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Grow your business on a budget with the cloud
February 22, 2012
Starting up is undoubtedly the hardest part of any business. Finding funding, scoring that all-important first client and managing on meagre cashflow are all difficult but important steps for any new enterprise.
But after a while - assuming you’re successful - you’ll be established with a stable client base. You might even be turning a profit. What’s next? If you’re ready for another challenge, it could be time to scale!
Reduce costs with the cloud
In the past, scaling often meant buying costly new equipment, paying a small fortune in software licences and employing a dedicated IT staff to manage it all. Nowadays, with modern cloud computing becoming more widespread, many of those costs have been eliminated. This means scaling your business - although still not without risk - is significantly more achievable.
Google Apps, for example, can take the place of your traditional Microsoft Office desktop suite, offering web-based email, calendar and productivity tools. Best of all, Google Apps is completely free for companies with up to ten employees.
Cloud software can pay dividends in other ways too. Without hefty applications weighing down your office computers (all you need is a web browser) you can do without expensive top-of-the-line computers. And because maintenance is managed by the cloud software provider, you don’t need the same level of in-house IT support.
Cloud computing to try for yourself
Cloud software is becoming so pervasive that new services are springing up every day to offer a cheap, hassle-free alternative to desktop software. Some of the more successful cloud software services are:
- Salesforce. A powerful-as-can-be customer relationship management suite that can scale from a micro-business all the way up to a large corporate. Salesforce has rapidly become the industry standard and sports so many add-ons that it can run your entire business.
Visit the Salesforce website >
- ZenDesk. This is a cloud-based helpdesk system which allows your employees to raise IT issues and interact with your support team. You can also populate it with help articles, tutorials and video content to help your staff help themselves
Visit the ZenDesk website >
- Dropbox. A fantastic tool for keeping yourself and your team in sync, Dropbox is like the shared network drives of old, but accessible absolutely anywhere. That includes computers, tablets and smartphones. The basic version is completely free!
Visit the Dropbox website >
- Crunch. There are a number of cloud accounting tools to help with your bookkeeping. One example is Crunch, my own company. It’s aimed at freelancers and micro-businesses and helps with all your invoicing, bookkeeping and expenses before submitting your tax return. It also shows your real-time tax liability and provides support from accountants.
Visit the Crunch website >
Which cloud computing tools does your business rely on? Have they made it easier for your company to grow?
- Cloud computing services to get you started
- Are you ready for cloud computing?
- Is cloud computing green computing?
Darren Fell is MD at Crunch.
Survey reveals small business owners' optimism about 2012
February 15, 2012
Our recent survey attracted almost 700 respondents – all hoping to win a Dell Vostro laptop. Many congratulations to the lucky winner — Cyd Smith of C S Accounting Services in Tyne & Wear.
This was a competition with strings attached. We asked you to share your views on the current business climate and about your plans for 2012. And the results paint a very interesting picture.
Today’s small firms, it seems, have a positive outlook for 2012.
Top-line results reveal that almost half of small businesses think things will improve in 2012, one third are planning to invest in new job roles and cloud computing technology, the majority are planning to spend more on marketing and just three per cent expect to make redundancies this year.
But what’s fascinating is that small firms are doing this by themselves. They say that they don’t expect government help and most are not looking to borrow money from their banks.
Small business owners speak out
Let’s take a look at the results. The first thing to note is that 82 per cent of respondents describe themselves as SMEs or sole traders with a turnover of less than £2 million. Respondents are fairly evenly scattered from across the UK.
Crucially, most of our respondents (63 per cent) are owners, founders or managing directors. A further 22 per cent describe themselves as either directors or managers. So these findings come straight from the horse’s mouth.
A number of questions were designed to take the temperature of business confidence among small firms. And the results are encouraging. Only three per cent, for instance, say they expect to make redundancies this year. Ten per cent are unsure. But the vast majority — 87 per cent — do not expect to have to lay off staff.
