• SIMPLIFY. EXPAND. GROW.

    SIMPLIFY. EXPAND. GROW.

    SMB. CORE MIDMARKET. UPPER MIDMARKET. ECOSYSTEM
    LEARN MORE
  • FEATURED INFOGRAPHIC

    FEATURED INFOGRAPHIC

    2024 Top 10 SMB Business Issues, IT Priorities, IT Challenges
    LEARN MORE
  • CHANNEL INFOGRAPHIC

    CHANNEL INFOGRAPHIC

    2024 Top 10 Partner Business Challenges
    LATEST RESEARCH
  • 2024 TOP 10 PREDICTIONS

    2024 TOP 10 PREDICTIONS

    SMB & Midmarket Predictions
    READ
  • 2024 TOP 10 PREDICTIONS

    2024 TOP 10 PREDICTIONS

    Channel Partner Predictions
    READ
  • IT SECURITY TRENDS

    IT SECURITY TRENDS

    SMB & Midmarket Security Adoption Trends
    LATEST RESEARCH
  • CLOUD ADOPTION TRENDS

    CLOUD ADOPTION TRENDS

    SMB & Midmarket Cloud Adoption
    LATEST RESEARCH
  • FUTURE OF PARTNER ECOSYSTEM

    FUTURE OF PARTNER ECOSYSTEM

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

    BUYERS JOURNEY

    Influence map & care-abouts
    LEARN MORE
  • DIGITAL TRANSFORMATION

    DIGITAL TRANSFORMATION

    Connected Business
    LEARN MORE
  • MANAGED SERVICES RESEARCH

    MANAGED SERVICES RESEARCH

    SMB & Midmarket Managed Services Adoption
    LEARN MORE
  • ARTIFICIAL INTELLIGENCE

    ARTIFICIAL INTELLIGENCE

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

    WHITE PAPER

    SMB Path to Digitalization
    DOWNLOAD

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.
Anurag Agrawal

121 percent likely increase in adoption of vertical industry cloud solutions within US SMB and Midmarket segments

Industry-specific solutions that connect digital capabilities to real-world challenges are critical factors in transitioning from digitalized to digitally transformed organizations. In the past few years, globally, a clear trend has emerged of offering cloud solutions for vertical industries. Financial services, healthcare, and industrial equipment manufacturers have witnessed high adoption of such solutions. US SMB and Midmarket cloud adoption trends research by Techaisle shows that there is likely to be 121 percent increase in the adoption of vertical Line of business cloud solutions within the next year. Top adoption growth will be for ERP solutions.

Corresponding Techaisle channel research finds quantitative, meaningful, and actionable differences between channel partners who successfully sell cloud and those that have not developed successful cloud practices. Industry expertise and the ability to offer vertical solutions is one key area that is creating a distance. Channel partners providing vertical solutions are 2.6 times more likely to be very successful than their less/not successful counterparts.

Techaisle's channel survey research data shows that 60% of successful cloud channel partners emphasize their industry expertise and industry knowledge during their interactions with their clients. Conversely, 60% of not-so-successful partners lead with their technical knowledge, and 43% lead with price. These channel partners lack the understanding of their customers' businesses needed to offer sophisticated cloud solutions. They claim that they can demonstrate an understanding of their customer's business needs, mainly at a technical level, but get constrained by a lack of vertical application availability and experience. Only 26% of very successful partners lead with price. They can demonstrate knowledge of the industry and are therefore able to create confidence within their clients. They are also the most likely to build and maintain long-term relationships with customers.

Most channel partners position themselves as "your one-stop solution provider." However, the approach is coming under pressure. More successful channel partners focus on understanding how technology can benefit business processes. Understanding the connection between vertical business processes and IT represents a kind of expertise that will support a long-term billable relationship between "trusted advisor" channel partners and clients. This kind of relationship will become more important than the capacity to deliver IT as a horizontal solution source.

Techaisle's channel research reveals that a channel partner serves an average of 8.0 verticals but lacks deep expertise in all verticals. Vertical applications stand out as the solution needed by SMBs, midmarket, and enterprise firms the most, but only a tiny percentage of channel partners offer them.

Almost all channel partners agree that manufacturing, healthcare, retail, and financial services segments are the fastest growing with high demand for cloud business applications. Customer-facing apps (50%) and apps that support internal processes/operations (48%) are the top two in-demand applications, followed by solutions that replace legacy apps (36%), apps that involve AI/ML (27%), and IoT (14%).
techaisle industry vertical cloud solutions

Research You Can Rely On | Analysis You Can Act Upon

Techaisle - TA