• TECHAISLE

    TECHAISLE

    Global SMB and Channel Partner Market Research Organization
    SEE OUR SERVICES
  • TECHAISLE

    TECHAISLE

    SMB Data You Can Rely On | Analysis You Can Act Upon
    SEE OUR RESEARCH
  • NEW CLOUD STUDY

    NEW CLOUD STUDY

    SMB & Midmarket Cloud Adoption Trends
    LEARN MORE
  • NEW SECURITY SURVEY

    NEW SECURITY SURVEY

    SMB & Midmarket Security Adoption Trends
    LEARN MORE
  • NEW MOBILITY SURVEY

    NEW MOBILITY SURVEY

    SMB & Midmarket Mobility Adoption Trends
    LEARN MORE
  • NEW IOT STUDY

    NEW IOT STUDY

    SMB & Midmarket IoT Adoption Trends
    LEARN MORE
  • UNIQUE SURVEY

    UNIQUE SURVEY

    Understanding SMB & Midmarket Buyers Journey
    LEARN MORE
  • FEATURED INFOGRAPHIC

    FEATURED INFOGRAPHIC

    2017 Top 10 SMB Business Issues, IT Priorities, IT Challenges
    GET IT NOW
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8

Techaisle Blog

Insightful research, flexible data, and deep analysis by a global SMB IT Market Research and Industry Analyst organization dedicated to tracking the Future of SMBs and Channels.

15 Predictions for 2015: SMB Channel Trends

Trends in the channel are felt throughout the IT ecosystem: they affect the pace at which new products gain market acceptance, play a role in determining which vendors rise and fall in market share, and have an enormous effect on the ability of small and even midmarket businesses to absorb new technologies and apply them successfully to business challenges. The epicenter of the trend impact is, of course, channel businesses themselves as they act as a key connection point in the IT product lifecycle.

What will we see in the channel in 2015?

Continue reading
0 Comments

Fifteen Predictions for 2015

1. Hybrid arrives – not as a strategy but as the result of many discrete decisions. Sources ranging from Consumption Economics to (many) vendors would have us believe that businesses decide on a cloud strategy first, and then layer new workloads on top of whichever platform they select. The reality is very much different – Techaisle research shows that businesses make platform decisions on a workload-by-workload basis, and that over time this results in companies supporting a mix of public cloud, private cloud, hybrid cloud, and on-premise products. The result is that public, private and on-premise are all part of the mix...and that an ability to manage hybrid infrastructure will become a key corporate IT requirement in 2015.

Continue reading
0 Comments

SMB Shadow IT, BDM spending amount to nearly $100 billion in the US alone

Is IT losing its authority over IT expenditures and directions? Data from the Techaisle report “The 360 on SMB & Midmarket IT Decision Making Authority” suggests that increasingly, business decision makers (BDMs) make technology-related decisions and control technology-related budgets.

The report finds that SMB “Shadow IT” in the US – expenditures made by business management without IT involvement – will amount to $27 billion in 2015. Added to the “formal” IT budget that is visible to IT but under BDM management, technology spending by US SMBs that is outside the control of the IT department will reach $99 billion, a figure that is greater than Microsoft’s annual revenue, twice the revenue of Cisco, and nearly 25 times larger than the revenue recorded by Salesforce.com in its fiscal 2014.

The data clearly illustrates that the earth has shifted from underneath the IT department within small and midmarket businesses. Executives in these companies need to understand what these new spending patterns mean to IT deployment and efficiency within their operations, while suppliers to this market – business application vendors like Microsoft and Salesforce.com, hardware vendors like HP and Dell, and the thousands of services firms that help US SMBs to make sense of technology – need to adjust to the changing patterns of SMB IT investment and control.

Shadow IT is a commonly-understood phenomenon: it represents spending on IT products and services by BDMs that are made without the IT department’s approval, guidance, or in some cases, even without IT’s knowledge. IT itself generally portrays these purchases as dangerous to the organization, creating the potential for security breaches, incompatibility between corporate systems, inconsistency in corporate systems of record, and/or loss of critical data. BDMs tend to portray them differently, positioning these purchases as IT extensions to current business activities that respond to business needs more quickly and directly than the IT department is capable of doing.

Whatever one’s perspective on shadow IT, it is clearly an important force in the SMB IT market. How important has been a matter of conjecture, since by its nature, shadow IT is difficult to isolate and quantify. However, by comparing multiple data sets from surveys that capture both ITDM and BDM perspectives, Techaisle is able to provide fact-based estimates of shadow IT activity within US SMBs. Highlights of these findings include:

Shadow IT spending on business applications

Authority for “formal” business application spending varies widely between small and midmarket businesses. However, the overall level of shadow IT spending on business applications is very consistent across the two SMB segments, at 15 percent of total small business application spending and 14 percent of midmarket business spending. In addition, business management (BDMs) within SMBs formally controls over 50 percent of business application expenditures.

