Tag Archives: Santa Clara

Switch Blade: Migrating to Blade Servers

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Small-scale blade servers can slash small business energy and cabling costs and dramatically lower your server footprint. And installation and management are fairly straightforward. But are these reasons enough for a small to midsize business to make the move to blades? Blades are self-contained servers designed for high density. A blade enclosure can hold multiple servers. These servers appeal to small-business demand to integrate data servers into a single chassis, says Scott Tease, IBM worldwide product manager for blade at IBM of Armonk, N.Y. The capability to integrate more functions onto blades makes for a smaller footprint while providing the same services as standard rack-mount servers, says Steve Gillaspy, group manager, blade system division, at HP of Palo Alto, Calif. The decision to migrate in all or part to blade servers depends on a variety of factors that must be weighed byindividual business owners, Tease says. Assessing blade applications and savings The small-scale servers are particularly useful for certain applications like Web hosting, server virtualization, and cluster computing, he adds. Small businesses that need those capabilities should definitely check out blades. But if the costs to migrate don’t make sense for your company, migration should be put off, he adds. To assess migration savings, first look at power and space needs, says Frances Lam, blade product manager at Sun Microsystems of Santa Clara, Calif. Luckily, most vendors provide online assessment tools and calculators that can help assess costs, space needs, and tools associated with the move to blades. Many blade providers have also partnered with third-parties who conduct on-site thermal and power analyses, he adds. The servers might reduce the amount of IT staff needed to manage them. Blades can be easy to install, he adds. A small business may not need specialized IT support. While a standard server needs power cords and network cables, the self-contained blades don’t have need for much wiring. But just because the blade enclosure can reside in a room the size of a closet doesn’t mean small businesses with limited real estate can simply open a closet door and slip the blade enclosure inside, Gillaspy says. “There is still the law of physics for every room,” he says. “Understand what your room is capable of in terms of heat and power because you’ll need to stay within those parameters.” The cost of blade servers Also, the cost of blades as compared to traditional servers can be pretty close. Savings come when energy costs are factored into the equation, Tease says. Prices for the blades range from $7,000 to around $10,000. An enclosure to hold the individual blades will need to be purchased. They run from around $15,000 to $20,000. Standard servers can cost from around $8,000 to around $10,000, though no enclosure is necessary. Small and mid-sized businesses that do opt for blades are luckier today than in years past. Vendors have been stepping up the marketplace with blade offerings catered to the small business. These blades are simple to install and runs on office power, Lam says. Sun has developed a range of blade products for the small and mid-sized business data center, Lam says. At IBM, the BladeCenter S is tailored to small and mid-sized businesses looking to consolidate and simplify their server infrastructure, Tease says. SIDEBAR: Blade Migration Assessment Tools Some blade vendors and industry analysts offer online assessment to tools to help you determine whether blade servers make sense for your business. Such tools can be found at: IBM Blade Center Assessment Tool

Enterprise Resource Planning: Do You Need It?

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Does your business need an enterprise resource planning (ERP) system? If your company is experiencing rapid growth and the corresponding strain on legacy systems, or if you’re starting a new process — such as manufacturing — from scratch, you may benefit from an ERP system, experts say. Such a system maintains in a single database the information gleaned from a variety of business functions, such as financial, manufacturing, human resources, and customer management. As such, ERP systems offer a bird’s-eye view into the working of the company and allow users to cross-reference business functions. An executive might drill-down into the data, for example, to learn how business financials were affected by installation of a new customer relationship management (CRM) system. When ERP includes manufacturing information, businesses can reduce inventory by closely tracking customer orders and shipments, says Eric Kimberling, president of the Panorama Consulting Group in Denver, which helps companies clarify ERP goals before implementation. Act like a bigger business ERP systems help you behave like a bigger business, says analyst Dan Miklovic, research vice president for the manufacturing industry at Gartner. “By automating finance processes, you can do things like accept online orders and to business-to-business transactions electronically, instead of via e-mail,” he says. Many of smaller players think they’ll have difficulty finding an ERP application. But all major ERP providers — with names like Oracle, SAP, Syspro, Microsoft Dynamics, and Epicor — make specialized offerings for small and mid-sized businesses, Kimberling says. Many other vendors cater exclusively to the small and mid-sized business market. “When ERP is done right, the number one benefit is streamlining your processes and making them more efficient than doing data entry and keeping track of stuff in spreadsheets and digging for data,” Kimberling says. “ERP makes those things more flexible and accessible to employees.” Take Solaicx, which implemented an ERP system in July. The Santa Clara, Calif., based company has been moving from research and development to the manufacturing of ingots and wafers for the solar industry. It recently opened a manufacturing plant in Portland, Ore. “We were running QuickBooks and some miscellaneous packages. In the research and development stage that works fine,” says Jeff Osorio, Solaicx’s chief financial officer. “But in commercial applications, with the volume of transactions that would be going through manufacturing, we needed more.” Solaicx now houses its financial and manufacturing data within the new ERP system, from Syspro. That kind of integration makes for greater visibility into all aspects of the company, Osorio says. The real value to small business Bear in mind, however, that purchasing and implementing an ERP system is no small task, these experts say. Consultant, vendor, or other outside help is often needed here. The real value to small and mid-sized businesses comes in the way they customize and configure the core product to their own particular industry and individual needs, Miklovic says. But ironically, that kind of customization can be harder for small businesses to find. For example, businesses located in areas without a pertinent systems integrator or reseller that can essentially make a house call, could face customization challenges, he says. “The challenge is making sure the domain expertise is available in the geography you’re operating in,” Miklovic says. An automotive supplier in California, for example, will have a tougher time finding a reseller with pertinent automotive expertise than will a similar-sized supplier in the Detroit area. In the same way, a Californian small or mid-sized business serving the wine industry will have an easier time finding an ERP reseller to meet its needs. “But the good news is, ERP systems are affordable and can radically improve your business,” Miklovic says

