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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.

SMB IT Solution Leadership Divide

Techaisle’s unique SMB research to understand the current state and implications of distributed IT influence and authority shows that today, the DMU (Decision Making Unit) is much bigger, much more diverse, much more difficult to inform, and can be much slower to take action. Business decision makers (BDMs) are an intrinsic force within DMUs in most SMB organizations, and are the primary decision makers in some high-growth areas. These BDMs have different objectives for technology, different perspectives on adoption drivers and impediments, and tend to be influenced by different information sources. The resulting diffusion in responsibility/authority and information channels has created an environment where buyers and sellers struggle to develop the cohesion needed to promote or embrace new IT/business capabilities within existing IT and business process structures.

The study shows that both ITDMs and BDMs play important roles in the (formal and shadow) acquisition of IT products and services. However, Techaisle’s research has found that the distinctions between these roles are not evenly applicable across all types of IT-enabled solutions: in some areas, the business will look to IT for leadership, and in others, it will take direction from BDMs.

Figure below illustrates the extent to which ITDMs and BDMs are seen as solution leaders within small and medium businesses, and across nine major solution areas. The solutions have been assigned to three groups: those on the left (virtualization, managed services and IaaS) are labeled “IT led,” and represent areas where IT is generally seen as leading corporate initiatives; they are focused on the core infrastructure used by IT to deliver corporate services to users. The ones at the right (collaboration, social media and analytics) are labelled “BDM led,” and are solutions in which BDMs provide most corporate leadership, and IT is cast very much in a supporting role. The solutions in the middle – Big Data, SaaS and mobility – have been labelled “IT/BDM collaborative.” These are solutions that respond to BDM needs, but where IT is important to supporting delivery capacity.

smb-solution-leadership-blog-techaisle


The positioning of these solutions is important to IT vendor sales and marketing strategies. Solutions in the “IT led” category need to have strong IT-focused positioning, with detailed information on product attributes; this material should be supported with a second layer of collateral containing information on the business case for the solutions, and aimed at BDMs.

Solutions in the “BDM led” category require very different positioning: here, vendors need to make a strong case for the business benefits and relevance of the solution and orient these messages towards BDMs, supporting this campaign with accompanying technical information designed to provide clear deployment and integration guidance to ITDMs.

The “IT/BDM collaborative” category is the trickiest to address. It requires deep information on business benefits and the process steps required to capture those benefits targeted at BDMs, and deep information on how to assemble, deploy, integrate and support/optimize these solutions targeted at ITDMs – and an understanding of how to position and convey the messages to each audience.

During the survey, Techaisle explored one other solution issue that is important to understanding the different perspectives of ITDMs and BDMs. Each respondent was asked to categorize the nine solution areas as having one of two primary impacts: driving growth or containing costs/”increasing the bottom line.”

The comparison of small and mid-sized ITDM and BDM perspectives provides an instructive view of the differences between the two communities. Looking first at the small business results the survey finds that in six of eight areas (IaaS and SaaS combined into a single “cloud” category), BDMs are more likely to view a solution as contributing to growth, and ITDMs are more likely to view a solution as helping to control costs; this may reflect a fundamental difference in how each group approaches its business objectives. In the mid-market findings study reveals that the perceptions of value of ITDMs and BDMs are very closely aligned in mobility, virtualization, Big Data and managed services. ITDMs are more likely to believe that cloud will drive growth than their BDM peers, while BDMs are much stronger believers in the growth contributions of the three IT-led solution areas (collaboration, social media and business intelligence/analytics).

