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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.

SMB top 10 technology predictions: 2016 and beyond

This is a two part blog article. The first part, published earlier, reviewed the predictions we made for 2015 and the second part, below, focuses on outlook for 2016 and for the longer term (2017 - 2020).

Top 10 Predictions for Year 2016

1. 2016 will see even more intense emphasis on “CIA-Plus”
IT Suppliers will begin to align their offerings with Cloud, IoT, and/or Analytics; products that do not address end-user needs in these areas will be positioned as infrastructure and integration services needed to capitalize on these technologies. This trend, like hybrid IT, will continue into 2017. In 2016, Cloud and Analytics will remain among the top five IT priorities of SMBs and midmarket businesses. IoT will inch its way up into the priority list, though adoption will remain limited.

2. Rise of IoT will be constrained by a lack of real-world examples
From a buy-side perspective, the rise of IoT will need to be fueled by real-world examples showing the benefits of automating tasks and processes within IT and in other sectors. Within the SMB community, we expect sporadic implementation and a lack of concerted effort towards creation of IoT strategy, even though IT suppliers will continue to push forward their solutions hoping to remain top-of-mind in order to claim leadership in this emerging space. Each IT supplier will create its own solution set causing decision and adoption inertia, despite the wave of innovation that we expect to see emerge from the smaller & more agile IoT providers that are able to more easily align IT expertise with real life solutions. Experienced consultants and system integrators in particular will hold sway in matching SMB adopters with suppliers.

3. IoT supplier success will be determined by ecosystem management
On the sell side, the rise of IoT will be accompanied by an intense wave of interest in ecosystem management. It is difficult to buy or sell a “box of IoT”, though providers will claim to provide complete solutions. Parenthetically, this constraint is not limited to IoT. While it is possible to sell a “box of cloud” under the right circumstances, only AWS really manages to do so. And while one can sell a “box of analytics”, the boxes themselves come in a lot of different shapes and sizes. To meet SMB and enterprise buy-side demand for IoT, sellers will assemble coalitions that provide the many products and services that comprise an IoT solution. This will make alliance management a key success factor in the marketplace. The last time alliances determined market leadership; SAP became the global standard in ERP. Niche value added reseller may find a new source of success in IoT.

4. Business transformation will continue to elude analytics users
Analytics users will find that they are not achieving the expected benefits, prompting divergent responses. Some SMBs will find that analytics has not been transformative, and will blame the technology; others will look to move past descriptive and diagnostic views, piloting predictive or prescriptive initiatives. One of these responses is clearly more sensible than the other, but that does not mean it will be universal, at least in 2016. Focus on visualization will increase (mine is better than yours), on how the technology can solve business issues and challenges for SMBs and midmarket customers. Simplified implementation of customer and social analytics will be key drivers of adoption.

5. “Hybrid” will be used more often in conjunction with “IT” than “cloud”
User organizations will accept the notion that their focus on cloud needs to evolve into a focus on hybrid IT, as firms realize that their platforms and management scope must encompass on and off-premise systems. Truthfully, there is still a lot of work to do in cloud adoption. But the nature of the discussion has changed from “what and how do we move to the cloud?” to “what do we do to build an integrated, manageable infrastructure?” In 2016, there will likely no longer be an infrastructure debate about use of cloud, but there will be an important emerging discussion around managing hybrid IT.

6. Collaboration will drive “silo” to the realm of four-letter words
Anywhere, anytime also means any type of collaboration. SMB & midmarket businesses will look for unified shared workspaces that allow employees to enter into the workspace from any entry point to work together, collaborate and interact. Collaboration solutions cannot be deployed on stand-alone platforms – they need to be viewed as a framework for integrating multiple capabilities, native to multiple applications.

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2015 Predictions Review: did IT live up to the hype in 2015

December has traditionally served as the occasion for the publication of New Year forecasts. It’s understandable that we want to look ahead to the sources of opportunity that lie ahead. But in the business world, December also marks the beginning of the review season. And while detailed forecasts focus on the next twelve months, the planning horizon needs to look a little further, so that tactics provide support for business strategies, rather than simply delivering a series of course adjustments.

This is a two part blog article. The first part, below, reviews the predictions we made for 2015. Second part will focus on outlook for 2016 and for the longer term.

A look back – what was it we said was right around the corner, again?

Here are the issues we highlighted, “Ten predictions for 2015 – and five issues to keep an eye on for 2016 and beyond” and how we think we did in our prognostication.

The Top 10 for 2015

1. Hybrid arrives – not as a strategy but as the result of many discrete decisions

With the benefit of today’s perspective, we might fairly say that in 2015 and for several more years to come, a more apt description of hybrid is journey rather than destination. Digging into the detail, though, we believe our prediction that “an ability to manage hybrid infrastructure will become a key corporate IT requirement in 2015” has been borne out by the focus on tools and strategies (ranging from Docker to Agile) that we saw throughout the year. In Techaisle’ SMB Cloud adoption studies, there was a sense of growing ubiquity in the usage and plans for private, hybrid and public cloud. Use of hybrid cloud continued to increase as both a conscious strategy and as a reaction to use of both public and private resources within a single infrastructure; by the end of 2015, two-thirds of companies with 100-999 employees were using hybrid models.

