by: Ramon Ray

There's an emerging market of technology providers targeting the small business market. For one monthly fee these providers, such as Center Beam and EverDream, will provide you with a complete turnkey technology infrastructure - Internet access, backup, applications, WEB site, etc.

Traditionally VARs have had (and for the most will continue to have) the role of providing installation and support services to their clients, in addition to providing them with technology enabling solutions such as WEB site creation, programming, database creation, and a myriad of other tasks.  CenterBeam and EverDream are betting that VARs do not relish the hassles of installing and supporting of equipment, but would prefer the much more lucrative responsibilities of providing pro-active technology solutions and advice to their clients.

EverDream will provide you with one or several computers for one monthly fee. The pre-configured computers and servers (if needed) come pre-loaded with EverDream diagnostic software and business applications. EverDream will send computers directly to the customer for them to install or work with a network of VARs to install. Once your computers are setup EverDream will become your "outsourced" IT department.

CenterBeam on the other hand focuses on small businesses needing a minimum of 10 computer systems. After an in person site survey to determine what mix of computers are needed, CenterBeam sends the customer pre-configured computers (and a printer and networking equipment). Instead of connecting them with traditional networking cable, the CenterBeam solution is wireless.

Another difference between the CenterBeam and EverDream solution is that each CenterBeam installation comes with a high speed DSL connection, the EverDream solution leaves the DSL connection as an option for the customer and claims that the remote diagnostics, backup and etc can work with an analog modem or DSL connection.

Of course for the back up, remote access and other things, a DSL connection is a much faster and overall better solution than a 56K modem, especially for small businesses with several (5 or more) employees.

The cost: CenterBeam $200 a month and EverDream $150 a month per PC needed.

Both CenterBeam and EverDream offer very viable solutions; it really depends on your needs. At this time EverDream’s service is only in the Bay area while CenterBeam’s services is expanding nationally.

Recommendation:

If I were a small business owner needing an "All In One Technology Provider" solution, I’d purchase a solution from CenterBeam. While I’m not crazy about CenterBeam’s wireless solution (just not sure how stable it may be), the strength of their national presence, high speed DSL connection, DELL computers and wirelessly enabled plug ’n’ play hardware solution makes their comprehensive solution the best available option.

Since CenterBeam is constantly monitoring your computer’s they may catch problems before you do. If there’s a software problem CenterBeam can remotely diagnose it. If there’s a problem with a piece of hardware CenterBeam will ship another one to you via Federal Express!

Take a very close look at the information below, from EverDream and CenterBeam respectively:

EverDream Corp
Gary Griffiths, CEO

Why EverDream, or other subscriptions services:

Small business cannot afford to have full time IT staff. Computer problems often end up being fixed by the business owner, which is a particularly inefficient use of his/her time, or paying a consultant/VAR to fix it, which is difficult to schedule and expensive. The PC industry today is essentially an "a la carte" business - that is, you buy the hardware from one supplier, the software from another, Internet access from a third, etc., but there is no single point of contact for problem resolution or questions. It is up to the small businessperson to decide where the problem is, call tech support, wait on hold, get referred to another companies tech support line, etc. Our small business survey results indicate that the typical computer problem experienced by small business phone call to tech support averages wait times of ten minutes, requiring 4-5 calls to resolve a problem. Estimated productivity loss due to computer problems averages 5-10 hours per month.

EverDream provides the industry's only comprehensive computing solution for small business. It includes a Pentium 3 PC fully loaded, business application software, unlimited Internet access, including optional DSL, automated remote nightly backup of all data/files - with unlimited capacity, automated application software management (revisions, patches, etc.), free online training courses, and most importantly, a live, 24/7 customer service line guaranteed to fix your problem or answer your question. Our guarantee is that you always talk to a live person, most all calls are answered within 30 seconds, and we'll never pass you off to another vendor. EverDream's technology allows our service team to take control of the EverDream client remotely, allowing our service team to do everything from fixing a problem to installing new software to demonstrating a feature, or "showing" the answer to a question.

Pricing is a fixed monthly fee of $150 per month per PC, everything included. The term last for 30 months, at which time you receive a brand new PC and all application and files/data migrated to the new platform and ready to go.

What about the traditional VAR?

