Techaisle Blog

In 1818, John Keats, the famous romantic lyric poet wrote “a thing of beauty is a joy forever”. Two centuries later I opened the Dell XPS 13 9300 packaging to behold the beauty of a PC notebook. I let the XPS 13 sit on my desk for three days, lest I may spoil the serenity of the frost white / alpine white composite fiber chassis. But use it and review I must.

As an SMB analyst, I decided to evaluate the notebook through two lenses – the SMB and home user. Consumers & SMB employees already overlap in their use of technology usage between work, home, anywhere. Dell XPS 13 is a right-fit for both. The latest model that I am using is Intel 10th Generation i7 (Comet Lake six-core processor), 1TB SSD, 16GB RAM and FHD+ display.

The difference between the new Dell XPS 13 9300 and the older version XPS 13, which I am used to, is like chalk and cheese. Besides look and feel, power and productivity seem to be the core design tenets of the newest model. Productivity enhancement begins with the four-sided InfinityEdge 13.4" FHD+ Touch anti-reflective 500-Nit display. The original 16:9 screen has been replaced with 16:10 which as per Dell has 91.5% screen-to-body ratio. As a result, the 19.5mm bezel at the bottom of the display which used to house the webcam has been reduced to 4.6mm giving the entire screen an edge-to-edge display. PowerPoint and Excel or Excel and Word or PowerPoint and Word are three of the applications that I use side-by-side most often. With the new aspect ratio, I feel that I am successfully tricked into achieving better productivity because of more screen real estate. Working from home, my XPS 13 notebook is usually connected to Dell UltraSharp 27-inch monitors via a Dell dock but I remain productive even during my occasional trips to other rooms of my home (in the absence of travel). When I have to look at data all day long, full screen brightness works great for me – both indoors and outdoors.

In addition to a taller display, the edge-to-edge keyboard with larger keycaps and touchpad add to a productive experience. The left and right arrow keys are full-size, bigger than in previous models but the up and down arrow keys are still annoyingly narrow and tiny. The page up and page down keys are gone but I do not miss them. Normal travel of the keys makes for comfortable typing for both one-finger and ten-finger typists. The keyboard backlight is nice but the color against composite alpine keyboard deck threw me off initially because the contrast is unnoticeable. There is a slightly higher light bleed under the “U” key than other keys which leads me to believe that all keys may not be seated uniformly. But I am just nitpicking. It does not in any way hinder the performance, likeability and experience of the notebook. After many days of use I have managed to reprogram my muscle memory to look for delete key one space to the left because its rightful place has been taken over by the power button / fingerprint reader (which is easy to reach, perfect size and not bothersome and incredulously placed on the side in the Dell Latitude 7390). The glass touchpad is not only smooth but is also big in a small-sized notebook. In the absence of left-right click buttons the physical switch works great for me which I prefer over a haptic sensor (present in some PC brands). The ample space for palm rest is one of the best experience design elements of the keyboard.

Precision is impossible but agility and resilience are realizable. In every crisis, there is opportunity. If history is any indication then the SMBs are well-placed to narrow the banks of uncertainty. With integrative thinking SMBs will be adept at maneuvering around the edges of flames that have been fanned by COVID-19. 

Over 12 years of Techaisle tracking data paints a fascinating picture in which SMB business goals established by unexpected challenges drove new IT priorities. Klaus Schwab, Founder, World Economic Forum observed that, "In the new world, it is not the big fish which eat the small fish, it's the fast fish which eat the slow fish." SMBs are the fast fish as compared to enterprise segment.

After every downturn, SMB IT spend has rebounded higher and faster than overall (consumer + SMB + enterprise + government + education) IT spends. Techaisle had published its forecast scenarios here.

But the questions remain. Is today the same as the past? Will the future be different? We know that to be uncertain is to be uncomfortable, but to be certain is to be ridiculous. There are already many discussions and surveys conducted by various firms on today’s devastating impact on SMBs. At Techaisle we agree that SMBs are currently desperately operating between the raindrops but our objective is to square the circle, to simplify the path forward for IT vendors and channel partners and see past the blind corner.

