Anthony Ricigliano Business Blog

By Anthony Ricigliano: It wasn’t long ago that start-ups looking for funding would start with the “Big Three” of venture capital firms; Kleiner Perkins, Sequoia, and Benchmark and then work down the line until they were able raise the money they needed. While other VC firms have risen to the top shelf, the bigger changes are happening at the lower end of start up company funding.

The rumble being heard by the VC’s is coming from angel investors who would normally take the early rounds carrying higher risk and lower prices. As companies started seeing some success and began seeking larger sums of money in their investment rounds, the angel investors would step aside for the venture capital guys to come in to take things to the next level. The problem for angel investors at this level was that the handoff to the VC’s would often come with heavy dilution of ownership at a much lower risk level than what the angels started with. Adding insult to injury was that, even though the VC’s were coming in at a higher valuation, they often came away with a heavy ownership position which displaced the early angel investors.

Just within the last few years, getting a start up off the ground has become much less expensive for a variety of reasons. It’s not uncommon now for a start up to be sufficiently funded after an angel round and, should funds be required, the amount required is often much less than what might have been required a few years ago. This change has allowed original angel investors to fund follow on rounds as well as to retain their ownership position. If VC funding is needed at all it’s at a much later stage to fund a sale or large expansion. This puts VC’s in companies at much higher valuations which lower returns. Additionally, the stronger the company’s position, the less compelled they feel to give VC’s everything they want.

This is a new paradigm for VC’s, who have grown accustomed to being pursued for funding. They’re not quite used to the idea of having to pitch themselves to start-ups with owners in their twenties who don’t see VC funding as the end all solution. This generation of owners sees angel investors at a variety of events, presentations, trade shows, etc. and trusts these relationships as more of a partnership than as funds coming in with seats on the board and majority ownership attached. Another benefit is that angel investors tend to be far more nimble and can act quicker than VC’s.

Another change is that the funds accessible to angel investors are growing to the point where they’re starting to rival the size of smaller VC’s. There are a growing number of angel funds with at least $30 million to invest. This blurs the line between what angels and VC’s can invest in and makes for a very competitive environment for promising start-ups. Angel funds can now easily invest more than the $500,000 which has served as the line in sand between angel and VC investments. The biggest knock against the angel model is that it forces entrepreneurs to think small, perhaps sacrificing the chance to become the next $10 billion company. This in effect, is turning start ups into singles hitters as opposed to swinging for the fences.

In reality, however, increased angel funding will allow for more companies with promising ideas and business models to find funding. If these companies start off hitting singles and then later decide it’s time to hit the home run, they can raise funds with a traditional VC down the line.

Read Business & Economy News by Anthony Ricigliano

News By Anthony Ricigliano: The powers that be in China, after seeing growth heat up to 11.9 in the first quarter of the year, decided that is cooling down the economy with lending and investment curbs was needed to prevent overheating. These curbs went to work immediately, slowing the growth rate more sharply than expected with a result of reducing demand for U.S. and European factory machinery, industrial components from Asia and iron ore as well as other raw materials from Australia and Africa.

The timing of China’s slowdown comes at a bad time for exporters that have seen sales go slack just about everywhere else. Already a huge trading partner for many of these countries prior to the recessions that hit the U.S., Europe and others, China had taken a role as the only game town due to a stimulus-driven expansion program designed to compensate for slowing sales elsewhere.
Even with slowing growth China overtook Japan as the second-biggest economy in the second quarter. It is a buyer of 28 percent of Taiwan’s exports, 25 percent of South Korea’s and more than 20 percent of Australia’s mining and raw materials production. Japan just reported sharply lower growth for its second quarter as the growth of exports was almost halved from the first quarter
That being said, it is the producers of iron ore for steel production and other construction-related raw materials which are expected to take the hardest hits from China’s self imposed slowdown. The winding down of a construction boom pushed by China’s $586 billion stimulus program as well as billions of dollars in of bank lending is already being felt. These producers include Australia, Indonesia, Malaysia, Brazil and parts of Africa.

New construction projects dwindled as Beijing wound down its stimulus and tightened credit in the second quarter to take the air out of inflating bubbles in real estate and stock prices, slashing demand for steel, cement and other construction related materials. Factory output slowed as well and is expected to head lower in the third quarter as well.

