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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.

Top SMB and Midmarket Predictions for 2022

prediction edit 2

In all sectors, the last two years were tough – and as a result, 2022 is challenging from a market planning perspective. As we enter 2022, IT product and service suppliers are looking to create a context for understanding the range of outcomes that the new year may bring. Techaisle is launching its "2022 in Focus" research series to support that effort, which illuminates issues and requirements in the vast SMB and midmarket segments. To begin with, here are our top 10 (and additional 3) predictions for 2022. After surveying thousands of SMBs and midmarket firms, having hundreds of depth calls, we identified over thirty trends. After that, we systematically prioritized ten predictions for your consumption.

We look forward to working with you in the year(s) to develop fact-based perspectives on the issues that shape the success of the IT industry.

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Zoho One promises to deliver unified contextual critical business insights for midmarket firms and SMBs

'Knowing what we don't know' is often the thorniest complication in decisions. A unified and contextual insights strategy mitigates this risk by ensuring that data from within the organization is aggregated, giving decision-makers the most complete and up-to-date information possible. Zoho One promises to deliver contextual critical business insights for Midmarket firms and SMBs.

Zoho has 500,000 customers, over 70 million users, and 40,000 customers on Zoho One, a product introduced to the market in 2017. One of the customers has 32,000 employees using Zoho One. What is Zoho One? It is a collection of 45 apps that span all primary business functions, with CRM, analytics, and communications being the most used, followed by accounting, helpdesk, and Sales IQ. Driven by the need for increased team collaboration and conversation in the last year, Zoho Cliq, a chat app, has become the third most used app within Zoho One. Having great success in the services vertical industry, Zoho is making quick inroads into the real estate, banking, and other financial services market segments.

Do businesses subscribe to Zoho One all at once or plod and pedal from one app to many? The answer lies in the market segment. Small businesses adopt and use all apps simultaneously, mainly because they see Zoho One as a path to transformation and digitalization with the least friction. It is relatively easy to adopt a single app, connecting its inputs and outputs to relevant internal systems and processes. Likewise, it is possible to adopt a handful of apps, hand-wiring the interconnections between them and adjacent applications. But this craft-built approach to digitalization is not aligned with longer-term visions of scale, flexibility, and agility. It creates management overhead and performance and security risks for small businesses. Zoho One, an integrated platform, quickly offers a cohesive approach to addressing several business pain points concurrently.

Midmarket firms often explore multiple apps before committing to Zoho One. Either through experience and education, one or several Zoho application parleys to adopt Zoho One or many midmarket firms prefer to work with only a few apps. Zoho's integration with its competitors helps the midmarket firms immensely, making it a more straightforward decision than identifying resources for automation and integration.

While we generally consider "SMB" as a single segment, there are often differences between the "S" and "M" segments – and their approach to cloud business application adoption illustrates one such difference. Midmarket businesses usually have complex deployments. The most common midmarket cloud application workloads provide a technology platform for enabling processes rather than an application platform for expanding the depth of specific tasks within the organization. Small businesses look to the cloud to primarily enable agility, while midmarket firms are also interested in improving IT efficiency.

What is next for Zoho One? There are five new apps, three new services, and seven platform enhancements to help "businesses unify systems, data, and teams." Two announcements interest me the most because they are universally applicable to all small and midmarket businesses regardless of cloud maturity, size, and vertical industry.

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Dell Technologies’ Small Business Advisors Program is deeply devoted to small business success

Small businesses are increasingly dependent on information technology. 78% of small (1-99 employees) businesses consider technology critical to their success. These small businesses are dealing with an ever-expanding portfolio of increasingly complex applications and platform technologies. Techaisle's small business research data shows that 73% prefer to purchase from a supplier who provides business issues focused technology advisory guidance and 64% want an IT supplier vested in customer success. In an IT environment that is already very complex and likely to become more so, trusted advisors are essential to small businesses. Launched in May 2016, Dell Technologies' Small business Advisor program has been consistently simplifying the technology complexity and removing the friction from purchase decision inertia.

There is a perception that Dell advisors only sell PCs. Reality is quite different than perception. The advisors advise and sell end-to-end solutions. For complex needs, such as digital transformation, Dell has a clear second-level escalation path. The front-line advisors can raise the small business needs to large order specialists or technical resources to work on complex solutions. These specialists have the depth to look over the needs and the entire customer account from an end-to-end perspective, provide infrastructure guidance, including VMware products, and configure solutions based on the customer's requirements.

The advisors are not sales agents. Instead, they have the expertise to determine where a small business is in its technology journey and thereby provide contextual guidance. Their goal is to advise customers on what they need and what they could get, what needs to get fixed, how to fix it, and how to get the right next solution. It is a much more holistic way to drive the customer experience. For example, over the last year, a vast majority of advisor conversations were around the following topics:

  • Migration to a remote workforce – What is needed to support a work-from-home environment and individuals looking to maximize their home office setup?
  • General solution guidance – If using software applications such as QuickBooks, Office, or CAD, what system would work best?
  • The move from cloud to on-prem or hybrid environment – What are the benefits of data management, application performance, cost, and security?
  • Supporting the rapid expansion of specific industries, as a direct response to the pandemic. For example, private healthcare, transportation, and niche service companies in the market.
  • Private schools and other entities enabling remote learning/training.
  • Upgrading outdated technology – End-of-life software applications, operating systems, expiring warranties, and low-performing/over-tasked hardware.
  • Ensuring proper security in a rapidly changing IT landscape.

None of the above are simple technology adoption questions. They are also not point-and-click PC purchases. Techaisle data indicates that there is an interesting opportunity to connect high-value guidance with click-to-buy type options. However, this kind of offering needs a more extensive consultative capability in many cases. For example, nearly three-quarters of small business buyers would like their IT suppliers to provide technical advice directly connected to business issues. In addition, almost two-thirds want an IT advisor who is "invested in customer success." Dell has a very rigorous model of getting to know the customer. Customer conversations revolve around what solution the advisors are trying to help with and what problems they are trying to solve through technology.

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SMBs innovating at the Edge to address business challenges

From the perspective of the technology world, 2021 and several years following will witness the benefits of the interconnection of all types of resources: platforms/environments, information, devices, and applications. With the connective fabric rapidly becoming ubiquitous, SMBs of all types and sizes will move beyond a focus on network access and concentrate instead on using edge technologies to drive progress across business processes and enable innovation.

Connectedness is an intrinsic component of the edge. It applies in two directions: client devices ranging from PCs to smartphones to sensors connect to more gateways and other powerful edge systems, which process time-critical responses and then communicate data safely back to clouds at the core of the infrastructure fabric.

Consider these data points from Techaisle's latest SMB technology adoption research study covering 2410 SMBs:

  • 30% of SMBs have a "very innovative" mindset and are investing in edge technologies that drive innovation; 51% are in the "somewhat innovative" segment with a focus on transitioning to being very innovative and are evaluating edge solutions
  • 38% of SMBs are investing in digital transformation to initiate innovation in products, services, and business processes
  • 9.9 is the number of technology categories that very innovative SMBs use, which is 1.8X non-innovative SMBs. Cloud, security, virtualization, mobility, AI, analytics, IoT, SD-WAN, AR/VR, HCI are the leading technology areas where very innovative SMBs are increasing investment and deploying edge solutions

Innovation at the Edge

Cloud is not only the IT business infrastructure; it is also the essential business infrastructure for SMBs. While the cloud replaces conventional data centers at the core of the network, an entirely new technology tier – "edge" – is emerging as a complementary IT infrastructure source. Edge supports many innovative technologies that promise to extend technology's use and impact into entirely new domains.

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