Sanjeev Aggarwal's Blog

November 27, 2012

Report Card: 2012 Top 10 SMB Technology Market Predictions

–by Laurie McCabe and Sanjeev Aggarwal, SMB Group

Before developing our 2013 predictions, we wanted to assess how we did on our 2012 Top 10 SMB Technology Predictions. Here’s our take–please let us know what grades you would have given us!

And stay tuned for our Top 10 SMB Technology Predictions for 2013, which we will post in a couple of weeks!

Note: On this grading scale, 5 means that we came closest to hitting the mark, and 1 means we missed it entirely.

Prediction Score

Comments

  1. Economic Anxiety Lowers SMB Revenue Expectations and Tightens Tech Wallets
4 Year-over-year data from our annual SMB Routes to Market Studies
indicated that more small and medium businesses (SMBs)* were forecasting flat or decreased IT spending heading into 2012 compared to 2011. Given SMB budget constraints and the plethora of solutions aimed at SMBs, vendors had to work harder to convince budget-constrained SMBs that their solutions would really help address top SMB business challenges to attract new customers, grow revenues and maintain profitability. More SMBs turned to lower-risk, pay-as-you-go cloud options, and several vendors (IBM, Dell and HP, to name a few) introduced new and/or enhanced financing options to help SMBs overcome financial hurdles.
  1. The SMB Progressive Class Gains Ground
5 We identified a distinct category of SMBs that we termed “Progressive SMBs,” who see technology as integral to achieving business goals and to gaining a competitive edge. Progressive SMBs invest more and purchase more sophisticated solutions than their counterparts. Trending analysis from our 2011 to 2012 Routes to Market Studies show that the percentage of SMBs in the Progressive category is growing. Furthermore, Progressive SMBs continue to gain ground over SMBs that skimp on technology in terms of expected business performance.
  1. The SMB Social Media Divide Grows
5 SMB adoption of social media did indeed jump, from 44% to 53% among small businesses (and from 52% to 63% among medium businesses from 2011 to 2012, based on trending analysis in our SMB Social Business Studies. The divide between social media haves and have-nots is also growing: our research reveals that 65% of SMBs that use social business tools anticipate revenue gains, while only 17% of “non-social” SMBs expect revenues to increase.
  1. Cloud Becomes the New Normal
4 SMBs haven’t swapped out all of their on-premises solutions in favor of the cloud–but the puck is clearly moving to the cloud in all application areas. The evolution is continuing at a steady pace, as evidenced by trending analysis in our annual SMB Routes to Market Studies. In some areas, cloud is poised to overtake on-premises solutions. For instance, over 30% of SMBs that purchased or upgraded collaboration, marketing automation, BI and data backup in the past 24 months chose cloud, and over 40% of SMBs planning to purchase solutions in those areas in the next month plan cloud deployments.
  1. Mobile Application Use Extends Beyond Email to Business Applications
5 SMBs significantly ramped up mobile business application use and plans in 2012, as evidenced by trending analysis from our annual SMB Mobile Solutions Studies. More SMBs are providing mobile business apps to employees in categories ranging from CRM to time management to expense reporting. In addition, adoption of external-facing (for customers, partners and suppliers) mobile apps and websites also rose considerably. For instance, SMB use of a mobile-friendly website is up 10% among small businesses and 23% among medium businesses.
  1. Increased SMB Business Intelligence (BI) and Analytics Investments Are Sparked by the Social-Mobile-Cloud Triumvirate
3 The avalanche of data generated by cloud, social and mobile has certainly created the need for better analytics. However, year-over year trending data from our SMB Routes to Market Studies reveals a mixed bag in terms of adoption. Use of BI solutions among medium businesses spiked 24% in the past year, but adoption rose just 2% among small businesses. While vendors appear to be doing a good job of developing and marketing BI solutions tailored to the needs of medium businesses, they have not yet figured out the right formula for smaller ones.
  1. Managed Services Meet Mobile
5 We forecast that the explosion of mobile devices and apps, “bring your own device” (BYOD) phenomenon and the increasing concerns about security would spark increased demand for and more solutions to manage mobile on the back-end. Our annual SMB Mobile Solutions Studies show that SMB adoption of mobile management services—from simple device management to comprehensive mobile management platforms—has accelerated rapidly. For instance, 16% of SMBs have already deployed an outsourced mobile management platform, and 30% plan to do so within a year.
  1. The Accidental Entrepreneur Spikes Demand for No-Employee Small Business Solutions
5 Small businesses without a payroll make up more than 70% of America’s 27 million companies. We hypothesized that the 2008 recession and subsequent layoffs generated a new and often “accidental” breed of entrepreneurs that would spike demand for—and growth of—applications targeted to meet the needs of these businesses. And they have. New and improved cloud-based and mobile apps from traditional small business powerhouses (Sage, Intuit, Microsoft, Google, etc.), SOHO pioneers (Freshbooks, Nimble, Dropbox, Zoho, etc.), and freelance talent sourcing solutions from companies such as Elance and oDesk are making it easier than ever for SOHOs to get their work done.
  1. Increased Adoption of Collaboration and Communication Services in Integrated Suites
4 Trending from our Routes to Market Study Medium businesses shows that overall, use and plans to deploy collaboration solutions is up year-over-year. Low-cost, low-risk, cloud-based collaboration and communications services have made it easier for SMBs to use integrated collaboration tools, while eliminating the inconvenience of using multiple sign-ons and interfaces.
The fact that vendors are integrating more into their offerings—such as Google integrating Google+ hangouts, IBM SmartCloud Engage adding social communities and Citrix adding video capabilities to GoToMeeting—doesn’t hurt either.
  1. The IT Channel Continues to Shape-Shift.
5 Cloud, social and mobile trends continue to reshape how channel partners must deliver value across the board. SMBs are increasingly choosing to purchase directly from software and cloud vendors in most areas. And Managed Service Providers (MSPs) have gained ground as a purchase channel over VARs in several solution areas, including security, BI and collaboration. The need for more specialized business and/or technology expertise has also made some types of channel players more relevant in each specific solution category than others.