About the Study: 360 on SMB & Mid-Market IT Decision Making Authority - BDM vs. ITDM

The study covers:

    • Stakeholders and their roles in end-to-end IT solution adoption

 

    • ITDM vs. BDM : Balance of Authority (Needs, Budget, Purchasing)

 

    • ITDM & BDM: Locus of Leadership in driving different types of IT Solution Adoption

 

    • ITDM & BDM: Leadership roles in securing Cloud, Mobility

 

    • ITDM vs. BDM: Success Attributes and Benefits of Cloud & Mobility Solutions

 

    • SMB & Mid-Market Businesses: Shadow IT Spending

 

    • Business Impact of BDM vs. ITDM perspectives and expectations with respect to IT Solutions

 

    • ITDM vs. BDM: Differences in Business Issues, IT Challenges, IT Priorities

 

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SMB Hybrid Cloud usage will jump by 56 percent in 2015: Public vs. Private vs. Hybrid

Techaisle’s recent SMB Cloud computing adoption survey of 1455 US SMBs shows that hybrid cloud is gaining momentum in small businesses and is becoming entrenched in the mid-market businesses. According to the survey, hybrid cloud is currently being used by 18 percent of cloud-using SMBs and will be the approach of choice for 28 percent in 2015, an increase of 56 percent. Similarly, Hybrid Cloud accounts for 32 percent of cloud using mid-market businesses today, and is expected to capture a similar proportion of new spending in 2015.

The survey data also reveals that use of “hybrid-only” cloud is expected to increase by 87 percent, the proportion of SMBs using a combination of private and hybrid is expected to grow by over 100 percent and use of all three of public/private/hybrid cloud is expected to increase by an even higher percent.

Even SMBs that are pursuing Public or Private Clouds are ripe for Hybrid cloud in the future. In small businesses, survey shows that 50 percent of those planning new cloud initiatives in 2015 are looking to implement private cloud – in effect, using internal infrastructure to deliver on-demand services. However, these small businesses will most likely hit the limit of their internal resources and bridge to external cloud when they do so.

Techaisle survey data further shows that trust in public cloud is leaping within mid-market businesses with 44 percent anticipating use of public cloud in 2015 - up from 27 percent currently – typically for workloads including customer service, hosted VoIP, collaboration, marketing automation and business intelligence. These mid-market businesses are also looking to improve integration and manageability by connecting Public cloud workloads with internal systems creating an inevitable move to Hybrid cloud.

Small businesses (1-99 employees)

42 percent of small businesses are currently using only private cloud, less than 20 percent are using only public cloud and a small percent of small businesses are using only a hybrid approach connecting public and private clouds. This means that their cloud usage journey to date has consisted of using internal resources to deliver on-demand services.

Survey data also reveals that many small businesses are using more than one cloud approach. 15 percent are using both public and private cloud for discrete purposes and not configured as part of a single delivery infrastructure. Relatively small proportions of small businesses are using private and hybrid or public and hybrid. Segmentation of survey data reveals that small businesses using all three of public, private and hybrid clouds have an average of 43 employees and four locations making them noticeably larger than other small businesses.

Mid-market businesses (100-999 employees)

Techaisle SMB cloud survey also shows that less than 40 percent of cloud-using mid-market businesses rely on a single delivery approach for cloud. 25 percent use only private cloud and one-third use two different delivery approaches, with the most common being a combination of private and hybrid cloud or private/public cloud. 30 percent of cloud-using mid-market firms surveyed report that they have currently deployed all three of public, private and hybrid cloud. Unlike small businesses, these mid-market businesses are smaller is size than those using a single delivery method but they tend to have a higher number of locations.

Final Techaisle Take

Survey data suggests that selection of a Public vs. Private vs. Hybrid Cloud strategy is not a “religious issue” and that SMBs are selecting the best approach for their requirements and they change approaches in response to changing business needs. The decision to use one two or three cloud delivery models is also a result of IT finding that the best way to use cloud across a wider range of business requirements is to deploy a wider range of clouds. Although Hybrid Cloud is gaining momentum within SMBs, cloud suppliers should carefully consider the use cases for whichever of public, private and/or hybrid they are promoting, and to stress the ways in which the approach is optimal for the business requirement. SMBs are committing to workloads first before Public or Private or Hybrid.

