SMB Mobile Adoption Disrupts Traditional IT Habits and Spending

We just published SMB Group’s 2014 SMB Mobile Solutions StudyThe survey, which is our fourth annual study in this area, reveals many interesting findings about  how U.S. SMBs are using mobile solutions in their businesses.

For instance, A growing majority of SMBs now regard mobile solutions as essential business enablers, with 60% saying “mobile solutions are critical to our business” (Figure 1). We are also seeing that mobile solutions also account for a growing share of SMBs’ technology budgets, when we compare findings over the past four years, and the composition of spending is changing too:

  • SMB median spending on mobile technology and solutions as a percentage of total technology spending is up from roughly 12% in 2013 to 16% in 2014.
  • Mobile service and device costs still account for the bulk of SMB mobile budgets, but SMB spending in other areas is rising as a percentage of mobile spend
  • SMBs with 10 -999 employees spend 11% of their mobile dollars on apps, 10.5% on security, 11% on mobile management and 8% on consulting

Figure 1:

unnamed

The study also shows that mobile applications are becoming more important to SMBs, not only as a complement to traditional business applications, but even as a replacement in some areas. For instance, mobile access has become the preferred interface for collaboration social media apps for a significant percentage of SMBs.

Furthermore, adoption of bring your own device (BYOD) continues to rise: 59% of SMBs with 10 to 999 employees now support BYOD. The top driver for BYOD is that employees prefer to use their own, familiar devices. However, among the 41% not supporting BYOD, security and management challenges are top impediments to adoption.

As reliance on mobile solutions increases, SMBs have a growing number of mobile apps and more diverse mobile devices to manage. Consequently, adoption of mobile management solutions is rising as well. Currently, 45% of SMBs with 10-999 employees use mobile device management solutions, and 36% use solutions to manage mobile applications.

These results highlight just a few of the detailed findings in the 2014 SMB Mobile Solutions Study. Fielded in November 2014, the study surveyed over 700 U.S. SMB decision makers to provide a comprehensive view of SMB mobile adoption. The full study package includes findings for very small business (1-19 employees), small business (20-99 employees), and medium business (100-999 employees) across relevant areas, including:

  1. Attitudes about mobility
  2. Information sources and decision making for mobile solutions
  3. Mobile app adoption for internal (employee) users
  4. Mobile app adoption for external (customer, partner, supplier) users
  5. Top benefits and challenges in using mobile solutions
  6. Management of mobile solutions
  7. Budgets for mobile solutions
  8. How mobile adoption affects IT spending and behaviors
  9. Segmentation by industry, business outlook, technology spending, etc.

For more information and pricing for complete study results or for a focused segment, please see the study brochure. For a detailed table of contents, send and email to lisa.lincoln70@smb-gr.com or 508.734.5658.

 

 

How Scribe Software Solves the Integration Puzzle for SMBs 

This video interview was originally posted on SMB Group Spotlight. 

Laurie: Hi, this is Laurie McCabe here with the SMB Group Spotlight and today I’m talking to Peter Chase, who is the founder and executive Vice President for Business Development at Scribe Software. Scribe specializes in providing integration solutions both in the cloud and on premise to help business integrate and get more value from their business solutions. So Peter, welcome and thanks for joining me today.

Peter: Thanks for having me.

Laurie: Before we get into a lot of detail about what you guys do can you give us a little bit of background on the company?

scribe logoPeter: We’ve been around for 18 years now, so 1996. We are in the same business we started out in, which is helping companies get their business systems to connect with one another. We sell across the globe so we have customers all over the world. We do about 25% of our business in Europe and we have a large partner network that we work with that help us deliver value to customers across that global footprint.

Laurie: Okay, that’s a good introduction, so given that what you do is integration can you tell us a little bit more about the kind of integration solutions that you provide to small and medium businesses?

Peter: Sure. Most small and medium businesses are using multiple systems. There was a recent Venture Beat survey that said small businesses use somewhere between two to five, on average, different marketing systems just to run their different parts of their business as well as now the advent of CRM and other types of system support, your back office systems. None of those applications were really meant to design to communicate well with one another, especially as we’ve added all of these new cloud applications. So how do we as a small business make sure that we have a single view of the truth around a customer, how do we make sure that we have efficient processes so that when, let’s say some marketing activity, say you’ve done a webinar, how do we know when that prospect shows interest that gets followed up by the sales team while they use different systems. We sort of sit in between and it enables companies to be able to define those data exchanges without having to write code in a visual environment, so it really lowers the barrier for small/medium businesses.

puzzleLaurie: So basically you’re helping them integrate those different workflows among the point solutions, which we’ve found in our research is a very big problem. Most small businesses and even medium businesses have barely touched the tip of the iceberg when it comes to that kind of integration.

