trendsEXECUTIVE INSIGHTS

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The Unified Communications 520 voice appliance targets the SMB market, which typically use the Key Telephony System (KTS) voice systems that support 50 lines or less.

The Unified Communications 520 voice appliance integrates into one platform previously separate components, including:• Cisco CallManager Express for VoIP call processing.• Cisco Unity Express offering integrated voicemail,

greeting, and interactive voice response (IVR) services.• Full portfolio of IP phones.• Basic security built in.

Basically, SMB customers get Cisco value in a cost-effective, uncomplicated and easy-to-use package. That said, we will continue to pursue more intuitive and integrated offerings for the SMB market.

Q: Can you elaborate on the changes to the channel program? A: SMB specialization is our first market segment specialization where we launched Select Certification for a dedicated number of resellers. With the SMB specialization, we will provide the tools, training and

incentives that meet the needs of today’s SMB-focused partners.

The Select Certification is an entry point into the award-winning Cisco Channel Partner Program. Partners qualify for the Select Certification by meeting the training and exam requirements of the new SMB Specialization, which are designed to equip them with the

sales and technical skills needed to deliver integrated network solutions to the SMB market.

We definitely want to continue with the strong growth we have achieved in the SMB market. We intend to

In 2004, Cisco first announced a major increase in resources targeting the small and medium-sized business (SMB) market, which the company defines as its commercial business, targeting companies with 250 employees or less.

Fast forward three years later. Today, Cisco has become the networking leader in the SMB space, with its share of the SMB market adding up to US$1.5 billion. now. Magazine talks to Christian Hentschel, Cisco's Director for Channel, Commercial & Marketing in Asia, for some insight into these changes. Q: Broadly, what steps has Cisco taken to target the SMB space?A: So far, we have invested US$2 billion in two years to broaden Cisco’s SMB product portfolio. More than 50 purpose-built products have been added. We have also enhanced our channel and services programs, all in a bid to round out our SMB offerings.

Q: So what is Cisco’s key to success in the SMB market?A: It is really about doing things differently compared to the enterprise space. We deliver technology that is easy to use, install, operate, maintain – yet provide the Cisco quality to help our commercial customers to drive their business, reduce total cost of ownership (TCO) and increase return on investment (ROI).

Q: Can you give an example to show how Cisco has tailored its hardware for SMBs?A: An example is our recent introduction of the Cisco Unified Communications Appliance as part of our commercial Smart Business Communications products.

Sized for SMBsAs the networking leader for SMBs, Cisco has put in place the relevant products, channels and services programs.

We have invested US$2 billion in two years to broaden Cisco’s SMB product portfolio. More than 50 purpose-built products have been added. – Christian Hentschel, Cisco's Director for Channel, Commercial and Marketing in Asia.

Christian Hentschel

For more information on Cisco’s strategies and solutions for SMBs, visit www.cisco.com/web/MY/solutions/smb

market trendsEXECUTIVE INSIGHTS

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UNIFIED COMMUNICATIONS (IP COMMUNICATIONS/VOIP)

Improve productivity and minimize costs with converged voice, video, and data.• Cisco Unified Communications Manager• Cisco Unified Communications Manager Express• Cisco Unified 7900 Series IP Phones• Cisco Unified Contact Center Express• Cisco Unity Connection• Cisco Unity• Cisco Unity Express SECURITY AND VPN

Integrated solutions protect your information, customers, and operations.• Cisco PIX 500 Series Security Appliances• Cisco VPN 3002 Hardware Clients• Cisco Intrusion Prevention System• Cisco ASA 5500 Series Adaptive Security Appliances• Integrated Router Security• Cisco IPS 4200 Series Sensors• Cisco Clean Access• Cisco Security Agent• Cisco Security Monitoring, Analysis and Response System

ROUTING AND SWITCHING

Create a secure network foundation that grows with your business.

