• FEATURED INFOGRAPHIC

    FEATURED INFOGRAPHIC

    2022 Top 10 SMB Business Issues, IT Priorities, IT Challenges
    GET IT NOW
  • 2022 SMB & MIDMARKET PREDICTIONS

    2022 SMB & MIDMARKET PREDICTIONS

    Top SMB & Midmarket Predictions for 2022
    READ NOW
  • 2022 CHANNEL PREDICTIONS

    2022 CHANNEL PREDICTIONS

    Top SMB & Midmarket Predictions for 2022
    READ NOW
  • SIMPLIFY. EXPAND. GROW.

    SIMPLIFY. EXPAND. GROW.

    #SMB #MIDMARKET #UPPER MID-MARKET #CHANNEL
    LEARN MORE
  • NEXT CHANNEL - THE FUTURE OF PARTNER ECOSYSTEM

    NEXT CHANNEL - THE FUTURE OF PARTNER ECOSYSTEM

    Networked, Engaged, Extended, Hybrid
    DOWNLOAD NOW
  • BUYERS JOURNEY

    BUYERS JOURNEY

    Influence map & care-abouts
    LEARN MORE
  • CLOUD RESEARCH

    CLOUD RESEARCH

    SMB & Midmarket Cloud Adoption
    LATEST RESEARCH
  • DIGITAL TRANSFORMATION

    DIGITAL TRANSFORMATION

    Delivering Connected Business
    LEARN MORE
  • SECURITY RESEARCH

    SECURITY RESEARCH

    SMB & Midmarket Security Adoption Trends
    LATEST RESEARCH
  • MANAGED SERVICES RESEARCH

    MANAGED SERVICES RESEARCH

    US SMB & Midmarket Managed Services Adoption
    LEARN MORE
  • CHANNEL PARTNERS

    CHANNEL PARTNERS

    Transformation or Consolidation
    LATEST RESEARCH
  • ANALYTICS & ARTIFICIAL INTELLIGENCE

    ANALYTICS & ARTIFICIAL INTELLIGENCE

    SMB & Midmarket Analytics & Artificial Intelligence Adoption
    LEARN MORE
  • WHITE PAPER

    WHITE PAPER

    SMB Path to Digitalization - Prologue and Epilogue
    DOWNLOAD
  • HYBRID WORK IS HERE TO STAY?

    HYBRID WORK IS HERE TO STAY?

    NOT SO FAST SAYS THE DATA
    ANALYSIS
  • SAAS RESEARCH

    SAAS RESEARCH

    US SMB & Midmarket SaaS Adoption
    LEARN MORE
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15

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.

VMware – threading the SMB needle

VMware has been in the news recently – a valuable asset for Dell, caught between the Dell-EMC deal (see analysis of the deal here). Just a couple of months ago VMware had its VMworld, a forum for VMware to articulate its strategy to customers, partners, media and analysts. VMware’s 2015 theme “Ready for Any” was centered on the challenges that IT professionals are facing today - security, mobility, application delivery and hybrid cloud – and the company’s strategy of supporting “One Cloud, Any Application, Any Device” as a means of empowering IT management to respond to these challenges. VMware’s vision is to “enable an architecture that lets IT deploy or consume capacity from a cloud without having to worry about the physical location or who the vendor is. To do this VMware wants make sure that different form factors of the cloud (private, public, managed, etc.) connect or are transferable”.

Hybrid IT, including hybrid cloud, is no longer an appealing future proposition; it is a current reality as workloads increasingly run internally on a highly-optimized virtual environment connected to a public cloud, and public cloud resources are being widely used for developing and testing applications to be deployed on private or hybrid clouds. Many workloads process data in the public domain and simultaneously store sensitive data in the traditional data center to meet regulatory and compliance guidelines. Techaisle’s SMB & midmarket cloud adoption survey shows that within SMBs, use of hybrid cloud will continue to increase as both a conscious strategy and as a reaction to use of both public and private resources within a single infrastructure; hybrid use is expected to top 40% within the small business market, and will be used by two-thirds of companies with 100-999 employees.

