Jackson Co.

MEMORANDUM FROM: Nicole St. Jean TO: DATE: William Jackson, President April 13th, 2009

SUBJECT: FEASIBILITY OF INTERNET ACCESS AND SMALL BUSINESSES (JACKSON Co.)

Introduction
The simplest of tasks is establishing a business while the most complicated is remaining in business. Every year an insurmountable number of small businesses fall out of business due to both internal and external challenges. They compete with small, medium and large businesses daily. It is thereby evident that Jackson Co. must increase its competitive posture to survive, otherwise it will simply become one amongst a set of morbid statistics of small company failure. In order to increase competitive posture to survive, many companies have adopted the alternative of internet access. I have investigated the feasibility of internet access for small businesses; hence, Jackson Co. and its known ability to increase competitive posture by facing both the internal and external challenges of business. I have studied the benefits of internet access to determine feasibility. I have likewise studied Types of networks, internet benefits, internet equipment, connection technologies, internet security, internet service providers, internet browsers, internet search engines, cost and training. I conclude that internet access is most feasible for small business; hence, Jackson Co. , and will greatly increase Jackson Co. competitive edge to not only survive, but grow and expand as well.

Analysis
Internet Benets
The internet is in excess of benefits for small businesses. One of the biggest benefits to the internet is that there are no geographical limits. Another, major benefit is that the internet offers extended hours (24 hours a day, 365 days a week). This allows for a more extensive market reach, acquisition of new customers and increased sales. The internet also improves the efficiency and productivity of a company. It reduces a great deal of inventory and overhead. The internet improves communication, relations, customer service, information and knowledge

sharing. It is real time, convenient, interactive and downright fast. The internet is a great tool for research and development of the company. The flexibility of content and the ability to add and update instantly is yet another benefit. Easy self-service for your customers reduces the amount of employees and therefore saves the company money. If ecommerce is your thing and you decide to ditch the old brick and mortar and host your own internet site youd be ecstatic to know that there will be a significant reduction in renting pixels as opposed to square footage.

Connection Types
There are two connection types: individual connections and networked connections. Individual Individual connections to the internet are made from a single computer that dials into the internet and connects only for the duration needed. The advantage of individual connections is that they are inexpensive and easy to set up. Individual connections; however, are typically slower than networked connections and become incrementally more expensive with each user added. The additional cost of ISP, hardware and software for each new user/computer quickly adds up. Figure 1-1 shows an individual connection type. Networked The alternative to individual accounts is to set up an internet connection through a router or server linked to a Network. That brings us to the topic of network and network types aside from the internet which is a sort of network of networks. What is a network? A network is two or more computers connected together for the purpose of sharing. There are four general things that can be shared amongst the network: hardware, files, applications and information. There are two basic types of networks: LAN (Local Area Network), and WAN (Wide Area Network). LANs have a short reach, a few hundred meters at the most. However, they are comparably fast, enabling sharing. WANs have a much longer reach and are developed for the purpose of connecting several LANs in differencing geographic locations, from point A to point B. WANs are much slower than LANs. Figure 1-2 shows a LAN and WAN network connection. Network Benets There are three basic benefits to networking: cost savings, informed, collaborative employees and increased productivity. Cost savings comes by sharing resources such as hardware (printers, modems, hard drives, CD ROM drives, removable media storage, scanners, cameras, faxes etc.), files, applications with network licenses (Microsoft Office etc.) and information (email, groupware, internet). The savings alone compensate for the cost of the network. In addition a significant increase in company profits incur. Table 1-1 provides the specifics.

Table 1-1. Small-Business Sales per Employee. Average Sales per Employee by Technology in Company.
Industry All Industries Service Construction Wholesale Manufacturing Retail Finance No PCs 83 39 120 139 72 40 58 One PC 96 58 140 159 92 59 79 Multiple PCs Networked PCs 110 134 72 92 152 173 172 192 105 125 73 93 91 100

Employees will be more informed through a surplus of outside resources offered through the internet allowing them to make better informed, more accurate decisions.Email and groupware enables collaboration amongst employees and an opportunity to build relations. It saves the time and effort it would take to produce a memo, hit send, and conduct a meeting and or conference live that is otherwise not necessary with the added feature of email and groupware. It is also a great alternative to a meeting and/or conference in the case that a superior or employee is away on a business trip.

Connection Technologies
Although internet connection technologies are abundant there is really only one recommended internet connection technology adequate for small to large businesses. Why? Because technologies such as DSL and Cable are not equipped to handle the quantity of employees typical of small to large businesses accessing the internet simultaneously even with casual, albeit regular, usage. The only real business solution is dedicated lines. Dedicated Lines Dedicated lines: T1s and T3s can adequately handle the traffic and load typical of most business environments. Dedicated lines maintain the highest in reliability. The lines offer high speeds which enable bandwidth sharing without bogging down the system or slowing the speed. T1s speed ranges from 384Kbps to 1.5Mbps. It requires a network for access and is recommended for small to medium businesses. There are several layers of T1 service:

Integrated T1. Provides voice and data on the same digital circuit. You can decide how many of the T1 connections 24 channels will be reserved for voice calls, and whats left is used for data. Fractional T1. Uses only a portion of the total bandwidth for a percentage of a full T1 rate. Burstable T1. A "pay as you go" service, burstable T1 provides a set amount of bandwidth at all times, but also offers the ability to tap into much greater bandwidth during high traffic spikes. Bonded T1. Offers the full bandwidth of multiple T1s at once for better speed and performance. Combining individual T1s into a single pipeline allows for more bandwidth than two separate T1 lines.

