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Techaisle Analyst Insights

Trusted research and strategic insight decoding SMBs, the Midmarket, and the Partner Ecosystem.
Anurag Agrawal

Combination of Dell APEX and Multi-cloud by Design is a winning combination

The cloud has transformed the IT industry and has altered IT service delivery options. Cloud has impacted the economics & resource requirements associated with that delivery and has unlocked applications and business opportunities for user organizations of all sizes and industries. We are increasingly immersed in a post-transactional market, where discrete sales of individual products or integrated systems are replaced by agreements to provide IT capacity and business functionality “as-a-Service.” Organizations are increasingly turning to as-a-service models to ensure they have the agility and cost predictability needed to remain competitive. No segment of the IT market is immune to this trend. Sales of on-premises hardware and software are declining and will continue to decline. Inexorably, the market is shifting from one defined by discrete purchase-and-deploy deals aligned with refresh cycles to one where businesses take a ‘hybrid IT’ approach that blends a limited number of on-premises assets with a growing range of on-demand services. Cloud has transitioned from desirable to mandatory. The technology acquisition model is shifting from CAPEX to OPEX. Techaisle’s latest commercial segment survey reveals that 53% of businesses are considering OPEX-based agreements (pay-as-you-go/consumption based/as-a-service), and 26% plan to use a mix of CAPEX and OPEX, depending on which is best for business. As cloud applications proliferate, the demand for hybrid IT – integrating multiple delivery sources into a single, unified fabric so that workloads can be assigned to the best (rather than ‘best possible today’) location and that data and critical services (notably, security) can be connected across platforms, is becoming an urgent requirement. As a result, organizations find themselves in a multi-cloud by default setup, where they have applications and data residing in multiple cloud environments. There is little consistency between these environments, resulting in unpredictable costs and challenges to developer productivity. Techaisle’s cloud adoption study shows that between 45% and 83% of businesses use multiple clouds. The desired objective for each of these businesses is to have a seamless connection between traditional, private, public, and hybrid/multi-cloud environments via automation and orchestration.

The above challenge is what Dell aims to address with Dell APEX, a portfolio of as-a-service offerings that deliver infrastructure, and solutions, wherever needed. It aims to offer a better way to adopt a multi-cloud setup — multi-cloud by design (a term coined by Dell).

Let us first understand how Dell APEX came into existence.

Anurag Agrawal

Top 10 SMB and Midmarket business issues, IT priorities and challenges for 2023

They are here - Techaisle's annual SMB and Midmarket Top 10 IT Priorities, IT Challenges, and Business Issues infographics, 13th year of Techaisle tracking at a WW level, and is sought after by IT vendors, channel partners, and media. Techaisle surveyed over 5000 SMBs, quota sampled to ensure adequate coverage of four small businesses (1-9, 10-19, 20-49, and 50-99 employees), three midmarket (100-249, 250-499, and 500-999 employees) and two upper midmarket (1000-2499, 2500-4999) segments. As a result, the data represents a robust and reliable sampling of the market segment for IT products and services.

Significant changes in 2023 as compared to 2022 are:

  • Driving innovation and managing uncertainty, absent in 2022, are among the top 10 business issues in 2023.
  • Deploying customer experience solutions as an IT priority has moved to 4th place as compared to 9th in 2022. CCaaS is considered an integral component of customer experience solutions.
  • Implementing employee experience platforms and 5G-enabled devices/applications are new IT priorities within the top 10 list. UCaaS is one of the technology areas being investigated by SMBs.
  • Adopting collaboration technology solutions has move down from 3rd rank to 8th and hybrid workplace solutions as a priority ranks 10th as compared to 5th in 2022
  • Budget constraint has been a constant IT challenge fixture for over a decade. For 2023, it has been replaced by cloud cost management. Cloud optimization and cost management are the top IT challenges for SMBs, Core-Midmarket, and Upper Midmarket firms.
  • Preventing Cyberattacks, adopting Zero Trust, and moving to as-a-service technology acquisition for new IT challenges are among the top five.
  • Sustainability is increasingly becoming relevant and essential for the SMB segment, and there is no surprise that it is among the top challenges.
  • Integration, business process automation is now non-optional and a challenge, which is worsened because of the inability to find trained employees
Anurag Agrawal

Cisco Meraki masterfully enabling digital workplaces for SMBs

New work patterns and the acceleration of distributed workplaces are resulting in a range of productivity benefits for SMBs today. As such, businesses see increased workforce efficiencies and talent recruitment while minimizing cost by reducing intermediaries and integrating contract professionals – and even improved environmental performance through reduced commuting and building footprints.

