• FEATURED INFOGRAPHIC

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    2023 Top 10 SMB Business Issues, IT Priorities, IT Challenges
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    SECURITY RESEARCH

    SMB & Midmarket Security Adoption Trends
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    Transformation or Consolidation
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    2022 SMB & MIDMARKET PREDICTIONS

    Top SMB & Midmarket Predictions for 2022
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    2022 CHANNEL PREDICTIONS

    Top SMB & Midmarket Predictions for 2022
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    SMB & Midmarket Cloud Adoption
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    US SMB & Midmarket Managed Services Adoption
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    SMB & Midmarket Analytics & Artificial Intelligence Adoption
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    SMB Path to Digitalization - Prologue and Epilogue
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    HYBRID WORK IS HERE TO STAY?

    NOT SO FAST SAYS THE DATA
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    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.

Zoho Creator Low-code platform blurring the IT-business divide to build, integrate applications, and analyze data

Coding is not everyone's inclination, yet there is a need to rapidly automate new workflows, generate new insights from scattered datasets, drive competitive advantage, improve customer interactions and make operational improvements. Low-code/no-code platforms such as Quickbase, Airtable, Microsoft Power platform, and Salesforce Lightning aim to equip and empower business users to be self-sufficient and agile to achieve their business objectives. But Zoho Creator Platform is different. It effortlessly enables both business and IT users to pursue their individual interests and is very well suited for the SMB and midmarket segments. It replaces the band-aiding of work processes with a permanent yet elastic fix to improve organizational efficiency. Business users can spin up applications. If IT needs to add additional complexity, the IT team can develop that through custom capabilities. Developers can write, store, and execute reusable code blocks in the Zoho Creator Platform using Deluge or Java or Node.js. These functions encourage IT and business teams to work together to build scalable and easily maintainable enterprise-ready apps faster. Developers can now launch solutions in different environments of choice—development, staging, or production, with a single click based on the application's readiness.

Most people associate Low-code with spreadsheet replacement, email replacement, automating, and digitizing them. Instead, the Zoho Creator Platform aims to help recreate processes to leverage everything a local platform can do in mobile, analytics, and governance.

Zoho Creator was introduced 15 years ago as an online database. Its latest version, Zoho Creator Platform, announced on March 3, 2022, aims to empower everyone to build applications solutions with a unified platform quickly. Specifically in the SMB and midmarket firms, IT is overloaded and has less time to codify new processes and modernize existing ones. Regardless, most organizations do not have well-defined business processes and want flexibility.

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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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Culture is the strongest foundation of Zoho and applications are its biggest strength

Five years ago, I flew in from Newark into Mineta San Jose International Airport. At the baggage claim carousel, I noticed a massive advertisement of Zoho with the tag line – operating system for the business. I was both intrigued and non-committal. It was my first introduction to the company. Before that day, I had either not paid attention or had not come across the name. When I reached home, I sent an email to my team with a question, does Zoho appear in any of the surveys as a cloud business application that SMBs and midmarket firms are using. Two hours later, nearly midnight, I was pinged by my overseas team with an answer. Zoho's penetration had been increasing since 2009. I still did not give Zoho the serious consideration that it deserved. In 2019, during my several visits to Dell Technologies' events, I began noticing the remarkably colorful Zoho banners at the Austin, TX airport. During the same timeframe, the number of inquiries from our SMB panel of respondents seeking our take on Zoho increased. I knew I had to call Zoho's analyst relations, and I did. It was a turning point. I contacted a company where customers come for the products and get enriched by Zoho's ethos.