Overall, China’s import growth slowed by about one-third in July, sending tremors throughout the world as the most robust buyer of imported goods for many countries took a step back from the table. An example of the bind China’s slowdown is putting countries in is Taiwan, a major source of components for Chinese factories that make televisions and other electronics, which are in turn sent as finished products United States. China’s slower growth, combined with slowing sales in the U.S. at the same time could hit Taiwan’s manufacturing industries particularly hard.

China, at this point, sits in the enviable position of trying to restrain growth while the rest of the world either relies on them for their relatively healthy economies, such as Australia or tries to recover from recession, like the U.S. With China expecting slower growth over the next several quarters, it could be a rough ride for everyone.

Author Anthony Ricigliano

In 2008, the Interactive Data Corp (IDC) predicted that 75 percent of the U.S. workforce will be mobile by 2011 with other countries closely approaching that number in the same year. The new tech-savvy workforce is demanding balance and flexibility as part of their day-to-day job description. No longer do they want to be tied to a desk from nine to five, day after day.

While corporate America may not be as excited about this idea as their employees, they will have to provide mobile solutions if they expect their current staff to support critical systems in the new global marketplace that is active 24 hours a day, seven days a week. In the past, if a system experienced an outage during off-hours, it could often wait until the next morning. If it was critical, the developer might have to come into the office to correct the problem. This was an unpopular, but acceptable, practice that every IT shop followed.

With recent advances in technology, most of these tasks can be completed from a remote location just as easily as if the developer was on-site. This makes it very hard for any reputable company to justify waking someone up in the middle of the night to come into the office when they could sign-on from home. It becomes even harder when more and more systems must be kept running every moment of the day and night, and the number of critical calls continues to increase with each new system.

A company that is unprepared to meet the mobile support needs of their employees may find that they will lose their most qualified workers to other companies that can provide a better method for remote work. After all, this becomes a win-win solution as the Information Systems department gets better support from more satisfied employees, while the individual worker has the flexibility to spend time with their family and still perform well at their job.

To support a mobile business model, the Information Systems department will need to make several infrastructure changes. They should address security to make sure that they don’t open the door to hackers, viruses, or any unwanted connections. Once security is in place, they will need to install a server that resides outside of the company firewall for external connections and user id authentication. Many companies use Citrix software or Virtual Private Networks (VPNs) to enable their employees to connect to the internal network.

On the employee’s side, they will need access to a Wi-Fi connection or aircards to connect through a cellular provider. Equipment can vary from desktops to laptops to smartphones. In today’s world, almost any electronic device that can connect to the internet can be used for mobile support. The Apple iPad can use apps that will allow remote connection and control of any desktop device via the internet. In theory, this could allow support personnel to work from anywhere in the world just as easy as from their desk for less than a $600 investment.

In addition to providing much needed support around the clock, allowing employees to perform their support tasks from remote locations will lead to a more satisfied, and more productive, work force.

