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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.

Within SMBs the larger cloud trend is towards deeper use of SaaS

Techaisle’s cloud adoption trend data shows that within US SMBs the SaaS penetration increased from 27% in 2011 to 58% in 2014 and reached 73% in 2016. It is expected that the figure will reach 94% by the end of 2017. Unweighted data analysis shows that SaaS adoption within US SMBs is already at 86% and will likely reach 96% adoption within the next one year. Even at the worldwide level, survey data shows that 76% of cloud-SMBs are currently using SaaS applications.

This view of SaaS as a deepening force within the SMB market raises an important, related question: what is the current benchmark for SaaS within SMBs? How many SaaS applications are in use today? And how many new applications are expected to be added?

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Survey shows US Small businesses forecast to purchase 11m PCs in 2017

Techaisle’s US SMB survey data shows that 44% of US small businesses are planning to purchase at least one PC in 2017. If all keep to their PC purchase plan, then US small businesses will likely purchase 11.1 million PCs in 2017. However, if the US economy falters and small businesses feel unexpected growth pressures then the number may fall to 7.1 million PCs. The most likely US small business PC purchase scenario for 2017 is 8.4 million units.

The plan to purchase penetration is massively up from 34% in 2015 when only 2.6 million PCs were purchased by small businesses. The 2016 actual PC purchase data is still being analyzed by Techaisle.

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The Great Recession, Consumerization, and the birth of BYOD trend, more so in SMBs

The ‘bring your own device’ (BYOD) trend has its roots in two significant events that challenged corporate IT behavior. The first was the “Great Recession” of 2008-2009. The recession affected the entire economy, and IT was not spared its shadow. One key result of the recession was the interruption of regular refresh cycles. Prior to the recession, many businesses replaced endpoint devices (then, almost exclusively PCs) on a regular cycle – e.g., one third of devices would be refreshed every year, and the devices themselves would be used for three years, dividing the capital cost of keeping endpoint technology up-to-date across multiple annual budgets. The cash crunch that hit most businesses in the recession prompted many to forego refresh cycles, replacing individual units only when they failed. This approach did conserve scarce resources during the downturn, but when stability returned to the economy, CIOs realized that a large proportion of corporate endpoints were due for replacement – and CFOs realized that they lacked the CAPEX funds needed to refresh the entire endpoint fleet.

At the same time, another trend – Consumerization – was sweeping through the IT industry.

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Survey shows SMBs under invested in Cloud security

Techaisle’s survey of over 1,100 US SMBs, covered in US SMB & Midmarket Cloud Security solutions adoption trends report, shows that 41% of SMBs recognize that cloud poses a risk to their data. It resonates most with small businesses (1-99 employees) and is one of the top three issues identified by midmarket (100-999) respondents. However, to a large degree, these firms also believe that they are prepared to address cloud security issues. 46% of midmarket firms report that they are in better shape than their peers.

Survey data also shows that 72% of 1-9 employee microbusinesses, and 62% of small businesses overall, have not layered any security products on top of their cloud environments. They are entirely dependent on the security features embedded in their cloud environments. Even within the more sophisticated midmarket (100-999 employees) segment, the survey finds that only 20% of firms are currently using discrete products/services to secure their cloud environments, a finding that is ameliorated somewhat by the 70% of midmarket firms that are currently implementing these solutions.

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