Networking Needs for the 802.11n Era

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Try out these Wi-Fi terms — 802.11b, 801.11g, and now 802.11n, not to mention 2.4 GHz versus 5 GHz frequencies. For the not-so-techie business owner, shopping for wireless networking gear can put a cramp in the brain quicker than you can say 10/100 megabit Ethernet hub. Don’t let the geek speak make your eyes glaze over so fast. Once you get past the jargon, wireless networking is actually pretty simple to understand. It’s also an area of technology most companies can’t afford to assemble piece by piece without any forethought or strategy. Five numbers to understand: 802.11 802.11 are the Wi-Fi industry standards regulated by the Institute of Electrical and Electronics Engineers (IEEE). The little letter after the 11 indicates the generation of standards, each letter as the alphabet progresses being more sophisticated, faster, and with a wider range of coverage than the previous. 802.11b was the first widely implemented protocol introduced back in 1999 (which makes it a dinosaur now). Most companies are still using 802.11g, which hit the market in 2003 and took off very quickly just as wireless gear was becoming more affordable. It was also a vast improvement over “11b” or Wireless B.  Mainly, it was faster.  Then along came “11n” 802.11n hasn’t actually been approved by IEEE yet, although all the major wireless vendors are using it in their latest product lines. “The IEEE can’t guarantee the final draft of 802.11n that gets approved will be completely operable with what’s currently on the market. But you now have big companies like Cisco and Trapeze shipping “N” Once that happens, you know it’s safe,” says Mark Tauschek, a senior research analyst at Info-Tech Research Group. There are a number of reasons why companies aren’t waiting around for final approval to either sell or purchase Wireless N technologies. “Bottom line: it’s six to eight times faster than ’11g’ and it has at least a 50 percent wider range.  I will also say this — I believe 50 percent is a conservative figure based on my own experience using ‘N’,” says Tauschek Other differences that set Wireless N apart from Wireless G and B include: Crowded frequency. Wireless B and G operate on the very crowded and unregulated 2.4 GHz frequency making it more likely for interference from everything from other nearby wireless networks to microwave ovens and portable phones. Wireless N is set on the 5 GHz band, which is also not regulated and therefore open to all. However, it hasn’t had the time to jam up yet with other technologies. Less interference. Wireless N runs into less interference from common building architecture than previous generations. “It goes through wood floors, sheet rock, even concrete walls, as long as there’s no wire mesh built into it. Mesh fencing of any kind chops it apart,” says Tauschek. Stronger signal. Wireless N is the first 802.11 generation to feature multiple input/multiple output technology (MIMO). This is the secret sauce that enables 11n’s signal to be so much stronger. When a wireless device beams out a signal it bounces off various surfaces in its path that can cause slight variations in signal strengths. MIMO technology sends out duplicate signals that reinforce each other into one strong signal that goes further and with greater clarity upon arrival at its destination. Deciding when to upgrade For companies still operating in an “11g” world, is it time to migrate to “11n”?  The short answer is yes, and no. In other words, it depends on the company in question. It also depends on who you ask. “Many applications can benefit from increased speed, especially those that involve heavy data transfer. The higher capacity of 802.11n also enables service for a higher density of users,” says Matthew Gast, author of  802.11 Wireless Networks: The Definitive Guide (O’Reilly, 2002).  Then again; “If you have a ‘g’ network and you’re not putting a lot strain on it, you can probably wait. Unless your gear is old and decrepit, which is unlikely, there is little reason to upgrade,” counters Tauschek. He says companies, like engineering and graphic design firms, that pass around a lot of large files are most likely to benefit from investing in “11n.” Tauschek and Gast also agree that if an organization is upgrading their wireless network anyway then “11n” is definitely the way to go. The question is where to begin. Putting the pieces together Switching to “11n” is not as simple as just buying a new router and calling it a day. That new Wireless N router will work with the old gear (all 802.11 gear is backwards compatible), but users won’t get the full benefit of the upgrade. Regardless of the router, the network is only as robust as its own hardware. “The shopping list is fairly straight forward,” says Gast, who narrows it down to these three areas: Wireless N capable access points. Okay, so the bad news is having to pony up for new access points. The good news is that work spaces will need fewer of them. That’s because Wireless N sends out a stronger signal with a wider range. Power for the access points.  This is a feature to shop for within those new access points that will save power and keep the company wireless network as unplugged as possible. Many small-scale access points need to be plugged into the wall.  Better access points can take power over the Ethernet cable connecting them to the network,” says Gast. Before buying the access point, read the fine print on technical specifications and ask the vendor about the product’s “power over Ethernet” capabilities. Faster switch for the network backbone. Older Wireless B and G switches use 10/100 megabit Ethernet ports. In order to take advantage of those dramatic increases in speed that comes with the new “11n,” the network switch needs to be upgraded to a gigabit switch that can accommodate all that extra bandwidth. Whether a business decides to pull the trigger yet on Wireless N, the company next door may have done so already. That means that there’s likely to be a risk of interference on the 5 GHz frequency bleeding through the walls or even from across the parking lot. Between that and the already clogged up 2.4 GHz frequency, it may be time to consider 6 GHz portable phones. SIDEBAR: “Wireless N” Networking Products for Small Business NetGear  Known for its networking hardware solutions, the Santa Clara, Calif.- based company released its ProSafe 802.11 Dual Band Wireless Access Point just this Spring (April 2008). Priced for the small to mid-sized business, ProSafe sells for $475 and includes a gigabit Ethernet port, three antennas, and a console port for local configuration. NetGear also offers a Wireless N router (the RangeMax) for about $120. Linksys offers a Wireless N gigabit router for about $120 and its Wireless N Access Point priced at $160. As the prices would indicate, these product lines are geared more towards the needs of a small company or home office. Linksys, a division of Cisco, also offers outdoor antennas that are N-compatible, as well as their Wireless-N Gigabit Security Router with VPN tunnel support ($200) and for the road warriors on staff; a Wireless N notebook adapter ($120). Belkin is another option to consider for entry level businesses looking for modestly-priced networking products. Belkin’s line of Wireless-N routers ranges in price from $90 to $180. They also offer 802.11n adapter cards, desktop cards and a USB adapter. D-Link now offers a line of Wireless N access points priced between $80 and $160. The high end model only networks up to four devices, however. So this is really meant for either a small business or home. D-link’s business class networking solutions are sticking with Wireless G for now.

