We all know that video conferencing adoption is on the rise among SMBs. Collaboration technologies such as Video and Web Conferencing will increasingly be important to SMBs to satisfy their priority to make employees more productive. While these solutions have been around for a long time we believe that broad adoption among SMBs is upon us as evidenced by the priority assigned to such technologies versus the current level of penetration. As per Techaisle’s research data, currently in the US there are nearly 75,000 SMBs that use video conferencing and 790,000 that use web conferencing.
There are obviously many solutions that SMBs can take advantage of ranging from hosted to onsite solutions. Key players such as Microsoft (Live Meeting/Lync), Citrix (GoToMeeting) and Cisco (Webex) have great brand and mind share in the SMB space. However, there comes a time in the life of an SMB, depending upon its vertical or the role of the user, when high-quality, easy-to-use, any-to-any video connections’ based video conferencing becomes too important to ignore. This is where Vidtel steps in.
Vidtel is a cloud-based video conferencing service for any-to-any video connections. Its MeetMe offering allows multiple conferencing participants incredible interoperability, that is to say, it allows for users to seamlessly invoke a video conference, connecting video phones, PCs, tablets, room systems, smartphones and devices using SIP, H.323, Skype or GoogleTalk.
Vidtel is a small but growing organization founded by dynamic entrepreneurs who are focused on bringing affordable high-quality cloud-based video conferencing solutions to SMBs. To that extent, Vidtel has also recently partnered with Vu TelePresence that allows both Vidtel and Vu to gain from each other. Vu is able to bring MeetMe capabilities to its customer base and Vidtel stands to gain from Vu’s already established market presence.
We tried Vidtel’s MeetMe service. It seemed quite simple to initiate and conduct a video conference. To initiate a meeting, a Vidtel SMB customer with a MeetMe account simply provides the meeting room dial-in information to other participants, as one would with an audio conferencing bridge and set up a meeting time. For example, if the meeting were in room 2002, one Skype user would be asked to add Vidtel.2002.1 and the other Vidtel.2002.2 to his/her Skype contacts and dial that contact from either a tablet, mobile or PC/Mac. SIP users would dial
A question that often arises is, what about support for SMBs? Vidtel provides level 1-4 support via video/phone/email for SMBs directly and levels 2-4 for resellers and wholesale providers who own the SMB customer relationship.
Vidtel offers a tiered pricing structure, from a low of US$199/month to US$599/month, depending upon the number of participants, standard or high-definition video.
SMBs who are seriously debating about using multi-point, any-to-any, high-definition video conferencing capabilities should check out Vidtel.
Anurag Agrawal
Techaisle
Techaisle Blog
With its latest announcement, Intuit has demonstrated that it is bringing data-driven insights to small businesses, sole-proprietors; insights that were previously only available to large enterprises. This information should empower small businesses to compare themselves against benchmarks and thereby effect changes in their organizations.
It certainly places in the hands of Intuit’s small business customers, power of the data. Both the Employment and Revenue Indexes are updated monthly by Intuit which is far more often than government stats and take a snapshot that is more targeted and pertinent to small business owners. They could use it as a signal for whether it’s time to hire, cut back or increase employee salaries.
As Techaisle had mentioned in its own press release on big data on April 26, 2012, data analytics is equally relevant for small businesses. 12 percent of small businesses using business intelligence are interested in big data analytics. However, they are looking for an IT vendor or partner to collect, collate, and analyze big data and present to these small businesses as a resource, in other words, democratization of big data. The collected data is an aggregation of information being created by other small businesses within the same vertical segment or employee size category. Intuit to my mind, just did it.
Timing by Intuit could not be more perfect.
Anurag Agrawal
Techaisle
Intuit today announced it has entered into a definitive agreement to purchase Demandforce for approximately US$423 million. Demandforce has been primarily focused on SMB segment offering products and services to help SMBs navigate and thrive in connected economy by automating their marketing and customer communications, building and maintaining a strong online reputation and raising their profile with their local consumers.
Speaking on the acquisition, Kiran Patel, EVP and General Manager, Intuit Small Business Group said, “Demandforce sits at the sweet spot of Intuit’s SMB customer base and is consistent with our goal to help our customers save time and make money. With a compelling customer value proposition, SaaS model and high growth profile, Demandforce will provide opportunities to grow Intuit’s customer base and revenue per customer over time.”
Analyst Speak
Intuit is continuing to build its capabilities in cloud application areas focused on alleviating the pain points of small businesses. Based on surveys conducted by Techaisle over the last 3 years, improving sales and marketing has shown up consistently as the top business pain point of small businesses. Moreover small businesses are increasingly struggling to grow their revenues, retaining and positively connecting with their customers in a virtual world. Techaisle survey data shows that nearly 45 percent of small businesses are not sure how social networking tools can help promote their business. 68 percent of small businesses mention that “their business success depends upon a strong relationship with the customer, providing goods and services highly customized to their needs and being responsive to their demands”. These same small businesses are gravitating towards social media campaigns (48 percent), email marketing initiatives (68 percent) to generate new customer leads and maintain existing ones.
Demandforce acquisition certainly helps Intuit in extending its existing offering of website services. It rounds off the full suite from “get found” to “increase exposure” to “extend communications” to “consolidate presence”.
Beyond the capabilities of Demandforce, the acquisition brings into Intuit’s fold many different small business vertical industry solutions. These verticals are typically ignored or only addressed by web-hosting providers. They constitute a very large part of the SMB universe but with a dichotomous adoption of technology. For example, salons and spas use very limited technology but still want to increase their customer base beyond the usual “word-of-mouth”. On the other hand wealth management businesses use advanced and emerging technologies but strongly desire customer expansion, communication nurturing, feedback mechanism and certified reviews to positively impact their business.