EverDream is a partner with the VAR. The VAR channel is our main distribution channel, selling over 70% of the EverDream subscriptions. The VAR receives a commission for selling EverDream, which is significantly more than the margin he would make by selling his own white box. Plus, since EverDream provides the after-sales service, the VAR is not bothered with the annoying "desktop" issues. But when it comes to providing a network service, EverDream refers that business back to the VAR.

What about internal IT consultant?

EverDream's prime target customer is the small business with fewer than 20 employees and no internal IT consultant. In offices where there is in-house IT staff, EverDream replaces the Desktop Help Desk, and the IT staff concentrates on network/server issues.

Typical small businesses

Small offices, often professional (law offices, doctors/dentists, real estate, insurance, consultants), small manufacturing, retail, etc.

What should a small business look for?

EverDream’s focus is service: save time by having a single point of contact. No worries about computer up time, loss of data, etc. CenterBeam's target market is larger - 10 PC minimum order size, and requires the entire office to convert to the CenterBeam solution, and requires DSL. Service is provided by the individual hardware/software providers (Dell, Microsoft, etc.) or through a paid consultant. EverDream will sell computers one-at-a-time, and put them in existing networks (Choice, dial-up or DSL).

CenterBeam

Ken Montgomery, Public Relations

1.  Why would small businesses want a CenterBeam or the other vendors?

Small businesses want, and need, the CenterBeam service for the exact same reasons that big corporations spend millions on their IT infrastructure and staff: to gain competitive advantages, to concentrate on their core competencies, to alleviate the nightmare of having to manage an IT infrastructure when you're not a computer specialist, and for the first time in their experience - to make sure the computers actually work - ALL THE TIME.

2. What about their traditional VAR?

There is a fundamental shift that is taking place right now in how companies acquire and implement technology. The role of the traditional VAR is changing dramatically, particularly as systems get more complex, with the emergence of the application service provider (ASP) model for software purchase and use, as more-and-more people become dependent on the technology that is meant to serve them, and as the hardware margins for VARs shrink. We have seen a growing number of VARs who are focusing on specific vertical segments, and see in us an ideal partner for delivering their solutions to their customers - VARs want to focus their time and efforts on their solutions. Particularly as we continue to move to the ASP model, the integration of those ASP solutions will be crucial.

3. What about working with their internal IT consultant?

Let me let one of our customers speak to this point. Core Media is a technical recruiting firm here in San Francisco. For years they had tried to achieve a stable technology infrastructure, equipped with productivity tools that would allow them to drive their business without having to worry about technology glitches. "Years of expanding and patching our systems with different, and often incompatible, solutions resulted in a system that was inconsistent and unreliable - costing us a lot of money, frustration, and productivity," Connie Cormier the CEO of Core Media says. "To stay competitive, we needed technology solutions that enable us to work at Internet speed but our business wasn't big enough for a full-time, on-staff IT manager. As a result, we were jumping from one expensive consultant to another to upgrade and repair our systems, and even then we didn't have the reliability we needed in order to best service our customers."

This is what happens to small businesses every day. In our industry there is negative unemployment for high-tech support staff. If you're a small business, not only do you face the daunting task of having to find a qualified person, then you have to actually KEEP them when the inevitable offers come in from other companies. In addition think of the expense involved. Let's take a 25-person law firm for example. Here in the Bay Area, or in New York, or D.C., or Denver or just about everywhere, that person will cost you on average $75K a year, with total cost of employment bringing that person's burden on the company to over $100K a year. And that is without any of the equipment, software, Internet connection or services. And certainly not with a complete expertise and skill set. With the CenterBeam service, that same company, for $60K a year, would receive Dell PC or laptop for each employee, a Lucent wireless network, a high speed DSL Internet connection, enterprise level security, virus protection, daily backing up of all data on every machine, disaster recovery, 24 x 7 customer support and access to a host of ASPs to better their business processes.

4. What type of small business is the "typical" or target small business for these service providers?

There is no typical customer. Every business that is looking to take advantage of the Internet and technology is a potential customer. Unlike some of our competitors, however, CenterBeam can focus on any customer no matter how large they are. Our solution scales as a company grows.

5. What should a small business look for in a "new" technology provider or are they basically all the same?

"They" are most certainly not all the same and you shouldn't let anyone tell you otherwise. What companies are looking to do is outsource an absolutely critical element of their business. This is not a decision to be made lightly, nor should they rely on just the literature from respective providers. Any business, but particularly small businesses, should make sure that the provider they chose to "partner" with is rock solid and will be around for a long time.

