application hosting – Page 15 – Cooper Mann Consulting

February 25, 2014

Turning a Product or Service into a Solution: the Value Add of a Reseller

There is quite a bit of chatter on the web and among IT resellers about how opportunities to serve business customers are diminishing, yet business adoption of cloud computing, managed services, and mobile technologies is growing tremendously. It seems that use of technology is increasing, but the opportunity for “traditional” IT resellers and channel partners to make money by selling IT-related products and services is diminishing. This is not new, and is simply a finer form of the problem that has been revealing itself for years. In order to provide value, suppliers must provide businesses with solutions to business problems rather than just trying to sell them products and services with a hefty profit margin.

Whether it is a physical item like a computer or an intangible item like consulting services, businesses will buy if they see value in it. In the eyes of the consumer, the value is likely tied to far more than the item at hand; the value tracks to some expectation of business benefit to be achieved now and in the future. Businesses will pay for solutions to problems they experience more readily than they will pay for shiny things or big ideas, and it is this truth that many “value added” resellers tend to forget even though it is part of their business description.

For many years channel resellers have struggled with competitive elements that reduce revenue and profit potential on core products and services. When computer hardware prices dropped years ago and businesses found that going through distribution or direct to the manufacturer was often a more affordable path than buying through a reseller, the resellers re-trenched and began providing more value in terms of solution architecture, training and implementation support, and system management services. As the delivery chain for information technology continues to compress and more products and services are delivered direct-to-consumer, the pressure for resellers to discover their “value add” grows even more severe.

The days of simply reselling technology products to make a living are quickly coming to an end. There isn’t enough profit margin available to eek out a living just selling hardware and software, and it takes a large volume of subscribing customers to reach any significant revenue level by reselling commoditized cloud services. Yet the customers are there to be won if the offerings represent solutions to defined and recognized business problems – solutions that introduce quantifiable business benefit rather than creating more business problems – and where the reseller plays an integral part in making the selection a successful one for the customer.

While it may seem that business cloud computing, hosting services and SaaS solutions all come with easy-to-read instructions, do-it-yourself installation and painless upkeep, the truth is often very different. Some consumers realize this when they go shopping for solutions and come up with more questions than answers; some only figure it out after they have made the wrong decision. Either way, these businesses could use the help of a professional who will provide the added value of taking time to understand the problem to be solved, consider the variables which exist in the client organization, and clear a path which takes the customer business to a better place.

Cloud computing and SaaS may be changing HOW businesses purchase and use technology, but it is not changing WHY they do it. Businesses buy IT because they think it will solve a problem – they have expectations. The reseller can find and provide the added value: the reasoning (meeting expectation) for selecting the solution, why it is the right choice for the customer organization, and how they will ensure that the solution delivers the benefits described and expected.

Joanie Mann Bunny Feet Make Sense?

February 18, 2014

The Business Cloud: Hype versus Reality

There is no doubt that cloud and mobile computing models are driving technology adoption as well as changing the landscape of how consumers and businesses purchase and use IT. Accompanying any great shift – which in this case is fueled not simply by cloud technologies but by social computing – are the purveyors of propaganda and hype. Cloud computing and social media won’t make you popular, is not always safe or free, and it doesn’t whiten your teeth. What it can do is help businesses increase agility, collect and use information better and reduce the cost of change. There are many benefits to be achieved with cloud computing models, yet many providers continue to play on the hype rather taking the more difficult road of communicating how their solution actually solves real business problems.

Gartner research tracks this type of activity, producing reports offering assessments of the “maturity, business benefit and future direction of over 1,900 technologies”. In the Gartner 2011 Hype Cycle Special Report, entries were grouped into 76 different “Hype Cycles”, revealing the similar patterns of “over-enthusiasm, disillusionment, and eventual realism” that comes with every new technology or innovation. Hoping to provide guidance business IT decision makers, the report intends to inform businesses about when they should consider adopting technologies or IT models in order maximize the value of the approach.

