Showing posts with label SME. Show all posts
Showing posts with label SME. Show all posts

Wednesday, June 9, 2010

U.S. Small and Medium Businesses to Spend $32 Billion on Voice and Data in 2010

U.S. small and mid-sized businesses will be spending about $32 billion in 2010 on voice and data services, according to Analysys Mason.

Tuesday, February 12, 2008

SMEs Ripe for IP Managed Services, Says Nortel

Fifty percent of SMBs surveyed have voice networks three or more years old, and despite the fact that nearly half characterize themselves as "early adopters" or "on the leading edge of new telecommunications technology," only 40 percent have actually implemented VoIP or any IP-based mobile convergence solution.

"The research clearly indicates a great opportunity for service providers to target SMEs," says Alf deCardenas, Nortel general manager.

The research conducted by Ronin Corporation involved surveys of some 900 SME and enterprise decision makers across the United States, France and the United Kingdom.

Among other findings, the research found that SMEs are more likely to go to service providers than resellers for voice hardware and Internet services. The ability to make phone calls over WiFi and cellular networks using a dual-mode phone is the service SMBs are most likely to consider for implementation, followed by Web services like click-to-connect and converged desktop applications that allow them to easily control calls from any cellular phone using a laptop application.

Sunday, January 27, 2008

TowerStream: 8 Mbps for $1,000 a Month

Wireless has been the perennial favorite for believers in facilities-based access competition to the entrenched telephone and cable companies. Some 25 years ago, proponents argued that Multichannel Multipoint Distribution Systems (MMDS) based on 2.5 GHz spectrum were going to be the way new video entertainment providers would gain a foothold.

That effort failed. Similar spectrum then was touted by the likes of Winstar, Teligent and others as a solution for high-speed access in the business market. The effort failed.

Much spectrum then was acquired by firms such as Sprint Nextel, BellSouth and MCI and spend years essentially languishing. Now Clearwire and Sprint say the former MMDS spectrum will be the foundation for WiMAX.

We shall see. A smaller new company, Towerstream Corp., is selling 8 Mbps broadband connections for $1,000 a month in eight markets, and currently plans to operate in 20 cities within two years.

In its Seattle market, starting February 1, new customers will be able to buy 3 Mbps connections bandwidth for $499 a month, with free installation. Towerstream offers businesses a range of bandwidth options including T1, T3, 100 and 1000 Mbps connections

The company has established networks in Los Angeles, Miami, Chicago, Seattle, the San Francisco Bay Area, and the greater Boston, Providence and Newport, R.I.

Using WiMAX technology, the company can “light" a city with just a few antennas. Its New York City network uses four antennas, including one on the Empire State Building.

TowerStream undercuts competitor prices for a T1 line by 50 percent or better. The small antennas that the company locates at the customers’ premises are installed by contract DISH or DirecTV installers.

Provisioning intervals normally are two or three days, compared with three to six weeks for a T1 line from a telephone company or competitive local exchange carrier.

Mid-band speeds in the 8 Mbps to 10 Mbps range seem to be the "sweet spot."

TowerStream appears to be using both telesales and direct sales approaches. It is said to have a 180-seat telemarketing center and is in the midst of expanding its sales force to 160 people, according to Morgan Joseph analysts, who say the company won 27 contracts in eight days, on the strength of 58 proposals. The company appears to have 100 or so direct sales reps trained and ready to call on prospects.

If history is any guide the company should enjoy at least modest success. By avoiding the mass market, it stays out of the way of 3G and other 4G networks aimed at consumers and small business. That's a strategy that lots of other wireless access providers also use.

So far, however, no single entity has managed to build a big business on the backs of fixed wireless broadband in the small business, medium-sized business or enterprise markets. And it may be that the path to success is precisely to operate as a niche provider, in high-density markets, without getting grandiose. That's typically where operators have stumbled in the past. But we'll have to watch and see.

In many cases the business case rests on prosaic concerns. LMDS operators found they had trouble getting access to rooftops once landlords decided they were sitting on a gold mine. It wasn't, but the incremental real estate access charges were enough to kill the business case.

Then there is the availability of riser and conduit space, access to it and the cost of new cabling. Assuming those sorts of issues can be managed, TowerStream might have a shot, at least in some markets, such as New York.

Bandwidth in the 8 Mbps to 10 Mbps range is a bit more than the 4 Mbps to 6 Mbps mid-band Ethernet service some other providers are finding attractive.

Monday, December 24, 2007

SME Smart Phone App Gap


As you might expect, 65 percent of heavy smart phone-using small and medium-sized organization associates say access to corporate applications and data anywhere and anytime would most benefit them in their work roles, according to a survey undertaken by the Yankee Group. Smart phone-centric employees generally have jobs that require more remote working and therefore find some value in smart phone technology.

Excluding corporate email, the most-used applications by employees who have smart phones are Web browsing, business
productivity suites such as Microsoft Office, customer relationship management, project management and corporate instant messaging.

However, no more than a quarter of SME employees are using these applications on their smart phone in the office. Also, in most cases, no more than a handful of SME employees are using these smart phone-enabled applications outside the office in work-related venues such as airports and hotels.

Considering only those SME associates whose primary mobile device is a smart phone, material requirements planning and supply chain management applications are top applications.

However, none of the SME employees in the Yankee Group survey in this segment use MRP and SCM applications on their smart phones regardless of workplace venue.

Both MRP and SCM applications are valuable tools for operations-based employees to track flows of raw materials, pre-finished goods and finished goods at various stages in the supply chain and manufacturing process. Non-office use of these applications is stymied today by a lack of mobile-enabled solutions, Yankee Group researchers argue.