Avoid Security Pitfalls with Subcontractors

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You’re a not-so-big company, and you simply must outsource some sensitive tasks — perhaps payroll or the 401(k) plan. But news headlines about laptops carelessly unencrypted by subcontractors and then stolen are everywhere. How can you protect your company from the errant security breaches of a subcontractor? In March 2008, Santa Clara, Calif.-based Agilent Technologies became the latest victim of this scenario — a subcontractor hired to handle the company’s employee stock plan left the information on an unencrypted laptop. The laptop was later stolen. In Agilent’s case, Agilent had a clearly stated policy that all such data must be encrypted, and that subcontractors must do it, too. But the subcontractor did not honor this policy, according to Amy Flores, an Agilent spokeswoman. While some risk always exists, experts say, you need to make sure the service-level agreement (SLA) you have with your subcontractor is as airtight and specific as possible, and that you constantly keep tabs on whether they are complying. They offer the following advice: Call your lawyer. “Knowing your exposure is specific to your industry,” notes Scott Almas, associate attorney with the Albany, N.Y.-based law firm Lemery Greisler. Almas, who has drafted many an SLA and litigated ones that have gone awry, says that your company lawyer should know what’s needed in terms of data protection to comply with such federal laws as the Sarbanes-Oxley Act and the Health Insurance Portability and Accounting Act (HIPAA). Spell it out. Explain the purpose of the application you are requesting that the subcontractor use and why. “Take the time to explain it — which data is private, what needs to be encrypted, the rules of who has access,” says Jack Danahy, founder and CTO of Ounce Labs, a Waltham, Mass.-based software risk management firm. Require specific protections. Insist on fingerprint sensors on all laptops the subcontractor uses, WPA encryption on their wireless systems, secure networks and careful protections on all remote access, says Almas. Look into NAC. Network access control (NAC) programs can allow you to scan any computer, PDA, or thumbdrive and keep tabs on any remote worker, subcontractor or not, notes Paul Roberts, senior analyst for enterprise security at the 451 Group, a technical analysis form in Boston. “If it’s not okay, you can quarantine the computer until the subcontractor cleans up their act.” NAC tools, offered by Cisco, Mirage Networks, Nevis Networks and others, are expressly designed to address the unique security breach issues raised by laptops and other mobile devices. But some note that the technology remains very new — and perhaps too pricey for the smaller business. A less expensive option is a hosted option, such as those offered by AT&T and other ISPs, says Roberts. Encrypt first. “Encrypting the laptop is one approach, but encrypting the data before ever transmitting it is the better approach,” says Ounce’s Danahy. Reviewing the source code to make sure that the subcontractors’ systems are in order is another approach that Ounce offers its enterprise customers, Danahy says. Include enforcement — and consequences. Reserve the right to enforce the agreement and check up on workers, says Ounce’s Danahy. “Put something in like, if we discover you’ve done this, you’ll be fined 5 percent per month, or we won’t pay you,” he says. Adds Almas: “They need to agree to indemnify and defend you against any losses.” Include destruction policy. When the project is over, make sure you’ve spelled out to the subcontractor how you’d like the sensitive information wiped or destroyed, says Almas. Otherwise, that laptop or PDA could be discarded someday with all that sensitive data still on it. If it’s your company that’s the subcontractor, showing a willingness to take security steps can help you seal the deal, notes Ounce’s Danahy. “Small contractors who ask the right questions and tell their potential client how they’ll encrypt the data, that can be a real differentiator for bigger companies,” he says. SIDEBAR: What to Do if Disaster Strikes Let’s say the worst has happened: your company’s sensitive data has been breached, despite your diligence. What can you do to contain your risk? The first step is to notify your clients or employees — those whose data is at risk — of the breach. Under California’s SB 1386 breach notification law, companies that tell their employees or clients of the breach as soon as possible, and can show that they did everything possible to protect sensitive data, are given a safe harbor. Experts say it’s also wise to offer employees or customers a credit-monitoring service for a time to help them track any possible identity theft. Agilent’s Flores reports offering this service to their employees. Even outside California, companies that don’t inform their customers/employees right away do so at risk. In March 2008, two separate lawsuits were brought against the New England-based Hannaford Bros. grocery chain for failing to notify customers until late March of a credit-card security breach that occurred Feb. 27, according to published reports. A breach can happen to anyone, but companies that show they did what they could will fare better — in the public eye, and in the courts.