Yet the market is bursting with definitions for “cloud computing”, and services providers offer their wares with varying levels of service and capability. It’s really difficult to compare one private cloud solution to another, as they are all seemingly offering the same value proposition described in the same language – and none of it really describing what the solution is, how the business takes the greatest advantage of it, and what disruption can be expected along the way. Layer on top of that confusion a big heap of expectation, and the belief that cloud computing technologies are somehow different from “real” on-premise systems in that they are not subject to the same potential for breakage, failure, or unexpected cost.

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For example, even though Amazon may use the term “elastic”, cloud computing does not automatically create a stretchy and eternally-dynamic resource that can grow without end. There are still limitations and costs associated with growth.

There is also a great deal of hype around applications and their performance in cloud environments. When a piece of software is poorly designed and crashes frequently on a local computer or network, it is just as likely that the application will perform poorly in the cloud. It’s simply a reality of software that even great products that are designed to run exactly the way they are being run don’t have a guarantee that nothing will ever go wrong. With cloud computing models, however, there may be a service provider working in the background to manage the systems and keep things running. You simply might not notice the failures and hiccups as much, but they are still there.

And not all cloud services mean everyone is sharing servers and infrastructure. While the term cloud generally applies to multiple scaled systems, it doesn’t mean that everyone shares everything and benefits from tremendous levels of redundancy and fault tolerance. In most cases, a solution described as a “private” cloud means that the service has been customized for the unique needs of the organization, and that there are resources of certain types allocated exclusively to the use of that customer. On the other hand, a private cloud may mean that the system elements are all contained within the business infrastructure, providing “cloud” type of services but being delivered from company resources. There are a wide variety of ways to describe these configurations and approaches, and quite a bit of inconsistency in use of terminology.

The best thing for a business owner to do now is to just ignore the term “cloud” and simply consider how the business might leverage resources from service providers to gain more IT capability at reduced costs, and how outsourcing certain technology needs allows a greater focus on internal innovation and improvement. Centralized management, improved security, disaster recovery, and increased mobility are all benefits to be realized with the right business cloud implementation. Just because it is to be an outsourced solution does not mean that the business organization should not still architect and understand the solution they will depend on. If this level of participation and understanding is not in place, the solution is unlikely to deliver the resulting benefits expected and hoped for.

Outsourced IT service, remote access and server-based computing aren’t new concepts. It still requires using common sense and reasoning when considering any change in business technology and the innovative application of IT in a business – this cannot be outsourced. When it comes to cloud computing… to put it bluntly, just avoid the hype and stay away from unrealistic marketing and sales messaging. If it sounds too good to be true… it probably is. Technology hasn’t come that far.

Joanie Mann Bunny Feet Make Sense?

February 11, 2014

Migrating Business Data to the Cloud

When businesses elect to have their desktop applications hosted in the cloud with a hosting service provider, they are also electing to have their data hosted with the provider. This point is not always obvious to non-technical users and those unfamiliar with the hosted application concept. Many business owners have adopted an online or hosted application solution and then realized after-the-fact that their data was no longer present on their computer. At least, no current data was present, and it was quite a surprise the day they wanted some information but could not get it because they were not connected to the Internet at the time. An important thing to remember, and the essential factor in measuring risk associated with use of cloud services and hosted solutions, is that adopting online applications in almost any form means that the data associated with (and possibly even data remotely associated with) the application will also migrate to the cloud.

Migrating on-premises servers – and the applications and data residing on them – to the cloud makes sense for many businesses. Particularly as network and internet threats increase in number and as system vulnerabilities are more frequently introduced with remote and mobile access technologies, cloud solutions can significantly assist a business in mitigating the risks of being connected. Yet business owners and IT managers must be diligent in terms of understanding the measures their service providers take to protect and preserve as confidential the customer’s business data. And it becomes more than essential that any and all tools or services implemented be part of a strictly controlled information management and data protection plan.

Where applications are simply interfaces and logic; the value for a business is in the data used by the applications – data containing information about the company, how and with whom it does business, and how it makes money. It is critical that the business consider how and where users need access to applications and data, so that any cloud deployment does not wind up hindering productivity rather than facilitating it to a greater level. It is when the user becomes disenfranchised, unable to perform their work due to lack of access to information or tools, that “shadow IT” deployments appear, and data sharing solutions are introduced outside of the governance of management or IT.