*In SMB Group Syndicated Survey studies, we define small businesses as those with 1-99 employees, and medium businesses as having 100-999 employees.

For more information on our most recent SMB Mobile, Social Business and Routes to Market Studies, please visit our website, www.smb-gr.com, or contact Sanjeev Aggarwal, Sanjeev.aggarwal@smb-gr.com, 508-410-3562.


January 10, 2012

Cisco OnPlus: IT Infrastructure Advisory and Management Services Solution For Small Businesses

Last month, Cisco introduced a new IT Infrastructure advisory and management service solution designed for VARs  to provide to small businesses with less than 100 employees. Delivered via Cisco’s value-added reseller (VAR) channel, Cisco OnPlus enables VARs to offload the mundane, time consuming tasks of managing a network environment from small businesses, and provide them with higher value advisory services.  In addition to monitoring and managing network infrastructure devices, such as switches, wireless access points and routers, OnPlus also monitors devices that are connected to the network (including smartphones and tablets).  VARs can deploy a small OnPlus Network Agent appliance at the customer site, and remotely monitor and manage it through the cloud via a secure web portal or mobile application..

Perspective

 Cisco’s OnPlus IT infrastructure advisory and management service solution is designed to meet the needs of small businesses. SMB Group’s 2011 SMB Routes to Market study indicates that small businesses’ top technology related challenges include: Gaining ‘peace of mind’ that IT is under control (40%), Containing IT costs (38%), Finding/hiring qualified IT staff(35%), Upgrading IT infrastructure(34%), Protecting business from IT related failures(32%), Getting more done with fewer/flat IT resources (26%). As illustrated in Figure 1, Cisco’s OnPlus with Assess, Manage, Advise, Maintain features helps directly address several of these technology challenges.

Several IT infrastructure monitoring and management solutions are available for small and medium businesses (SMBs) ,  but they are often cost-prohibitive for many small businesses. Cisco’s hybrid solution, consisting of an agent embedded in a small network appliance and a secure cloud service, is aimed squarely at VARs that provide managed services to small businesses. These companies often lack dedicated IT staff and tend to depend on part-time IT people or external contractors to manage IT. With scarce resources typically stretched thin, small businesses are often unable to keep up with the demands of routine technology management–let alone support growth goals with new technology solutions.

