The Right IoT Stuff: V5 Systems Wins Dell’s IoT Contest

The Internet of Things (IoT) has come a long way since 1982, when researchers at Carnegie Mellon University modified a Coke machine to create the first internet-connected appliance, which could report on inventory and whether drinks were cold.

Today, cloud, analytics, wireless and other technologies have advanced to the point where IoT can provide a simple, effective way to communicate with and through machines to get things done more easily, and to make better decisions. IoT, which connects physical world objects to the Internet to sense, control, interact and report on activities, is growing at an exponential pace. IDC and Intel project that the number of IoT objects will grow from 2 billion objects in 2006 to a projected 200 billion by 2020, equating to about 26 smart objects for every person in the world. And while consumer devices get the lion’s share of attention, industry represents the greatest opportunity for IoT to help companies track inventory, manage operations, improve efficiency, save money and protect people and property.

So it’s not surprising that according to CB Insights, corporate investors (e.g. corporations and their venture arms) have funneled $3.2B into the IoT space over the past six years, and that in 2015, they nearly doubled their 2014 IoT investments.

V5 Systems: From 12 Volt Batteries to State-of-the-Art Outdoor Security Systems

Amidst so many IoT startups, what makes one rise to the top? Dell has just announced the winner of its “Connect What Matters” Internet of Things Contest, in which it sought out innovative IoT solutions for businesses that incorporate Dell’s Edge Gateway. More than 970 contest registrations from 93 countries with 16 winners from 9 different countries claiming prizes worth more than $600,000.

Dell awarded the top, Platinum honor to V5 Systems for its V5 Portable IoT Security System, which fuses edge and hybrid cloud analytics capabilities into a pre-integrated, compact and solar-powered wireless outdoor security system.

Mazin Bedwan

Mazin Bedwan, V5 Systems President & COO

As with most great stories, V5 has an interesting beginning. I had a chance to interview President and COO Mazin Bedwan, about the company’s roots and solution. Mazin had previously been CEO of Pacific Stereo in the Bay Area, which was the largest 12 Volt automotive electronics retailer in North America. A few years ago, Steve Yung (then an ex-Cisco executive, now Chairman and CEO of V5 Systems) came to Pacific Stereo looking for a four-camera security system for his Volvo SUV. He wanted it to run–regardless of whether his car was running or not. Mazin tried to sell him a $200 car alarm, but then learned why Steve wanted an always-on camera system. Steve lived in a nice neighborhood that was experiencing rolling blackouts, making it easier for criminals to break into cars and homes. He wanted a car-mounted security system to watch his house from his driveway, as he was intent on catching the bad guys.

A few weeks later, Mazin and his brother Eddie delivered the camera system to Steve, who decided it was commercially marketable after it recorded video that led to the arrest of a home intruder/burglar. They named the company after V5, the region of the brain responsible for motion detection.

Bringing the Right Stuff to Dell’s IoT Contest

PSU Solution

V5 Systems V5 Portable IoT Security System

V5 Systems’ V5 Portable IoT Security system solves a big and pressing problem. Until V5 brought this solution to market, outdoor security vendors would cobble together solutions with off-the-shelf parts. Because power isn’t readily available in many outdoor locations, vendors would fill up trailers with 12-volt batteries and or diesel generators to back up solar panels, power cameras and motion sensors, and then tow the solution around.

Mazin emphasized that V5 chose innovation over integration to create an alternative to this cumbersome approach. Numerous patents and trade secrets attest to V5’s mission to deliver IoT value through innovation on many fronts.

