Techaisle Blog

Techaisle's SMB & midmarket decision making & buyers journey report confirms that business decision makers (BDMs) – who tend to inhabit the ‘carpeted’ realms of their businesses – are more engaged by discussions about business benefits and objectives than by ‘feeds and speeds’. Cloud business application sales reps will need to develop ‘deep carpet’ language and skills. Techaisle survey data shows that:

• Determining the need for new cloud business applications is the prerogative of business management. The balance of authority within SMBs is nearly 7:1 in favor of business management except in the case of midmarket businesses where it is nearly 2:1
• Neither business nor IT have a clear authority within 29 percent of small businesses and 22 percent of midmarket businesses to purchase new business applications, yet, cloud applications do get adopted driven by need, experimentation, and rogue adoption
• At 32 percent, ad-hoc purchases are more popular within upper midmarket businesses than any other employee size business
• Business management also has authority over determining the needs for enhancements to cloud business applications. The balance of authority within small businesses is 5:1 in favor of business management and 1.2:1 for mid-market businesses
• Neither business nor IT have a clear authority within 17 percent of Small Businesses and 21 percent of midmarket businesses to enhance already deployed business applications, yet, these applications do go through significant modifications and upgrades to better serve the needs of business management
• SMB Business management controls the budget and purchase authority by 8:1 as compared to IT management. However, within the midmarket businesses, the control ratio drops to 2:1 indicating that it is easier to sell cloud technology to small businesses than midmarket businesses since the decision-making units are dissimilar
• In 15 percent of SMBs budget for new business application is usually created at the time of ad hoc decisions for purchase to meet business needs

My days of being critical of Salesforce and their SMB strategy are over. With the introduction of Sales Cloud Essentials and Service Cloud Essentials, Salesforce has once again become relevant for SMBs, especially for the very small (1-19 employees) and overall small business (1-99 employees) segments. For an SMB, CRM is not only – or even primarily – a system used to manage pursuit of new accounts. The most common use of CRM is as a means of organizing customer services. Techaisle SMB & midmarket survey shows:

• 18% of micro businesses (1-9 employees) are using a cloud CRM solution
• Cloud CRM usage within small businesses has increased by 31% in the last 1 year
• 40% of small businesses are planning to use a cloud CRM solution in the next 1 year
• 15% of micro businesses (1-9 employees) are using a cloud Customer services solution
• Cloud Customer Services usage within small businesses has increased by 15% in the last 1 year
• 49% of small businesses are planning to use a Customer services solution in the next 1 year
• 73% of very small businesses (1-19 employees) using CRM are also using Customer services
• 56% of very small businesses (1-19 employees) using Customer services are also using CRM

Sales & Service together for better customer relationship management

Small businesses often struggle with processes around customer relationship management – maintaining contact with past buyers, preparing for renewals or new product upgrades, informing them of service releases, etc. – and a CRM system provides a central means of scheduling and tracking these activities with/for each customer.

The improved visibility resulting from cloud-based sales and marketing automation systems has in turn illuminated the need for a better-integrated customer management and support processes. This insight is prompting increased investment in systems automating customer support tasks.

“IT and cloud orchestration” reflects the reality of a multi-platform world in the era of digital transformation. Techaisle research shows that within the SMB & midmarket segment, orchestrated connected cloud and technology will be the focus of substantial new investment over the next few years. Connected cloud itself forms the basis for an Interwork platform for successful digital transformation and is crucial for competitiveness and growth.

• Upper midmarket firms use an average of 2.5 of the four leading public cloud providers (AWS, Microsoft, Google, IBM) – a true multi-cloud environment
• For 25% of small businesses and 51% of midmarket firms, workloads and data migrate across cloud and/or on-premise platforms
• 89% of midmarket firms state that orchestration tools are critical to their ability to deploy workloads on hybrid platforms
• 46% of SMBs do not know which cloud services to use and in what order
• 47% of SMB/midmarket-focused channel partners are offering orchestration but only 24% are delivering, but 55% are expecting substantial revenue increases in the next 1 year
• Use of orchestration is poised for growth as 40% of midmarket firms and 15% of small businesses are implementing cloud connectivity

Using a large number of on-premise technology as well as cloud platforms is escalating complexity beyond reasonable manual management limits. In response to this conundrum, many SMBs & midmarket firms are turning to orchestration as a strategy for optimizing use of multiple platforms and multiple technologies (topic of another blog another time). But help and guidance are missing. Even Techaisle’s latest channel partner study shows that although 47% offer orchestration but only 24% are delivering, and that also partially. Their vendor partners are not helping because of intense focus on enterprise segment.

In the quest for digitalization and digital transformation there has been ad hoc adoption of technology – both cloud & on-premise - as responses to paint points within SMBs.

Techaisle survey shows:

• 73% of US SMBs are using at least one SaaS application, up from 27% in 2011
• 51% of global SMBs begin their cloud journey with SaaS
• Global SMB spend on SaaS in 2018 will be US$40 billion
• Cloud is the agility platform & SaaS is a zero-friction option for automating business processes
• 74% of SMBs achieved increased business agility with connected business processes