How much of your system integration revenue comes from small- to mid-sized businesses? If it’s less than a third, you may be missing out on a lucrative, relatively underserved market.
For several years, SMBs have been rapidly adopting cloud technology, typically to host easily implemented Software-as-a-Service applications. Cloud computing is a natural fit for organizations that operate on tight budgets yet need a platform that’s scalable, flexible and easily managed.
According to Techaisle, just over 80% of SMBs are either currently connecting or planning to connect their on-premises environments (including private clouds) to external public clouds. “These
firms are responding to a need to enable digital transformation of their business operations,” the research firm stated.
A Forbes-commissioned survey (conducted in late December 2020 and early January 2021) found that 78% of SMBs have either begun their digital transformation or plan to do so.
Most SMBs have dozens of applications, magnifying their needs for system integration. That, coupled with their rapid move to the cloud, opens boundless opportunities for system integrators to win new customers in the SMB market.
COVID-19 wreaked havoc on companies and economies of all sizes around the world. SMBs suffered greatly, but most have been adaptive and resilient.
SMB Group’s March 2020 survey of SMBs found that 75% were experiencing a negative impact as a result of the pandemic, and 60% of these companies anticipated their revenue would shrink by at least 30% over the next six months.
After struggling to survive through 2020, SMBs are now ready to get back on track. Much of the budgets they originally planned for security, infrastructure upgrades, and other initiatives were diverted to enabling a remote workforce and conducting more business online. Consequently, in 2021, SMBs are in catchup mode with their 2020 plans.
Most SMBs are reporting that budgets in 2021 are about the same as, or higher than, their 2020 budgets. A recent Techaisle survey found 45% of US SMBs in the highgrowth category, with IT budget increases ranging from 7.5% to 15%.
According to Gartner, Inc., scalable cloud computing is enabling organizations of all sizes to cut their costs and rapidly accelerate their digital business transformation plans. “Recent Gartner survey data indicates that almost 70% of organizations using cloud services today plan to increase their cloud spending in the wake of the disruption caused by COVID-19,” states a Gartner press release in November 2020 release.