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Behind the Clouds - Unlocking Data Services for SMEs(AllAfrica Via Acquire Media NewsEdge) THE pivotal role, which small and medium scale enterprises (SMEs) play in economic development, has been globally acknowledged. By among others, driving job creation, poverty alleviation, social and economic integration, they shape the economic development trajectory of a country. In competitive markets such as Nigeria's, SMEs are constantly faced with numerous challenges ranging from competition with the market leaders to infrastructural deficits, and coping with government policy inconsistency. In as much as they are the widely-acclaimed missing link to self-sufficiency in basic consumer products and efficient service delivery, they are still faced with numerous hurdles that threaten their survival and sustainability. Analysts say that the SME sector currently employs over 60 per cent of Nigeria's labour force. This is why government should focus its attention on them by encouraging the growth of cottage industries, inculcating efficient management culture in existing small businesses and devising policy measures that are favourable for assimilating the informal sector into the mainstream economy. Two of the major factors limiting the growth of SMEs are funding and infrastructure. Because these businesses lack the resources controlled by their larger counterparts, the cost of purchasing and managing equipment can be quite prohibitive. Technology is also constantly evolving and can quickly become obsolete. There is a plethora of IT infrastructure, which claimed to be what the small business need to grow as well as reduce running costs, while enhancing employee productivity. These infrastructure do not come cheap and the small business, which is already overwhelmed with running the business against the already established market leaders, most times end up investing in technology hardware which they may not fully optimise. Cloud services reduce the complexities of IT hardware infrastructure, helping to channel savings to other profitable endeavour of the business. For instance, instead of investing in expensive storage hardware, a small business owner can make use of cloud services to change or enhance the internal computing system at no additional cost to the business, as against having to always buy the upgraded version of the storage hardware to manage redundant data, among other pressing needs. Cloud services to the rescue One critical service that can help SMEs acquire the necessary clout to manage their businesses efficiently and profitably is cloud services. Paul Bryce, Business Development Director, Node4 Limited, a company which offers Data Centre Solutions cloud services, said that one of the most important benefits of cloud computing is the extensive environment which it provides SMEs to compete against bigger companies in the market. Cloud computing or cloud services, is an internet-based computing system in which large groups of remote servers are networked to allow sharing of data-processing tasks, centralised storage and online access to computer services or resources. Data is usually safe and well protected. However, many small and medium scale companies are yet to fully realise the advantages that cloud solutions can provide. They usually begin with the simple email cloud solutions without realising that their emails are stored in the cloud, thereby giving them access to a small fraction of the benefits of cloud solution. Nevertheless, cloud services solution providers like EMC and Cisco can provide the most cost-effective, yet very efficient information technology infrastructure that is within the budget and reach of small businesses. Some other ICT companies like MTN have gone a step further to provide tailor-made cloud services solutions to SMEs in Nigeria, which are at par with EMC and Cisco services. The Cisco cloud service for instance, offers numerous benefits to SMEs. Benefits such as reduced operating and capital expenditure, pay-as-you-go cost structure, making them nimble and flexible, remote access and business expenditure, ease of implementation, high availability and creating an even playing field, enabling them to compete favourably with the market leaders. Whither cloud services in Nigeria? MTN Nigeria became the first telecommunications operator to offer a wide range of pre-paid cloud-based services designed to offer Human Resource Management, Customer Relations Management and other enterprise software over a secure internet connection, without any of the associated IT infrastructure costs being borne by the SME. After the service was unveiled in the market, Babatunde Osho, MTN's Enterprise Solutions Officer, said technology had become a key differentiator and an enabler for business and as such, offerings like the MTN Cloud Services could prove to be a critical success factor for SMEs due to the flexibility and pay-as-you-go cost structure. This service will also enable businesses increase their productivity and by implication, their profitability. Other cloud services being provided by MTN include, but not limited to, Sales Force Automation, Accounting and Finance, Virus and Spyware Protection, Firewall Protection, Browser Protection, Email Protection, among others. Some SMEs seek file sharing platforms that work like Google Drive and Dropbox; platforms which can be accessed from any part of the world. It is the aim of these companies to grow the business without the need for investing in new equipment or infrastructure that gets outdated easily; or to be burdened with physical IT infrastructure that requires regular maintenance and control. "With an on-demand infrastructure, SMEs can start with what they need today without worrying about tomorrow or the day after because the cloud can scale with them as they grow and as when needed," Bryce said. Are cloud services safe? Nonetheless, some small business owners are still sceptical about the safety and security of their data should they subscribe to a cloud service. Only recently, traditional media and social media were awash with news of leaked nude photographs of Hollywood stars, hacked from their iCloud accounts, a service hitherto thought to be very secure. The photographs were thought to be safe by iCloud subscribers until they were put in the public domain by hackers, thereby invading the privacy of the victims and causing them distress. Enterprises are however advised to engage the services of trusted cloud service providers. Cisco's cloud portfolio, for instance, transparently integrates three pillars of cloud computing: the Cisco Cloud Intelligent Network, Cisco Unified Data Centre and the Cisco Cloud Applications services. Together, they help deliver security while redefining scalability, flexibility and quality of service for any device in any location. These innovative services enable businesses to truly achieve the promise of the world of many clouds. Hundreds of other cloud vendors are preparing for the expected upswing in popularity of cloud services for SMEs and private consumers. They also want SMEs to know that helping them to secure data and information from incursion by cyber spies and criminals is of paramount importance to them. Providers like MTN are offering sophisticated services to guarantee safety. But as much as cloud services providers do everything in the books to keep customers' information safe, it is a known fact that nothing is 100 percent fail-safe. It is better however, to be cloud protected than to rely on old ways of storing data, which can become obsolete, damaged, breached and may become very expensive to maintain over the long term. The MTN cloud services, for instance, enable data logs stored online to travel over secure HTTPS tunnels, which means that it is by default encrypted to fly. In addition, an administrator from the business is trained by MTN on how to manage the environment, hence giving the business autonomy over the security of the environment and its data. The upswing of cloud services is a great evolution in the IT space. SMEs should note that no business is identical or have identical needs and it is paramount for them to subscribe to bespoke cloud services to aid the growth of their business type. -Ucheagwu works with XLR8, a Lagos-based communications consultancy Copyright The Guardian. Distributed by AllAfrica Global Media (allAfrica.com). |