Detailed data and analysis is available in report: 360 on SMB & Mid-Market Cloud Computing Adoption Trends

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21 percent of SMBs have IT Specialists reporting to Business Management

Emerging Trend - SMB IT Specialists empowering business units, blurring the IT-Business divide

Techaisle’s study on “360 on SMB & Mid-Market IT Decision Making Authority - BDM vs. ITDM” reveals an emerging trend of IT specialists with purchase authority being resident within business units and reporting to business rather than IT management. The data is significant enough for marketers to pay close attention as the survey shows that already in 21 percent of small (1-99 employees) and 36 percent of midsized (100-999 employees) businesses IT Specialists are embedded within business units and even more are planning to hire specialists within their business units. Further, the study also shows that these IT specialists are an important influence point for new IT solutions purchase and that in 29 percent of small businesses and 49 percent of mid-sized firms that have “business unit resident IT specialists” these staff members are the primary decision makers for new IT solution purchases. This trend will naturally tilt the balance of decision making authority towards business management by empowering them with knowledge and decision-making agility.

The need for IT and business to work together to ensure that all stages of IT adoption process meet both technical and business process requirements is an important factor in IT solution success. Survey data clearly demonstrates that SMBs have taken this a step further to address the need for what is sometimes referred to as “double deep” employees (with respect to IT and business experience) by positioning IT specialists within business units reporting to business (rather than IT) management. In a way these IT Specialists reporting to Business Management in SMBs are blurring the IT and Business divide.

Small businesses - informal

The trend is widespread and informal in small businesses in the 10-99 employee size categories with 45 percent of firms reporting the presence of IT specialists within business units. In most cases this is an informal connection with IT-savvy employees responsible for IT-dependent processes.

Mid-market businesses - pronounced

However, within mid-sized businesses the trend is more pronounced and is becoming a more conscious strategy with IT support embedded within the line of business departments. As the balance of IT decision making authority continues to shift towards business decision makers the presence of IT specialists who can identify appropriate IT solutions within a mid-market business unit is gaining tremendous relevance. This also means that rogue implementations of solutions may well accelerate. More importantly, in the next 3-5 years it is highly likely that a business unit will begin to think and operate like an IT department as they learn from their missteps.

IT or BDM-led Solutions

To understand an SMB buyer’s journey Techaisle research considered nine IT solution categories and the influence of various stakeholders from needs identification to selection and adoption process. At a high-level the nine IT solutions were found to belong to one of three categories – IT-led solutions, areas where IT is generally seen as leading corporate IT initiatives; BDM-led solutions, solutions in which BDMs provide most corporate leadership, and IT is cast very much in a supporting role; and IT/BDM collaborative solutions that respond to BDM needs, but where IT is important to supporting delivery capacity. The positioning of these solutions is important to shaping the focus of IT vendor sales and marketing initiatives.

It is important for IT suppliers to understand whether their current and prospective accounts have IT specialists assigned within business units, and where they do, to establish strong relationships that will enable the supplier to understand and respond to IT/business solution demand.

About the Study: 360 on SMB & Mid-Market IT Decision Making Authority - BDM vs. ITDM

To understand the current state and implications of distributed IT influence and authority Techaisle conducted a unique survey of SMB organizations where we surveyed roughly equal numbers of business decision makers (BDMs) and IT decision makers (ITDMs) across seven employee size categories, and then analyzed results to create a unified view of the new IT decision authority realities.

The study covers:

    • Stakeholders and their roles in end-to-end IT solution adoption

 

    • ITDM vs. BDM : Balance of Authority (Needs, Budget, Purchasing)

 

    • ITDM & BDM: Locus of Leadership in driving different types of IT Solution Adoption

 

    • ITDM & BDM: Leadership roles in securing Cloud, Mobility

 

    • ITDM vs. BDM: Success Attributes and Benefits of Cloud & Mobility Solutions

 

    • SMB & Mid-Market Businesses: Shadow IT Spending

 

    • Business Impact of BDM vs. ITDM perspectives and expectations with respect to IT Solutions

 

    • ITDM vs. BDM: Differences in Business Issues, IT Challenges, IT Priorities

 

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Seven Lessons for Successful deployment from Current SMB VDI and DaaS Users

Where is the market for client devices going – and what does it mean to corporate strategy? These are questions that Techaisle and its clients – and the industry as a whole – has been wrestling with ever since the decline of the traditional PC opened the door for alternative client technologies.

