Helping Small- and Medium-size Businesses to Flourish: New Trends in 2011 to Grow
Small Businesses
Author: Rapid Access International, Inc. February, 2011.

Background:
The global recession has had a strong impact on small- and medium-size companies and enterprises
globally. Small firms are not able to invest in the infrastructure they need to compete with large firms andthe cost of managing a small business is often overwhelming. As a result, many small businesses are notable to endure in the long run and many do not survive. In 2011, analysts in the US believe that newtrends will help to drive small businesses and help them compete. Among the new hot trends in 2011 is
the increased availability of mobile computer applications (software and services that are used on mobile
computing devices such as cell phones, IPads, and smartphones). The applications will support sales staff
to make more sales, business analysts to use more advanced tools for calculating problems, managers tohelp them keep track of budgets and the work force, etc. Mobile applications will greatly streamline
business processes and create efficiencies within small business to allow them to compete moreaggressively with large business.
In addition to mobile applications is the use of “Cloud Computing” and Cloud-based services have begun
to revolutionize how business is conducted in the US and globally. This is one of the fastest-growing IT
business segments in the market at the moment. IDC has predicted that “by 2012, customer spending on
IT cloud services will grow almost threefold (since 2008) to US$ 42 billion”(Source: http://blogs.idc.com/ie/?p=224). This means that a larger proportion of business “on-premise”
software and services will be moved to and accessed through “the cloud” versus in-house. By 2020, alarge portion of all digital data will be centrally hosted, managed, or stored in public or private
repositories (Source: IDC)The Opportunity:
1. Applications for Mobile Communications
Mobile communication service providers (such as Verizon, AT&T, or Sprint) are now working on newand innovative packages of mobile applications for small- and medium-size businesses (SMBs). Sprint isplanning to launch a new product called the Sprint ID Business Pro Pack. This package of applications
will offer small businesses an array of technologies and tools to help them manage their businesses withgreater efficiency without having to invest large amounts of capital in infrastructure-related tools andtechnologies. It allows small business to operate in a much more fluid and “virtual” environment.
Communications service providers (CSPs) are in the process of “pre-testing” new applications that are
being developed for the mobile market and these “apps” are being tested on handsets among the major
manufacturers including Android, Apple, RIM and Symbian devices.
Sprint seems to be a leader in the development of new customized applications for small businesses.
Employees of SMBs include sales staff, technology support staff, customer support and service,management and executives, etc. and all of these roles within an SMB will be handled by specialized
applications available through mobile communications devices. There are products and services fordownload or access via a cell phone including sales lead management apps (to track prospective clientsand their contact data), accounting and financial apps, and human resource management apps (such astime sheets to manage an employee’s hours, etc.). This means that SMBs will have the ability to manage
their entire staff in a mobile environment and keep sales and other staff active outside the office togenerate sales for the company. Initially, many of these applications are being offered without a charge toend-user SMBs, but eventually there will be fees associated with most of the apps (though the cost ofusing mobile apps is much lower versus purchasing software and tools in-house at a higher price). So,
there are huge cost savings for SMBs in using mobile applications.
2. Cloud-based Services and Moving Business Processes to Hosted Environments

In addition to the above, SMBs are cutting costs through cloud-based services and a number of newplayers are entering the market each day. SMBs do not have a lot of money to invest in technology orsoftware. For technology they already have or was purchased, they must replace older technology andhave large maintenance and upgrade costs. Bank loans and credit lines are also unavailable to mostSMBs due to the credit crisis and the economic downturn. This means that SMBs will look to cloudbased services for basic functions such as e-mail hosting, messaging, financial software, video streaming
and other applications such as customer relationship management (CRM) software and solutions.
According to Mr. Steve Hilton of Analysys Mason (a leading research agency for technology trends),
2011 will be a year of strong growth for SMBs based on Cloud-based services and mobile applications.
Key Advantages of Managing Applications Virtually through Mobile and Cloud-Based Services
The major advantage to an SMB in using mobile applications or cloud-based services is the tremendous
cost savings that can be realized. Instead of purchasing accounting software or other tools necessary torun a business, the applications can be accessed in “the cloud” for a fraction of the cost with possible
savings of 70% or more. Currently, SMBs have to purchase in-house equipment and software that age
over time and are expensive to replace and maintain. All of those costs are non-existent in a mobile or
cloud-based service environment.
In interviews we conducted with local cloud-based services companies; we found that the cost of
subscribing to basic services on average starts at about US$ 35/month for small companies (we spokewith Comcast, Verizon, and Microsoft).
Challenges:
Security and the protection of data are probably the biggest concerns facing the mobile computing andhosted (cloud-based) market. There are a lot of companies who do not want the risk of having their datacompromised by loading it onto a cloud-based or mobile application.
Major Players in the Mobile Applications Arena:
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SprintVerizonAT&T
AndroidApple
RIM
Symbian

Major Players in Cloud Computing:••Microsoft
Salesforce.com

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RightScale
GoogleNetSuite
Rackspace
GoGridSMBs have an opportunity to grow and flourish by using mobile applications under development at themobile telecom providers. In addition, hosted solutions available through cloud-based providers offer an
inexpensive and efficient means for SMBs to operate their businesses more efficiently and provide greater
customer satisfaction. In the US, SMBs are leading the way toward the revitalization of the economy andthey will succeed by accessing new products and services in a virtual environment.
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