TelePacific Blog: Telecommunications Insights

PBX Telephony Market Down; Hosted PBX Up

In the first quarter of 2013, enterprise PBX spending dropped to its lowest point since mid-2009, according to Infonetics Research. The enterprise PBX market accounted for $1.8 billion in sales in the first quarter of 2013, which is down nine percent from the previous quarter and down 10 percent from the first quarter of 2012.

Principal analyst Diane Myers suggests the big squeeze is coming from hyper-competitive price pressure and conservative spending by businesses due to economic conditions. In a growing number of instances, conservative spending translates into adopting a hosted PBX solution. Indeed, the global VoIP services market grew nine percent in 2012 – and demand for enterprise cloud-based solutions, hosted VoIP and UC services grew 17 percent last year.

Increasingly, businesses are learning the benefits of replacing legacy systems with cloud-based, fully managed hosted PBX solutions, but it’s not a simple, or unimportant, decision. One key consideration is whether the hosted PBX sends calls over the public Internet or a secure private network. TelePacific’s solution does the latter for several reasons, but chief among them is security.

By managing voice traffic over our own network we are able to offer a very secure solution, giving some peace of mind to business operators facing a growing number of threats from hackers. (To read about PBX hacking horrors, please view our March newsletter.) Also, since we control the traffic from end-to-end, we are able to offer service level guarantees. This is critical because every minute that a company’s central phone system is down translates into real costs in customer satisfaction and lost sales.

TelePacific’s hosted PBX solution is among the more secure and robust in the industry, which is one of the reasons why Tim Healy, our Managed Services Consultant, was invited to speak at the recent IT Summit to share his expertise and knowledge about PBX solutions with small and midsized business owners.

Tim is part of a growing team of cloud services experts at TelePacific who are getting ready to roll out a comprehensive suite of cloud-based business-enhancing solutions; including Hosted Exchange email along with email syncing, security and archiving, desktop and server storage, mobile device management and Hosted SharePoint. We’ve spent a lot of time and effort developing a team of top cloud professionals who understand how to listen to customers and design cost-efficient and productive cloud-based solutions that help businesses grow.  They’re waiting to talk with you.

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1 out of 4 Businesses Believe Tech Isn’t Important

Makes you wonder how many Amish there really are in the U.S., doesn’t it?

Still, for most of us – about 75 percent of business and IT executives, according to new research by the IT industry non-profit association CompTIA – technology is as essential  to business success as a sharp blade is to a woodcarver. Considering our growing dependence on computers, IT and the Internet, that’s not very surprising data. And, in a telling sign of technology’s mainstream importance, the survey also found the majority plan to spend more on IT this year, with 40 percent expecting to hire new IT staff in 2013, even though economic forecasts remain mixed.

The reason? Technology is increasingly vital to achieving strategic priorities,  including reaching new customers, improving productivity and capabilities, reducing costs and overhead, and innovating more effectively, said survey respondents.  By a large majority, businesses say they are interested in improving their utilization of IT, with just 15 percent say they are “exactly where we want to be.”

The top technology priorities for the next 12 months:

• Cybersecurity
• Data storage and back-up
• Network infrastructure
• Web presence, including e-commerce
• Updating aging computers and software

The CompTIA study also reveals that cyber-security threat levels are increasing. “As businesses rely more heavily on the ‘Internet of Things,’ security, data loss and privacy concerns will affect more companies on more levels than ever before,” explains Tim Herbert, vice president, research, CompTIA.

Indeed, Symantec Corp. reported a 42 percent increase in targeted attacks from 2011 to 2012. Designed to steal intellectual property, these targeted cyber espionage attacks are increasingly hitting small businesses, which were the target of 31 percent of attacks in 2012. Apparently, small businesses are attractive targets themselves and offer a “way in” to reach larger organizations through “watering hole” techniques.

In today’s increasingly connected business environment, security issues are top of mind for nearly all businesses, including ours. Because we operate sizable LAN and WAN networks, we have experience with all manner of security issues and best practices, which is why we frequently work with associations and other groups to educate industry professionals on preventative measures to protect networks and critical infrastructure.