Another positive indicator concerns marketing spend. 51 per cent of respondents expect to spend more on marketing in 2012. Just nine per cent plan to cut their marketing budgets.
Next we asked — “In general, how do you view the economic outlook for your business in 2012 compared to 2011?” Only 16 per cent think things will be worse. Almost half (48 per cent) think things will be better.
Support for small firms
The thorny question of support for small firms shows that entrepreneurs are determined to succeed, with or without help from government or the banks. Two-thirds of respondents (67 per cent) say they won’t be asking their banks for finance. And only five per cent plan to approach their banks for new funding this year.
What about government support? We asked respondents to choose the statement that best matched their view on government support. These are the results:
- 45 per cent agree that “we do not expect the government to support our business and sector in 2012”.
- 28 per cent agree that “government is unlikely to do enough to support our business and sector in 2012”.
- 22 per cent agree that “the government will do what it can in the current economic climate”.
- Just five per cent agree that “private businesses should work to offer support rather than the government”.
Investment plans
Small business owners are fairly cautious about recruiting new staff, although one third (34 per cent) say they are planning to invest in new job roles in 2012. More respondents, however, are sure that they will not be creating new positions (44 per cent).
The number of respondents planning to employ young people via training schemes, internships and apprenticeships is a little underwhelming. A fifth of respondents say they plan to take on new young recruits (21 per cent) but most are either unsure (12 per cent), considering it (24 per cent), or definitely not recruiting young people (43 per cent).
The majority of SME respondents (60 per cent) plan to invest in technology in 2012. And the message is loud and clear — cloud computing, virtualisation, outsourcing IT and mobile working are likely to get the lion’s share of investment.
Overseas expansion is less significant. The survey shows that 19 per cent of respondents are already trading overseas. But most respondents only trade in the UK and plan to keep it that way (62 per cent). Just nine per cent are planning to start trading overseas in 2012.
Optimism for 2012
Overall, this survey highlights a good deal of optimism among small businesses as they face the year ahead. We are planning to conduct another survey later in 2012. Please take the time to respond and help us to give UK small business owners a voice.
Here's what happens in an internet minute
February 15, 2012
It’s a mistake to stop and think about the internet for too long. You’ll struggle to grasp the sheer size of the thing, its mind-boggling complexity and the rate at which it changes.
Still, it the internet is fascinating. And that’s why this infographic from Intel caught our eye. It gives you some idea of what happens online in a single minute.
While you’ve been reading this, a score of people have had their identities stolen, hundreds have signed up to social network LinkedIn and there have been 100,000 new Tweets. Bonkers.
Alt text: Infographic – what happens in an internet minute
Just to put some of that into context:
- The 639,800GB of data transferred is equivalent to sending about 135,000 full-length DVD films across the internet.
- Those 6 million Facebook views sound like an awful lot – but then you have to remember that worldwide, one in every nine people has a Facebook account.
- The number of internet-connected devices is set to soar over the next few years as cars, TVs and even kitchen appliances all get their own connections.
While there perhaps aren’t any hard and fast conclusions for your business to draw from this, it certainly highlights some of the opportunities out there. With 1,300 new mobile internet users every minute, having a mobile website makes sense. And with 1.3 million videos watched, perhaps your business should have a YouTube channel.
You know, I reckon this internet thing might just be here to stay...
- Social media – not as new as you think?
- Internet speed checker – test your connection
- Tech trends to watch in 2012
I need a new computer with Windows 98
February 13, 2012
My business provides IT support to its clients. And increasingly, IT support isn’t just technology support; it’s business support. That’s because using IT as a strategic asset can set your company apart from its competitors, bringing you more sales and boosting your profits.
That’s the mantra I stick by and use as the yardstick for all my conversations with clients. Good IT will result in good business.
Not quite a straightforward upgrade
So, you can imagine my surprise when a new enquiry came in from someone who said they needed to update their IT equipment. On the surface it was a straightforward job: new computers, a server and updated software.
