Right now, iPad users are in classic bleeding edge territory as the early adopters explore the neat features and the disappointing drawbacks of the new device. There will be joy and tears as they make their journey.

It’s great they are making those discoveries as this knowledge will make life easier for the later adopters and Apple will address many of the disappointments in their next version, which is the main reason for holding off buying the first version.

We saw this with the iPhone — the early adopters rushed into buying it even though it wasn’t a particularly well featured device. A year after the original iPhone release, the new 3G model addressed most of the dissatisfaction with the original model. It was a better, cheaper product.

Exactly the same thing will happen with the iPad, and that’s why you should save your pennies. Almost certainly the next version of the iPad will include multitasking, without which you can’t be talking on Skype while editing your LinkedIn profile and will probably prove the biggest headache to iPad users.

Where the iPad may really change things is in the retail, logistics and medical industries. All of these sectors have seen some adoption of tablet computers, but the clunky, overpriced Windows based tablets have held the market back. The cheaper, lighter and better designed Apple device will probably accelerate the take up of tablet devices and the business methods that work with them.

The retail angle shouldn’t be understated. We recently looked at how iPhone products like Redlazer are changing the retail industry and Smart Company’s Craig Reardon recently described how Australian retailers are being left behind by the net.

It’s no coincidence one of the first business applications for the iPad is a point of sale application. Should the next iPad version be released with a rear mounted camera, it will be more than a glorified cash register and deliver some serious power to smaller retailers.

The iPad further illustrates just how pervasive computing and the internet is capable of challenging established business models. If you’re ignoring how tools like the iPad, mobile Internet, cloud computing and social media are changing your business then your company probably isn’t going to be around in a few years time.

While it’s best to hold off buying an iPad right now, you can’t ignore the changes it presents to business. By waiting you make sure you get the best return on your technology investment.

Funnily, we’ve been here before with mobile phones, tablet PCs and 3D entertainment so it will be interesting to see where these are in 18 months or so.

While it’s entertaining looking at the new gadgets, the interesting action is happening on the other side of the peak where real uses for technology and gizmos are found after the hype moves on to something newer and prettier. When the bored fashionistas move on from a product that’s no longer the newest and shiniest we see if something is genuinely useful or just a pointless fad.

Of all the predictions we can make for 2010 one good bet is social networking is approaching, if not past, the fashionable peak of the hype cycle. Particularly Twitter which we’ve seen pronounced dead by various writers over the break.

My favourite comment was from an weekend newspaper entertainment columnist stating the Twitter hype was driven by “Boring Old Farts Suddenly Discovering Technology” and the whole thing is now dead because an MTV host declared she was over Twitter. The Luddites are crowing that Twitter, Facebook, LinkedIn and the entire Internet thingummybob can join CB radios in history’s discount bin of overhyped technology.

Citizens Band radio is a good lesson of what happens as a product moves through the hype cycle. In the mid 1970s peak, songs were being written about it and the media was awash with spookily similar stories of how CB radio was ushering in a new era of participatory democracy. Within a couple of years, the hype had passed and those who had a use for it, such as truckies, farmers and service people, got on with their work without the kids and newbies hogging their radio channels.

Exactly that process is happening now with the various online networking tools. The naysayers will crow they were right all along about a fad for boring old farts while unknown to them entrepreneurs will be figuring out ways to make money from these tools and smart businesses will be using them to stay ahead of their slower competitors.

As well as the trendies moving on, the social media snake oil sellers who’ve traded on the social media hype over the last two years will also move on to the Next Big Thing or go back to selling multi level marketing schemes. The honest consultants and genuine experts who survive the shakeout will be able to genuinely add value and help their clients achieve more with the tools.

So a product or technology passing the peak of the hype cycle is an excellent opportunity to use it do great things for your business without the fashionistas and snake oil merchants distracting you. Don’t be afraid to experiment just because the PR machines and fashion victims have moved on.

It’s a tough life on the bleeding edge – the life of an early technology adopter features long days breathlessly waiting for the next hyped up product with short periods of extreme disappointment when the latest uber toy fails to live up to the marketing promise.

To explain how hype works in the tech sector, the consultants at Gartner invented the Hype Cycle.  The cycle explains how a typical product is released in a wave of publicity that drives it to the “peak of inflated expectations”.

