• SIMPLIFY. EXPAND. GROW.

    SIMPLIFY. EXPAND. GROW.

    #SMB #MIDMARKET #CHANNEL
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  • DIGITAL TRANSFORMATION

    DIGITAL TRANSFORMATION

    Delivering Connected Business
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  • SECURITY RESEARCH

    SECURITY RESEARCH

    SMB & Midmarket Security Adoption Trends
    LATEST RESEARCH
  • MANAGED SERVICES RESEARCH

    MANAGED SERVICES RESEARCH

    US SMB & Midmarket Managed Services Adoption
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  • CLOUD RESEARCH

    CLOUD RESEARCH

    SMB & Midmarket Cloud Adoption
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  • CHANNEL PARTNERS

    CHANNEL PARTNERS

    Transformation or Consolidation
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  • COVID-19 IMPACT

    COVID-19 IMPACT

    on CHANNEL PARTNERS
    FULL ANALYSIS
  • COVID-19 IMPACT

    COVID-19 IMPACT

    on SMB IT Spend Growth Rates
    FULL ANALYSIS
  • FEATURED INFOGRAPHIC

    FEATURED INFOGRAPHIC

    2020 Top 10 SMB Business Issues, IT Priorities, IT Challenges
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  • 2020 SMB PREDICTIONS

    2020 SMB PREDICTIONS

    Top 10 SMB & Midmarket Predictions for 2020
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  • 2020 CHANNEL PARTNER PREDICTIONS

    2020 CHANNEL PARTNER PREDICTIONS

    Channel Partner Predictions for 2020
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  • NEW SMB CUSTOMER RESEARCH

    NEW SMB CUSTOMER RESEARCH

    PC and software purchasing trends
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  • WHITE PAPER

    WHITE PAPER

    SMB Path to Digitalization - Prologue and Epilogue
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  • ANALYTICS & ARTIFICIAL INTELLIGENCE

    ANALYTICS & ARTIFICIAL INTELLIGENCE

    SMB & Midmarket Analytics & Artificial Intelligence Adoption
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  • BUYERS JOURNEY

    BUYERS JOURNEY

    Influence map & care-abouts
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  • SAAS RESEARCH

    SAAS RESEARCH

    US SMB & Midmarket SaaS Adoption
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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.

COVID-19 Impact on SMB Tech Investments

Precision is impossible but agility and resilience are realizable. In every crisis, there is opportunity. If history is any indication then the SMBs are well-placed to narrow the banks of uncertainty. With integrative thinking SMBs will be adept at maneuvering around the edges of flames that have been fanned by COVID-19. 

Over 12 years of Techaisle tracking data paints a fascinating picture in which SMB business goals established by unexpected challenges drove new IT priorities. Klaus Schwab, Founder, World Economic Forum observed that, "In the new world, it is not the big fish which eat the small fish, it's the fast fish which eat the slow fish." SMBs are the fast fish as compared to enterprise segment.

After every downturn, SMB IT spend has rebounded higher and faster than overall (consumer + SMB + enterprise + government + education) IT spends. Techaisle had published its forecast scenarios here.

But the questions remain. Is today the same as the past? Will the future be different? We know that to be uncertain is to be uncomfortable, but to be certain is to be ridiculous. There are already many discussions and surveys conducted by various firms on today’s devastating impact on SMBs. At Techaisle we agree that SMBs are currently desperately operating between the raindrops but our objective is to square the circle, to simplify the path forward for IT vendors and channel partners and see past the blind corner.

To understand the impact of COVID-19 on future of IT we conducted a survey of N=2427 SMBs in several countries. Regardless of the uncertainty, over 50% of SMB business leaders in Asia/Pacific and some countries in Europe are optimistic and are confident about a V-shaped recovery as compared to US and UK SMBs who believe in more of a U-shaped recovery.

Download free Techaisle Take document to understand:

  • Why agility and adaptability will accelerate recovery for SMBs Worldwide? Global SMB IT spend vs Overall IT spend vs GDP growth rates
  • Why SMB technology and business alignment will result in resiliency, agility and adaptability?
  • What will be post COVID-19 impact on business and IT operations? Uncertainty and status quo.
  • What will be the impact on tech investments? Increase, decrease, delay, no change
  • Will digital transformation be the agility enabler for SMBs?
  • What is the current non-technology related work-from-home challenge for SMBs?