Peter: Exactly, and part of that reason is because the barrier to get that done has been so high. You need programmers, you need large IT staffs, and most organizations don’t have those staffs or those specialized skills to be able to do that effectively.

Laurie: Right, and the promise has been a long time from a lot of vendors is that we’re going to make integration easy. How are you guys trying to do that at Scribe?

Peter: Well, there has been a lot of progress in that area, especially in the cloud-based applications with better application programming interfaces, what they call APIs, which make those applications more open, but companies still have to define how they want that information to be exchanged, when it happens, how it happens, and that information isn’t always compatible so you might have to sort of build some business rules and some data rules around how you exchange that data. We provide this nice visual environment that allows you to be able to do that, and not having to be a programmer, just that you understand your data and how you want to exchange it. That really is critical to enabling small/medium business to affect that.

Laurie: So it sounds like it’s a storyboarding kind of thing almost, a WYSIWYG way of kind of way to say I want to integrate this with this, is that what’s really unique or differentiating or are there other things?

Peter: Well there are other products out there that are beginning to do this, I think probably the most unique differentiator that we have is that we work with so many systems integrators and value added resellers that so many of that and big organizations rely on because they don’t have the ability to have all those skill sets, and one of the things we built right into the product is a social capability where using social media type approaches where companies can collaborate with their systems integrators and their VARs and now whether that VAR, they could even have the VAR sort of manage all of that and do a turnkey, or they could collaborate on it, or they could just bring them in when they need them on specific issues. So that sort of building a technology platform that enables that to be an efficient process is so critical.

Laurie: Well that sounds like it would be a huge help because even if small and medium businesses have IT resources they’re often times generalists, so they’re still looking to the partner to help them.

Peter: Yeah, and there are some products out there that are very sort of simple where I can say if this happens then edit then send it here, but most companies need more than that, their systems are very unique to what they do, and their workflows are unique, so in the past they would have to go to either custom programming or very expensive platforms and tools. We sort of bring enterprise capable quality integration availability to small and medium business and that’s what makes us unique.

Laurie: So where can an SMB that hears about this, that wants to learn more, where can they go to learn more and get some way to evaluate the solution and see if it’s a good fit.

Peter: The simplest thing is to go to scribesoft.com. We have plenty of resources around videos and different information about what types of scenarios they can integrate easily, what applications they can integrate easily, but we also have free trials. Whether you want to trial our on-premise installed software product or you want to trial our cloud-based platform you can trial either one of those. We have a customer success set of resources in our company that will actually work with you through your trial if you have questions or if you’re looking for some best practices they can help provide those best practices and enable you to really prove out that you can do it effectively and get what you want.

Laurie: I’m sure you can also help them connect with a partner, right?

Peter: Oh well that goes without saying. We have hundreds and hundreds of partners across the world and we can connect them with them. If they’re partner is not our partner and they’d like to get enabled we have an on-boarding program for partners that’s very rapid, so we are all about enabling not just the small/medium business but the entire ecosystem that they rely on to be able to help them and collaborate together efficiently.

Laurie: Peter, thanks so much for joining me and it was very informative to learn about Scribe and it sounds like a great way for a lot of SMBs to integrate their business applications, so thanks again.

Peter: Well thank you, and we’re looking forward to helping companies make that happen. Thanks.

Laurie: Great, thanks.

My Top 10 Posts from 2014

december-2014-calendarWow, December really came quickly this year! So I figured that I would post my most popular blogs from 2014 now, before people are devoting all of their online time to holiday shopping!

 

Cloud Is The New Normal for SMBs—But Integration Isn’t
SMB Group Top 10 SMB Technology Trends For 2014
Nine Signs Michael Dell Will Be the Comeback Kid
IBM Reimagines the Email Story With IBM Verse
Six Technology Resolutions for a Happier and Healthier SMB New Year
SMB Technology: Mind, Matter, Money–and the Cloud
A New Cloud Formation: Dell Cloud Marketplace
Microsoft Lumia 1520: A Millennial Perspective
ReachLocal: One Stop Digital Shop for Local Small Business
Five Things SAP Needs To Do To Make “Simple” Real

A New Way to Work: IBM Design Thinking Creates Verse Via Storify

My Storify recap of key takeaways from #NewWaytoWork launch of IBM Verse.