Things might be improving. The Apple iPhone helps with Web browsing. User experience for productivity apps is hampered by small screens, formatting issues and device processing power. Salesforce.com helps with CRM, but the need to support multiple IM clients is cumbersome.

The point, Yankee Group analysts say, is that there is lots of room for further refinement of user experience that could boost use of mobile apps by small and mid-sized business associates.

Friday, December 21, 2007

Cable Targets Small Business


The coming year is when we see just how formidable U.S. cable companies will be in the small business communications market. To be sure, many veterans of the business communications market don't think cable will much of a factor in the enterprise market. Maybe not. That's not where cable companies are going to focus, which is the small business customer.

Comcast Corp. apparently plans to spend $3 billion to sign up 20 percent of small companies in its territories by 2012. Time Warner Cable Inc. is also pursuing businesses with fewer than 1,000 employees. And Cox Enterprises has been signing up lots of business customers for years.

Phone companies dominate the $25 billion annual market, which can generate profit margins about 10 percent higher than services offered to consumers or enterprises.

On the other hand, large telcos don't generate nearly as much money from phone lines and calling as they used to. In fact, small business lines provide only about five percent of at&t's revenue these days.

Cable providers, with less than five percent of the small business market, may seize one-third by 2012, saus Sanjeev Aggarwal, AMI-Partners VP.

So two things are going to happen. In some cases telcos will cut their own prices to match the discounts cablers are expected to offer. They'll keep share but sacrifice margins. Or, telcos can simply accept the loss of some share to maintain margins for a while longer.

Anticipating the onslaught, Verizon and at&t seem to be prepared to cut prices and bundle services to keep small-business customers who sign up on contracts.

Verizon offers 20 percent off Internet access for companies taking unlimited local and long-distance calling plans for one year. Customers buying voice services from at&t pay roughly 40 percent less with an annual Internet service contract.

About 54 percent of AT&T's small and mid-sized-business customers in areas where cable may compete have might already have signed new contracts, some observers suggest.

Friday, October 26, 2007

Comcast Revs Up SME Effort


Comcast is kicking its business services initiative into higher gear. "Our total commercial revenue passed $100 million for the first time in the third quarter," says Steve Burke, Comcast COO. "We have hired and trained 750 business salespeople and trained 1,200 technicians to install and service business customers."

"Each of our 29 operating regions have now introduced Comcast business class as our commercial brand, supporting data, voice and television," he says. It will take some time for Comcast to iron out all the wrinkles, just as it took some time to fine tune the digital voice effort.

Some of you will remember a few stumbles Cisco took when it got into the IP communications business. The point is that as capable as they are, it will take some time before cable shows its ultimate skill. But it will.

Thursday, October 18, 2007

Covad and McAfee Partner


Make a note of this: Covad Communications and McAfee are partnering to deliver bundled services for small-business customers. The companies say Covad will bundle McAfee Total Protection for Small Business services with its broadband products in a new offering called Business Essentials.

Here's why you need to take note: retailers in the telecom space are used to selling services on a monthly recurring fee model. So the next big shift in business model is to start selling other services in the application realm that are delivered as a service, not a product, not a "box" or "device." Up to this point, most retail points of contact have had difficulty whenver they have been asked to behave in ways different from past behavior.

Data equipment resellers often have stumbled when asked to sell recurring fee telecom services. Telecom resellers have flopped at selling hosted PBX services. Interconnect dealers have not been able to sell Cisco router-based services.

Increasingly, hosted applications, sold just like telecom services, are going to be the way some legacy retailers make a jump "up the value stack" into applications, in a way that is culturally comfortable. This is a big deal and Covad is on the leading edge. Sure, you might argue, security services are a natural, and are sold by cable companies and telcos to consumer buyers.

That's true. What's more interesting here is the move to create a new services model extending beyond connectivity services and up into the applications layer, in a way that makes sense for the retail sales partners. The next step is further in the direction of services for the desktop and back office.

This is going to be a big deal.

Monday, October 1, 2007

Time Warner Fires Opening Salvo


Though Comcast won't start firing its guns until early 2008, the U.S. cable industry has begun its assault on small business customer accounts. Time Warner Cable has rolled out a phone service for small and medium-size businesses in Central Ohio.

Time Warner introduced its Business Class phone service in the Columbus area Sept. 21.

A Time Warner analysis estimated there is a $40 billion market for business phone service in the company's eight-state service area, $9 billion of which is made up of small and mid-size companies, according to Ted Stine, Time Warner VP.

Time Warner first is targeting its existing business customers in the region who already subscribe to the company's Internet and cable video services. Companies that sign up for phone service will then get a discount on all their services. Once it has saturated that segment, Time Warner obviously will start cold calling prospects who have not existing business relationship with the company.

The biggest share shift should occur in the small business segment (four and five access lines, especially), though most observers would define the segment as "four to eight lines."

Saturday, June 16, 2007

Not Convinced, Eh?

Canadian small and mid-sized businesses remain more than a little unsure about the wisdom of out-tasking their information and communication systems and services, say researchers at The Yankee Group.

Wednesday, June 13, 2007

Healthy SME Communications Spending Forecast

The typically highly reliable Knecko Burney, owner of Compass Intelligence, predicts that U.S. spending for nearly every category of small and mid-sized business spending for information technology and communications will be headed north for the next five years. About the only things SMEs will be spending less on are PCs, truly a commodity, as well as personnel. Software, communications, network infrastructure and support all are headed north at about an eight to 10 percent rate over the forecast period.

(By the way, you can just click on any image in any post on this site and the larger version of the graphic will appear...just in case you are reaching for your magnifying glass to read the numbers!)

"Tokens" are the New "FLOPS," "MIPS" or "Gbps"

Modern computing has some virtually-universal reference metrics. For Gemini 1.5 and other large language models, tokens are a basic measure...