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COVID-19 Impact on Global SMB and Midmarket IT Spend

The Covid-19 threat to the global economy and to the IT industry is potentially as bad as, or worse than, the health impact. A global workforce that cannot collaborate effectively cannot deliver products that rely on timely supply of components from far-flung suppliers, and cannot create and implement complex solutions. The necessary isolation used to contain Covid-19 has a devastating effect on economic activity. Manufacturing does not work when people don’t. Chinese exports fell by 17.2% in January/February of this year. The impact on solutions is harder to quantify, but may well be even greater. However, with the slowing number of new cases in China, 80% of manufacturing plants have restarted with about 60% capacity which may restore supply-chain balance by addressing supply-side constraints. The freight (including trucking) and air-cargo routes between China and Asia is returning to normal but China-Europe and China-US routes may be impacted until the middle-to-end of Q2. 

Globally SMBs IT spend in 2019 was $662B with a projected spend of US$700B in 2020, a growth rate of 5.6%. It is natural, in the current economic situation to pare down these spends and slice expectations (perhaps deeply) based on beginning-of-the-year projections. As compared to the original SMB IT spend growth rate, the projected growth rates may drop from a low of 29% to a high of 84% depending upon Techaisle’s optimistic to gloomy scenarios, resulting in revised growth rate ranges from 4.0% to 0.9%. 

SMBs are a good indicator to measure the pulse of economy in any country as they constitute over 90 percent of global businesses. They are intricately linked to large businesses, government departments and educational institutions as both suppliers and customers. A large percentage of consumers rely on SMBs for products and services that they consume within their households. Technology plays an important part in daily operations of SMBs across all departmental functions including sales, marketing, operations, finance and customer support. SMBs form the essential thread of the economic fabric of any country and to a great extent their fortunes and investment capabilities are dependent on the economic situations and policies of the countries where they operate. In a downturn and uncertainty the investment capacity of SMBs is deeply affected. Techaisle conducted a global survey of SMBs to assess their investment intent which combined with Techaisle global SMB IT spend data presents four scenarios - Ideal, Optimistic, Pessimistic, Gloomy. 

Download to read full analysis and projected small business and midmarket IT spend growth rate scenarios.

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2020 Top 10 SMB and Midmarket business issues-challenges-priorities

Techaisle has released its annual research infographics on top 10 IT priorities, business issues and IT challenges of SMBs (1-999 employees), midmarket firms (100-999 employees) and small businesses (1-99 employees) for 2020. In its detailed SMB survey Techaisle investigated 27 different technology areas and several technology sub-categories, 25 different IT challenges and 24 different business issues. This is the 10th year of Techaisle’s annual survey research initiative that probes for top business issues, IT priorities and IT challenges. Tracking history provides a fascinating evolution in which new business goals drive new IT priorities and uncover challenges that must be addressed to enable progress on business objectives. Primary research was conducted among senior IT and business decision makers from Techaisle network of 1.8M B2B IT professionals spread across 30+ countries.

WW SMBs are expected to spend US$1 trillion on IT in 2028, growing at a faster rate than the enterprise segment. Innovation is increasingly becoming a line-item of IT budgets. 40% of midmarket firms and 15% of small businesses are carving out budgets specifically for technology-driven innovation. But there is a flip-side as well. Within 47% of small businesses and 22% of midmarket firms, IT is not expected to actively drive innovation. As data suggest, nearly half of the SMBs assert that either they do not have the right IT skills or not enough IT staff. However, data does show that move to pay-as-you-use/consumption-based financing is likely to reach an irreversible trend with 14% of SMBs either currently using or planning for it. But a mass-move to only OPEX-based technology acquisitions is still in distant future with 30% of SMBs still preferring a mix of CAPEX and OPEX.