  1. Fascinating and fun! In my first @IBM design camp!#NewWayToWork

    ·

    9 DAYS AGO

     Last week, I participated in an IBM Design Thinking boot camp, and the launch of IBM Verse, which was created with Design Thinking methodology.

  2. Phil Gilbert: we have to start with the user, empathy and insight—it has been a missing component from biz software #NewWayToWork< +1
  3. “Folder King” made IBM rethink how to find stuff, both structured and unstructured search #NewWayToWork

    IBM Verse is email reimagined. It’s very visual and intuitive. I love that you can see your calendar on the same dashboard as your email–no more toggling back and forth!

  4. Hi everyone! I'm #IBMVerse. Learn more about me and how I can help you find a #NewWayToWork. http://t.co/2jpsW1bRm7 http://t.co/5HCTM7cL2U

    Hi everyone! I’m #IBMVerse. Learn more about me and how I can help you find a #NewWayToWork. http://ibm.com/verse  pic.twitter.com/5HCTM7cL2U
  5. I like that @IBM Verse provides a visual dashboard view of mail, contacts and calendar all in one place #NewWayToWork
  6. Great question!

  7. .@lauriemccabe is it really a #NewWayToWork or just a new way to look at email?
  8. @lauriemccabe: My thoughts: @IBM Reimagines the Email Story With IBM Verse  http://bit.ly/1xM4Tgg  #NewWayToWork

    7 DAYS AGO

     IBM offered some clues about some of the new capabilities it plans to add to Verse.

  9. RT @lauriemccabe: @IBM Verse will add more messaging sources, e.g. Twitter, texts, etc. #NewWayToWork
  10. @IBMWatson is going to lend its brain to @IBM Verse, that might help me a lot ;-) #NewWayToWork

    Another great question!

  11. Hmmm…if @IBM wants viral adoption of Verse, it will need to hook consumers, as Google did, for bottom up adoption#NewWayToWork
  12. @IBM remember a big reason that @google made such big inroads against @Microsoft in biz email-led by viral consumer adoption#NewWayToWork
  13. Verse really looks good, but IBM marketing will need to be just as creative as IBM design to compete for volume against Google and Microsoft.
  14.  Here’s a YouTube video to give you more info on Verse.

  15.  And if you’d like to check it out, you can sign up for a free trial.

  16. I’m using #YourCircuit and saying #GoodbyeEmail How about you? Grab your free trial here  http://bit.ly/1sMAni8  #NewWayToWork

IBM Reimagines the Email Story With IBM Verse

email iconYou’ve got mail! It’s been a long time since most of us have experienced the surge of pleasurable anticipation that Tom Hanks and Meg Ryan enjoyed in the 1998 classic, “You’ve Got Mail.”

Instead, if you’re like me and many others, opening your business inbox has become a soul-sucking experience that consumes too much time, distracts you from more important tasks, and leaves you feeling that in spite of all the time you spend in email, you probably missed something important. Yet with all of its flaws, you continue to use email because it has become a seemingly irreplaceable part of the business workflow.

You’ve Got Information Overload!

The feeling of information overload that many of us experience isn’t surprising. According to Osterman Research, most corporate decision makers and influencers view email as the single most important application they have deployed. The typical user spends two hours per day working in the corporate email system and sends or receives a median of 130 emails per day. Email is also the primary method for:

  • Sending an attachment for 94% of users.
  • Sharing files while on a call for 60% of users.
  • Managing a project for 56% of users.

Sadly, much of this time is wasted: According to a 2012 Grossman Group study, middle managers typically spend 100 hours a year on irrelevant email. Many frustrations arise from this sorry state of affairs, including some of my top aggravations:

  • That nagging feeling that I’ve missed something (especially in all of those crazy Google threads!).
  • Spending too much time catching up on email after work hours so I’m not swamped the next day. For better or worse, this is easier than ever because I can do it on my iPhone.
  • Spending too much time searching for that one, elusive email that I really need.
  • Toggling back and forth from my email to calendar to find open time for meetings.
  • Getting back to what I was supposed to be working on after be email distractions.