Routing• Cisco SB 100 Series Small-Business Routers• Cisco SOHO 70 Series Routers• Cisco SOHO 90 Series Secure Broadband Routers• Cisco 800 Series Routers• Cisco 1700 Series Access Routers• Cisco 1800 Series Integrated Services Routers• Cisco 2600 Series Multiservice Platforms• Cisco 2800 Series Integrated Services Routers• Cisco 3600 Series Multiservice Platforms• Cisco 3700 Series Multiservice Access Routers• Cisco 3800 Series Integrated Services Routers

Switching• Cisco Catalyst Express 500 Series Switches• Cisco Catalyst 2960 Series Switches• Cisco Catalyst 3560 Series Switches• Cisco Catalyst 3750 Series Switches• Cisco Catalyst 4500 Series Switches• Cisco Catalyst 4900 Series Switches• Cisco Catalyst 6500 Series Switches

MOBILITY

Stay connected with secure mobile access, in the office and on the road.

Cisco Mobility Express Solution• Cisco 500 Series Wireless Express Access Points• Cisco 500 Series Wireless Express Mobility Controller

Cisco Unified Wireless Network• Access Points• Wireless LAN Controllers• Cisco Wireless Control System• Cisco Wireless Location Appliance

APPLICATIONS

Improve productivity and cut costs with call center and collaboration tools.• Cisco Unified CallConnector for Microsoft Dynamics CRM• Cisco Unity• Cisco MeetingPlace Express

STORAGE NETWORKING

Manage and secure your company’s data within the network.• Cisco MDS 9020 Series Fabric Switch• Cisco MDS 9100 Series Multilayer Fabric Switches• Cisco MDS 9200 Series Multilayer Fabric Switches

ADDITIONAL PRODUCTS

Network Management• Cisco Network Assistant• Cisco Router Security Device Manager

Cisco Products Tailor-Made for SMBsCisco’s portfolio includes products tailored to the needs of small to medium-sized business.

significantly increase the number of SMB-focused partners in Asia who are trained and certified from 200 today to 1,000 in the next three to five years.

Q: What about services? A: Cisco plans to roll out a new SMB-targeted remote network monitoring offering called “Cisco Smart Care Service”. This aims to provide comprehensive network care and improvement for SMBs, offered through Cisco registered partners. It combines network-wide technical support with proactive network monitoring, assessments and remote repairs.

Currently, the Cisco Smart Care Service is only offered through Cisco Select Certification partners as part of a pilot program. It is expected to become widely

available in several countries in Asia in October 2007, and released through a phased approach in 2008 for the rest of Asia.

Q: What are Cisco’s long-term vision and goals for SMB customers?A: We want to continue to drive the strong growth and be number one in the SMB market. We are definitely working on expanding our product portfolio to make it even easier to use our products.

In addition, we will also continue to help our customers with their success by providing comprehensive coverage and value across the consumer, commercial, enterprise and service provider markets.

market trendsEXECUTIVE INSIGHTS

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Marketing consultancy In2 is using Cisco’s voice and Internet Protocol (IP) communication solutions for small and medium-sized businesses (SMBs) to drive its regional expansion plans.

In2 deployed a total solution that combined 35 Cisco Unified IP Phones, Cisco routers, and the Cisco Unified Communications Manager Express. A converter was added to enable the running of IP communications on analog phones for a further 15 users, allowing In2 to provision up to 50 users.

Prior to this, In2 was using a digital keyphone system, which could not support the increasing number of users as the company grew.

“To fulfill the needs of our fast-growing business, our company needed a data and voice network system

which offered us high mobility but at the same time would not compromise on security,” said Lynette Yap, Brand Communications Director of In2. “Cisco gave us the best customized solution for our requirements, and we have already started to see the benefits.”

Integrated communications has allowed In2 to significantly change the working style of the entire organization, not only at the highest level of management but also across the board. As a result, In2 has been able to streamline its operations and simplify management, maintenance and training as well as increase efficiency, resulting in a lower total cost of ownership.

IP-based technologies offer two distinct key advantages. First, they help lower operational costs

In2 Says “Hello” to IP Communications

by reducing the number of networks and services that companies need to maintain. Second, since voice, video and data can run over IP networks, they can also be as combined and run much more cost-effectively than with previous technologies, which makes IP-based technology the key to driving convergence.

“We are satisfied with the performance of the solution, which has also contributed to significant cost-savings. With Cisco’s solution we have the flexibility to add capacity as and when we need it,” added Yap.

“As a small business, we welcome Cisco’s innovation and technology, previously available only to larger businesses, in an economical and flexible package that allows for customization to fit our current needs and allow for future growth.”

Lynette Yap

Type of Business: In2 Marketing & Consulting Sdn Bhd is a marketing consultancy, and has a staff strength of 35, with offices in Malaysia and Singapore.

