SAP’s Big Bet on SMBs—With a Fast Growth, Millenial Twist

sapEarlier this week, I had the opportunity to meet with Kevin Gilroy, SAP’s Senior VP and GM for Global Small and Midsize Enterprise Segment & Indirect Channels to hear about SAP’s plans to go big in the small and medium business market, which SAP refers to as small and medium enterprises (SMEs). In a nutshell, the vendor is dramatically ramping up market, channel and solution initiatives to boost its profile and market share in SME.

These initiatives come with an interesting twist. Much of what SAP intends to do in the SME space will focus on recruiting partners—from both developer and VAR ranks—who can provide start-up millennial businesses with next generation solutions to help them grow at lightening speed.

The company claims that it is coming at this from a position of strength, with 80% of its 253,000 customers coming from the  SME ranks. But, SAP’s defines SMEs, as companies with revenues under $1 billion, which skews larger than how most vendors and analysts define it. So what shape will SAP’s new SME initiatives take?

Sharpening the SME Lens

telescopeTo put things in context, SAP’s courtship of SME isn’t new. As I discussed in Top SMB Takeaways: SAP Sapphire 2013, SAP has been sharpening its SME lens for a while. Last year, the vendor announced several new programs to bring the benefits of HANA’s data-crunching power to SMEs,  provide customers with the choice of running its solutions in public, private or hybrid cloud environments, and to make its solutions easier to buy and use.

As I noted in that post, SAP was focusing these initiatives not at the SME masses, but on high-growth SMEs, which SMB Group call Progressive SMBs. Progressive SMBs are growth driven, and more likely to invest in and use technology to gain market and competitive advantage than other SMBs. Our data shows that Progressive SMBs are also much more likely to anticipate revenue gains than peers whose tech investments are flat or declining.

Now, SAP is further sharpening the lens to zero in on millennials that are starting, running and making decisions in SME companies. According to Gilroy, millenials have a different view on technology than older counterparts. They are more comfortable with technology, and more likely to view it as a growth engine, instead of as a cost-cutter.

With a broad portfolio of cloud, mobile, analytics, ecommerce, talent management and ERP solutions, SAP offers many entry points for  these SMEs. The vendor has made some key acquisitions, including Ariba for ecommerce, and Success Factors for talent management, that broaden its footprint in the born on the cloud solution space. SAP has also introduced cloud-based options for many of its traditional on-premises solutions, such as SAP Business One. SMEs often prefer cloud solutions because they can usually be deployed faster, with less technical expertise and without big upfront capital expenditures, paving they way for SAP and its partners to expand their addressable market.

Furthermore, SAP is infusing HANA into its SME offerings, announcing general availability of the 9.0 version of the SAP® Business One application, version for SAP HANA. This is the first business management solution for SMEs running on SAP’s in-memory HANA computing platform. It enables SMEs to analyze structured and unstructured information within seconds instead of days, and use predictive analytics to gain new insights into data and optimize business decision-making.

Powering Up Partner Programs

1-hands-holding-jigsawSAP is powering up partner recruitment to fuel SME expansion. The vendor recruited 500 partners in 2013, growing the partner base to more than 11,500 worldwide, with about 1,000 in the U.S. Gilroy indicated that SAP is planning for double-digit channel growth, but will take a selective recruiting tack. In addition to looking for partners with a next-generation development vision, such as Liquid Analytics, SAP wants partners that are ready to scale their businesses to keep pace with SAP’s double-digit growth in SME.

The vendor has introduced and refreshed several programs to help partners go to market more effectively, including:

  • SAP Marketing University, a free, foundational marketing program to empower partners with the marketing skills they need to grow their businesses. SAP indicates the program has already led to over $1 billion in lead generation activities. Once partners have gone through the program, SAP provides them with the same marketing assets that are available to its internal marketing and sales teams.
  • Partner involvement in SAP’s Run Like Never Before ad campaign, launched in October of 2013. To data, more than 200 partners have taken executed campaigns as part of this program, which is 100% MDF reimbursable.
  • New “buy now, pay later” SME financing options that give SMEs zero-percent financing for up to 24 months for the purchase of any SAP product on the reseller price list.

Perspective

We’ve all seen how quickly innovative, fast-growth SMEs can become marquee brands, from tech sector stars such as LinkedIn to consumer brands such as Green Mountain coffee . SAP sees this too—and that technology is putting the creation-destruction cycle for businesses in hyper-drive.

So SAP’s big bet on becoming the leading IT solutions provider for these high-growth SMEs makes sense. As important, SAP is making an authentic effort to consumerize the SAP experience by reducing friction in choosing, buying and using SAP solutions.

But in this noisy SME space, crowded with competitors coveting the same high-growth SMEs, SAP still needs to do more to dispel the long-standing myth that SAP is only a big business brand. Although SAP solutions may be a good fit for high-growth SMEs, the vendor isn’t a household name with them or the millenials that its is seeking out.

SAP will also need to be cautious not to overplay the millennial hand. While millenials are likely to be more digitally savvy than older generations, the U.S. Small Business Administration says that self-employment among younger age groups has actually been dropping. From 2005 to 2010, self-employment among indi­viduals age 25 and under decreased 19 percent, compared to a 7 percent drop in the overall population. In reality, self-employment rates increase with age. For example, they were 2 percent for those 25 and under and 23 percent for those 65 and over in 2010. Simply stated, while millenials may prove to apply technology in business in more innovative ways, they are a relatively small part of the entrepreneurial population.

However, SAP is moving in the right direction. As it increases its investment to understand and engage with SMEs, SAP can continue to fine-tune its SMB story, and widen the circle of high-growth SMEs that will hear it and relate to it.

SMB Technology: Mind, Matter, Money–and the Cloud

SMB Group recently wrapped up our 2014 Small and Medium Business Routes to Market Study, in which we looked how U.S. SMB (small businesses are defined as those with 1-99 employees, medium businesses as those with 100-999 employees) technology adoption and the buying cycle in ten key solution areas. As part of this study, we gather SMB perspectives their top business challenges, how technology impacts their businesses and technology spending plans.

Top of Mind: SMB Business Challenges

As SMBs grow, so do their top business challenges, as shown on Figure 1. Small businesses with are most concerned with growth and cash flow issues, such as attracting new customers (57%), growing revenue (47%) and improving cash flow (37%).  These challenges remain important for medium businesses, with growing revenue (45%) and attracting new customers (40%) continuing to top the list.

Figure 1: Top SMB Business Challenges

Slide1

Business growth creates added complexity and some very significant differences in terms of business challenges. Most notably, medium businesses (33%) are twice as likely as small (16%) to view attracting and retaining quality employees and securing and protecting my company information as threats (22% and 9%, respectively) as one of their top three priorities. Medium businesses are also much more likely to put improving customer experience and improving employee productivity as a top challenge than small businesses.