The vast number of offerings for hosting applications and managing business data in the cloud makes finding and implementing the right business solutions a complicated and often frustrating process. Even large providers that specialize in delivering from a menu of business cloud solutions often forget that their target customers may not be particularly tech-savvy, and will fail to recognize the nuances in service delivery or protection that could make big differences to the business down the line – like in the case of a system failure or outage.

Among the keys to a successful cloud solution deployment, particularly when critical and frequently used applications and data are to be migrated off-premises, is a thorough understanding of how users currently work with the tools provided, ensuring that processes and utilization can be fully adapted to the new IT model.

As long as users are able to retain their productivity and efficiency, and when improvements in workflows and information access become additional benefits, the security and protection of the business data is more likely, as users will feel less compelled to find alternative and less secure means for making the business data available from the cloud. You may want to migrate your business data to the cloud, but you don’t want your data to migrate further than you can reach.

Joanie Mann Bunny Feet Make Sense?

January 6, 2014

Security and Users: Change is the Only Constant

Managing user accounts and access to business IT assets is challenging, particularly as cloud and social computing models introduce new wrinkles in security and identity management. Information has become “mobile” along with the users accessing it, yet management of user behavior is even more complicated that trying to manage a digital resource.

If you look at the history of security breaches, you’ll find that many of them started with a user making a mistake – like losing a laptop or clicking on a phishing email, downloading bad software, or forgetting to report an employee termination to the IT dept – something which inadvertently created a vulnerability that could be exploited. It’s tough to stop breaches because there are so many possible ways for them to happen.

If most security breaches start with a user mistake, then IT departments have their hands full because users aren’t static, unchanging objects to monitor and manage. Users change, sometimes a lot. It is this constant change which undermines the ability for some IT departments to meet the demand to adequately secure company information systems and data. Now is the time to take control of user security and identity management, creating automation and controls to protect business assets in a constantly evolving environment.

It is not simply employee turnover that challenges security management. Certainly, IT departments have been dealing with user account creation and termination for a long time. And sure, users have sometimes been promoted and demoted, resulting in the requirement for IT to increase or perhaps decrease access to information and applications. These are normal and expected activities for a business IT department. Unfortunately, IT often doesn’t hear about the user’s change in status. An account isn’t disabled, access isn’t restricted, and the system is left vulnerable.

Just to pile on, think about what happens when a user is more than just a single system user. It may be manageable when where a single identity and set of credentials governs their access to applications and information. But the proliferation of web-based services and SaaS solutions has made it commonplace for users to have multiple applications and services available to them, each with their own approaches to identity management.

For even a small business IT department, the security of all of these access points and applications must be managed and monitored – no small task when the department may not even be aware that the solution is in use. It is not unusual for file sharing, data sync, or other applications to be implemented in businesses without the knowledge or participation of the IT department. Actually, many services attract users due to their simplicity and ease of use, leveraging the fact that they can be deployed without the “assistance” of IT.

Users are becoming increasingly mobile, accessing information and applications from public and private locations while using any number of possible mobile devices. Vulnerabilities which may exist in public networks and the increased potential for device loss or theft are high on the list of concerns of IT departments managing remote and mobile user access. Mobility is driving many changes in how information technology and access to systems is provided to users, and it is changing user demands for what they should be able to easily accomplish while being mobile.

Businesses need to recognize that their continued existence may rely on keeping their information systems and assets safe and secure. Disaster recovery and business continuity applies not only to loss of physical systems, but also to losses of various forms due to data breach. The disaster recovery and continuity plan (you have one, right?) should not only address situations after they happen; planning by definition is proactive. It is not enough to have a plan to recover from loss or failure; the business must actively engage in activities which will prevent loss and reduce vulnerability.

Part of this plan necessarily centers on managing users and user identities, ensuring that the company knows about all access or user accounts involved and employs strict processes and guidelines for making sure they are constantly up to date and have the authority to do what they’re trying to do. In short, the plan must also be a plan for change, providing change management processes to guide the business as the evolution of information technology and the dynamics of user interaction continue to change.

jmbunnyfeet Make Sense?

