Clifton Gunderson LLP - A nationwide firm of Certified Public Accountants and Consultants

Technology Trends - Keeping Up with the Latest Could Pay Dividends Later

Posted November 23, 2010

In our current economy, technology spending has been focused primarily on maintenance rather than strategic growth. Even after nearly two years, some businesses continue to take a “wait and see” approach to technology plans and investments. And yet technology marches on, becoming more and more integral to business growth.

A forward-thinking approach in this economy is to align IT investments with business strategy in order to be positioned to prosper when a sustained economic recovery comes. Those that don’t plan and prepare may find themselves in a reactionary downward spiral.

Here are some of the top trends and products that will impact technology investments for the remainder of 2010.

1. Mobility is being leveraged for business. By the end of 2010, an estimated 1.2 billion people will carry mobile devices with Web access. Opportunities abound for smart businesses to take advantage of this convergence. As mobile carriers deploy 4G coverage, mobile users will benefit from increased performance and greater coverage areas.
2. Security is evolving into a continual process. As more businesses opt for laptop computers and other mobile devices, new security threats must be identified and addressed. Data encryption tools and remote management products must be planned with all new mobile product purchases. Topping the list of mandatory upgrades is replacing the old, static firewall with a unified threat management device that secures Internet content, Web applications and malicious code.
3. Desktop virtualization is going mainstream. In 2009, we saw a significant increase in the processing power of servers and an explosion in the use of server virtualization. In 2010, businesses are harnessing this power and beginning to “virtualize” desktops. This makes it possible to achieve an easier and more uniform end-user experience, enhanced security over applications and data, minimal network support requirements and minimal downtime following disruptions.
4. Businesses are seeing the value of cloud computing. As employees are working everywhere (at the office, at home, from other sites), they need to securely access up-to-date resources. There is significant consolidation in cloud computing, as the more dominant providers acquire smaller players that possess technical advantages. Cloud computing services are expected to grow threefold, reaching $42 billion this year.
5. Everyone is online. Social networking isn’t going away. Businesses need a strategy to deal with social media, and waiting until 2011 may be too late. Businesses that strategically use the Internet to market themselves will find more prospects and keep more loyal customers. Most importantly, businesses need to update their business policies to address the use of products like Twitter, Facebook and LinkedIn. In addition, security tools need to be in place as hackers figure out how to invade social networks.
6. Unified communications tools are being leveraged for efficiency. Businesses are utilizing integrated communications tools to save money and gain a competitive advantage. As companies slashed their travel budgets in 2009, they were surprised by just how much business they could get done over the phone and on the Web. With increases in bandwidth and the need for cost-effective collaboration, the rise in video conferencing should continue.
7. Business analytics tools are being leveraged like never before. Through SQL reporting tools and business analytics packages, raw data can be turned into useful information. Companies have implemented business software systems over the past few years that use open databases and are seeking to get more information from their data. In addition, businesses have fewer human resources to perform these tasks. Business intelligence and reporting tools are being implemented to integrate data from accounting systems, estimating, time entry systems and CRM products.
8. Managed services are becoming the standard for technology support. With new developments in monitoring and remote support tools, companies are finding that proactive IT services offer a reduction in support expenses, while providing more timely support. With managed services, businesses get a wide level of expertise at their fingertips without expanding their staff.
9. Off-site data backup is eliminating tape drives and other storage methods. With technological advancements in “data de-duplication” and improvements of the “cloud,” businesses can cost effectively and securely backup their information online. In addition to having off-site backup capabilities, some solutions also address disaster preparedness by providing the ability to immediately virtualize a failed server. Businesses should consider the new off-site backup options before investing in traditional backup methods.

Of course, these real and affordable technologies mean nothing if they don’t help a business owner make money, save money or help the owner sleep better at night!