Superbowl Deployment

V5 Portable Security Unit Deployment at Super Bowl 50

For instance, V5’s Portable IoT Security System:

  • Overcomes the power supply challenge. V5 has been granted 6 patents for its solar-powered smart power system, which enables it to run continuously outdoors. This negates the need for multiple batteries and generators, and the space they take up.V5 Systems has developed their own proprietary power and power management system. This means businesses can deploy the device to create a security zone in places without power–such as on a mountain top or in a forest–and get real-time alerts sent to their IoS or Android devices. 
  • Makes installation and transport easy. Businesses can install and start using the device, in under an hour. V5 pre-integrated computing, power, communications, storage and sensor capabilities in what amounts to a micro-data center. Because no trenching is required, users can circumvent lengthy permitting processes. And, at less than 20 inches long, it’s a snap to take the device down and redeploy in another location, such as changing security vantage points at festivals, concerts and other events.
  • Features bullet-resistant solar panels. Solar panels are a real pain point for law enforcement, because people can shoot and break them. V5’s proprietary bullet-resistant solar panel provides customers with an additional level of reliability, and gives V5 strong differentiation versus competitors.
  • Improves analytics accuracy. V5’s analytics library increases the accuracy of the data sent from the device. For instance, motion sensors at airports can be triggered by turbulence from planes, but V5’s analytics library provides more granular identification. For instance, at San Jose Airport, V5 has achieved 98% accuracy in detecting actual people or vehicles versus motion from jet turbulence.
  • Not only sees, but also hears. Unfortunately, campus violence has become all too common. Prior to deploying V5’s multi-sensory solution, San Jose State University lacked the capability to deploy a multi-sensory security solution for Spartan Stadium and one of its dorms. Now, the university has deployed V5’s Portable IoT Security System with cameras as visual sensors and microphones as acoustic sensors, to monitor dorms and Spartan Stadium from vantage points outside the facilities. The multi-sensory capabilities enable them to detect gunshots with 95% accuracy distinguishing gunshots from other loud sounds, and also to triangulate where the shots are coming from.
  • Will soon be able to detect chemicals. Methane, ammonia, chlorine and other gases are hazardous to breathe. With enough volume, these gases can also cause explosions, as on a Los Angeles city block in 2016, and in a cow barn in 2014 in Rasdorf, Germany. V5 will add chemical sensors in Q4 of this year.

Scaling With Dell

V5’s system is relevant and replicable across many industries. But V5 initially targeted law enforcement agencies. According to Mazin, they figured if they could succeed with skeptical cops, they’d succeed anywhere. Law Enforcement represents 10% of V5’s addressable market but accounts for 90% of its credibility. This strategy has worked, with endorsements from early law enforcement customers helping V5 open the door to sell to airports, universities, transportation, oil and gas, agricultural and other industries.

However, V5 needed help to effectively scale its solution, sales and service capabilities. Through its partnership with Dell, which began in 2015, Dell Services sells a unique V5 SKU. The SKU includes V5’s portable security unit, sensors, enclosure, power system, communications, storage and Dell’s Edge Gateway. Dell Services also provides 24/7 first-line tech support for the system, and access to Dell Financial Services.

Dell Unit

Dell Edge Gateway

 

V5 has also standardized on Dell servers.Dell’s Edge Gateway serves as the “industrial IoT brain” for the system, connecting to V5 devices. The Gateway Edge aggregates and analyzes the input, and sends it on to users’ Android or IoS devices. Because the Edge Gateway is designed for harsh conditions (from temperatures ranging from -30°C to 70°C), has a low-energy, fanless design, wall and DIN-rail mounts and it can sit within the V5 device. As a result, it sends only meaningful data to the cloud or control center, reducing data overload and bandwidth requirements.

Summary and Perspective

IoT is more than a technology buzzword. It is literally changing the very definition of computing. With IoT, devices and objects of all shapes and sizes can communicate directly, and as Mazin noted, “we’ve created a system that fits in your hands, has all the capabilities of a data center and can be deployed in any outdoor environment.”

IoT companies such as V5 and others highlight the enormous potential to IoT to do many things more easily, cost-effectively and intelligently than was possible in the past. IoT challenges–including privacy, security and skills–still need to be addressed, but the increasing digitization of the physical world make the sky is the limit for IoT innovation.