Eventually the bubble pops and the widget plunges into the “trough of disillusionment” where users either abandon it or suffer the taunts of their friends and workmates.

Over time, those persistent fans find what the widget does well and it begins to crawl up the “slope of enlightenment” as the believers convince others the product really is good for something.

When enough people accept the widget as the best tool for a certain job it settles on the “plateau of productivity” where it happily sits until a better mousetrap comes along.

In reality some widgets move faster than others and not all make it over the peaks and plateaus. A look at the 2009 cycle shows some products that have taken a decade to approach the peak of inflated expectations while others have simply been abandoned by their makers or the market before they’ve completed the journey.

For business owners, most focus on the tools that have reached the plateau of acceptance. This is partly because wasting time on a new device that doesn’t do what it’s supposed to squanders an entrepreneur’s scarcest asset.

The other main reason for avoiding hyped products is they carry risk and most business owners have enough risk in their lives to satisfy even the most adventurous tech warrior.

None of that means we shouldn’t be looking at new gadgets and ideas – the world is moving fast and those who don’t adopt new technologies and concepts will be left behind. But just be a bit careful of the hype and unrealistic expectations of what the latest new thing can do for you.

The results weren’t pretty and the reasons why are a lesson for anyone in a service industry. Let’s start with the most fundamental.

Respect
I find it hard to believe I actually have to write this, but I’ve seen it too often myself. Cathy’s first computer tech treated her with contempt and didn’t listen to her problem and needs.

You might think your clients are beneath you and maybe you are right. After all, that dumb customer doesn’t know how to use a mouse, fill in a BAS, fix a cistern or carry out root canal therapy.

But that dumb customer also pays your wage, so quit the attitude and show some manners and respect.

You should also respect your competitors, a point I forgot in last week’s column. Scoffing at the previous guy’s work is bad form and good clients will show you the door if they have any sense.

Competence
Don’t take on jobs you don’t understand. This is particularly common with computer techs who have a habit of saying: “yeah, I can fix anything” when a client calls.

In Cathy’s case she had a Windows 2003 Small Business Server which superficially looks like Windows XP but is a very different beast under the bonnet. The tech was experienced enough to know better.

Funnily, the tech I referred to Cathy declined the job because he felt her requirements were outside his skills. If the first guy Cathy called had shown the same humility and competence it would have saved everybody a lot of distress.

Appearance
In an industry known for cowboys, wearing boots that would look straight out of Rawhide is a big mistake. Clients are conservative creatures and many will turn away if you are too different to their expectations.

Dress how a customer expects you to dress- an accountant wears a suit, a computer tech has the blue shirt, dark pants combo and a bricklayer wears a pair of stubbies revealing more than you care for when the brickie bends over.

When you’re in an industry where people are afraid of being ripped off, showing up in a flash car confirms their fears. Leave the Porsche at home and show up in a cheap hatchback, the things are easier to park anyway. As you’ve probably guessed, Cathy’s tech drove up in a Mercedes.

Billing
Last week I advised avoiding the “no fix-no fee” crowd. However, that’s different from standing by your work.

If you’ve screwed up, as Cathy’s tech did, then bleating: “I sweated for you” is plain silly. If the customer is unhappy, waive or discount the bill.
Sure, sometimes you end up copping the pain when an unreasonable customer complains but billing issues are a reliable early warning a client is going to be a major pain. Refund their money and get them out of your lives.

The story does end well though. Finally Cathy found someone who was polite, competent and barely raised an eyebrow when they saw the mess made by the first tech.

Cathy’s saga shows how people skills are as important as competency when you’re running a service business. You need manners and respect to match your skills.

Of course, if you don’t have any skills to start with, you might want to consider doing something else.

When a friend asked about changing IT support for her organisation last week I had to give the question some thought as switching service companies isn’t something you do rashly.

The first problem she presented was price. She was worried the quotes she’d received and the hourly rates were more than her own charge out rate.

On that front the advice is simple – get over it. Your doctor and plumber charge more than most peoples’ hourly rates and a good tech will save you a fortune in therapist and data recovery charges. So we’ll leave price to last and look at the other factors;

Confidence

Do their staff inspire confidence? The truth is support is as about trust mort than it is about competence. You have to trust the tech with your valuable data and systems.