Cisco Solution: 35 Cisco Unified IP Phones, Cisco routers, and the Cisco Unified Communications Manager Express.

Business Benefits: • Streamlined operations • Simplified management, maintenance and training • Increased efficiency• Lower total cost of ownership

IP communications helps Malaysian marketing consultancy to drive regional expansion.

Cisco gave us the best customized [IP communication] solution for our requirements, and we have already started to see the benefits. – Lynette Yap, Brand Communications Director of In2.

Quick Facts

BEST PRACTICES

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Integrated Security: Ideal for SMBsA new generation of integrated routers are helping to deliver secure wire-speed data, voice, video, and other advanced services to SMBs.

There are many benefits to integrating security directly into the router. An integrated router uses the existing network infrastructure, helping enable new security features on the router without deploying additional hardware. This reduces the number of devices in the network, lowering training and manageability costs for an overall lower total cost of ownership (TCO).

Integration also provides the flexibility to apply security functions, such as firewalls, inline intrusion prevention, and VPNs, anywhere in the network. This ensures the best defense against security threats. Router-based, switch-based, and appliance-based functions combine to offer end-to-end protection throughout the network.

In addition, integrating security directly into the router protects network gateways, because routers are the first points of entry into the network.

Security on the router not only protects the first point of entry into the network, but it also takes advantage of the intelligence of the router as a “trusted handler” of the traffic, integrating more advanced security, quality of service (QoS), and routing features. At the router, security information can be shared and a fast, accurate response to a threat coordinated, helping to ensure high network availability. And integrated security protects the router itself, while creating a line of defense against attacks targeted directly at the network infrastructure, such as Distributed Denial-of-Service (DDoS) attacks.

Choosing an Integrated vs Dedicated ApplianceAlthough the line between integrated security and standalone appliances continues to blur, there are several reasons why a customer might choose one over the other for a combination of security solutions.

One important consideration is the location of the network that needs to be secured. Many companies

choose to integrate security into their edge aggregation routers. Larger enterprises, however, may opt to secure their headends with standalone appliances and their data centers with switch-based firewall services modules, because these areas of the network need higher throughput. Yet these same enterprises may also choose to secure all points in the network by adding routers with integrated security in their branch offices.

Choosing integrated or dedicated-purpose network security solutions also may be influenced by customer preference; a desire to take advantage of existing infrastructure, deployment, and operations architecture; or specific feature differences.

Some companies simply prefer to “let routers route and switches switch.” Or from a management standpoint, a company may prefer to separate its security and VPN infrastructure from its networking infrastructures because it employs a team dedicated to security and VPN management.

Ultimately, taking advantage of existing routers or switches for security is a cost-effective option for extending the deployment life of an infrastructure. This maximizes the return on the initial investment and significantly reduces future costs and business interruption due to premature device replacement.

TECHNOLOGY SPOTLIGHT

Cisco’s family of Integrated Services Routers: The Cisco 800, 1800, 2800, and 3800 Series.

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More and more companies have become highly dependent on online applications and the efficiency of their network infrastructure. But have we ever thought through what really ensures the availability of these applications?

At the core of every IT equipment is power. Even a minor glitch in power that runs an application makes any system vulnerable. Whether a company is implementing a VoIP (Voice over IP) solution or evaluating network security solutions against spyware and viruses, power protection should never be on the back burner.

First, let us understand the role that a power protection system plays. A power protection system ensures that there is sufficient control and protection from the incoming mains power supply. Having this system in place means protecting your system from unplanned downtime and embracing availability of your company’s applications. Ultimately, the goal is to assure your customer of a pleasant experience in doing business with you.

In an ideal world, electrical utilities would deliver clean, reliable power to business critical systems. Unfortunately, this is not the reality. Appropriate systems are required to ensure necessary power availability and quality is achieved, as simply and cost effectively as possible.

So what are the basic components of a power protection system?

• Transient Voltage Surge Suppression (TVSS) A “transient” is a brief but extreme burst of energy that can travel across AC power, telephone or data lines. They can either come from lighting, utility grid switching, electrical accidents, or from large power-consuming systems, such as motors or building air conditioning systems.