Mazin, Steve and Eddie seized this opportunity, creating a new business and business model based on the Industrial IoT. They serve as a great example of how IoT is redefining and reshaping how businesses get things done, and the elements needed to turn an idea into a reality.

This post was sponsored by Dell.

 

SAP’s Digital Transformation Story For SMBs

“Digital transformation” is one of the top trending buzzwords in technology today. But what does digital transformation mean? In broad terms, many define it as using digital technology to enable innovation and new, often disruptive, business models. However, technology vendors put different spins on digital transformation, depending on how their solutions fit in to the puzzle.

Most small and medium business (SMB) decision-makers view technology as a key to improving business processes and outcomes (Figure 1). But at the same time,SMBs rank “figuring out which technology solutions can help my business” as one of their top three technology challenges. Although SMBs have bought into the concept of using technology to improve and transform their businesses, many struggle to when it comes to putting a strategy in place to achieve these goals.

Figure 1: SMB Technology Attitudes and ChallengesSlide1

So I was interested to hear how SAP is framing the digital transformation story for its SAP Business One partners at SAP’s Business One Americas Innovation Summit in April. Although the ERP giant is best know for its large enterprise solutions, Business One, with over 50,000 customers worldwide, is SAP’s flagship business management solution for SMBs.

SAP’s 50,000 Foot View of Digital Transformation

In his opening keynote, Jonathan Becher, Chief Digital Officer at SAP, addressed the growing reality that today, companies need to disrupt or be disrupted. Unlike the industrial revolution, which allowed for a more linear approach to change, the digital era requires exponential change. Becher described digital transformation as consisting of three fundamental shifts:

  1. New customer experiences, such as in the music industry, which has evolved from vinyl records, tapes and CDs to iTunes and then Spotify and other streaming services;
  2. New business models, again using the example of the music industry, and its evolution from analog to digital buying and streaming;
  3. New value creation, as in the case of Airbnb, which has used technology to create a new way for people to list, find, and rent lodging.

While human creativity provides the spark, technology is the fuel that enables businesses to change their business processes and make the vision a reality.

Figure 2: Digital Business Requires Different ProcessesScreen Shot 2016-05-24 at 9.21.49 PM

HANA: SAP’s Innovation Foundation for Business One

In 2014, Business One became SAP’s first business management solution for SMBs running on SAP’s HANA computing platform. Positioning Business One SQL Server edition as the past, Luis Murguia, SAP’s Senior Vice President and General Manager for Business One, positioned SAP Business One HANA as the “foundation for innovation.” With Business One HANA, SMBs can analyze massive amounts of structured and unstructured information within seconds instead of days, and use predictive analytics to gain new insights into data and optimize business decision-making.

SAP has also modernized Business One with new cloud deployment services from within the SAP cloud. The cloud option is key to SAP Business One HANA growth in the Microsoft-centric SMB market, as it negates the need for the SMBs to understand deploy and manage a new database.

I asked partners at the event, including ECS, Vision 33, Boyum and AchieveIT Solutions, for their views on why customers choose Business One HANA. They noted the solution’s enterprise search capability, which allows users to quickly search for key information. Instead of stepping through tedious pull down menus to find information, such as how many units of an item are in stock, what’s sold and what’s been reordered, users can do a quick search. Another favorite is the ability to create interactive, Excel-like spreadsheets that are connected to the HANA database and refresh in seconds, enabling users to quickly slice and dice data, and make decisions based on real-time information. Partners also said customers see Business One HANA’s user-customizable dashboards and predictive analytics capabilities as top benefits.

Murguia described some real-world examples of how SMBs are using Business One HANA to transform their businesses. For instance, he discussed how a Medistance, an Omron medical equipment distributor in East Europe, changed the game against larger competitors by developing a remote managed care service. Medistance, which had been selling the devices, created a remote managed care service to monitor users’ blood pressure and glucose levels. It now gives away the devices to subscribers to its $15 per month service, which provides alarm notifications and services to evaluate risks and treatment recommendations.

