The saddest sign you’ll ever see

When a landlord takes possession of a business, there’s a lot of pain behind the signs.

The sign on an abandoned business announcing “Landlord taken possession” usually hides a pile of pain and distress.

It’s not cheap or easy for a landlord to take possession of a business premises and for most to do so it’s usually the end of long period of unpaid bills and broken promises.

Behind that sign is usually months, if not years, of stress and despair as a business owner has held onto a failing enterprise, bluffing their landlord, their suppliers, their staff, their own families and often themselves.

Almost every one of those signs has a story of failed relationships, destroyed friendships and ruined marriages.

Often they didn’t understand the cost of doing business and in many cases because they hadn’t consulted a bookkeeper or accountant earlier they didn’t understand their venture was always loss making despite what appeared to be a healthy cashflow.

When the truth about the businesses becomes obvious, life for the honest owner of a failing enterprise tries to bluff themselves and those around them that things will be okay, that the dream is still alive.

This is what worries me about many of the businesses that participate in group buying deals, they are desperate to keep their business afloat and believe the cashflow or publicity will save their failing venture. Even worse, many don’t understand how that “50% off” deal will affect their ability to pay staff and the landlord.

Even where the failed proprietor has been one the “two percenters” – the 2% of our society that runs their affairs with no regard for the pain and suffering of those they hurt – many people, particularly the smaller suppliers and low paid workers, have taken a hit as bills went unpaid and promises were not kept.

Most business owners though believe in their idea or vision and work long and hard in an attempt to achieve it. The majority of those who end up with the landlord taking possession are often those who ignored the signs and believed things would come good next season, next month or next week.

I’m always saddened when I see a “landlord taken possession” sign like the one near me in the window of what was an Italian restaurant until recently. What’s the saddest business sign you see?

ABC Nightlife: The business web revolution

Business is changing as customers move online

The March Nightlife technology segment looks at how the web is changing business as consumers go online and cheap, easy to use tools make it easier than ever to set up an effective Internet presence.

The podcast of the program is available for download or listening to from the Nightlife website. Some of the programs and online services we refer to on the program are listed below.

Last year’s Sensis e-business report found over two thirds of Australians had made a purchase online. Increasingly, customers are using the web to find shops and services rather than the phone directory or local classified adverts that local businesses have relied upon in the past.

At present only half of all businesses have a website despite customers using the net as their main way of researching purchases and finding local merchants. This is partly because of the cost, time and complexity involved in setting up a web presence.

Today it’s possible to set up a free website in half an hour and be listed on the main local search engines within an hour.  On the March ABC Nightlife Tony and Paul looked at how to get online and use these tools.

Aspects we discussed include;

  • Can you really build a web page for free
  • What’s replacing Yellow Pages
  • How do businesses list on these services
  • Are they a substitute for a web page
  • Do consumers actually use local search
  • How to remove Norton 360
  • Protecting yourself online
  • Dust build up in systems
  • The next version of Windows

Our next spot is on April 28. Visit the events page or subscribe to our newsletter to keep up to date with other ABC segments we might be doing.

Useful Links

Some of the software and webpages we discussed on the program included.

Getting Australian Business Online
Adding your website to Google Listings
Listing your business with local search

Norton 360º Removal Tool

Windows Scripting Host (for Windows XP)
Malwarebytes virus and spyware removal tool

If you have any suggestions for our April 24 show, please contact us. We love to hear your ideas and comments.

If you are in Sydney, our Web for Beginners seminar still has spaces available. In three hours, you’ll have your business online with an effective Internet presence.

Running your own coupon campaign

Do-it-yourself coupons may be the better tool for your business

The group buying goldrush continues as now even Facebook are considering starting up their own service, but do businesses need to be using these platforms at all?

Behind the group buying mania is the idea retailers can use these services’ large mailing lists to promote their business while clearing excess stock to bargain conscious shoppers.

Those reasons are valid, but for the privilege of accessing their databases the group selling services charge substantial merchant commissions, representing a 20 to 50% cut from the seller’s income. If the discount is really deep, say 80%, then the site often takes the remainder of the sale leaving the retailer giving the product away.

For access to a mailing list, that’s a pretty big outlay to the merchant who may be operating on thin margins to start with. The cost can even be greater given most of the group buying subscribers are shopping on price and converting them into loyal customers can be a struggle.

