MJ's Business IT Blog

Check Out Jenaly's Latest Monthly Newsletter

Sorry for the lack of posts over the last month or so.  It's been a very busy time for me, personally and professionally.  I am committed to getting back on track with my postings, but in the meantime, please check out Jenaly's latest monthly newsletter, which launched today.  You may read it online or download a PDF copy at www.jenalyfyit.com.

Data Law Changing

The following article was published in today's Portsmouth Herald and features an interview with me and a mention of our upcoming data privacy seminar on February 1st.

Local expert says compliance will be difficult; his company offers seminar

By Michael McCord
news@seacoastonline.com

January 25, 2010 12:57 PM

PORTSMOUTH — New and sweeping data privacy regulations in Massachusetts could have an impact on New Hampshire and Maine businesses.

The new law, which goes into effect on March 1 and touches all types of businesses that have even one Massachusetts customer, will be the focus of a free seminar for business professionals on Feb. 1 at the Sheraton Harborside Hotel in Portsmouth.

“Any business in New Hampshire and Maine that deals with or handles any private information of Massachusetts customers has to comply with this law,” said technology expert MJ Shoer, one of the co-hosts of the seminar. “Even a doctor in Hampton with one patient from Amesbury (Mass.) will have to be in compliance.”

Shoer, president of Jenaly Technology Group in Portsmouth, will be joined by Warren Mackensen of Mackensen & Company in Hampton. Mackenson created a compliance software package called ProTracker Software in anticipation of stricter data privacy regulations.

Shoer said he will share his insight from oral and written testimony he delivered last year to the U.S. House of Representatives — and to the Massachusetts Office of Consumer Affairs and Business Regulation, which Shoer said affected the final form of this new law.

“In its early form, it was almost impossible to comply with the law,” Shoer said. “The potential regulations would be a massive hurdle for small business. I said in my testimony that it's got to be relevant and understandable and not such a burden.”

Shoer said the Massachusetts regulation came about in the aftermath of data breaches at TJX Corp. (the parent company of TJ Maxx and Marshalls) discovered in 2007 and at Hannaford Brothers in 2007 and 2008. TJX is based in Massachusetts and over an 18-month period beginning in 2005 information from more 45 million debit and credit cards was systemically stolen. In 2009, TJX agreed to a $9.75 million settlement to 41 states covered in the breach, including Maine, Massachusetts and New Hampshire.

Shoer said that he agrees in principle with the spirit of the law because the goal “is to prevent identity theft.” But with states writing their own data protection laws, the potential for having “30 different sets of regulations from 30 different states” can be a business expense burden.

“This is a touchy subject,” said Shoer, who is a technology columnist with the Herald. In the worst-case scenario, companies could find themselves going out of business or take the risk of skirting or ignoring regulations altogether, he said. The Massachusetts law “is the most stringent in the country,” Shoer said, and has already been copied by Nevada. A single case of data breach that leads to the loss of customer information has a fine of $5,000.

“What it means is that if you do have a data breach and they find out you didn't take reasonable steps to safeguard your data, it will be a whole lot of trouble,” Shoer said. “No one is really surprised (by the regulations). We have been educating our clients for more than a year that this is coming and we have been driving the point home. The most important step is to show your organization takes it seriously.” Businesses are required to have a written information security policy, along with several other safeguards, to ensure compliance. Shoer said he will hand out a lengthy list of guidelines for the Massachusetts law.

“My personal belief is that most businesses are aware and are already mostly in compliance,” Shoer said. “Unlike the Y2K scare, this won't cost companies tens of thousands of dollars to be in compliance.” One of thoe tools that will be presented at the seminar, Shoer said, is the recently launched Information Security Program from ProTracker Software, which claims to be an affordable, user-friendly tool to address compliance with the new regulatory requirements.