SAP Business One Partners: Key to Moving from Steady to Exponential Growth

Overall, SAP has been steadily growing Business One’s footprint. Sales are up 17% year-over-year, and in 2016, Business One has been adding an average of twenty new customers a day. More important, Business One HANA revenues are also rising. According to SAP, 180 of the 1,000 new Business One customers last quarter chose HANA. However, while SAP is making good progress in wooing new Business One customers to HANA, key challenges remain when it comes to catalyzing exponential growth.

As Murguia noted, Business One partners are essential to accelerating this type of growth. But although some partners have seized on the opportunity Business One HANA provides to sell the digital transformation story, others are sticking with what they know—which is the Microsoft SQL Server version of Business One.

To persuade partners to make this transition, Murguia exhorted them realign their resources and thinking from opportunistic to having a clear vertical and geographic focus. With industry expertise, partners can provide SMBs with guidance for industry-centric innovation, using HANA, cloud, analytics, and mobility as the fuel for change. He underscored the need for partners to make this shift by noting that:

  • SAP introduced a new mobile app for sales professionals, which will only run on Business One HANA.
  • Only Business One HANA supports multi-currency.
  • SAP is providing incentives to sell Business One HANA.
  • 95% of new customers use Business One with an industry add-on, and 200 top Business One ISV partners have migrated over 600 vertical apps to HANA.
  • Millennial decision-makers will demand the type of Internet-like experience that Business One HANA provides.

Upping Business One’s Go-To-Market Game

SAP is investing in industry-specific marketing programs for consumer packaged goods (CPG), industrial machinery and components, professional services, retail, wholesale and distribution. It is also recruiting non-traditional partners with industry expertise, and providing more support from SAP inside sales to help partners build their pipelines. In addition, SAP has extended its University Alliance program beyond four-year institutions to partner is with community colleges to use Business One HANA in the classroom to encourage more trained millenials into the partner fold.

The vendor is also doubling down on content by making it easier for partners to find and use relevant case studies and to personalize their own success stories. SAP will help partners create more mobile-friendly, bite-size content for its Business One Repository, which currently has over 2700 testimonials. SAP is also “humanizing communication” with local advertising with its “Business One around the world” theme which features local landmarks, and a push to expand social media engagement beyond current Business One customers to a broader swath of businesses in it’s targeted vertical markets.

Perspective

The digital transformation imperative is clear. Businesses can actively embrace new possibilities and set themselves apart in their markets, or ignore it and risk being stream rolled under.

SAP Business One has a good story and positive proof points in terms of helping SMBs navigate this transformation. In fact, partners told me that once they are in a deal, win rates are over fifty percent.

However, getting into consideration (outside of some European countries and Latin America, where SAP Business One is a recognized SMB brand) is still a struggle. In many geographies, SMBs often discount SAP as a big business brand that’s not for them.

Furthermore, SMBs have many choices when it comes to ERP. While SAP Business One HANA is much less complex than its large enterprise ERP solution, Business One is arguably more complex and takes longer to deploy than several other choices. Some businesses are willing to accept complexity in return for a high degree of customization capabilities, but many will balk at the upfront learning and implementation curve,

To meet its exponential growth goals, SAP needs not only to deliver on the marketing programs discussed above, but must also:

  • Develop more compelling “high air cover” brand awareness. SAP needs a much more compelling, omnichannel brand campaign to increase the odds that Business One gets invited to the SMB table.
  • Do a better job of “connecting the dots.” How exactly does SAP Business One HANA help SMBs transform and achieve success in the digital era? Why is It more effective than other solutions? SAP must paint a more detailed picture and provide more industry-specific metrics to drive the story home.
  • Clear up the cloud story. Business One cloud options are still difficult to sort through. My understanding is that services from the SAP cloud are available in North America, but not in other countries. Some of the European partners I spoke with have their own hosting centers, and say that because of customization requirements and data privacy laws in Europe, multi-tenant cloud isn’t a viable option. If SAP really wants to use the cloud to fuel HANA adoption, it needs to have a much more straightforward cloud story or risks having pure cloud competitors undermine it in deals where cloud is the customer’s preference.
  • Put the SAP SMB puzzle pieces together. SAP needs to pull together Business One, Business By Design, Concur, Ariba, SAP Anywhere and other SMB-related SAP solutions into a more holistic, understandable SMB strategy.

