The Emergency Budget

With the UK still in a dire financial situation, a new emergency budget has been drafted in a view to help repair some of the damage done. This budget contains a number of key factors, all of which aim to address the problems currently facing the UK, with a number of these remedies having a direct effect on those living in Great Britain today.

Budget BriefcaseYet one factor stands above the rest in terms of its impact. Its a fairly complex situation, as it benefits the country, whilst also having the potential to cripple the spending power of UK residents. This is of course in reference to the controversial decision to raise VAT from 17.5% to 20%, after countless promises that VAT would not rise. The UK has had a yoyo-like VAT system of recent years, dropping from 17.5% to 15% in response to the recession, before rising back up to 17.5%.

It has been expected for some time now that public spending will be slashed in response to years of borrowing and overspending. However, a VAT increase has not gone down well with the public, particularly with business owners. This is fuelled in no small part by the divided opinion between supporters of the coalition’s two component parties. The Liberal Democrats promised that a VAT increase would not happen; but now support the Conservatives decision to raise it to 20%. Of course, a public spending cut will be felt along side this VAT increase, as well as a number of other measures.

Firstly it should be noted that on the whole, this is a positive step forwards for the UK in terms of paying off its national debt. The 2.5% rise will see an extra £13 billion per year in added funds. As would be the case with a private debt held by an individual, it is important to cut costs and boost income to pay it off in due course. Any business owner will be very familiar with this basic principal.

So what does this mean for businesses in the UK? Well most obviously, prices will rise to cushion the VAT increase. Essentially the government are looking to gain more from each transaction made by individuals in the UK. This is all well and good. However rising prices can cause spending rates to drop across the board. In terms of basic and fundamental economics, price rises would only come into play in a free market economy when controlling (or responding to) demand. When this is altered for the sake of an emergency budget, it can sway figures from both ends out of alignment. Business spending will also be effected by the increase in pricing, but of course with VAT offset for business expenses it will nullify itself in the long run. If businesses decide to absorb the added VAT cost themselves, they will simply be absorbing part of the UK debt, which is a counterproductive move as a business owner.

The consensus is that a VAT rise will hit the UK hard, at a time when the public really dont need it. But the fact of the matter is that what we want to be happening isnt always what is best for us in the long run. If the UK continues as it is, it may well fall into a deep depression and end up in a worse situation than ever thought possible. The new budget will help dig the country out of the mess it is in now, but requires our help as citizens to help in that process. It is a fair method, even if it is one that the people are not all too happy with at this time.

IPv4 Address Exhaustion

IPv4 is the current standard for internet protocol addressing across the world, and has become synonymous with internet users all over the globe. The familiar ‘xxx.xxx.xxx.xxx’ format is well known to anyone with a slight understanding of how the internet works. Domain names and domain name servers happily supply locations on the web with a handy textual reference, which means visiting a website does not require the input of a dot-decimal number (e.g. 192.168.10.10). Instead, a web address such as http://www.bbc.co.uk/ can be used, which itself finds the numerical IP address meaning the user doesn’t have to. This is all a good thing of course, and until now has worked very well.

IPv4The problem which has been expected for some time now is beginning to come to light. IPv4 is the fourth revision of the IP addressing system, allowing around 4 billion unique numerical combinations. Naturally, the overwhelming and rapid growth of the internet since the 1980’s has meant these addresses have gone quickly. It is suspected that they will have been fully exhausted by 2012.

A new addressing method was required for the continual growth of the internet. A number of alternatives have been conceived over the years, none more promising than IPv6.

IPv6 allows for a almost unquantifiable number of addresses, with the official number standing at 340,282,366,920,938,463,463,374,607,431,768,211,456, which is unlikely to ever run out. This will secure the future of the internets addressing platform.

So what does this mean for users of IT services across the globe? Firstly, home users should not worry. Internet service providers will handle the switch for you. If new equipment is required for new users, this will be provided to you by any ISP making the switch. Existing customers will likely remain on IPv4 until any major changes are required.

The circumstances are slightly different for commercial users however. It is very important to select providers who will be crossing over to the new IPv6 platform with a network architecture that supports such a change. High end top-level networking equipment must support IPv6 as a protocol for it to function. Because of this any dedicated sever platforms taken out in the very near future with a need for large IP blocks will have to ensure IPv6 compatibility to sustain growth.

Netwise Hosting only utilise fibre links from providers who already support IPv6 ready for the change. Our internal networking infrastructure will be following suit soon, with full support for both IPv4 and IPv6. If you are looking for a trouble free, growth-oriented service solution long into the future, Netwise Hosting are more than able to step upto the challenge whilst remaining the most cost-effective dedicated server provider in the UK market.