T3s speed is a constant 45Mbps. It likewise requires a network and is recommended for large businesses. Table 1-2. provides a clear comparison between T1s and T3s. Table 1-2. Connection Technology Comparison.
Service Type Speeds Reliability Access Recommendatio n

T1

384K/384K 1.5M/1.5M

Very High

Network

Small to Medium Medium to Large

T3

45M/45M

Very High

Network

The downside; however, to dedicated lines is that, because they are always open they are more prone to hacking without proper precautions which leads us to the topic of security.

Security
Some internet service providers offer network security while others do not. Many prefer; however, to purchase network security software and/or hardware and manage the security themselves. In this instance they do not have to schedule in a time to converse and manage their network with their ISP, but rather they can access their network own security directly. This makes for a more expedient and yet convenient process. The top five internet security suites are: BitDefender, ZoneAlarm, Kaspersky, Webroot, and BullGuard internet security. The criteria in rating and selecting security software is as follows: Firewall, AntiVirus, Antispyware, additional security features, ease of use, ease of installation

and setup, and help and support. Table 1-3 provides a comparison based on the criteria listed above.

Table 1-3. Internet Security Software Comparisons.

Rank Firewall
ICSA Certied W.C.L. PC Firewall Certied File Protection Personal Information Protection Registry Protection Port Monitoring Network Traffic Monitoring Data Filtering

#1 #2 #3 #4 #5 BitDefende ZoneAlar Kaspersk r m y Webroot BullGuard

x x x x x x x

x x x x x x

x x x x x x x

x x x x x x x

x x x x x x x x x x x x x x x

Antivirus
ICSA Certied VB 100% Certied W.C.L. Level 1 Certied W.C.L. Level 2 Certied On-access Scanning Real-time Scanning On-demand Scanning Scheduled Scanning Heuristic Scanning Manual Scanning Scan Compressed Files Auto-clean Infected Files Quarantines Infected Files P2P File Sharing Protection Detailed Virus Information Outbreak Notice

x x x x x x x x x x x x x x x x

x x x x x x x x x x x x x x x x

x x x x x x x x x x x x x x x x

x x x x x x x x x x x x x x

Antispyware
ICSA Certied Descriptions of Found Spyware Real-time Blocking and Protection Detects Adware Detects Spyware Detects Keyloggers Detects Trojans Browser Hijackers/BHO's

x x x x x x x

x x x x x x x x

x x x x x x x x

x x x x x x x x

x x x x x x x x x x

Security
Antispam Anti-phishing Privacy/Parental Control Scans Emails Website Filters

x x x x x

x x x x x

x x x x x

x x x x x x x x

Features
Website History Log Password Protection Automatic Program Updates Local Data Backup Reports and Logs

x x x x

x x x x

x x x x x x x x x x

x x x x x x x x x

Technical Help/Support
Telephone Support Email Support Online Chat Tutorials User Manual/User Guide FAQ/Knowledgebase User Forums/Blogs

x x x x x x x

x x x x x x x x x

x x x x x x x x

Supported Congurations
Windows Vista Windows XP Windows 2000

x x x

x x

x x x

Although BitDefender is ranked as number it is less than perfect with excellent help and support. ZoneAlarm; however, is perfect in every area while being less than perfect in help and support. Should not the security features have rank over help and support? Security features after all, are more essential than help and support. ZoneAlarm is thereby the better internet security software and is most suitable for business use.

Equipment
The required equipment for dedicated lines is modems, routers, T1 and T3 lines and Ethernet cables. Many ISPs provide equipment for free and/or for lease for an additional monthly cost. Figure 1-3 shows the required equipment for T1s and T3s.

