Techaisle Analyst Insights

The explosion in cloud use has led to considerable increases in the extent of automation within SMBs. Techaisle SMB survey research data illustrates, SMBs are absorbing cloud systems at a very rapid rate: core infrastructure requirements (such as storage and productivity applications), systems of record (e.g., accounting), and systems of engagement (e.g., collaboration/conferencing) are increasingly cloud-based, and the cloud is paving the way for new automation in these areas, and in systems of insight (analytics) within SMBs.

As the adoption of cloud applications increase, there is a pressing demand for hybrid within SMBs. SMBs want to integrate multiple delivery sources into a single unified fabric. They also want to assign workloads to the best (rather than “best possible today”) location and connect data and critical services (notably, security) across platforms. Techaisle data shows that 34% of midmarket cloud workload is on hybrid cloud, 31% of midmarket firms are using advanced hybrid infrastructure with automated links between platforms. In 2021, the percentage is likely to increase by 45%. Techaisle expects hybrid momentum in the SMB market to grow in 2021 and beyond, with a 5X increase potential in the small business segment.

Comparing 2020 and 2021 data shows that although there was tremendous interest in expanding hybrid automation/orchestration in 2020, many SMBs put their plans on hold in favor of emergency responses to pandemic-related requirements. Still, though, the need for capable hybrid architecture and management is only becoming more acute over time.

Founded by brothers Steve and Dimitri Osler in 2005 in Italy, Wildix created the industry's first browser-based Unified Communications and Collaboration (UCC) solution for small and medium enterprises with between 50 and 1000 employees. Deriving 100% revenue from its 1000+ certified channel partners, Wildix grew by 32% YoY with MRR at +274%. Its UCC solution is accessible with a simple click from a browser or via a smartphone App. The solution with webRTC technology has multiple integrations, native encryption, and proprietary hardware to deliver high-quality sound and video.

Techaisle's SMB and the midmarket survey show that Unified communications and collaboration are an IT priority for 68% of SMBs in the 50-1000 employee size segment. Unified communications adoption is likely to increase by 129% in 2021. Although there has been a high percentage of adoption and usage of individual components of communications and messaging, the adoption has been low when combined in one service. It has been a domain of midmarket businesses. Unified communications within small businesses has many inhibitors. At the top of the list are overall cost, lack of IT staff to manage, and lack of interoperability with other on-premise and cloud systems. Besides, similar to most other daily-use technologies, unified communications adoption suffers from internal staff resistance to learn and use. Adopting UCC solutions, like the adoption of most technology solutions, starts with a point of business pain: how can suppliers address an issue that impedes SMB business success.

Wildix is in the right market segment, with the right solution, at the right time. However, WebRTC is not a rarity anymore. Wildix may have been the pioneer, but almost all communication solution providers use WebRTC, including Wildix's main US competitors, Vonage and RingCentral. Wildix focuses on its positioning, not based on products, pricing, and features, oriented towards SMB business issues. It is a conscious shift from being features-oriented to value-oriented, which means understanding business problems, designing profitable solutions, and delivering the value that matches the SMB customer's business issues.

As a result, Wildix is becoming a sales-oriented unified communications solution and has created "boosters" for each step of an SMB's buying journey with a mission to sell growth, revenue, and productivity. All three are the top SMB business issues as per Techaisle's latest global survey. Wildix has over fifty integrations, including sales solutions such as Salesforce, Zoho, SugarCRM, Microsoft Dynamics, Teams, Poly, Freshdesk, HubSpot, InfusionSoft, SAP, and Zendesk.

Over the last year, Wildix has "invested 125,000 person-hours of over 80 developers, QA engineers, and UX specialists in launching new and enhanced products to improve its positioning in the market. WebRTC KITE, Wizyconf, Wizywebinar, x-bees, and x-caracal form the centerpiece of Wildix's sales-oriented UCC solution. The objective is to help SMBs convert strangers into customers turning any website into the core of an SMB's sales efforts.

In all sectors, 2020 was a challenging year – and as a result, 2021 is challenging from a market planning perspective. The disconnect between 2020 and 2019 was so severe that it rendered spend forecasts virtually useless: IT suppliers reacted to shifting market trends in real-time. As we enter 2021, IT product and service suppliers look to create a context for understanding the range of outcomes that the new year may bring. Techaisle's 2021 report series illuminates issues and requirements in the vast SMB market to support that effort. To start 2021, here are our top 10 predictions.

1. Digital inequality will be more important than the digital divide
2. Quest for reinvention, innovation, resiliency will drive bursts of incremental transformation goals
3. The hybrid workplace will require HR focus and drive adoption of workspace, workflow solutions
4. Meaningful customer partners and not trusted advisors will determine supplier success
5. Pragmatism will overtake progressiveness in technology adoption for a future-ready organization
6. Requirements for automation and enhanced IT services will become time-critical
7. Security and risk mitigation will focus on a safe middle ground
8. Systems of insight will move into the analytics mainstream
9. AI will arrive as a capability integrated within other solutions
10. Open source adoption will become an indicator of cloud success

Post-pandemic, as small businesses look ahead to focus on getting back to growth, Cisco has identified the small business segment as a key priority and one of its most significant opportunities. Cisco is committing more resources than ever before to energize and activate Cisco partners' prospects in this space. Cisco identifies its addressable opportunity to be US$30 billion. It is no doubt less than Techaisle's global IT spend forecast of US$230 billion in 2021. But then, Cisco's product portfolio is not all-encompassing, and its definition of small business is on wallet share, any company that spends US$200K or less on Cisco products and services. However, Cisco's is sharpening its focus on the sub-$50K wallet-size small business segment, where Cisco's market share is minimal.

Let us analyze how Cisco is planning to address the small market.