Whats New with the Blog?

The number of posts on the blog is growing rapidly. This is making for a very well rounded and highly comprehensive bank of information.

New and important information-rich articles will now be featured by Netwise Hosting, ensuring readers are getting the most out of their visit. You can see our featured articles by clicking the ‘Whats New?’ link in the navigation at the top of the page. Click here to see this new page now.

The scrolling gallery provides readers with a topical image for reference, as well as a short description of what to expect from the article. Simply click the image to be taken to the associated post.

Customer Care and Satisfaction – 5 Top Tips

So many organisations get this aspect of business operations wrong. Not completely and totally wrong – but in a fundamental way many of the largest and most respected companys in operation today miss the mark when it comes to ensuring customers remain happy.

Countless organisations take a flat ‘two dimensional’ view of customer relations, and see it as a function of business only suited to aiding the end user – merely providing itself as a nuisance to the business. This means many firms will adopt a begrudging angle of approach when dealing with customers on such a level, which makes even attempting the exercise a pointless undertaking from the very beginning. For customer care strategies to convert effectively into customer satisfaction, it is important to take a more multi-faceted overview of the situation; good customer care benefits both sides of the relationship.

More often than not, a user will be met with a more than gracious sales pitch before being tied into some form of contractual relationship. This is all good and well, provided the relationship is then supplemented with a top level of support and care. Sadly however, this is often not the case. Goodwill gestures are particularly hard to come by when dealing searching for a suitable remedy in rectifying sub-par levels of service.

Placing customer satisfaction at the very heart of all business operations is essential in ensuring customer retention, as well as maintaining a solid and reputable brand image. So how can this be realistically achieved?

Below are 5 blanket tips that form the foundation of the Netwise Hosting customer care ethos. As unfortunate recipients of poor customer care in the past, we hope that sharing such information will help some way in unifying high levels of care across the board.

1) Want your customers to be happy.

Far too many businesses simply objectify their customers as money-making machines. It is expected that they will spend money with you because the services/products are on offer, and that as a result the customer will be happy. This – naturally – is the wrong opinion to be taking. You have to want your customers to be happy for it to carry across into the overall effectiveness of your approach to customer care. If customers can feel and understand this translation in the mutual agreement of terms and the collective desire for real happiness whilst making use of their services, then they are far more likely to enjoy true satisfaction.
Of course, ‘happy’ is an evocative term used to describe an emotional state. It is being used here as a descriptive element in understanding satisfaction, even if being satisfied does not always result in true ‘happiness’.

2) Connect with customers properly.

One way connections can be a drag for the end user. As a service provider, its not good enough to simply sit back and wait for the customer to make contact should problems arise. A proactive approach to connections is very important, in fortifying the customers faith in the business and the reliablity of its after-care. Global faults, scheduled maintenance, system changes or any other such issue should always be reported to the customer directly and in due course. Bad news, however rare, should still be conveyed to the service users – as well as good news; doing this will ensure customers feel truely connected with the business, and that they matter enough to the organisation to be informed of important issues that may effect their services (be that positively or negatively).

3) Build a professional yet personal relationship with clients.

Giving meaning and depth to a relationship is important. A cold low-contact relationship with no discernible point of contact is far from rewarding for end users. Naturally, where to apply such an approach is also important. Not all customers will be looking for a close business relationship, and as such it should not be forced upon them (however it should available if and when it is required).
This will require an understanding of your customers. If you know they will benefit from a more hands on approach to handling their account, then it would be advisable to act on this. Netwise Hosting always give users one point of contact, and a personal account manager to deal directly with any questions or queries they may have. This is the case right across the board, whether dealing with singular dedicated server owners, right up to high-end colocation clients.

4) Let your products do the hard work.

Taking great care of your customers is a pointless exercise if your products and services do not reflect such qualities. A good product will speak for itself in promoting customer satisfaction. It is also likely to relieve pressure on the need to provide such enterprising levels of support and after-care on a large scale, as a customer with no real issues will almost certainly be satisfied with the product. However it is important to not rely entirely on the product itself. Of course, let it do the hard work for you in ensuring customers feel satisfied before having to deal more frequently with your business, but total reliance on the product to provide users with such satisfaction can lead to problems. No product or service can have a 100% guarantee across all areas, meaning solid customer care strategies must be in place regardless of how successful you feel the product may be.

5) Be flexible and approachable.