Fuses and circuit breakers are designed for overcurrent protection and do not provide transient voltage protection. The IEEE (Institute for Electrical and Electronic Engineers) recommends TVSS at both the service entrance and the data center to avoid transient

entering into your power supply. This protection can be integrated into the UPS or installed as a standalone device.

• Uninterruptible Power Supply (UPS) The UPS serves two critical functions: it provides backup power in the event of an interruption in utility power, and depending upon topology, “conditions” utility power to eliminate power disturbances that can shut down or damage sensitive electronics.

The battery capacity of the UPS determines how long the system can provide power to the load in the absence of utility power. Typically, battery plants are sized to provide 10 to 20 minutes of power at full load in large data centers. Smaller facilities or high-power applications may be configured with more battery capacity. • Static Transfer Switch (STS)Redundancy is often designed into the power system to eliminate single points of failure. An STS functions as a switch which is connected to two independent power sources (usually a primary UPS and a redundant UPS) at the input, and to a load at the output. In the event the primary power source fails, the STS instantaneously switches the load across to the redundant power source to keep the load powered. • Power Distribution Unit (PDU)The power distribution unit distributes power from the UPS (or utility if no UPS is present) to the supported systems. A power distribution system can range from a single PDU, to a PDU/STS combination, to multiple PDUs and switches.

In many cases, relatively simple and immediate power protection implementation, as opposed to radical changes, can pay immediate dividends. This is not to say that a strategic and long-term plan for addressing power protection issues should be dismissed as this is equally important to ensure that we fully receive the benefits that IT initiatives promise.

Ensuring Non-Stop Power

By Toni Frances Mercado. He is CRM Custodian at Emerson Network Power (Asia Pacific) Marketing.

To avoid power outages, certain systems are required to ensure power availability and quality.

TECHNOLOGY SPOTLIGHT

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The Cisco SBCS portfolio includes the following:• The Cisco Unified Communications �00 (UC�00)

Series appliances with voice and messaging features, PSTN and Internet connectivity, integrated network security, and an optional integrated WLAN access point.

• The Cisco Catalyst Express �20 Series Switches are fixed-configuration, Layer 2 managed Ethernet switches with wire-speed Fast Ethernet and Gigabit Ethernet connectivity, integrated security, and quality-of-service (QoS) and Power-over-Ethernet (PoE) features to support advanced IP Communications and wireless LAN applications.

• The Cisco Mobility Express Solution with the Cisco 521 Wireless Express Access Point and the Cisco 526 Wireless Express Mobility Controller

enable scalable wireless coverage, centralized management, and business-class security and mobility services.

• Cisco Unified IP Phones: The full Cisco Unified IP Phone portfolio is supported, including the Cisco Unified IP Communicator and wireless IP Phones. Customers can choose the appropriate models based on functional requirements.

The Cisco SBCS provides a unique, comprehensive business communications solution with tightly coupled voice, data, video, LAN switching, network security, wireless mobility, and system management that other vendors can not provide.

Other vendors provide only a phone system, and integration of the phone system into the data network is limited. The ability to migrate customers to the full line of Cisco products is also a key differentiator. In addition, the integration of business productivity applications by Cisco and third-party vendors will use the infrastructure solution provided by the Cisco SBCS.

Expansion OptionsThe SBCS is expandable and can grow in several ways beyond LAN switching expansion. Customers who may not have initially started with the SBCS integrated wireless mobility offering can easily add the new Cisco Mobility Express wireless products to build a best-in-class wireless LAN for advanced mobility services.

For further expansion options, Cisco SBCS also works with third-party applications like Skype Gateway (through third-party applications from Stonevoice), and supports Nokia’s Dual-mode cellular/802.11 phones.

Unified Communications in a SMB PackageThe Cisco Smart Business Communications System (SBCS) provides WAN access, routing, and a firewall in a single all-in-one package, eliminating the need for multiple servers.

Cisco UC500 and Cisco Catalyst Express 520.

The Cisco Unified IP Phone.

The industry-leading Cisco Unified Communications applications and hardware, including the full line of Cisco IP Phones, are now available to small businesses.

Ideal for a company with up to 48 users, Cisco’s Smart Business Communications System (SBCS) comes with the well-known Cisco Call Manager Express and Cisco Unity Express (voicemail functionality) in an affordable package.