I first met Sridhar Vembu, CEO, Zoho, in January 2020. Unassuming, unpretentious, and unassertive, he was standing in his "chappals" and "bush shirt." He poured out his passion for building a company that cares for the underserved communities, hires, educates, and develops talent from underprivileged families. He is committed to keeping Zoho private and debt-free, fiercely protect its customers' privacy and security, and spread its offices in the rural areas of India, the US, Europe, and Japan. I knew I had to learn more. Soon enough, I also got swept up into Zoho's product portfolio. A collection of 50+ apps running on single database architecture and purpose-built on Zoho technology stack consisting of services, software infrastructure, network infrastructure, and hardware infrastructure deployed on Zoho's data centers to ensure performance availability, security, and privacy. It is not for small businesses only. Zoho's fastest-growing market segment is the midmarket. Salesforce, Microsoft, and SAP are the established brands within the midmarket; Zoho is the challenger, not by deliberate design but by a sheer and silent commitment to customer success. I have interacted with many Zoho senior executives, product evangelists, and customers in the last year. The pervasiveness of genuine fondness to learn, desire to challenge the status quo, develop themselves as great human beings and develop solutions that exceed customer expectations is palpable. Zoho has as many micro-cultures as there are apps, fifty.

Zoho has been 25 years in the making. With 9000+ employees, 60+ million users in 180+ countries, annualized 5-year revenue growth of 34%, and a 97% customer retention rate, Zoho seems to be just getting started. Using a hub and spoke model – major city and adjacent rural areas – Zoho has opened 15+ small offices in the past six months to support local economies and partnerships. Sridhar Vembu, the recipient of Padma Shri, one of India's highest civilian honors, calls the model a cloud-enabled rural revival. He returned to India from the US in September 2019 and has settled in a small rural village, Tenkasi, where even the street lights are non-existent.

Sridhar is setting the tone for the next 25 years. He aims to continue enhancing a vertically integrated technology stack (from the data center to applications) and building horizontal integration where different groups, micro-cultures, and departments feel empowered and collaborate seamlessly. The deep-seated culture is evident in the enthusiasm of Zoho's empathy and responsiveness to the pandemic. It instituted a 6-month subscription waiver for small businesses. To meet remote workers' needs, it launched Remotely, a suite of 11 free productivity tools. To enable workplace re-opening, it has announced the BackToWork app, free for a year. For Zoho, free does not mean using customer data for monetization. Zoho does not run on public clouds, has removed all adjunct surveillance, and does not collect or store any customer data.

Zoho's latest versions of Zoho Projects and Zoho Analytics (with 1500 built-in dashboards) are comprehensive, customizable, secure, scalable, and intelligent. Zoho's universal NLP (Natural Language Processing) search – across all apps and data pillars - provides contextual answers, processes 16 million search requests a day, and performs 150 million indexing jobs a day. Zoho's offering is the Low-code platform to empower citizen developers with last-mile customizations. It incorporates many new functionalities, including Zia (Zoho's AI platform), assisted development, and sandboxing. Zoho's other recent notable offerings include the Employee experience platform and Marketing platform.

Agility is essential to managing business uncertainties. It also translates into business process automation and rapid deployment, and enhancements to business applications. Specifically, the smaller a business is, the less likely it is to have dedicated staff developing custom applications to support unique processes. From pro-code to low code to no-code, Zoho Creator Platform can appeal to a broad swath of citizen and professional developers. For citizen developers, it reduces complex functions to one-click or drag-and-drop actions. For experienced developers, Zoho has added controls to build customized applications and services from the ground up. Like everything Zoho, the platform has been 15 years in development, rendering the learning from organizations of all sizes to better user experience and scalability. For specific vertical industries for whom governance is a vital issue, the platform is SOC2 Type II and GDPR compliant. It also provides authentication, encrypted data storage, and full lifecycle management. Zoho's low code platform, Zoho Creator Platform, currently has 13,000+ paying customers, which is up by approximately 30% during the pandemic year. A testament to how the platform empowered businesses to pivot with agility to respond to employee and customer needs.

Although Zoho is known for its focus on the small business segment, which continues to grow, it also gains traction within the enterprise segment. Zoho's largest customer is IIFL, with 28,000 employees using 45 of the 50 apps. Zoho is a genuine one-of-a-kind visionary firm. It is the complete CRM platform and has the most comprehensive toolsets for hybrid, co-modal work. Its flagship, Zoho One, has over 50 products designed for multiple business needs across productivity, finance, marketing, HR solutions, etc. I am glad I made the call to Zoho analyst relations. Zoho will continue to be within Techaisle's vendor research radar for a long time. It should be on the evaluation map for SMBs, mid-market firms, and enterprise customers.

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