Technology Matters

Regardless of what their top business challenges are, SMBs share a mostly positive view about technology’s role in helping their businesses. As Figure 2 reveals, 67% of small and 81% of medium businesses say that technology solutions help them to run their businesses better or that technology solutions help them to significantly improve business outcomes.

Figure 2: SMB Views About Technology’s Role in Business

Slide2

SMB IT Spending: A Mixed Bag

While most SMBs’ believe that technology helps them achieve business goals, IT spending plans are a mixed bag. Although 46% of small businesses plan to increase IT spending over the next year, 45% anticipate flat or decreased spending on technology (Figure 3). Considering that 51% small businesses spend less than $10,000 annually on IT (excluding salaries).

For medium businesses, the calculus is more bullish, with 57% expecting to spend more on technology, and just 35% expecting flat or decreased technology spending. However, most medium businesses plan for a relatively modest 1% to 10% IT spending increase.

Figure 3: SMB Technology Spending Outlook

Slide3

SMB Group recently wrapped up our “2014 Small and Medium Business Routes to Market Study,” in which we

And the Cloud…

The good news for technology vendors is that most SMBs are making the technology-business performance connection. In addition, cloud-based solutions are making easier than ever for SMBs to benefit from technology. Our study shows that SMBs are steadily moving to the cloud, which eliminates the barrier of big upfront capital investments. All else being equal, the cloud has made it easier for SMBs to digest technology—both financially and technically—than comparable on-premises offering.

However, given IT spending constraints, and the exponentially expanding array of tech solutions, vendors need to double down on demonstrating a direct relationship between helping SMBs gain business outcomes in the areas most critical to their businesses.

Reading between the lines, it may be time to look at cloud pricing models the financial ability of SMBs to absorb additional monthly subscription costs. In anecdotal conversations with SMBs, I’m hearing more lately about what I call “subscription fatigue.” While price of an individual cloud solution may be quite reasonable, the costs for multiple solutions can add up quickly–and so can the complexity of managing different contracts. As monthly bills mount, solution vendors will need to go the extra mile to prove value–and continue to prove it month to month.

In addition, especially in the small business space, some vendors, such as Google and Intuit, are moving to push the cloud price curve significantly downward. All of which points to the fact that its time for cloud vendors that target SMBs to take a more realistic look at the pricing and pricing models that they will need to build significant volume in these markets.

For more information

SMB Group’s 2014 Small and Medium Business Routes to Market Study examines how U.S. SMB technology adoption and the buying cycle in ten key solution areas:

Business solutions: ERP, financial and accounting; collaboration; marketing automation, contact and customer management, workforce management, business intelligence and analytics.

Infrastructure solutions: security; data backup, online storage and sharing; server virtualization; desktop virtualization; integration.

The study assesses the entire SMB technology solution purchase cycle, including needs identification, information sources, advice sources, key selection and short-list criteria, and purchase channels. Fielded in February 2014, the study is based on the results of a 700-respondent web-based survey of SMB technology solution decision makers and influencers, and segmented into eight employee-size segments and 18 vertical industries.

Please contact Lisa Lincoln at (508) 734-5658 or lisa.lincoln70@smb-gr.com for more information about the study, including a Table of Contents.

Cloud Is The New Normal for SMBs—But Integration Isn’t

SMB Group recently wrapped up our “2014 Small and Medium Business Routes to Market Study,” in which we looked how U.S. SMB technology adoption and the buying cycle in ten key solution areas, as shown below.

Business Application Solutions

IT Infrastructure Solutions

·   ERP, Financial and Accounting

·  Security

·   Collaboration

·  Data Backup

·   Marketing Automation

·  Online Storage and Sharing (new addition for 2014)

·   Contact and Customer Management

·  Server Virtualization

·   Workforce Management (new addition for 2014)

·  Desktop Virtualization

·   Business Intelligence and Analytics

·  Integration (new addition for 2014)

Cloud Adoption is Soaring

The most dramatic finding is that 92% of SMBs are now using at least one cloud business solution, and 87% already use at least one cloud infrastructure solution. (Figure 1).

Figure 1: SMB Cloud Adoption

cloud adopt

Furthermore, when compared with our 2012 Small and Medium Business Routes to Market Study, we see  cloud adoption increasing in every solution area. For example, since 2012, SMB cloud adoption is up 10% for collaboration, 5% for business analytics and 2% for accounting and ERP. The same types of gains hold true for infrastructure  applications. In addition, we see that as SMBs shift to the cloud, purchase channels are also changing to favor direct purchase from software or a software-as-a-service/cloud vendors  and to managed service providers (MSPs).

Integration Remains Problematic

However, while the cloud has made it much easier for SMBs to access and use new applications, it has yet to do much to help SMBs integrate them. Although 63% of SMBs have at least partially integrated some applications, 79% still rely on manual Excel file uploads or custom code for integration, instead of using modern integration solutions or pre-integrated solutions (Figure 2).

Figure 2: SMB Integration Methods

integration

Integration is essential to helping SMBs reap the full business process value of new applications—and of course to gaining a more unified, consistent view of the business. But as this research signals, vendors need to do a lot more both to educate SMBs about the value of application integration, and to make their integration solutions easier to use and more affordable.

For more information

SMB Group’s 2014 Small and Medium Business Routes to Market Study assesses the entire SMB technology solution purchase cycle, including needs identification, information sources, advice sources, key selection and short-list criteria, and purchase channels. Fielded in February 2014, the study is based on the results of a 700-respondent web-based survey of SMB technology solution decision makers and influencers, and segmented into eight employee-size segments and 18 vertical industries.

Please contact Lisa Lincoln at (508) 734-5658 or lisa.lincoln70@smb-gr.com for more information about the study, including a Table of Contents.

 

 

Can IBM Make the Collaboration Connection With SMBs?

ibmconnectLast week, I made my annual pilgrimage to IBM Connect to learn about the latest and greatest developments in the company’s collaboration and talent solutions. Over the years, IBM has transformed its former Lotusphere conference to Connect, grown a portfolio of cloud-based messaging and collaboration solutions, and added talent and workforce management solutions into the mix.

This year’s Connect theme was “Energizing Life’s Work,” which plays across IBM’s collaboration and mail solutions, as well as Kenexa, IBM’s talent suite (IBM acquired Kenexa in 2012).  Here, I’ll focus on news in the cloud-based collaboration space, which is arguably IBM’s best possible route to the small and medium business (SMB) market.

What’s New?

