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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 10 SMB and Midmarket Predictions for 2021

In all sectors, 2020 was a challenging year – and as a result, 2021 is challenging from a market planning perspective. The disconnect between 2020 and 2019 was so severe that it rendered spend forecasts virtually useless: IT suppliers reacted to shifting market trends in real-time. As we enter 2021, IT product and service suppliers look to create a context for understanding the range of outcomes that the new year may bring. Techaisle's 2021 report series illuminates issues and requirements in the vast SMB market to support that effort. To start 2021, here are our top 10 predictions.

1. Digital inequality will be more important than the digital divide
2. Quest for reinvention, innovation, resiliency will drive bursts of incremental transformation goals
3. The hybrid workplace will require HR focus and drive adoption of workspace, workflow solutions
4. Meaningful customer partners and not trusted advisors will determine supplier success
5. Pragmatism will overtake progressiveness in technology adoption for a future-ready organization
6. Requirements for automation and enhanced IT services will become time-critical
7. Security and risk mitigation will focus on a safe middle ground
8. Systems of insight will move into the analytics mainstream
9. AI will arrive as a capability integrated within other solutions
10. Open source adoption will become an indicator of cloud success

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Study shows SMBs are considering five critical cloud planning and strategy issues

With renewed growth prospects, SMBs looked to platform technologies to support new initiatives in still-uncertain times. Agility has become the watchword for new automation projects, and acceptable timeframes cannot be in months. There are few absolute certainties in technology, but one subject beyond debate is that the cloud has permanently changed how technology is deployed and consumed within SMBs. What are the key issues that SMBs are considering when planning their cloud strategy as they identify the portfolio of products/services that best meet their "new normal" business needs? Five key issues have become intrinsic to the development of SMB cloud strategy:

1. Cost

Within SMBs, the cost is always an issue in business decisions. However, with the cloud, the cost is taking on additional meanings. Cost is not only a reduction in CAPEX or OPEX. Cost also relates to the missed revenue that may result from an inability to address new market demands. Cost is a function of needing to recover from a catastrophic event within the business. Cost also relates to a perception that competitors are pulling away or realizing that business, as usual, is no longer enough – that traditional approaches are no longer sufficient. Cost, across these many dimensions, has become an essential factor in building a cloud strategy.

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Dell Technologies emerges as a new compelling challenger in the as-a-service market

HPE is not the only game in town. Dell had announced its entry into the aaS arena in 2017 with PCaaS on the client-side. Dell Technologies, the only IT supplier with an end-to-end portfolio, announced its latest foray into the "as-a-service" (aaS) arena with Project Apex, which it hopes will take Dell Technologies' aaS capabilities to the next level. Its objective is to unify Dell's as-a-service and cloud strategies to provide a consistent experience wherever a workload runs - on-premise, at the edge, or in the public cloud. Project Apex aims to simplify customers' and Dell Technologies partners' access to Dell's as-a-service portfolio. The first product, Dell Technologies Storage as a Service (ST-as-a-service), delivers a pay-per-use model and elastic capacity and is deployed on-prem but fully managed by Dell at the initial launch. The key enabler of Project Apex is the Dell Technologies Cloud Console. This single web interface enables customers to manage their cloud workloads and services, available to a few select early customers with a wider roll-out in 2021. Dell has a long road ahead with "everything-as-a-service" as a final destination. After STaaS, Dell is expected to roll out compute-as-a-service (COMPUTEaaS), PCaaS, Data-protection-as-a-Service (DPaaS) and vertical solutions (SAPaaS). PC-as-a-Service (PCaaS) is already available. Apex will enable it to move from a bundled, "leased" offer tying software and services to each device in an annual price per seat to modern, flexible aaS capabilities providing customers with tailored offers of hardware, software and services delivered over the air and accessed/ managed through a single portal enabling customers to seamlessly scale up and down specific to their unique needs and renew effortlessly, with one simple price per month.

HPE may have the lead, but nobody can claim a victory lap as yet. It is too early to declare a winner. Dell is a compelling challenger. It matters to SMBs, Midmarket firms, Enterprise customers and Partners.

Cloud, private cloud, and conventional infrastructure are three parts of a whole. Dell Technologies is currently betting on it by providing simplicity, consistency, and flexibility. However, the current branding of solution offerings of Dell Technologies Cloud Platform and Dell Technologies On Demand will need to merge quickly to avoid digressing and having complex customer conversations on the merits of each. And then, there is the VMware Cloud, which adds to the choice complexity.

Let us discuss why the as-a-service challanger status matters to SMBs, Midmarket firms and Dell Technologies' Partners.

Why the announcement matters to SMBs and Midmarket firms

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Top 5 technology areas where midmarket firms are increasing investment

Techaisle worldwide survey of midmarket firms shows that collaboration, security, cloud, remote work and digital transformation are the top five areas where midmarket firms are increasing technology investments.

techaisle top 5 technology areas midmarket

Collaboration: 72% of midmarket firms are increasing investments in collaboration solution as compared to 15% who are either decreasing or delaying investments. Collaboration is a central component to virtually all business activities and is evolving in response to new market conditions and those collaborative technology solutions are being acquired which are positioned as a framework that integrate and extend the value of discrete capabilities, rather than as a “first step” platform.

Security: 69% of midmarket firms are increasing investments in security solutions. IT security is no longer being viewed as a necessary and unwelcome cost, rather as an enabler of business solutions, a viewpoint that is reinforced by a clear need for IT security in the face of increasing threats to information security and business continuity. Effective security practices are going beyond merely “raising the shields” around users, data and networks – they are being seen as enabling innovation throughout the IT/business infrastructure.

Cloud: 66% of midmarket firms are increasing investments in cloud. Cloud addresses real-world IT issues and business challenges. Cloud represents a powerful way of addressing budget constraints: cloud infrastructure can be deployed quickly and at low cost. Cloud is linked with mobility solutions, particularly security solutions, as data that is accessed via a mobile device can be available anywhere/anytime via cloud, but remain separate from the devices themselves, protecting corporate information from loss or theft or malware. And cloud’s pay-as-you-go approach meshes very well with the need to align IT investment with business benefits.

Remote work: 65% of midmarket firms are increasing investments in remote working. Mobile devices, technologies and services are perhaps the most exciting space today, remaining resilient even in a downturn. Midmarket firms are investing to automate control of sprawling mobile assets. The list includes security solutions (MDM, mobile app security, secure mobile data sharing) that address widespread concern over the exposure that accompanies mobility, as well as methods of automating management (mobile network control, enterprise mobile management) and of deploying infrastructure tuned to the needs of mobile workers (Windows-as-a-Service, VDI, DaaS).

Digital transformation: 61% of midmarket firms are increasing investments in digital transformation. Mature cloud adoption does not equate to high digitization of the business. Data shows that only half of the 47% of mature midmarket cloud adopters are holistic adopters of digitalization. It is true that these firms believe in cloud and its effect on digitization but they also believe that true digital transformation requires advanced adoption of multiple technology solutions. The roadmap to successful digital transformation begins with the creation of a sound physical infrastructure - the ‘building blocks’ or ‘foundations’ of business infrastructure.

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