At the same time, many VARs are looking for ways to quickly and efficiently offer remote management services to their small business customers, and the ability to provide more proactive guidance and management advice.

Figure 1: Cisco OnPlus – Comprehensive IT Infrastructure Management for Small Businesses

Source: SMB Group, January 2012

 Cisco OnPlus gives VARs an efficient way to expand their managed service offerings through remote management and visibility into the customer  network and the devices attached to the network. VARs simply plug the OnPlus Network Agent appliance into a switch or router on the customer’s network, and the OnPlus Agent then transmits information about the customer’s network and all connected devices to a secure data center for access by the VAR (see figure 2). Native apps for Apple and Android mobile devices are available for free from those companies’ app stores. The VARs have the flexibility to define their own business model for using OnPlus.  Some  will add additional fees based on their coverage and response times. Others will use OnPlus to enhance their service capabilities without additional charges to their customers.  In addition, VARs can use OnPlus as a tool to accelerate pre-sale assessments with prospective customers.

Figure 2: Cisco OnPlus Solution Service Data and Communications Flow

Source: Cisco, 2011

Cisco OnPlus appliance discovers Cisco and third-party devices with an IP address connected to the network and displays them in topology and inventory views. Partners can access a real-time view of customer networks from anywhere, through a highly secure portal using a PC, tablet, or mobile device. VARs work with small businesses to define and customize alert thresholds. Through OnPlus, VARs can also provide small businesses with automated reports of all the activity and tasks performed on the network.

Pricing is $250 (approx.  $7 per month, after typical discounts), which includes a three-year OnPlus subscription and the network agent appliance that is installed at the customer site. The OnPlus service from Cisco is available now in U.S. and Canada, with a rollout in Europe and Asia planned for 2012.

Quick Take

Cisco OnPlus delivers cost-efficient scalable IT management and peace of mind that small businesses need without sacrificing the local VAR that many SMBs want to do business with. On the VAR side, it provides a fast, efficient way to onboard customers into a managed service practice, provide more proactive services, and provide more efficient service to more small businesses customers.  With the advantages, Cisco OnPlus should be very attractive to Cisco VARs and enable Cisco to make significant inroads in the small business segment.

That said, Cisco OnPlus can significantly strengthen its story by:

  • Offering additional functionality in the areas of IT asset utilization and management (both hardware and software) to support compliance
  • Providing additional performance management solutions
  • Making it an extensible solution so that VARs can easily add additional value-added solutions like remote backup, Infrastructure on-demand, and business continuity services
  • Help VARs position and demonstrate the value of OnPlus as a comprehensive IT infrastructure management solutions vs. a network management solution
  • Demand generation marketing to educate small businesses about the benefits of managed services

However, Cisco continues to invest in and develop solutions for small business, and OnPlus provides strong evidence that Cisco understands both small business pain points and how to create solutions that provide clear benefits to its partners. Cisco’s OnPlus should be a big step forward in helping Cisco VARs to move beyond the role of network product suppliers to become more strategic managed service providers.

April 16, 2010

Highlights from Iron Mountain Digital 2.0 Industry Analyst Meeting

Highlights: The overall annual growth in data volumes is beings driven by an increase in unstructured data created by social media and collaboration solutions, mobile solutions and rich media which is leading to much higher costs for information storage and management. This problem is further exasperated as the information creation moves from customer on-premises sources, to now include mobile edge devices and the cloud. SMBs and mid-market enterprises now need to take a much more holistic approach to information management. Driven by the need to support compliance, litigation, business continuity and disaster recovery requirements – SMBs need to carefully consider who they partner with as their trusted guardian of their information considering their need to store, protect, manage and retrieve this information in a virtual world anytime, anywhere, and anyplace.

