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

1. 2011 Top 10 SMB
Technology Market Trends
January 18, 2011
Laurie McCabe, Partner
SMB Group
www.smb-gr.com

2. 2011 Top 10 SMB Technology Market
Trends
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
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3. Top Challenges for Small and Medium
Businesses
Top business challenges Top technology challenges
1. Growing revenues 1. Get better business insights
2. Attracting new customers from existing data
3. Improving cash flow 2. Figuring out how different
4. Maintaining profitability solutions can help the business
5. 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)
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4. 1. Mobile Commerce Lifts Off
We’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)
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5. 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
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6. 2. SMBs Demand Order for Social
Media Chaos
Did 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!!!
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7. SMBs Demand Order for Social
Media Chaos
How much time do you spend to to
Social Media Management
track, converse, monitor and manage
helps you bring order to
your 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
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8. SMBs Demand Order for Social
Media Chaos
BatchBlue “social CRM”
Social media management solutions
help you to manage incoming and
outbound online interactions more
efficiently
•Save time by managing and integrating
customer interactions across multiple
social media venues and with other HubSpot inbound marketing
marketing activities (web site, search
engine marketing, email marketing, etc.)
•Gain a more unified view of your
customers and marketing
•Drive more business with social and
online marketing investments Marchex Reputation Management
•Spot new opportunities and areas that
need improvement
•Benchmark yourself with competitors
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9. 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

10. SMB App Stores Become a Key Information
Source and Channel
(Source: SMB Group 2010 SMB Routes to Market Survey)
10

11. 4. The Shift to Cloud Computing Becomes
Irreversible
• 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'
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12. The Shift to Cloud Computing Becomes
Irreversible
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
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13. The Shift to Cloud Computing Becomes
Irreversible
Percentage 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)
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14. 5. A New Cloud Channel Model Forms
Traditional 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

15. 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 curve
effectively 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

16. 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.
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17. 6. Transitioning to the Insight Economy
Gets Easier
• 1.2 zettabytes of digital information
will be created in 2010
• A zettabyte is
1,000,000,000,000,000,000,000
bytes (that's 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

18. Transitioning to the Insight Economy
Gets 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)
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19. Transitioning to the Insight Economy
Gets 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
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20. 7. Tablets Add Fuel to the Mobile App
Explosion
• 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
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21. 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
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22. 8. Integration Becomes a Key Business
Solution 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
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23. Integration Becomes a Key Business
Solution 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
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24. 9. Hybrid Computing Requirements
Accelerate 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
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25. Hybrid Computing Requirements
Accelerate 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
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26. 10. Continued Convergence of
Communication 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

27. Continued Convergence of
Communication 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)
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28. 2011 Top 10 SMB Technology Market
Predictions
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
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29. Q&A
Laurie McCabe
laurie.mccabe@smb-gr.com
www.smb-gr.com
SMB Group

30. 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
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