12/1/99 Fortune (See Bold) 1999 WL 27633193 Fortune Magazine Special Copyright 1999
Wednesday, December 1, 1999
Issue: Winter 2000 Special Issue/Technology Guide
Small Business/Communications
Casting The Net New communications technologies for small businesses ensure speedy--and easy--connections.
Easier, faster, cheaper. If last year's big news for the small office was the emergence of super-simple networking kits and servers, this year high-speed Internet access is the top priority. A new technology, DSL, or digital subscriber line service, provides an inexpensive, easy way for small businesses and home users to get fast access to the Internet. Now small businesses, such as mom-and-pop accounting firms and bagel stores, can have Internet access that approaches the high speeds previously reserved for large corporations using costly, dedicated T1 lines.
The same trend toward affordability is affecting networking and telephony products--anything the small business needs to stay connected to customers, partners, and employees. Thanks to the convergence of digital technologies, networks and telephones are delivering high-end capabilities with simplicity and prices that appeal to the home and small-business user. Whether you need to hook together a few PCs to share files and printers, find an inexpensive telephone system to accommodate a rapidly growing staff, or put together a retail Website, there are plenty of interesting communications options to get you started.
Most businesses will want to begin by linking their PCs to share files, printers, and an Internet connection, if they haven't already done so. The most common way to connect desktop systems is with an Ethernet network. Each PC will need an Ethernet networking card and some connecting cables. A typical example is SOHOware's Fast Ethernet network kit. Sometimes setting up a network requires adding a computer to act as a "server" that manages shared files.
Other relatively new alternatives are network kits that use telephone lines or radio waves instead of cables to connect PCs. Some, such as 3Com's AirConnect Wireless LAN, can connect wireless PCs and roaming notebook systems to a wired LAN, so users can be more mobile in the office.
Once you have your internal network together, you'll want Internet access. DSL offers a connection that's more than fifty times faster than an ordinary 56Kbps modem. And there's no waiting; the connection is always on. As a result, small businesses are finding it practical to do more business over the Internet. Those maintaining their own sites will want symmetric, or SDSL service, which provides the same speed for both uploading and downloading. Rates start at about $100 per month.
The drawback: DSL is not yet widely available. To find out whether the service is available in your area, check with your local phone company, Internet service provider, or a DSL provider such as NorthPoint Communications in San Francisco, Covad Communications in Santa Clara, Calif., or Rhythms NetConnections in Englewood, Colo.
For businesses in areas where DSL is not available, there are other ways to speed up service. One is a device that combines 56K modems and phone lines for high-bandwidth, on-demand connectivity similar to DSL. Netopia's R2121 Dual Analog Internet Router is one such product.
Fast connections to the Internet make it much easier for small businesses to move into e-commerce. Those wanting to set up retail sites to sell their products on the Web will either need to find an e- commerce hosting service that will take care of everything for them or to buy the appropriate hardware and software.
For the latter group, manufacturers have created a class of Internet appliances for small businesses that combines a Web server for e-commerce with other functions such as security firewalls. Generally these can handle e-mail and related communications chores as well. They include the FreeGate OneGate 150 and the eSoft Team Internet Model 100. All are designed for use by small companies that don't have a large technical support staff.
SOHO Switchboard
New versatile phone systems are also a boon to small businesses. For years, small businesses have relied on either a few unconnected phones or the more expensive Centrex or key services. Rarely could they afford a PBX, or private branch exchange, a technology that is expensive and difficult to set up and service.
Now affordable telephone systems with advanced features for small businesses are becoming widely available. A good option for startups and small companies is a cordless digital system such as the Casio Communications MA-240. These systems usually come with a base unit and one handset. The base unit plugs into a power source and phone jack, and additional handsets can be added without requiring extra jacks.
The cordless systems provide conferencing, call waiting, caller ID, and other familiar services. Ericsson's CyberGenie cordless system even uses speech-recognition technology to greet callers and manage messages. It can read voicemail, e-mail, and fax headers over the phone to users who dial in for messages when they are away from the office.
For companies with 20 users or more, there are other options. Flexion offers an all-in-one system, called X300, that provides PBX capabilities, fax, e-mail, voicemail, remote access, and Internet access.
Artisoft's TeleVantage runs on Windows NT and provides a way for users to manage phone calls, voice messages, and other communications services through their computers. "There's a big market for products that can combine all these things in an affordable package," says Mary Porter, a market analyst with International Data Corp. of Framingham, Mass. "Once a product becomes simple enough for small-business owners to install themselves, it is very appealing."
PRODUCTS TO WATCH Casio Communications MA-240 $199 www.casio.com - 310-618-9910 This two-line cordless phone system is good for small businesses that are short on jacks. Casio's MA-240 can support two lines and as many as 12 handsets, all of which can communicate with one another. This is great for small businesses that want to transfer calls between desks but don't want to install a complicated PBX. The Casio MA-240 is also a big improvement over earlier cordless systems, which usually couldn't support more than five interoperable handsets. The basic unit comes with a base and one cordless handset; additional handsets cost $99 each. The digital telephones use a 900 MHz sampling rate for high quality sound. The system supports call transfer, intercom, conferencing, call waiting, and caller ID. Each handset has a two-line LCD screen for recognizing callers and scrolling through an address book that can store up to 20 names and numbers. Handset-to-handset intercom and three-way call conferencing are also supported. Cisco 673 SOHO/Telecommuter SDSL Router $499 www.cisco.com - 800-553-6387 The Cisco 673 SDSL Router gives small-business and work-at-home users high-speed yet inexpensive Internet access in areas with DSL access. It connects an Ethernet network or a single PC--with an Ethernet card--to the Internet using a symmetrical digital subscriber line (SDSL) for speedy response time, and can handle data rates up to nearly 1.2 Mbps. The 673 also offers routing, bridging, and point-to-point connectivity. Bundled software automatically configures the network connection and assigns IP addresses to PCs in the home office. LCD displays report on power, alarm, SDSL activity, and Ethernet connectivity. The 673 also features multilevel password protection, and can be managed remotely from a central office. In addition to SDSL connectivity, the Cisco 600 product line offers different types of ADSL connectivity through its 675 and 677 routers. Also in the Cisco 600 product family is the Cisco 633 ($899), a serial SDSL data service unit (DSU) for business router connectivity.
Flexion Systems X300 $6,000 for eight users www.flexion.com - 877-FLEXION This next-generation PBX delivers voice, mail, fax, remote access, and Internet access in a Windows NT system. The Flexion X300 is intended for companies with 8 to 64 employees. Unlike many PC-PBX combination products, the Flexion X300 features a phone system that will stay up and running even if the Flexion Windows NT server goes down. The Flexion X300 integrates all communications in one unit, as plug-in modules that connect telephones to PCs so that employees can manage communications from their computers. Like other unified messaging systems, the X300 converts voice-mail to sound files, which lets users receive and listen to their phone messages through e-mail. In addition, speech- recognition technology can convert voice messages to text, and lets mobile employees send text-based e-mails through a telephone. The X300 comes with a two-year warranty, and the company recommends that customers buy maintenance service from resellers. |