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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.

HPE addressing SMB and channel partner Hybrid IT demands

Change is a constant in IT – and SMBs are struggling to keep up. A recent Techaisle survey of more than 1,500 US SMBs (1-99 employees) found that in 83% of SMBs, technology is more important today than it was 3 years ago. More than half of SMBs find that their technology adoption related pain points have increased in the last year. Cloud is supposed to provide SMBs with worry-free access to cutting-edge technology – but 59% of SMBs find cloud technology difficult to understand. SMBs need defined paths that help them to build business agility on top of a complex infrastructure foundation.

One area where support and guidance are most needed is hybrid IT. As per Techaisle’s SMB & Midmarket Cloud adoption study just over 80 percent of SMBs are either currently connecting or planning to connect their on-premise environments (including private cloud) to external public clouds. These firms are responding to a need to enable digital transformation of their business operations: more than 40 percent of SMBs (as per Techaisle’s SMB & Midmarket Digital transformation trends study) are already embracing an advanced ‘holistic’ digital transformation strategy; almost all have some type of digitization, digitalization or digital transformation initiative underway.

Because SMBs can’t support multiple parallel environments, hybrid IT took root earlier in this segment than within enterprise accounts. SMB progress on hybrid has been halting, though: there has been a serious disconnect between what the channel partners offer in terms of hybrid IT solutions to the SMBs and what the SMBs really are asking for. Techaisle has seen evidence of greater vendor focus on supporting the SMB transition to hybrid infrastructure, however. As an example, HPE with its recent SMB-focused product announcements is addressing SMB concerns by simplifying its SMB hybrid technology, supporting easier adoption, enabling hybrid deployments and paving a path for digital transformation.

HPE has released five hybrid cloud solutions leveraging Microsoft Azure services, and purpose-built ProLiant Gen10 servers featuring HPE Silicon Root of Trust capabilities for enhanced security. For the very small businesses, HPE rolled out a small office deployment solution that provides wireless networking in-a-box and includes secure servers as well as Aruba Wi-Fi access points and switches.

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Techaisle Take – HPE vs Dell SMB IT solution stack

Comparing Dell and HPE offerings and ecosystems against the Techaisle SMB IT solution stack model

Techaisle’s latest report is designed to help SMB buyers and suppliers identify IT stack requirements, and to compare the offerings and ecosystems of the two current market leaders, Dell and HPE, against Techaisle’s definition of essential SMB & midmarket business technologies. The report is structured in three parts:

  • The IT stack: the report begins by outlining the technologies that SMBs require – and require integration across – in order to support current and emerging business requirements
  • Vendor comparison: an evaluation of Dell and HPE offerings, including core products, non-core products and partner-delivered capabilities, against the stack requirements
  • Evaluating stack suppliers: advice on how to use the stack comparison, and additional Techaisle research findings, to evaluate Dell and HPE strengths
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Midmarket Hyperconverged Infrastructure adoption driven by Cloud and Hybrid IT

Techaisle’s global Midmarket Converged Infrastructure (CI) and Hyperconverged Infrastructure (HCI) adoption trends survey report(s) show that 28% of US midmarket firms are currently using HCI solutions and another 46% are planning to adopt in the next 1-2 years, more than doubling of penetration. US data is based on a survey of N=609 midmarket firms. Highest potential adoption rates are within midmarket firms that have a holistic digital transformation strategy, are born-in-the-cloud and are rapidly moving from Advanced IT segment to Enterprise IT segment. Input to HCI market positioning and marketing communications begins with a perspective on the drivers that lead midmarket firms to embrace HCI solutions. Survey data illustrates that three drivers – improved operational efficiency, cost reduction and improved scalability – are the most frequently-cited reasons for embracing HCI. Issues connected to core infrastructure renewal, “hardware upgrade” (34%), “data center consolidation” (29%), and “improved backup/DR” (27%) round out the list of top-rated drivers.

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Techaisle research shows Hyperconverged Infrastructure on a high-growth trajectory within SMBs and midmarket firms

An extensive survey of US small and midmarket businesses shows that HCI adoption is poised to double within the current planning period. Techaisle’s US SMB & midmarket survey on CI/HCI adoption shows that 18% of midmarket firms are currently using hyperconverged infrastructure (HCI – systems that package compute, storage, networking, hypervisors and other system software into a single product) but more compelling is the fact that another 46% are actively investigating and planning to adopt, a 2.5X increase in adoption – significant growth over the next 12-18 months.

Within the upper midmarket firms (500-999 employee segment), the current penetration is 45% and another 38% are planning to adopt. HCI has also caught the attention of small businesses (1-99 employees) with slightly less than 1/3rd of IT mature small businesses are planning to adopt. Dell EMC XC Express, HPE HC380 and Cisco HyperFlex Systems appear as top choices within the SMB segment.

SMBs view technologies supporting HCI adoption as contributors to business growth. Techaisle’s survey data shows that the drivers of adoption, anticipated or currently realized benefits and important purchase criteria are very tightly aligned around cost, agility, scalability, operational efficiency and high availability. The SMBs that are fully committed to digital transformation are on the fastest path to adoption, as HCI is an important element of a future-ready, resource-sensitive IT approach.

Converged infrastructure solutions (which provide a hardware-centric bundling of system components) are already in widespread use with twice as many SMB firms already using; and software-defined HCI delivers even more compelling advantages (relative to conventional/siloed server, storage, networking and management technologies) than SMB buyers obtain from converged infrastructure. Some of the important benefits that SMB & midmarket buyers realize with HCI include:

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