Quick Take: I’ve been following Iron Mountain for a while, and this was their 3rd. analyst event that I attended. Everyone recognizes Salesforce.com as a cloud solution market leader; I would venture to say that the 2nd biggest cloud solution and services provider is Iron Mountain Digital. Key insights from the conference are:

  • Shift in company focus from Storage-as-a-Service to ‘Integrated Information Management Solutions‘ that is based on a location agnostic strategy – from on-premise to edge to cloud

  • Key Value Propositions to address the customers Total Cost of Ownership/Total Cost of Management of Information include:
    • Help customers reduce their spend and risk in owning / storing their rapidly growing information through policy-based intelligent information storage and access
    • Help customers improve operational efficiencies and reduce their spend in managing their information for use
    • Trusted partner in information management for both physical and electronic records and information, and in bridging from one to the other in terms of document conversion, data restoration, scanning, etc. 

What makes Iron Mountain different?

  • Information management platform with intelligence-driven and policy-enabled applications. This has been enabled through internal development and innovation (Digital Record Center for Compliant Messaging, for example), partnering (Total Email Management Suite, powered by Mimecast), and a carefully crafted acquisition strategy that started with Connected® and LiveVault® for backup to recent acquisitions that include Stratify® for eDiscovery and Mimosa for archiving.
  • Unique capabilities
    to “look into” and “look across” information
    . This will help with categorization of data – even at the point of creation – to enable intelligent access, compliance (including risk management), discovery, recovery, destruction and other potential use cases

  • Trusted partner who is financially strong. There are several companies offering remote backup solutions, and hosted email archiving, including you local VAR. But will these companies be around when you need the information 10-20 years from now for compliance purposes or to support litigation?
     What is still missing? Iron Mountain is accumulating a good war chest for location-agnostic information management solutions. They do have global relationships with large enterprise and upper mid-market companies – developed as the dominant leader in the physical information management services business that includes the storage of paper documents and magnetic tape storage media for backup and archiving purposes. They serve the SMB market through some core services, through direct and indirect channels. However, in my opinion, there is a larger opportunity in the SMB and core mid-market that includes:

    • Backup and archiving to support daily operations for desktops, servers and mobile devices
    • Backup and archiving to support business continuity and disaster recovery
    • Information management to support risk and compliance management
    • Virtualization of servers and desktops, and cloud computing is creating new and unique information creation and management opportunities which need to be addressed. The vendors that address these solutions (on public clouds based solutions) will be in the unique position to provide the services that Iron Mountain Digital 2.0 is seeking to provide. 

The first mover vendors will gain tremendous benefits, as these solution partnerships are now easy to replace – Iron Mountain can attest to this with their decade-long relationships with a large percentage of their customers. Iron Mountain needs to craft an SMB and core mid-market strategy with a more aggressive go-to-market plan than what I see at present.


 

October 4, 2009

Could Video Conferencing become the SMB segment ‘Killer App’ ? At least Cisco thinks so with the Tandberg acquisition!

Good move by Cisco. The key beneficiary of Cisco’s acquisition of Tandberg will be the SMB and mid-market. Cisco already has video Telepresence solutions. However, these Telepresence solutions are primarily enterprise solutions – way beyond the affordability of the SMB (1-499 employees) or the mid-market enterprises (500-1000 employees). Both segments together are referred to as SMB in this blog.

The SMBs and vendors (that service this segment) are rapidly comprehending the business value and short-term ROI that Video Conferencing solutions offer. The global SMB video conferencing solutions and services market opportunity is around $150M in 2010 and forecasted to grow at an annual rate of around 9%. The SMB segment purpose built, cost effective, standards based solutions (from vendors like Tandberg and Polycom) coupled with rapidly declining prices of high throughput network bandwidth are now making the SMB video conferencing market very interesting.

In my 2 previous blogs, I have addresses the market opportunity for these solutions and vendors that provide solutions: Video Conferencing Solution – Now Affordable by the SMBs, SMB’s turning to Conferencing Solutions in tough economic times

Tandberg has an extensive video conferencing solutions family purpose built for the SMB market. With the introduction of the Quick Set C20 solutions, they have priced these solutions more in-line with what the SMB market can afford. What Tandberg lacked was a channel that could sell and service the SMB market – hence, not much of a installed base.

