Is Virtualization the future for small businesses?

Big business technologies have made the jump from enterprise size companies to the SOHO and SMB markets.  What was once only available to larger organizations is now cost effective for smaller companies.  Why is this happening?  The answer is virtualization.  Virtualization is becoming the path of least resistance for the SOHO and SMB markets as well as big business for the providers.  It’s what I call a win-win for both parties. 

Ever since the dawn of virtualization, small businesses have been benefiting by utilizing the technologies that they once could not afford.  The SOHO and SMB markets could not stomach the enormous amounts of capital investment for hardware, software, licenses and people to manage it all.  Now days the SOHO or SMB can purchase everything virtual including storage, exchange, PBX, web/domain and email hosting and more with no capital investment.  These markets can get all the benefits of these technologies with no upfront investment.   

Now there is a downside to virtualization, which is control and long term cost.  You are at the mercy of the provider you choose and the long term cost can be higher than purchasing your own equipment.  This depends on the depreciation schedule a company chooses for their technology.  Most companies depreciate technology over a three year period, which makes virtualization a good cost alternative to purchasing these solutions.   

Some virtualization solutions are more proven than others, such as web, domain and email hosting  I am interested to hear what my reader think about Virtual PBX?  Is this something you would implement in your own business or recommend to your current customer base?  What are your pros and cons?

Jason Tapolci

President

VoIPstreet

www.VoIPstreet.com

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