Shoer said the goal of the seminar is to educate and “help strengthen the business community” and he wouldn't mind making connections with potential clients.
“The cost of no compliance is potentially massive,” Shoer said. “But this is not just a technology problem — it's a human problem as well if we forget to educate people on the basics of data protection.”

Sometimes low-tech common sense can go a long way. Shoer said a client of his firm was good at protecting electronic data but had a major and obvious security problem — rows of unlocked file cabinets with confidential customer information that happened to be near a sometimes unguarded front door.

Newest Column: TechTalk: The changing landscape of the smartphone market

The ads have been coming out of the woodwork lately, whether for the iPhone, the BlackBerry, Windows Mobile and now Android smartphones. The mobile phone market is changing and smartphones are taking hold across businesses large and small. What was once the domain of BlackBerry and its maker Research in Motion is now becoming dominated by the iPhone and its most direct competition to date, Android.

In past columns, I have reviewed the BlackBerry, Windows Mobile and the iPhone in some depth. For this column, I am going to provide an overview of the newest mobile phone operating system, Android, and its likely place in the business market and how it compares to existing operating systems.

Android is Google's first foray into the software operating system market and the mobile phone market specifically. Many hardware manufacturers and mobile phone carriers are lining up to support it. Hardware is currently available from HTC and Motorola, both giants in the mobile phone market and, more specifically, the smartphone market. Smartphones are mobile phones that add PDA functionality to the mix. They provide real time synchronization with e-mail servers as well as Web browsing and a host of other applications. In the business community, smartphones are now just as common, if not more so, than basic mobile phones.

The Motorola Droid from Verizon Wireless is probably the most widely known Android phone on the market today. However, Google has recently introduced its own phone, the NexusOne, which is manufactured by HTC and currently available on theT-Mobile network. Every major carrier now offers one or more Android smartphones.

I have been testing a Motorola Droid on the Verizon Wireless network, and I have to say I am impressed. That's not to say I have not been through an adjustment period, as I have. The interface is very intuitive, and once you get accustomed to it, it is very easy to work with and most impressively, it is very, very fast and stable. Because of the nature of our business, we have users with different types of smartphones in our office. As compared to Windows Mobile and BlackBerry devices, the Droid is extremely fast. Even compared to the iPhone, the current king of the smartphone market according to many, the Droid, is fast, both in terms of using the phone itself as well as browsing the Web. The Web browser, as you might expect, is based on Google's Chrome browser. It delivers an online experience that rivals any desktop Web browser.

Google has packed the Android operating system with a wealth of useful features, most notably voice-enabled search and dialing.

While not new, these features are very reliable on the Android platform. As an example, while driving last week with my family, we decided to go out to dinner. I tapped the voice search button on the phone, spoke the name of the restaurant and the town it is located in and in about two seconds, the phone pulled up links to the restaurant and the phone number. I tapped the phone number and was connected to the restaurant in about five seconds from start to finish.

The main concern with all these devices in a business environment is security and the ability to seamlessly synchronize with the company mail server.

Most businesses use Microsoft Exchange and if you also use a BlackBerry, will be running BlackBerry Enterprise Server. With Exchange Server ActiveSync, Windows Mobile and the iPhone are able to synchronize with the server out of the box.

Android provides this capability as well, though not as full-featured, but there are many inexpensive third party tools available that provide full support, including for the security profiles you have in use on your mail server.

So, as a business device, the Android is a very capable option to be considered. If you find yourself considering what mobile devices your business should support, be sure that Android is on the list, and base your decision on what platform will best support your need.

My Latest Column: Tech Talk: Some interesting tech trends to watch in the coming year

My latest column was published in today's Portsmouth Herald.

I have reprinted it here.  Enjoy!

As we move into the second decade of this millennium, there is no shortage of technology developments to keep an eye on for your business.

