How Cloud Computing is Generating New Business Opportunities and Fueling Job Growth in the United States
Cloud computing is a powerful catalyst for job creation and has greater potential for employment growth than the Internet did in its early years, according to a new study by the Sand Hill Group, sponsored by SAP America, Inc., a subsidiary of SAP AG.
According to the study, cloud computing is already generating a sizable number of jobs in the U.S. today. Based on numerous trends and indicators, it has the future potential to create very large business opportunities and hundreds of thousands of new jobs in the U.S. The study, titled “Job Growth in the Forecast: How Cloud Computing is Generating New Business Opportunities and Fueling Job Growth in the United States,” looked at several ways cloud computing may create jobs and found specifically:
Eleven cloud computing companies added 80,000 jobs in the United States in 2010, and the employment growth rate at these organizations was almost five times than that of the high-tech sector overall.
Companies selling cloud services are projected to grow revenues by an average of US$20 billion per year for the next five years, which has the potential to generate as many as 472,000 jobs in the U.S. and abroad in the next five years.
Venture capital investments in cloud opportunities are projected to be US$30 billion in the next five years, which could add another 213,000 new jobs in the U.S.
The economic impact for companies buying cloud services can be even more significant. Cloud computing could save U.S. businesses as much as US$625 billion over five years, much of which could be reinvested to create new business opportunities and additional jobs.
Survey: Service Providers Have an Opportunity to Substantially Reduce Call Center Traffic with Proactive and Improved Self-Care Options
Amdocs, a provider of customer experience systems, announced the results of a global survey that highlights the critical business importance of effective self-service channels for resolving customer issues. The survey highlights a massive opportunity for service providers to reduce call center costs and to improve customer experience by creating a more complete, consistent and accessible self-service capability, while leveraging customer insight to proactively prevent and eliminate calls.
Key survey findings:
Smartphones still present a challenge: the majority of smartphone users encounter issues related to device or service during the first year of use. 82 percent asked their service provider at least one question, while 50 percent had two or more questions.
Online support can be improved: 75 percent of surveyed consumers said they would prefer to use online support if it were reliable, but only 37 percent currently even try to use self-service options, which are often perceived as inaccurate or incomplete. An overwhelming 91 percent say they would use a single, online knowledge base if it were available and tailored to their needs.
Social media channels are under-used by service providers: more than half of all respondents (54 percent) have already complained directly to their mobile service provider through social media channels, but 73 percent of these respondents said they did not receive satisfactory answers.
The call center picks up the pieces: this lack of satisfactory online support is driving large numbers of consumers to call centers, wasting valuable resources. More than 40 percent of customers contact a call center after they cannot find answers to their question via self-service and up to 50 percent of "How do I ...?" calls could be deflected to self-care channels.
Customers expect proactive care: 96 percent of surveyed consumers expect problem notification without having to ask, preempting calls to a call center. For example, should a problem emerge with email setup on a particular handset, all owners should be proactively sent the solution, without them having to call in to the service provider.
The survey, conducted by Coleman Parkes, analyses the results of questionnaires completed by 2,900 smartphone users between the ages of 18-40 across North America, UK, Asia Pacific and Central and Latin America in January 2012.
Knowlagent, an agent productivity solution for the world’s 10 million call center agents, has sponsored the performance portion of “The U.S. Contact Center Decision-Maker’s Guide".
The report analyzed multiple metrics that help to determine the success for contact centers, but the key findings primarily related to a call center’s performance and productivity include:
Agent Activity -- This year's report found that talk time has declined (58.7 percent, which is down from 65 percent last year), which may be due in part to the introduction of email and text chat. The report also found that an agent spends anywhere from to 12.8 percent to 3.9 percent of their time idle.
First Call Resolution -- Twenty-three percent of this year’s respondents stated that they do not measure first-call resolution at all. Meanwhile, 38 percent measure the success of the call and whether the required business processes were actually successful and 39 percent measure only the success of the call.
