Small and medium-sized businesses
(SMBs) are leading the way to cloud services. In fact, according to analyst
estimates SMBs represent two-thirds of the public cloud market and are growing
much faster as a cloud segment than enterprisesYet, many service providers
(SPs) are wondering whether the rate of SMB cloud adoption makes it worthwhile
to invest in cloud and managed services for SMBs.
Cisco IBSG recently undertook unique
customer research to better understand what SMBs really want from cloud
services and the size and scope of the market opportunity. Highlights of the SMB Cloud research reveal
some interesting findings:
1. SMBs’
awareness of cloud services has dramatically increased, resulting in an audience that is more
discerning and demanding.
2. Nearly
half of SMBs will spend more than one-third of their IT budgets on cloud and
managed infrastructure services in 2013.
3. There
is high, pent-up demand for software as a service (SaaS) and managed
infrastructure services (IaaS) over the next two years. SMBs’ investment plans include advanced
options such as conferencing and collaboration, managed VoIP, storage, and
hosted business apps, in addition to the more basic services they currently
use.
4. Security
assurances and demonstrated business impact are the key buying factors. Service providers need to emphasize that
security is an integral part of the offer to help SMBs make the leap to cloud
and managed infrastructure services.
5. “Services
tailored for SMBs” are the single biggest driver of provider choice. SMBs want offers that reflect an understanding
of their businesses, and don’t want to pay for features they don’t value.
6. SMBs
look for cloud-based and managed infrastructure solutions—not stand-alone, technology-led offers. They
gravitate to integrated solutions that let them accomplish everyday tasks more
efficiently and effectively, without investing time to manage the technology on
which they rely.
7. Service
providers are well placed to take advantage of the SMB opportunity. They are preferred suppliers to SMBs, with
the ability to offer the network-based features SMBs want (such as integrated
security, end-to-end performance, and reliability guarantees).
Now is the time for SPs to invest in
bringing integrated SMB offers to market. To be successful, SPs need an
in-depth understanding of the specific needs and concerns of the SMB market and
should consider partnerships to help them introduce cost-effective, integrated
solutions. Perhaps most important, service providers must be able to credibly
guide SMBs as they embark on cloud investments—helping them overcome barriers
and realize the value of cloud and managed services.
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