However, it turned out not to be quite as simple as I first thought.
Things took an unexpected turn when this potential client told me that the new computers had to run Windows 98. Yes, Windows 98, which was released nearly 14 years ago. It’s so old that Microsoft even stopped providing support for it in 2006.
When I pressed them on this, the conversation went something like this:
Me: “Why do you need to run Windows 98?”
Potential customer: “Well, we have this invoicing software that was set up for us years ago.”
Me: “Ok...”
Potential customer: “The guy who set it up doesn’t work here anymore.”
Me: “I think I see where this is going.”
Potential customer: “It only works on Windows 98 computers. We have a Windows XP machine but that won’t run the software, and our Windows 98 machines are dropping like flies.”
Me [after thinking for a moment]: “I think the key issue here is to look at the software and sort it out first, rather than try to just keep Windows 98 running indefinitely.”
Bespoke software can cause problems
This business was facing is an issue I see all too often. That’s software, written or installed by an individual (not an off the shelf product) which is ‘bespoke’.
It’s great for the first year or two, while the person that installed it is around and able to help. But 15 years later (yes, they said they’ve been using it for about 15 years!) it becomes a problem because the installer or designer is no longer around.
My plan in this case is to check out the software properly before making any further suggestions. I guess it’s probably some kind of customised spreadsheet or perhaps a bespoke database.
However, the key point is that this software is hindering the company’s ability to use IT effectively. It’s stopping them from being efficient, productive and responsive to new orders.
The lesson for us all is clear. It’s vital to get advice from IT professionals who understand your business and its needs both now and in the future.
Technical people are fantastic. They can do magic things to fix software or resuscitate a dying PC. But it’s my experience that they often fail to consider the needs of your business. When you’re looking at a big investment in new software and equipment, they are far more important.
- What to ask when choosing an IT support company
- How to avoid problems with software developers
- Do you really need custom software?
Craig Sharp is MD of Abussi.
Firms embrace the cloud, but are they leaving IT support to chance?
February 09, 2012
A recent IT Donut survey suggests that although 2012 could be the year smaller firms show real enthusiasm for cloud computing and mobile working, many businesses are neglecting an altogether more essential part of their business IT.
The business technology survey ran across the five Donut websites and was completed by 672 businesses, 82% of which classed themselves as ‘small’. Out of all respondents, 60% said they planned to invest in technology in 2012.
The cloud takes hold
The survey shows that the gradual shift of IT services to the internet via cloud computing will accelerate in 2012.Of the companies that said they plan to invest in technology, half said they’d be looking to adopt cloud technologies in some way.
Companies attracted by the cloud’s low up-front costs and innate flexibility face a growing choice of cloud computing options. Many are opting to shift applications like their accounting system to the cloud. Others have chosen to replace ageing in-house servers with internet-based cloud hosting.
Mobility breeds efficiency
Mobile working is set to be the other big winner of 2012. Of the companies planning to invest in technology, 49% said mobile working would be one of their priorities.
There may be a number of factors behind this. The continued growth in smart phone use, the adoption of tablet computers and the emergence of super-slim, light laptops (sometimes called ‘ultrabooks’) have certainly made mobile working more feasible.
But the benefits of mobile working feel particularly compelling this year. Going mobile can boost efficiency, a key aim for many firms in the current economic climate. What’s more, the Olympics have put flexible working in the news, with the government suggesting it could ease pressure on the capital’s transport network this summer.
What about business IT support?
Perhaps the survey’s most surprising finding is that just 8% of companies said they’re planning to invest in outsourced IT support. For firms which lack in-house IT expertise, a trusted IT support company can be a valuable asset, providing expert advice to ensure investments in new technologies - like the cloud – are made wisely.
What’s more, a good IT support company helps preserve business continuity, performing maintenance and fixing problems to prevent downtime which can cost thousands.