IBM’s big news in this arena focused on:

  • The unveiling of Mail Next, IBM’s web-based, enterprise-focused email service: It combines mail, meetings, chat and content management systems, creating unified hubs for in which users can interact via email and create groups based on shared interests or projects, and track projects. For instance, users can mute email that doesn’t need immediate attention to view later. IBM intends to make the solution available in 2014, both on-premises and via the cloud.
  • A new name and enhanced user capabilities for IBM’s cloud-based collaboration suite: In 2014, IBM will rebrand IBM Smart Cloud for Social Business (which includes business-grade file sharing, communities, Web meetings, instant messaging, mail, calendars, etc.) to “IBM Connections for Cloud”. (In 2012, IBM renamed LotusLive Engage cloud suite to SmartCloud for Social Business.) IBM also announced several enhancements for the suite, including the new Mail Next web mail discussed above, as well as improved audio/video for meetings and chat, a better guest model experience, and “mobile everywhere” capabilities.
  • Automated, dynamic infrastructure capabilities enabled by SoftLayer: On the backend, the company is now running IBM Connections for Cloud in its recently acquired SoftLayer data centers. SoftLayer not only expands IBM’s data center footprint (an increasingly important capability as more countries legislate that cloud providers operate in-country) but also provides enhanced automation capabilities to get infrastructure and applications up and running much more quickly, allowing new images to be set-up in 15 to 20 minutes. This enables IBM to stand up a small footprint first, and expand dynamically as new customers sign on.
  • Added sales and distribution capabilities: IBM has done several things to fuel sales of its SaaS solutions, including its Connections for Cloud portfolio. First, the company has changed the SaaS compensation model for direct sales. In the past reps got bonus for selling SaaS; now SaaS sales are part of their quota. Second, the application programming interface (API) is now the same for both IBM’s on-premises and SaaS collaboration apps, so that older on-premises apps can now be certified to run in the cloud. IBM hopes that this will help ease the path for traditional Lotus ISVs and resellers to join the Connections for Cloud partner ranks (which currently have about 60 reseller and 100 ISV partners). Finally, IBM is working with Parallels to create an automated platform for telco partners to easily rebrand, provision, sell and bill IBM Connections for Cloud and other SaaS offerings in an integrated, streamlined manner.

IBM said that 2013 was a tipping point for adoption of its Connections for Cloud, touting triple digit growth in new customers and quadruple digit growth in new signings. Although IBM doesn’t release information about the number of active accounts using Connections for Cloud, it claims to have millions of users, and a 50/50 split between large businesses and midmarket accounts. In a breakout session, executives noted that some midmarket customers have replaced Office 365 or Google Apps with IBM Connections for Cloud. They cited IBM’s strong security and governance capabilities, and the fact that the company doesn’t sell ads or mine customer data as key competitive differentiators.

Missing the B2Me Connection

Judging from the demos, IBM Connections for Cloud is making headway in terms of creating a more user-friendly and SMB-friendly collaboration experience and developing lightweight, lower priced bundles. In fact, I have spoken with several smaller organizations such as Apex Supply Chain and Colleagues In Care that are very satisfied with IBM’s collaboration solutions (more customer stories can be read here. IBM’s growth metrics are also impressive.

In addition, IBM’s new design thinking philosophy puts the user experience at the center of its development and roadmap planning, indicating IBM’s recognition that  consumer-oriented applications have a big influence on user expectations. The vendor’s design thinking philosophy incorporates best practices from popular social apps, brings features such as activity streams, social feedback and network updates to the forefront, and use analytics to flag high-priority items for users. IBM is also putting mobile-inspired design first. For instance, event demos showcased tablet-optimized design principles for Mail Next even when accessed through a traditional web browser.

But IBM remains a distant third to Microsoft and Google in the SMB email and collaboration market. Given the company’s current position, its traditional B2B sales model, and the ongoing consumerization of IT, the odds look slim that IBM can dramatically grow SMB share.

Slide1Across the technology spectrum, and especially in the collaboration space, decisions are increasingly being made in a bottom-up instead of top-down manner. User preferences forced a massive corporate shift from BlackBerry to iPhone, and business users are signing up on Dropbox and Google Drive by the millions without IT’s blessing. I’ve dubbed this trend “B2Me.” As consumer technology gets friendlier and friendlier, people are increasingly likely to seek the same type of technology access and experience in their business lives as in their personal ones.

Therein lies the rub for IBM. Although it offers a self-service model, including a free trial, onboarding services and credit card purchase options for IBM Connections for Cloud, it lacks any presence in the consumer or prosumer space—a growing onramp for SMB technology adoption. In addition, IBM’s service and support model is geared towards making large corporate accounts happy. Shifting gears to serve far-flung issues and requirements from the masses presents another big hurdle for Big Blue and other enterprise-facing vendors.

Without the ability to create and a support a viral, bottoms-up business model, its hard to see how, no matter how good the solution is, IBM Connections for Cloud can make serious headway in the SMB Market.

Does It Really Matter Whether IBM Connects With SMBs?

IBM has an impressive stronghold in the large enterprise collaboration space. In fact, the company has augmented, reshaped and restyled the Lotus portfolio—which was once declared dead—into its now thriving Social Business division.

So why should IBM divert attention and resources to SMBs? Especially as Google, Dropbox and others drive pricing downward, many IBMers likely view this as a profitless tail-chasing game.

However, I believe that if IBM chooses to put SMBs and the B2Me phenomena on the back-burner, it does so at its own peril.  IBM needs to grow its SMB market footprint to fuel growth, especially after missing revenue targets during 2013. Furthermore, there’s the pesky fact that small companies grow and large ones go out of business. Consider that 238 of the companies that made the 1999 Fortune 500 list had slipped off the 2009 Fortune 500 rankings. Technology, generational and cultural shifts will only intensify this turnover. IBM needs to get a foothold in fast-growth companies while they are young.

Finally, and perhaps most importantly, IT consumerization is not a passing fad. As evidenced by Apple displacing (crueler people might say killing off) Blackberry, consumer and B2Me can’t be ignored. Collaboration is the one activity that every person engages in every day, both in business and at home. Perhaps more than any other area, collaboration solutions will be adopted from the bottom up instead of top down. In fact, one of the IBM Connect keynote presenters noted that some employees are willing to pay for rogue collaboration tools out of their own pockets if those solutions make their lives easier. That makes collaboration the natural—and possibly the only—starting point for IBM to get in touch with its inner consumer.

Discussing SMB Tech Trends: Part 4, The Affordable Care Act Puts Workforce Management in the SMB Spotlight

Recently, I was a guest on Act Local Marketing for Small Businesswith host Kalynn Amadio. Each week, Kalynn shares information and actionable tips to help inspire and motivate small and medium businesses (SMBs) reach their business goals.  On this episode, Kalynn and I discussed  SMB Group’s 2014 Top Ten SMB Technology Trends and what they mean to the marketing and running of your business. The last of a four-part series, this post summarizes our discussion of “The Affordable Care Act Puts Workforce Management in the SMB Spotlight.”

acaKalynn: You know, there are ten different SMB technology trends.  We’re not going to have time to go through all ten things, but there is one more that I do want to talk about.

