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How can I benefit from the cloud? I hear about the cloud all the time, but what will it really do for me and my business? These and other questions about “cloud” and IT services are part of the day in the life of every SMB (Small to Medium-sized Business) customer in the U.S. market. The reason they are in business or running a business does not center around Cloud and IT, but on their business. Whether it is keeping the retail sales flowing or food products going out the door, which is why they are in business. A good IT services and Cloud provider is there to provide the support they need to run their businesses more efficiently and effectively so they can truly focus on what they love, their business. Michael Toplisek, the EVP of Marketing and Product at EarthLink will use real customer examples to illustrate how excellent cloud services can help the smb customer lift some of the burdens of their daily business allowing them to do the things they do best.
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A Day In The Life ofthe SMB Owner
Mike ToplisekEVP Marketing & Sales
The SMB
Very Small (1-25) Small (26-99) Medium (100-999)
Site Location • Primarily one location or very localized
• Localized geography • Dispersed but national geography
IT Resources • Limited or no IT resources• Minimal influence of IT
professional
• Very few IT resources• 17% has dedicated IT full-
time FTE (1.2 avg.)• Use local IT contractor
• Small but dedicated IT• 75% has dedicated IT full-time
FTE (4.2 on average)
IT as a Service
Business Segment Drives IT BehaviorVery Small (1-25) Small (26-99) Medium (100-999)
Site Location • Primarily one location or very localized
• Localized geography • Dispersed but national geography
IT Resources • Limited or no IT resources• Minimal influence of IT
professional
• Very few IT resources• 17% has dedicated IT full-
time FTE (1.2 avg.)• Use local IT contractor
• Small but dedicated IT• 75% has dedicated IT full-time
FTE (4.2 on average)
IT Service Purchase
• Web or call center by owner with limited inputs
• Web or call center by owner or manager with inputs from co-workers
• In-house IT staff (FTE or part-time) are responsible for most
IT Purchase Drivers
• Business support needs• Price and awareness of SP
service availability
• Operational efficiencies• TCO and security
• Business continuity and drive revenue growth
• TCO, security and scalability
IT Behavior • Secondary to running overall business
• Limited knowledge on technology & SP options
• Simple point products• “Settle” for and remain
with current services
• Secondary business function
• Not familiar with new technology / services
• Simple solutions• Most “settle” for current
services
• IT as a main function• Aware of new technologies, but
not the business value• Inexpensive solutions with
kernels of large business functionality
• Advanced but tried & tested
WHY WOULD SMBS LEVERAGE THE CLOUD?
Cloud Solution for Businesses of All Sizes
With IT budgets relatively flat at most companies, and with competitors fighting for every scrap of business, CIOs can no longer afford to spend 70% to 80% of their precious funds supporting and maintaining existing systems. They must shift, permanently, a big chunk of their budgets into growth initiatives–IT projects and programs that open new markets and drive new business rather than just maintain the status quo.-Information Week
“
”
Typical SMB IT ChallengesHow do I minimize IT capital expenditures & reduce IT operating expenses, without sacrificing services?
How do I reduce the complexity of my IT operations?
How can I scale IT resources to keep pace with rapidly changing business requirements?
How do I keep my mobile workers better connected to our applications and email?
Does my backup plan adequately protect my data from man-made and natural disasters?
Does our email platform enable maximum employee productivity and collaboration?
How do I get my limited IT staff refocused on strategic revenue generating initiatives?
Does my network security protect my IT environment and sensitive data and meetthe regulatory compliances?
Delivers real business value, right now!
1. DramaticallyReduce Costs
so you can invest in business opportunities
3. Deliver and Scale IT Services Flexibly
to keep pace with your business requirements
How Cloud Helps Your Business
2. Reduce Complexity
simplifying operations
and maintenance
Respond to Changing Business Requirements
• Meet today’s business requirements– Consolidate and simplify infrastructure and operations, while reducing
on-premise spare capacity– Measure and manage service levels consistently across on-premise and
cloud infrastructure– Improve quality of service with scalable infrastructure and higher
availability
• Adapt quickly to new demands– Add capacity economically in the cloud as you grow– Scale quickly to meet seasonal or event-related demand spikes
– Respond quickly to competitive initiatives or new customer requirements
• Accelerate innovation– Reduce time to market with streamlined application development,
testing, provisioning, and deployment on compatible cloud infrastructure– Free IT resources from rewriting applications for the cloud, so they can
contribute real business value
WHAT IS HOLDINGSMBS BACK?
