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A recent post by the folks at Melcrum in the UK provides evidence that more companies are adopting cloud-based collaboration platforms (in this case Google Apps) for their internal communications. Last week Jaguar and Land Rover announced they were also switching to Google. And Google isn’t the only big player in this emerging field: IBM recently introduced its own cloud collaboration suite. (I haven’t even mentioned the host of new providers that offer services that go well beyond email, calendars and file-sharing – notably internal micro-blogging and networking tools.)
Anybody who has worked inside an organization is familiar with the debates that occur on this issue. For the cons, there are typically concerns about information security and integration with firewalls, while on the pro side the main motivations tend to be lower cost and a more efficient, integrated platform that is accessible through any Web connection. In my experience, the naysayers are often in IT while proponents are employees looking for better ways to collaborate and communicate with peers. Coincidence? For many companies – slowed by balkanized email networks, weak IT governance and outdated infrastructure – going to a cloud platform is an easy way to start fresh using external resources, often at much lower cost than an infrastructure overhaul. For smaller companies, it’s almost a no-brainer. I’ve been involved in several start-ups in recent months and all of them are using cloud-based platforms for their email, file storage and collaboration needs – at no cost.
So why so much resistance? Likely a new version of the proverb that you can’t be fired for buying IBM – many prefer to play it safe. I’m certainly not a technical expert, but I suspect that the popular chestnuts about unreliable cloud networks and data risk are overblown. I’ve experienced far more problems with internal systems than the occasional blip with cloud-based applications. And is there a network anywhere that is more robust than Google? Companies should certainly do their due diligence, but when the status quo for many employees is working on creaky, inefficient systems – if they even have access to their network – there is no excuse for at least not considering the cloud.
I read a provocative article this week in BusinessWeek about a study of Boeing workers that suggests those laid-off from the company in recent years actually fared better – in terms of their morale if not pocketbook – than the so-called survivors. It’s long been accepted that after layoffs those left behind can have trouble adjusting to the staff turmoil and need careful attention to remain productive, but this study argues they often suffer more than those who are let go.
Based on my experience (which includes work for Boeing during the tumultuous years mentioned in the research) the critical factor in this equation is the workplace environment, rather than any staff changes. If the corporate environment is tense and depressing, the survivors may indeed be worse off than those who get a fresh start. And though the unemployed certainly have to face the myriad stresses that come with finding new jobs – often at lower pay – many benefit from a more positive, less stressful working environment. In effect, money and security can sometimes be outweighed by personal satisfaction and well-being.
Other factors that play a role in which side suffers most include:
- Who leaves and who’s left behind – are the layoffs perceived as a talent drain…are popular, talented stars part of the exodus?
- How are the layoffs communicated – are employees kept well informed of the process (and rationale) and given a chance to air their concerns and questions?
- Do the layoffs appear to be part of a logical, solid business strategy or a knee-jerk move to cut costs?
- Is there a transparent, credible process for determining who gets laid-off, or is the process capricious and opaque?
- Has leadership laid out a clear timetable and strategy for addressing market challenges (and reducing the need for future layoffs?)
- Can the remaining employees rally around a compelling vision and benefit from a dynamic, positive culture?
Many successful companies navigate through layoffs without long-term damage, so cutting staff is not a corporate death sentence. The key is for companies to handle staff changes in a humane, candid way and sustain their culture and employee value proposition through good times and bad.
Very interesting presentation by Morgan Stanley analyst Mary Meeker (yes, that Mary Meeker) at the recent Web 2.0 Conference in San Francisco. Check out this article and the actual presentation here. Besides a fairly healthy prognosis for internet (and related business) growth, the salient theme is that the mobile internet is big…and booming – led in part by “explosive” growth in iPhone and iTouch devices. Indeed, a major fuel to this growth is the sheer increase in cloud-based mobile devices using platforms like GPS, 3G, wi-fi and Bluetooth. According to Meeker (who backs her arguments with mountains of statistics), mobile internet growth is far out-pacing historic desktop internet adoption.
Some of the stats in the report are pretty overwhelming, notably those on the size and growth of major Web platforms:
- YouTube – 445 million users, 35% Y/Y growth, #2 global search engine
- Facebook – 390 million users, 153% Y/Y growth, #1 site in time spent (6 billion minutes spent each day)
- Twitter – 55 million users, 1,171% Y/Y growth, 5 thousand tweets per second during peak times
- demandMedia – 55 million users, 46% Y/Y growth
According to Meeker, the “secret sauce” to mobile internet growth is the ability to localize data in real-time. The combination of this instant localization with a multi-media, mobile device (like the iPhone) and platforms like Facebook – which allow for integrated, multi-purpose content and applications — creates a highly attractive combination.
And if we needed any more confirmation of the obvious, Meeker argues that next generation platforms (social networks and mobile applications) are driving unprecedented changes in communication and commerce. She writes:
Plenty of other good information in the presentation on the implications of these changes on broadband providers and device manufacturers; the message is there will be big winners and losers as a result of these seismic shifts.
Thanks to my friend – and University of Texas alum – Paul Walker for the tip on this report.