Over the last two years, as virtualization penetration within enterprises has been slowing, VMware has been broadening its solution portfolio to deliver solutions for management and delivery of on/off-premise IT infrastructure. As a result, VMware’s product line has grown beyond compute: it rolled out vSAN for storage, NSX for network, and vRealize for management. Last year, VMware announced its vision of software-defined data center (SDDC) and introduced EVO:RAIL, which ties VMware software to partner hardware for a hyper-converged appliance. In the most recent VMworld this vision was extended to EVO:RACK: while EVO:RAIL was positioned as "SDDC in a box" suitable for midmarket businesses, EVO:RACK (now marketed as VMware EVO SDDC) is aimed at large enterprise customers. In Techaisle’s view, vSAN and EVO:RAIL are also relevant solutions for SMB customers looking to adopt hyper-converged infrastructure.

In 2014, VMware had announced integration between on-premise vSphere and VMware's own public cloud (vCloud Air) enabling businesses to migrate workloads to a VMware-based public cloud. In 2015, VMware extended the narrative to announce Unified Hybrid Cloud - built on SDDC and vSphere - to enable IT professionals run, build, deliver and secure any application, anytime and anywhere. Despite new offerings it is common knowledge that VMware still lags Amazon Web Services and Microsoft Azure in the public cloud market.

VMware is continuing its investment in network virtualization and in the future of NSX. It announced NSX 6.2 with added features such as inter vCenter NSX support, universal firewall rules and security groups, and Trace flow. Techaisle assumes a bigger game changer to be the integration between virtual and physical networks when VMware and partners such as HP complete the support of OVSDB in NSX to manage hardware virtual tunnel end-points (VTEPs).

Key market context

While enterprise market may be saturated, virtualization adoption within SMBs is far from over. Techaisle’s SMB & midmarket Server Virtualization adoption market trends study shows that US SMB server virtualization penetration has reached 54 percent (un-weighted), up from 41 percent two years ago. Within midmarket businesses the penetration has reached 88 percent and another 7 percent are planning adoption in the next year. Across the entire SMB community, there has been a 45% increase in off-premise virtualized servers in the past two years, an enormous shift that highlights the broader shift towards remote management of infrastructure resource. VMware has positioned itself to capitalize on the immense SMB opportunity, however, it needs to have a sales motion that is specifically targeting net new customers within SMBs rather than “mining” the installed base as in enterprises.

The real VMware SMB story is in EUC – enabling untethered mobility

The real story and opportunity for VMware, though, is in end-user computing.

Continue reading
  0 Comments

HPE – doubling down to be SMB’s IT partner of choice

HP has split into two – HP Inc. and Hewlett Packard Enterprise (HPE). Almost all SMB relevant products and solutions (except PCs and printers) now reside within the HPE organization. The global small and midmarket businesses, SMB (1-999 employee size) market has been the growth engine for the IT industry at large. The reason is quite simply that SMBs account for over 80 percent of businesses in any country – developed or developing. As per Techaisle, SMBs are forecast to spend US$597 billion on IT in 2015. Their IT requirements range from servers, networking and storage to cloud, mobility, analytics, managed services and collaboration solutions. Today, most SMBs are looking towards IT suppliers that offer appealing value propositions in either of three IT delivery models – traditional infrastructure built on-site from hardware and software components; hosted solutions and/or applications most often purchased on a “pay as you go” model; and, cloud infrastructure delivered on-demand.

HPE – the new incarnation of HP and its focus on SMBs with Flex solutions

Since the launch of its “Just Right IT” portfolio (September 2010) for SMBs, HPE has been striving to better serve its SMB customers by consciously lowering cost of solutions, improving agility in deployment and enabling faster time to value in managing IT assets. Just Right IT includes products, services and solutions specifically engineered for SMBs. The portfolio offers management, data protection, communications and connectivity solutions that are designed and priced "just right" to deliver affordability and value to SMBs. These solutions revolve around HPE’s core offerings of servers, storage and networking which comprises of:

  • Servers: ProLiant MicroServer, ProLiant 10 Series Servers, ProLiant 100 Series Servers, ProLiant 300 Series Servers
  • Networking: 1950 Switch Series, R100 Wireless VPN Router Series, Cloud Managed Networking, and 2920 Switch Series
  • Storage: Solutions for the virtualization, SQL Server, Exchange, File sharing and Backup

In November 2015, soon after the split, HPE announced a new portfolio of ProLiant Generation 9 (Gen9) Servers (ProLiant DL20 Gen9 and ProLiantML30 Gen9) that are specifically engineered for SMBs to help reduce cost and complexity to run the new style of IT, web, collaboration, and business workloads. HPE is hoping that the new server portfolio advances its vision for compute and the future of data center technology.