By Anthony Ricigliano

Computing in the cloud is a natural progression for streamlining and obtaining cost effectiveness with regard to all computer functions for modern business operations. By using cloud computing, a business can access equipment, programs and technical personnel at a fraction of the cost of trying to duplicate those services and hardware within their own businesses.
What is Cloud Computing?
In reality, it operates physically much like an electrical utility. The utility invests in equipment, personnel and operational programs to provide electricity to the other smaller businesses. These businesses pay only for the amount of electricity they use when connected to the utility’s electrical grid. Cloud computing is an excellent way for a business to obtain greatly enhanced computer services, equipment and technical expertise. The business only pays for the resources they use for their own business operations with a small monthly fee.
Who Has Control?
Control is always a top priority and concern for any business that outsources important tasks or services to a third party business. There are three main models for cloud computing that allow varying degrees of control by the subscribing businesses. Fees would adjust accordingly, of course. Clouds can be customized and scaled as needed for any size business.
1. The public cloud model is the least expensive and most general offering of services, similar again to the use of electricity by an individual homeowner connected to the public utility grid. Everyone can access the same services and receives basically the same results.
2. The community cloud is slightly more expensive and is designed to provide a special group of services to businesses that have similar interests. This would be more like joining a specialty club, like martial arts or ballroom dancing.
3. The private cloud cost the most, but also offers the most potential for individual customization. It would be rather like leasing an expensive custom sports car, for a monthly fee.
What about Reliability?
With limited control over equipment and programs, a user company would naturally be concerned about reliability and security issues. Any time anyone accesses the Internet, there is a potential for security problems. Having the state-of-the-art protection programs in action is the best way to keep up. This is another area in which using cloud computing can be cost effective. The cloud provider is the one doing the investment in top notch security measures, and they are regularly updated. Reliability is another important issue of concern to businesses using cloud computing. Again, the provider maintains technical staffing on site to address all technical concerns as they come up.
How are Cloud Services Used Today?
There are many ways that cloud services are used today by all sizes and types of individual businesses and government agencies. For example, a video production company needed to expand their server capability in one week form 50 servers to 500. This would be next to impossible without cloud computing. Other companies use cloud programming for customer contact management, tracking sales calls and results, database management, inventory, accounting and other statistical manipulation.
Where did the Cloud Come From?
The “Cloud” is a natural progression in computer functions that is keeping up with the development of the Internet and changes in communications methods. Back in the 1960s and 1970s, it was normal to have one computer fill up an entire building with its mainframe. As the industry developed and computers were downsized over time to the laptops and mobile devices of today that can access the Internet, it was appropriate for cloud services to arise. Client servers were first, and hosting by third parties eventually developed into the large providers of cloud computing today. For the foreseeable future, cloud computing looks to be an excellent answer to the increased capacity and cost containment that all businesses need for sustainable profitability

Technology News by Anthony Ricigliano: Voice over Internet Protocol – a.k.a. VoIP – is taking the business world by storm. While larger companies are slower at shifting their communication departments to the technology, the much more agile small business owner has embraced VoIP as a solution for increased productivity at cut-rate costs.

Understanding VoIP Features

To the technological novice, VoIP is a bit of a mystery. Telephone calls are made and received via the Internet; that being so, there are ample technological advantages that heighten connectivity avenues. For example, VoIP Review (1) underscores that one of the most desirable tech features is the desk-to-desk calling ability that allows for instant connectivity of offices the world over.

Providers of the service also offer business applications more commonly associated with traditional voice and telephony technologies. These include the popular conference calling abilities, hold music and also a programmable automated attendant. Unlimited local and long distance calls, no need for long service contracts, faxing capabilities and even online training webinars are just some of the benefits offered by VoIP business providers vying for the company business.

Possible Downsides of Voice over Internet Protocol

It would be foolhardy to assume that all VoIP providers are created equal. Although their overall services may mimic one another, differences in voice quality vary, usually depending on the Internet connection and also equipment utilized. This has prompted business VoIP providers to issue quality of service guarantees, which assist the commercial customer in differentiating between the industry giants and the wannabes.

Dropped calls are virtually unheard of although they can happen, especially if the Internet experiences particularly heavy traffic at a given time. Not surprisingly, a quality of service guarantee offered by the various companies here, too, separates the heavy hitters from the up and comers.

Business Advantages of Using VoIP

Although traditional telephony services appear to have a very slight edge when it comes to voice quality and dropped calls, they fail to shine in the areas of long distance rates. Depending on the long distance carrier with which the business contracts, these charges can be prohibitive. VoIP networks frequently provide these calls free of charge or – if they fall outside a predefined network – at very inexpensive rates.

Maintaining a VoIP network is downright cheap. The business owner, who relies on traditional phone service, in large part subsidizes the cost of copper wire maintenance and line upgrades by the big telephony carriers. Infrastructure requirements of VoIP are virtually nonexistent. Not surprisingly, there are no costs that need to be passed on to the commercial client. This in turn greatly reduces the cost of the overall service.

Fad or Here to Stay?
There is nothing faddish about Voice over Internet Protocol. In fact, the United States’ Social Security Administration (2) has committed to changing its entire nationwide field offices’ – the number currently stands at 1,526 – phone connectivity to a centrally directed VoIP system that is integrated with the organization’s data network.

Callers to the agency may remember that initially the phone system was a conglomeration of patch-worked systems that consisted of moved lines and dead ends, all of which contributed to callers’ frustrations over dropped calls and dead air. Since VoIP can send more than one call via a broadband hookup, it lets the agency increase its usage without needing to add costly to install – and maintain – lines.