December 24, 2013

Happy Holidays from CooperMann

Ninjabread cookies in the kitchen, an appearance by the Christmas Elk, and Minty Fresh (fresh cat, not canned) looking for Frangos all clearly indicate that the holiday season is here. 2013 has been an eventful year – some would say it was “fraught with peril” while others see opportunity in change. It’s all a matter of perspective – pursuing goals and taking action rather than resting on ones’ laurels and trying to wait it out. This cloud stuff isn’t going away.

With technology and social computing adoption increasing at almost alarming rates, I can’t wait to see how 2014 goes! This certainly isn’t a time for the tech-timid, as it appears as though the nerds and geeks do rule the world (aren’t we all a little nerdly, really?).

I hope you and yours have a wonderful season.

Cheers

Read the Best of CooperMann.com from 2013

December 20, 2013

Accounting, Technology and Small Business – The Best of 2013 from CooperMann

It has been an eventful year, hasn’t it? With the NSA lurking about collecting data, innovative new approaches to information and identity theft emerging almost daily, and complete turmoil in the IT services industry challenging trusted sales and distribution models, most of us have simply become numb to the noise. Information technology is evolving at an increasingly rapid pace and the way people and businesses interact with and use technology is being forced to change along with it. It’s starting to become almost, weirdly, natural.

Much of this change can be attributed to “The Cloud”, which is not a thing or a place. Cloud has become the term which applies to just about anything having anything to do with the Internet. For technology “purists”, cloud means something fairly specific, but for normal people (no offense to the nerds and geeks, but you know what I mean), cloud applies to pretty much anything accessible via the Internet. Photos back up to “the cloud”; music gets stored in “the cloud”, websites are hosted in “the cloud”; businesses run their applications in “the cloud”, and you can do darned near anything you need (or want) to with a phone. The cloud could be some guy’s server in his basement, or it could be a sophisticated network of systems housed in secure facilities around the globe. They both qualify, sort of. The point is that mobility, Internet services, subscription access to technology, and social computing are changing how people view technology – resulting with changes not simply in how IT is purchased, but in how IT is used and applied to daily life.

There are, however, some things that do not change even if the working environment does. The accounting profession, for example, is undergoing a great deal of change, and much of it fueled by the advancements in technology and social computing. But accounting fundamentals – the “truth of debits and credits” and the good old accounting equation – remain. The basics of running a business are also unchanged, even as methods of doing business evolve and globalization of markets continues. Business fundamentals – fiscal responsibility, cash and growth management, and focus on value and sustainability – are as necessary now as every before.

With all this change and IT “advancement”, there have certainly been impacts to how and where we work. But the more things change, the more they remain the same. Good business generates goodwill and more business – that doesn’t change – and bad news still tends to spread faster than good news (much faster, given social platforms that are designed to spread the word far and wide). And when it comes down to the fundamentals – the basic and essential foundations supporting building, operating, and accounting for business – we generally find that they remain constant even as the environment in which they exist experiences change.

Make Sense?

Here are the top 20 ranked posts for 2013 from CooperMann.com

Posts by category – with Accounting Professionals, QuickBooks Hosting, QuickBooks Software, and Small Business being the top categories with ranking articles.

ACCOUNTING PROFESSIONALS

Small Business Owner to Accountant: Make Accounting Valuable to ME

Accounting Professionals, You’re right – your clients don’t care about the numbers.

The Language of Accounting: Disconnect between Accountants and Bookkeepers

Why Accountants and Bookkeepers Use the Cloud

Bookkeeping and Benchmarks – Getting the Numbers Right

In Bookkeeping, Accounting, and Information Technology: The Value of Outsourcing

Re-defining the role of the accountant, or going back to the good old days?

The Collaborative Online Model for Small Business Accounting Professionals

Remote access to client bookkeeping comes in many forms because clients come in many forms

QUICKBOOKS AND BUSINESS APPLICATION HOSTING

What Small Businesses Need To Know about QuickBooks and the Cloud