 Even though we talk about small business and marketing and how to grow business on this show, I think we would be remiss if we didn’t discuss your prediction regarding the Affordable Care Act or ACA. I know it’s at the forefront of my mind, it’s in the media constantly, and it’s a real issue for people right now. 

Laurie: Absolutely. Our prediction is really that the Affordable Care Act puts workforce management front and center for SMBs. 

Many SMBs have already automated and integrated things like sales and marketing and customer facing kinds of solutions, because they see this as key to business growth.

But many have put workforce management solutions on the back-burner.  They think of that as a cost area so they often limp along with a bunch of disconnected things and manual tracking to take care of things like payroll and time and attendance, scheduling and benefits. 

Kalynn, as you said, the Affordable Care Act has made everybody kind of sit up and pay attention.  We’ve gotten a little bit of a reprise because they’ve delayed the mandate for the companies with more than 50 full-time employees until next January to provide health insurance. It was supposed to kick in this January. 

But, now everybody is realizing because a lot of, unfortunately, very negative publicity and all these issues that this is very complicated and it’s a situation that’s in flux. 

SMBs are worried, and rightly so, about uncertainty, costs and regulatory risks. They are starting to realize that need to be able to more easily do things like calculating employee eligibility for benefits, choosing the right plans, managing compliance and keeping costs under control. 

So, for purely practical reasons, SMBs that haven’t paid much attention to automating in the workforce management are going to start to do so to gear up for 2015.

Kalynn: Yes, and it could take longer than they thought the whole thing did turn out to be more complicated than we were led to believe.  So, it’s probably a good idea to take this year and make sure you have in place whatever you need to have in place to make your life easier and so that you’re ready January 1st of 2015 to go live, you’ve got everything handled, you know what’s going on, and everything is taken care of from a legal stand point.  

telescopeLaurie:It’s really about having the visibility into what’s going on in the workforce. Now there are a lot of cloud-based workforce management services for SMBs. With many of them, you can usually just get the modules you need. So maybe you just need payroll and time and attendance, right, but you can add other modules like benefits as you need them and they all integrate automatically. 

Automating and integrating this gives you better visibility into things like hours worked, overtime, and all the things that you need to know about to make good choices, not only for ACA, but for other workforce management decisions.

Kalynn: Right, because any of those kinds of solutions you’re going to have reporting modules that will let you look at all of your data so that you can make the best choices, and so document it all.

Laurie:It’s like in your own personal life you want to kind of evaluate the risks and benefits of different healthcare options, right.  Well, think of how complicated that is to do that just for your own family. It’s not easy information to sift through.  Well, now think about if you have to make that choice for your workforce.

You want the ability to do what if scenario kind of thing. What if I use this plan?  What will it cost?  What are the downsides? What are the upsides?  In some cases –not that I’m advocating this– some businesses want to know if they should be cutting down workers to part-time. 

So, you want to be able to play with all that.  It’s very difficult to do that if you have any more than just a handful of employees without having some kind of workforce management solution to do it with.

Kalynn: It goes back to something that you had talked about at the very beginning of the interview. If you don’t have metrics that you can run reports with then you don’t really know what the health and well-being of your business is and what decisions you should be making.  That’s just the bottom line. 

Laurie:  Yes, and again you want to have flexibility. Think about it; right now the economy is in a lot better shape than it was a few years ago, so your decisions today might be a lot different from they would have been four years ago. 

And, you know what, in a couple of years hopefully the economy will continue to improve.  We may have a very tight labor market if that happens and companies may go back to providing richer benefits packages.  So, it’s all about being able to adjust and adapt to kind of get ahead. 

Kalynn: Right; you want to have all your options available so that you can look and scoot them around on the table and see what happens and make some good decisions.

You can listen to the complete podcast discussion here.

Discussing SMB Tech Trends: Part 2, Mobile Applications and Management

Recently, I was a guest on Act Local Marketing for Small Business with host Kalynn Amadio. Each week, Kalynn shares information and actionable tips to help inspire and motivate small and medium businesses (SMBs) reach their business goals.  On this episode, Kalynn and I discussed SMB Group’s 2014 Top Ten SMB Technology Trends and what they mean to the marketing and running of your business. The second of a four-part series, this post summarizes our discussion of “Mobile Management Becomes a Priority as SMB Mobile App Use Soars.”

free multiple mobile devicesKalynn:Welcome back to Act Local Marketing for Small Business, Laurie. The next trend I’d like to discuss is mobile and mobile management and mobile app usage in the SMB market.

Laurie:Well, what we’ve seen with mobile is really fascinating.  I’ve never seen adoption in a technology area occur at such a fast and furious pace. It’s been just unbelievable since the iPhone was launched.

The iPhone changed everything because it personalized the devices, and spawned this whole app ecosystem, and it just made these phones that we all now carry around become critical in our personal lives and in our businesses. 

As a matter of fact, 67% of SMBs now view mobile solutions and services as critical to their businesses. That’s kind of unbelievable considering just a few years ago you probably had a dumb phone and you might have relied on it but nothing like we rely on our phones now. 

Kalynn: So what kind of mobile apps are SMBs using?

Laurie: Basic collaboration appscalendars, emails, messaging and contactsare already mainstream. About 83% of SMBs use them. 

Slide1SMBs are also adopting mobile apps for very business-specific functions. So, for things like order entry or inventory lookup, or to log time and attendance or enter payroll. Mobile is becoming part and parcel of how we conduct business.

Almost half of SMBs also either have or are planning to build a mobile-friendly website to engage customers using mobile devices. Sometimes you don’t even have to build it. If you have a WordPress site it’s automatically mobile friendly. 

Kalynn: Right, many themes now are mobile-enabled, and adjust depending on the size of the screen. 

Laurie: If you’re not doing this, you need to. It’s so frustrating to go to a site and have to keep adjusting the screen to read the text because it’s not mobile-friendly.

Some SMBs are also starting to deploy specific mobile apps to engage with their customers and prospects for appointment scheduling and payments, and things like that.

Kalynn: Do they develop their own proprietary mobile apps?

Laurie:Not necessarily. For instance, restaurants may use something like OpenTable. My hair salon uses a mobile app that lets me book and confirm and all that kind of stuff on my mobile device.

Some SMBs are also developing their own mobile apps or paying third parties to develop tailored apps for them.  Most of the backend applications that SMBs use have mobile app extensions, which are often available on Apple and Android app stores. If the right mobile app is available and can snap into your existing app, that can do the trick.