Success of the acquisition will be dependent upon Intuit’s ability to integrate Demandforce with its web services, back-end systems such as Quickbooks and cross-sell across both Demandforce and Intuit customers.
It is a move in the right direction.
Anurag Agrawal
Techaisle
Convincing conference, unified messaging from all executives, substantial customer success stories including SMBs, considerable partner alliance conversations, convergence showcase, expanding geographic footprint, emerging technologies, mid-market design point, and end-to-end solutions story. What can I say?
At the recently held Dell Annual Analyst Conference, in Austin, the centerpiece of messaging was Dell’s relentless pursuit to be an end-to-end IT solutions provider and a trusted partner. Michael Dell in his conversation with the analysts proved that Dell has changed the conversation from product to services.
“Many new change vectors are going on - Data centers are becoming server centric/compute centric, networking is being combined with computing and storage and security are becoming one – Dell has the ability to understand where the puck is going”, said Michael Dell. To that extent Dell is busy building products and solutions from which customers can capture value.
Dell has made 20 acquisitions since 2008 to build a solutions delivery capability. Its R&D, which is increasingly being focused on storage, server, security and networking convergence went up by 40 percent in the last year alone. A key aspect of the strategy is to develop converged solutions that include storage, security, servers and wrapping it all together with services and deliver end user solutions that help customers compute in environments with pervasive data access.
Since his return as CEO, Michael Dell has steadily moved Dell into new areas for higher growth and profitability. Although Dell’s revenue has remained within a narrow margin, growing by only 1.5% from 2008 to 2012, its net income after taxes has grown by 18.5% within the same time period. Dell today has greater diversity in its solution offerings and broader geographic footprint. Both storage and security are higher margin products and with the acquisition of EqualLogic, Compellent and recently SonicWall, Dell’s margin story continues to improve.
Dell’s end-to-end solutions story is also beginning to look complete with portfolio having evolved from PCs and servers to services. Dell’s software portfolio is not where it should be but Dell is building out its capabilities for on premise software, cloud applications and software embedded in hardware. Consistent with the overall theme it wants to offer software solutions that are easier to buy, easier to use and easier to extract value.
Even the channels organization is perfectly aligned and focused on continuing to grow its PartnerDirect program that was started five years ago and is now approximately US$14 billion business for Dell. The channel’s organization headed by Greg Davis is continuing to make its rules of engagement very partner friendly and empowering and training its channels to provide value to their customers. Greg is ensuring that there is consistent
channel engagement across both mature and emerging markets with deal registration, compensation neutrality and executive priority. With over 135,000 training modules delivered in the last year alone it aims to provide simplicity, enablement and a strategy to win datacenters together. To take advantage of new social media networking platforms, Dell has also launched a new social media training program for its channel partners. The training program, developed based on Dell’s own experiences, provides its channel partners access to a number of useful social media tools and tips, including links to all of PartnerDirect’s social media platforms, a Q&A forum, registrations for both a live virtual training session and on-demand refresher courses.
Executing on its vision
Dell’s vision is being driven by five key market dynamics:
- Emerging markets growth
- Consumerization of IT
- Explosion of data
- Alternative computing platforms
- Corporate IT complexity
Dell has not only been able to integrate the businesses it has acquired but also has successfully scaled them. Dell Boomi, a middleware for cloud, originally acquired for its ability to bring cloud integration to SMBs, is equally at home in large enterprises. A recent example is OneWorld Alliance which has implemented a new information technology (IT) hub based on Dell Boomi AtomSphere cloud integration, designed to substantially reduce complexity, cost and time involved in linking new member airlines into the alliance.
SMBs' "CIO in a box"
Whenever an IT vendor presents customer stories I look for sincerity in the customer’s dialog and contribution of the IT vendor to customer’s success. Current Motor, an Ann Arbor, Michigan based SMB stole the show and my heart. With only 12 employees it uses full end-to-end solutions from Dell in the most interesting yet fundamental ways. Remember that it is only a small business; nevertheless Dell put a team together to bring to fruition integration with salesforce.com and digital dashboard enablement of Electric Scooters six months sooner than expected. Solutions used – mobility, cloud, hardware, software, services. As Laura Flanagan, Executive Chairman, Current Motor put it, “Dell is her CIO in a box.” And it all started with Laura approaching Dell with a business pain point. The result -- sincerity in dialog and value-add by Dell.
As Dave Johnson, SVP, Corporate Strategy said in his presentation, the “heart of the customer is the CIO.” No worries, SMBs, if you do not have a CIO, Dell can play that role for you.
Next Steps for Dell
- The entire Dell team has to work harder to get its messaging and capabilities heard by its current and potential customers because I feel Dell’s end-to-end
solutions story has not yet reached the crescendo it deserves - By focusing on mid-market design point Dell should not forget that small businesses have different needs and the last thing they want is a scaled-down version of product meant for mid-market businesses. Other IT vendors have tried in the past with zero to limited success
- Dell should formulate and articulate its mobile strategy beyond its planned introduction of tablets and smartphones, especially for the SMB segment that are adopting mobility solutions faster than enterprises
- Technology pain points have now overtaken business pain points for SMBs. Dell can be that unique IT Vendor that helps SMBs sort out and identify relevant technology options (cloud, mobility, infrastructure, managed services, virtualization, social media, business intelligence, marketing automation) by becoming a trusted advisor and business consultant
Anurag Agrawal
Techaisle