But, despite these problems—and the emergence of newer digital communications methods (social networking, activity streams, text messages, IM, etc.) touted as email replacements—email is still very much alive and well. While newer methods are making some headway (and in fact, reducing email use in our personal lives), email remains the top form of business communication. In fact, 52% of those surveyed by Osterman Research indicated that their use of email had actually increased over the previous 12 months, while for 44%, use remained the same. Use declined for only 3% of respondents.

Towards A More Intelligent Inbox

To be fair, email has evolved since the first email with an @ sign was sent (reputedly in 1972, by Ray Tomlinson, an ARPANET contractor and Internet pioneer). Commercial developers got in the game, and developed folders to organize email, offline synchronization, standards and protocols, web interfaces, search capabilities, spam filters, ways to pre-sort emails into different buckets and more to make email more user-friendly and usable.

Although these improvements have helped somewhat, the original paradigm of looking at a big long list of stuff—emails, files and folders—remains. We’ve gained more ways to slice and dice our inbox, but it’s still served up to us in pretty much the same way as it has always been, in rows of information.

Newer social and collaborative tools, from activity streams to file sharing apps have been developed to make communication and collaboration easier, and to reduce and/or replace email. But while they are a great fit for certain tasks and activities, they haven’t displaced email to any great extent. Email volumes continue to multiple, and email overload continues to plague us.

You’ve Got Focus!

But what would happen if you began with the premise that email isn’t likely to go away? And that since people spend a lot of time in email, it should be a place where people like working and can be more productive, and that easily integrates with newer social and collaborative tools, instead of competing with them? In other words, how can you have an inbox that works for you, instead of the other way around?

This is the premise that IBM team has zeroed in on with IBM Verse. Verse is designed to help people focus on, find and act on the most important things in their inbox in a more intuitive and integrated fashion. Big Blue has invested $100 million to design the solution, which combines its cloud, analytics, social and security platforms.

Initially announced at IBM’s 2014 Connect conference (under the codename Mail Next), IBM Verse replaces those deadly rows and folders with a fresh, visual mental map to help you make sense of your inbox more quickly and easily (Figure 1). With one look at the IBM Verse dashboard, you can:

  • See what replies and tasks you owe others.
  • View meetings and free time.
  • Identify what’s most important in your inbox.
  • View your activity stream.
  • Move over a face to see that person’s emails, chats, invites and more all in one place.

Figure 1: IBM Verse Screenshot

Mail Next screen shot (9)

Source: IBM

From there, you can drill down to different layers to manage things, take action and stay on top of priorities (Figure 2). For instance, you can:

  •  Pull up and attach links to files and manage version control.
  • “Unlock” emails and turn them into social posts to share with a community.
  • Use team analytics to create social graphs to see how active different people are in a thread.
  • Create rules to sort, filter, mute and hide messages.

Focus on Experience, Not Features

IBM Design Thinking, IBM’s design framework for delivering great user experience to users. Is also taking a different approach to designing IBM Verse. Instead of testing the user interface after some (too often) wonky developers come up with it, product management, development and design all work together equally from the beginning.

Using tools such as IBM Digital Analytics (formerly Coremetrics) and other technologies from its portfolio, IBM can continually personalize and prioritize email and social activities for users and improve search. Over time, according to IBM, Watson will provide much of the analytics behind IBM Verse, with the goal of providing users with more insights and less overload from their email.

Coming Soon…

IBM Verse will debut as a cloud service (but IBM is prepping an on-premises version as well). Key sponsor and design advisory users have been reviewing, testing and helping co-create the solution since August. The solution will officially premiere in November as one of just eight IBM “Signature Moments,” putting IBM Verse on par with the IBM-Apple deal. After that, IBM Verse will enter beta mode, with general availability slated for March 2015.

IBM will provide Notes Domino users with a preview and transition to IBM Verse. Notes Domino users will be able to use IBM Verse in combinations with Notes Domino and with IBM Connections.

IBM will also offer a standalone Verse solution of Verse in a freemium model, to compete against Google Gmail and Microsoft Office 365. As an SMB analyst, the standalone version is of most interest to me as this is the first freemium IBM has offered. The freemium model will provide entrée to an app that almost every business needs, and has the potential to generate viral adoption for an IBM product—another first for IBM.

Will IBM Verse Measure Up At the Box Office?