In many cases, users now combine mobile and fixed devices, and with this multi-device approach, consistency and security become even more important than they were in the laptop era. Many organizations are responding to a need to securely manage and distribute user data and applications by investigating virtual desktop (VDI) technologies enabling delivering of “desktop as a service,” or DaaS. With VDI/DaaS, businesses deploy client virtualization technologies from suppliers like Citrix and VMware to ensure that users have anywhere/any time/any device access to current information, their applications and their desktops. These technologies allow for better data security and auditability, and often offer the additional benefits of reduced CAPEX and OPEX.

The allure of VDI and DaaS is clear – but the technology itself and the path to realizing its benefits can still seem somewhat mysterious to many small and mid-sized businesses. To understand implementation challenges and lessons learned, Techaisle conducted depth interviews with small and mid-market businesses (from 50 employees to 999 employees) that are currently using VDI and/or DaaS solutions. Based on a random sampling these businesses belonged to financial services, professional services, manufacturing, construction, utilities, retail and private education segments. These early adopter SMBs have rolled out VDI and/or DaaS solutions within their organizations. The number of users using VDI and/or DaaS within the businesses interviewed ranged from a low of 30 employees for a small business to a high of 600 employees within a mid-market business.

Techaisle’s quantitative VDI/DaaS research shows that the key user objectives in adopting either on-premise or hosted VDI/DaaS solutions revolved around mobility, application availability from anywhere and on any device, disaster recovery, centralized management and administration of end-point devices at the same time reducing costs. Based on users’ real-world experiences and feedback, Techaisle has compiled a list of seven key lessons for success for small and mid-market businesses planning to adopt VDI/DaaS solutions.

1.       Prepare a roadmap of the solution and a blueprint of implementation process

Before starting the implementation process and before even considering a pilot, current VDI/DaaS users advise potential users to create a roadmap of the solution and a blueprint of implementation process. The roadmap and blueprints should include solution and brand selection criteria, a list of solution components and their objectives, changes required (if any) to the core infrastructure to support the solution, costs involved and budgets for cost overruns, security vulnerabilities, phase-in of users and their training process and timeframe for enhancements post implementation.

2.       Hire external consultants - people who have experience

It is almost impossible to develop a roadmap and blueprint without the guidance and close involvement of experts.  All SMBs that we interviewed had contracted with external consultants varying in size from a group of 4-5 to a maximum of 40-50 people. In each case, consultants were preferred over resellers and service providers due to their focused deep expertise and track record. However, each of the current users of VDI/DaaS had decided on either Citrix or VMware solution prior to engaging with consultants with corresponding expertise.

“We approached our known consultant which is a small company formed by 6 to 7 people and have expertise in VMware solution. They are highly technical professionals providing free infrastructure and free connectivity support and covering infrastructure maintenance and end user connectivity”.

“We preferred going with Consultants as they had solution specific expertise. They gave optimal options taking into consideration both cost and technology sound solution. They even offered technical assistance even after post implementation and maintenance for one year. They are a small company with VMware expertise formed by a core group of people”.

“We approached consultants, a small group of people, with deep Citrix expertise, because they had relevant qualifications and certification”.

3.       Ensure that the solution supports legacy software

Not all SMBs are using all modern applications; many mid-market businesses have core legacy applications and/or applications that are essential to a specific department and workgroup. Current SMB users of VDI/DaaS advise that the blueprint prepared should include a list of applications currently being used within the organization and to systematically test to ensure that they will continue to be supported in the new DaaS environment.

The VDI/DaaS SMB users also advise that businesses should also revisit the current licensing arrangement they have for some of their applications and ensure that in a virtualized environment those licenses are valid and applicable.

“We learned during the implementation phase that not every application is supported by VDI or DaaS solution. It is difficult to understand and analyze the amount of storage used by different departments”.