The first step in establishing confidence is how they answer the phone. Are they polite, informed and prompt to return calls?

If they don’t care about you when you make a sales enquiry, you can be pretty sure they aren’t going to be helpful when you have a computer disaster.

So if you don’t like their phone manner, look elsewhere.

Presentation

They say looks don’t count for much. They are wrong when it comes to support.

Tidy, well dressed techs and a well presented web site indicate a business that takes itself seriously and is more likely to treat your needs as important.

Curiosity

Every business is unique in its own way and a good support company will ask lots of questions when arriving at a new site. Confidence inspiring questions include your business objectives, how you use technology and where it is currently frustrating you.

Questioning along those lines indicate people who want to know where technology fits in your business and how you can get the best return on your investment. Techs that ask those questions are worth a lot to you.

A good tech isn’t a “yes” man or woman. If your brother in law who knows something about computers has suggested something truly stupid then a trustworthy advisor will point you in the right direction rather than just agree with you. So take polite disagreement as a very good sign.

Training

It never ceases to amaze me how the tech support industry doesn’t train people. The vast majority of techs don’t get formal training and most support companies, particularly at the SME level, give their staff little preparation for new systems.

This means lower charges for you, but lousy service. Which is another reason why price should be the last of your concerns. Ask your prospective support provider what training they give their staff.

Outrageous claims

Be careful of silly claims. One of my favourites was a dodgy business a few years ago that claimed “all our technicians are qualified computer programmers” which is the same as an electrician advertising “all our staff are licensed forklift drivers”.

A similar thing applies to “no fix, no fee” claims. Avoid any company advertising they won’t charge you if they can’t figure out the problem as you’re paying a new operator to learn on your system.

Claiming to support big corporations is often the mark of a new, naïve business. Usually that indicates the owner once worked as a contractor for a company that setup that BigCorp’s desktops. Treat those claims with disdain unless it is a big support outfit with accordingly high charges.

24/7 service and two hour callouts are fair enough if you are prepared to pay for them. Be careful though when dealing with smaller support outfits as they can struggle to meet these promises.

Charging structure

Unethical support companies love the large billing unit. So avoid companies that charge in 30 or 60 minute blocks as these encourage techs to pad out basic jobs. A fair unit is ten or fifteen minute periods

The best plan for a business is a regular support contract which includes a basic level of services per month. These often include a base number of technician’s hours, either onsite or remotely. Review the hours regularly as you can overpay for time you don’t need.

Price

Finally we get to where most clients fall down. Good support companies that train, support and reward good staff have high overheads and the corner cutters will always be substantially cheaper.

You should be prepared for rates in excess of $150 an hour, with discounts for bulk purchase and fixed fee support contracts, the longer you are prepared to enter into a contract for the better the discount.

By all means shop around but don’t fixate on price, the company that charges $180 an hour to provide a qualified, experienced tech is far better value than outfit charging $60 an hour to provide a part time student working for beer money.

Don’t be surprised or offended if the really good support companies tell you they can’t help. Many choose businesses they can help and decline those who they don’t believe are a right fit for their skills. If that happens, ask them if they know of someone who is a better fit for you.

The relationship between technology and business is often complex, but its not one most businesses can neglect. Make sure you’re investing the right people and expertise in your systems.

We won’t miss Vista, it was slow, clunky and irritating to use. Like Microsoft’s previous OS disaster, Windows ME, it was a hybrid of new and old technologies that managed to satisfy few users.

Vista’s poor reputation effectively broke the upgrade cycle where businesses and consumers replace their computers roughly every five years. Rather than taking their chances with Vista, PC owners decided to stick with their ageing XP boxes.

So Windows 7 is being held out as the saviour of the computer industry as Microsoft’s customers are expected to rush into long overdue upgrades. Some commentators predict the new operating system will reinvigorate PC sales that have been battered worldwide by the Global Financial Crisis.

The reality is probably a bit more complex, there’s no doubt the combination of the global downturn and customers putting off computer purchases hurt the industry, but to expect a surge of sales may be optimistic.

Most computer users are a cynical bunch who have heard all the hype before and won’t be rushing out to buy anything just because some bloke on the web tells them it’s the greatest thing since Wordperfect 5.1. The days of crowds waiting to buy the latest operating system are long gone, at least in the PC world.