Average Handle Time -- Depending on the activity the agent is engaged in, short call duration does not necessarily translate to a satisfied customer.
Customer Satisfaction -- The importance of customer satisfaction continues to increase with 59 percent of respondents saying that this is more important than two years ago.
Network Instruments, a provider of network and application performance monitoring, released its Fifth Annual State of the Network Global Study today. The results suggest a potential management storm as IT teams face significant monitoring challenges from multiple forms of cloud computing, as well as substantially increased bandwidth demands.
Moving apps to the cloud: 60% anticipate half of their apps will run in the cloud within 12 months
Video is mainstream: 70% will implement video conferencing within a year
Bandwidth demand driven by video: 25% expect video will consume half of all bandwidth in 12 months
Chief application challenge: 83% were most challenged by identifying the problem source
Increased bandwidth demands: 33% expect bandwidth consumption to increase by more than 50% in next two years.
While the number of organizations embracing cloud (60%) remains steady compared to last year’s study results, the number of implementations per organization is growing. Most notably were Software as a Service (SaaS), Infrastructure as a Service (IaaS), and private cloud deployments -- which grew by 10% over the last year. On average, respondents expected one-third of their applications to be running in the cloud within 12 months.
Seventy-four percent of respondents indicated their chief concern about cloud migration was ensuring corporate data security. The number is nearly double that of last year, and may be the primary reason for slowing cloud adoption by new organizations. Other top concerns included lack of accurate end-user experience monitoring and the bandwidth impact of cloud services.
Although challenging from a monitoring and visibility perspective, one-third of organizations indicated application availability increased as a result of cloud migration.
After many false starts, enterprise video conferencing is now mainstream. Video conferencing has been implemented by 55%, with an expected 70% within a year. Nearly two-thirds of these organizations have implemented multiple deployments throughout their organization. These include standard conference rooms (75%), desktop PCs (63%), and telepresence systems (30%).
While video is clearly embraced, several cited challenges that could hinder wider adoption. Inadequate user knowledge and training was viewed as the largest concern in ensuring a positive video conference experience (53%). This was followed by difficulties allocating and monitoring bandwidth (47%), and a lack of tools to manage video performance (47%).
Further compounding these issues are the lack of standardized metrics to monitor video quality. Network professionals typically relied on a mix of metrics to assess quality, including latency (76%), packet loss (69%), and jitter (60%). Surprisingly, less than one in five use Video MOS, a metric specifically designed to determine video quality.
By the beginning of 2013, nearly one-quarter of respondents expect video to consume over half of their bandwidth.
Performance and Bandwidth Management
As applications become more complex and tiered, the ability to resolve service delivery issues grows. Eighty-three percent of respondents said the largest application troubleshooting challenge was identifying the problem source. Whereas, more than two-thirds of respondents predicted network traffic demands would increase by 25%-50% within two years.
Social CRM and Mobile Capabilities Boost Productivity by 26.4 Percent
A Nucleus Research survey of CRM decision makers found that organizations can significantly increase returns on their CRM investments by adding mobile and social capabilities, particularly for salespeople. Nucleus surveyed 223 CRM decision makers and found an average productivity gain of 14.6 percent from mobile capabilities and 11.8 percent from social CRM.
While salespeople have used mobile devices for some time, the 14.6 percent productivity increase seen in this report is driven by the development of custom, device-specific applications that take advantage of the form factors of individual devices. Vendors and consultants are increasingly delivering task-specific, role- and vertical-based views of mobile CRM data that make it easier for salespeople to go beyond updating their pipeline via their smart phone.
Nucleus has found that early adopters of social CRM have recognized clear benefits, such as increased visibility and productivity. The 11.8 percent productivity gain is high, and Nucleus expects adoption of social CRM, particularly by salespeople, to grow not just in real numbers, but also in frequency of activity as users become more aware of the technology’s capabilities and as vendors’ offerings mature.