Knowing the business internet speed requirements for your business is critical for optimising your services online, as well as ensuring a great online experience for potential customers. But it goes far beyond that.
Answering the question of what internet speed your business really needs is going to vary based on a lot of different factors. From the industry you're in to the size of your company, there are numerous considerations to consider when determining the right speed for your business.
Business nbn has been gaining a lot of attention because it provides the stability and reliability needed for most businesses. However, there are other options.
This blog looks at what bandwidth is, the factors that affect what speed you need, and how to choose the right internet provider for your unique business. As a business owner, you should have everything you need to determine the best solution for your staff and your customers.
Understanding Internet Speeds
Most of us have a basic understanding of the term internet speed. This is primarily because we complain when there's any lag between clicking on a link and the page or app opening. However, internet speed is more important for businesses than simply wanting something to open faster. Your business internet speed can be instrumental in how successful your business is.
Let's take a look at the factors that affect your internet speed.
How Is Internet Speed Measured?
Another term for internet speed is bandwidth, and that is the term that internet service providers use when discussing speed. The term describes the maximum capacity the connection can manage over a short time frame.
The bandwidth is measured by determining how much data you can download or upload within a second – a period of time that is actually quite impressive when you consider that most things are measured in minutes, hours, or larger units of time.
The more people who are using your business internet at the same time, the slower the speed will be. For example, if someone is uploading a file at the same time someone else is downloading a file, the upload and download will be half as fast as it usually is.
That measurement is reflected in the units specific to your internet connectivity.
- Mbps (megabits per second) – This is the most common measurement and the one used for internet speed regulation.
- Gbps (gigabits per second) – Though not the standard, data that travels at a Gbps rate is much faster than a Mbps connection. For every 1 gigabit, there are 1,000 megabits, so if you are measuring your internet speed in gigabytes, a lot more data is being moved simultaneously.
Ironically, many internet service providers offer speeds that should be measured in Gbps, but they stick with using Mbps. They chose this measurement because Mbps is the standard. Keep this in mind if you see a company offering 940 Mbps – that means they are offering a Gbps rate with room for connectivity over devices.
What's the Difference Between Downloading and Uploading Something?
You download information to your device. You upload data to the internet for others to access.
Most people are more interested in downloading files and information, so many businesses offer faster download speed services. Depending on your industry, that may be largely acceptable.
However, if you upload a lot of information, particularly if you're in logistics or sales, you need fast upload speeds too.
Factors Influencing Internet Speed Requirements
An internet service provider's speed is a baseline – many factors will change whether or not you actually experience that speed.
When you start determining the optimal internet speed for your business, these are the factors you need to consider.
The Size of Your Business
The size of your business is always going to be the first consideration. Considering the number of devices and users on your network infrastructure who need a reliable connection, this is the best place to start when deciding the right speed for your business.
A small business will almost always need a lower bandwidth than a medium or large-sized business. This is because you will have far fewer people downloading and uploading files at any given time.
If you only have ten people on staff, you aren't going to need as much bandwidth as a company with 100 or 1,000 employees because there is only so much that ten people can do at the same time – even if they use multiple devices.
Your Regular Business Operations
Regular business operations will also affect your internet speed.
Suppose your small business has 25 people, but they all create content and upload large files daily. In that case, you will need a lot more bandwidth than most small businesses and probably a lot of medium-sized businesses too.
If you have multiple daily, hour-long video conferences, you are going to need more bandwidth to ensure the best connectivity.
The Connected Devices
The number of devices and the capabilities of those devices that use the bandwidth will also affect your internet speed. You need to consider a lot of potential devices, too.
- Most companies have desktops, so you should know roughly how many of them will connect as you control the desktops within the company.
- Laptops may be trickier as some staff members may have more than one.
- Mobile devices that may be connected are where it will start to get more difficult. People may forget their phone one day, or not need to connect a tablet.
- Then, there are miscellaneous devices that are easy to forget, such as video conferencing equipment.
The final factor you need to consider about devices is their age. The older and slower a device is, the less likely it will be able to benefit from higher bandwidths.