Kalynn: There’s absolutely no need to do customized right off the bat because so many apps are already out there that you can be a part of.

Don’t forget that in terms of making sure you’re getting found online, because  I’m always thinking in terms of SEO or Search Engine Optimization, a lot of these review sites like Yelp have mobile apps. People will go on them to check reviews about your business, more often than not from a mobile device. I’m not sure I remember the exact statistic but it was something 68% of people have their mobile phone within arm’s reach at all times. 

Laurie:It may be even higher. Also I think we’ve already passed the point where more searches are done on a mobile device than on a laptop or traditional PC or MAC.

Slide1So this makes mobile management critical because it’s a given that our reliance and use of mobile apps will continue to rise. SMBs must keep pace with the mobile explosion. You need to be able to manage not only the mobile devices in your company but also internal applications that your employees are using. 

With any mobile applications, security, management and provisioning are very important. If you’re not yet doing anything, in this area, the time has certainly come.

Kalynn: Right, you have to because employees are using so many devices and apps. Bring Your Own Device (BYOD)  means that companies are less apt to supply people with devices. Everyone has a favorite and they have to all work together.  You really have to think about mobile policies and procedures  for mobile devices and various apps.

Laurie:Yes, fortunately there are a lot of vendors that have mobile management solutions now geared towards SMBs from vendors like AirWatch or MobileIron. And from vendors that you might already be doing business with like Dell or HP or IBM. A lot of them are cloud-based, so that makes them easier to deploy and use.  

Kalynn: Right, and I’m sure there are tons of consultants that work with these solutions and can help you figure it out too.

In the third of this four-part series, I’ll recap Kalynn’s and my conversation about “SMBs View Payment Systems in a New Light.” You can listen to the complete podcast here.

 

 

                       

Discussing SMB Tech Trends: Part 1, Social Media Marketing and Technology As a Game Changer

Recently, I was a guest on Act Local Marketing for Small Business with host Kalynn Amadio. Each week, Kalynn shares information and actionable tips to help inspire and motivate small and medium businesses (SMBs) reach their business goals.  On this episode, Kalynn and I discussed SMB Group’s 2014 Top Ten SMB Technology Trends and what they mean to the marketing and running of your business. This, the first of a four-part series, summarizes our discussion of  “Social Media Marketing Stalls as SMBs Re-focus Marketing Practices” and “Progressive SMBs Use Technology as a Game Changer.”

Kalynn:Welcome back to Act Local Marketing for Small Business, Laurie. I just want to let you know that the show you were on last year, discussing the 2013 SMB trends was the most downloaded interview that I have ever had on the podcast.

Laurie:Thanks, Kalynn and Happy New Year!

Kalynn: This is a perfect time of year for you to be on the show again because SMB Group recently published its 2014 Top Ten SMB Technology Trends.  We won’t have time to go through all of them, and of course I’m more interested in the ones that are more relevant to marketing.

The first one I want to talk about is social media marketing. What you discovered might surprise a few people. Can you give some insight into that?

free social networkingLaurie: As you know, SMBs have been rapidly adopting social media as a marketing tool, whether building a presence on Facebook Twitter, LinkedIn, Pinterest, or some combination thereof. In fact, more than half of small businesses and two-thirds of medium businesses are using social media for marketing.

But, more SMBs are realizing that even though they don’t need to spend a lot of money to establish a social media presence, social has a voracious appetite for more and more content. There’s a lot of pressure to keep the content fresh because that’s what keeps people coming back. This is wearing on some businesses.

It’s also tough to keep up with changing social media preferences, for instance as millennials move from Facebook, for instance, to Snapchat or Instagram. So we predict that while social media marketing isn’t going away, it will stall a little as SMBs focus more on figuring out what really works and clicks with their target audiences.

Kalynn: Which makes a lot of sense. Google is a content monster; to get found you have to give it more and more content. But there has to be a happy balance between creating content and promoting your content. You need to promote your content more than once but you do have to find that balance.  All audiences will probably be different depending on what market you’re in, how often they’re willing to hear the message before they start to tune it out, and you do need fresh content.

Laurie: Absolutely, and at the end of the day it’s all about converting social connections that you’re making into customers and advocates. So the first step is to look at how you can repackage and reuse content in different ways to reach a wider audience.

I’ll give you an example. Today we’re talking about our 2014 top ten trends list. We initially published it in December and sent it to clients, prospects and press via email marketing, and got good traction with it.

As the new year started, we created individual tweets about each prediction, and that sparked more interest. Now I’m talking about it here on your show. It’s just not feasible for most of us to create fresh content every day, so it’s important to repackage it in different ways.

We also see more SMBs integrating social media marketing with their marketing and sales applications to get more insight into what’s going on, how what they’re doing is working and to make the information more actionable from a sales and marketing perspective.

free chess image 2Kalynn: Your very first prediction was another one I wanted to talk about: technology as a game changer for SMBs.

Laurie:That’s our overarching theme because of what we’ve been seeing since we started doing our surveys 5 years ago.

SMBs split into some clearly defined segments. One segment is what we call Progressive SMBs, who share a few characteristics. They’re much more likely to view technology as a business enabler; they invest more in technology; and they are also more likely to be growing revenue than other SMBs.

This gap has been widening and we predict it continue to do so. Trends such as generational shifts, the sharing economy and new technology fueled services that you may not even think about as technology solutions are accelerating this and reshaping what it means to be an SMB.

Kalynn: You talk about the generational shifts; I talk a lot about this with my primary audience, baby boomers, age 50 and over. There’s a drastic difference in communication styles between boomers and 20-somethings and millennials…people don’t retire early as often as they used to…that means there are many technologies and ways people are communicating. And also many ways that a business needs to be able to converse with customers and prospects, and it can be overwhelming.

Laurie: It can, and that relates to social media too. I think everyone should be spending at least some time with social media just to keep a pulse on what’s going on. It’s really important.

But we also see how Progressive SMBs are increasingly capitalizing on technology, cultural and demographic shifts to create new market niches and invent entirely new businesses. Just think about the businesses that have started up in the last few years and have been replaced in the last few years. I think the last Blockbuster finally closed. Now we’ve got Roku and we can stream everything whether it’s from Netflix or Hulu or whatever.  There’s also a shift in talent acquisition and management…with more use of outsourced services or Elance for contractors or freelancers instead of hiring salaried employees.

Or, in rethinking office space. Shared office space and shared IT infrastructure services are really growing in popularity. These are all ways to think about your business in a different light. And most often technology provides the fuel that businesses need to really get ahead.

Kalynn: Right, and in case people are not aware, Elance and oDesk, who recently merged, are websites where you can virtually hire temporary staffing, either for projects, or on a day-by-day or week-by-week basis.

