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Verizon: Enterprise cloud use reaches tipping point

BY Dan Berthiaume

New York – The use of cloud-based enterprise storage and production applications, as well as enterprise spending on cloud technology, has increased in the past year to a tipping point. According to the Verizon 2013 State of the Enterprise Cloud Report, between January 2012 and June 2013 the use of cloud-based storage grew 90% and use of cloud-based memory increased 100%, mostly due to the shift of business-critical applications to the cloud.

Other findings of the report include:

  • Increased cloud capacity led to a slower growth rate of virtual machines (35%) during the report period.
  • Enterprises increased their average cloud spend by 45%.
  • Rated in order of importance, the four most critical cloud components are uptime, performance, user interface, and API.
  • Sixty percent of cloud applications are web-based and Internet-facing. Another 23% are internal-facing production applications.

Of particular interest to retailers, the report predicts that enabling retail services will be one of three key factors driving future enterprise cloud growth. Verizon research indicates that online retailers are spending more on cloud services to implement Internet-facing, POS, and online purchasing applications. The other two key enterprise cloud growth drivers are increasing worker productivity and leveraging Big Data. Verizon cautions that cloud technology must deliver enterprise-grade security and consistent performance to reach its full potential as a business IT platform.

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OPERATIONS

Chick-fil -A offers free cross-channel promotion

BY Dan Berthiaume

Atlanta – Chick-fil-A is running a “Breakfast on Us” cross-channel promotion that offers a free breakfast entrée to customers who make an online reservation for any Chick-fil-A restaurant. Beginning Aug. 29, customers can visit Chick-fil-AForBreakfast.com to reserve a breakfast entree of choice, as well as a time to redeem their breakfast item at a local Chick-fil-A restaurant between Sept. 9 and Spt. 14.

“The breakfast day part continues to be a tremendous growth opportunity for Chick-fil-A,” said Steve Robinson, Chick-fil-A’s chief marketing officer. “We have steadily focused on maximizing the breakfast day part with a variety of menu enhancements and promotions over the past several years, and we hope our ‘Breakfast on Us’ promotion will encourage our current customers to try something completely different and also help attract new breakfast customers for us.”

Individual Chick-fil-A restaurants will offer a choice of up to 10 breakfast entrees. Individual consumers will only be allowed to redeem one free entrée during the six-day promotion period.

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One more thing to worry about this Christmas

BY CSA STAFF

As if competing against Target, Best Buy and Amazon.com isn’t challenging enough, nationwidethe fast-food “strike” which took place Thursday offered a glimpse of the type of headline-grabbing, disruptive activities Walmart can expect from its opponents this holiday season.

Organized labor attempted to orchestrate worker protests at Walmart stores last year on Black Friday and encouraged workers to walk off the job at select locations. The actual number of workers who left their posts was miniscule, but the effort garnered considerable publicity, further disparaged Walmart’s reputation, but was said to have no impact on sales.

On Thursday, in a prelude to what Walmart may expect from the United Food and Commercial Worker (UFCW) come November, the Service Employees International Union (SEIU) took on the entire fast food industry with a series of walk-off-the-job events. The events were carefully communicated to the media to ensure maximum exposure and highlight the rate of pay the typical worker at a McDonald’s or Taco Bell receives. SEIU said the strikes took place in 60 cities, a view Rob Green, executive director of the National Council of Chain Restaurants took exception to.

“A few scattered protests organized by outside labor groups hardly amounts to a nationwide ‘strike’ or movement,” Green said. “The vast majority of fast-food workers across the country are committed to their jobs and realize that the restaurant industry provides an important first step into the world of work as well as long-term career opportunities. Beyond teen-agers and some part-timers, most restaurant workers make more than minimum wage, and can work their way up to management-level and corporate-level positions that provide rewarding career paths.”

Those comments sound remarkably similar to points made by Walmart executives who often rebut criticism of the company’s wages by pointing to the opportunity the jobs offer. At the company’s shareholders’ meeting back in June, Walmart president and CEO Mike Duke characterized the jobs the company offers as a “path forward and a ladder up.”

He was referring to the opportunity that exists in an organization with 2.2 million employees where talent and hard work is said to allow workers to go as far as they want.

Even so, opportunity doesn’t pay the bills, something organized labor is sure to remind shoppers of again this holiday season as it looks to recruit disgruntled employees to stage protests.

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