Perhaps the single most important issue facing businesses in the new year is the proper security of information you work with on a daily basis. In response to high-profile data privacy breaches, many states and even the federal government are enacting laws requiring businesses to get much more deliberate about how they work with and store private customer data. Massachusetts is implementing perhaps the strictest such law in the nation in March. Even businesses outside of that state will be required to comply with this law. If you don't have a defined information security policy in your business, you need one now. Talk with your IT partner to be sure you understand what will be required to be in compliance.

Mobile technologies continue to become more prevalent in the workplace and more and more people need to work wherever they happen to be at any given time. Secure remote computing has been an option for even the smallest of businesses for many years, but these capabilities continue to mature and develop to the point where the work experience remotely is nearly identical to that in the office.

Smartphones continue to be one of the fastest growing segments of mobile computing in businesses. It's almost becoming a rarity to see a business person with a traditional mobile phone as opposed to a smartphone that allows for secure, wireless access to company data. Synchronization of e-mail, calendar, contacts and to-do lists is almost a given today. More and more companies are also leveraging smartphones to deploy access to business applications without the need for more robust computer like a notebook or tablet. The advent of the iPhone and now the Droid mobile operating systems is providing more ubiquitous options for businesses to pursue.

In the area of traditional mobile computing, notebook and tablet PCs are powerful enough to replace most desktop computers for any workers who require the freedom they provide. As with every portable computing device, the key is to be able to properly secure data contained on them, in the event of loss or theft.

Within the office, the convergence of voice and data services continues to accelerate. Voice Over IP has moved squarely into the mainstream and many businesses are moving away from traditional phone services to the affordability and flexibility of VoIP services. This also moves organizations toward the elusive goal of what's referred to as unified communications, where all your communications tools are accessed in one place.

The good news as we move into 2010, is that technology has an excellent track record for improvements that make our lives easier along with decreasing costs over time.

MJ Shoer is president and virtual chief technology officer of Jenaly Technology Group, Inc., a Portsmouth-based outsourced IT services firm. E-mail him at mshoer@jenaly.com.

A Gift With Purpose

This year, the team at Jenaly has decided to do something different for the holidays.  Each year, we like to thank our clients for the business in a unique way.  This year, we decided to help the community as well.  Instead of spending money on individual gifts for our clients, we have decided to make a sizable contribution to the Gift of Warmth being administered bySeacost Media Group.  The Gift of Warmth campaign solicits voluntary financial contributions to a fund that distributed money to families in need of funds to heat their homes during the winter months.  The money is provided to Rockingham Community Action for distribution in the communities they serve.  Our staff also decided that instead of giving each other Yankee Swap gifts at our annual holiday party, that they would personally add to the amount we donate as a company.  We are making this donation in honor of each and every one of our clients, as a sincere gesture of our thanks and to do something good for the community through our gift giving.

The entire Jenaly Team wishes you and your families the very happiest of Holidays and a very Happy New Year!  Stay Warm!

New Column Published: Tech Talk: New Mass. data privacy law will affect your business in 2010

My latest column was published in today's Portsmouth Herald.

Over the last year, I have written several columns on information security. If you've been reading this column for a while, you may recall I testified before Congress last spring on this topic, and more recently to the Massachusetts Office of Consumer Affairs and Business Regulation on the new data privacy laws being enacted in that state. As 2009 nears a close, it's critically important that you be aware of the impact of the Massachusetts law on your business.

On March 1, 201 CMR 17.00 will go into effect and businesses across the United States will need to be in compliance. You may wonder why a business located outside Massachusetts will need to comply with the law. It's quite simple. Massachusetts enacted the most stringent data privacy law in the country, which basically says that if you do business with a resident of, or company from, the state, you will be required to protect the private information of those residents or companies. So, a business in New Hampshire or Maine that does business in Massachusetts needs to be in compliance.

What exactly does being in compliance mean? It means you have taken the necessary steps to protect personal information. The law defines personal information as "first name and last name or first initial and last name in combination with any one or more of the following data elements that relate to such resident: (a) Social Security number; (b) driver's license number or state-issued identification card number; or (c) financial account number, or credit or debit card number, with or without any required security code, access code, personal identification number or password, that would permit access to a resident's financial account; provided, however, that 'Personal information' shall not include information lawfully obtained from publicly available information, or from federal, state or local government records lawfully made available to the general public."