It is possible to run your own coupon campaign. Both Google Places and News Limited’s True Local have features in their free local services where you can set up coupon campaigns and publicise offers.

The advantage with these is you capture shoppers in your neighbourhood, the coupon lasts longer than one mail shot and doesn’t require a fat discount to grab the attention of shoppers already jaded by 60% off waxing services and half price exercise classes.

Running your own coupon campaign puts you in control, saves the often fat commissions and when done cleverly can break you out of the damaging deep discounting mentality the group buying sites promote.

You can also put links to these offers on your website, Facebook page and other social media channels, further building those channels and giving you more opportunities to convert one off buyers into loyal customers.

There’s also the advantage that the search engines, particularly Google, love these offers – it’s part of their US roots where clipping coupons is a fundamental part of retail marketing.

You don’t even need to come up with a new offer. If you currently run ‘cheap Tuesdays’, happy hour or other promotions, you can build a coupon campaign around them.

All of this is another reason why you should be taking the local search tools seriously even if you do already have a website.

Group buying sites do have benefits for a retailer such as exposure to a wider, new audience and it’s worth considering them in the right circumstances. Trying a do it yourself local coupon campaign may turn out to be the better option for most businesses.

Paul will be holding a masterclass that looks at local search, adding coupons and how to get a small business fully online in two hours on March 24 at Mosman, NSW. Spaces are still available.

Group buying sites explained

Are big Internet discounts right for you or your business?

Fancy half price seafood dinners, deeply discounted electrical goods or 80% off personal fitness training? Thousands of people who’ve signed up for group buying websites certainly do and hundreds of businesses are prepared to make big discounts to attract those customers.

What are these services? Are they worthwhile and how do the businesses make money from them? Should customers be wary of advertised big savings and are merchants cutting their throats when they enter the world of deep discounting?

What are group buying websites?

The idea behind group buying sites is that merchants will offer cheap deals to take advantage of bulk sales, clear inventory or as loss leaders to attract new business. The products offered can be anything from a cheap haircut through to discounted whitegoods or a cheap meal.

Customers subscribe to the group buying websites and receive a daily email detailing the deals in their areas. If they like an offer, they can choose to be part of it and if it goes ahead, their credit will be debited and they’ll receive a voucher for the deal.

The group buying websites usually approach businesses to take part. For the privilege of having their businesses featured, the website takes between 20 and 100% of the offer price as commission.

What are the consumer benefits?

Naturally the main attraction for consumers are the cheap deals on offer. Some businesses are offering 80% off their list prices for products, so there can be substantial savings to be made.

There’s also the opportunity to try out products or outlets you wouldn’t normally try for instance you might not usually be interested in Zumba classes, canoe hire or replacing your TV at normal prices but an 50% discount could tweak your attention.

Are there risks for the consumer?

There’s no such thing as a free lunch so there are a number of risks when using a group buying site.

Impulse buying is probably the biggest risk, if you’re a sucker for a deal then these sites will love you. It’s an opportunity to sign up for a lot of things you don’t really need, probably will never have used and maybe can’t even afford, but fact you saved 80% makes you feel good.

There’s also the risk you’re not really getting the full discount. A lot of canny merchants inflate the list price to make the amount off look greater. Many also reduce the size or quality of the discounted product to recover their margins.

A big risk is that you may never get to use your voucher. Either you’ll forget about the voucher you received or the merchant is so overwhelmed by the offer’s response that they can never get around to catering for all their people who took them up.

Finally there’s the spam factor. Many merchants see a group buying offer as an opportunity to build their mailing lists, so you may find yourself being spammed for fitness classes and restaurant offers for a long time after you take up a deal.

Business Benefits

These sites wouldn’t have taken off if there weren’t businesses to advertise on them and hundreds of merchants have taken up the opportunity. So there are clear benefits for the outlets that use these services.

The most obvious one is they get to promote their businesses. All of these sites claim to have subscribers numbering in the hundreds of thousands, so it’s an opportunity to get your products in front of a large audience.

Clearing excess capacity has been one of the main drivers for these sites in the United States where many businesses have found themselves with too much inventory or staff sitting around. These sites are a great way of clearing inventory or smoothing demand cycles.

Business downsides

The first problem is that excess stock. A business can’t afford to be carrying stock that requires big discounts to clear, if these offers become a regular feature then your business is in trouble.

Even if your business isn’t in trouble, these offers risk devaluing your brand. As the major retailers have found, offering frequent discounts trains your customers to expect lower prices.

