SMB Group's 2011 Top SMB Technology Trends
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SMB Group's 2011 Top SMB Technology Trends

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Presented by Laurie McCabe on January 18, 2011 WITI (Women in Information Technology) webinar.

Presented by Laurie McCabe on January 18, 2011 WITI (Women in Information Technology) webinar.

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SMB Group's 2011 Top SMB Technology Trends SMB Group's 2011 Top SMB Technology Trends Presentation Transcript

  • 2011 Top 10 SMBTechnology Market Trends January 18, 2011 Laurie McCabe, Partner SMB Group www.smb-gr.com
  • 2011 Top 10 SMB Technology MarketTrends 1. Mobile Commerce Lifts Off 2. SMBs Demand Order for Social Media Chaos 3. Apps Stores Become a Key Information Source 4. The Shift to Cloud Computing Becomes Irreversible 5. A New Cloud Channel Model Forms 6. Transitioning to the Insight Economy Gets Easier 7. Tablets Add Fuel to the Mobile App Explosion 8. Integration Becomes a Key Business Solution Differentiator 9. Hybrid Computing Accelerates Virtualization 10. Continued Convergence of Communication and Collaboration 2
  • Top Challenges for Small and MediumBusinessesTop business challenges Top technology challenges1. Growing revenues 1. Get better business insights2. Attracting new customers from existing data3. Improving cash flow 2. Figuring out how different4. Maintaining profitability solutions can help the business5. Reacting quickly to changing 3. Implementing new solutions market conditions and upgrades 4. Integrating social media with Web site, marketing tools, etc. 5. Keeping my systems up and running (Source: SMB Group 2010 SMB Routes to Market Survey) 3
  • 1. Mobile Commerce Lifts OffWe’re going mobile…• Mobility market will reach $1 trillion by 2014• 37% of US smart phone users have made a purchase on handsets in last six months o 19% purchased music o 14% bought books, DVDs or games o 12% have purchased movie tickets• 32% of Android and 29% of iPhone users willing to spend $100+ from their handsets• 27% of all consumers used mobiles to browse and research products at 4x/12 month period. With the Internet in our pocket or• Mobile payments market expected to purse, it’s only a matter of time quadruple by 2014 to $630bn--5% of total before mobile commerce really ecommerce sales takes off.• SMBs will enable mobile commerce to build business and grow revenues! (Sources: Gartner, ATG, Juniper, ABI, comScore) 4
  • SMB Use and Plans for Mobile Transactions Small Business Add/view/change 42% 42% personal information SMS contact the sales 40% 42% or support contacts Sharing--post pictures, 40% 42% documents, etc Shop/buy products 38% 39% Check delivery status 32% 37% of my orders Pay for products, 31% 42% goods, or services Pay 31% 35% bills/invoices/balances Check invoice status 28% 35% Log and track product and/or service 24% 44% requests Manage/administer 23% 34% transaction accounts Deposit/withdraw/tran 23% 24% sfer funds Make payments/transfers to 22% 28% Current Plan third parties 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% % Valid Cases Sample Size = 570 Source: SMB Group, 2010 SMB Mobile Solutions Study 5
  • 2. SMBs Demand Order for SocialMedia ChaosDid you know???• More than 3.5bn pieces of content (web links, news stories, blog posts, etc.) are shared each week on Facebook• The average number of tweets/day was over 27.3m—in 2009—adding up to 10bn/year• 70% of bloggers are organically talking about brands on their blog.• 84% of consumers say online reviews influence purchases• More than 700,000 local businesses have active Pages on Facebook Social media volumes and venues are multiplying— word of mouth on steroids!!! 6
  • SMBs Demand Order for SocialMedia ChaosHow much time do you spend to to Social Media Managementtrack, converse, monitor and manage helps you bring order toyour company’s presence and the chaos!!!brand??? • Create content in multiple places, monitor and scan views, respond on different sites, etc. • Track and analyze online listings, comments, ratings, reviews, etc. about your business and your competitors • Scan Twitter followers for conversations to join • Check RSS feeds • Check Google Alerts • Create and monitor relevant communities and topics 7
  • SMBs Demand Order for SocialMedia Chaos BatchBlue “social CRM”Social media management solutionshelp you to manage incoming andoutbound online interactions moreefficiently•Save time by managing and integratingcustomer interactions across multiplesocial media venues and with other HubSpot inbound marketingmarketing activities (web site, searchengine marketing, email marketing, etc.)•Gain a more unified view of yourcustomers and marketing•Drive more business with social andonline marketing investments Marchex Reputation Management•Spot new opportunities and areas thatneed improvement•Benchmark yourself with competitors 8
  • 3. SMB App Stores Become a Key Information Source and Channel“Figuring out how technology Application stores help solutions can help my streamline the discovery, business” is the #2 technology evaluation and selection process challenge for business apps• Sorting through different •One-stop shop to find, try and technologies, geek-speak and buy hype is tough •User-generated reviews,• Today: SMBs turn first to rankings search engines, vendor emails •Expert commentary, tips, advice and vendor websites and resources •Find apps that work with those you already use 9
