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Techaisle survey shows Customer-focused Cloud applications top SMB SaaS list

The data contained in Techaisle’s recent detailed survey, US SMB & Midmarket SaaS Adoption Trends, covering over 2500 responses, with a margin of error of +/- 1.94% at 95% confidence level, paints a fascinating picture of the sea change that is occurring within SMBs, and which is reflected in SaaS adoption patterns.

Techaisle was the first to highlight and has very well documented the role of SaaS as a deepening force within SMBs. Latest survey builds on the argument and shows that Customer-focused SaaS applications are at the top of the SMB SaaS list with 76% of US SMBs planning to adopt one or more customer cloud applications in the next one year. This is line with the four pillars of midmarket digital transformation identified by Techaisle. Customer intimacy is one of the pillars.

The vision of customer-centric business has long been beyond most organizations’ operational capabilities (hence, customer segments rather than customer activities), but with increased data/intelligence and the vastly lower cost of processing, storage and applications afforded by cloud, it is becoming more attainable.

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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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SMB Cloud CRM adoption journey points to accelerated digital transformation

Techaisle’s detailed SaaS adoption survey tracked the current and planned buying journey of cloud CRM, ERP and other SaaS applications within SMBs and Midmarket firms. Cloud orchestration & digital automation have become essential ingredients for business transformation. Techaisle analyzed the extent to which use/intended use of each of these cloud applications is connected with other applications and whether they are part of a conscious effort for digital transformation. The two sets of figures below show past and planned CRM and its adjacent SaaS applications adoption journey.

The research reveals a very stark difference between the past cloud CRM adoption journey and the intended path after adopting cloud CRM for the first time. The past adoption patterns were seemingly random reacting to a specific point of pain, but planned adoption is deliberate keeping in view the business issues & IT challenges and taking giant steps towards a connected digital business.

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For SMBs Connected Cloud SaaS applications really matter

Techaisle’s upcoming detailed survey report on US SMB & Midmarket SaaS Adoption Trends shows evidence that connected cloud applications really matter for SMBs. 16% of SMBs have already connected SaaS applications across the enterprise and another 10% are on their enterprise-wide connected SaaS journey. These SMBs are getting the benefits of business growth, enterprise agility, corporate efficiency, collaboration and alignment.

Cloud is the agility platform and SaaS offers a zero-friction option for automating processes. The first entry point to cloud in many SMBs is the purchase of a specific business application by a business user. A typical example is of SMB marketing acquiring a SaaS application to help with social presence management, or sales, as is often the case, acquiring a cloud based CRM to track opportunities. Each of these disconnected siloed SaaS applications do provide real & immediate benefits in terms of enhancing individual productivity and enhancing morale and helping with recruitment of tech savvy new workers. However, where cloud starts to differentiate itself and create meaningful impact for SMBs is in connected automation across related activities and applications categories.

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