Techaisle Blog

Every business is looking to build scalability into its operations. In IT terms, scalability is often tightly defined in terms of the potential to add capacity to specific system. This is part of the answer – but from an SMB perspective, scalability centers on the ability to increase the impact of each employee: by increasing productivity by delivering new functionality, new systems, and more capacity as needed. Techaisle’s SMB and Midmarket cloud adoption survey research shows that SMBs view cloud as the primary platform for scaling their IT systems – and their businesses. Techaisle global survey of over N=5000 SMBs discovered close connections between cloud and key business objectives:

● 65% of SMBs believe that cloud improves their ability to grow and scale their businesses
● 47% see cloud as a means of increasing agility in business operations – a core requirement for growth-oriented SMBs
● 41% state that cloud allows them to launch new products and services more quickly
● 40% report that cloud-based systems improve the productivity of business users.

It is no accident that 91% of SMBs (Source: 2020 Techaisle US SMB and Midmarket Cloud Adoption survey) are using cloud applications today, and 83% state that their businesses rely on technology. Cloud is the platform for small and midmarket businesses, and effective use of cloud is a key element in SMB viability. Similarly, 2020 Techaisle Europe SMB and Midmarket Cloud adoption survey data shows that 87% of SMBs are using cloud.

Techaisle’s SMB & Midmarket IT maturity segmentation reveals that 52% of midmarket firms and 16% of small businesses (down from 31% two years ago) belong to Advanced IT segment and 37% of midmarket firms (up from 14% two years ago) and 0% of small businesses are in the Enterprise IT segment.

IT products are often described as having ‘a market’ – but ‘the’ IT market is comprised of many segments, each of which has its own approach to IT adoption. Some industry sectors (e.g., aerospace) tend to move faster than others (e.g., retail) and different countries and regions invest in new technologies at different rates. Until they are supplanted by new solutions, mature IT products are acquired at about the same rate by all buyers. These technologies generate the majority of ‘run rate’ revenue in the IT industry. When IT industry growth opportunities are discussed, the focus often turns to earlier-stage technologies. Sellers of these technologies tend to focus on advanced segments (large accounts, particularly in leading-edge industries). SMBs are generally viewed as a secondary market.

Four IT Maturity Segments

However, the SMB market is not a monolith. Techaisle research has identified four attitudinal/behavioral segments that have different approaches to IT adoption. Suppliers who understand the scope and characteristics of these segments are able to expand their target markets and develop strategies geared to reaching high-potential SMB prospects. These suppliers ultimately have access to an expanded TAM, and have the insight needed to align marketing investments with priority customers.