  • SMB App Stores Become a Key InformationSource and Channel (Source: SMB Group 2010 SMB Routes to Market Survey) 10
  • 4. The Shift to Cloud Computing BecomesIrreversible• Cloud infrastructure will grow to $116.5 B by 2014: Forrester• 20% of all businesses will own no IT assets by 2012: Gartner• Global cloud computing market will to 121.1B in 2015: MarketsandMarkets.com• “Hockey stick growth for cloud computing”: Steve Ballmer, Microsoft Cloud Computing Survey Points to Arrival of Cloud Thinking 11
  • The Shift to Cloud Computing BecomesIrreversible Customers Vendors “Faster, cheaper, easier” “New revenue streams, efficiencies”• Eliminates capital investments for • Penetrate new markets reducing infrastructure costs and technology barriers• Eliminates ongoing technical • Predictable recurring revenue management and update costs stream• Reduces financial risks • Provides a real-time pulse on• Reduces requirements for customer behavior and internal IT expertise requirements• Speeds time to solution value • Enables cross-selling opportunities• Increases vendor accountability• Evolves more flexibly • Reduces support calls and costs• Provides connectivity and • More manageable upgrade cycle collaboration advantages • Capitalize on economies of scale• Focus on business results and skill 12
  • The Shift to Cloud Computing Becomes IrreversiblePercentage of respondents using cloud solutions: Online Marketing 27% Collaboration 27% Contact and customer management 25% Business Analytics 25% Web site design/hosting 10% Acctg., Financial, ERP 9% Small Business 0% 5% 10% 15% 20% 25% 30% Valid Cases % Online Marketing 20% Business Analytics 10% Contact and customer management 9% Web site design/hosting 8% Medium Business Collaboration 5% Acctg., Financial, ERP 0% 0% 5% 10% 15% 20% 25% Valid Cases % (Source: SMB Group 2010 SMB Routes to Market Survey) 13
  • 5. A New Cloud Channel Model FormsTraditional Software Channel Model Cloud Solutions Channel Model• Indirect channel is an integral • Doesn’t align with traditional part of sale, delivery and support software/vendor channel roles of on-premise business software• Cloud vendor delivers much of• Complements software developer what IT channel traditionally with sales, implementation, provided (sourcing, installation, support and service management, etc).• Little overlap between software • Blurs the line between software develop and channel roles developer and channel roles Cloud Traditional IT Software Channel Channels End-user Developer Customer Less New upfront $$? skills? Smaller deal size? 14
  • A New Cloud Channel Model Forms Myth! • Cloud vendors have focused on direct sales to establish growth and demonstrate viability • But--direct sales alone can’t fuel the Cloud vendors can future growth curveeffectively penetrate the • The cloud and SaaS eliminate/reduce technical barriers market through direct to adoption—but customers still Web channels alone need help to: o Evaluate and select the “right” solution o Tailor the solution o Integrate legacy and third-party solutions o Adapt business processes o Train people 15
  • A New Cloud Channel Model Forms Vendors Channel Partners• Authentic channel commitment • Think solutions, not products−• “Right sized” partner programs from solutions reseller to to avoid channel conflict solutions catalyst and “trusted advisor”• Collaborative approach • Extend the solution with o Quotas jointly determined opportunities to resell, develop o Reward renewal as well as and integrate additional sales functionality o Marketing and sales programs • Adjust the business model o Billing models o Prepare for smaller deal sizes and faster deployments o Joint customer service tools o Align skills, metrics, etc.• Compensation geared to o Plan for different cash flows different partner types o Referral commission only, upfront + annuity, etc. 16
  • 6. Transitioning to the Insight EconomyGets Easier• 1.2 zettabytes of digital information will be created in 2010• A zettabyte is 1,000,000,000,000,000,000,000 bytes (thats 21 zeroes!)• Online video, social networking sites such as Facebook, digital photography, cell phone data all contributing to the data pile-up• Annual amount of bytes we collectively produce forecast to soar 44X over the next decade (Source: 2010 IDC and EMC study) 17
  • Transitioning to the Insight EconomyGets Easier “Information is not knowledge.” − Albert Einstein •“Information overload” (Alvin Toffler) refers to the difficulty a person can have understanding issues and making decisions because of TMI--too much information •#1 technology challenge for SMBs: “Getting better business insights from the data we already have” (Source: SMB Group 2010 SMB Routes to Market Survey) 18
  • Transitioning to the Insight EconomyGets Easier• Until recently—BI has • Help measure and manage usually been too complex the business and expensive for most • Interactively slice and dice small businesses data for “what-if” scenarios• New on-demand BI geared • Streamline data collection, for SMBs analysis and reporting • Get everyone “on the same page” • Help you zero in on a specific task—financial analysis, spend analysis, pipeline management, online marketing, etc 19