We also have many years of experience equipping customers with business continuity and security solutions that safeguard their networks from malicious attacks. If you’re considering strengthening your security defenses, please do not hesitate to leverage our expertise and use us as a resource.

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Gartner: Half of Companies will Require BYOD by 2017

A new study from Gartner predicts that almost 50 percent of employers will stop supplying mobile devices and adopt a full-scale BYOD program by 2017. Only 15 percent of companies will never move to a BYOD model, and 40 percent will offer a choice between BYOD and employer-provided devices, according to the report.

In his coverage of the Gartner report, PCWorld’s Chris Kanaracus writes, “BYOD strategies are the most radical change to the economics and the culture of client computing in business in decades.”

CMSWire offers five reasons why this is good news:

1. BYOD Leads to Real Business Innovation. Putting tools in the hands of resourceful, do-it-yourself employees drives real business innovation and real return on investment in the form of greater employee productivity. These employees know what their teams need, the specific requirements of the tools they need and how to get it done. Now, all they need is the green light. By supporting and encouraging employees to self-solve inefficiencies, the company’s customers will be better served.

2. BYOD + DIY = Fewer IT Development Backlogs. Enterprise end users want easy-to-use solutions that fit and flex to meet their evolving business needs. Empowering employees to bring their own devices and to use them to find their own solutions greatly alleviates IT development backlogs so you can focus your limited resources on more strategic needs.

3. Every App an Employee is Building is One that IT Isn’t. With BYOD comes DIY. Employees know what tools they need to more effectively do their jobs. Instead of customizing apps and programs to meet their needs, let them figure it out on their own. It’ll save you a headache and make them feel empowered. A win-win.

4. Employees Will Use the Tools and Programs They Want – With or Without the IT Department’s Permission. With cloud apps for improving productivity cropping up every day at employees’ fingertips, it’s important for you to understand and accept that employees will be using them. So what can be done? Approve the application for use so employees can leverage its full functionality. Support, encourage and enable this trend of employees taking action. You can help by providing application creation training to everyone and letting business users create apps as needed.

5. Security Can Be Solved. Your organization’s social media policy can serve as a rough template for creating a BYOD policy. There’s a level of trust required here, but with proper education beforehand, that can often be attained. The same formula goes for the DIY space, but should be taken one step further: Teach then trust… then observe and embrace. After employees are educated and trust is gained, monitor how the BYOD/DIY policy is being utilized — what are they bringing, what are they building? — and learn from it. By being aware of its usage, you can create a secure environment for the tool as well.

Much has been made of the security risks inherent in BYOD. Of course, employee education and awareness are important as informed users are more likely to act responsibly and take fewer risks with company data. Unfortunately, employees can be careless and criminals crafty, which is why a stout network security defense is so critical.

In the WAN area, TelePacific’s 1Net MPLS secure VPN backbone provides steadfast security that easily meets HIPAA or similar government regulations. Moreover, with a 1Net MPLS VPN solution, customers can have a single point of entry and use TelePacific’s suite of managed security services to keep their LAN protected from malicious intrusions and activity.

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Is Social Media Threatening Corporate Security?

The social media generation now routinely uses personal devices to acquire and share data online while in the workplace. This has a growing number of security experts talking about a generational shift in how organizational information is valued and whether it could affect how some people treat their employer’s data.

“The sensitivity around the handling of private, confidential data has eroded socially,” LogRythm’s CTO Chris Peterson tells TechNewsWorld. “We’ve gotten to the point where we value privacy and confidentiality less in our personal lives. I don’t know how that doesn’t permeate into the workforce.”

Moreover, the bring your own device (BYOD) movement is removing physical (personal vs. company device) and psychological barriers between personal and work environments, causing some people to not delineate personal and work-related interactions. For some individuals in the social media generation, they are becoming the same thing in their social mind.

As a result, employees may unintentionally post valuable information about their workplaces, or different aspects of their job, that can be manipulated by hackers and cyber criminals.

Security experts are quick to point out that most businesses do not consider social media as a threat, and almost none have a security plan in place to deal with related security risks.