2. Collaboration becomes a much bigger concept

In 2015, collaboration began to expand beyond file-sharing to become a necessary tool for driving decision-based agility, fostering innovation and extending customer intimacy. Collaboration is a process rather than a discrete outcome. Our key notion that collaboration “extends beyond the corporate staff (and as a result, beyond large enterprises) to include customers” clearly did reflect strategies and investments in 2015. Within the SMB segment collaboration is increasingly becoming a central component to virtually all business activities rather than a means to enable connections between discrete tasks. Other changes in this area will further reshape collaboration, but you’ll need to refer to the “forecast” part of the blog for that discussion.

3. Collabmobilicloud becomes a management reality

The core concept explained that despite vendor tendency towards defining collaboration, mobility and cloud as separate domains, both enterprise and SMB users have started viewing them as integrated components of business solutions. The user belief that collaboration, mobility and cloud should all be attributes of modern applications has become clearer, and even suppliers are starting to recognize the importance of an integrated collabmobilcloud approach.

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IT security framework for SMBs

SMBs are not only increasingly dependent on IT – they are dependent on increasingly-interconnected systems, which are in turn open to an ever-expanding population of devices and access points. The volumes and value of data contained in these systems continues to grow, which both increases the potential damage associated with a breach, and attracts heightened attention from hackers. Techaisle’s SMB survey data finds a disconnect between security policy and security practice that creates the potential for poorly-coordinated approaches to security – an uncertainty that is magnified by shadow IT.

In Techaisle’s latest survey of SMBs, only 13% said that they were fully prepared and confident to handle security challenges, especially mobility security. The remaining 87% were partially prepared, unprepared or unsure. These are very sobering statistics.

Techaisle’s SMB Shadow IT survey data shows that over 70 percent of applications and nearly 60 percent of IT infrastructure related spend and decision authority lies outside of IT. These expenditures are made without the IT department’s approval, guidance, or in some cases, even without IT’s knowledge. 

Security is becoming a more critical component of business rather than IT strategy.

SMB IT security managers should petition for senior executive support which will help to build an approach that safeguards the organizations, users and data, in a framework that is flexible enough to respond to emerging opportunities and threats.

SMB Mobility increases threat perimeter

The problem with mobility (like cloud) is that it changes the concept of “perimeter.” Intruders don’t need to batter through closely-guarded walls to gain access to the interior of the network; they can ride through a permeable configuration on the backs of mobile devices that have been granted access to the precious applications and data that live in the interior of the organization. It is as if the castle walls and drawbridge were replaced by windows and breezeways offering access to visitors arriving from all directions.

With mobility, the SMB user community becomes a ubiquitous and shifting source of portals through the perimeter. As a result, IT doesn’t need to only defend against recognized foes: it needs to protect the corporation from breaches that can result from the actions of its own workers, and needs to protect the same data that it delivers as an essential component of support for the mobile workforce – the workforce that is viewed by senior management as making compelling contributions to the top and bottom-line success of the business.

SMBs should consider a four-layer security framework model for deployment:

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IBM – motivating midmarket firms to think strategically about cloud security

A blog “Big Data in the Cloud - an ideal solution for SMB banks” that we wrote touched a nerve, in a good way. Post blog, in our several discussions with both large and community banks we find that cloud objection is largely based on the size of the bank. In addition, regulatory compliance concerns are huge as most midmarket businesses and banks in particular spend a lot of money being compliant. With the move to cloud they want to make sure that the investment extends to the cloud without being exposed to security breaches and from a regulatory point of view.

What is clear is that migration to cloud is forcing businesses to think differently about security, in very standardized ways because the delivery of cloud service is standardized. It is also pushing them to automate security because utilization of cloud is dynamic, elastic, automated and fluid thus making manual or even semi-automated security processes unmanageable. However, this approach creates multiple vulnerabilities. The bad guys themselves are taking advantage of all the cloud technologies and are becoming a lot faster and more automated than the businesses. Security therefore becomes a moving target and cloud security is a perfect opportunity for businesses to improve defenses and reduce risks.

While most midmarket businesses are reactive, hunting after point solutions when something goes wrong, others are taking a proactive approach to risk and threat so that they have more fluidity in the way they respond when a threat occurs.

IBM security is on a path to help businesses think differently about cloud security. It is moving the businesses along a maturity curve from reactive to proactive to optimized. Optimization refers to the difference between being able to weather an attack and continue with business and how much time could one can shave off and how much cost could be optimized for being able to respond to that event in reducing risk.

As Sharon Hagi, Global Strategist and Senior Offering Manager, IBM Security, said in an interview “the state that IBM is advocating goes beyond reactive or proactive. We call it the optimized state where organizations use automation coupled with predictive security analytics to drive towards a higher level of efficiency. By mixing the elements of proactive approach, automation and security intelligence businesses can actually get to the point where they are a lot more efficient and they actually reduce time and cost to respond to risk.”

IBM is differentiating and trying to distance itself from others in a number of different ways. IBM has a managed security services practice with ten plus security operation centers around the world servicing 133 different countries with 6,000 security professionals and its research lab X-Force provides actionable threat intelligence and insights for business and IT leaders. IBM monitors 10,000 security customers globally, 70 million end-points with 20 billion events per day, has made enormous investments in security intelligence analytics platform that allows it to distill information, identify threats and respond quickly.

But for banks and businesses that come under deep regulatory scrutiny, security goes beyond managed services and is a major psychological barrier to cloud adoption triggering a high level of fear-factor. Recently, we posed a fundamental question of “Why do you want security” to banks and midmarket businesses in general. The responses received could easily be bucketed into five categories:

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