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    SMB & Midmarket IoT Adoption Trends
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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.

Survey shows SMBs using analytics and Big Data are the lead adopters of IoT

Techaisle survey shows that a strong link between analytics, Big Data and IoT. The connection between IoT solutions supporting process analysis and analytics and Big Data is not lost on the SMBs included in the Techaisle SMB and midmarket IoT Adoption survey. Findings from the research reveal that there are strong links between analytics/Big Data use and intentions and IoT use and intentions and sophisticated SMB use explicitly ties these two together.

Consider the data presented in the figure below. The top left quadrant of the tables shows the proportion of current analytics and Big Data users who have also deployed IoT; at 37% and 47% respectively. There is evidence that current users of analytics and Big Data are the lead adopters of IoT, a finding that is further supported by the fact that 53% of current analytics users and 45% of Big Data users are planning to use IoT in the near term, which will bring the proportion of analytics/Big Data users who are also deploying IoT to about 90%.

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18 percent of US SMBs currently using IoT are in one of two advanced modes

Techaisle’s US SMB & midmarket IoT adoption trends data survey shows that use of IoT today may be low within small businesses generally, and particularly within microbusinesses, it is more widespread within midmarket firms, with roughly 30% reporting that they are currently using IoT. As is often the case with emerging technologies, production-grade usage levels are not yet quite as high as the data would appear to suggest. Detailed perspective on SMB use of IoT is gained by examining the nature of current deployments and the survey finds that there is a five-level IoT progression.

As the figure below shows, just over half of SMBs who are using IoT today are at one of the two bottom levels: they either have a limited number of sensors feeding isolated systems, or are using IoT devices to enable remote monitoring/service/control. SMBs who reported that they are using IoT to “provide basic information” or are in an “ad hoc pilot” are included in these first two levels.

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US enterprise Cloud survey shows shifting strategies

Techaisle’s US Enterprise Cloud survey conducted with senior IT decision makers shows that Cloud actually opens the doors to increased IT investment. For all the trepidation about the negative impact of cloud on IT budget and authority, data from the Techaisle US upper-midmarket/enterprise (1,000 employees to 10,000 employees) cloud survey indicates that advanced use of cloud actually drives higher IT spending. In 92% of US enterprises, IT has a voice on the board and helps drive the direction of the business rather than business deciding IT needs. There is also a great deal of near-term opportunity for a variety of SaaS providers in the US enterprise market: ten diverse application categories are included in near-term plans of 37%-41% of respondents.

Cloud adoption maturity & IT staffing impact

Survey data shows that cloud maturity does not correlate to reductions in IT staffing levels. The most and least mature cloud user segments have an average of 19.0 and 20.3 users per IT staff member, respectively. The two groups between the extremes have an average of 16.6 and 16.2 users per IT staff member. The roles may be different, but the survey data finds that absolute employment in IT shops does not decline with cloud use.

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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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