Service Providers
Internet Service Providers (ISPs) provide you with a connection to the internet through their network. There are two basic types of ISPs: national and local. National ISPs are large companies that offer access in many cities throughout the country. Local ISPs provide an internet connection for a smaller geographic area. Although local ISPs are often small-business oriented; National ISPs offer a broader range of services, and are more reliable and trustworthy. Considering that cable, DSL, frame relay and T3 are not suitable internet connection technologies for small to medium businesses we will refer directly to T1 internet service providers in listing and comparing ISPs. The list is as follows: AT&T, Access2Go, BellSouth, Broadwing CavTel, Cbeyond Communications, Conversent, Cogent, Covad, CTC Communications, Eschelon Telecom, Global Crossing, MCI, MPOWER, Netifice Communications, New Edge Networks, Nextweb, NTT Verio, OnRamp Access, PAETEC Communications, Qwest, Savvis, SBC, Shaw BIG PIPE, Speakeasy, Sprint, Tel West, TelePacific Communications, US Signal, XO Communications, and Xspedius. Through the process of elimination Covad and Access2Go remain amongst the list of ISPs with the most competitive packages. Table 1-4 provides a comparison of the two T1 ISPs, Covad and Access2Go. Unlike other companies, both Covad and Access2Go absorb the Universal Service Fund (USF) fee. This means that the monthly rate you are provided with is the rate you pay upon invoice, no hidden charges. The difference can range from 5.5 to 11.5 percent of your monthly invoice. Thats 5.5 to 11.5 percent going back into your pocket. Both companies are U.S. based and U.S and Canada supported. Both installation and equipment fees have been waived and the prices are the most reasonable of those analyzed. Covad and Access2Go also have received rave reviews

and ratings from their customer base, nothing but happy customers. Access2Go offers a great deal more static IPs than Covad, 253 to 5; however, Covad offers a 30-day no risk satisfaction guarantee after install for which Access2Go does not. Covad offers a $100 American Express Gift Card with order of 1.5M (2 or 3 year term) or a $200 Gift Card with order of 3M (2 or 3 year term). Although, Covads prices are more expensive; Covad is better known than Access2Go and has a longer history. Covad basically pays you to sign up and with the 30 day satisfaction guarantee theres really no risking it.

Browsers
In order to access the internet it is essential that you have a Browser. A Browser is a software application used to display Web pages via the internet. Browsers typically display graphics, media, and multimedia (sound and video). Browsers typically come preinstalled on all new computers. If the preinstalled browser is not suitable to the user then there is the option of downloading a more suitable browser from the internet at no additional cost. The top five browsers are: Firefox, Google Chrome, Internet Explorer, Opera, and Safari. The criteria in rating and selecting a browser is features, ease of use, security, speed and compatibility, and help and support. Table 1-5 provides a comparison of each search engine based on this criteria. With that being said, Firefox beats them all. Firefox features tabbed browsing, integrated search engines, customization and personalization tools, one click bookmarking, a smart location bar, spell checker, complete ease of use, heightened security, speed, compatibility, email and online support and so much more. Firefox is the perfect browser for both personal and business use.

Search Engines
A Search Engine is a program that searches the internet and locates the web pages via typed keywords. The top five major Search Engines are: Google, Yahoo, MSN Live, AOL Search, Ask.Google; however, has the largest database of web pages and/or resources. It is the most popular search engine and the most active. It has a good solid history and is most reliable.

Cost
Dedicated lines run from 250 to 5000 a month depending on the ISP and the package. The cost of T1 service specifically ranges from $250 to $1000 monthly; whereas, a T3s specific price range is 3,000 to 5,000 monthly. Additional Fees include Taxes and Surcharges of 5.5 to 11.5 percent of the invoice. Installation for a T1 typically matches the cost of monthly internet service; however, installation is a onetime fee. Some ISPs compete by offering free installation which generally

includes network and internet set-up. Some ISPs also compete by offering free equipment while others lease the equipment for an additional monthly charge. Table 1-6. provides a cost comparison of T1s and T3s. Table 1-2. T1 and T3 cost comparison.
Service Type Network Included (Set you LAN or Taxes + Surcharge $250-$1000 WAN up (surcharge of 5.5 ( one time included for alongside to 11.5 percent of fee, waived free or leased Internet for no invoice, sometimes by some for additional additional $250-$1000 absorbed by ISP) ISPs) charge charge) Included (Set you LAN or Taxes + Surcharge $3000WAN up (surcharge of 5.5 $5000 (one included for alongside to 11.5 percent of time fee, free or leased Internet for no $3,000- invoice, sometimes waived by for additional additional $5000 absorbed by ISP) some ISPs) charge charge) Internet Service Additional Fees Installation Equipment

T1

T3

Training
The process of learning the basics of computing and the internet have been simplified with the onset of internet access and online tutorials. Online tutorials are fast, flexible, convenient and inexpensive (many free). There is no better way to learn the basics of computing and the internet than with hands on learning. It is the best alternative to in class instruction which is often lengthy, inflexible, inconvenient and expensive. BBCs Web Wise offers both computing and internet tutorials online for free.

Conclusion and Recommendation

I have come to the conclusion that internet access is most feasible for Jackson Co. The pros outweigh the cons. Internet access via network will increase Jackson Co. competitiveness, profitability and productivity. It will likewise assist in company expansion. Because Jackson Co. is a small business I recommend a Bonded T1 with at least 3Mbps connected over a LAN and serviced through Covad communications. I recommend utilizing ZoneAlarm security software, the Firefox Browser and the Google Search Engine for optimum results. I recommend computer

and internet employee training through free internet tutorials, specifically, BBCs Computer and WebWise tutorial.