Offering these bargains may alienate existing clients. Those customers who are prepared to pay full price aren’t only going to be irritated to find they could have got your products cheaper, but may also be unhappy with your business being overwhelmed by cheaper, price conscious clients.

Those price sensitive shoppers aren’t really your customers either; they are loyal to the buying platform and cheap deals, so if your competitors have an offer later on another platform, those customers will go there. There’s a lot of work to be done converting these bargain hunters into repeat clients.

One of the most misunderstood parts of group buying sites is the commission structure, most of the services charge a commission of between 20 and 50% – with some going up to 100% – on the advertised price, so that 50% discount to the customer is actually 60 to 75% off the merchant’s selling price. This can be a massive hit to a business’ profit.

Is group buying for you?

For businesses group buying sites can be a good idea if they are used as a part of a well thought out marketing strategy or to clear occasional excess stock. But they shouldn’t be seen as a quick way to attract new customers.

Customers are the big winners from group buying sites, as it’s the opportunity to pick up some great deals. But users have to use a bit of judgement instead of just jumping for the best looking deals.

It’s an old saying, but if anything looks to be too good to be true then it probably is. In the Internet age, that saying is probably truer than ever. Group buying sites can be good for both businesses and customers, but watch the wallet.

Is Getting Australian Business Online right for your business?

the free options for a business website

The Getting Australian Business Online initiative is a great move from Google and MYOB to make it easier for the 50% of businesses who don’t currently have a website to get an Internet presence.

MYOB’s Chief Executive Tim Reed identifies the three barriers to small business getting online as being fear, time and cost.

All three barriers are addressed by this service; it’s free, simple and takes around half an hour to configure.

The results are fairly basic, a business ends up with a template that shows their location, contact details, some links and a basic description of the enterprise. It won’t win awards, but it is a basic web presence.

While GABO is a good idea, and strongly recommended for smaller businesses, it isn’t the right solution for all as it doesn’t include an email address, has few customisation features and most of the local search features have to be configured separately.

There are other cheap options available, registering a domain name for around $20 year and then using Google’s free Blogger platform is a straightforward alternative and there are other options using hosted WordPress, Weebly and Squarespace.

Given you get a free domain out Getting Australian Business Online, it’s worthwhile signing up if your business doesn’t have a website, however keep in mind there are cost effective alternatives that offer more flexibility and that all important email address.

Our workshop, Web for Beginners, takes business owners and managers through the process of setting up a Getting Australian Business Online account as well as signing up with the key local search services. Places are still available for our March 24 workshop.

The web’s cheeky scammers

If you want to see some of the web’s more cuddly sharks, register an Internet domain

Yesterday I received a note claiming to be a renewal letter for an Internet domain, the part of a web address that appears after the ‘www’ or behind the “@” in emails. The kind offer was a mere four times the price that I’ll be charged by my current domain registrar when the time to renew the address arrives.

This little scam, which almost every Internet domain owner has encounterd, is one of the quaint but profitable rorts that make the online world so interesting. Just as the web has opened up massive opportunities to new businesses, it’s also given birth to a new generation of cyber-swindlers and con men.

Part of the problem is the cult of free we’ve allowed to develop on the Internet, by giving away goods we’ve trained our customers not to pay for stuff they find on the web. Where we can get customers to hand over their credit cards, many businesses find thin margins as shoppers are buying on price.

The domain registration business is good example, it’s a tough game being a domain registrar, the margins are tight and, being a transactional business, they offer a fairly generic service. Many tend to offer add ons, such as web hosting and design, to pad out the margins and for many registrars their domain registration service is a loss leader for more profitable products.

As a consequence for domain holders it’s worthwhile shopping around as the prices vary dramatically, particularly if you choose not to take up the registrar’s offer to host your site or desigy your pages.

Sadly you don’t always get what you pay for and before changing registrars I always make quality check on the Whirlpool website where I look in their Web Hosting forum to see what people have to say about the registrar’s service.

One thing that often pops up is why the heck are local registrars so expensive? With the bigger Australian registrars a .com domain costs between $20 and $75 a year while the US providers are delivering the same for almost half the price. The .com.au domains are nearly double the price for the .com equivalent.

I can understand it the .com.au being a bit more expensive given the charges imposed by AuDA, the Australian Domain Authority, but the discrepancy seems a bit on the high side.

