Posts Tagged 'Services'

April 2, 2009

We Need New Small Businesses

It is often said that small business is the backbone of our economy. According to the U.S. Small Business Administration, small business employs half of all private sector employees. Over the past decade, small business has produced between 60 and 80 percent of net new jobs. We need small businesses to prosper and lead us out of the economic mess in which we find ourselves.

I track growth in domain names every week. I think it indicates how quickly new small businesses are being formed. After all, what business can you think of today (large or small) that does not have some sort of web site? I can’t think of any. One of the things on any small business start up checklist today is the web site. Hence, most all of them register a domain name.

So what’s been happening with growth in domain names? Lately, it’s not too pretty.

Chart

With all the talk lately about stimulating the economy, one of the best ways to do this would be to encourage the formation of new businesses.

Some would argue that we need to fix the credit market mess to help banks be able to lend to small business startups. This couldn’t be further from the truth. How many small businesses do you know that started with a commercial loan from a bank? I cynically say that banks do not want to loan to businesses until the business can survive without need of a bank, and that was true even before the credit crisis. This was certainly true in SoftLayer’s case – when the founders were preparing for launch in late 2005, there wasn’t a bank anywhere that would touch the SoftLayer business plan. What I’m saying is that the credit crisis isn’t that much of a barrier to small business startups. Passionate entrepreneurs will find a way to get going.

But all the passion to start one’s own business doesn’t go very far in the face of the real barriers to starting a business. One of the real barriers that an entrepreneur must overcome is tax issues. Do they begin as a sole proprietor? A partnership? An LLC? An “S” Corp? Should they incorporate? All of them have different tax implications. All of them have to deal with either income taxes at the personal level or corporate level. Some have to deal with self-employment taxes. Others must deal with 941 taxes. Then there are state and local tax issues, such as the margin tax if you’re in Texas. And don’t forget sales taxes and property taxes either.

One of the strategies that allowed the Internet to cement itself in our society during the 1990’s was this: just let it develop without taxing it. Without that burden, the Internet took off like wildfire.

Ergo, if we’d like a bunch of new small businesses to get going, let’s ease up on the tax burden on new startups. This would cost the government hardly any money at all. Think about it – businesses that don’t yet exist do not pay any taxes. Workers that are not yet employed do not pay any taxes. Currently unemployed workers do not pay income taxes, except for a pittance on unemployment benefits. So allowing new businesses to form and employ workers and transact business “tax-free” for a defined start-up period would produce an EXPLOSION of small business startups.

How long should this tax free period be? Per the SBA, if a new business survives 4 years, they have a great shot at surviving long term. So why not give all new business startups a tax holiday for four years as they establish themselves? Can you imagine how big the tax base would grow as these healthy, strong 4-year- old businesses begin paying taxes?

It seems that the biggest issue facing our new President and his administration is how to pay for all the things they’d like to do. Let me suggest that expanding the tax base is the best way to grow government revenues, as opposed to increasing the rates on the current tax base. Allowing a flood of new businesses to take root and grow our tax base may be the best way to fund our growing public budgets.

Naturally, SoftLayer would be more than happy to assist these new businesses with our enterprise class data center outsourcing services so that the new businesses focus on their business plan – not their IT overhead.

September 30, 2008

Servers. Services. Support.

IT is a very fast paced industry where you always need to fight just to keep up. Some companies go that extra mile in an attempt to stay ahead of the curve. In my time here at SoftLayer, I can say I have never once been bored. There is always something to keep your interest, some new innovation that needs to be looked at. Three of the aspects of this that have a drastic effect on the industry as a whole are the servers that we can provide, services to use on those servers and finally support for both.

We are always looking to provide the best possible hardware to our customers. Every time we evaluate a new piece of hardware, we run it through the gauntlet. “Will this hardware work with our system, what kind of driver support does it have, and most important is it going to be an improvement for customers?” Once it’s decided that a new piece of hardware would be an improvement the real testing begins. Everything is thrown at the hardware to ensure it meet our high standards. The latest and greatest isn’t rushed into production; we want to be sure that it really does perform to our standards in the real world and not just on paper.

Having all this hardware is great, but you need to have some innovative services for the customer to go along with it. SoftLayer really has shined in this area. There are so many different services available, there is no way I could even start to list them all. The portal alone offers more server control than anyone else in the industry. Our provisioning system can provide a server in a matter of hours and not days and with tools such as StorageLayer, RescueLayer and the Portal you can perform complete disaster recovery remotely! You can even reboot your server remotely via a cell phone while you’re on vacation without having to open a single ticket or talking to a single person.

When you have all these great services, you need to back them up with great support. Here at SoftLayer we have just that. On top of our ever growing KnowledgeLayer, we have fast and efficient ticket and phone support. Within minutes of opening a ticket, a technician has already read it and is already looking into your issue. We don’t have those pesky call queues you sit in for hours just to get a human voice, you call support and the phone is immediately picked up by a skilled technician ready to address your every issue. Unlike many places I have worked, the NOC is not a dead quiet room with people staring at computers screens. The NOC is constantly active. Our support team is just that, a team. They are constantly working together to find solutions to any number of problems.

I can’t even express how much of an honor it is to work at SoftLayer. Every day you come into the office wondering what great innovation we have next for our customers. At the end of the day, I can go home knowing that we are providing the best hardware, the best services and the best support to our customers.

-Mathew

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