Also of significance is the fact these protections pertain to not only electronically stored and transmitted information but also hard copy formats. So, if you store this type of information in file cabinets, those file cabinets must be able to be secured and their access monitored.

In other words, this law applies to both high- and low-tech forms of private data. Educating and training employees who come in contact with this type of information will be critically important.

For a business to comply with this law, it needs to develop a written information security policy, or WISP. This policy document will address all aspects of this law, including training for all personnel, so it will be very important to develop a comprehensive training program that identifies what data your business works with that will be covered by this law and how that data must be handled. Additionally, personnel will need to be trained on how they can communicate this information, electronically or otherwise, and how to properly destroy it. You no sooner want to send private information via insecure e-mail than toss it in the office Dumpster. Both are violations of the law.

From a technology standpoint, there are several, affordable technologies that will address the requirements of the law. E-mail encryption technologies are available that make it easy and cost effective to securely e-mail private information to those you need to communicate it to. There are also many options to encrypt your portable computers that will contain this type of information, as well as USB keys that may be used in the company.

The key is to employ technologies that allow you to centrally manage this so you can track these devices and ensure they are used properly. When it comes to mobile phones, it gets a little more complicated, but you should only allow mobile devices that may be centrally managed and remotely wiped should they become lost or stolen, to ensure no private data is lost.

There are many tools available that will help you address the requirements of this new law. The Massachusetts law is setting the bar for the rest of the country and it is only a matter of time before more states enact similar laws. Several already have variations of the Massachusetts law. It's also likely that we will see some type of umbrella legislation emerge at the federal level, we just don't know when yet.

So, my advice for the new year is to talk with your trusted IT partner and make a plan for what you need to do to be compliant in advance of March 1. Penalties start at $5,000 and go up rapidly, so the cost of compliance will pale in comparison to the potential risk of not.

MJ Shoer is president and virtual chief technology officer of Jenaly Technology Group, Inc., a Portsmouth-based outsourced IT services firm. E-mail him at mshoer@jenaly.com.

Latest Column Published: Tech Talk: What to give a techy this holiday season?

My latest column, published in The Portsmouth Herald on Thanksgiving Day...

We're moving into that most special time of the year, so I thought I should devote this column to some technology gift ideas, like I have done in years past. When I looked back over the last several years of writing this column, I had to laugh. Not much has changed, just the particulars.

Game consoles, smartphones, portable computers; these are still the hot items this holiday season, just in their latest form. You've probably already noticed the increase in advertising for both the Microsoft Xbox 360 and the Sony PS3. Both are excellent game consoles and appeal to just about any gamer out there. Serious gamers have both, and probably a Nintendo Wii as well. These remain the mainstays of the gaming market, and you won't go wrong giving one of these as a gift. The Xbox 360 and PS3 are probably the most similar, while the Wii adds a more interactive component. If you don't have one of the systems yet, your best bet is to go a retail store and try them out to get a sense of which is best for your intended recipient. They each have their strengths.

In the smartphone world, where the iPhone has been the major focus since its release, the new Droid phones, based on Google's Android operating system, are giving the iPhone its first serious competition. It's far too soon to know if the Droid will make a dent against the iPhone, but it's definitely getting attention and seems to be off to a strong start. As with any new technology, time will be the determining factor as real world experience takes hold and we see what support the new phone will get among software developers who make applications that make these devices shine. If you have an early adopter on your gift list, the Droid will probably make them very happy.

If you're looking for an inexpensive portable computer, check out the variety of netbooks on the market. If you're not familiar with netbooks, think of them as ultralight notebooks that are a great option for those who need to get online and use the Internet. In their original form, netbooks were somewhat limited, but like all technology, they have come a long way in short time and now offer reasonable power. If the primary use for a netbook is e-mail, Web surfing and some basic tasks like word processing, a netbook, many at less than $300, offers an attractive option.