SAP has come a long way in transforming the Business One solution for the digital era. However, only time will tell if it can go the distance with additional steps necessary for solution transformation, partner development and marketing reinvention.

Dell’s IoT Strategy and Partner Programs: Part Two

canstockphoto24687951Laurie: Hi, this is Laurie McCabe from SMB Group, and today I’m continuing my conversation with Jason Shepherd, who is Director of strategy and partnerships for Dell’s new Internet of Things (IoT) division. In this second post, we talk about top challenges IoT partners face, how Dell helps address these challenges, and get an update on Dell’s IoT contest. In the first post,  Jason provided an overview of Dell’s new Internet of Things division and how its partner programs are structured. In this one, I’m following up to hear about your meeting with Dell IoT partners recently to talk about their challenges. What did you learn?

Jason: Yes, we had our first IoT partner round table, with over 30 different ISV partners, to have an open discussion about their challenges and what they need to accelerate in the market. (see one attendee’s perspective here). We found that their number one challenge, after security–or in some cases, even before security–is data integration. They are looking for hardware solutions, such as Dell’s Edge Gateway 5000 Series to provide a foundation for normalizing all the different fragmented data standards in the field.

Another top challenge is making end users aware of the potential of IoT, helping them to understand potential ROI (return-on-investment) for a solution, and convincing them to take that first step to deploy. So in addition to helping partners on the technology side, partners also want Dell’s help with marketing use cases, case studies, solution blueprints and other assets that help demonstrate ROI and show customers IoT’s potential.

We’ve found that Dell’s perspective about starting small and building fast for IoT is really resonating. There’s a lot of big talk about IoT, and that can be overwhelming. Dell’s approach is practical, to help people first connect existing systems and solve an immediate problem, and then build from there. And then of course, being able to incorporate security and management tools that IT is familiar with helps our OT-focused partners gain credibility and overcome potential IT hurdles. Also, partners need help to connect with other partners. At the end of the day IoT is a partnership game.

Dell’s focus on edge gateways, combined with providing credibility and visibility are really critical, especially for smaller innovators in this space. The other thing that came out of it was having quality hardware. Something in the sweet spot between maker-grade and boutique product that’s purpose-built for these industrial use cases but affordable, that they can really trust and rely on. They’re looking to us to help with that.

Laurie: Can you talk more specifically about the kinds of support you give them?

Dell’s IoT lab in Singapore

Dell’s IoT lab in Singapore

Jason: Yes. We have certification and sales engineers that work with partners to go help them build on Dell technologies, and we have Dell IoT Labs around the globe (Santa Clara, Limerick and Singapore). Partners and customers can bring in their own technology to prove out their solutions on Dell technology.

As partners build solid use cases for their solutions, we can help them create blueprints, ROI proof points, and go to market plans to jointly pursue opportunities.

Laurie: Do you do that on an individual basis?

Jason: Yes, and as Dell and its partners mature together and IoT use cases become even more repeatable, we can develop focused solution bundles complete with sensors, infrastructure and software. We won’t be able to do this for highly complex scenarios but it’s certainly foreseeable that we can create bundles for things like a remote monitoring solution for a data center, a predictive maintenance solution for a machine, a quality control system for the end of a manufacturing line, or a building automation solution for a small retail space. Reducing complexity through solution bundles is where you really start to enable scale or deploying IoT solutions.

