• 2021 SMB & MIDMARKET PREDICTIONS

    2021 SMB & MIDMARKET PREDICTIONS

    Top 10 SMB & Midmarket Predictions for 2021
    READ NOW
  • SIMPLIFY. EXPAND. GROW.

    SIMPLIFY. EXPAND. GROW.

    #SMB #MIDMARKET #UPPER MID-MARKET #CHANNEL
    LEARN MORE
  • WHITE PAPER

    WHITE PAPER

    Windows 10 PCs - Strategic SMB Investment for Modern World of Work
    LEARN MORE
  • DIGITAL TRANSFORMATION

    DIGITAL TRANSFORMATION

    Delivering Connected Business
    LEARN MORE
  • SECURITY RESEARCH

    SECURITY RESEARCH

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

    MANAGED SERVICES RESEARCH

    US SMB & Midmarket Managed Services Adoption
    LEARN MORE
  • CLOUD RESEARCH

    CLOUD RESEARCH

    SMB & Midmarket Cloud Adoption
    LATEST RESEARCH
  • CHANNEL PARTNERS

    CHANNEL PARTNERS

    Transformation or Consolidation
    LATEST RESEARCH
  • COVID-19 IMPACT

    COVID-19 IMPACT

    on SMB IT Spend Growth Rates
    FULL ANALYSIS
  • COVID-19 IMPACT

    COVID-19 IMPACT

    on CHANNEL PARTNERS
    FULL ANALYSIS
  • FEATURED INFOGRAPHIC

    FEATURED INFOGRAPHIC

    2020 Top 10 SMB Business Issues, IT Priorities, IT Challenges
    GET IT NOW
  • 2020 CHANNEL PARTNER PREDICTIONS

    2020 CHANNEL PARTNER PREDICTIONS

    Channel Partner Predictions for 2020
    READ NOW
  • NEW SMB CUSTOMER RESEARCH

    NEW SMB CUSTOMER RESEARCH

    PC and software purchasing trends
    LEARN MORE
  • WHITE PAPER

    WHITE PAPER

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

    ANALYTICS & ARTIFICIAL INTELLIGENCE

    SMB & Midmarket Analytics & Artificial Intelligence Adoption
    LEARN MORE
  • BUYERS JOURNEY

    BUYERS JOURNEY

    Influence map & care-abouts
    LEARN MORE
  • SAAS RESEARCH

    SAAS RESEARCH

    US SMB & Midmarket SaaS Adoption
    LEARN MORE
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17

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.

Accelerating Artificial Intelligence adoption within SMBs and midmarket despite budget constraints

Techaisle’s survey research of 1256 US SMBs shows that 9% of small businesses and 29% of midmarket firms are either currently using artificial intelligence (AI) or are conducting pilots. Comparing data from last year indicates an increase of 80% within small businesses and only 12% increase in midmarket firms. Answer to slower rate of adoption within midmarket firms is present in several follow-up questions. 53% of midmarket firms are finding that AI technology and expertise is too expensive and does not fit within their current budgets. In addition, 42% of midmarket CIOs say that the importance of AI, its benefits and immediate returns are not clear to the executive management thus hindering adoption. As a result, in only 10% of midmarket firms, AI has been designated as a technology priority for internal IT staff. However, of the 36% of midmarket firms that are planning to deploy AI, 31% are conducting trials. This number has nearly doubled from 17% a year ago.

For all of SMBs, data shows that use of AI is among the top 20 on the list of IT priorities for 2020. Cloud, mobility, security, managed services, HCI, unified workspace, SD-WAN, analytics, collaboration and virtualization have higher priorities. This opens up opportunities for channel partners, consultants and AI-technology suppliers to not only evangelize use cases but also build a blueprint for easy understanding, deployment alacrity of AI solutions that can deliver previously unimaginable business outcomes.

The entry point for most SMBs is when AI is embedded in cloud business applications. 25% of small businesses are contemplating using AI for HR and recruiting, a challenge that small business owners constantly face.

Not only is the adoption trend different between small and midmarket businesses, the expected benefits and application usages also differ. 41% of small businesses believe that use of AI in improving customer experience will be integral to their business success whereas 30% of midmarket firms believe that use of AI in fraud analytics and 27% in web/social media analytics will help drive better operational excellence and customer intimacy. For example, a midmarket firm that provides hostel and budget accommodations wanted to deliver analysis and personalized communication to over 500 micro consumer segments. After adopting AI tools from Persado (a marketing language cloud that uses AI-generated language for digital marketing) enabled the company to deliver more precise marketing content resulting in double-digit engagement uplifts and improved customer loyalty.