While the three items mentioned above all carry price tags in the hundreds of dollars, there are ample technology gifts that are less expensive as well. Whether it's a digital photo frame, digital camera, MP3 player or USB key, you have more options this year than ever. Apple recently updated the iPod Nano line to include a video camera and FM radio tuner and lowered the price slightly. Have fun shopping!

You may also use this time to give your business a holiday gift. Many businesses are able to take advantage of the holidays to enjoy a slightly slower pace of business, which provides an excellent opportunity to reflect on your information technology infrastructure and what you may want to do in the coming year to give your business an edge.

Perhaps most importantly, there are some very strict data privacy laws coming on the books in 2010 and now is an excellent time to review your information security practices and ensure you will be in compliance with these laws and not accidentally expose your business to any legal issues related to this. Technologies exist to make you compliant and these technologies are not as expensive as they once were, nor are they are complicated to use as you may fear. Information security will continue to grow in importance as more and more business is done electronically, and now is the best time to get in front of this and present a proactive presence to your clients.

The closing of one year and beginning of another is also an excellent time to review your business continuity plans and be certain you have clear plans to deal with anything unexpected. I've written a lot in the past about this, so if this interests you, search the archives of Seacoastonline.com for my past column about backup and disaster recovery. You'll find there is a lot to consider when evaluating your disaster recovery and business continuity plans. I always recommend you review this annually, if not more frequently. I may sound like a broken record, but better to have a plan and not need it than need a plan and not have it.

Does Green IT Really Have An ROI?

It's a very fair question.  Heather Clancy, one of the industries most respected journalists (and someone I like to call a friend) posted a great piece about this today on her blog, GreenTech Pastures.  Heather points to several interesting facts, many based on a recent report by Computer Economics that points to the hard ROI being difficut to quantify, which I agree with.

However, whether the ROI is easily measured in dollars is one thing.  Whether adopting Green IT practices is the right thing to do is another entirely.  Heather quotes some interesting statistics related to small and large company's adoption of Green IT.  While it's clear that large organizations are the most active in this space, small businesses have plenty to be proud of.

I look at our own client base as a representative sampling of the overall small business community.  I find the Northeast region, New England in particular, to be an interesting paradox of traditional Yankee conservatism mixed with some very progressive elements.  Initiatives like Green IT have traction in this region of the country.  Many of our clients came to us over a year ago asking what they could do to "green up".  Some were motivated to cut their energy costs, others wanted to prolong the life of their IT investments and others just felt it was the right thing to do.  Regarless of the reason, Green IT is making a positive difference, even if it is not in direct financial measures to the bottom line.

My First Magazine Cover Story

Talk about a nice way to start off your weekend...I just learned that a recent interview I did with a reporter is the cover story for this months Channelpro SMB magazine.  I have to admit, this is pretty exciting!  I like to think that I impart good information when I am interviewed for a story.  Whether it's a story that will benefit our clients and prospective clients, or one that benefits our industry and my peers, I hope that I add value and help other businesses.  My college fraternity, Phi Kappa Theta, has a great motto: "Give Expecting Nothing Thereof".  I like to think that I live my life by this and other values that are important to me.  When something like this comes along, it makes me think I'm doing good things.  The article is linked about and here's the text and the cover...

Staying Ahead of the Cloud

by ChannelPro-SMB November 12, 2009 11:59 AM

Posted in: Technology Trends Cloud/SaaS

Not only are cloud services here to stay, but they'll likely be mainstream among SMBs in just 18 to 24 months. Learn what you can do to get ready.

By Carol Hildebrand

The technology industry is undergoing massive change, as vendors reinvent technology strategies with offerings such as Software as a Service (SaaS) or Platform as a Service (PaaS.) Loosely known as cloud computing, these new services promise cost-cutting opportunities that strongly appeal to SMBs-the primary market for many channel partners.