The Top Four Social Media Risks for Business:

RISK IMPACTS
1. Use of personal accounts to communicate work-related information * Privacy violations
* Reputation damage
* Loss of competitive advantage
2. Posting of photographs or information that link users to their employers * Brand damage
* Corporate reputation damage
3. Excessive use of social media in the workplace * Network utilization issues
* Loss of productivity
* Increased risk of viruses and malware
4. Use of company-supplied mobile devices to access social networking sites * Infection of mobile devices
* Data theft from mobile devices
* Data leakage
* Bypassed enterprise controls

Source:  IT Business Edge and ISACA.

They say organizations should consider employee behavior, and especially password proclivities when developing their approach to social media policies and practices. Employees using the same passwords for social media sites and remote MPLS VPN access, for example, are inviting an enterprise network intrusion.

ISACA, an association focused on IT governance, has published an informative paper exploring threats and vulnerabilities, risks, and risk mitigation techniques related to social media.

Closer to home, know that we at TelePacific have experience and expertise with enterprise network security and an array of on-premises and cloud-based solutions that help protect customers and their data. We invite you to lean on us for insight any time. Simply contact your sales representative or use our contact page to get in touch.

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TelePacific Employee Goes Bald for Childhood Cancer Research

TelePacific-Cory-Brant

For the past 4 years, Cory Brant (Lead Project Coordinator – Internet Provisioning, St. Louis Provisioning, TelePacific Communications) has raised funds for the St. Baldrick’s Foundation, an organization dedicated to funding childhood cancer research. Brant started fundraising for St. Baldrick’s after learning that a child at his daughter’s elementary school lost his battle with cancer. The school worked with the St. Baldrick’s Foundation to form the fundraising team, “Charlie’s Angels”. This year, in addition to raising money, he and his wife Jennifer also shaved their heads to show solidarity and raise awareness for children afflicted by cancer. According to the St. Baldrick’s Foundation, 175,000 children worldwide are diagnosed with cancer each year and more children die of cancer annually in the U.S. than from any other disease.

Brant and his wife Jennifer set a fundraising goal of $1000 and so far have raised more than $1800. They both shaved their heads at the “Shave Event” at the Helen Fitzgerald’s Irish Grill and Pub in St. Louis that drew in 400 participants, all of whom shaved their heads. The fundraiser collected more than $412,000 in donations.

If you want more information on how you can donate or get involved, follow the link to either Brant’s team fundraising page or the St Baldrick’s Foundation homepage. Way to go Cory!

St. Baldrick’s website:  http://www.stbaldricks.org

Cory Brant’s team page where donations can be made: http://www.stbaldricks.org/teams/mypage/81011/2013

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SIP and T1 Lines Trending in Opposite Directions

More businesses are adopting SIP trunking services and fewer are utilizing T1 lines and ISDN circuits, according to the latest survey from Infonetics Research. The survey also suggests the trend will accelerate. The percentage of respondents using SIP grows from 38 percent currently to 58 percent in 2015, while the percentage using T1 lines declines from 71 percent currently to 55 percent in 2015.

“SIP adoption is growing as businesses seek to improve the reliability and lower the cost of communication services,” says Diane Myers, principal analyst for VoIP, UC and IMS at Infonetics Research, and author of the study. “That said, though more and more companies are implementing SIP trunking, it is far from being the ubiquitous standard of T1 lines or ISDN circuits. T1 lines are still the most commonly used trunking service today. And while their use is declining, our survey shows that North American businesses are using a combination of services.”

Indeed, many of our customers – especially multi-location customers – use a combination of T1, ISDN and Ethernet over Copper (EoC) circuits in tandem with our award-winning SmartVoice SIP services.

Businesses adopting SIP services are benefitting from an average cost savings of 33 percent, according to a report published by the Analyst Division of Webtorials. The researchers found that the two top drivers for implementing SIP are related to cost savings, but the ability to add new SIP-based features is also a strong driver.

To learn more about the features and benefits of SIP, read There’s More to SIP than Savings. And if you have any questions, don’t hesitate to contact your TelePacific representative or call one of our local offices.

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