Launched in April 2007, the easy-to-manage solution offers telephony, voice messaging, automated attendant, security, VPN, and video. It also integrates with existing desktop applications such as calendar, e-mail, and customer relationship management (CRM) programs.

TECHNOLOGY SPOTLIGHT

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In this information age, small and medium-sized businesses (SMBs) use the Internet and networked applications to reach new customers and serve their existing ones more effectively. At the same time, new security threats and legislation have put increased pressure on business networks to be reliable and secure.

According to recent studies, security is the biggest challenge facing SMBs. Ever-changing security threats from both inside and outside the business network can severely impair business operations, affecting profitability and customer satisfaction. In addition, SMBs must comply with new regulations and laws created to protect consumer privacy and secure electronic information.

Security Issue No. 1: Worms and VirusesComputer worms and viruses remain the most common security threat, with a large proportion of SMBs affected by at least one virus in a year. Worms and viruses can have a devastating effect on business continuity and profitability. Smarter, more destructive strains are spreading faster than ever, infecting entire offices in seconds. Cleaning the infected computers takes much longer, and the process often results in lost orders, corrupted databases, and angry customers.

As businesses struggle to update their computers with the latest operating system patches and antivirus

Top � Security Issues Facing SMBs

software, new viruses can penetrate their defenses at any time. Meanwhile, employees spread viruses and spyware by unwittingly accessing malicious websites, downloading untrustworthy material, or opening e-mail attachments. These attacks are unintentionally invited into the organization, but can still cause significant financial losses. Security systems must detect and repel worms, viruses, and spyware at all points in the network.

Security Issue No. 2: Information TheftInformation theft is lucrative. Hackers break into business networks to steal credit card numbers or other data for profit. SMBs are seen as an easier target than large corporations. Protecting the perimeter of the network is a good start, but it is not enough, since many information thefts are assisted by a trusted insider, such as an employee or contractor.

Information theft can be costly to SMBs, since they rely on satisfied customers and a good reputation to help grow their business. Businesses that do not adequately protect their information could face negative publicity, government fines, or even lawsuits. For example, new consumer laws enacted in California require any business that suspects customer information has been viewed by unauthorized people must notify all their customers. Any security strategy must prevent theft of sensitive electronic information from both inside and outside the business.

Security Issue No. �: Business AvailabilityComputer worms and viruses are not the only threat to business availability. Denial-of-Service (DoS) attacks can shut down websites and e-commerce operations by sending large volumes of traffic to a critical network element and causing it to fail or to be unable to process legitimate traffic. Once again, the results are disastrous: data and orders are lost and customer requests are not answered. If these attacks become public, a company’s credibility is damaged. While most of the publicity

Ever-changing security threats can severely impair business operations. SMBs need to take steps to secure their business infrastructure.

MARKET TRENDS

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surrounding DoS outages has focused on major banks and global 500 companies, SMBs are not immune. They are viewed as less prepared for attacks than large corporations.

Many less dramatic but more likely attacks also threaten business availability. For example, a resource theft attack breaches business computers and networks, using them for illegal file sharing of music, movies, or software. Often, businesses are unaware that a security breach is underway. Meanwhile, their computers and networks are slow to respond to customers, and their unwitting participation in illegal file sharing leaves them vulnerable to lawsuits.

Security Issue No. �: The UnknownWith every advance in computing and communications comes new ways to exploit that technology for gain or mischief. New hardware or software releases present such opportunities. When peer-to-peer networking and instant messaging were still relatively new applications, for example, their users were attacked by malicious code written specifically for them.

Now, mobile phones are frequent targets of viruses. Without the ability to predict what is coming next, the best defense is one that can easily adapt to future threats, and that is affordable.

Security Issue No. �: Security LegislationAside from these security threats, new laws and regulations require that SMBs protect the privacy and integrity of the information entrusted to them. In the European Union, for example, the EU Data Protection Act governs the protection of personal data in the hands of organizations. Nearly every industry has an example of legislation that regulates businesses and requires additional security measures. In the United States, the Health Insurance Portability and Accountability Act (HIPAA) requires healthcare organizations, including every doctor’s office, to put safeguards in place to ensure the privacy of health information and prevent unauthorized access.

The onus is on businesses to comply with laws and regulations that apply to their business in their markets. Customers want assurance that their information will be kept private. All businesses must take steps to secure their business infrastructure, but with their limited budgets, SMBs, in particular, require simple, right-sized, affordable solutions.