"Cloud and hosted services have disproportionately high benefits for small companies because the cost of in-house IT, support, hardware, and the like really hurts their operating expenses and bottom line," says Paul DeGroot, an analyst at Microsoft-focused research firm Directions on Microsoft.

Offloading those chores to cloud vendors may be a smart choice for SMBs, but that cost reduction will mean lost revenue to many VARs. "Our research shows that as more and more software technology moves to the cloud, it becomes of greater concern to VARs, particularly in the SMB market," says Tim Harmon, a senior analyst at Forrester Research Inc. "All the on-premise stuff that gets eliminated in the cloud takes away from VARs' pocketbooks."

There's no question that cloud computing will affect many channel partners that currently depend on back-office work for their bread and butter. But what are the real ramifications? Will the cloud prove toxic to traditional VARs, or does it provide a promising new business opportunity?  

A SHIFTING BUSINESS MODEL
The channel's major concern about cloud computing is that of revenue replacement. Cloud vendors will depend on the partner channel to sell cloud services, but the revenue model differs-most VARs will receive a percentage of the sale for bringing the business to cloud vendors, and will essentially serve as go-betweens; cloud vendors will take care of all the hosting.

"Say a VAR receives 18 percent of the deal for the first year, and 6 percent ongoing after that," says Darren Bibby, program director for software channels research at analyst firm IDC. "On the negative side, this model takes away opportunities for software resale and makes things simple enough that some of the services work around the technology has gone. On the positive side, you get an ongoing revenue stream."

One thing is certain: Cloud computing will bring change, and channel partners must respond. "Offering cloud solutions from companies including Google, Microsoft, and Amazon is a necessity," says Robert Dempsey, CEO of Atlantic Dominion Solutions, a channel partner in Winter Park, Fla. "By adding cloud services, the average channel pro can offer highly scalable, on-demand solutions that don't require large cash outlays."

But while most experts and partners agree that change is necessary, most have not yet built or implemented a cloud strategy. For many, questions remain about what strategies will work and when they should be implemented.

Most channel partners point to low demand as one reason for the foot-dragging. "Have any clients taken advantage of any cloud capabilities? Yes, but not many as yet," says MJ Shoer, president and virtual chief technology officer at Jenaly Technology Group Inc., a channel partner in Portsmouth, N.H. "Has it negatively affected our revenue or services?  No, not yet."

Another risk lies in the need to provide reliable bandwidth to service the cloud. "Just recently I had a discussion with a client about cloud potential for their organization, and their intent is to develop, in essence, a private cloud of their own, because they have had too many instances of their connectivity being interrupted by cable cuts due to construction," says Shoer. "I think the major risk factor is the balance of offline vs. online access to address that issue. If this can be resolved, which I suspect it will, that will help considerably."

Dempsey also points to the risk of alienating current vendor partners by adding cloud services, as well as the learning curve the partner will have to tackle on both the provider and customer side.

TIME TO PLAN
These issues may slow cloud computing, but they won't stop it. Experts such as Forrester's Harmon predict that cloud computing will reach mainstream success around 2011 or 2012. "Cloud offerings are going a little slower than we thought, and that gives VARs a chance to rethink business models," he says.

What will those new business models look like? It depends on the VAR, its market, and areas of expertise.

Cloud vendors are encouraging partners to shift their focus from back-office service to applications and strategic consulting. "It's very difficult for a small player to defend its turf against the likes of Google and Microsoft on the technology front," says Directions on Microsoft's DeGroot. "Building expertise higher up in the stack, and in particular understanding your customers' business requirements-which Google, Microsoft, and Amazon will never do-and being able to translate those needs into IT solutions, puts you in a much stronger position."