10 Steps to Database Security

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March 1, 2008: a laptop containing unsecured confidential data is stolen from an employee’s car, endangering the privacy and financial well-being of thousands of people — and a company’s reputation.  Feel like you’ve read this before? Once only the stuff of nightmares, this unfortunate scenario has become almost commonplace. In this latest instance, the laptop belonged to an employee of San Jose, Calif.-based Stock & Option Solutions (SOS), a stock-plan manager and subcontractor to Agilent Technologies Inc., of Santa Clara, Calif., a life-sciences and measurement firm. The laptop contained a database listing the names, addresses, and Social Security numbers of 51,000 Agilent employees, retirees, and stakeholders, as well as information about their stock holdings. Despite a strict Agilent database-encryption policy, which covered SOS as well, the laptop version was unencrypted, confirms Agilent spokeswoman Amy Flores. “They blew it,” she says simply. Cautionary tale about databases This latest case should serve as yet another cautionary tale. Data such as Social Security or credit card numbers are not only crucial to a business, they are worth their weight in gold to those in the identity theft racket. Moreover, compliance with regulatory mandates, such as Sarbanes-Oxley requirements, requires companies, and their contractors, to keep an airtight lock on relevant data if they want to win and maintain lucrative business deals. And yet, database administrators (DBAs) probably only spend 7 percent of their time tending to database security, estimates Noel Yuhanna, principal analyst for database security at Cambridge, Mass.-based Forrester Research. If anything, DBAs spend more time trying to increase internal access to a company’s database, so that it can be used optimally by the accounting or sales staff. And for small businesses, where the DBA could have countless other duties, too, the problem might be greater. Sometimes insiders at fault Which brings us to another tough statistic — a January 2007 Forrester Research report estimated that 70 percent of all database breaches involve insiders. Even those employees who administer the database need to be viewed as potential risks to its safety. Awareness of the scope of this problem is growing, however. A separate Forrester study found in October 2007 that enterprise spending on database security and auditing is likely to double by 2010 to nearly $900 million annually. What should a small or mid-sized business do to protect its database? Here are some tips from the experts: What’s Your Risk?  “If your database is on the Internet, you have to protect it from hackers. Even if not, you have to protect it from insiders. And then you need to consider the laptops, thumbdrives, anything else that can include the data,” says Sushil Jajodia, professor of information technology and director of secure information systems at George Mason University, in Fairfax, Va. Figure out the scope of your risk first. Conduct a Vulnerability Assessment. Tools are out there that can help you check how well your existing systems work to protect your database. Products such as Imperva’s Scuba, an open-source assessment tool, can point out flaws in existing programs. How Many Databases Exactly? Make sure you track down any and all copies of your company’s databases that might be floating around. There may be more copies than you think, so make sure they are all found and eventually protected. Develop a Clear Policy…and Stick to It.  “Insiders need to know what they can and cannot do” with critical information, and how it should be stored, says Jajodia. “They need to understand the policy and know what will happen if it’s violated. Usually, that’s enough and people will do the right thing.” Insiders can include not only employees, but third-party contractors, too. Go Shopping for New Tools. DBAs should seek out the newest database security releases instead of relying on what’s on their systems now, says Forrester’s Yuhanna. For example, the latest offerings from Oracle, IBM, SQLServer, and Guardium offer far more advanced features. Guardium’s appliance, for example, features continuous tracking of all database activity, including failed logins, and includes an email alert service that can let others know of any suspicious activity. Make Sure the Tools Get Used. Make sure any software is properly installed. If encryption software for laptops is purchased, make sure it’s installed on every laptop in the office. In a recent case involving a laptop theft from a National Institutes of Health (NIH) employee, the laptop was not encrypted despite the existence of a U.S.-government-wide encryption policy, notes Jajodia. Control Access. Only certain employees should have access to the office database, and those employees who need only parts of the database to do their work should only have access to those parts. Products such as Applimation’s Informia subsetting solution or EMC’s Database Xtender can ensure that the sales force, for instance, only sees the specific data they need and nothing more. Don’t Give DBAs Sole Responsibility. Remember that most database breaches happen from the inside, so make sure someone is checking up on the DBA, too, notes GMU’s Jojodia. “This is the typical weakness, where a separation of duties isn’t followed,” he says. “There have to be checks and balances,” Newer product offerings can help by ensuring that even DBAs cannot make changes without notice. Handle Old Data with Care. Develop a solid strategy for storing databases that have outlived their usefulness, or old equipment containing such data. Remember that even old data can be misused if in the wrong hands. To store sensitive data, consider off-site archiving options with limited access, says Yuhanna. Should You Dump it Instead?  Legal experts note that keeping certain old data could add to your company’s risk in the event of an e-discovery case. If you decide to dump the data, wiping software, which overwrites your hard drive with unreadable gobbledygook, is one option: consider such products as WipeMaSSter or Active@KillDisk. Other options include degaussing (frying with an electrical impulse to render it unreadable) or destroying a hard drive outright. To be sure, protecting your company’s database is a challenging, time-consuming task. And, as Agilent’s Flores warns, the proverbial chain is only as strong as its weakest link. But nonetheless, making your best effort could help inoculate your company from all kinds of unforeseen dangers.

