1. Wireless Technology Supported by SMBs
By Mike Jude
Research Analyst, Nemertes Research
The Wireless Landscape
Small to midsize businesses 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 businesses are doing. Sixty-nine percent of market-leading SMBs are
deploying mobile broadband, (Please see Figure 1: SMB Use of Mobile Wireless
Broadband, Page 2), including such things as laptop aircards, wireless PDAs and
data-capable cellphones. When we look at those businesses that intend to have
mobile broadband deployed within three years, the total rises to more than 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.
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2. Figure 1: SMB Use of Mobile Wireless Broadband (Source: Nemertes Advanced
Communications Services)
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, Page 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.
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3. Figure 2: SMB Wireless Devices Supported (Source: Nemertes Advanced Communications
Services)
Looking at WiFi, we see SMBs that either currently use or are anticipating
using WiFi (fixed wireless) within three years amount to 46 percent. (Please see
Figure 3: SMB Use of Fixed Wireless, Page 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. Implementing 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
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4. transfer rates, to very capable data rates such as that provided by the 802.11g
standard, which has up to 54 Mbps of bandwidth.
Now, however, the new 802.11n equipment is becoming available. 802.11n,
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 802.11n can
deliver performance that is nearly as good as any dedicated wired network.
Figure 3: SMB Use of Fixed Wireless (Source: Nemertes Advanced Communications Services)
Clearly, market leading SMBs are adopting wireless, both fixed 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.
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5. Recommendations
 Know your technologies. SMBs should not depend 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.
 Know your carriers. SMBs 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: Nemertes Research is a research-advisory firm that
specializes in analyzing and quantifying the business value of emerging technologies. You
can learn more about Nemertes Research at our Website, www.nemertes.com, or contact
us directly at research@nemertes.com.
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