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February 02, 2009

CRM, Sales Take Priority for Bandwidth-Squeezed SMBs, Author Finds

CRM and sales functions are taking priority over "less critical tasks" as small business juggle priorities to deal with bandwidth issues, according to a recent finding published by author Suzy Frisch.

Web traffic has doubled over the past 15 months, but poor bandwidth choices may hinder the growth of those businesses over time, she writes.

In an article titled "The Future of Bandwidth," Frisch says IT directors are "finding themselves tapped out of bandwidth as customers increasingly turn to the Internet for information, and employees conduct more remote business operations. As a result, small business growth in 2009 is dependent upon IT directors choosing bandwidth with the capacity to expand as this trend continues to grow."

Companies who have maxed out their T1 lines are now forced to prioritize bandwidth usage, Frisch states, "giving sales and CRM functions priority over less critical tasks, such as human resources operatives. Other small businesses are gravitating toward new technologies that offer more bandwidth for less money."

The most popular and cost effective option, she found, is Ethernet Transport Services. According to Frisch, Ethernet Transport Service has become the de facto alternative to T1 lines, offering 20 to 40 megabit speeds and costing 25 percent less.

Bandwidth is certainly in high demand -- earlier in January TMC reported that NuVox, a communications provider, has launched its VoxIP Big Bandwidth product to customers across the Southeast and Midwest.

“We understand the need for fast, high bandwidth applications is growing at a tremendous rate,” said Jim Jones, director of product management for NuVox.

Forrester Research (News - Alert) has reported that the number of small businesses will boom throughout 2009 -- a trend that has also occurred during the last three recessions.

"People currently running small businesses, and those starting new ones, may not realize how crucial it is to make the right bandwidth decision," says Jeff Williams, vice president of enterprise sales at American Fiber Systems. "It's important to think five years ahead -- after a few T1s, there's nowhere else to turn, and that's when it becomes outrageously expensive."
Don’t forget to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP Communications industry. The library offers white papers, case studies and other documents which are free to registered users. Today’s featured white paper is Fixed Service Strategies for Mobile Network Operators, brought to you by Comverse (News - Alert).

David Sims is a contributing editor for TMCnet. To read more of David’s articles, please visit his columnist page. He also blogs for TMCnet here.

Edited by Michelle Robart


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