Laurie: Do you foresee Dell building sensors?

Jason: We’re do not plan to make sensors, but in time we will certify partner sensors to work with Dell Gateways, the rest of our infrastructure and enabling technologies, and offerings from our key software partners.

Laurie: Okay. So, what are some of your favorite partner stories?

arrow logoJason: One is Arrow Electronics, which we showcased at Dell World last fall. Arrow has a warehouse in Phoenix, with eight business units using the facility and power. They all just split the power bill at the end of the month, because they couldn’t determine who was using how much. Arrow, their system integration division, and OSIsoft, which is a well-recognized leader of data historian software with their PI platform, teamed up with Wireless Glue, a startup that provides gateway middleware for connecting to industrial sensor protocols. They all came together to build a solution to instrument the warehouse and create dashboards and analytics of the power consumption. which is a great example of how different partners with different capabilities can join forces to solve a problem. And now that Arrow has the IoT infrastructure in the warehouse they can look at other things they can do to add value. For example, it could be something like making their forklifts more effective, or doing indoor location tracking for pallets and other assets in the warehouse.

Laurie: So the light bulb goes on and they start to look at other use cases.

Jason: Yes, once you have that infrastructure you can start to riff off of it and do new things. It’s a classic example of starting with a focused problem—not trying to do too much at once. Fix the core problem and then grow from there, which is right in line with our message of starting small and building fast

Inex logoAnother example is INEX IoT Impact Labs, in New Bedford, MA, is focused on accelerating and improving how small and mid-sized businesses (SMBs) in the community learn about and gain value from the Internet of Things (IoT). Dell,  IoT IMPACT LABS’ parent INEX Advisors, Analog Devices, BCC, Foley and Lardner LLP, and PTC Inc. have teamed up to create this IoT solutions hub with many of the end users being fisheries or farms–small businesses in small cities, which don’t have the IT expertise or resources to take advantage of IoT on their own. The Lab is working to field-test, document and commercialize the most efficient and effective approaches to IoT so that SMBs can deploy solutions to level the playing field and help them compete more effectively.

Laurie: Yes, INEX is very interesting, this video does a great job of telling their story. One last question for you: How is the Dell Internet of Things contest shaping up?

Jason: Really well. Solution designs had to be submitted by March 31 and we received more than 120 submissions worldwide from a mix of current Dell customers, ISVs, developers, systems integrators, entrepreneurs and channel partners. Across all different sizes and industries, in different verticals–from universities and schools to hospitals to financial services to food distributors. All are interested in building solutions on top of our new Edge Gateway and with other Dell technologies. We’re seeing use cases that we’ve never even thought of, which is what’s really exciting about bringing this community together in this way.

Laurie: How will you select winners?

Jason: We’ll be looking for solutions that are really innovative, and also have strong market viability, balancing technology, implementation, and go to market opportunities.

Laurie: When will the contest be judged and winners announced?

Jason: Judging is underway and it’s going to be tough to pick the winners. I anticipate in the May-June timeframe we’ll start to announce the winners. There will be 16 prizes, and the total prize value is $600,000.

Laurie: I’m sure you’ll get some really creative entries, please keep me posted! Maybe we can do a follow up about the winners. And thanks again for taking time to dive into Dell’s IoT program with me.

This is the second of a two-part blog series on Dell’s new Internet of Things (IoT) division and partnership programs, sponsored by Dell.

 

Can IBM’s Redesigned PartnerWorld Move the SMB Needle?

ibm pw logoEast coast weather and flight issues foiled my attempts to attend IBM’s annual PartnerWorld Leadership Conference last week. I was disappointed, as IBM took advantage of the event to formally launch its newly revamped PartnerWorld program, which focuses on helping partners drive business in strategic areas, most notably in cognitive and analytics. However, I was able to talk to Brig Serman, IBM’s Director of Global Commercial Business, about what these changes mean for IBM, its partners, and small and medium business customers.