In the quest to deploy a perfect hybrid workplace technology infrastructure, SMBs often overlook networking – wireless, routers, firewalls, and beyond. Similarly, as small business retailers and other small commercial offices struggle with re-opening uncertainties, they also grapple with the daunting task of enabling secure and safe environments for their employees and customers. Digitization with minimum IT disruption and low manageability is on their minds.

Cash flow constraints, limited access to finances, competitive landscapes, the need for innovation, erratic revenue, uncertainties, the pace of technology change, and many more are drivers for achieving cost efficiencies within SMBs. Digital transformation is no longer the domain of only upper midmarket firms and enterprises. Techaisle's SMB and Midmarket Digital transformation survey research shows that 46% of SMBs are adopting digital transformation to reduce costs, and 38% are planning for innovation in customer engagement and services.

Helping SMBs thrive with robust IT solutions

Unbeknownst to many, the Cisco Meraki platform and the solutions it powers is a critical foundational technology to fast-forward digital transformation for SMBs. Much of this comes from its ease of use, simplicity, and flexibility for lean IT to innovate by doing more with less.

Cisco acquired Meraki in 2012, around the same time (2013), when it divested Linksys to Belkin. Over the years, Cisco has continued to innovate on its highly successful Meraki platform. It is no secret that Cisco Meraki invented cloud-managed networking technology in 2006. It has continued to innovate and expand the networking portfolio to IoT solutions and cover any business need or use case. The Meraki platform consists of switching, security & SD-WAN, wireless access points, mobile device management, and extending to IoT, including smart cameras and AI-equipped sensors to drive business intelligence.

Regarding deep intelligence and analytics, Meraki Health and Meraki Insight allow SMBs to monitor all aspects of their network and applications from the Meraki dashboard or API and easily detect and fix potential issues in minutes. Techaisle's survey shows that only 4% of small businesses have internal full-time IT staff. They spend 79% of their time on support, maintenance, and troubleshooting— creating an IT efficiency deficit and negatively impacting organizational productivity. Meraki Health's objective is to simplify troubleshooting for the lean, almost non-existent, or over-burdened small business owner/manager. Small businesses need to propel growth and enable new business initiatives freeing up time and resources. To ease the digital transformation, Meraki provides many capabilities that protect SMBs of any size, including:

  • Preventing cyber-attacks: Meraki MX Security & SD-WAN appliances protect SMB businesses, users, and devices. Meraki security has the backing of Cisco Talos, one of the largest commercial threat intelligence teams globally.
  • Deploying remote workers: Meraki Z3 teleworker gateways provide connectivity and secure and seamless in-office experiences. Meraki Insight delivers deep visibility into critical business applications and proactive troubleshooting for remote workers.
  • Ensuring safe occupancy: Meraki MV smart cameras let SMBs maintain social distancing guidelines by remotely monitoring and tracking safe occupancy levels in physical environments through intelligent analytics, such as object detection and tracking.
  • Cost savings from simplicity: All Meraki products are deployed and controlled from a single pane of glass. Meraki Health is available for all devices, saving many troubleshooting times by pinpointing specific problematic devices and clients via root cause analysis.

SMBs agree that Meraki solutions can be quickly deployed with zero-touch provisioning and configuration and remotely managed through a cloud-based GUI dashboard (single pane of glass), with all-inclusive licensing. Meraki provides 24/7 technical support (email or phone) and a lifetime warranty on devices (except cameras & outdoor APs) with advanced replacement.

Challenges in small business security

Techaisle's SMB security survey research data shows that security is a top IT priority and challenge for 76% of SMBs, and 65% are planning to increase IT security investments. Within the SMB segment, small businesses often lack the skills required to work with software-based security solutions and are 25%-33% less likely than midmarket firms to work with managed service providers.

Most small businesses are not proactive in addressing security issues, but that may not be the whole problem or perhaps even the greatest obstacle to small businesses’ adoption of security technology. Relative to midmarket firms, small businesses have limited to no internal IT security staff, are not generally working with a managed service provider capable of handling security needs, and are about 50% less likely to embrace external vendors' software-based security solutions.

While small businesses could theoretically pursue some strategies used by larger competitors, they lack the experience and skills to identify, deploy, and manage the products and relationships used to develop shields protecting valuable corporate data, applications, and human assets.

Meraki addresses these issues by providing a secure in-office experience to remote workers—giving access to applications while maintaining visibility and control from anywhere with a cloud-managed dashboard. It also encrypts data with Auto VPN, allowing employees to quickly, securely, and remotely connect to corporate locations.

