Wireless Technology Supported by SMBs
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1 ISSUE BRIEF Wireless Technology Supported by SMBs The Wireless Landscape Small to medium sized businesses (SMB), those with less that 1000 employees, face complex decisions when they seek to employ wireless technologies in support of their business processes. Wireless is characterized by many competing vendors, many competing products and service plans and many competing technologies. Choosing the wrong carrier or technology can strand investment or increase costs as equipment or applications are made obsolete by developments in the market. How is the SMB going to make the correct decision on technology selection? SMBs that want to minimize the risks associated with technology selection must understand the technology that is available and then must understand how best-of-class companies are deploying that technology. Technologies in Use by SMBs One way to assess technology selections is to look at what other similarly placed companies are doing. Sixty-nine percent of market-leading SMBs are deploying mobile broadband (Please see Figure 1: SMB Use of Mobile Wireless Broadband, p.2), including such things as laptop aircards, wireless PDAs and data capable cellphones. When we look at those that intend to have mobile broadband deployed within three years, the total rises to over 82 percent. Only 23 percent say they have no plans. This is significant since it shows that SMBs are increasingly enabling mobile operations, primarily to enable their employees to operate closer to their customers Nemertes Research 2008
2 Figure 1: SMB Use of Mobile Wireless Broadband Of those SMBs that indicate that they use wireless broadband, aircards and BlackBerry devices make up most of the devices supported. Notably, iphones are also in use (Please see Figure 2: SMB Wireless Devices Supported, p.3). The implication is that SMBs are finding ways to use consumer-oriented technology for business purposes. In fact, this is the case. SMB decision makers indicate that they are using wireless as a means for enabling field forces and as a way to make their employees more mobile and to place them closer to the customer. In many cases, this means enabling the employee s personal cell phone to access business data. However, before mobility applications can be deployed, it is important to understand whether the carrier s wireless data service can support the application that is being contemplated. If the data rate being provided is too slow or if coverage is spotty, then applications that are sensitive to time outs or which depend on large data downloads may not work well. To a large extent, the service provided by the carrier depends on the technology that it has selected (second generation wireless, third generation wireless, etc.) and the coverage of that technology. It is important to have discussions with the carrier on its current technology and its plans for evolving that technology prior to deploying wireless mobility solutions Nemertes Research 2008
3 Figure 2: SMB Wireless Devices Supported Looking at WiFi, we see that SMBs that either currently use or are anticipating using WiFi within three years amount to 46 percent (Please see Figure 3: SMB Use of, p.4). Another 15 percent are evaluating such technology. Since many SMBs lack the large campus environments that characterize large business, this is a strong indication that WiFi is being placed as an alternative to fixed networks. The reason for this is simple: cost. Placing a WiFi network that can support both voice and desktop data access is much cheaper than wiring up a small office for Ethernet. In many cases, a single wireless router can take the place of several wired devices plus the wiring to support them. A principal issue, though, is that that there are now several flavors of WiFi. WiFi has evolved from strictly production based wireless telemetry with low data transfer rates, to very capable data rates such as that provided by the current g standard which has up to 54 Mbps of bandwidth Nemertes Research 2008
4 Now, however, the new n equipment is becoming available n, although not an approved standard, can deliver very impressive bandwidth beginning at 65 Mbp and extending to as high as 300 Mbps in a half duplex (one way) mode. This means that n can deliver performance that is nearly as good as any dedicated wired network. Figure 3: SMB Use of WiFi Clearly, market leading SMBs are adopting wireless, both WiFi and cellular, to enable business processes. SMBs that are not may find themselves at a significant disadvantage as more mobile businesses out maneuver them to access customers and market opportunities. Recommendations Know your technologies. SMBs should not depend solely on vendors for their technology information. Although vendors are usually clear about what their technology can do, many are vague about what their technology can t do. SMBs should find and routinely access an independent source for objective technology information Nemertes Research 2008
5 Know your carriers. Small businesses have many carrier choices. Understanding those carriers and their technology evolution plans is essential to both obtaining and evolving wireless solutions that deliver good business value. SMBs should demand and receive detailed information on technology evolution from prospective carriers. Know your competition s technology plans. SMBs are quickly increasing their use of mobility to support business. Understanding the best-in-class applications of technology can be the difference between staying in business and losing business. As above, tapping a trusted third party for technology information can be an essential part of doing business. About Nemertes Research: Founded in 2002, Nemertes Research specializes in analyzing the business value of emerging technologies for IT executives, vendors, and venture capitalists. Recent and upcoming research includes Web services, security, IP telephony, collaboration technologies, and bandwidth optimization. For more information about the analyst, please contact Christine Zimmerman at research@nemertes.com Nemertes Research 2008
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