What does Tandberg bring to the Cisco-Tandberg party?

  • A complete set of video conferencing solutions for the SMB market that are standards based
    • Personal, desktop to conference room based video conferencing solutions
    • Desktop video conferencing phone with E20 and the MPX desktop solutions
    • PC based video conferencing with Movi
    • Conference room based solutions from standard def. to HD with the Quick Set C20
  • Almost no product overlap between Cisco and Tandberg in the SMB segment
  • The recent acquisition of Nortel Enterprise Div. by Avaya makes them the market leader in the SMB IP Communications segment. Cisco’s differentiation for these products was diminishing. Adding video conferencing to the Cisco product portfolio will provide the required differentiation.

What does Cisco bring to the Cisco-Tandberg party?

The Cisco/Tandberg pairing will open-up opportunities for Polycom to work with vendors such as Avaya, Nortel, HP (a Tandberg partners) – as they compete with Cisco in the SMB segment.

Cisco’s strength in integrating some of the SMB segment based acquisitions has been less than stellar, especially in the collaboration area. Acquisition such as WebEx, Jabber, PostPath have lost the momentum they once possessed before the Cisco acquisition. Hopefully Cisco will do a better job integrating Tandberg.

One private company (which is a partner of Tandberg) that will make a good acquisition target for Cisco is Broadsoft. They could provide Cisco the push and presence with the global service providers for hosted VoIP and Unified Communications solutions that Cisco currently lacks or are not much of a competitor.

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March 27, 2009

Can Cloud Computing and Managed Services Resolve the Telecom Crisis?

Filed under: Channels, Cloud Computing, Dynamic Computing, Managed Services, mid-market, SaaS, SMB strategy — Tags: , , , , , , , , — sanjeevaggarwal @ 5:18 pm

The telecom dilemma is not new, the failure of telecom network service providers to leave their legacy technologies and embrace the all-IP world has not materialized as anticipated, especially in helping them generate significant revenues. They are still dependent on a handful of commodity services, even when one considers their cellular operations. They have not succeeded to create mobile IP applications that would have provided the growth engine – Apple with their iPhone platform is successful leading that effort.

Telecom companies (like AT&T, Verizon, BT) are painfully aware that their existing services telephony (PSTN services are experiencing a rapid decline and mobile services are also experiencing stagnation; some growth in VoIP services), Internet access markets are experiencing slow growth as adoption reaches saturation, and their Managed Services are still not breaking even as they not widely promoted. However, what these giant Telecom companies have going for them is that they still own the networks that power the cloud and large data centers in the cloud.

These companies need to introduce new services if they are to gain new and retain existing customers and grow revenue streams. If they can partner with some strategic global vendors and develop a vision to monetize these assets, they can become a key player in the cloud ecosystem. The current turbulent economic conditions provide the market disruption that provides an entry for these Telecom based partner ecosystem.

‘Cloud Computing and Services’ presents this market disruption, an opportunity for the telecom companies, as enterprises and SMBs look for alternatives to significantly reduce their capital and IT staff expenditures to more flexible pay-as-you-use operational expense models – if they can address IT needs of the enterprises and SMBs, not just ISVs or custom application developers (the existing cloud computing vendors are primarily addressing the needs of the software developers).

Cloud Computing and Services presents is a significant growth market opportunity. As the management/services of IT infrastructure and applications accounts for a more than 60% of the total IT spend, IT segments getting more specialized, cost and complexity of data centers increasing exponentially – enterprises and SMBs are looking for alternate IT solutions that can help these enterprises focus on their core business. This represents a very significant revenue and growth market opportunity in cloud computing and services for solutions that address the IT needs of mainstream enterprises and not only tech savvy software developers.

The significant Telecom companies surely have the financial resources to do this. However, they need to transform and act more like a technology company – partner with the technology companies that are successful at developing and implementing compelling new ideas – with go-to-market urgency, marketing prowess, technology partnerships with vendors that are market leaders and can bring channels to quickly reach the enterprise and SMB businesses, easy-to-understand and implement business models, and proactive customer service models.