To understand the impact of COVID-19 on future of IT we conducted a survey of N=2427 SMBs in several countries. Regardless of the uncertainty, over 50% of SMB business leaders in Asia/Pacific and some countries in Europe are optimistic and are confident about a V-shaped recovery as compared to US and UK SMBs who believe in more of a U-shaped recovery.

Download free Techaisle Take document to understand:

• Why agility and adaptability will accelerate recovery for SMBs Worldwide? Global SMB IT spend vs Overall IT spend vs GDP growth rates
• Why SMB technology and business alignment will result in resiliency, agility and adaptability?
• What will be post COVID-19 impact on business and IT operations? Uncertainty and status quo.
• What will be the impact on tech investments? Increase, decrease, delay, no change
• Will digital transformation be the agility enabler for SMBs?
• What is the current non-technology related work-from-home challenge for SMBs?

Consider these statistics from Techaisle’s recent worldwide channel sizing and channel trends studies. 62% of MSPs have less than 25 employees, 92% of MSPs have less than US$5 million in annual revenue. A large majority of these MSPs sell to smaller SMBs who are currently experiencing gut-wrenching disruptions to their businesses. MSPs are not immune to the COVID-19 crisis. 15% of MSPs either want to sell their business or wind down and 52% of MSPs need external capital to grow and remain viable or are seeking M&A opportunities. While MSP business model success is predicated on recurring revenue, profitable MSPs drive more than 40% of revenue from non-recurring sources. Pursuit of recurring revenue is not a bad idea as it provides a foundation for future revenue and it is important to business valuations. But data shows that recurring revenue is not the sole indicator of business success.

Recurring revenue can predict earnings thereby reducing risk, however, selling licenses or seats alone does not create a high margin business. MSPs who have moved to predominantly recurring revenue model are more likely to run out of operating capital than they are to reap the benefit of enhanced business valuations or the ability to manage cash flows during an episodic global crisis. Techaisle’s survey data clearly shows that channels with high percent of recurring revenues have been consistently unsuccessful in managing uncertainties in business climate. MSPs that lack margin also lack the ability to invest in improving their capacity to innovate and compete in the long-term and for weathering business interruptions. MSPs that do have meaningful margins, on the other hand, have the ability to invest in capabilities that enable them to expand into new market areas or overcome periods of economic crisis.

A typical pure-play MSP’s 84% to 90% of recurring revenue is spent on human capital, RMM/PSA solutions and other overheads, leaving between 10% to 16% for margins.

The first entry point to cloud for 51% of SMBs has been SaaS (cloud business applications). However, most businesses often obtain only fragments of cloud’s potential benefits because applications deployed usually lack the integration needed to enable a seamless enterprise-wide business process that supports agility, efficiency and growth. Discrete cloud solutions offer immediate relief from problems in many areas but disconnected cloud applications introduce friction. SMBs and midmarket firms are increasingly taking an integrated approach for a zero-friction future. The “rule of 5” refers to sources of complexity in an SMB and midmarket firm’s business related to:

1. Information timeliness/accuracy problems
2. The problem of incomplete information
3. Business process problems
4. Customer service and experience problems
5. Cost and consistency problems

This is where Zoho steps in. Zoho One - Zoho’s flagship cloud-solution, marketed as the operating system for the business, runs on a unified database with a unified data model with data pillars that enable seamless integration to deliver single truth for the business empowering users with a unified experience. A collection of 45+ apps running on a single database architecture and purpose-built on Zoho technology stack - services, software, hardware and network infrastructure - deployed on Zoho’s own global datacenters ensures performance, availability, security and privacy. Clearly, a visionary design architecture, which is being replicated by other CRM and ERP-focused vendors. But Zoho is ahead.

Why Zoho has the right solution to address the “Rule of 5”

Zoho’s secret sauce lies in its interconnected set of data pillars that feed all relevant apps. Each data pillar contains very specific metadata of employees, communications, customer information and opportunities, finance, assets, and inventory. Consistency has a lot to do with vertically integrated systems, a design paradigm that Zoho follows religiously. Although Zoho One is the holy grail for digitalizing business processes, most Zoho customers use a set of nine apps: CRM, Analytics, Books, SalesIQ, Expense, Invoice, People, Social, Inventory.

Zoho has the right solution to address the “rule of 5”.