“The main concern was with software licensing concerns. Few of our application’ licenses restricted the use of software on systems accessed by terminal servers. There were issues coming up initially that affected our end users as these applications were not accessible on multiple virtual desktops”.

“The main concerns were the length of the project, the cost of the project and back end integration. Backend integration was a major concern as we have legacy application running on the system”.

4.       Get the business users ready

Business users do not like changes that affect their interfaces – it takes time to build new usage habits, and this can (and generally does) have a short-term impact on productivity. Although a VDI/DaaS roll-out is often used to deliver better mobile systems to business users – generally, a well-received benefit – it is essential to prepare the business users with new interfaces, log-ins, support mechanism, and training on the use of thin clients. This will require IT to manage a number of VDI/DaaS-specific issues, including application downloads to user devices, management of persistent or non-persistent desktop experiences, and tactics to address latency if/where it impacts performance.

“A challenge we faced post implementation was to manage new rounds of user trainings. The new solution meant introduction of a different system to the users and one where users had to undergo a series of trainings to become comfortable with it”.

“The main challenge that we faced was user training and that was a really big concern for us”. 

“We had to give training to users in about two weeks which was taken out of their operational hours and once the service was put in place the learning was steep, the users were not very productive during that time”.

“Most of the issues were to do with the users who were unable to come to terms with the changes and the content that could access easily”.

5.       Conduct a pilot

Conducting a pilot helps in fine tuning the roadmap and blueprint for implementation.

“During the pilot test, we observed a need to modify our terminal server as they were not responding to the end users request. Then we decided and made changes in terminal server by making a cluster of terminal servers so that similar end users request would be sent to desired terminal server, to cut down network traffic congestion”.

“At the initial stage we started facing issues which were basically related with bandwidth or poor network response. We decided to increase our bandwidth for offering end-users customizable experience similar to that of a physical desktop”.

“In the pilot stage some issues popped out. First of all, the expected cost for the pilot stage rose considerably. Also we got a mixed reaction from the team using it as some said they were able to fully utilize the resources, whereas when we tested it over other networks like WLAN, the data was not accessible”.

6.       Create a detailed budget, be prepared for cost overruns

The current users of VDI/DaaS suggest that potential adopters should budget 25 percent for software, 20 percent for services, 20 percent for networking and one-third for hardware. The percentages vary for small businesses where the budget allocation for hardware varies between 10-15 percent and the proportional cost of software rises to 30-35 percent. Current users advise businesses that have legacy applications to allocate higher budgets for hardware and services, as high as 45 percent and 35 percent respectively.

As many as 40 percent of SMBs indicate that cost overruns of 10-20 percent is a given.

“There was additional expenditure required. The testing phase was difficult as we had to change our server and switches”.

“In testing phase we found out that the users had to get software assurance which delayed the project, delayed purchase of licenses and forced additional expenditure”.

7.       Upgrade server and network infrastructure

The most common and almost universal changes to the IT infrastructure to prepare for VDI/DaaS usage are installation or upgrades of blade servers, upgrading cabling to fiber optics cable thus enabling substantially higher data bandwidth, replacement of switches for routing higher throughputs, installation of thin clients and in some cases increasing storage.

Current users generally opted for specific server and thin client brands based on either recommendation from their consultants or because of existing relationships. Brands most often used were IBM, HP and Dell. Most SMBs preferred to use Blade Servers.

“We upgraded cabling by using fiber optics cable which boosted our bandwidth and smooth flow of data from the data center to the end users. We used fiber optics as it was a cost effective solution for us rather than going on with existing metal cabling which had an impact on bandwidth”.

“Networking and replacement of cabling was one issue as it did not work with the solution initially, the cabling between the server switches and office switches and for this we looked for fiber cabling”.

Concluding observations

The need for VDI/DaaS as a mobility enabling technology is clear, and its corresponding benefits for user experience and data management are compelling. However, the path to VDI/DaaS can be tricky to navigate. By capitalizing on the advice provided by current users, SMBs interested in adopting VDI/DaaS can set realistic objectives and expectations, and can manage confidently towards effective deployment.

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