This is why it is important to know which devices are regularly connecting, their age, and their model – by staying current, you get the most out of your current internet bandwidth.
Assessing Your Business's Internet Needs
With all of that in mind, it's time to assess your unique business needs and what speed you need to have optimal internet speeds.
| Business Activity[1] | Connected Devices | Recommended Speed |
|---|---|---|
| Online activity (email, web browsing, research), regular downloads, communications (such as VoIP), and general use of Wi-Fi | Up to 10 | 25 Mbps |
| Streaming and file-sharing | Up to 10 | 75 Mbps |
| Video conferences, use of the cloud computing, regular data backups | Up to 15 | 150 Mbps |
| Regular high-quality streaming and hosting a single server | Up to 20 | 250 Mbps |
| Hosting multiple servers, robust and regular data backups, and reliance on cloud computing | Up to 30 | 500 Mbps |
| Uninterrupted online with no interruptions | Over 30 | 1 Gbps |
In addition to your current internet activities, you need to consider where your business will be in the next 5 to 10 years. You can use the table to help you determine the best option for you in the future.
As you consider the scalability for other aspects of your business, such as cloud use and increased number of staff, determine if or when you should consider increasing your bandwidth . What you need now will almost certainly change in the future.
Impact of Slow Internet Speeds on Business
Even a small interruption or slowdown in internet speeds can cause a significant impact on your business. If it affects your customers, it will be incredibly obvious as they will be very vocal. It often doesn't take long for word of issues to spread.
However, the more insidious problem is when the slow internet speeds affect staff. It can make it difficult to complete regular tasks and interrupt work. This can be incredibly problematic when they are interfacing with clients when an interruption occurs.
The cost for slow internet speeds means that people spend more time waiting and less time working. It's difficult to do a cost analysis on this since each member of staff will be affected differently, but ultimately, it can get really costly.
Ultimately, it can cost you more than if you just have more bandwidth to minimise interruptions.
The other problem is that it can seriously affect morale. When people expect issues with the bandwidth, it lowers their motivation as they know they will be spending time waiting. This can also mean they will pay less attention to the tasks as they don't know how long downloading a large file or similar activities will take.
Choosing the Right Internet Provider
Finding the right provider and internet plan is as much about scalability as it is your current needs. You have a lot of options, so you can find the right solution for your needs and your wallet.
The following are the most important factors to consider when looking for the right provider for your business internet:
- Number of plans with different bandwidths
- Customer support
- Reliability
- Security
- Equipment
- Terms in their contracts
A good provider gives you a lot of options so that you can tailor a solution that fits your changing needs. The following are a few examples of internet plans that tailor solutions to specific needs, such as the amount of data and confidentiality.
- Business nbn – offers fast, reliable connectively with unlimited data
- Nbn enterprise Ethernet – a fibre network dedicated to customers with more sensitive information, such as government customers
- Business fibre – provides high-speed internet with fibre-optic cables
- Wireless broadband – ideal when you need regular data backups
- Business phone systems – hosted systems that ensure a reliable phone connection
You also have leverage when it comes to getting a great deal for your
internet package. Here are a few negotiation tips that can help you get a
great deal on an amazing internet plan:
- Compare plans, and use what you learn to see if you can talk the price down with your preferred provider based on what their competitors are offering.
- See if one of your current providers for other services has a plan that you can use. Bundling can be a great way of saving money, as well as streamlining paying bills.
- Make a call and talk to a real person instead of trying to do it over chat and email.
- If it doesn't work this time, you can try again later. Many businesses don't want to lose existing clients, so just because these tips don't work the first time doesn't mean one of them won't work down the road.
Final Thoughts
Having the right internet speed is critical for the success of your business. It is far worse to have too little bandwidth connection as that can severely impact your business – but you also don't want to overpay for speeds well beyond what you need.
If you would like to know more about nbn co, their website provides a lot of helpful information to help you make the best decision for your business. It's something extra that we benefit from in Australia.
Finally, no matter how wonderful your plan is now, you should always review it periodically. Your business needs this year will change in the next year or two.
Considering how much your business relies on a great connection and internet speed, you want to make sure that you always have an optimal solution for your current needs.
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