They serve as middlemen, but protect you because they help with any disputes if things weren’t done well or not to your satisfaction. And they make it easier to track everything and for somebody not to get taken advantage of; either freelancer or the business owner.

Laurie: Yes, it’s basically a technology platform to help you manage the projects, execute the payments. The take care of all of the transaction stuff for you. People bid on the jobs, and you can see the ratings of each Elancer or oDesker, and you pick the bid you like.

At a higher level, we see that these more agile, Progressive SMBs taking advantage not just of technology per say but of solutions that are built on technology and also the sharing economy. Whether it’s shared workers, shared office space or shared IT infrastructure in the cloud or shared workers, you don’t have to own all your resources.  As a matter of fact, sometimes it’s better not to.

Kalynn: Absolutely; there’s less headache often if you don’t own them.  And, you can adjust more quickly and scale up and scale down more quickly through projects, so it’s actually a really good thing.

In the second of this four-part series, I’ll recap Kalynn’s and my conversation about “Mobile Management Becomes a Priority as SMB Mobile App Use Soars.” You can listen to the complete podcast here

Six Technology Resolutions for a Happier and Healthier SMB New Year

Happy New Year! While we often make personal New Year’s resolutions, I don’t think too many businesses make them. But you can start to change that in 2014 by resolving to make better use of technology to power your business, and create a more sustainable, competitive business.

With that in mind, here are a few resolutions that can help you work smarter, not harder, and enjoy a happier, healthier business in 2014.

iphone1. Manage your mobile investment. SMB Group research indicates 67% of SMBs view mobile solutions and services as “critical” to their businesses. SMBs are using mobile apps and solutions to help employees work more productively and efficiently, and to boost customer engagement and transactions. But while mobile apps are often easy to use, you also need to provision, support, and track and manage them on the back-end. Unfortunately, many SMBs are not yet using solutions to manage mobile devices and applications, and to protect valuable data from being lost or stolen. The good news is that vendors have taken notice and are offering cloud-based mobile management solutions specifically tailored to SMB requirements and constraints. Just a few to check out include: AirWatch Professional, Mobile Iron, Tangoe, and Dell Cloud Client Manager.

Social Business People Network  inside Speech Bubble2. Tune up your content marketing strategy. Many SMBs feel overwhelmed by the care and feeding that marketing requires these days. Back in the day, when marketing was a one-way street, businesses could get by with creating a marketing campaign and collateral that would see them through a quarter or even the year. But in the digital age, businesses are under pressure to create new content every week or even every day to keep customers coming back. If you don’t have one, put a plan in place for creating and scheduling content to keep everyone on track. When you create fresh content, think upfront about ways to recycle and reuse it. For instance, if you create a YouTube video, write a blog post about some aspect of it, and tweet out bite-size tidbits from the post. In addition, put a system in place to measure what networks and content click for your target customers. Depending on your business, free or low-cost tools such as HootSuite, SocialMention, Facebook Insights, Twitter Analytics, Google Analytics, Bit.ly and/or Buffer may fit the bill. Or, you may want to investigate marketing automation solutions, such as Infusionsoft and Hubspot, that integrate social more tightly with sales, marketing and content management applications to make your content investments more actionable.

men with puzzle pieces3. Integrate key workflows to get more bang for your software buck. The cloud has made it easy for businesses to add applications to address pain points on a piecemeal basis. But integration is often an afterthought. As a result, many SMBs end up with a hodge-podge of disconnected applications and workflows. People end up wasting time and making mistakes manually re-entering data into different systems, and getting accurate reports for decision-making can become a Herculean task. Things start falling through the cracks because the different applications and processes “don’t talk to each other.” This could be the year you do something about it! If you’re looking to upgrade core business apps, such as accounting, HR or CRM, consider pre-integrated suites from vendors with open application programming interfaces (APIs) and marketplaces. This makes it easier to snap in new, integrated functionality as needed. If moving to an integrated suite isn’t feasible, you can still get plenty of value just from the most repetitive workflows in your business. Many vendors (Informatica, Scribe, Actian (formerly Pervasive), Dell Boomi, Jitterbit and Mulesoft, just to name a few) offer integration solutions that enable you to connect, map fields, and integrate business processes between different applications.

Slide14. Go green to save green. You don’t need to be a tree hugger to get value from green technology. Most businesses waste not only environmental resources, but also money and time as well. Often, these resources could be invested in developing new products or services, or to hire and train employees.But its easy to be green. For instance, when you buy new products, look for vendors with green certifications from ENERGY STAR or EPEAT; use eco-friendly packaging to reduce packaging waste; and use recycled plastics in their products. Use “set it and forget” tools, such as smart power strips, to automatically turn off peripheral devices when you turn off the main device, and recycle old equipment so component materials don’t end up leaching into landfills. Moving up green curve, consider making the switch from paper-based marketing, forms and faxes to digital solutions for email marketing, invoicing, etc. Replace some of your travel with web conferencing and consider creating a telecommuting program (cloud-based collaboration solutions such as Google Apps for Business, Microsoft Office 365 and IBM Smart Cloud make this easier than ever) if you haven’t already done so. Finally, if your business suffers from server and storage sprawl, virtualized server and storage resources, consider solutions such as Dell PowerEdge VRTX, which take up less space, require less power to run, and help simplify maintenance.

baroquon_Add_Money5. Upgrade and integrate payments with accounting and financials. SMB Group research shows that many SMBs still spend a lot of time manually re-entering and reconciling payments back to their accounting and financial systems. This not only saps productivity, but also results in errors that end up taking even more time to correct. If you’re still doing this manually, its time to look at solutions that automatically integrate payments with accounting, cutting time and errors out of payment processing, such as those offered by Intuit and Sage. While you’re at it, investigate whether your business would benefit from being able to accept new payment methods. Chances are, you already take checks and credit cards, but getting set up to accept ACH, mobile payments, gift cards or PayPal may be able to help you attract more customers, gain new business, and enter new markets–or just get paid faster.

cloud6. Take to the cloud–but proceed with due diligence.  Cloud computing promises organizations a faster, easier and cheaper route to get the IT solutions they need to create and run their businesses. So it’s no wonder that SMBs are moving to the cloud. However, not all cloud vendors are created equal–and some have backtracked on the original cloud pledge. They have replaced monthly subscription pricing with annual contracts, tacked on fees for all but the most basic support, and created pricing and contracts that are about as clear as mud. Others fall short when it comes to taking security and privacy precautions. Seek out vendors that stay true to the original cloud promise as evidenced with transparent pricing, clear and flexible contracts, free trials and clearly documented virtual and physical (data center) security measures.

