SMB IT Professionals Say Their Companies Are Unprepared for Online Growth

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Neustar Survey Reveals 73% of SMBs Can’t Support a Sharp Spike in Online Business

Whatever your needs, count on the expertise that built the worlds largest DNS network.

UltraDNS Basic provides optimal website and application performance, while remaining affordable for companies that can no longer compromise performance and security.

Neustar, Inc., a provider of market-leading directory and Internet infrastructure solutions, including the UltraDNS brand of domain name system (DNS) managed hosting and website security solutions, today announced the findings of a survey that reveals 73% of small and mid-sized businesses (SMBs) nationwide are unable to handle a 200% spike in online traffic without changes to their website. The number jumps to 93% in the case of a 300% increase in traffic. The survey, part of a study conducted in March and April of 2011 by a team of experts leading UltraDNS’ small business advocacy efforts, illustrates just how unprepared SMBs are to cope with rapid business growth, as well as concerns around keeping technology costs low versus implementing the best option.

Other findings of the survey:

IT’s confidence in the infrastructure’s ability to handle increased traffic flow without changes to their current website wanes as growth accelerates.
     * More than half the respondents, 55%, express confidence that they can handle a two-fold increase in traffic.
     * Only 7% have the same confidence that they can handle a 300% rise in website traffic.

IT has strong concerns over technology compromises made to keep costs down while trying to build for the successes targeted by management.
     * 30% of the IT professionals surveyed go for savings through “every free or low-cost service” available, while only 12% say they’re willing to fight for an “optimal” solution regardless of cost.
     * Nearly half the respondents admit they recommend a “best option” to management but then settle for a compromise.

For more detailed findings from the survey, sign up for our virtual SMB Roundtable on April 20 at 1:00 p.m. ET.

One key factor in this equation is DNS management, the foundation of a company’s Web presence, which every online visitor relies on to engage with any large or small business on the Internet. In fact, 38% of the respondents say they use the DNS service provided by their ISP, while another quarter, 24%, rely on a ‘do-it-yourself’ setup, and 16% count on a free hosted option. While some of these services have come a long way, most simply don’t have the scalability or stability required to keep an online business running through rapid spurts of growth.

“Our research into this market has shown us the most common problems stemming from a lack of true scalability and related security—website downtime and DDoS attacks—and our specific goal in developing the UltraDNS brand of solutions was to address exactly these issues,” said Alex Berry, Senior Vice President, Internet Infrastructure Services, at Neustar. “UltraDNS Basic provides optimal website and application performance, while remaining affordable for companies that can no longer compromise performance and security. The new survey illustrates the huge market need for these services.”

“Many small businesses, particularly those powered by online marketing and increasingly dependent on e-commerce, know they might see spikes in online traffic anytime, but they’re not ready for it,” said small business consultant and columnist Gene Marks. These firms have become accustomed to free services with limited capabilities, and this becomes a serious problem when they need to scale up in a hurry. The market needs more DNS solutions that are simultaneously affordable, scalable, stable and secure.”
The survey of 300 IT workers at small and medium-sized businesses was conducted online in partnership between Neustar and Decipher, Inc.

UltraDNS, a cloud-based managed DNS service, offers 100% uptime SLA without requiring additional hardware, software or in-house expertise.

Neustar will reveal additional findings from this study in a virtual roundtable: Free Today, Gone Tomorrow: Are You Really Prepared for Success? on Wednesday, April 20 at 1:00 p.m. ET. Join SMB experts Gene Marks, Melinda Emerson, Rick Rumbarger of Neustar and UltraDNS customer Phil Chen, Director of Systems Engineering at VMIX Media, as they discuss how small businesses can prepare today for success tomorrow. Register for your seat today at: https://www2.gotomeeting.com/register/881108410

About Neustar and Neustar UltraDNS
Neustar, Inc., provides innovative solutions and directory services that enable trusted communication across networks, applications and enterprises around the world. Leveraging a unique directory platform and proprietary, patented technologies, Neustar UltraDNS Services – the company’s comprehensive suite of managed DNS offerings – provides a range of infrastructure solutions to organizations that rely on the Internet for their critical business processes, applications and services. Today, UltraDNS Services are used by more than 3,000 enterprises and TLD infrastructure customers worldwide, and currently power the resolution of nearly 20 million global Internet domains. Visit http://www.neustar.biz and http://www.ultradns.com.

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Allen Goldberg
Neustar
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