Meraki smart cameras also address physical security, remote monitoring, and intelligence by including on-device storage and flexibility to access data through the cloud. The cameras allow for many playback features with machine learning and AI to compress the data and provide business intelligence instantly gleaned from long recordings. It is an ideal product for SMBs implementing social distancing guidelines, remotely monitoring physical spaces, reducing in-person exposure on-site, and ensuring comprehensive security.

How SMBs can adapt and digitize

As I said earlier, there is increasing importance for innovation and digitization (not referring strictly to the substitution of digital records for physical documents, but more broadly to the use of digital technologies to meet business goals) in SMB strategy. Dependence on technology as a critical element of business success, burgeoning complexity, and cost constraint has created a perfect storm for small businesses to adapt to changing environments using specifically designed technology.

Over the last few months, we studied use cases and Meraki's usefulness within the SMB segment. Meraki addresses real and compelling issues, and I believe it will continue to expand within the SMB community. Verticals such as healthcare, manufacturing, retail, and financial services have been quick adopters of Meraki, specifically for launching new business models, deploying remote workers, transitioning to hybrid workplaces, cybersecurity, location analysis, contact tracing, social distancing, personal safety, curbside pickup, and more.

SMB owners and executives are concerned with issues that extend beyond technology. Yet, today's business environments are increasingly dependent on IT support, products, and services that improve productivity and efficiency or expand market reach and potential.

Final Techaisle Take

IT initiatives that can be linked meaningfully to broader business objectives can attract SMB executive support – meaning that products and services that address key business priorities have the most significant growth potential. Meraki is well on its way.

Today's economy demands that technology support SMB activities. The future will be defined by them capitalizing on technology-enabled business options. If SMBs are thinking about the path forward, from today's foundation to tomorrow's opportunity, they should include Meraki in their evaluations. Writing this analysis reminds me that I work from home and should probably replace my mesh routers with Meraki devices.

Anurag Agrawal

Mitel evolves its UC growth strategy and gains momentum with RingCentral UCaaS

Mitel’s overall philosophy for unified communications (UC) is enabling customers with broad flexibility to deploy what they want and purchase solutions how they want. A key differentiator of Mitel’s has been its belief that one size does not fit all. That belief is supported by a recent Techaisle global study revealing that 44% of firms use multiple communication platforms. On-prem unified UC solutions dominate in 88% of firms, but in 56% on-prem capabilities co-exist with cloud solutions. All these options are choices that Mitel supports with its Customer Lifecycle Management approach, recently bolstered by its exclusive UCaaS partnership with RingCentral.

Mitel - RingCentral UCaaS momentum - “A Differentiated and Evolved Partnership”

Mitel is not just partnering with RingCentral but doing even more by optimizing the complete migration experience through collaborative processes, migration tooling, device transfers, and exclusive incentives providing Mitel customers a world-class UCaaS solution and a clear, flexible path toward the future. Mitel is actively integrating numerous capabilities with the RingCentral MVP (Messaging, Voice, Phone) platform to enhance the whole experience for customers. The first example of this broad integration was evident just five months following the RingCentral partnership when Mitel launched its first set of certified devices – the 6900 series phones – which work seamlessly with RingCentral MVP. Customer choice and experience extend into a well-thought-through onboarding process, enhanced by Mitel’s Migration Assist Package, which introduces automation and accuracy while migrating customers 75% faster than industry standards. Customers migrating to less than a hundred seats can take advantage of these free implementation services. The free service is very generous as it includes access to an Implementation Advisor who also schedules discovery and training sessions and unlimited access via toll-free number for follow-up questions and assistance on system setup. Mitel partners or RingCentral provide professional services for customers with more than a hundred seats.

Mitel’s partnership with RingCentral has seen significant momentum, migrating over 100,000 seats in the first six months of the exclusive relationship.

The RingCentral – Mitel partnership is highly differentiated from others in the market, including RingCentral’s relationship with Avaya. From the outset, Mitel has distinguished itself from Avaya and others with superior pricing and purchase flexibility, ease of deployment and migration, professional services, and training. Although Avaya is widely considered to have a composable CPaaS offering, Mitel’s CloudLink technology with APIs and integration capabilities are yet to be fully utilized by developers and partners. Additionally, the compensation received from RingCentral fuels investments in core Mitel unified communications R&D and innovation and potential future merger and acquisition activities.

Trusted Research | Strategic Insight

Techaisle - TA