HPE also announced its Flex solutions which bundles various services around its server, storage and networking products including support services, financial services, ISV software, distribution services, and management. It is specifically targeted at three different segments of SMB market at the low end of which are the SMBs who are “starting out” and at the high-end are the SMBs who are “expanding their business”. This does align well with what Techaisle analysts find in Techaisle’s SMB & Midmarket IT Sophistication Segmentation as shown below.

Continue reading
  0 Comments

SAP Anywhere - finally a purpose-built front office solution for SMBs

SAP, Europe’s largest software vendor is ramping up its solutions and marketing strategy to boost its SMB market share. Although SAP claims that 80% of its customers are SMBs (largely due to Business One and the Concur/SuccessFactors acquisitions) it is viewed as a company selling large & complex enterprise applications. Some of us who have been in the IT industry long enough remember heated debates in many business board rooms - “Fire the CEO, CFO or SAP?” - nobody dared to fire SAP. To change that perception SAP has been shaping its SMB lens for a while. In a discussion, almost on cue and pre-empting any question on the topic, EJ Jackson, EVP & GM, SAP Anywhere, said, “SAP Anywhere is a solution focused solely on the SMB space. I know whenever one hears the term SME and the words SAP; many shrug their shoulders or sigh a little because historically SAP has thought of companies with two or three thousand employees as a small company. In the case of SAP Anywhere we are actually looking at companies under 1,000 employees, truly in the 500 and under range where SAP Anywhere is focused at this point in time”.

SAP Anywhere – purpose-built for SMBs

SAP recently launched its SAP Anywhere solution for SMBs. It is a purpose-built unified front office application that combines sales, inventory management, order processing, commerce, marketing programs, mobile point-of-sale, customer support & engagement capabilities in one complete solution enabling multi-channel commerce with a multi-channel marketing platform. It is intended to be a mobile first/digital first solution with a high degree of focus on ensuring that it is low touch, quickly deployable (can be deployed within 40 hours) and easily extensible.

Toby Davidson, VP of SAP's SMB Solutions Group, reinforces the point that SAP Anywhere is purpose-built for SMBs, “…it has been built from the ground up specifically for the SMB market segment. We're not taking a large enterprise application and scaling it down to serve functionalities to the small business. That often doesn't work. What we have done is we have built the application from the ground up specifically for the small and medium business, the sub-500 space in mind for the functionality that's being delivered.”

Let us step back for a minute to understand when SAP’s clear and present focus on SMB began. In July 2014, SAP launched SMB Solutions Group, a division focused entirely on the needs of its SMB customers. The aim of this structuring was to address the technology demands of smaller companies, expand SAP’s own business opportunities as it built momentum into the SMB space. Since then the group has been re-formulating SAP’s SMB strategy and building simplified, integrated business applications powered by SAP HANA delivered via the cloud - squarely aimed at solving SMB business challenges.

Prior to SAP Anywhere, SAP’s SMB offerings included:

  • SAP Business One: offering sales and customer relationships, financials and operations through dynamic ERP software
  • SAP Business ByDesign: runs entire SMB business in the cloud through a single solution (designed for upper SMBs)
  • SAP Business All-in-One: to automate core processes for fast-growing SMBs with industry-specific ERP solutions’ requirements
  • Others solutions include SAP Crystal Solutions, SAP Lumira, and SAP Edge Solutions

SAP SMB strategy – loyal customers make it worthwhile

SAP’s strategy for selling applications to the SMB market segment has at best been ambiguous in recent years. Though its products are well designed, the problem has been with their positioning in the market. Its flagship SMB solution, SAP Business One had limited success with SMBs. However, Techaisle’s many discussions with SMBs and midmarket firms in different countries reveals that there are many die-hard SAP Business One users. As one CIO of a 175 person pharmaceutical company in India said, “SAP Business One enables a single integrated visibility to the senior management for effectively running the business operations. Moreover, it consolidates business operations of multiple subsidiaries and offices across country-wide network. SAP has also improved its quality of solution - now we can manage everyday inventory, enable faster sales and purchase processes, perform analysis for business growth, and provide better customer relationship and support”.

