Internet Bandwidth Options

Reliable, high-bandwidth Internet connectivity used to be a “nice to have”, but this is quickly changing. Traditionally, office based computer users accessed shared computing resources via a local area network (LAN). Internet outages and slowdowns would disrupt web browsing and e-mail but work could continue because a LAN centric computer network didn’t require an Internet connection to provide users access to resources such as file sharing, print sharing and database access. The only people that were completely shut down by a disruption were remote workers.

Over time, businesses have come to rely more and more on their connection to the Internet. That reliance is accelerating with the advent of cloud computing. Broadly, cloud computing is using the Internet to deliver computing services such as e-mail and CRM. I’ve written about cloud computing before, you can read more about the benefits of cloud computing by clicking here.

Over the next few years it’s expected that businesses will migrate their LAN centric computer networks to a cloud-based computing environment. In a cloud-based computing environment every worker is a remote worker that’s completely dependent upon the organization’s Internet connection for access to corporate computing resources. This dependence really elevates the importance of the quality of the Internet connection. In addition to being reliable and fast, the connection really should have some redundancy built into the design.

At Endsight, we’ve been working with our clients to help them plan for this transition as part of our “all-inclusive” outsourced IT support program. Typically, we employ a design that includes hardware from SonicWALL and two Internet connections from competing Internet service providers (ISP)’s.

The hardware design and integration is fairly straightforward but selecting the right mix of ISPs isn’t as easy as it sounds. There are a lot of options each with its own cost / performance tradeoffs. I thought I’d try to summarize the available options. I’ve also linked to Wikipedia descriptions of each option if you’d like more detail.

Telecom options include DSL, T-1, & MPLS connections. Basically, these options leverage the phone company’s (mostly AT&T) telephone infrastructure. These solutions are tried and true and include service level assurances. You can purchase these options from a variety of providers and resellers. If this option makes sense, it’s important to work with a provider that will offer more support than simply providing a 1-800 number.

WiMax or fixed wireless broadband internet is becoming more and more popular. Instead of providing a connection using wires, this option uses fixed wireless antennas that are installed on the roof of a building. These antennas point to other antennas that terminate a connection into the public internet. This option offers high speeds at an economical cost. Its key limitation is that to work the antenna must have a line of site to the terminating point. This can sometimes be a real challenge.

Fiber-optic communication uses pulses of light transmitted through optical fiber. It is extremely fast and when compared to many other options, its cost / throughput is really economical. The main drawback is that the optical fiber required to transmit a signal is kind of scarce. If your business is in a metro area such as San Francisco or Oakland then your building may be “lit” meaning a fiber connection may already be available in your location. If not, then to take advantage of this technology the Telecom Company or ISP will have to deploy optical fiber and that could be prohibitively expensive. To find out if your building is “lit” send me an email and I’ll be glad to put you in contact with a partner that can help you.

Cable internet access uses the same infrastructure that is used to deliver cable television. It also offers high speed / high throughput internet access for an economical cost. As with fiber-optic communication, cable is dependent upon availability. In addition, cable is less reliable then some of the other options out there. This is less of an issue if there is a redundant connection from a Telecom or one of the other providers.

As I said, this is only a summary of some of the options. There is a lot more to this. If you feel like a deeper dive into your options might be helpful, please feel free to connect with us at Endsight. We included IT Strategy and part of our fixed fee outsourced IT service

Small Business Jobs Act of 2010: End of the Year Tax Savings to Consider

At Endsight, we pride ourselves on keeping our client’s computer systems running smoothly and reliably. A component of delivering on that promise includes computer hardware and software life-cycle management. Each Endsight client is assigned an account manager who is responsible for documenting every computer, laptop, server, and networked device in the client’s computing environment. Over time, this information is used to help the client make informed technology replacement decisions.

Endsight provides hardware and software resale services as part of our “all-you-can-eat” outsourced IT service. Dale Hoffman, Endsight Senior Analyst, manages all our hardware and software purchasing on behalf of our clients. Dale has been with Endsight from day one and has always used his deep understanding of computing technology to help our clients make the most of their hardware and software purchasing dollars.

Dale recently forwarded me some interesting tax savings information included in the Small Business Jobs Act of 2010 that I thought we should pass on.

On September 27^th, President Obama delivered an early Christmas present to both small and large businesses alike, but businesses must act fast in order to take full advantage of the tax savings being offered.

“Section 179” Capital Equipment Expensing
For smaller businesses, the Section 179 expense limit was retroactively increased from $250,000 to $500,000 for 2010 as well as 2011. This means, for tax purposes, that certain profitable businesses may immediately write off 100% of qualified capital equipment (including qualified computer equipment and off-the-shelf software) purchased during these years, achieving immediate tax savings. In the past, this benefit began to phase out when a company had purchased $800,000 of capital equipment in one year, but under the new expanded version applicable to 2010 and 2011, the tax benefit is fully or partially available to businesses which have not purchased more than $2,500,000 in a given year.

Note that if a company is in a taxable loss position during the year the asset is purchased and unable to immediately benefit from this special deduction, the unused expense may be carried forward to offset taxable income in a future year.

50% Bonus Depreciation Allowance
Small and large businesses alike can benefit from the 50% bonus depreciation allowance, which has been retroactively reinstated for the entire 2010 year. Previously expired at the end of 2009, this popular provision allows all businesses to immediately deduct 50% of the cost of qualified equipment without regards to profitability or investment limits. But note: there is a very short window of opportunity: qualifying equipment must be purchased AND placed in service on or before December 31, 2010!

Cash Flow Planning
These tax benefits are available in the year the equipment is purchased or even leased, regardless of whether any payments have been made for such equipment during the year. In other words, businesses may enjoy a tax break now for assets they haven’t even yet paid for! However, not all leases will qualify — be sure to consult with your tax advisor.

You can learn more by consulting with your tax advisor or visiting www.irs.gov.