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.

Approaching the SMB with IoT solutions – internal primary deployment leaders

How should suppliers looking to target SMBs with IoT solutions set their strategies? Techaisle believes that strategy starts with the buyer, which in this case, means understanding who the buyer is, what factors are motivating purchase decisions, and how much is available for spend on IoT. From a deployment perspective, IoT straddles an interesting line: it is technically complex, which would argue for deep IT involvement, but it – at least, in more sophisticated solutions – addresses business process issues that are most important to business managers, which would argue for deep line of business (LOB) involvement. What do we see with today’s SMB IoT adopters?

Data collected from the Techaisle SMB IoT Adoption survey indicates that in these early days, responsibility for IoT deployment in small businesses is divided relatively equally between IT and LOB management, while in midmarket organizations, IoT is most often the responsibility of IT group.

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Survey data shows Cloud Channel partners operating between the raindrops

The Cloud channel partners are operating between the raindrops. Techaisle’s channel survey trend data clearly shows that the sources of competition and channel conflicts for cloud business is increasing thereby creating untenable conditions for many channel partners. From 2013 to 2017, the percent of channel partners experiencing competition from vendors has gone up by 15 percent whereas from distributors it has increased by 55 percent.

At a high level there are three types of channel conflict:

  1. Competition between the vendor and its channel partners,
  2. Competition between distributors and channel partners, and
  3. Competition between similar types of channel partners (e.g., VAR/VAR).

Figure below shows the trend data from 2013 to 2017.

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Europe and US SMBs - Managed services support growth and savings

US and European SMB buyers believe that managed services contribute to both cost savings and to business growth. As the figures below show, managed services is seen as helping buyers to achieve lower IT costs, greater control over IT environments, and higher performance with less IT downtime; managed services also helps businesses to “maintain a lean business environment” and to provide predictable performance, user experience and cost. On the growth side of the equation, superior (relative to internal options) MSP responsiveness to IT problems is seen as a means of achieving better productivity; MSPs are also seen as helping SMBs to maintain focus on core business competency, staying abreast of technology changes and providing support for business continuity and disaster recovery.

54% of US SMBs and 68% of Europe SMBs say that managed services help improve bottom-line, contribute to profitability and reduce costs. On the flip side, 46% and 32% respectively state that they view and have experienced managed services as a technology contributing to growth and revenue. A more detailed look at the data underlying this summary analysis illustrates the many benefits that SMBs obtain from managed services (and MSPs).

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Techaisle data shows suppliers incorrectly addressing the SMB Cloud market

Cloud is clearly established within the US SMB market, in a way that is unique in the global context: nowhere else have the vast majority of SMBs leapt into the cloud. Cloud is also gaining acceptance in Asia/Pacific, Europe & even in Middle-East, regions where Cloud is being seen by SMBs as solving real-world business problems. But most suppliers are peddling their technology assets, focusing on non-viable channel relationships & showcasing wrong-sized solutions for workloads that have very short acquisition & deployment time window.

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