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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.
Anurag Agrawal

Top 10 SMB and Midmarket Predictions for 2021

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

Anurag Agrawal

SMB security and risk management – IT focusing on ensuring integrity of technology infrastructure

Risk mitigation is everyone's business, and SMB IT is uniquely positioning to manage reliability, privacy, and cyber-risk. In most SMBs, IT's role is to provide users with fast and reliable connections to needed systems and data. Increasingly IT is expected to prevent leakage of sensitive information that could harm the business or its customers. A global survey conducted by leading research firm Techaisle found that security solutions (cloud and mobility) are seen as a top IT priority by 75% of SMBs.

There is evidence of the enormous requirement for the defense of an ever-expanding perimeter – but if anything, it understates SMB's focus on cybersecurity. SMBs have deployed, and continue to deploy, increasingly-sophisticated shields to protect against the relentless advance of threat sources attacking businesses of all sizes through their cloud instances, mobile devices and connected users, and new technologies (such as IoT) and core networks and systems. SMBs (and the managed services suppliers they work with) are responding by developing better internal processes and deploying IT security solutions that are frequently enhanced by advanced features rooted in analytics and AI.
Defense against cyber-threats requires a comprehensive approach that spans people, process, and technology: appropriate systems need to be deployed, configured, integrated and continuously upgraded, processes – particularly related to the management of sensitive data – need to be established and embedded in work routines, and staff (all users, including IT) need regular and relevant training. A gap anywhere in this continuum will leave openings that intruders can exploit.
And as daunting as a defense against cyber-risk may be, the reality is that IT's role in ensuring information and infrastructure integrity is extending into other vital areas as well. With businesses now reliant on technology for most tasks' performance, IT must deliver continuous access to systems and safeguard data against loss. And in most environments, it is expected that IT will play a meaningful role in maintaining the privacy of sensitive data. In today's SMB, the IT leader is responding to multiple risk management demands.

SMBs typically start with basic endpoint/user security technologies – and many stop there as well. Even organizations that deploy additional 'shields' often shy away from taking the next step beyond trying to prevent a breach: assuming that a breach will occur and developing processes and deploying technologies needed to minimize the resulting damage and exposure. Some experts also point out that many firms – SMBs and enterprises – don't fully understand their devices (including back-end infrastructure, user devices and sensors), access points, applications, data, and system users. Building this inventory is an essential step in understanding the scope of potential exposure to breaches or losses.
Deployment of security technology will be an ongoing challenge as SMBs attempt to identify, budget for, deploy, integrate, and operate the security shields that are most important to their businesses' operations. In many cases, access to skilled professionals is the most tricky part of this equation. In this environment, SMBs struggle to attract and retain capable security staff members. Increasingly, this is leading to the use of managed security services: Techaisle's global survey shows that managed security, currently used by 29% of SMBs, is in the plans of an additional 44% of small and medium businesses – which will result in a 152% increase in the use of managed security services. 

Privacy is a component of many different SMB business responsibilities: it is critical to compliance, and as a result, to senior executives and shareholders; it is a crucial issue for legal advisors; included in statements made by marketing; and of course, concerning data, it is assumed to be something that is managed by IT. Privacy is a cross-functional responsibility. Sensitive data needs to be classified as such and prioritized for the highest-level security; the security may be an IT function, but the classification needs to be done by the business leaders closest to the inputs and implications of disclosure. Leaks are very often the work of insiders rather than anonymous external hackers. Here, too, while IT plays a role (through monitoring technologies and systems that look to prevent data exfiltration), HR and business unit managers also need to be proactive in preventing privacy breaches.

Security – both the technology and the skills needed to optimize security systems and keep them current, integrated, and complete – is one of IT's most complex areas. To address these complex (and related) issues, SMB IT is needing to develop a portfolio of security technologies and skills that is equal to the task of defending against cyber-threats; develop and continuously execute on business continuity plans; deploy network and access technologies that are aligned with user needs; implement training approaches and management processes that reduce the risk that human error (or malfeasance) will bypass the SMB's technology shields.

They cannot do it in isolation. There is no 'silver bullet' that SMB executives can use to deliver a failure-proof, future-proof approach to risk management. However, by connecting security, privacy, and reliability/continuity – by working with the right suppliers who understand business requirements – SMB IT leaders want to make a real difference to their organizations' regulatory compliance, customer trust, and bottom-line success.

Anurag Agrawal

Cisco makes enterprise-grade small business solutions affordable and easily deployable

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.

Anurag Agrawal

Dell Technologies emerges as a new compelling challenger in the as-a-service market

HPE is not the only game in town. Dell had announced its entry into the aaS arena in 2017 with PCaaS on the client-side. Dell Technologies, the only IT supplier with an end-to-end portfolio, announced its latest foray into the "as-a-service" (aaS) arena with Project Apex, which it hopes will take Dell Technologies' aaS capabilities to the next level. Its objective is to unify Dell's as-a-service and cloud strategies to provide a consistent experience wherever a workload runs - on-premise, at the edge, or in the public cloud. Project Apex aims to simplify customers' and Dell Technologies partners' access to Dell's as-a-service portfolio. The first product, Dell Technologies Storage as a Service (ST-as-a-service), delivers a pay-per-use model and elastic capacity and is deployed on-prem but fully managed by Dell at the initial launch. The key enabler of Project Apex is the Dell Technologies Cloud Console. This single web interface enables customers to manage their cloud workloads and services, available to a few select early customers with a wider roll-out in 2021. Dell has a long road ahead with "everything-as-a-service" as a final destination. After STaaS, Dell is expected to roll out compute-as-a-service (COMPUTEaaS), PCaaS, Data-protection-as-a-Service (DPaaS) and vertical solutions (SAPaaS). PC-as-a-Service (PCaaS) is already available. Apex will enable it to move from a bundled, "leased" offer tying software and services to each device in an annual price per seat to modern, flexible aaS capabilities providing customers with tailored offers of hardware, software and services delivered over the air and accessed/ managed through a single portal enabling customers to seamlessly scale up and down specific to their unique needs and renew effortlessly, with one simple price per month.

HPE may have the lead, but nobody can claim a victory lap as yet. It is too early to declare a winner. Dell is a compelling challenger. It matters to SMBs, Midmarket firms, Enterprise customers and Partners.

Cloud, private cloud, and conventional infrastructure are three parts of a whole. Dell Technologies is currently betting on it by providing simplicity, consistency, and flexibility. However, the current branding of solution offerings of Dell Technologies Cloud Platform and Dell Technologies On Demand will need to merge quickly to avoid digressing and having complex customer conversations on the merits of each. And then, there is the VMware Cloud, which adds to the choice complexity.

Let us discuss why the as-a-service challanger status matters to SMBs, Midmarket firms and Dell Technologies' Partners.

Why the announcement matters to SMBs and Midmarket firms

Trusted Research | Strategic Insight

Techaisle - TA