This flexibility makes it highly desirable not only to the United States government but also to the business community that is recognizing a shift in the way of doing business. A global marketplace is changing where business is done, and inexpensive connectivity and down-home flexibility are quickly becoming the hallmarks of the VoIP-powered business that can roll with the punches and adapt to rapid changes.

By Anthony Ricigliano

IT News by Anthony Ricigliano: The topic of data leaks has been making headlines in the world of IT professionals for some time now. With each passing year, it seems that more ways are being found to punch holes in security systems from both external and internal sources. As more companies become more conscious of their potential security risks, those seeking to circumvent the system are busy finding new ways to thwart their efforts to secure their data.

One of the easiest ways for even amateur hackers to gain access to your data is from emails sent by your employees. Perhaps an employee makes an inquiry by email regarding the availability of an item needed for the office. The vendor replies with a quote, and your employee responds with an email containing the company credit card number. By the time it is discovered that the number has been leaked, there can be thousands of dollars charged to the company card, requiring many hours to rectify.

Perhaps the company has employees who work from home or travel. Documents sent via email that contain information on an upcoming bid structure and amount can fall into the hands of the competition, who can then undercut your bid. Discussions of proposed acquisitions can destroy all chances of the purchase.

Your customers might innocently request that confidential information be sent as an email attachment. Perhaps you are an accountant, and the client would like to review his tax returns before you file them. He may request a list of his prices under a competitive pricing agreement that would create ill will among other customers if they knew he was receiving preferential pricing. The client can also initiate the data leak by emailing you information such as his social security number or bank routing information.

Many employees routinely email files to their personal email accounts so that they can access the data from home. This may be legitimate, as when he or she merely wants to work over the weekend or needs instant access to data when out of the office. However, it can also be a case of an employee providing the information to your competition.

Your employee data security can also be compromised easily. An email attachment of your employees’ names, home addresses, and phone numbers can be an issue if intercepted by an unauthorized user. If you add the employees’ social security numbers, birth dates, or anniversary dates, virtually everyone on the list is at risk of identity theft.

Fortunately, there are ways to prevent data leaks. The first step requires almost no expense and is simply a matter of implementing policies designed to protect your company’s information. Establish policies on who can connect, when it is allowable, and from where they can connect. Forbid logging in from public computers, such as Internet cafes or airport kiosks. Define a policy for file transfers to removable devices such as laptops, disks, or memory sticks. Include an audit trail so that you will be able to track who has downloaded what. Create a list of approved devices to help prevent hackers from downloading data.

Encrypt files at both the file and disk levels. Files that are encrypted while they are in motion are less likely to be of any use to a hacker even if intercepted. It also allows you to monitor your most sensitive data and see where it has been and who is accessing the files.

Establish a secure perimeter around your network. All data being sent out should be scanned for patterns or keywords that could identify a potential leak of sensitive information. If a match is found, the system can block the transmission.

Think of the business world as a desert through which you must navigate if you are to be successful. Now imagine that your company data is the bottle of water that will keep you going on your trek. As long as the bottle remains intact, you will be able to use the contents when needed. If it begins to leak, however, you are losing the lifeblood of your business. Other denizens in the desert can use the water you lose to sustain their own existence. They may be scavengers seeking an easy drink or predators out to cause you serious harm. Either way, your loss is their gain. Once the contents of the bottle have been leaked, the water is contaminated, and even if you can scoop it back into the bottle, you are likely to get a great deal of debris you do not want.

Author Anthony Ricigliano

Author Anthony Ricigliano::: The invention of email attachments back in 1996 changed the way that we communicate as well as the way that we view the internet. With the advent of such a system, people started wielding the ability to easily send out properly formatted documents to their email contacts with a very little amount of training required. Attachments became an overnight craze that resulted in business practices which are radically more streamlined. However, the invention of file attachments has also come complete with a hidden price–storage space. Storing huge files in an email inbox can result in exceeding mailbox storage limits. Keeping attachments can also hurt a business by impeding the performance of a server, leading to the lagging load time, backed-up files, and requiring system restores. A large number of attachments in an inbox can obstruct the proper functioning of an email system. This is the reason why it is so important to organize and archive attachments. The amount of money that can be saved by taking control of a mailbox overflowing with email attachments can save a company from debilitating increased storage costs. An archival and organizational system can save innumerable company dollars, including both hard and soft dollars.