But it’s not a slam-dunk. IBM Verse should provide Notes Domino users a more compelling case to stay the course instead of defecting to Microsoft, Google or other cloud-based mail alternatives. However, most Notes Domino users have a lot of applications, many internally developed, running on the platform. IBM Verse will need to be able to run, expose and interface with these apps to make the transition truly easy.

Meanwhile, as alluring as the IBM Verse demo and interface is, gaining traction outside of the Notes Domino installed base will be extremely challenging. For starters, many companies, especially small and medium businesses (SMBs), are already using cloud-based email and collaboration solutions. SMB Group research indicates that 49% of small (1-99 employees) and 40% of medium (100-999 employees) already use cloud-based email and collaboration solutions. Furthermore, the preference for cloud among SMBs planning to purchase or upgrade collaboration solutions is strong (Figure 2).

Figure 2: SMB Adoption and Plans for Email and Collaboration Solutions

Slide1

Source: SMB Group 2014 SMB Routes to Market Study 

In addition, IBM will need to make a strong case to business decision-makers and end-users, as well as to IT. IBM will not only need to create broad-based awareness for the solution, but convey why and how it’s different from other email solutions, and how it directly benefits users—aka “what’s in it for me” to move the needle.

And, while IBM Verse isn’t exactly a new category, it’s a very new approach that goes beyond traditional email. Users will need to develop a new mental map—and IBM will need to help them do so. Going to market with a freemium model will help, but it won’t be enough. In addition, IBM will need to:

  • Deeply internalize sponsor and beta user feedback, not only to influence solution development and design, but also to ensure that IBM Verse messaging, positioning and marketing reflects the user voice and experience.
  • Heavily socialize the IBM Verse concept across events, social media, communities, influencer groups, etc.
  • Maximize conversion of users that try IBM Verse to users that buy, or in the case of the freemium, stick with IBM Verse and make it their corporate mail system. It’s easy to get people to download free apps, but tough to get them to test them and tougher still to displace an existing solution with a new one.

As a solution, I believe that IBM Verse is launching with the right stuff, including.

  • As a cloud first solution, IBM Verse can tap into the growing number of companies that opt to start with or move to the cloud.
  • IBM’s design thinking team aligns with where users are today: helping people get more done, more quickly with fewer menus, mouse clicks and a more visual representation.
  • “Personal analytics” taps into user concerns about information overload, and the desire to manage email more intelligently.

But, only time will tell if IBM’s elevation of IBM Verse to Signature Moment status—and the marketing power attendant with this—will be enough to ensure that IBM Verse will become the blockbuster hit that IBM is hoping for.

This post was sponsored by IBM.

Dell’s Strategy to Bring Game-Changing Technologies to SMBs

This is the second post in a two-part blog series discussing Dell’s strategy to help SMBs better capitalize on technology. The first, A New Cloud Formation: Dell Cloud Marketplaceprovides perspectives from Dell World 2014. This second post, which is excerpted from SMB Group’s April 2014 report, Guiding Stars: Vendor Strategies to Bring Game-Changing Technology Trends to SMBs, offers additional insights into Dell’s approach to help SMBs capitalize on technology trends.

delllogoThe writing is on the wall for any business: With customers and prospects racing into the digital, mobile, and social future at breakneck speed, SMBs must proactively deploy technology to improve both business processes and the customer experience. SMBs that figure out how to use technology to stay ahead of their customers’ demands will thrive, while those that don’t face extinction.

But there are lots of vendors and solutions out there ready to help you on your journey, and one-size-fit all doesn’t apply in SMB. Is Dell a good fit for you? Read on for information and insights to help you decide.

Slide1

Dell’s Strategy to Bring Game Changing Technologies to SMBs

Dell sees cloud, mobile, social, analytics and other technologies converging towards the next pivotal tipping point, where IT will change the lives and experiences of nearly every industry, country and person on the planet.

Dell articulates its view on top technology trends somewhat differently than other vendors interviewed for this report. However, the same technology trends—cloud, analytics, social, mobile and security—are core to Dell’s top picks. Dell sees the following trends ushering in new wave of business transformation, similar or greater in scope to how the Internet and web affected businesses:

  1. People will increasingly rely on technology to connect, collaborate and accomplish tasks and goals. Embedded in user-friendly solutions, cloud, social and mobile technologies enable SMBs to connect, collaborate and engage anytime, anywhere to better serve their customers and to work more efficiently.
  2. IT is changing from a support function to becoming core most business operations, and business decision-makers are increasingly involved in IT decisions to ensure the business gets the value it needs from IT.
  3. Amidst the growing volumes of structured unstructured data, SMBs that have the rights tools to find the needles in the haystack and uncover useful, actionable information and insights will gain competitive and market advantages.
  4. As SMBs rely more on technology to run their businesses and engage with customers, partners, suppliers and others, taking measures to secure and protect data, information and access are increasingly essential to business viability.