Considerations:

First, what kind of backing does the company have, which will give you a sense of stability and whether or not the company will be around for the long run. CenterBeam has over $60 Million dollars in financing - our closest competitor has just less than one third of that.

Second, who backs the company? CenterBeam is backed by the three biggest names in computing - Microsoft, Intel and Dell. Not only is each company an investor in CenterBeam, they are key technology partners as well. For instance, CenterBeam has worked closely with Microsoft on Windows 2000 as part of the Joint Developers Program. As a result, CenterBeam was the first company to be able to ship its customers the final version of Windows 2000.

Third, what type of technology and equipment does the vendor provide? For a long time, people have looked at small businesses as being somehow lesser businesses than big businesses, having lesser needs and requirements. As a result often times they have to "settle" for lesser equipment and slower services. Let me give you two examples. I bet most of your readers are reading this article right now on a name-brand machine. If they are a small business, most likely it is a Dell, IBM, eMachine, COMPAQ or one from one of the other major PC makers. Small businesses demand these machines because of their reliability and the trust these makers have established with the market. Small businesses do not want to have to settle for white box machines because there is no track record for them and they have no idea what happens should the machine fail. Do you really want to base your whole business's technical future on a machine from people you have never hear of? Most likely not. Small businesses want the same level of machines that big businesses have. Our customers get the number one brand in the small business market - Dell - a name synonymous with quality.

Moreover, some of our competitors will try and tell you that they can do remote management and back-up over standard modem lines. This is simply not possible. Every CenterBeam customer, as part of the basic package, receives a high-speed Internet connection through DSL. This enables CenterBeam to back-up every machine of every customer every night. This means the customer’s most valuable asset - their intellectual capital - will always be there, no matter what happens. Think of it this way: what if a small business is in a building that burns down, or there is a flood or any other kind of disaster? In the past they have not only lost all of their physical resources, they would suffer a devastating loss to their business with the loss of all of their data. With the CenterBeam service, we replace all of their equipment AND they have the peace-of-mind to know that all of their intellectual capital is safe. As soon as they have a new location, CenterBeam will completely outfit them with new equipment, have their network back up and running with complete access to all of their data - they won't miss a beat.

The other important aspect of having high speed Internet access is our customers will have the best access to the whole emerging market of ASPs. ASPs provide a tremendous service to small businesses by making available business process applications that in the past have only been available to big businesses. Even better, these are made available online, meaning small businesses don't incur front-end loaded costs nor do they have to support the application on premise. But in order for these to work optimally you need a quick and robust connection to the web. We've all experience the slowness and unreliability of modem connections. That is no way to try and run your business.

All in all, small businesses shouldn't be pulled-in by splashy advertising or a catchy tagline. They should look at how stable the vendor is; it’s backing, who is backing it and the type of technology and services they will provide.

The CenterBeam installation process, according to CenterBeam.

They contact our sales department and one of our sales people will do a site survey of the property - checking for things to make sure the wireless network will work, if there are multiple floors etc.

When the customer orders the service, a DSL rep shows up to install the DSL line.

Then the infrastructure pieces arrive. A server, the Lucent wireless network access point (which looks like an antenna), and a printer. The server plugs into the DSL line, the access point into the server and the printer just gets plugged into the electricity. Everything is color coded with easy to understand basic English instructions. This is an amazingly simple process and takes our customers on average about 20 minutes to do.

The next day all the computers and PCs show-up. All the customer has to do is unpack the machine out of the box, plug the monitor into the machine, plug the mouse in, and then plug it into the electrical outlet. Because this is all wireless, the LAN card is already in the machine, and our customers are up and running on the network - well they have to turn the machines on.

Here is a customer of ours Andy Schilling, president of Tangent Fund Management

"The CenterBeam installation proved to be quick and simple. A DSL service provider was set up by CenterBeam to come out and install a DSL line to the office. Next, we received a shipment of PC's a monitors with explicit instructions detailing the simple steps of how to set up the system. Each new PC had a menu based program for set up which mapped the data from our old system onto the new PC and set up the user parameters. That was it. Unlike our old system, the new system is wireless and there are no constraints on where we located printer, workstations etc. This also means that physically installing a PC on our CenterBeam network is merely a matter of plugging the PC into the wall, plugging in the monitor and keyboard and then turning the system on."