Archiving attachments is a simple process that almost anyone can figure out without much research or training. Although many email servers come with an integrated archiving and organizing systems, higher end software is also readily available. Commercial archival and organizational software may better suit the needs of larger companies and corporations, or those who desire a greater level of organization and functionality.

Archiving attachments is a process that can lead to higher efficiency and productivity. Besides freeing up valuable inbox space, archiving attachments can provide quicker access to archived emails. Through the use of a search tool, keywords can be typed in to find the email someone is searching for, making access to emails a smoother process. Attachments that are filed away are more secure as well. Accidental deletions and server crashes can lead to the loss of crucial documents. Archiving these attachments will ensure that the loss of important text files is far less likely.

Attachments, while useful, are also costly in their ramifications. Slower delivery times are a hindrance in situations that require speedy action. Large files weigh down a server, causing severe backups. System restores become necessary and can lead to the loss of valuable information.

Because file attachments comprise 95% of the bandwidth of an email system, they are also the cause of the majority of the costs associated with network storage. Archiving these files can cut these costs exponentially. Archiving files takes up less storage space in an email system. Less storage space needed in an email system means a lower price tag overall. Adding an archival system to an email management plan will allow funds to be directed towards more lucrative investments.

Overall, implementing an archival and organizational system for email can help to make a business more effective under the pressures of crucial deadlines. By reducing storage costs, such a system will eventually pay for itself. The massive gains in productivity associated with adding archival software to an email system can lead to happier users of a system. The ease with which the process of archiving attachments is done can facilitate the protection of sensitive information. Decreasing the bandwidth used by a system is as easy as archiving and organizing attachments, which can in turn lead to quicker delivery times and a speedier system. The benefits of adding an archival organizational system are truly fantastic and should be a goal of any company looking to alleviate problems in excessive attachment storage.

Anthony Ricigliano

Today’s business world is a difficult place for warehouse managers and inventory specialists. One area where the stakes have been raised significantly is the distribution industry. The margin for error is razor thin and those businesses that succeed are the ones that use technology to their advantage. Efficiency is the name of the game in distribution, since having too much or too little inventory can lead to equally ugly problems. So what is the magic solution for those in charge of large distribution companies? An excess of information and a well-equipped integrated system are two great resources to have in your back pocket.

Though the current economic climate has brought distribution difficulties to the forefront, the business is a tough one in any economic climate. Warehouses that contain too little inventory can lead to delays, since orders won’t be filled on time. This can hurt relationships with end-clients and important business partners. On the flip side, efficient warehouses cannot contain too much inventory, since this will take up valuable space and drain the bottom line. The key is finding that middle ground, where a business has just enough inventory to fill its needs, while not wasting space in the warehouse with dead weight.

So how do businesses find this balance and put their distribution company on the track toward success? Most find that a dedication to precision analytics is the right approach. Though it might not seem obvious, the numbers are there, hiding under stacks of old order forms. The key for businesses is taking this information about clients, products, and time frames and turning it into something much more useful. It is especially worth noting that there are ways to make this happen in today’s business world, giving businesses the power they need to succeed in a competitive marketplace.

During the day-to-day routine of a typical business, veritable islands of data are collected. These data points might include information on a customer’s buying history and his quarterly needs. It might contain information on the perfect inventory levels for that business at its peak efficiency. The data might indicate pricing points that a business needs to implement in order to stay competitive. All of the information is there, but the disjointed nature of business data makes it difficult for companies to react. With this in mind, successful distribution businesses do something to change that trend. They use remarkably precise systems to collect, organize, and dispense data for people to use in decision making.

In the past, business owners and warehouse managers have viewed this type of program as an unnecessary expense. They thought of it as a luxury. Today, the smart professionals understand that these tools are an important part of the efficiency process. The money saved and business relationships preserved as a result of integrated information systems is enough to justify its cost to almost any business. With a solid system in place, managers will know exactly when a customer is likely to order and they will know how much he is going to order. This can help in preparation, giving the warehouse time to stock up. Likewise, this helps smart businesses avoid overstocking, which can be wasteful from a cost perspective.

