The world of business always evolves, but the telecoms industry changes quicker than most. Andy Brown looks at how firms can pick the right offering for them, including that all-important issue of business broadband
For all small and medium sized businesses, telecommunications is now an essential part of their offering - gone are the days when the consumer only expected the ‘big boys' to have a good online offering. When the American politician Mike Oxley was quoted as saying that, "Leadership in telecommunications is essential, as we are now in the age of e-commerce," he may have been referring to large American companies, but the quote is just as relevant to firms in the United Kingdom, regardless of their size.
The vast majority of small companies in the UK know the importance of being able to communicate and sell to their customers online but, despite this knowledge, research has found that many companies are confused by the vast range of options available. A recent survey of 350 business decision makers at UK SMEs conducted by Censuswide, on behalf of essensys, found that 21% find it hard to stay up to date with new technologies.
"The way people work is changing all the time as we move towards an ever more hyperconnected world. However, the fact that our research has highlighted all of these frustrations means that, more often than not, the reality is lagging behind the hype," said Mark Furness, CEO at essensys. "Not because businesses don't want to embrace new technologies, but because they are hindered by complex implementation, cost and a lack of flexibility."
While the wide range of telecoms options available can cause issues, one of the biggest concerns for businesses is the speed of their broadband. This issue was highlighted by a members' survey conducted by The Federation of Small Businesses (FSB), which showed that many small firms wanted telecoms companies to guarantee minimum broadband speeds for all customers of at least 10 Mbps across the UK, following complaints about the unreliable quality of internet provision. FSB members actually called for the drawing up of a voluntary code of practice to ensure that broadband providers were delivering customers the internet speeds they had promised.
"Large numbers of small firms are using new digital technology to revolutionise the way they do business, but the market still has barriers stopping firms from seizing these opportunities," said Mike Cherry, FSB policy director. "The success of the digital revolution has led to ever higher expectations from businesses and consumers which at times the market struggles to deliver."
In June of this year Ofcom, the industry's regulator, announced an agreement from three of the UK's largest suppliers - BT, TalkTalk and Virgin Media - to work on a new code of practice for business broadband services. Consumers are currently protected by a code of practice on Broadband Speeds, which is signed by major consumer broadband providers. This code requires those selling an internet service to give the customer an accurate estimate of the actual speed they will receive. The consumer code also requires providers to resolve technical problems that might reduce broadband speeds, and to allow customers to leave their contract if speeds stay below a minimum level.
"Small businesses are essential to the UK economy, and most rely on telecoms services to carry out their everyday work. But some companies lack the resources or expertise to get the services they need," said Sharon White, chief executive of Ofcom. "We've made clear we want to see better broadband coverage, quality of service, information and advice for all consumers, and that means business users too. So we are taking action alongside industry and the government to make that happen."
Speed is often seen as the main factor when choosing business broadband, but before you make any decision do an audit of how much data your company uses. If you are a small firm with three staff then your needs will likely be very different to a firm with 20 members of staff and, if you decide you will need high speed broadband, then check that your LAN or WAN set up will be able to handle it. Another vital component is bandwidth - how much data a server can send and receive. It's no good having the world's fastest connection if your bandwidth is too low.
An issue that has led to some firms sticking with a telecoms provider that isn't right for them has been just how difficult it can be to switch provider, but this particular headache has recently reduced. Ofcom introduced new rules that mean businesses with fewer than 10 employees can switch provider over BT's network by only dealing with their new supplier, so all small firms that didn't know this rule change now have no excuse not to shop around and ensure they are on the best possible tariff.
The cloud is worthy of an article on its own, but it is certainly worth mentioning cloud phone offerings. With this system (which is different and not to be confused with VoIP - voice over internet protocol) there is no hardware to purchase and maintain after the initial buying of the phones themselves, and the cost of calls is often less than a traditional system as the business is not subject to the same expenses associated with using a standard fixed phone network. In some cases the difference in monthly costs can be large, so it is certainly worth consideration.
Another benefit for small firms which need to be agile is that if your company moves into a new office then an engineer doesn't need to physically disconnect the system; simply unplug the phone from the old office and connect it in the new premises. With a cloud based telecoms offering it is possible to enable different office locations to be integrated in one phone system and the hosting of conference calls and webcasts is made easy. It is also possible to make and receive calls from a smart phone but have the number come up as your work number, which increases the air of professionalism for small firms.
The cloud can be a fantastic way of working as it eliminates the need to physically store data, but when it comes to the cloud and broadband don't forget the two s's: support and security. There have been lots of high profile cases of data being hacked from the cloud so check what security packages are offered and also what help would be available; some of the UK's top business broadband providers offer a support line but not all of them do. Price and speed may be the two headline points that are often used when choosing broadband but if your data is lost on the cloud, it is no exaggeration to say it could be a disaster for your firm, so carefully examine what protection is offered.
The choice of telecoms options for small business has never been greater and it is essential you do your homework regarding exactly what you can get given your geographical area and also what you require in order to perform effectively as a business. While finances can often be tight for small firms it is wise to not be too pragmatic - this is one of the quickest changing industries out there so beware of tying yourself to a long contract for a service that might well be the worst on the market a few years down the road. The internet is at the heart of what most businesses provide so try to think not only about what you need and want now but how your business might develop in the future.