Barriers to Cloud Adoption
Source: Cisco IBSG
N = 510
Reasons for Not Buying Cloud ServicesAmong SMBs <1000 Employees
Security concerns are the barrier to uptake
Barriers to Cloud Adoption
We don’t have the resources to get people trained
We don’t have the resources to
implement new technologies and
applications
We have resources but just haven’t had
the time
52%60% 57%
BUT…. SMBS ARE MOVING FORWARD……
Growth of Cloud Services
60% of the SMB market has adopted or will adopt Cloud services in the next 12 months…
Source: EarthLink Survey conducted by AV&Co. 2012
The College Network
• Business Challenges– Small IT team – Spent more time troubleshooting issues
than solving business problems– Needed DR plan, had too many outages
• Business Benefits– Avoided $200-300K of CAPEX– A business continuity structure to
ensure systems are always on
– Gained productivity - employees more efficient, processes easier, data availability higher and better customer satisfaction
– Refocused IT resources to bring greater value to the business while EarthLink maintains and manages their infrastructure
“With online learning, our IT environment is very important, if the systems aren’t available, then our customers don’t have access to their course materials.”
Ryan Sallee, CIO
Ciao Bella
• Business Challenges– Aging Servers, slow performance on
mission-critical applications– Unreliable email provider, frequent
outages– No dedicated IT staff– Controller spent too much time
troubleshooting IT infrastructure
• Business Benefits– Avoided $80K of CAPEX– Improved application performance– Increased security– Reliable email service– Eliminated need for local maintenance
contracts– Allows controller to focus on his duties
instead of trouble shooting IT– Business continuity
•
• The Solution– All servers and applications on
Cloud Hosting platform in EarthLink Data Center
– Migrated entire NJ data center to EarthLink
“We needed a total refresh. Our newest server was eight years old.”
Bob Serchuk, Controller, Ciao Bella
Business Continuity in Action
• Super Storm Sandy– Super storm Sandy hits NJ in
October 2012– Two–week power outage at
NJ headquarters
• Ciao Bella stays in business– Servers/applications and email
stayed fully operational in EarthLink Data Center
– Nationwide sales team able to submit orders for production in Oregon
– Distribution centers able toship & invoice orders
“If we didn’t move to cloud services, we would have been out of business
during the hurricane.”
Bob Serchuk, Controller, Ciao Bella
Cloud Use
+39%
+45%
+53%
+54%
+54%
+66%
+95%
+95%
12%
9%
11%
7%
15%
10%
12%
8%
10%
6%
16%
10%
24%
13%
33%
17%
HR
E-Commerce
CRM
Billing &Accounting
Delivery Management
Inventory Management
Third-PartyData
ProductDesign
N=3,000 Currently 2-3 years
Source: Microsoft Operator Channels
Cloud Use
+92%
+106%
+111%
+131%
+73%
+64%
+110%
+111%
22%
12%
47%
23%
49%
22%
54%
23%
13%
8%
65%
40%
35%
17%
45%
21%
Marketing
Email*
Webconferencing*
File Sharing*
Project Management
IM*
Online Backup/DB*
Voice Communication*
N=3,000*Include free & paid services
Currently 2-3 years
Source: Microsoft Operator Channels
Current/Future Use Of SaaS & Managed Infra. Services
SMB Adoption of Cloud Services
Source: Cisco IBSG
Ba
sic
Se
rvic
es
Em
erg
ing
Ma
na
ged
S
erv
ice
s
Em
erg
ing
Clo
ud
/ A
pp
lica
tion
S
erv
ice
sSignificant upside / “Pure IaaS” has lowest adoption
Cloud Support is of Paramount Importance
Would you prefer to purchase Cloud Services from your current provider of Internet Access Services, or from a different provider?
Source: Cisco IBSG SMB Service Delivery Survey, 2012
Prefer to Purchase Cloud Services from Current Internet Access Provider
If the Internet Access Services that your company currently uses were unable to effectively support the use of Cloud Services, how likely would you be to switch to another provider that could offer Internet Access Services that were optimized for Cloud Services (e.g., quality of service, SLAs)?
Willingness to Switch Internet Access Provider for Better Cloud Support
Sample Size = 761
SMB Cloud Drivers
Source: Cisco IBSG
Increase Interest in Buying Cloud ServicesAmong SMBs <1000 Employees
Assets to Consider for Cloud Services…
Source: Cisco IBSG SMB Service Delivery Survey
Potential Differentiation with Network assets
Criteria When Choosing a Cloud Provider Among SMBs <1000 Employees
It’s YOUR Move…
Don’t GetLeft Behind…