Every business should have their own Internet domain registered, partly to improve website search engine ranking but more importantly to protect their trading name, so all of this is relevant to almost every proprietor or entrepreneur.

When you do register a domain, note who you’ve registered with and when the domain expires as even the legit registrars have a habit of invoicing very early for renewals.

The domain registration business can be likened to a shark tank, fortunately for the business owners who are forced to swim in it, the sharks are the relatively harmless gummy types compared to some of the others like hackers and fraudsters prowling the net.

With a bit of knowledge and attitude you can keep these predators from nibbling your toes.

12 rules for using the web

Twelve tips to stay out of trouble on the Internet

I’m currently writing a book, provisionally titled Seven Steps to Online Success. One of the chapters looks at using social media for business and I included twelve rules to keep businesses out of online purgatory.

On reviewing that chapter, the rules really apply to the web in general. So, with a little bit of editing, here are the 12 rules for using the web;

1. Show respect to everyone. Even people you find disturbing, you’ll quickly learn the Internet is mankind’s gift to the disturbed, deluded and downright deranged.
2. Listen. Once you’ve filtered out the crazies, you’ll find the collective intelligence of the web can be quite powerful.
3. Converse. The big currency in social media is conversation, by joining in with constructive comments you enhance your reputation.
4. Be constructive. Add value to the conversation
5. Positivity. The web rewards the positive more than the negative, by all means post critical comments, but it’s best to for your posts to be more positive than negative.
6. Be honest. Social media has a horrible way of catching people out, so don’t tell porkies.
7. Associate with the smart kids. You’re judged by the company you keep, just like in the school ground.
8. Don’t constantly plug your services. You’ll be branded a spammer and shunned.
9. Social media is not a numbers game. Don’t obsess about the number of Twitter followers or Facebook friends. Quality beats quantity every time.
10. Never post when drunk or emotional. You will regret it.
11. Step away. If you find a social media channel is taking up too much of your time or passion, take a break.
12. Learn. Use what you’ve learned.

Seven Steps to Online Success is due out in Australian bookstores in June. In the meantime, my new business Netsmarts is running workshops helping businesses use Google and News Limited’s free local search services to grow their business.

The Web for Free workshop

How to get your business working harder on the web using free tools

Your customers are going online. Can they find you?

Our two hour hands on workshop makes sure you can be found on the web

Our customers are going online. Today’s consumers – young and old – are turning to the web when looking for local businesses and services that were once listed in the phone directory or local newspaper classifieds.

Your business needs to be there for them to find you when they go looking on their computers or mobile phones. The great thing is most of these listing services are free.

Why Local Search?
The websites, search engines, iPhone applications and even GPS systems that consumers are using to find tradesmen, services, restaurants and cafes in their neighbourhoods all rely on a small number of directories run by companies like Google and News Limited to provide details of local businesses.

I already have a website
Even if you have website, an effective entry on these directories is essential – the local plumber, baker, lawn mowing service or hairdresser is finding their local search listings is vital to capturing customers in their neighbourhoods. Local listings improve the performance of your site and help it go to the top of searches in your suburb or town.

What will I learn?
During the workshop participants will develop a cost effective online local search presence along with gaining insights on some strategies to be the most popular search result for their neighbourhood.

At the end of the Web for Free workshop you’ll have full, effective listings in the Google Places, True Local and Facebook Pages services. This ensures your business is being found when customers go looking for you on the web.

Participants cover;

• how the local services work
• the relevant local directories for Australian markets
• how to list in the local services
• maximising local coverage
• using basic search optimisation strategies
• optimising product descriptions
• designing and creating a free web site
• leveraging special offers and sales
• adapting social media to local search

Who should attend?
The Web for Free is designed for entrepreneurs, business owners managers and staff of new or established businesses wanting to understand local search tools and how to use free web services.

Duration and location
Our first two hour workshop will be held at the Mosman Professional Centre on March 17 from 10.30am. Seats are limited to 15 so space is restricted. You will need to bring your own laptop computer along.

Book now
Seats at the workshop are $300 each. With restricted space you’ll have to book now to avoid disappointment.


The rise of the connected consumer

Forget the technology, it’s all about customer service.

Last week in Sydney the Federal government’s Online Retail Forum, set up after the first round of big-retailer complaints about Internet shopping, was held to discuss the threats and opportunities that lie in the connected economy.