Likewise, the data compilations are presented in an analytical way, giving smart business people the opportunity to compare their methods with others in the industry. The business world is wildly competitive at this point in time, so having this information can be the difference between a successful company and one that struggles. Likewise, it can help to promote growth, providing a distribution business with optimal allocation of its most important resources, including man hours and precious warehouse space. In all, integrated systems are the key to efficiency in a market that demands such.

Business And Technology Articles by Anthony Ricigliano

A Wireless Distribution System (WDS) allows different computers and other hardware, known as access points, to connect using wireless radio frequency links.

Wireless Distribution System is the name of the wireless connection used for the IEEE 802.11 standard network. Usually a WDS will involve a base station that actually is wired to the Ethernet, and which acts as a radio transmitter of the connection signal to the other access points. Communication between all the access points in the system occurs over a single radio channel usually with either Wireless Equivalent Privacy (WEP) or Wi-Fi Protected Access (WPA) encryption for security.

The WDS uses wireless repeating allowing the system to bridge multiple access points at the same time. Wireless bridging can also be set up that only allows WDS access points to communicate but not other types of wireless clients.

The advantage of wireless networking is, of course, the elimination of any need of cables to connect access points. A wireless network allows users a greater degree of mobility and flexibility especially mobile access points are in use.

Compared to some other connection options, the Wireless Distribution System is considered cost-effective since adding new access points does not require new PC cards. All that is needed is that the access point is reconfigured. The WDS can also easily be expanded to locations that are not near existing wired networks, something that is often difficult or unfeasible when using cables to connect networks.

Among the disadvantages of the WDS is the loss of throughput caused by the need for communications to be retransmitted to each client. In a wired system, the communication is generally made directly between two access points.

Another disadvantage is that due to the lack of standardization, the Wireless Distribution System does not support more secure encryption key types that are handled dynamically. The WDS can use only static WPA and WEP keys, which are notably easier for hackers to break. However, it is possible to use WPA with pre-shared keys, for example, WPA2-PSK Mixed Mode and WPA-PSK are available using firmware updates.

The Wireless Distribution System, then, is a convenient method of wirelessly connecting access points in an IEEE 802.11 network. The system is cost-effective and flexible, and can handle multiple clients using wireless repeating. However, the maximum effective throughput is halved due to information retransmission, and the WDS does not support dynamically generated and rotated encryption keys.

News And Advice By Anthony Ricigliano

Many small businesses are taking the opportunity to go green for a variety of reasons including social responsibility and the approval of customers. There is also the potential for company-wide green initiatives to cut costs and improve the bottom line. Prior to deciding on what types of actions are to be taken, there are steps that management should take to optimize the initiative. They are:

* The initiative to go green must come from the top of the company. This lets everyone know that the issue is going to be taken seriously as a bona fide direction for the business.

* The initiative has to engage all employees across the company. This is a great opportunity for a discussion on the benefits of going green.
* Green activities must both relate to the business’ mission and further its objectives.

* The initiative must be integrated into the culture of the company. It’s the difference between being a green company and being a company that works off of a green checklist.

Once the initiative has been introduced, it is advisable to start with simpler tasks and activities to get everyone in the company on the same page. Go with actions that are easy to incorporate and follow. Here are ten actions that any company can undertake while wading into its go green initiative:

1) Start a recycling program where cans, bottles, and paper are disposed of in separate containers.

2) Go as paperless as possible. Do in-house presentations on power point instead of printing out meeting materials. File and save documents electronically.

3) Reduce marketing collateral to only the necessities. This action alone can save a lot of money over the long term.

4)  Commit to buying ENERGY STAR-certified products.

5) Reduce energy consumption by programming computers and other equipment to go on standby after a period of sitting idle.

6) Turn off computers at the end of the work day. One caveat, if older computer screens are in use which have never been turned off, the cooling down process can harm them. Leave them on until they can be replaced.

7) Switch out incandescent bulbs for fluorescent ones.

8)  Incentivize employees who carpool, ride a bike, or walk to work.

9) Eliminate plastic and Styrofoam cups.

10) Use the front and back when printing or copying.

Starting with these activities will help to build the foundation for bigger green initiatives down the line. Get everybody on board and these actions will get you on the way to being a green business, much to the delight of your employees and customers.

By Anthony Ricigliano