Rigid and stuffy avenues of customer contact are a thing of the past – so don’t get left behind. Customer care does not only describe support given after a sale. As a business, you should care for customers from the very first point of contact. Flexibility in tailoring solutions to a particular customers needs is very important in securing more sales, as well as building a deeper relationship with a new and satisfied customer. This flexibility should also extend into the working relationship, applying to customer care strategies and how you deal with your users.
It is also highly important to carefully balance professionalism and approachability. You’re not looking to make personal friends in the course of your business activities (although it can happen), but coming across as a friendly company with no barriers in place to hinder contact is beneficial. This can be reflected in the tone of your business literature, as well as how your brand is presented.

Netwise Hosting always strive to provide our customers with world-class levels of satisfaction. Our own satisfaction comes as a direct result of our users enjoying their services. We aim to make the process of purchasing a solution from us as trouble-free and as satisfying as possible – start to finish. Enter into a powerful relationship with Netwise Hosting, and enjoy the benefits of truely uninterupted peace of mind.

PR and Disaster Planning

Unexpected disaster has the very real ability to take a business from comfortable success to complete failure within a very short time-frame. Naturally, many measures can be put in place to minimise the impact such an event can have on your organisation. For example, a Netwise Hosting off-site remote backup solution is ideal for keeping data safe in the unlikely (yet possible nonetheless) scenario that your business encounters a local disaster; thus potentially compromising valuable information. However, this has been covered in a previous blog post, seen here – this particular entry will look at the PR side of a disaster, and how it can effect recovery. Please also refer to this post for more information on the backup process.

Burning Oil BoomYou don’t have to look too far to find real world examples of how PR can effect the reputation of an otherwise stable business. The most notable recent example of this is the BP oil spill in the Gulf of Mexico. Of course, oil companies don’t have the most glowing of reputations to begin with, considering the drive towards all things eco-friendly. When they put their foot out of line, they can expect a serious public backlash. The Big Picture by Boston.com has a fantastic set of images on this topic, seen here.

BP have been spending countless hours since the tragic explosion attempting to repair their image. But has the damage been done? Regardless of BP’s efforts to quash the media backlash, all attempts thus far have been almost entirely ineffective. BP have accepted responsibility for the disaster, which should play a big part in softening the impact felt by the British oil giant, and are liable for a clean up operation currently costing in the region of $350 million – which is likely to rise.

BP’s current CEO Tony Hayward has issued many statements in response to the events as they unfolded. Any situation in which 11 workers are killed is incredibly difficult to overcome, let alone suffering the aftereffects of the worst oil spill in history. The biggest action currently in place to rectify issues occuring right now in the Gulf of Mexico is what BP have coined their ‘top kill’ venture. This will pump heavy liquid at high pressure down through the drilling equipment, followed by cement to seal off the void. One must applaud Hayward on his complete honesty. It would have been easy for many other CEO’s in his position to shy away from the facts and claim no knowledge of the events leading up to and surrounding the disaster – but this was not the case here. It is likely that this honesty and ownership of the problem will serve the company some form of positive PR, even if the general standpoint is still highly negative.

Twitter has been a key component in how BP has handled PR surrounding the disaster, which has allowed a wide reach to many demographics. Yet the response has still been overwhelmingly negative. Some Twitter accounts have even surfaced on the popular status sharing site with the specific aim being to distribute satirical slander.

BP Global PR is one such account, serving to impact the companies overall PR storm in a negative light. The following quote is an example of the status updates coming from this account. The name of the account – that of it being so similarly matched to a name likely to be in the ownership of BP – also adds to the confusion of many readers.

Our company psychiatrists say now is the time to move onto the last phase of experiencing a tragedy, acceptance mixed with forgetfulness.

So how does this translate to other industries, particularly the hosting industry? Well the moral of the story is to have measures in place to deal with the PR side of a disaster before it occurs. The possibility of an oil spill is fairly high in the drilling industry, so BP should have had a slick and well addressed scheme in place to deal with this particular eventuality.
Of course, there are far fewer unpredictable variables in the hosting industry. There is no real scenario in which members of a hosting team will be killed in an accident. At least that the hope. But nevertheless, how would large-scale data loss or hardware failure effect the image of the worlds biggest hosts, who provide services to some of the nets most traffic-heavy sites.

Recovering from such a disaster in a tangible way is one thing, but recovering your image and brand after such a heavy tarnish is much harder. Support will dwindle, with both new and exisiting clients becoming very anxious about things to come.

Netwise Hosting have every measure in place to ensure disasters never occur. In the highly unlikely eventuality of an unavoidable scenario in which service is heavily effected, Netwise Hosting will always put the customer first in rectifying the issue.