In fact, survey shows that customer experience improvements and strategic operational excellence are becoming the SMB themes for 2020 and beyond which will likely drive adoption of analytics and AI. 38% of small businesses believe that the use of AI will provide benefits to their customer support, sales/marketing teams as well as assist the entire organization in driving better business strategy. Similarly, 43% of midmarket firms believe that pervasive use of AI could provide benefits to make more informed strategic decisions.

All data and analysis in Techaisle’s upcoming research report SMB and Midmarket Analytics / Artificial Adoption trends.

techaisle us smallbusiness ai adoption trends 450

techaisle us midmarket ai adoption trends 450

 

 

 

 

 

 

 

 

 

 

  0 Comments

Top 10 SMB and Midmarket Predictions for 2020

1. Connected business will be everyone’s problem.

The key focus of business investment will be more about the “work”: the ways that an increasingly-connected business can support pursuit of previously-unattainable objectives. The most important SMB & Midmarket technology-related adoption in 2020 will be this focus on connectedness – cloud, platforms, edge, devices, applications, security, collaboration, workspaces and insights. With the connective fabric rapidly becoming ubiquitous, businesses of all types and sizes will move beyond just the network access, and concentrate instead on using technologies to drive progress across the four pillars of digital transformation: operational effi-ciency, customer intimacy, employee empowerment and product innovation.

2. Momentum building for consumption-based IT acquisition.

Increasingly within SMBs and midmarket firms discrete sales of individual products or integrated systems will be replaced by agreements to provide IT capacity and business functionality “as-a-Service”. In 2020, the trend will be more midmarket driven than small businesses. 20% of midmarket firms will move towards OPEX-based agreements where these firms will look for flexibility and will prefer to acquire technology based on usage – namely IT consumption model – driven primarily because of current IT asset under-utilization.

3. Customer intimacy will take a whole new meaning.

Every SMBs’ survival is dependent upon customers and 2020 will see a ground-breaking year when customer intimacy (acquisition, retention, experience & satisfaction) will drive IT adoption and business process evolution. By the end of 2020, for 45% of SMBs, need for customer intimacy will drive IT adoption and 76% of new SaaS adoption will be customer focused. As a result, 15% of small businesses and 24% of midmarket firms will have “Top Notch” customer facing digital presence.

4. Need for Embedded Collaboration will be clear and present.

Anywhere, anytime also means any type of collaboration. 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. By the end of 2020, 80% of SMBs will benefit from embedded collaboration and for high-growth, innovative businesses, effective, e¬fficient collaboration will be in their organizational DNA to deliver decision agility, business agility and innovation agility.

5. Regardless of the question, analytics will provide an answer.

In 2020, SMBs will see a new attitude and culture that will value and use data as a meaningful way to gauge overall performance and specific areas of interest at a glance will become prevalent. SMBs will demand Key Performance Indicators (KPIs) as a standard part of application architectures as well as a meta-directory of KPIs that all applications can access. It may finally become possible for SMBs and Midmarket firms measure and optimize for elusive objectives like Return on Marketing Investment, Optimal Pricing, Cost of Acquisition and Lifetime Customer Value. By the end of 2020, 15% of SMBs will be highly data driven and 30% will be using cloud-based prescriptive analytics and 50% of midmarket firms will demand AI-driven analytical platforms to proactively prescribe actions that will mitigate risk / increase opportunity within the predicted future.

Continue reading
  0 Comments

Dell announces On Demand, PowerOne, expands PCaaS, focuses on customer advocacy, invests in SMB

Dell was always been relevant for small business and education markets but is now in an exalted position to stake its claim within the enterprise segment and the new battleground – the midmarket firms. In this Techaisle Take analysis I cover Dell Technologies’ On Demand offering, Progress Made Real initiative, expanded PCaaS for SMBs, focus on customer advocacy, continued SMB investment, new converged infrastructure PowerOne, Unified workspace solution and channel partner strategy.

Dell Technologies Summit in Austin was a showcase of bold announcements and understated commitments to corporate social good and customer advocacy. Dell has certainly transformed in the last five years. It has moved along a path from a PC company to end-to-end solutions provider to a digital transformation partner to a place where it is driving its own transformation through the power of analytics with a goal of delivering customer success. Dell has catapulted itself into relevancy for the next decade.