Here are some of what I consider the key changes that IBM made, followed by my perspectives on them.

  • Introduced the newly named “commercial segment.” This segment includes the former midmarket segment (businesses with less than 1,000 employees) and “white space” larger enterprises in which IBM has a small or non-existent footprint. IBM has consciously moved away from identifying this segment based on company size, and calling it “SMB” or “midmarket.” Big Blue made the shift because it believes that this segment—which it sells to via the channel—is not well-defined by size, and that other characteristics such as different buying and consumption behavior, including self discovery, self-service transactions, a preference for cloud, and partner involvement.
  • Committed to a channel only model for the commercial segment. IBM has committed to serving this segment by driving higher value solutions exclusively through its global business partner network. Brig’s group includes 450 IBM sales people. Each is responsible for a territory, from understanding market requirements to driving engagement with business partners to increase penetration in that territory. IBM sellers will only be compensated if the sales transaction goes through a business partner.
  • Redesigned the PartnerWorld program to help partners provide more value to this segment. IBM is offering partners refined “roadmaps” to help partners identify and build skills in selected areas in a more simplified and integrated way. These roadmaps direct business partners to invest in software asset certifications for all software brands, with a focus on analytics, cloud, security and mobile solutions. Partners will earn incremental incentives for sales in these areas, offering margin opportunities that are two to three times higher than for hardware sales. The goal here is to help partners move away from hardware only sales towards higher value solutions that include IBM software, industry expertise, their own IP and/or integration. IBM is also providing Business Partners with the shared best practices of its most successful partners, so they can model skills investments, lead generation, presales and post sales support more effectively and make investments that will pay off.
  • Announced new digital programs to help partners build skills. IBM is expanding digital partner benefits. It has overhauled the PartnerWorld University portal, which offers web-based training for both sales and technical skills, adding new courses and certifications, and giving users more tools to track and manage their progress. IBM is also adding Digital Marketing workshops to help partners use digital and social media more effectively. Big Blue is also expanding its Business Transformation Initiative (BTI) to help more partners move up the solutions value chain. Finally, IBM is offering developerWorks.Premium at a reduced price to help developers more easily tap into the IBM ecosystem and build new applications on IBM Cloud.

Perspective

Although IBM has changed the name, the Commercial segment really has the charter as it did before the name change: to help IBM more effectively reach the millions of businesses that it doesn’t sell to today.

IBM’s new channel programs and directions will certainly help IBM increase its footprint in the large enterprise “white space,” where its worth it in terms of deal size for the business partner and IBM to make the investment. The new initiatives are also a step in the right direction in terms of making gains in the SMB market, as partners are clearly IBM’s best bet to grow, scale and make headway in this diverse and complex space. Boosting partners’ technology, sales and marketing expertise will help them make some inroads with prospective IBM customers. These tactics should also help partners more easily surface solutions that might be a good fit for SMBs who are looking to solve a problem.

But IBM also has a big perception problem in the SMB market. Many SMBs believe IBM lacks solutions that are relevant, consumable, and priced right. While IBM does have some solutions, such as SoftLayer, IBM Verse (for collaboration) and cloud-based Watson analytics that are suitable for SMBs, and has recently begun offering free trials for a handful of them. But, most SMBs are blithely unaware of them, and while IBM has the vision, it really doesn’t have mechanisms in place to stimulate the type of viral adoption that vendors such as Google, Box and Slack have enjoyed. In fact, IBM’s cloud marketplace is just in the early stages, and having IBM solutions in third-party marketplaces is also nascent.

Furthermore, all businesses (regardless of size and whether or not they are IBM customers) are doing much more research, comparisons and shopping and purchasing online. IBM is changing its high-level value proposition (e.g. easier to discover, shop for, buy and use) to accommodate this evolution, and intends to make the necessary business model and solution changes required to execute on it. But, this type of tectonic shift will take time, and in the interim, it will be difficult for IBM raise awareness about the relevancy of its solutions for the broad SMB market.