Some of the tangible ways that Dell is helping SMBs capitalize on these changes include:

  • Becoming an über-cloud provider: Dell has been steadily expanding the Dell Cloud Partner Program to provide access and end-to-end support for offerings from multiple cloud vendors.
  • Offering open, private-cloud solutions, which should help give SMBs more confidence in using OpenStack as an alternative to proprietary IaaS and PaaS (infrastructure and platform as-a-service) alternatives.
  • Expanding portfolio of mobile management solutions, such as Enterprise Mobility Management, a unified mobile management solution to managed devices, apps, and content, and Secure Remote Access Gateway to protect endpoints.
  • New intellectual property gained from acquisitions such as SonicWALL, Quest, Boomi, Compellent and Force10 is skewed towards the SMB world. In fact, Dell views SMB and midmarket as an ideal focal point for development and acquisitions since it believes large organizations also want scalable solutions that are easier to deploy and use too.

Changes in SMB Technology Expectations and Behavior 

Fueled by the web, mobile and social access, Dell sees changes in how SMBs evaluate and shop for solutions. Today, SMBs are more prone to have done their homework before they come to the sales table. Armed with a greater understanding upfront, they are looking for vendors and partners that will listen to what they are trying to do and offer authentic, objective and knowledgeable guidance. In addition, Dell believes that simply doing the right things for people works. To that end, Dell prefers having its customers tell its story rather than Dell telling it. For example, Dell cites the tornado damage in Oklahoma City last spring, where Dell served as a first responder, as exemplifying its commitment to doing the right thing to earn customers’ faith in Dell.

Dell sees both the role of SMB IT and business decision-makers morphing. More frequently, line-of-business (LoB) managers are not only customers of IT departments, but also co-owners of IT. This means that IT staff must work harder to meet increasing demands, and become more educated and engaged in business operations and strategy than in the past. SMB IT personnel need more practical and actionable advice and support from vendors and their channel partners to juggle ongoing IT management with innovation.

SMBs are also scrutinizing “calculated risks” much more carefully. For instance, SMBs are interested in the cloud because of affordability and ease of access/use advantages, but want to ensure that cloud solutions are secure and reliable. SMBs are also more likely to factor business disruption into the cost/benefit analysis for any given solution. They are getting wiser about the perils of bad decisions and implementations, so the bar keeps getting higher to deliver solutions with less business disruption and faster time to value.

Finally, SMBs increasingly recognize that the technology-performance connection is real, and can be used to accelerate growth disrupt industry icons with innovation and agility. The perspective is summed up in Dell’s latest ad campaign. SMBs can use new technologies not only to reshape their existing businesses, but also to redefine the economics of an industry and expectation of the market.

However, one constant remains. Most SMBs need capitalize on these opportunities without putting themselves in financial or operational jeopardy. SMB budgets, IT staff and expertise aren’t often able to both maintain what they have and innovate within the window of opportunity. So Dell is focusing on designing, delivering, supporting and financing solutions that take these constraints into account.

Perspective: Dell as SMB Technology Catalyst

Dell’s journey to transform itself has been in progress for a few years. While on Wall Street’s watch, it wasn’t easy for Dell to recast its image from a transaction-oriented hardware company to an end-to-end solutions provider and trusted advisor.

However, Dell’s entrepreneurial heritage is once again alive and well. Michael Dell not only started the company in his dorm room when he was a 19-year old student at the University of Texas, but took it private in 2013 to gain control over its destiny again. With genuine DNA at the heart of Dell’s commitment to SMBs and entrepreneurs, Dell can take a longer-term view on return on investment in new technologies. This should enable it to launch more innovative and affordable cloud computing, mobile, social, analytics and security technologies geared to SMB requirements.

In addition, Dell prides itself on listening to its customers and creating a mutually beneficial dialogue. Dell’s Social Media Command Center is one of the best in the industry, and Dell’s SMB and partner outreach programs are extensive.