The question is can these traditional Telecom companies comprehend and exploit the market momentum for this opportunity – Can they be aggressive and innovative like the IT technology and Web 2.0 companies or will their traditional bureaucratic structure relegate them to a me-too status!

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March 19, 2009

Why are SMBs and Mid-Market Enterprises interested in Cloud Computing?

Filed under: Cloud Computing, Dynamic Computing, Managed Services, mid-market, SaaS, Security, SMB strategy — Tags: , , , , , , , , , , , , — sanjeevaggarwal @ 2:02 pm

As SMBs and mid-market enterprises are looking at their IT budget and face the realities to cut them, they look at what is discretionary and what can be supported through innovative IT strategies. However, at the same time they need to adopt new technology solutions that will make them more competitive in the current economic environment and prepares them to grow when the economy improves. They following arguments shed light on why these companies are actively exploring various cloud computing initiatives:

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February 23, 2009

Cloud Computing and Managed Services Opportunity – Is it the Large Enterprises or SMB/Mid-Market Enterprises?

Filed under: Channels, Cloud Computing, Dynamic Computing, Managed Services, MSP, SaaS, Segmentation, SMB strategy, Storage — Tags: , , , , , , , , , , , , , , — sanjeevaggarwal @ 7:11 pm

The convergence of web delivered IT services – Cloud Computing, Infrastructure-as-a-Service, Hosted Applications, Software-as-a-Service, Virtualization – will continue to redefine and add value to the SMB/mid-market IT services landscape, especially in the current economic climate.

Our outlook calls for rapid increase in adoption of various Cloud Computing and Managed Services components over the next 2-3 years as businesses look to cut costs and reduce capital expenses. This adoption will still be on a piece-meal – with Online Storage/Archival and related services, Hosted applications, Business Continuity/Disaster Recovery and SaaS delivered Business Applications being the most sought-after capabilities (SMB/Mid-Market Key IT Initiatives in the Current Market Environment blog). We see early adoption of these services starting in 2008-2009 and gaining more momentum into the mainstream market by 2011-2013 when the global economy emerges from the current financial conundrum.

It is interesting to see some of the SaaS companies like Salesforce.com focus on small number of enterprise accounts which account for half of their revenues through their direct sales force (they don’t have much of a channel presence). Even in the recent earnings call for NetSuite (again majority of the focus is on direct sales with some VAR efforts), all the financial analysts had questions only on the large account focus. In the U.S.(total 6.5 million businesses with commercial locations), there are less than 0.1% large enterprises(more than 1000 employees) and 0.4% midmarket-enterprises(500-999 employees); the remaining 99.5% are SMB companies. As the low hanging opportunities in large enterprises are already converted into customers, the growth of these SaaS companies is slowing. Why the continued focus on large enterprise, direct sales focus?

Well, to begin, if a vendor is serious about selling to the SMB segment, they should first seek to become their market channel, or connect to their channel – a strategy and value proposition they need to create. The SaaS value propositions that convinced the large enterprises do not always work well for the elusive SMB segment, which is a much more difficult and complicated market, but offers tremendous revenue potential. Although, with somewhat different value propositions, pricing and revenue models.

Who are the well positioned channels or links to the channel to enable selling to the SMB and mid-market enterprises? This can be addressed by segmenting this SMB/mid-market market and then looking at the channels that are well positioned to sell to the various segments based on the existing relationships and touch points. A topic for a future blog!

The vendors that have a good lead in the cloud computing segment are Amazon.com, some of the hosted services vendors like Rackspace and Savvis, and managed services vendors like Iron Mountain, IBM, BT and EMC. Virtualization will play a big role in this migration; vendors like Citrix, VMware and Microsoft are developing cloud services and platforms to help virtualize the data centers of some of the cloud solution and services vendors. Who out of these vendors understand how to navigate the complex SMB segment?

Cloud Computing and managed services providers (and their technology partners) need to learn from the business models of SaaS companies and early cloud computing vendors. Then put in place strategies and channels to capitalize on the huge IT services opportunity in the SMB and mid-market enterprises that lack the IT and financial resources of large enterprises, outside of the small number of technologically sophisticated SMBs and software developers (ISVs) that are the early adopters and have the IT resources to leverage the cloud solutions and services. In addition, by taking advantage of the internets’ low-cost marketing and delivery capabilities, companies can profitably mine the “long tail” of the SMB market.