  • 7. Tablets Add Fuel to the Mobile AppExplosion• A majority of SMBs already Mobile App Stores Use and use smartphones Plans• SMB tablet adoption--In less My company already uses Aware and planning to uss Aware, but no plans to use Not aware of this than one year (e.g. iPad, Dell Streak, etc.) is already RIM Blackberry AppWorld strong: 16% 11% 52% 22% o 10% of small businesses are using tablets o 22% of medium Apple iTunes AppStore 22% 16% 54% 9% businesses are using tablets Google Android Apps MarketPlace 20% 15% 55% 10% 0% 20% 40% 60% 80% 100% 120% Source: SMB Group, 2010 SMB Mobile Solutions Study 20
  • Tablets Add Fuel to the Mobile App Explosion Medium Business Small Business Customer management 53% 35% Customer management 65% 21% Social media marketing 33% 36% Field service applications 50% 34% Time management & time capture 31% 33% Time management & time capture 46% 36% Delivery & shipment applications Delivery & shipment applications (order 29% 29% 39% 33% (order & shipment tracking, etc.) & shipment tracking, etc.) Field service applications 25% 31% Social media marketing 37% 29% Payment processing 25% 26% Business analytics 35% 34% Employee payroll 23% 19% Sales force automation applications 35% 28% Supply chain integration/inventory Business analytics 21% 29% management/Direct store delivery 32% 27% Mobile marketing and advertising 17% 42% Payment processing 31% 29%Sales force automation applications 17% 22% Mobile marketing and advertising 30% 40% Supply chain integration/inventory 14% 24% Employee payroll 30% 21% management/Direct store delivery Current Current Planned Fleet asset tracking 9% 14% Planned Fleet asset tracking 25% 30% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% % Valid Cases % Valid Cases Sample Size = 570 Sample Size = 143 Source: SMB Group, 2010 SMB Mobile Solutions Study 21
  • 8. Integration Becomes a Key BusinessSolution Differentiator• Cloud computing gives SMBs an easier, more affordable and manageable way to deploy and use business and collaborative apps, social media, payments gateways, etc.• Data stores are growing• Challenge is to get apps to “talk” to each other—synchronize, exchange and share information and processes• But integration has remained a challenge o Cloud-to-cloud o Cloud-to-on premise Ratchets up the need for simpler, cheaper integration• Often complicated, expensive, and one- alternatives! off 22
  • Integration Becomes a Key BusinessSolution Differentiator• SMBs require turnkey integration to gain full value from technology solutions• SMB integration options are growing o Comprehensives integrated business suites o Solutions that come with embedded integrators for common integration scenarios o App stores that streamline integration among participating solutions o On demand turnkey integration services and marketplaces o Integration appliances• Integration will become a make or break factor in “short list” decisions 23
  • 9. Hybrid Computing RequirementsAccelerate Virtualization Adoption • Top data center priorities: o Agility o Managing resource capacity better • Top business trends affecting data centers: o Increase in apps and data o Security and risk management o Need to reduce costs 24
  • Hybrid Computing RequirementsAccelerate Virtualization Adoption • But vendors will need to invest to educate SMBs about cost savings, management and provisioning benefits • Help overcome concerns about security, stability and management of virtualized environments 25
  • 10. Continued Convergence ofCommunication and Collaboration Solutions• Online collaboration suites and hosted unified communication Email, IM solutions integrate pieces of Soft phones , Real time the collaboration puzzle feeds VoIP• Makes it easier to find, share, manage and use information, locate and connect with the Wikis/Forum Calendars s people you need when you Online Collaboration need them. Suites• Delivered as web-based services Web File sharing o Login using a web browser conferencing o Monthly or annual per user subscription pricing model Workspaces Document mgt. 26
  • Continued Convergence ofCommunication and Collaboration• Collaboration is the only business activity that every employee engages in every day• Share and manage info, ideas, resources and connections more effectively• Make the business more efficient and productive• Plans to adopt new collaboration solutions o 20% of small businesses o 32% of medium businesses (Source:SMB Group 2010 SMB Routes to Market Survey) 27
  • 2011 Top 10 SMB Technology MarketPredictions 1. Mobile Commerce Lifts Off 2. SMBs Demand Order for Social Media Chaos 3. Apps Stores Become a Key Information Source 4. The Shift to Cloud Computing Becomes Irreversible 5. A New Cloud Channel Model Forms 6. Transitioning to the Insight Economy Gets Easier 7. Tablets Add Fuel to the Mobile App Explosion 8. Integration Becomes a Key Business Solution Differentiator 9. Hybrid Computing Accelerates Virtualization 10. Continued Convergence of Communication and Collaboration 28
  • Q&A Laurie McCabelaurie.mccabe@smb-gr.com www.smb-gr.com SMB Group
  • About SMB Group• SMB Group is a industry research, analysis and consulting firm that focuses on technology adoption and trends in the small and medium business (SMB) market.• We help our clients to successfully: o Identify market trends and opportunities. o Understand and segment the SMB market, and the technology solution adoption drivers and inhibitors. o Evaluate and act upon competitive threats and disruptive trends. o Develop more compelling messaging. o Position solutions for growth and competitive advantage. o Identify emerging market trends, technologies, solutions and their impact on the SMB market and ecosystem. o Develop SMB market segmentation models 30