2020 top10 smb it priorities business issues techaisle infographics blog

Download 2020 SMB infographic here

For 2020, data shows that for the first-time customer experience has appeared within the top 5 challenges being faced by IT within SMBs which has a direct correlation to the top business issue of attracting and retaining customers. A direct result of the new challenge and focus is in the increase in plans for adopting integrated CRM and customer service solutions (in some cases replacing one brand of CRM with another), acceleration in use of artificial intelligence and analytics. A small business CEO of a manufacturing firm told Techaisle, “we are planning to purchase more cloud-based applications to save time and effort. See being a start-up, currently we do not use many cloud applications and we know that there are requests from our sales and HR department to purchase additional cloud applications. Right now, we are not using any cloud application for customer service and for evaluating our progress, growth and tackle pain point of our business, we need to be more connected to our consumers. So, we are trying to purchase a cloud application like Salesforce or Zoho that can enable us connect with our consumers for feedback and registering customer support / complaints”.

For small businesses, upgrading to digital marketing and utilizing social media is among the top 10 IT challenges. These small businesses are not only experimenting themselves but seeking external assistance in how best to use major digital platforms like Google and LinkedIn to make their customers aware of the services and products that they have to offer. They are also hoping that such initiatives may help them get valuable feedback from their customers.

Security is not only the biggest IT challenge but it is also a key top priority in every region and across all employee size segments. As one SMB CIO told Techaisle, “security has been our biggest concern. The more we try to deploy latest technologies and software hackers always find new ways to breach. So, we are hiring more experts in our cyber security team and we are evaluating more vendors to have the best software and tools for security”. In fact, US survey data shows that 3% of small businesses and 94% of midmarket firms have employed IT security specialists within their organizations. If data from 1-19 employee size segment is excluded, then the percent of small businesses with full-time cybersecurity staff increases to 25% within 20-49 segment and 57% with 50-99 employee segment. The data is no different in Europe and Asia/Pacific, in fact, the percentages are higher in Europe. A small business IT director in Germany told Techaisle “as our company grows and evolves, security concerns are increasing. There are increasing number of cyber risks and we have plans to implement new security solutions, amending policies and hiring additional security professionals for protecting our organization from any cyber breaches or threats”.

Controlling IT costs, although number nine on the top 10 list is a challenge for SMBs. IT is known to be kinetic, complex and risky and costs can spiral out of control rapidly or SMBs are unable to realize the ROI of the investment in the shortest time. Most SMBs find controlling cost to be a major challenged because there have been situations where their spend was higher than budget allocation resulted in losses. Therefore, SMBs are becoming better on their budget forecasts and moving towards cloud eliminating Capex.

Accelerating cloud adoption is a given but there is a new initiative to consolidate IT workloads. A Vice President of IT in Asia/Pacific elaborated on this topic, “we have a lot of IT workloads that is spread over public and private cloud. It is very important for us to have our data consolidated at a single place that would be a private cloud so that only our internal team has access to it and no one else could access the data without our permission. We have plans to work on private cloud provided by Microsoft Azure and AWS”. There are many other SMBs and midmarket firms who have tasked their IT departments to research and add new cloud technologies based on business requirements.

Hyperconverged Infrastructure (HCI) has moved up in its list of IT priorities driven by the promise of agility, reduced costs, scalability and centralized management. SMBs and midmarket firms are showing their preference for VMware, Cisco and Nutanix HCI offerings.

Cloud-managed SD-WAN service is a new top 10 IT priority for midmarket firms because of faster deployment, optimization of WAN bandwidth and improved operational efficiency due to automation and self-provisioning.

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Updating PCs and software vital for SMB bottom line - says new report

A recent report into the technology purchasing habits of SMBs in the Asia Pacific has revealed that a significant number of businesses are operating with dated PCs and operating systems – which has the potential to damage both productivity and profits.

The Asia SMB Tech Insights Report, conducted in September 2019 by Microsoft and Techaisle, was produced following a survey of 2,000 IT and business decision makers across the Asia Pacific region. The study specifically covered small and mid-size businesses only (up to 499 PCs).

Get the key insights by downloading the summary report for your region:

 Key findings from the report include:

  • Over 1/3 of SMBs are using old PCs (4+ years old) and old Windows operating systems
  • Over half of SMBs have no PC refresh policy (or aren’t following it)
  • Using old PCs can cost a business up to US$2,657 per year
  • 82% of SMBs agree that new PCs can make employees more productive, and 87% agree that new PCs reduce maintenance costs
  • More than 50% of all SMBs in the region experienced security breaches in the past 12 months, and operating with older versions of Windows increases vulnerability
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