In 1984, when Michael Dell founded his namesake company in his college dorm, I was a freshly minted engineering college graduate working through my first job at a tractor manufacturing plant in India. My first interaction with Dell was in early nineties when an India-based firm was awarded a contract manufacturing deal. I was then running the secretariat of a computer manufacturer’s association in India. Since then not only technology has progressed but both the consumers and commercial buyers have evolved. Dell has not only moved with the times but sometimes has been ahead of the curve. One such “ahead of the curve” initiative is “Progress Made Real for 2030” announced at the summit.

Progress Made Real for 2030 stands on four pillars:

  1. Advancing sustainability: for example, one-for-one recycling, that is, every product that Dell sells it will recycle an equivalent product
  2. Cultivating inclusion: committing to 50 percent of Dell workforce to comprise of women by 2030, 40 percent of managers of people will be women, 25 percent of US workforce will be Hispanic or African American
  3. Transforming lives: for example, Dell’s work with Tata Trusts, with a goal to reach 40m under-privileged people from the current 11m
  4. Upholding ethics and privacy

Enabled by a combination of pervasive use of technology and vastly-expanded solution options, the technology user and buyer community has become more diverse in both composition and focus. Business decision makers (BDMs) are not content to await IT’s blessing to pursue technology options that align with business needs: an increasingly tech-savvy business user/management community plays an ever-expanding role in assessing technology options, and even in specifying solutions and managing their rollout. At the same time, the solution options themselves have expanded to become more accessible to non-IT staff. Some technologies, such as analytics and IoT, directly address business management questions. Others, notably cloud, provide support and delivery options that give business units the option of avoiding IT oversight. Even core IT functions, such as storage management (especially with respect to Big Data) and security (particularly with regard to cloud and mobility) are reshaped by system requirements imposed by BDM needs. It is not out of place, as an analyst, to say that Dell has been a little late in recognizing and pursuing the shifting patterns. Regardless, Dell has been a believer of technology democratization and has begun a concerted effort to manage technology chaos with a differentiated customer strategy and drive the ability to scale human capacity. These are very lofty and moonshot initiatives. But then Dell is a founder-led company whose founder is skilled at assembling the proverbial ship piece-by-piece and navigating it through uncharted and occasionally choppy waters.

Dell Technologies differentiated customer strategy is built on four key points:

  1. Driving social impact with purpose-driven relationships
  2. Creating customer advocates for life by honoring customer loyalty and delivering success
  3. Making it easy to do business with Dell by executing on basics
  4. Unlocking customer value by leading with insights

Dell’s customer advocacy team is constantly analyzing 9.5K social conversations per day, looks at 33K customer verbatims in addition to its 16K sales team members sharing feedback. Dell’s plan to delivering a seamless and simplified customer experience is not very different from recently announced customer lifecycle experience, aka race track, by Cisco. End goals are the same, approaches are slightly different. But the fact that all suppliers are landing at the same end-state is significant on how the technology industry has evolved.

Perhaps the most important announcement at Dell Tech Summit was its On Demand offering. Dell went to great lengths to explain its genesis and development but it is clear that it a direct response to the growing popularity of HPE GreenLake. Regardless of HPE commanding the media-waves Dell has jumped headlong into the as-a-service, post-transactional market with Dell Technologies On Demand Autonomous Infrastructure available via DT Cloud. Dell is prepared to deliver solutions today and at scale. And it is also within reach of midmarket businesses. Key takeaways of Dell’s On Demand solutions are:

  1. On-demand, consumption-based and as-a-service solutions for on-prem infrastructure / services is customizable, integrated across the full-stack for Dell's end-to-end portfolio from edge to core to cloud
  2. Dell widened the product of their Flex On Demand offerings for PowerEdge servers and their new PowerOne autonomous converged infrastructure solution (announced at Dell Technologies Summit). With this announcement, Dell’s consumption-based on-demand solutions now cover PCs, servers, storage, CI/HCI, IoT, datacenters, networking and data protection. Ideally applicable for firms with a minimum $250K 3-year contract-value but end-points including PCaaS is available for SMBs (at lower committed contract values).
  3. Dell knows how to create simplicity within complexity. Businesses can customize and select their on-demand path from:
    1. Payment: Pay As You Grow, Flex On Demand, Data Center Utility
    2. Services: ProSupport, ProDeploy, Managed services
    3. Portfolio: Edge, Endpoint, Core, Cloud
  4. On Demand offering provides two options for channel partners to participate:
    1. Referral fee – 7%-10% on committed contract value including tier credit program benefit. Dell owns and manages the customer. The partner still plays an active role in managing the customer relationship. The referral fee model positions the partner to address the customer’s solution needs, and enhance their customer relationship without having to take on the usage and credit risk associated with offering a pay for use solution.
    2. Resell – Partner owns and manages the customer. Allows partner to uplift base usage charge and earn program benefits including rebates, marketing development funds, and tier credit

Pay As You Grow is for committed workloads. The metering coverage in Flex On Demand includes processor, memory, and GB consumed. Data Center Utility adds metering based on VM and per port. The solution is still in its early stages and Dell views this as a journey rather than a destination. But the offering, in early stages, is finding acceptance at many of Dell’s customers. Scalar (a CDW company) has been configuring on-demand solutions with unlimited scalability for major Hollywood studios.