Continue reading
  0 Comments

Coming wave of midmarket collaboration adoption drivers

Techaisle’s SMB & Midmarket Collaboration adoption survey research shows that collaboration is already entrenched within many midmarket businesses. While the creation of a central information repository was the most important business driver for collaboration solutions adoption to the “first wave” of midmarket users, it is not so for the new buyers. Leadership’s desire to move forward with collaboration initiatives was the second most important driver for first wave of adopters, the need to meet leadership expectations is widespread within future adopters as well but this issue has been surpassed by the need to enable faster innovation within the new adopter group.

Key business drivers for collaboration are changing within SMBs and midmarket businesses. Specifically, within midmarket businesses, future collaboration adoption efforts will be driven by demands for decision agility, speed of innovation, customer intimacy and faster time to market.

Early midmarket collaboration solution users tell Techaisle that they were frequently investing in these solutions because a lack of teamwork was impacting productivity. New adopters are saying that they are having difficulty coordinating meetings (as a consequence of increased employee mobility, dispersed team members, ad hoc scheduling), and that they need to address slow decision-making within their organizations. In the Techaisle survey midmarket businesses also rated “need for faster innovation” as the third most prevalent driver for collaboration solutions.

The figure below shows the changes in adoption drivers from early adopters to the new wave of adopters for whom collaboration is one of the top IT priorities for business success.

techaisle-midmarket-collaboration-adoption-drivers

The first wave of users focused on asynchronous file-sharing cloud services. Looked at as a whole, there are several distinct generations of collaboration solution drivers within midmarket businesses. The first wave, reflected in the early users within the midmarket business segment was reacting to a requirement to create a central repository of information, to leadership mandates and to the need to coordinate geographically-dispersed teams. The next generation of midmarket business collaboration solution adopters will emphasize collaborative responses to specific pain points – slow decision making, difficulty in coordinating meetings, faster innovation – more than their predecessors.

A deeper review of the midmarket data in the Techaisle study provides additional context for the discussion of collaboration solution benefit metrics. Speed of customer/prospect response is very firmly positioned as a key determinant of solution success, and the importance of meeting deliverable timelines and decision accuracy are also underscored. Data also shows that businesses with 100-249 employees view a reduction in the cost of collaboration as a key success metrics.

The type of collaboration solution adoption data shows that the next stage in the collaboration platform/framework is the ability to enable richer online interaction by allowing simultaneous sharing and editing of files from PCs and mobile devices, to enable multiple simultaneous communication modes, mobile video collaboration and to integrate social networks thereby extending collaboration initiatives from file sharing to more interactive solutions.

Mobility is a key driver and a key support requirement for collaboration. There is a sound basis for believing that mobility has extended demand for collaboration solutions and collaboration investment priorities emphasize inclusion of mobile devices. It is expected that mobile video will drive the highest proportion of new technology needs. Data also shows that enabling teamwork and dealing with new mobility/geographic challenges will be a key investment driver and that individual employees will have a greater voice in shaping solution demand. For the IT staff deploying support for multiple simultaneous communications modes (text, chat, voice, and video) will be a key technology requirement.

Techaisle believes that this reflects a couple of broad trends: the initial centricity of file sharing to a more interactive communications in collaboration strategies, a recognition that there are now many different ways to connect midmarket employees beyond email and a move away from collaboration solutions as a stand-alone platform (like email) and towards collaboration solutions as a framework for integrating multiple capabilities.

  0 Comments

Search Blogs

Find Research

Blog Archive

Research You Can Rely On | Analysis You Can Act Upon

Techaisle - TA