Others envision a more evolutionary move, in which they add cloud services but keep the more traditional lines of work as long as they generate revenue. "I see this maturing into a hybrid model of sorts, where what we consider a traditional infrastructure will remain in place and likely be complemented by cloud services that add to and enhance the infrastructure and the capabilities that support growth for the business," says Shoer.

Even the channel partners that stick to the traditional model will need to adjust. "If you make the decision to stay doing technology reselling and on-premise implementations, you need to get very focused and very good around a certain set of solutions like security or CRM," says Tiffani Bova, research vice president of indirect channel programs and sales strategies at Gartner Inc. "The idea is to become an expert at something-don't be a generalist."

THREE STEPS TO SUCCESS
The vast majority of channel partners will end up offering cloud services in some capacity, so they need to build a strategy that dovetails with their client profile. Dive in and use these practical tactics to help ensure success.

1. Hit the books. Channel partners need to know the ins and outs of cloud technology and services in order to offer knowledgeable advice about use. DeGroot suggests that partners take the time to experiment with cloud offerings, which are often free.

"Anoint someone (or two) as the spear-carrier and give them time to train and play with the technology," he suggests. "Read case studies to get more ideas. Attend a conference or two. Then brainstorm customer problems in the light of this new knowledge."

Taking the time to build expertise in cloud technology will not only help partners integrate cloud computing into their existing portfolio, but will also help them build knowledge leadership with their client base.

"This gives you the opportunity to actually be a market leader with your customers, because you've invested in knowledge that they lack (and perhaps none of your competitors have) and can accurately weigh its risks and benefits," says DeGroot. "[Cloud] may not work for everyone, but it is a stone that customers should not leave unturned. The partner who helps them turn stones over will get paid. The partner who ignores it could be unpleasantly surprised when the customer learns it from someone else."

2. Build specialized expertise. As channel partners evaluate what's out in the cloud, it's important to sharply focus their cloud strategies-to go deep rather than broad, says Bibby of IDC. He suggests that partners use cloud computing to build services around expertise in a particular business function or industry. "It's all about replacing technical expertise that's been the domain of most partners with higher-value expertise around a business domain, or a horizontal function like selling and marketing," says Bibby.

Another option is to build expertise around the management of cloud services, something Harmon refers to as vendor management office (VMO) services. "It involves tasks such as spend analysis, contract negotiations, and service-level agreements," says Harmon. "If a client has five SaaS providers sourcing technology, the VAR can act as a centralized office to make sure that everything is synched and meeting business needs."

These new business-oriented offerings will open up new skill requirements as well as sales channels, says Bibby. "Partners are hiring people skilled in a specific domain expertise," he says. "One CRM partner I talked to is starting to hire people with sales and marketing backgrounds. He can teach them the technology around CRM, and that's easier to do than teach a technical person about sales and marketing."

It also means that channel partners may find a new selling target. "As technology complexity drops and business domain expertise rises, partners may be selling more to line-of-business executives versus IT," says Harmon. "Partners can play the role of broker between LOB and IT."

3. Reevaluate partner programs. As channel partners reevaluate their business models, they should also consider which partner programs will help them successfully adjust. Cloud vendors' partner programs are still in flux and differ markedly.

According to The Changing Yin and Yang of Tech Vendors and Channel Partners, a recent report from Forrester, "As vendors and channel partners seek out new markets and niches in the boiling ecosystem of the tech industry, they are rewriting the role and relationship rules that have dominated the tech value chain for decades. ... Channel partners need to start shopping for the best deals-a daunting move in these economic times, but one that is necessitated by long-term changes in the tech industry."

"I would look at the partner programs in place with each vendor," says Atlantic Dominion Solutions' Dempsey. "Microsoft traditionally has great loyalty to their channel partners, and I believe will continue to do so. Amazon doesn't have a formal channel in place per se-however, they do have a partner program where they promote services and products that partners have built on top of their infrastructure. Also look at the SLAs provided by each vendor, and assume only as much risk as you can handle."