Relative to the cost of conventional hardware and software, on-demand cloud solutions are generally more cost effective than equivalent CAPEX-based on-premise alternatives, and its OPEX-based billing model works well for cash-constrained SMBs and midmarket firms. Cloud’s ‘as-a-Service’ delivery model reduces the need for individual SMBs and midmarket firms to attract and retain specialized IT staff; scale up as the organization grows, and cloud provides SMBs and midmarket firms that are often unable to maintain refresh cycles with ‘always-on’ access to current technology.

SMBs are not being left out from Dell’s strategy. In fact, small and midmarket businesses are two of the fastest growing segments for Dell. Its small business advisory has witnessed tremendous success but the team is not resting on its laurels. It aims to add 100 more small business advisors in the next one year. Each advisor goes through 160 hours of in-person classroom training. Dell has built a progressive hierarchical advisory structure, based on “needs complexity” to help SMBs learn, identify, buy and deploy technology. Small businesses with specific and simple requirements can also use Eva – a chatbot – to help guide through product selection and purchase.

Continue reading
  0 Comments

32 percent of SMB business activities expected to be digitized by 2021 – 2X from 2017

Techaisle research into SMB approaches to digitalization shows a great belief in organizational commitment to digitalization strategies. 17% of small businesses and 31% of midmarket firms, down from more than 40% two years ago, believe that they are “holistic” with respect to digital transformation – that within their firms, the Internet and digital technologies impact every aspect of the business and are at the core of organizational strategy. Another large proportion of the SMB population – 32% of small businesses, 45% of midmarket firms – report that their organizations are best categorized as “inclusive,” seeing digital as important to the business, but as a relatively minor factor in strategic planning, and not having organization-wide impact. Lesser proportions of both populations see themselves as ‘siloed’ with respect to digital initiatives, but within 19% of small businesses, up from 5% in 2017, digital is not seen as core to their operations.

techaisle smb digital transformation status
Pace of digital business adoption within SMBs

To add context to the previous data set, figure below shows how rapid the take-up of digital business within the SMB community has been and is expected to be over the next two years. Overall, SMBs expect 32% of business activities to be digitized by 2021, which will be up from 17% in 2017, nearly double. On average, roughly a quarter of small business and midmarket companies’ operational processes are digitized today: this represents a 51% increase (from 16%) within small business and a 47% (from 18%) increase within midmarket firms over the past two years, with a further 24%-28% increase (to nearly one-third of all processes) expected by the end of 2021. Suppliers selling into the SMB market with a digitalization position/messaging strategy should find a large number of firms looking to accelerate digital business initiatives.

techaisle smb digital transformation pace of digital business adoption

Constraints to SMB digital strategies

A follow-on question about inhibitors found that 30% of SMBs “lack the skills” to embrace digital business practices; nearly as many (28%, rising to 36% in small business) cite staff or management reluctance to change current practices as a barrier to digital business adoption, and substantial proportions of the SMB community also point to “lack of investment capital/budget” (26%, and again, higher within small business) a risk averse corporate culture (24%) and inadequate installed technology (23%). In all, seven different constraints were cited by at least 20% of SMB respondents – highlighting the fact that SMBs face numerous challenges to development and adoption of effective digital business strategies.

Related SMB survey research reports:

US SMB & Midmarket Digitalization Trends

US Midmarket Digital Transformation Trends

US SMB & Midmarket SaaS Adoption Trends

Europe SMB & Midmarket SaaS Adoption Trends 

Asia/Pacific SMB & Midmarket SaaS Adoption Trends

Latin America SMB & Midmarket SaaS Adoption Trends

White papers

Prologue and Epilogue of Digitalization in SMB Market

Digital Transformation for the Modern Midmarket: Red Paper

Future of Work - Interwork: the next step in connected businesses

Digital Transformation & the Future of Reseller Channel

 

 

  0 Comments

Search Blogs

Find Research

Blog Archive

Research You Can Rely On | Analysis You Can Act Upon

Techaisle - TA