The event’s location and timing, being held at the old Sydney Post Office the day after the Angus & Robertson book chain went into administration, was somewhat symbolic of the changes facing the retail industry.

Australia Post itself is a good example of a business dealing with change, their traditional mail business is shrinking while the move to online commerce is driving and growing their parcels business. As traditional post offices selling stamps become less important, new opportunities open in the logistics of getting physical goods to Internet shoppers.

The old post office itself is an example of that, as technology changed how mail is sorted and delivered the need for a big downtown building disappeared and today the mail service occupies a tiny corner of the massive building which is now a hotel and office complex.

How post offices changed is a big lesson for commercial landlords, and our super funds that invest in them. COSBOA’s Peter Strong pointed out on the opening panel how the business model of ever increasing rents forcing out smaller retailers and replacing them with cookie cutter national chains and franchises is one that is already struggling to cater for the online consumer.

Customer service is the opportunity missed by the big ‘bricks and mortar’ retailers, a physical store has the advantage of being able to deliver a personalised, friendly experience yet what we find when we visit a big department store or electronics ‘category killer’ superstore is service that often leaves much to be desired.

The participants of the online retail forum’s panels covered how the online retail industry is filling the customer service void; Mike Knapp, the co-founder of Sdyney’s Shoes of Prey, explained how their consumer friendly return policies encourage sales while logistics companies like DHL, Temando and Australia Post described how tracking the delivery of Internet purchases was essential for customer confidence.

Most importantly, much of the morning emphasised that e-commerce was only a small part of what the Internet has to offer the retail industry. The web has become a monitoring tool for both buyers and sellers as well as improving the supply chain and radically changing the marketing industry.

Google’s Jason Pellegrino explained how many of the US electronics chain Best Buy stores now keeps floor stock for consumers to feel and touch but then places orders through the net for delivery to the buyer’s premises. Not keeping anything more than display stock dramatically improved the efficiency of Best Buy’s stores.

Interestingly Dick Smith Electronics employs the opposite model, with their “click and collect” service customers can order online and nominate the store they want to pick up the product which gives the retailer an opportunity to cross or up sell.

Both models illustrate how retail can adapt and take advantage of shoppers using the Internet and with some creative thinking can open up new opportunities which enhance their traditional sales models.

The message from all the industry panellists at the retail forum was consistent; the net is giving power back to the consumer who is using it. For retailers to compete, they have to be dirt cheap or offer excellent customer service.

What the event showed is the customer is more important than the technology – the point of going online is about improving the offer to customers be it by cheaper prices, faster delivery or better service. If the technology happens to improve our margins then that’s a pleasant benefit as well.

Customer service is something our bigger corporations like the retail giants, banks and telcos have forgotten, it’s now turning around to bite them and that’s probably the biggest opportunity for the rest of us – to adapt technology to our business in ways that deliver a better product.

It’s more than just having a website and online shopping cart, these changes are affecting almost every business. It’s important we all think about how our ventures are going to adapt to markets where our customers have more power than ever.

The tipping point

An important change has happened on the net which is changing the way we do business

Late last year the Internet quietly entered a new stage in its development as smart phone sales surpassed those of personal computers. This represents a fundamental shift on how society uses the web and how it will affect markets and our businesses.

The mobile workforce

Our staff and suppliers are going to be increasingly mobile and available. Logistic programs similar to Red Laser – which we discussed last year – coupled with recognition systems, virtual reality and always on wireless broadband are going to enable business, whether it’s a multinational trucking company or a local plumber, to have shorter supply chains and faster response times than ever before.

Going on the cloud

For ourselves it means increasingly we are going to be using mobile platforms like iPads and smartphones. It means we’re going into the cloud as the cost of maintaining the back end of these services are too prohibitive for many businesses.

As we discussed a few weeks ago there are a number of risks in the cloud that we need to understand and be aware of, but as the commenters to the Smart Company column pointed out, we can’t ignore the cloud.

The pervasive customers

Our customers are using the cloud on their smartphones as well, A presentation by silicon valley stock analyst Mary Meeker late last week emphasised the process that’s underway. Mary’s colleague, John Doerr calls this evolution of the mobile Internet SoLoMo – Social, Local, Mobile. People are using their mobile phones to quiz social networks to find local businesses.