Everything You Need to Know About Buying Software

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Should you buy software as a service or perpetual user license? Which is best, user or usage-based pricing? Questions like these are foremost in the minds of technology leaders at any small or mid-size business planning to upgrade software or purchase a new commercial application. Software as a service (SaaS) is a model of delivery under which the software maker also provides technical operation, support and maintenance to the client. Many growing companies got their first tastes of buying SaaS when they opted for a customer relationship management or sales force automation solution from an on-demand vendor such as Salesforce.com or RightNow Technologies. But the model is still something of an unknown quantity, even as SaaS options expand to include products ranging from project portfolio management to business intelligence software. Service licensing versus buying The service model for software provides many advantages to small businesses, the chief one being its lower buy-in costs. With SaaS, rather than paying $100,000 or $200,000 upfront for a license, plus the associated costs for infrastructure, professional services and maintenance, companies typically pay for the use of the software on a monthly, per-user basis. For the fee, which you pay as long as you use the service, the service provider bears the support, training, infrastructure, and security costs, as well as handles upgrades. SaaS makes sense for companies with around 1,000 employees or less, says Ray Wang, principal analyst with Forrester Research, of Cambridge, Mass.  “It has better ROI and a lower cost structure,” he says. Because smaller businesses are less likely to have as many applications to connect to as large enterprises, they can derive even greater value from an SaaS solution than organizations that have to factor those integration costs into their planning. Choosing to license software as a service provides another benefit: It eliminates the risks that come with buying software as a product under a traditional perpetual license. “If enterprises can reduce their risk, they’re interested in that, and it’s why software as a service is so appealing,” says Brian Vile, vice president of solution marketing at Macrovision, a Santa Clara, Calif. based digital rights management and software licensing technologies vendor. Instead of spending a lot of money on on-premise solution to see if it works, they can get two people to try SugarCRM or Salesforce. “That’s not something you can do with software as a product,” he says. More vendors now offering services Macrovision was one of the sponsors of the recent study, Key Trends in Software Pricing and Licensing, which reveals that fewer vendors this year than last are offering more flexible pricing or licensing policies. Some big-name vendors of traditional commercial applications, such as SAP and Oracle, now offer subscription-based software as a service in addition to their traditional licensing models. But by and large, Vile says it’s difficult for big software vendors, who are accustomed to the perpetual software revenue recognition model, to make the move. Still, nearly half the independent software vendors surveyed predict subscription-based models to be their primary offering within two years. Software as a service isn’t always the right choice. For businesses in certain sectors, such as health care or other industries that require the highest levels of data security, buying a perpetual license for a conventional on-premise solution is wise. The recent study found that the majority of enterprises surveyed prefer concurrent-user model pricing, in which you are basing the license on having a certain number of users use the product simultaneously. Companies that opt for on-site software licenses should also ensure that they’re complying with vendor license agreements. In the survey, nearly 30 percent of users identified reducing software costs as an important consideration for tracking software licenses. There’s a problem, though: While most organizations can tell how much software they have installed, the manual methods they use to track licenses means they don’t always have as good a handle on what pieces of it are actually being used. Companies that automate the process of centrally tacking and managing licenses gain deeper insight that lets them be smarter about purchasing decisions at upgrade time. Small and mid-size businesses won’t get the volume-sized deals or license discounts their larger competitors do, Wang notes. But that doesn’t mean smaller businesses are on the losing end when it comes to making software license deals. With the Global 2000 market being fairly well saturated, vendors are eager to move down market with solutions and pricing that makes sense for smaller companies, he says. The software as a service trend is adding to the options, as well as to the spirit of competition. “The market for [small businesses] is extremely competitive right now,” says Wang. In fact, he adds, “this is probably one of the best times to be a [small business] customer.”