SMB Spotlight: IBM’s New Midmarket GM Talks About the SoftLayer Acquisition

ibmsmarterplante-150x150Laurie: Hi, this Laurie McCabe from the SMB Group, and in today’s SMB Spotlight I’m speaking with John Mason, who is IBM’s new General Manager and VP for Midmarket. Hi John. Thanks for joining me on this two-part discussion about developments at IBM in the midmarket and SMB space. In our first discussion, I’d like to focus on the IBM acquisition of SoftLayer, which I understand provides dedicated hosting, cloud computing and cloud services offerings.

Before that though, I’d like to learn more about you and your background. I understand you’re relatively new to IBM. Can you tell us a little bit about where you’ve been and what kind of experience you bring to your role?


John: Thanks Laurie. I appreciate the opportunity to speak with you. I joined IBM three months ago. I started my career at Compaq in the 80s. I spent thirteen years there and moved to Cisco, and ran the SME and midmarket business with Cisco in Europe, Middle East, Africa.

Then, I ran global channels for Nokia’s Enterprise business. I also ran a mobile cloud service in eReading and News for a couple of years, and a white label mobile messaging service provider that had been acquired during my time there.

So, when the discussion started with IBM, it was an interesting combination of different hardware, software and services businesses in small and midsize enterprise and across mobile and social. It was the opportunity to combine that with IBM’s amazing global reach in over 170 countries and find ways to get that to the millions of small and midsized companies. Many are possibly not even doing any business with IBM today but can benefit from those solutions.

Laurie: What will you be focusing on in your new role as GM, John?

John: Finding new opportunities to grow the business and bring mobile and social and analytics, and particularly cloud solutions to small or midsized businesses. This means working very closely with our partner organization and focusing on MSPs as the key route market.

Laurie: Thanks for that background. So help me understand a little bit about the SoftLayer acquisition and why it’s so important. IBM makes a lot of acquisitions in general, and I think probably at least a dozen in the cloud area. What makes SoftLayer stand out for IBM?

ibmsoftlayerimage-150x110John: This is one of those few times in our industry where there’s an absolutely fundamental shift that changes everything. When client-server computing started taking off was one, and when mobile really went to a whole new level was another. Now, with cloud, we’re seeing a major shift, which is very beneficial to smaller and midsized companies. They may not have the IT expertise in-house to take advantage of some of the technologies that larger companies are able to use, but now through cloud, they can use more advanced solutions without having to deal with the complexities.

Laurie: Tell us about what SoftLayer does and how that will help IBM help SMBs? What does it give IBM you that it didn’t have in the cloud area?

John: The SoftLayer acquisition was driven by a change in the way that customers are looking to buy. I would say it’s as simple as answering these questions. Is this technology solution is going to be hosted at your place or mine? Is this something that I have to build and manage on my premises, or is it something that I can tap into through a web browser to connect to infrastructure that’s sitting somewhere else outside of my physical office buildings? Then, is that going to be dedicated to me or is it something that I share with somebody else? So, it’s really your place or mine, shared or dedicated, and what software brings is the ability to offer the full range of different deployment options.

That’s whether it’s a complete public cloud solution or it’s a private cloud or it’s some mix of some parts public, some parts private in a hybrid deployment. SoftLayer lets us accelerate our ability to deliver those pieces across a broad range of different businesses and different services.

Laurie: What about purchasing and pricing mechanisms for customers?

John: Yes, that’s really key. It’s really important to make it easy and simple to understand what the offering is, and how can I choose the combination that is right for me. Then make it really easy for them to purchase and deploy that solution.

The beauty of SoftLayer is they have a very simple credit card purchase capability. You can be up and running literally within the hour and choose whether you want to be billed monthly or hourly. It’s simple and flexible, and that’s as important as the underlying technology.

Laurie: One of the other things that I’m curious about is that it seems like managed services is another big part of the SoftLayer business. IBM has been heavily courting managed service providers (MSPs) for quite some time. Does this create a conflict with them?

John: SoftLayer is really complementary to what we’re doing with MSPs. In fact, we’ve had a number of key wins with MSPs for SoftLayer with service providers who have said, “I really don’t want to have to manage this infrastructure myself. It’s not my core business. My focus is on security services or hosted exchange services. So, rather than me scarce resources building and managing an infrastructure layer, I’d rather focus on the higher value services on top of that, and I’ll use SoftLayer as infrastructure.”

Laurie: Will they be able to resell SoftLayer?

John: Yes, there’s that too. MSPs can use SoftLayer themselves as part of their own infrastructure, or they can resell it to customers together with other value-add services that they bring to the mix.

Laurie: Where does SoftLayer sit in terms of IBM’s SmartCloud services?

John: SoftLayer gives us the ability to accelerate our own leadership position, scale out the smaller cloud service portfolio, add additional higher value services and solutions across mobile and data analytics, social–together with partners. It’s the combination of all of that into a solution that adds value for customers.

Laurie: What kind of experience in SMB and midmarket does SoftLayer bring that IBM can leverage, and how will you do that?

John: I mentioned this earlier in our conversation when we talked about what attracted me to the role at IBM. Frankly, the SoftLayer acquisition hadn’t closed but had been publicly announced. That was a real additional level of credibility that we could use to address the SMB market because SoftLayer had over 20,000 SMB customers already. They clearly have a very strong focus on that market and a solution that is very simple, easy for the smaller customer to understand, choose, purchase, deploy and operate.

So, to me that said IBM’s not just talking about the midmarket, but actually putting a significant investment in technologies, ease of purchase and deployment to enable this. SoftLayer convinced me that we very serious about this and that was a decider for me.

Laurie: What does the bigger go to market plan look like? Many SMBs still think IBM doesn’t have solutions that are relevant for them. How are you going to change that?

John: First, we need to be careful that we don’t hug SoftLayer to death. We need to give them space to continue to operate their own very successful go to market model. There’s always a risk when a big company acquires a smaller company that sometimes the big company process can slow down the smaller company. We will be very diligent about ensuring that doesn’t happen and that SoftLayer continues to operate somewhat independently with their existing go to market model.

At the same time, we need to take advantage of what they bring and combine that with IBM’s traditional business partners, managed service provider partners, and some of the ISVs that we work with. Really, this is more about connecting the ecosystem that needs to work together to deliver solutions to small and midsized companies. SoftLayer helps us accelerate that with a full range of all types of different deployment options–everything from bare metal dedicated servers, virtualized shared servers, managed private and public cloud through to a full range of storage and networking and managed services.

Laurie: So, what does success look like here if this all goes according to plan?

John: I think we’ll see continued acceleration of cloud adoption within small and midsized companies and SoftLayer will help to significantly accelerate the deployment of both hybrid private and public cloud solutions for small and midsized companies. I certainly expect the 20,000 existing SoftLayer customers will increase significantly without putting a specific number on it. Beyond that, it’s about helping MSPs to accelerate their offerings with more value-add services above and beyond the infrastructure layer. That way we really bring complete solutions for small and midsized companies that are simple to deploy and use.