Shadow IT spending on infrastructure products

The infrastructure products market is much different than the business application market – both across small and midmarket businesses and with respect to the influence of IT over “formal” purchases. The influence of IT is much greater in the infrastructure category than in business applications: IT is responsible for 23 percent of infrastructure spending within small businesses and controls well over 50 percent of total spending on infrastructure within midmarket businesses.

Overall, shadow IT accounts for 56 percent of small business infrastructure expenditures. The enormous shadow infrastructure spends by small business indicates a clear problem for small business IT managers, and realistically, for small businesses themselves: the notions that shadow IT creates security and related issues are not merely an IT construct, it is a real issue. Suppliers with solutions that help address shadow infrastructure problems (such as MDM, managed app stores, etc.) will find a very substantial potential market in the US small business segment.

Shadow IT spending on IT services

BDM-led spending on IT services has different implications in different employee size categories: in small business, it often represents an authorized or “formal” spending on mainstream IT services, while in larger businesses, it may represent a means of avoiding IT department involvement in new IT/business initiatives. Techaisle data supports this perspective. BDMs control 35 percent of IT services spend in midmarket businesses. The shadow IT spending within the midmarket – pegged by Techaisle at 48 percent of the total – creates an intriguing opportunity for IT services suppliers. “Official” suppliers to midmarket businesses may continue to sell to IT, which controls a higher proportion of the formal IT services budget than their BDM colleagues. However, when shadow IT is added into the opportunity pool, BDMs are as potent a force in the midmarket business IT services market as ITDMs. This suggests that two different approaches – positioning IT services firm as an extension to IT, or as an alternative to IT – have equivalent market opportunity today.

0 Comments

SMB Key Success Metrics for Collaboration solutions

Key success metrics for collaboration systems center on speed of response to customers/prospects and business decision timeliness and accuracy.

Techaisle’s global SMB survey results show that 42 percent of SMBs assess the success of collaboration solution initiatives in terms of improved speed of response to customers and prospects. In the SMB survey Techaisle asked respondents “which metrics does your organization use to measure the business benefits of collaboration technologies?”  Small and midmarket business responses to the question show that the success of collaboration systems is primarily gauged by improvements in response time to customers or prospects. However, this is where the similarity between small and midmarket businesses’ measurement of key success metrics for collaboration solutions stops.

b2ap3_thumbnail_success-metrics-300x150.jpg

Small business View

Apart of speed of response, 36 percent of small businesses report that conversation views, comments and topics are used to evaluate collaboration solution success; Techaisle believes that while this makes sense from a couple of perspectives (it provides an indication of system use/adoption, and metrics can be easily collected and compared), it does not make sense from an important standpoint of “does this metric measure an important business outcome?”

Techaisle believes that counting conversation views, comments and topics is a relatively weak success metric for collaboration systems, one that will gradually give way to measurements, like decision timeliness, that are tightly coupled with key business outcomes. Somewhat surprisingly, internal response times, that is, speed of response to employees, is also an important measurement criterion for small businesses with 20-99 employees.

Midmarket View

Decision accuracy, a key evaluation criterion, is rated as the second most important collaboration solution success metric by 43 percent of midmarket businesses and the third-most important by small business respondents. Midmarket businesses are also focused on decision timeliness, which strikes Techaisle as a reasonable measure of collaboration success.  

Further analysis of the midmarket data shows that speed of customer/prospect response is more firmly positioned than small businesses as the key determinant of solution success. Survey data also shows that midmarket businesses with 100-249 employees also view a reduction in the cost of collaboration as a key success metrics. This is interesting because it is the only employee size segment to include cost among the top three measures of collaboration solution success.

Techaisle Take

It is always difficult to measure the impact of technology, especially when that technology has a broad purpose, rather than a narrowly-defined technical objective. One can measure the impact of a faster processor, network or database in response time, even if one is uncertain of how to assess the business relevance of better response time. But what is the best way to evaluate the success of collaboration solutions that are deployed to create corporate information repositories, to connect geographically-dispersed staff, to improve innovation or teamwork, to overcome constraints on decision speed, and/or to address corporate mandates?

Techaisle believes that the survey findings, reported in 360 on SMB Collaboration Solutions Adoption Trends contain important messages for collaboration solution providers. Marketing material aimed at SMB business management should emphasize, in clear and measurable terms, how investment in a solution will improve the timeliness of responses to customers and prospects. The messaging should also include information (again, in clear and preferably measurable terms) on how a solution can enable better decision timeliness. And while cost is always important, survey data indicates that reduction in the cost of collaboration should not be a central facet of solution positioning. Instead, suppliers are urged to look for ways (via case studies, perhaps) to illustrate how better collaboration solutions leads to more accurate business decisions.

Related blogs:

34 percent SMBs want out-of-box Collaboration within SaaS/Cloud applications

SMB and Midmarket File Sharing & Collaboration Adoption to Grow by 52 percent

SMB Content Management & Collaboration Solutions Adoption: Seven Key Trends

0 Comments

Search Blogs

Find Research

SMB Data You Can Rely On | Analysis You Can Act Upon

Techaisle - TA