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February 6, 2009

IBM Dynamic Infrastructure Announcement and the Mid-Market Enterprise

Filed under: Channels, Cloud Computing, Dynamic Computing, Managed Services, MSP, SaaS — Tags: , , , , , , , , — sanjeevaggarwal @ 2:46 pm

With today’s ‘Dynamic Infrastructure’ initiative announcement, IBM is positioning itself as a holistic technology solution and service provider and partner. It combines all the element of separate cloud delivered services (cloud based, managed, and on-premise) and also traditional on-premise hardware, software and services.

If IBM is to become a trusted partner of mid-market enterprises, they need to present a vision of a holistic technology/solutions partner that understands the mid-market enterprise and the value proposition that IBM’s Dynamic Infrastructure brings. Several vendors can offer pieces of these solutions like managed services or SaaS, etc., but no single vendor has the experience, product/services portfolio, industry experience and partner/ISV ecosystem to become this trusted partners. IBM has the market presence, solutions and partner ecosystem to be this vendor with the ‘Dynamic Infrastructure’ initiative.

Why will IBM be more successful with this strategy in the mid-market?

Several vendors have offered pieces of this service successfully to the SMB and mid-market. However, the mid-market enterprises has limited IT resources and technology expertise. Some of these businesses have adopted segments of this type of solution, piece-meal from several different vendors. Vendor A provides managed security service, vendor B provides online backup service, the vendor C provides on-premise virtualization solutions, etc. When the mid-market enterprise experiences problems – they don’t know who to turn to. Some managed service providers (MSPs) are re-inventing themselves as aggregators of several of these services and have started to see partial success. These MSPs lack some of the deep industry/technology expertise and also some of the flexible computing cloud computing infrastructure that provides the reliability, high-availability and SLA’s essential for getting the mindshare of mid-market enterprises for whom things like these are critical.

How will this service resonate with mid-market enterprises in today’s tough economic climate?

What IBM needs to do to win in the mid-market enterprise with this initiative?

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January 30, 2009

SMB/Mid-Market Key IT Initiatives in the Current Market Environment

Filed under: Cloud Computing, Managed Services, Mobility, Security, Storage — Tags: , — sanjeevaggarwal @ 4:23 pm

Recently (December’08), I had the opportunity to participate in a CFO/CIO panel with participants from New England SMB/mid-market businesses, organized by Managed Technology Partners. The topic of the panel discussion was ‘What key IT initiatives that are still being considered and issues to be considered in the decision-making processes’. Looking at the current turbulent economic conditions, SMBs and mid-market enterprises are under tremendous pressures. Most of them have never experienced these types of market conditions before. Given that, most of the panel members and attendees had a very positive attitude.

The discussion centered on not only the key IT initiatives in the current market environment but also some of the key consideration that need to be taken into account in the decision process.

Decision making process needs to take into account some key considerations:

The key IT initiatives that made it to the top of the list are:

There was also conversation around the need for a strategic focus on IT and planning to ensure IT meet the business needs, both short and longer term.  Also, to ensure technology decisions are part of a larger discussion that provides for better prioritization, opportunities for economies of scale, making sure decisions are not make in silos, and the financial impact as it relates to other initiatives and objectives.

We are in a period of unprecedented changes to the business climate that will challenge both vendors and solutions providers in ways never seen experienced in the past. To be successful, vendors and solution providers need to take a focused approach with solutions and messaging that address the above considerations and issue.

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January 27, 2009

Cloud Computing and Services – Can this provide the market disruption in the current economic environment!

Filed under: Cloud Computing, Dynamic Computing, Managed Services, SaaS — Tags: , , , , , , — sanjeevaggarwal @ 8:27 pm

Cloud computing and services include any subscription-based service that is delivered over the internet in real time, providing flexibility by extending an enterprises internal IT resources, staff and expertise. It encompasses several of the web-based solutions/services listed below.

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