While it isn’t worthwhile queuing up on a cold morning for Windows 7, the new program is a vast improvement on Vista. In a hopelessly unscientific experiment, I installed a complimentary copy of Window 7 Ultimate supplied by Microsoft on my wife’s cranky, Vista supplied laptop.

The results were good. Boot up time was reduced by 34% to 55 seconds while Internet Explorer loaded twice as fast and Word 2003 documents opened a whopping 300% faster.

For the record, the machine isn’t exactly a powerhouse being an Acer Extensa 5220 Celeron 2GHz CPU with 512Mb of RAM ­– exactly the sort of machine that should never have been supplied with Windows Vista in the first place, which was part of Vista’s problems.

So my experience with Windows Seven has been so far favourable. If you have been through pain with Vista, it may be worth upgrading although you will probably find driver and software problems won’t be solved by the new program.

For XP systems it almost certainly isn’t worth the upgrade to Seven as the process requires a fresh install, substantially increasing the cost, time and risk involved in making the move.

Overall, XP machines are best replaced outright as many are well past their retirement date as owners have held off being forced into buying Vista machines.

If upgrading or buying Windows 7 systems is on the horizon then you should start preparing now. Get a few Windows Seven machines and test them in your office; monitor how they go with your critical line of business systems, check they connect properly to your network and start getting familiar with the quirks and differences in the new system.

While Windows 7 isn’t flawless, Microsoft have learned from the mistakes they made from Vista, it is faster and so far seems less irritating and more stable. If you are struggling with Vista, or your Windows XP systems are on their last legs, the upgrade will probably be worthwhile.

That’s been the fate of a million Sidekick mobile phone owners in the United States over the last two weeks when the servers storing the Sidekick data went down.

The Sidekick is an unusual mobile phone that saves all its data “on the cloud”, a big group of servers run by the device’s designer, Danger, who were bought out by Microsoft in early 2008. Unlike other phones and PDAs, the Sidekick doesn’t synch with your own computer and stored data may get wiped if it can’t find the cloud servers.

This is exactly what happened a few weeks ago when the Sidekick cloud stopped. Owners of the Sidekick, a phone that’s never been sold in Australia, have been through a harrowing fortnight hoping their data will be recovered which Microsoft now believe can be done.

Sidekick’s outage is a major embarrassment for Microsoft who are pitching their Azure cloud product as alternative to other cloud services provided by competitors like Amazon and Google and the failure certainly deserves to be one of the technology disasters of the decade.

The question now is how badly this outage will affect cloud and software as a service providers. These service rely on customers trusting data and critical business applications to a third party and the Sidekick saga doesn’t inspire confidence.

It would be a shame if this is the case, as cloud services offer a lot of advantages to smaller businesses. In many ways they offer the same advantages big business have had through outsourcing services at a fraction of the price and complexity.

We need to remember that all technology breaks. People press the wrong buttons, unexpected software bugs appear and sometimes things just break or go wrong. Every business needs a contingency plan if things stop working.

While a data backup regime is a critical part of a contingency plan, you still need to consider other aspects such what happens if the power grid fails and leaves your without electricity for three days, if bushfires and floods stop workers getting to the office, or what will happen if you forget to pay your phone bill and suddenly you have no Internet access for a week.

Technology is complex and we have trust a lot of things are reliable and sometimes some of our partners aren’t as trustworthy as we’d like.

So have fall back systems just in case your trust in technology, partners and vendors is misplaced and test them regularly.

The problem has become so great, a consortium of vendors have set up the Conficker Working Group to deal with the malware’s spread, and Microsoft are offering a $250,000 reward for the identity of the writer.

It’s not a problem that should be understated – the worm’s main use appears to be as a controller of botnets, networks of remote controlled computers used to launch attacks on other systems or to hide the tracks of scammers and password thieves.

Given the risks and embarrassment of being infected, avoiding this worm and others like it should be a priority for your business. First of all your Windows computers should have the latest updates as Conficker relies on some old security bugs that Microsoft patched last October.

Naturally, you should be running an up to date anti-virus. Most widely used AV programs will do the job, including Open Source detectors like Clam AV and freeware programs.