Jenaly's Shoer says that it's important to find the partner programs that mesh with each VAR's specific strategy. "Partner with cloud providers that make sense for your clients, especially those that allow you to offer private-label cloud services under your own brand and be the cloud solution for your clients, rather than having them ask you to help them implement someone else's solution," he says. "The opportunities to do so exist."

TIME TO GET ON THE BANDWAGON
There's no doubt that as cloud computing spreads across the business landscape,  most channel partners will make significant adjustments in response. Those that ignore it run the risk of disintermediation from a business world that has moved to new technology. "This move is happening whether companies like it or not," says Dempsey. "It's time to get on the bandwagon or get left behind."

For those that make the leap, cloud computing could be a key step in moving them from the back office to SMB boardrooms. "I don't see this move up the stack as any different from the ongoing need to do this across our business," says Shoer. "This is just the latest technology development that needs to be integrated into the services that we provide to our clients. The key is to provide these services as a business partner and closely trusted adviser, and not as the ‘computer guy.'"

CAROL HILDEBRAND is a business and technology writer based in Wellesley, Mass.

Copyright © 2009  EH Publishing, Inc | 111 Speen Street, Suite 200, P.O. Box 989 Framingham, MA 01701-2000 |
ChannelPro-SMB Team: 919-325-0108 | Fax: 919-325-0121. All Rights Reserved.

Tech Talk: An IT investment that will save you money

My latest technology article was published today in The Portsmouth Herald.  A copy of the article follows:

In these tough economic times, every penny spent needs to be justified.

Information technology investments are no exception.

One of many IT investments that may be able to bring tangible savings to your bottom line is video conferencing.

Video conferencing systems used to be reserved for major corporations that could afford the high cost of the dedicated video cameras and display monitors that were required, as well as expensive high bandwidth or Internet bandwidth that would support the video traffic.

The advancement of the basic camera technology, not to mention the associated software, display technologies and low-cost bandwidth have changed this dramatically.

Today, companies of all sizes can implement cost-effective video conferencing solutions that may save them thousands of dollars in travel-related costs.

Flat panel display monitors have become very affordable and the video quality, especially in high-definition models, is perfect for video conferencing. Crisp and clear video, combined with equally clear audio, may be transmitted over standard Internet connections.

You may even use a form of video conferencing on your personal computer, in the form of a Web cam and the numerous online services like Skype, which offer the ability to easily video conference with one or more people between multiple computers.

In fact, it may be argued services like Skype forced video conferencing into the mainstream and pushed the large manufacturers to answer the threat from upstart services like this, by making their technologies more affordable and usable.

Many organizations are using the built-in video capabilities in products like Skype and various instant messaging software to carry on one-on-one meetings between individuals in different locations.

Productivity gains are significant, as coworkers are able to collaborate more interactively across wide distances.

Many software applications available for video conferencing also include screen and file sharing capabilities, allowing you to take the video experience to a higher level.

In addition to being able to talk with and see people you are working with at the remote location, you may also, simultaneously, share your computer screen or work on a shared document interactively. The benefits are obvious.

If you haven't investigated video conferencing, you may want to do so. It's easy to start small and test the viability of this technology for your business.

An individual Web cam of reasonable quality costs far less than $100 and many of the software applications are free, at least in limited form.

If you bought any notebook or netbook portable computers lately, they may very well have a camera built into the screen, looking at you every day just waiting to be used. Test it out between a few people and see if it delivers a tangible benefit. If it does, you may want to explore extending this to other individuals or even equip full conference rooms to support multi-person meetings.

As the technology continues to spread and standards take hold in the market, you will be able to initiate video based meetings with customers, partners and others. It's a great technology that has taken advantage of various technology developments to bring the cost down and make it a viable solution for companies of all sizes.

MJ Shoer is president and virtual chief technology officer of Jenaly Technology Group, a Portsmouth-based outsourced IT services firm. He may be reached at mshoer@jenaly.com.