Going Wireless in Your Office

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The word “office” conjures up visions out of Dilbert, replete with rows of cubicles and desktop PCs. But these days laptops and tablet PCs are becoming more the norm and with them, an increasing penchant for wireless networks that let employees log on from anywhere on the work campus. While no one tracks the small business adoption rate for wireless local area networks (WLANs), those who service the sector say demand has spiked. Such need prompted Cisco Systems’ unit Linksys to launch a small-business focused line this year. Small businesses value added resellers (VARs) also say wireless is on a tear. “As laptops and tablet PCs get smaller and smaller, I think it’s a trend that’s only going to continue to grow,” says C.J. Ezell, president of Arrival Systems, a Mobile, Ala. VAR. Options: consumer grade or professionally installed It’s easy to see why small businesses are going wireless. Most laptops have built-in wireless connectivity, equipment is generally cheap and, if you keep things simple, it’s easy to install. “If you’re buying the consumer-grade stuff, the typical person can usually configure it inside of 30 or 40 minutes,” says Ezell. For the more sophisticated set-up, it’s a good idea to call in a professional. Marty Wachi, senior product manager at Linksys, says two-thirds of his company’s small businesses customers opt for a VAR. That’s mostly because the higher-end entries have more complicated (and more robust) security features. VARs can also add bells and whistles like virtual private networks (VPNs) that let employees tap into the network securely from home or even the local Starbucks. But even if you decide to call in a pro, setting up a wireless network is pretty cheap. You can expect to pay between $100 and $400 for equipment and the total cost rarely tops $1,000, even if you hire someone to set it up. Choices between wireless standards If you’re intent on setting up a WLAN yourself, it’s easy enough. You can buy a lot of the lower-end “prosumer” equipment at your nearby computer store. As long as you use cable or DSL for your broadband connection, most WLANS are plug-and-play systems. Aside from that, the only variables are speed and range, which boils down to a choice between one of three standards. The older generation of wireless equipment is based on Wireless B (802.11b, a standard introduced in 1999 that averages 6.5 Mbps and has a range of about 100 feet. These days, you’re more likely to get something based on either Wireless G (802.11g) or Draft N (802.11n), which get speeds of 25 Mbps and 200 Mbps and ranges of 100 feet and 160 feet, respectively. The next standard on the horizon is currently referred to as Draft N, because it’s merely a draft until the Institute of Electronical and Electronics Engineers (IEEE) ratifies the new standard, a move that is expected to happen next year. There’s lots of Draft N equipment on the market already. Do you need it? That depends on what kind of work you’re doing. “If you’re not going to be doing a lot of printing jobs, G would be sufficient,” says Doug Hagen, director of marketing for Netgear, a maker of wireless networking products from Santa Clara, Calif. “If you’re looking to have room to grow and cover a wide area, then Draft N makes sense.”