While Dell is still in the midst of its own transformation journey, its attitudes and actions when it comes to SMBs should help it to significantly broaden its status as a trusted advisor in this market.

 

A New Cloud Formation: Dell Cloud Marketplace

This is part one of a two-part blog series discussing Dell’s strategy to help SMBs better capitalize on technology. This first post provides perspectives from Dell World 2014. The second post, Dell’s Strategy to Provide Game Changing Technologies to SMBs, provides a detailed glimpse into Dell’s approach in the SMB market.

dell worldHow has Dell changed since Michael Dell took Dell private a year ago? A couple of weeks ago, I had the opportunity to attend Dell World 2014 in Austin and find out. As I’ve written in past posts about prior Dell Worlds, the transformation has been underway for several years, since Michael Dell embarked on his strategy to transition Dell from a hardware-centric company to an end-to-end solutions provider.

As a private company, Dell is no longer obliged to disclose financial metrics. But, unleashed from Wall Street’s quarterly pressures, Dell appears to be making excellent progress on its goals. For instance, Dell has broadened its software and service portfolios, and claims significant growth in both areas. According to IDC, Dell is also increasing hardware market share no doubt aided in part by competitors HP and IBM. With IBM exiting the x86 server market, and HP’s recent decision to split itself into two companies (one focused on PCs and printers, the other on servers, software and services) Dell is the only vendor left that supplies an end-to-end desktop to data center portfolio. Meanwhile, Dell has evolved to become a significant force in the channel, with 40% of its sales now going through channel partners.

Dell’s New Cloud Marketplace

One of the most interesting announcements at the event was the beta launch of the Dell Cloud Marketplace, which distinguishes itself from many other cloud vendors by offering customers choice. In Dell’s brokerage model, the vendor provides customers with a one-stop shop from which they can select and manage cloud services from multiple vendors, including Amazon, Google, Joyent and Microsoft. The marketplace is built on technologies from Dell’s Cloud Manager, which Dell acquired from Enstratius in 2013. Key technology partners include Delphix, which supplies data migration services; Pertino, for cloud networking; and Docker, for container and portability services. Dell is also partnering with Foglight to provide developers with tools to improve cloud-based application performance.

Screen Shot 2014-11-16 at 7.27.13 PM

Dell Cloud Marketplace is tuned to the different needs of IT managers and developers. IT managers get a single console from which they can provision, manage and integrate private, public and hybrid could services. Meanwhile, developers can get instant, self-service access to cloud services. The concept appealed to conference attendees, with over 400 signing up for the beta the day Dell announced it.

 

Screen Shot 2014-11-16 at 7.27.46 PM

Dell’s vision for its Cloud Marketplace is similar to that of Priceline or Kayak in the travel business. Dell will aggregate, simplify and streamline shopping, selection, purchase and management across many cloud service options. Cloud offerings will initially be sold through Dell.com, Dell’s established, high volume direct sales channel. Over time, Dell is likely to implement reseller programs and possibly even white-label programs for channel partners.

Perspective

Perception is the hardest thing to change. With deep, successful roots in the hardware business, they company has been primarily regarded as a hardware vendor, even though its journey to become an end-to-end solutions provider has been underway for quite a while.

Dell’s move to become a broker of cloud services, highlight the acquisitions, research, development and determination that Dell has been investing in this quest. And, with cloud adoption now mainstream (Figure 1), Dell’s timing for the marketplace is on target as well. The cloud makes it easy for people to buy new services, and more difficult for IT to manage the wide variety of different services that are in play. Providing a solution that gives IT managers more visibility and governance capabilities, while at the same time offering users more choice, promises to help address this challenge.

Figure 1: SMB Cloud Adoption

cloud adopt

Source: SMB Group

However, due in part to the uniqueness of the model, Dell will need to invest in market education to articulate the capabilities and benefits of this new brokerage approach more clearly.

In addition, Dell must create a clear roadmap for what and when it will add to the marketplace to properly set market expectations. For instance, one of the customers I spoke to at the beta would like to use the marketplace to help him manage the wide range of file sharing and collaboration solutions that his users are buying.

Finally with Dell partners accounting for an increasing percentage of Dell sales, Dell will need to come up with an attractive approach to lure partners to resell Dell Cloud Marketplace services.

Disclosure: Dell paid for most of my travel expenses to attend Dell World. 

 

 

Follow

Get every new post delivered to your Inbox.

Join 10,812 other followers