SMB Trends The Channel Needs To Know
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SMBs Ready To SpendThere were signs last quarter that SMBs were releasing pent-up Information and Collaboration Technology (ICT) demand and AMI expects they will tentatively transition out of survival mode and focus on opportunities for business expansion.Key priorities include enhancing existing customer relationships, improving business efficiencies, and above all else, growing revenue. SMBs Ready To Spend There will be increased use of collaborative tools, improved networking and implementing disaster recovery plans.
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Midmarket To Focus On CollaborationMedium businesses are focused on more effective collaboration among employees, and this will come in the form of more enterprise IT solutions such as CRM, ERP and server virtualization. Larger firms will also invest in overdue security and storage upgrades.
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Show Me The BenefitsBusiness decision-makers are much more involved in the purchase process of ICT and they will require stronger justification for purchases that can directly translate into bottom line results. Phrases such as “save time” and “save money” will need to be heavily supported with hard numbers and proof of outcome. Vendor trust will also be critical, with brand familiarity continuing to be a leading factor behind ICT purchasing. To overcome sales barriers, new vendors can promote other lead factors such as total cost of ownership (TCO), scalability, and solution alignment with long-term goals.
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Cloud Momentum To Grow, But…Cloud computing adoption will continue to climb in 2010 (as well as interest), but SaaS marketers will need to reduce confusion, misinformation and apprehension in order to convert interest into actual purchases. SMBs will require extra handholding in 2010 to fully understand the specifics of how their businesses can benefit from flexible payment terms, scalable solutions, and other inherent benefits, amplifying the need for channel partners to clearly communicate their value proposition and continue efforts to educate SMB customers.
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Social Media Goes StrategicGrowing numbers of SMBs will begin using social media to monitor, measure, and manage their image at the brand, product and services levels. They will continue to adopt digital marketing media to reach customers.Although the number of SMBs using social media as a source for business intelligence is small it will grow significantly in 2010 as the value of the tool becomes more obvious. BI tools are now being used by SMBs to focus more on business growth and results, and not just internal efficiency and cost control.
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Focus On Total Solutions Consolidation in the IT industry, convergence between hardware, software and services, and economic pressures are forcing channel partners to find new revenue streams, leading to the growth of “Total” IT solution providers in the SMB market.A high number of large mergers and acquisitions in the IT industry over the last couple of years has led to more vertical integration in the IT industry. Vendors that were once strategic partners in the IT space are now competitors. VARs that have typically been hardware-focused are now required to also get up to speed on integration or managed services in order to provide the entire portfolio of the vendor’s solutions to SMBs.
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New Revenue StreamsAdding solutions to their portfolio to grow revenue means the need for more training and support. For channel partners, training and support are becoming as important as financial incentives to allow them to effectively market their new portfolio of solutions and services. Channel partners realize that in this environment they need to be able to offer not only the product but the additional ‘value’ to SMBs to differentiate themselves from competition.
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MSP Capabilities ChasmA small, but influential, breed of MSPs will continue to refine their business model and approach to better target and address SMBs’ needs, causing an unbalanced mix of abilities and competence in the managed services space. Last year saw greater MSP emphasis on automation through remote monitoring and management software andthe first wave of key acquisitions and IPOs. In 2010, AMI expects these themes to continue but at a hastened pace.
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MSPs Have To Get Better There will be a lot more white-labeling, co-branding opportunities and countless new service offerings. Stand-out MSPs will widen the chasm between the rest, causing an unbalanced mix of abilities and competence within the managed services marketplace.In 2010 and beyond, MSPs have to get better at swiftly identifying and offering innovative managed services without reinventing the wheel, effectively communicating their value proposition in the managed services ecosystem and marketing and self-promotion to standout in the chaos.