Health Hazards? A Look at Cell Phone Safety

The cell phone has become an essential business tool, but it’s gotten a bad rap as far as health is concerned. In September, the California legislature sent a bill to governor Arnold Schwarzenegger to outlaw the use of cell phones in automobiles, unless drivers use “hands-free” technology — such as headsets or earpieces that keep their hands on the steering wheel. The state would join the ranks of New York, New Jersey, Connecticut and Washington, D.C., which have all criminalized this essential business tool. Proponents point to a body of research, including a California Highway Patrol study from 2004 which found that drivers using cell phones pressed against their ears caused accidents 25 times more than drivers using hands-free gear. But driving is not the only concern about cell phones. In March, a study by the Swedish National Institute for Working Life found that prolonged cell phone use — it defined heavy use as 2,000 hours or more in a lifetime — may put people at increased risk of brain tumors. The Swedish study, which disputed some earlier studies, is the biggest study yet to cover long-term mobile phone usage, involving 2,200 cancer patients and the same number of healthy individuals. The news might cause you to consider urging employees not to make cell calls from behind the wheel. Or, at the very least, you may want to issue employees head-sets or earpieces when purchasing cell phones for their business use. There has been a lot of ink spent on looking at cell phone dangers — from brain cancer to interfering with medical devices to causing accidents. Here is the fact versus the fiction about these claims: CLAIM: Cell phones cause brain tumors. FACT: Cell phones pass along information via airwaves, similar to the way music stations transmit their signals from a giant radio antenna. The difference is that instead of sending those signals to a radio, they are being directed toward your ear. Some scientists, such as the Swedish researchers, have found constant exposure can create cancerous brain cells. But other research has found little or no impact on tumor rates. In January, the London-based Institute of Cancer Research and several universities in Britain reported their results from a four-year study involving 966 people with brain tumors and 1,716 healthy respondents. The U.S. Food and Drug Administration in 2003 found that radio frequency, or RF, waves sent by cell phones are different from other, more powerful currents. “Very high levels of electromagnetic energy, such as is found in X-rays and gamma rays, can ionize biological tissues,” said the report. “The energy levels associated with radio frequency energy, including both radio waves and microwaves, are not great enough to cause the ionization of atoms and molecules.” So where does the truth lie? Researchers are still in the labs determining the answers. In the meantime, more neutral experts recommend using a headset to minimize exposure to RF waves. And one universal warning is to avoid so-called “electromagnetic energy blocking” products, many of which haven’t been proven to work at blocking electromagnetic energy at all. In 2002, the Federal Trade Commission charged two companies, Stock Value 1 of Boca Raton, FL, and Comstar Communications of Sacramento, CA, of making false claims that their EEB products could shield people from potentially dangerous waves. The products were called “SafeTShield,” “NoDanger,” “WaveShield,” “WaveShield 1000,” and “WaveShield 2000,” which you place on your cell phone’s ear or mouthpiece to allegedly keep the radio waves away from your head. CLAIM: Cell phones interfere with medical devices. FACT: RF energy from wireless phones can interact with some electronic devices. The FDA has developed a method to test the levels of electromagnetic interference from mobile phones with cardiac pacemakers and defibrillators. It’s now considered a standard test by the Association for the Advancement of Medical Instrumentation, a trade group, and manufacturers use this as a guide to make sure that these medical devices are safe from wireless phone interference. In addition, the FDA has conducted tests on hearing aids for interference levels from cell phones. The agency helped develop a voluntary standard with the Institute of Electrical and Electronic Engineers that includes testing methods and performance requirements for hearing aides and wireless phones to ensure no interference between “compatible” phones and hearing aids. CLAIM: Cell phones cause traffic accidents. FACT: A New England Journal of Medicine study from 2001 found that drivers using cell phones were four times more likely to get into accidents than non-cell phone users. A 2005 study by the U.S. National Highway Traffic Safety Administration (NHTSA) found that six percent of drivers actively used hand-held phones — roughly one million people. A different group, making up four percent, used a hands-free phone. Another recent study, published in the journal Human Factors, found that cell phone users were more likely to get into an accident than individuals who were legally drunk. Hands-free units, now being built into higher-end cars, are universally considered safer than handheld phones. In fact, like California, a growing number of states including are banning handheld cell phone use while driving. The American Automobile Association (AAA) advises drivers to: avoid talking while behind the wheel, let voice mail pick up calls, and pull over to a safe spot if you absolutely have to take the call. Whatever the research eventually shows, business leaders may take note of a recent study at Santa Clara Valley Medical Center in San Jose, Calif., of business people in all different types of professions that found strong evidence that use of headsets can — at a minimum — reduce neck, shoulder and upper back muscle tension as much as 41 percent.

Can You Hear Me Now?