This is going to challenge all businesses, particularly those who’ve resisted going onto the web until now, as we have to make sure our presence on the web is more than just a pretty web site with a token Facebook Page and Twitter account

Fancy a bowl of noodles, need your lawn mowed or toilet repaired? Increasingly we’re going to be using the mobile web and making note of what our friends say about these services. Even those business like the trades that have got away without going online are going to find it increasingly necessary to sign up to services like Google Places.

Change has arrived

The time for procrastinating about how our businesses are changing is over; the changes are happening now. Our customers are looking for us online and our competitors are reaping benefits from the various mobile and cloud technologies.

You need to be across these changes, just as telephones, cars and computers revolutionized most of our industries through the 20th Century, the mobile web is the first big change of the 21st. If you want your business to be part of the next decade, you have to start thinking about how you can use these tools.

The local business revolution

ABC 1233s Carol Duncan discusses how local businesses should use the net

While the big retailers are moaning about lost offshore sales, local business is changing as customers go online and expect their local suppliers to do the same.

The great thing is many of the local tools are free and easy to use. There’s no reason for any business not to be online and local right now.

Join Paul Wallbank and Carol Duncan to discuss how local businesses can grab the opportunities in the connected economy on ABC 1233 Newcastle and Upper Hunter.

If you’d like more information on how your business can use the local business directories, we describe them in our Why Online Listings Are An Essential Business Tool post and we can help you through our new Netsmarts service.

You can listen in on air or stream the broadcast online. We love your comments and questions which you can call in on 1300 233 222.

If you’re on Twitter you can also follow Carol at @carolduncan or Paul at @paulwallbank.

Losing faith in the cloud

There are risks when trusting the net, we need to understand them.

Over the last few years, I’ve been a great believer in the benefits of cloud computing but events of the last month have shaken my faith in trusting data to another organisation’s servers.

The most immediate challenge was a trivial, but irritating, crash last weekend when I lost my monthly client newsletter just before sending. The really frustrating thing was there was over a month’s worth of relevant, interesting web links for clients along with six hours lost work in writing the vanished work.

While trivial, my little disappointment illustrates the fundamental problem we have with cloud computing – we can’t trust the businesses and governments  who control the net.

Simply put, the Internet itself isn’t as trustworthy as we’d like.

Egypt’s closing Internet links, Wikileaks being hounded off the net and the Queensland floods all illustrate this on a far bigger and more important level, we cannot take the cloud or Internet access for granted and when service is interrupted the failure is total.

Natural disasters like the Queensland floods or the 2009 Victorian bushfires give rise to the trite response that “the Internet is designed to survive a nuclear war.” This is true, but view overlooks the Internet maintains service by finding a detour around the damaged areas

Which is problematice if you find yourself in a distressed area and the Internet has routed itself around you and your modem, which is something we should keep in mind everytime someone suggests using social media tools for disaster management.

It doesn’t take natural disaster for you to lose access to your data. The hounding of Wikileaks off the commercial, US operated parts of the web shows how much of the Internet is controlled by corporations enforcing spurious terms and conditions.

You don’t have to be Julian Assange for this to happen to you, last year a Sydney Jeweller had her Facebook page shut down because her doll showed too much nipple while last week an English healthcare assistant had her account suspended because she had the same name as someone famous.

Like Julian, both had their access frozen without notice and struggled to receive any sensible answer from their service provider. Unlike Julian, subsequent media embarrassment finally forced Facebook not only to acknowledge their customers’ concerns but also reinstated the services.

Far more worrying are government controls. Until last month, most of us in Western democracies – this writer included – conveniently ignored how quickly telecommunications companies and Internet Service Providers will accede to the demands of governments.

Both the Egyptian shutdown and Wikileaks reminded us how wrong we were. Governments of all persuasions can and will shut down Internet services to suit their domestic political agendas.

Here in Australia there are proposals to filter the Internet or shut down accounts to protect us from what Canberra and various lobby groups deem to be copyright infringement, pornographic material or video games unsuitable for 14 year olds to play.

Even without the more extreme proposals being introduced we’ve seen the websites of Queensland dentists and political satire sites being blocked or shut down on these grounds. In both  cases the actions were taken without the site owner’s knowledge.

As our businesses and society in general becomes more dependent upon the Internet, we need to keep in mind there are risks which need to be managed. Cloud computing itself is a great business tool but we need to understand the risks and costs of depending upon other people.

If you’re looking for cloud services, you’ll need a product that offers a backup to your systems. Business is built on trust and right now there isn’t a lot of it around in the online world.