Information theft can be costly to SMBs, since they rely on satisfied customers and a good reputation to help grow their business.

• SMBs worldwide are estimated to have spent US$11.4 billion on beefing up their IT security and infrastructure this year in a bid to thwart increasing electronic threats in 2006. This spending trend will increase at double-digit rates annually over the next several years, according to the analyst firm Access Markets International (AMI) Partners.

• In spite of the rapid growth in SMBs’ IT security spending in recent years, the untapped potential remains large. AMI estimates there are nearly 13 million SMBs worldwide that do not even have an anti-virus installed on their PCs. These results were based on surveys of SMBs conducted by AMI in over 20 countries representing key developed and emerging markets.

100%

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U.S.

Australia

France

Germany

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India

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s

Importance of Enhancing IT Security Among SMBs

SBs MBs

Small & Medium Businesses have 1 to 999 employees each

Enhancing IT Security is a Major Concern for SMBs

Source: AMI Partners, 2006

MARKET TRENDS

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The insatiable boom in cellphone adoption and usage in the two most populous economies of the world – India and China – will ensure that more and more consumers will find more unique, novel and innovative uses for wireless devices. This includes the humble cellphone, the increasingly popular smart-phone, the businessman’s PDA (personal digital assistant) and the notebook computer.

Look at the wireless numbers: companies with under 1,000 employees in India and China will invest about US$10 billion on wireless infrastructure in the next 12 months, says the latest study by Access Markets International (AMI) Partners.

Small and medium-sized businesses (SMBs) in India will account for about US$2.5 billion and China will take up the rest. Wireless infrastructure includes equipment and services spending on portable PCs, PDAs, handheld devices and cellphones.

Even in Asean, the infocomm boom is evident. There are currently about 8 million SMBs across 10 Asean countries – Singapore, Malaysia, Indonesia, Thailand, Vietnam, Brunei, Cambodia, Laos, Myanmar and the Philippines – and about 99% of them are SBs (small businesses, or companies with up to 99 employees). Together, they spent about US$9.8 billion on IT in 2005. By 2010, that will cross US$15 billion, growing at a 14% annual clip on a conservative basis. A big chunk of that spend will be on telecom, and wireless enablement.

In India, the trends were clear in 2004, when mobile phone users overtook their fixed-line counterparts. As of October 2004, there were 44.9 million cellphone users in India, compared to 43.9 million fixed-line users. Today, the number of fixed-line users has inched up to 50 million, while the number of cellphone users has shot up to 200 million, the third largest in the world – behind China and the US. India’s call rates at 2 US cents is the lowest in the world.

India also presents huge untapped WLAN (wireless local area network) opportunities. Though 70% of Indian medium businesses (MBs, or companies between

100 and 999 employees) have a LAN, less than 25% have deployed WLANs. To be fair, WLAN penetration is low among SBs in China as well. But in both countries, WLAN adoption will grow as SMBs increasingly deploy LANs and high-speed Internet connectivity. This, coupled with falling prices of networking equipment — such as wireless routers — will push SMBs in India and China to ride on the wireless wave to boost business. Right now, wirelessness is still overwhelmingly in the consumer space.

There are two other strong mobility drivers. One is expanding notebook PC usage, and the other is the number of mobile employees. According to AMI’s surveys on notebook PC ownership, 55% of MBs in India (82% in China) currently own a notebook PC, while an additional 34% plan to buy one in the next 12 months. Among SBs that already have desktop PCs, 12% in India and 20% of China-based PC-owning SBs, will buy notebook PCs this year. Almost all notebooks will come with WiFi, some with Bluetooth as well, to enable seamless connectivity. Most notebooks will have adequate security software to ensure malware and hackers are kept at bay.

As for mobile employees, up to 46% of China’s SBs and 40% of India’s SBs (the number for MBs is considerably higher) have staff that need to frequently travel on the job. Such mobile employees need to also be connected to their company’s intranets, which makes having adequate data security solutions and policies absolutely imperative.

By Raju Chellam. He is the Vice President (Asia-Pacific)

with Access Markets International (AMI) Partners, based

in Singapore.

Wirelessness Makes the World Go RoundSMBs in Asean will spend US$15 billion on IT by 2010.

MARKET TRENDS

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