Paul Hollen has been in business for more than three decades. He’s managed an industrial parts distributorship and worked as a stockbroker, and currently serves as executive vice president and chief operations officer for Southcoast Community Bank, which he helped found in 1998 in Mount Pleasant, S.C. The higher he’s ascended the career ladder, the more the phone company has let him down. No matter which company he was dealing with or what the problem was, Hollen felt he was charged an arm and a leg for service that never failed to disappoint. The final straw came when he learned that he could not move a loan officer from one side of his bank to the other without calling in a technician. He began taking steps to get the phone company out of his life once and for all. It wasn’t difficult to do. Hollen simply purchased a PBX, or premise-based exchange — industry lingo for a phone switching system — that works with both the regular phone network and emerging voice over Internet protocol, VoIP, technology. Now, rather than going over the phone lines, most of Southcoast’s calls take place over the bank’s high-speed Web connection. Hollen uses a mouse to drag-and-drop employee phone numbers, making rearranging the office a cinch. If he needs to spend the day working in one of the bank’s six branches, he can have his regular phone number follow him there — again with the click of a mouse. Because the bank needs fewer phone lines, Hollen has shaved thousands of dollars a year off his phone bill. But even without the savings, he’d still be sold on VoIP. “The main business case,” he says, “is the flexibility VoIP allows me to have in my system.” Entrepreneurs attracted to Internet phone systems to save money are surprised by the superior features. If you know about voice over Internet protocol, it’s probably because you’ve heard how much cheaper it is than regular phone service. But entrepreneurs attracted to Internet-based phone systems to save money are finding that the ease of use and superior features are what keep them coming back for more. VoIP technology takes phone calls and turns them into digital files, which are broken into packets of data, sent through the phone network, and then converted back into voice calls on the other end. It’s similar to how the Web handles e-mail. The advantage of breaking voice calls into digital packets is that you no longer need a phone line to make a call — you simply use your broadband connection. It also means you can treat your phone calls like data files, which lets you fine-tune your phone system. VoIP has made significant inroads among consumers eager to trim their long- distance bills. But businesses are catching up. Already, 20% of companies with fewer than 99 employees either have some sort of VoIP service or expect to purchase it in the next 12 months, according to Access Markets International, a New York City-based research firm. As the size of the company expands, so does interest in VoIP, with 39% of all firms with 100 to 1,000 workers expressing interest in or making plans to purchase the technology, AMI found. “There’s definitely a transition going on,” says Robert Benhabib, the firm’s senior vice president. Steve Fleury began making the shift three years ago. Fleury, president and COO of Cambria Bicycle Outfitters, a bike retailer and mail-order firm in Cambria, Calif., dumped his phone and data provider after huge headaches resolving billing questions. He signed up with a VoIP company called GoBeam (which has since been acquired by Covad Communications Group). Monthly savings have been about 30%. But equally important is that Fleury now gets a bill he understands. “Instead of a 60-page invoice with all sorts of weird crap on it,” he says, “I get a bill that says you owe this much and here’s what you used.” New employees can be trained to use the system in less than an hour. Fleury also likes that he can save voice mails as files on his computer. Sure, there are some downsides. He misses the ability to redirect calls automatically when people are on the line, a feature he had with AT&T. But he likes VoIP well enough that he’s finally selling his old PBXs, which he had kept just in case the new system didn’t work. “We live and die by the phones, but VoIP’s been pretty darn solid,” he says. VoIP is not for every small business. Some of the software systems have a hard time accommodating more than 10 users. And there’s a flipside to VoIP’s low costs. The service is so cheap largely because it runs over the public Internet — which means it can suffer from service hiccups. “VoIP is not perfect,” concedes Bryan R. Martin, CEO of 8×8, a Santa Clara, Calif., maker of VoIP software. But Martin says many of his small-business customers see the gain in features as enough reason to accept a small drop-off in reliability. Another issue to consider is what would happen during a blackout. The phone companies run their own power generators; that’s why you can still make a call when the power grid goes out. Not so the Internet. If your company requires absolutely rock-solid service, opt for a hosted service, such as Covad’s vPBX and PBXi. It’s pricier, but more reliable because hosted services route calls over a secure network rather than the public Internet. A bulletproof system, such as the one used by Southcoast’s Hollen, can cost as much as $50,000. Whatever you buy, you may need at least one landline for your alarm system and 911 calls — which many VoIP services do not support. But even if VoIP isn’t ready yet for your business, keep an eye out. With the technology spreading, some traditional phone companies already are trying to match VoIP’s features and prices. Traverse Networks, a telecom start-up in Fremont, Calif., for example, is working with large wireless carriers on a service called InTouch, which includes VoIP-like features such as call management and a unified voice mailbox. Indeed, some of the coolest VoIP features are yet to come. For example, 8×8 plans to add a feature Martin calls “Hollywood Squares conferencing,” which lets you put multiple people on the video screen at the same time. Meanwhile, look for VoIP systems geared to specific kinds of businesses. A package geared to law firms, for example, will log phone calls into the firm’s accounting systems automatically, making it much easier to account for billable hours. Companies of all sorts might integrate their phone systems with customer databases so customers on hold will be reminded of recent purchases or told of specials on things they might not have purchased in a while. Down in South Carolina, Paul Hollen is waiting with excitement. “I’m not smart enough to think of all the things we’ll be able to do,” he says. VoIP Venders Looking to ditch the phone company? Here are some options. (All charges are per month.) 8×8 Santa Clara, Calif. www.packet8.net $35-$40per line Free, unlimited videoconferencing. Covad Communications Group San Jose, Calif. www.covad.com $37-$60 per line Runs on a Covad T1 line, not public Internet — that means better service. Nuvio Kansas City, Mo. www.nuvio.com $40-$50 per line Runs on phone lines, not the public Web, providing greater flexibility. VoicePulse Jamesburg, N.J. www.voicepulse.com $46 per line Easy to use, but geared more to consumers than businesses. Vonage Holdings Edison, N.J. www.vonage.com $40-$50 per line Service works best with fewer than 20 employees.

This is not Your Father’s Hummer

Spoils Admit it: you already think that as personal transportation goes, a Hummer is a little overeager. And you haven’t even seen Tim Hildabrand’s yet. Hildabrand’s four-door, open-top Hummer (Is it a car? Is it a truck? Is it NORAD?) is, shall we say, accessorized. “This is the ultimate vehicle for accessories,” says the 42-year-old founder of New Dimensions Ltd., in Santa Clara, Calif. New Dimensions sells car parts, which explains at least part of Hildabrand’s obsession. And we weren’t aiming to explain the rest — we just wanted to look inside his cab. Among the highlights: A Garmin GPS III Plus ($400), hooked to a laptop with street atlas software and an external antenna. “You type in an address, and — boom — it tells you how to get where you want to go,” Hildabrand says. A $400 Valentine One radar detector. An Audiovox mobile phone ($150) and Audiovox Hands Free Kit ($199), which he secures to the car’s dashboard with an HR Auto-Comfort bracket ($30). The Hummer also sports a Larsen Kulglass external antenna ($40) — separate from the one for the GPS — “that boosts your reception while in the car.” Hildabrand admits that his setup trades safety for productivity. “Right now there are more distractions in cars than ever,” he says. “People are watching screens, pushing buttons, and running off the road.” Of course, running off the road is the point of a Hummer. But even Hildabrand would prefer not to hit anything on the way. The Inc Life The Adrenaline Junkie and You Sleep, the Final Frontier Hoop Dreams Tom Ritchey’s Garage Making the Travelers’ Century Club, Times Two Frank Tucker’s Downtime Club Fed This is Not Your Father’s Hummer The Suitable Throne Please e-mail your comments to editors@inc.com.