Laurie: John, thank you for joining me, and I look forward to our next discussion, when we will talk about IBM’s other new plans for SMB and mid-market customers.

John: Thank you Laurie. I appreciate the opportunity to have this discussion and certainly look forward to future discussions we’ll have.

This is the first of a two-part SMB Spotlight interview with John Mason, IBM’s General Manager and VP for Midmarket, sponsored by IBM. In the second post, I’ll ask John about other new IBM strategies and developments for SMB and midmarket companies and channel partners.

Dell’s Green IT Growth Path: Paving the Way for SMBs

Slide1We are all becoming increasingly dependent on technology–connecting more devices to more servers and networks to communicate, collaborate, automate and get our jobs done. New mobile and cloud technologies put more information and resources at our fingertips than ever before. We’re updating solutions, devices and infrastructure sooner rather than later to leverage technology that can help us to improve employee productivity, attract new customers and streamline operations.

But we also need to think about the resources required to develop and use technology. What chemicals, metals and synthetic materials are needed manufacture and package bright and shiny new technology devices and systems? Where do these materials come from? Where do they wind up when we discard them for newer ones? How much energy does it take create technology products? And how much power is required to cool massive cloud and corporate data centers–or even just a couple of servers in your office?

While we tend to think that only IT vendors and big businesses can have a significant impact on the environmental impact of technology, all businesses, regardless of size, can use green technologies and practices to contribute to environmental sustainability–and at the same time, reduce costs.

What Is Green IT?

Green IT is the practice of managing technology resources in a more efficient and environmentally responsible way. Relevant areas include:

  • Reducing e-waste. Many metals, minerals, wood products and chemicals required to make and package technology devices. According to the Foundation for IT Sustainability (http://www.ffits.org/), ten percent of the world’s gold production is used in electronics, but only 30 percent of this gold is recovered from scrap. Even worse, only 10% of the copper used in electronics is recovered. Overall, the U.S. EPA estimates that in 2010, just 27% of the 2,440,000 tons of e-waste generated in the U.S. was recycled. This means that 73% is sitting in someone’s attic or trashed–potentially oozing into the soil and eventually into rivers, streams and oceans. In addition, many of these resources are not renewable–so we hasten depletion of a finite supply if we don’t reuse them.
  • Decreasing energy consumption. Consider the energy used to power our devices and data centers. For the most part, this energy is generated through coal-fired plants, which creates the greenhouse gas emissions that are a major cause of global warming. According to this Digital Power Group report, today’s technology and telecom ecosystem now consumes almost 10% of the world’s electricity-about 50% more energy than global aviation industry.
  • Solving environmental issues. Technology solutions can help us understand and remedy and/or prevent environmental issues. For instance, climate change modeling requires super-fast computers to crunch through data to calculate things such as a how fast sea levels are rising, or the likelihood of hurricanes and storms becoming stronger.

According to a recent BLS Green Technologies and Practices (GTP) survey, 57% of U.S. businesses use green technologies or practices to improve energy efficiency within their establishments, and over half use these green IT to reduce waste materials.

SMBs that want to start or build on a green IT strategy should consider not only how they can use technology in a more sustainable way, but also purchase solutions from vendors with a commitment to developing green IT solutions and services.

Why Dell Cares About Green IT

delllogoTechnology vendors have a major role to play in green IT. They can build computers with more environmentally friendly materials, design them to consume less energy, provide recycling programs to dispose of old systems, develop virtualization and cloud computing alternatives, and provide service to help businesses that want to go green.

Dell embraced green IT from early days, when it began its “Design for Disassembly, Upgradeability, Serviceability” initiative. In 1994, Dell became a founding member of the U.S. EPA’s Energy Star Program, integrating energy efficiency into every product line.

The company’s impetus is to make it easier for customers to be green. Dell makes it a point to design with the environment in mind and by embracing sustainability in its own practices, it helps customers reach their own sustainability goals while taking control of resources that create value.

Since then, the company has become an innovator in environmental sustainability.

In its fiscal year 2013, Dell has achieved several environmental milestones:

  • Doubled use of green electricity in Dell facilities. In 2013, 16 Dell facilities purchased 100% renewably generated electricity, more than double the number doing so in 2012.
  • Slimmed down packaging. By switching to padded envelopes for more than 500 items, Dell has reduced shipment weights by 73% to decrease packaging waste.
  • Increased use of recycled plastics. Dell has put 7.8 million pounds of recycled soda bottles and other plastics back to work to create backings for monitors and housing for desktops.
  • Expanded its EPEAT program. Dell customers can now recycle over 200 products, including printers, in nine countries. Dell has recycled more than 1 billion pounds of electronics since 2008.
  • Grew its employee work from home program. 20% of Dell’s workforce now telecommutes, saving an estimated 13 million kWh of energy, and 6,785 metric tons of greenhouse gas emissions–and save $14 million annually on facilities expenses.

Spreading the Green Around

Dell has extended its sustainability initiatives well beyond its own internal operations and goals. For instance, in 2013, the company added social and environmental (SER) criteria to its global supplier selection process, including criteria for clean water and air discharges.

In addition to broadening its EPEAT imitative, Dell is helping customers build proactive, sustainable IT strategies that not only benefit the environment, but save money and streamline operations. Dell Services helps customers assess current technology practices and determine options to green up existing practices, and/or develop new approaches to meet sustainability and fiscal goals.

With each new generation, Dell products consume less power. For instance, Dell has reduced energy consumption in its desktop and notebooks 25% since 2008, and Dell servers are warranted to run for extended periods at up to 113°F/45°C with only fresh air cooling.  Dell KACE Appliances offer green IT management capabilities that conserve energy by controlling how quickly desktops go into low power states.

Taking a green IT approach can also provide companies with benefits beyond energy reduction and cost savings:

  • The University of Nebraska-Omaha slashed energy use by 93% and also increased student access to client computers by replacing traditional desktops with Dell Wyse thin clients.
  • Amerijet cut facility costs by 60 percent through energy efficiency and reduced the time to print a manifest and close flights by 96 percent by implementing a virtualized data center and new business processes.

Perspective

Dell and other IT vendors have a huge role to play in ensuring that we use consume and use technology in a more sustainable way.

But the green IT story isn’t just for Dell and other big businesses. SMBs can develop green IT strategies to reduce their carbon footprint, and gain business and IT benefits in the process.

In the next post in this series, I’ll provide some practical tips to help you get started or continue on the path to help your business reap the benefits of going green.

This is the first in a two-part series sponsored by Dell that discusses why green IT is important, and how SMBs can develop and benefit from their own green IT initiatives.

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