Confusion in the Cloud

I've been trying to get my head around the suite of web applications offered by Microsoft and Google and it's not easy.  This may be partly due to my simple brain but after several hours of looking at their competing offerings, I'm still not entirely clear how, for example, Microsoft's Office Live, Live Mesh and Business Productivity Online Standard Suite (BPOS) work together/overlap etc.  BPOS looks interesting and I will be playing with it later in the month but the pricing scheme is not obvious - what's the difference between "Office SharePoint Online Standard" and "Sharepoint Online Deskless Worker"?  Microsoft do have that information on their website but it needs some deciphering.  Google's suite of services are also confusing - for example, what's the difference between Google Sites and Apps?

Anyway, my point, for what it's worth, is that if these corporations expect small companies with little time, money, expertise or interest to start working in the cloud then they'd better come up with some less confusing and more transparent propositions.

3 key barriers to SME cloud adoption

Computer Weekly reports on some research from ICM* which shows SMEs in the UK are thinking about investing in IT again but are increasingly looking at outsourced solutions. 

Based on my research into SMEs and their plans for technology investments, I think there may be something in the ICM research but there are still some big barriers to the adoption of many cloud services.  I would say the 3 key barriers that providers, and the sector more generally, need to overcome are:

1. Lack of knowledge about the offerings.  New cloud/virtual solutions for communications, marketing, project management etc. are springing up every day and this is causing confusion amongst small companies which don't have the resources to cut through the noise.  One solution for providers is to offer case studies showing how real companies have used their services and the benefits they've enabled - videos can be a good way of delivering this if they can show real people and real, believable situations;

2. Lack of trust in service providers.  No sensible organisation entrusts its data with a web service provider without believing it will be kept secure and be available whenever needed.  Although there may be some very practical reasons for moving parts of your operations into the cloud, there is still a lot of comfort to be had from knowing all your data is safe and sound on that server in the cupboard next to the office kettle.  Again, case studies can be a help here as well as transparent information about security policies, backup systems etc.;

3. Lack of after-sales support.  Providing after-sales support has always been a problem for suppliers to SMEs.  In many cases it just isn't cost-effective but small companies, understandably, want to be treated by their suppliers the same as larger customers.  How can suppliers deliver high-touch, low-cost support?  I would suggest that part of the answer also lies in the cloud.  If you've got a popular service then use your customers as your support team.  This has been going on for a number of years with providers hosting online discussion fora where customers and potential customers can pose questions and receive answers from other users as well as service provider employees.  37 Signals are an excellent example of this with vibrant discussion fora for all their service offerings.  As well as helping existing customers it also inspires confidence amongst prospective customers who can see the help that is on offer.

There is a lot that service providers can do individually here but there is also a good case for providers to work together to establish credibility and trust in the marketplace.  This is starting to happen with events like the upcoming Cloud Computing World Forum bringing suppliers together.

*Sponsored by Rise, a hosting service provider, and only 100 companies surveyed so results should be treated with a little caution

SMEs in the cloud

Some interesting research from Box.net on how their customers use their data hosting service seems to indicate that SMEs (or SMBs as they tend to be called in the US) are embracing cloud-based services like Box and Google Docs/Apps.  Of course the survey is biased as it only included Box customers but over half of the 8,000 people surveyed use Box in conjunction with Google Apps and Docs while 13% use Box with Microsoft Sharepoint.  According to Box, their service is often used by Sharepoint users because it makes sharing files outside the enterprise easier by getting round firewall and permission issues.  The graphic I've taken from the research report (also available as a PDF) shows the, not surprising, inverse relationship between company size and use of Google Apps/Docs and Sharepoint.