Nello Wall Systems and Cloud Computing

I. Introduction

Nello Wall Systems is a small company compared to other companies in the industry. In order to stay competitive in the market, Nello Wall Systems must adapt to new technologies. Switching to cloud computing offers them a great opportunity to achieve a competitive advantage because Nello Wall Systems is not currently using competitive hardware and software.

II. Defining The Problem

Why Nello's hardware and software are not considered competitive:

A. Lack of Awareness

B. Stuck in Traditional Ways of Tracking Salespeople

C. Hardware and Software in the Office are Outdated

A. Lack of Awareness:

1. Not Aware Of Where The Problem Is:

Nello does not specialize in informational technology. Their research and development department works on new technology in the interior commercial design industry. The company focuses their time, effort and money on updating their equipment in their warehouse and not on their equipment and computers in their administrative office. The company's lack of awareness is due to the fact that they try to solve problems and develop cost savings in the factory but not in other areas of the business.

2. The Executive Employees Lacks Awareness:

Neither the President nor the Vice President of the company are familiar with cloud computing. In order for a company to adapt and change to using more updated equipment and technology it is crucial that the top executives, who are the decision makers, are aware of the benefits to switch over. With the President and Vice President unaware of cloud computing they can not purpose that they switch over to. Also, they will not push for a switch if they do not understand the new technology and understands its benefits.

3. No Technology Department:

Nello Wall Systems is a small company and does not have the size or budget for a separate technology department. Without a technology department and with research and development focusing on the factory equipment, there is nobody in the company in charge of researching and implementing new computer and internet technologies. The lack of such people in the company has lead to Nello being unaware of the creation of cloud computing.

B. Stuck in Traditional Ways of Tracking Salespeople:

1. Phone Calls:

Nello communicates with their salespeople by telephone and cellphone calls. Calling salespeople is outdated technology. Calls take up a lot of unnecessary time. Once information is reported over the telephone it then has to be re-written down into paper work at the office.

2. Paperwork:

Traditional paperwork is very outdated. It takes up a lot of space to store. It also takes a lot of time to write or re-write or copy. Paperwork can be easily damaged, misplaced or destroyed. Today Nello backs up their paperwork by making electronic copies of it and storing it on the computer.

3. Computer Storage:

Electronic files are a more efficient way to store files but are not easy to transfer. Formatting styles and modes of transfer make it harder to transfer electronic files stored on a computer compared to using updated cloud technologies.

C. Hardware and Software in the Office are Outdated:

1. Outdated Hardware:

Nello still uses hardware that is all kept in the office of their headquarters. Computers and backup systems are al kept in the same building which is the old way of storing hardware and makes it easy for burglars to steal their equipment.

2. Outdated Software:

Software is still purchased in large, company-sized packs from a store. This is outdated because new software can now be purchased much cheaper and easier online.

3. Repair:

Nello does not have an in-house computer guy. When something goes wrong with their hardware and software they must call in an outside specialist. Problems take a long time and are expensive to fix.

4. Waste:

Unused hardware is still being paid for by Nello, therefore it is being wasted. Salespeople have company mobile devices but because they do not use cloud they are not utilizing those devices to their full capacity.

III. Situation Analysis

Converting Nello's over to cloud computing is not only my professional opinion, but the public also views cloud computing as better than traditional hardware and software. The graph below shows what people think of us as the most important benefits of cloud computing:

Source: An IDC Enterprise Panel Survey Conducted July 2009

The top advantages of cloud computing also tell us the top disadvantages of not switching to cloud computing:

A. Wasting Time

B. Wasting Money

C. Loss of Competitive Advantage

A. Wasting Time:

1. Salespeople:

Calling their sales people all of the time waste a lot of time for the company. Writing and re-writing paperwork can also take up more time than it should. The constant struggle of trying to sync up all of the operations of the company also takes up more time than it is worth.

2. Tech Support:

Hiring tech support will waste more time than it is worth. Every problem that the company currently has with its technology it is required to call in an expert. This is a waste of time because new cloud computing technology cuts back on the amount of time it takes to receive help with problems. If Nello does not use cloud computing then its competitors will be able to safe more time than them which translates into saving more money as well.

B. Wasting Money:

1. Hardware Space is Money:

Every year Nello buys hardware equipment but they do not use all of it. Every year that unused hardware space is money wasted for the company. Cloud computing can eliminate this by problem by only charging the company for the space that