In a world where business IT is ever-changing and more vital than ever, having a trusted IT support company can give smaller firms a real competitive edge.
Related links from the IT Donut:
How hackers target your passwords
February 08, 2012
When you enter a gym’s locker room, there are hundreds of lockers. Each has its own combination lock. Without giving it too much thought, you open your locker using the combination only you know, which is the same combination you provided when you signed up at the gym.
Similarly, a password is a shared secret between a user and a service. When the user wants to connect to the service, they identify themselves with their username and prove that identity with the password.
The service checks the password. If it matches, the user is allowed to access the service.
We can think of the service as the locker, the username as the locker’s number and the password as the lock’s combination.
Problems occur, of course, if someone else has your combination. It could be that you use a very popular combination, or someone saw you using the same combination on your bag.
Alternatively, it could be that someone broke into the gym and saw the list of locks and combinations. Let’s take a look at these aspects in the virtual world.
How hackers break your passwords
On the internet, some passwords are more common than others. Hackers use lists of the most common passwords to increase their chance of guessing a user’s password quickly. The hacker tools used to guess these passwords are called crackers. Two types of crackers exist - online and offline:
- Online crackers use trial and error to break into a service, testing different passwords until the right one is found. The speed at which they can test passwords is limited by the speed at which the service accepts and handles requests. In many cases, online crackers can only try a few passwords because most services lock accounts after a certain number of incorrect passwords have been entered.
- Offline crackers are used when passwords are stolen from an online service, but are stored in a digested format. This means the service stores a mathematical transformation of the password rather than the password itself – it’s an extra security precaution. An offline cracker repeatedly chooses different passwords, transforms them to their digested format and compares them to the list. Offline crackers can run incredibly fast, depending on the power of the computer running the cracker.
To reduce the effectiveness of offline crackers, many services add a step to the process called salting. Using a salt, a different digest is created each time, even if the password is the same. So although salted passwords are not completely hack-proof, they’re much harder to guess.
How to secure passwords in your business
So, that’s how passwords get cracked. Now, how do you stop that happening to your business?
On an individual level, always use strong passwords – and don’t use the same password on different websites. Think about what information the password is protecting. You want a really strong one for your online banking, PayPal and other online services you consider sensitive.
Use a really strong password for your email too, as getting access here can allow a hacker to wreak havoc by resetting your passwords on lots of other sites.
In your business, it’s important to realise that you can’t trust your users to choose strong passwords themselves. If you give them the choice, they’ll simply choose weak passwords. In fact, two years ago a database containing 32 million passwords was leaked to the web. Analysis of these passwords showed that 20% of users chose the same passwords from a pool of 5,000 words.
It’s up to you – or your IT administrator - to keep the passwords secure. Here’s how
- Enforce strong password policies. Force passwords to have a minimum length, ban common passwords and require a mix of characters (digits, letters, uppercase, lowercase, etc).
- Make sure passwords are not transmitted in the clear. Passwords are vulnerable to interception if they’re transmitted across networks or the internet. Always use encryption, or use a technique that ensures the password itself never travels through the network.
- Don’t store passwords in plain text. Doing so means that if a hacker breaks into your systems, they can just grab and make off with your passwords. Salt and digest a password before storing to the database.
- Detect and block brute force attacks. Put obstacles in the way to stop online crackers trying lots of different passwords for user accounts. Use CAPTCHAs and restrict the number of times people can retry their passwords.
- Force people to change passwords regularly. Many businesses require users to change passwords every couple of months, or when they suspect an account has been compromised.
- Allow and encourage passphrases instead of passwords. That means using sentences instead of passwords. Although that may be longer, they’re easier to remember. And because they’re longer, they’re more difficult to break.
Implementing many of these precautions will require help from your IT staff or IT supplier. But if you’re going to maintain the security of your systems and website, it’s vital you think carefully about enforcing a strong password policy.
Noa Bar-Yosef is Senior Security Strategist at Imperva.
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