Note though that the licences for freeware programs like AVG and Avast! are specifically for home use only. If you are running those on your office system, respect the developer’s right to make a living and buy a commercial licence, they are actually cheaper and more reliable than many of the better known brand names.

Finally, make sure your users log on in Limited User mode. The reason why Windows computers are more prone to viruses than their Mac and Linux cousins is because most users run their Microsoft systems as the powerful Administrator mode which is the equivalent of leaving your car doors unlocked all night.

I’ve some instructions on setting up Limited User Profiles for Windows XP systems on the PC Rescue website. If you have an office with a Windows 2003 or 2008 server, your IT department or consultant will be able to do this through the network, which is a lot more secure way of doing things.

Be warned that some programs won’t work unless they run in Administrator mode. If you find this is a problem then you should consider replacing that software as the vendor has shown they are either incompetent or are prepared to put their customers at risk to save a few dollars.

Either way, you don’t need suppliers that have no respect for their customers.

Your computers are too important to your business and shouldn’t be exposed to these sorts of embarrassing and expensive risks. Get your IT people to make sure the office systems are locked down properly.

Internet tools like social networks and the web itself are forcing us to be more honest, open and ethical.

This occurred to me during the annual Cannes Lions International Advertising Festival a few weeks ago, where I was fortunate to go along and see how the advertising sector is dealing with challenges to their clients’ traditional marketing channels while a global financial downturn hits business.

Microsoft CEO Steve Ballmer put the worst case scenario of the world economy resetting to lower debt levels with marketing spend declining faster than GDP, as newspapers and magazines vanish at the same time consumers tighten belts.

Perhaps it was to be expected that Google CEO Eric Schmidt had the opposite view that Americans were too wedded to their credit cards to do anything else but spend.

The marketing bosses of Proctor & Gamble, Kraft and McDonalds had a very different outlook to either of the CEOs. They saw online advertising growing, while print and broadcast spending stays static – the most quoted statistic was the net occupies 20% of consumer’s time while only 7% of budgets are allocated to internet marketing.

A splash of cold water was from Kofi Annan and Bob Geldof who launched the “tck tck tck”, Time for Climate Justice campaign to get real results from the UN Copenhagen Convention in December. Their speeches were compelling and a reminder that some things are bigger than how much you spend online.

Back in the online world, Twitter co-founder Biz Stone gave an entertaining talk on how Twitter came about and some of the possibilities for making money from the service (charging for richer data) but the best social media talk was from Kevin Eyres, LinkedIn’s Managing Director for Europe.

Kevin’s key point is a business’s social media profile is just as much from what employees say on Twitter, Facebook and MySpace, as it is of customer’s comments and the efforts of the marketing team.

This is spot on and shows just how broad the risks and opportunities are for managers and entrepreneurs.

Modern management has to be honest and consistent – the days of hollow mission statements and empty commitments to customer service and equal opportunity are over.

If you don’t hold by your principles then your customers, staff and suppliers will rat you out to the wider world. If you do hold by them you’ll gain respect and true followers.

The final thing from the Cannes Festival was just how innovative and creative the world advertising industry is. While the prize winners were impressive there were many clever entries that changed the way you’ll look at marketing.

Luckily, most of them are online at the Cannes Lions website, so have a look at the speakers and get some inspiration from the entrants. Don’t copy them though as you’ll probably be dobbed in on Twitter.

As a consequence, they missed the opportunities to get into the new markets and most of them died.

This is true today as new technology and changed economic circumstances batter old, established industries.

Newspapers for example are not in the newspaper business, they are in the news business and fixating on paper as the medium to deliver that news leaves them struggling to adapt in a world where the main source of news is increasingly the Internet.

We see a similar thing with telephone companies wedded to their old copper networks or car manufacturers building fuel guzzling road yachts.

Recent comments by Rupert Murdoch about charging for content along with Associated Press’ attacks on Google show how the traditional channels are struggling.

This trend is bigger than news or media organisations, the developing communication channels using mediums  like Facebook and Twitter are going to challenge many organisations and change the way business is done.

Business is far more open and transparent, good and bad reviews of your organisation travels further and faster than before.

Your employees, contractors and customers are communicating in channels outside your control.

That’s just in the communication field. The changed economic environment means even more challenges to established businesses.

So the question is what exactly is your business? Which of your customers’ needs does your business fulfil?