Given these realities, helping business partners to invest to accelerate skills development and marketing and sales movement will only go so far. To really move the needle, IBM needs to fully execute on significant cultural, business model, sales and marketing and product design changes. Whether or not IBM has the will to put enough time, energy, commitment into the market to make bigger gains this time remains questionable.

Using Cloud Analytics to Make Big Data Actionable For SMBs

abstract data

“Big data” is a big buzzword in the IT industry—and for good reason. Basically, we’re doubling the amount of digital data that we create every two years, according to the EMC Digital Universe Study. Think about all of the different types of information that’s moved from physical to digital form just over the last several years.

Doctors have moved from paper charts to electronic medical records; merchants have moved from paper credit card imprinters to POS terminals to virtual terminals to mobile payment devices. Internet of Things (IoT) technology is equipping objects—from Fitbits to traffic sensors to seismographs—to record, report and receive data, and create entirely new digital data streams. And everyone is growing their digital footprint on myriad of social networks, and with the companies they do business with,

Organizations that can effectively harness and use this information can gain dramatic market advantages over those that don’t: SMB Group’s 2015 SMB Routes to Market Study shows that SMBs that have deployed analytics solutions are 14% more likely than peers to expect revenues to rise than peers that rely on spreadsheets for business analytics.

But let’s face it—most small and medium businesses (SMBs) don’t have dedicated data scientists on staff. Without this type of in-house expertise available, SMBs feel that moving from basic tools that analyze internal, transactional data to a more comprehensive analytics approach is out of reach.

However, a new generation of powerful, yet cost-effective cloud-based analytics solutions are emerging that can help level the analytics playing field for more SMBs.

Cloud Is the New Normal for SMBs

SMB adoption of cloud solutions has grown steadily over the last few years (Figure 1) to become part of the business fabric for most SMBs. In fact, SMB Group’s 2015 SMB Routes to Market Study reveals that SMB cloud deployments are poised to overtake on-premises deployments in the next year in areas such as collaboration, file sharing and marketing automation.

Figure 1: Trends In SMB Cloud AdoptionSlide1
SMBs are moving to the cloud include because they view it as a more cost-effective, flexible and faster way to deploy IT solutions (Figure 2). Cloud computing take care of IT infrastructure, applications, and ongoing management and support, offering SMBs economies of both scale and skill.

Figure 2: Top Reasons Driving SMB Cloud AdoptionSlide2

Analytics Meets the Cloud

In the analytics space, in which technology is advancing at warp speed, cloud analytics providers are building powerful, yet easy to use analytics solutions that few SMBs would have the resources or expertise to build on their own.

For instance, cloud analytics solutions often utilize database technologies that can deal with both structured and unstructured data, so that you can analyze different types data from both internal and external sources. They also use technologies to speed data processing, number crunching and analytics to deliver analysis more quickly to decision-makers.

Some vendors provide pre-packaged applications that integrate all of the components necessary for analytics solution, including connectors to business solutions; the data model; tools to extract, transform and load (ETL) data; a semantic layer; query and reporting capabilities; and predefined metrics, reports and dashboards.

In addition, cloud analytics providers build their infrastructures and services to support thousands of companies. This means they can offer customers on-demand scalability to adjust resources up or down as needed for peak decision-making times, such as during the holiday season for retailers.

Cloud analytics also gives everyone access to the same information in real-time. Instead of trying to reconcile data from different spreadsheets and applications, everyone is automatically on the same page in terms of data so they can reach consensus and make decisions more quickly.

As important, cloud analytics solutions are often designed for business users, offering capabilities such as:

  • User-friendly interfaces, with guided discovery to make it easier to ask the questions that will lead to “aha” moments and insights.
  • Visualization tools that turn rows of data into visuals that represent what the data says in intuitive ways.
  • Natural language capabilities so users can easily query the data.

With these capabilities baked in, SMBs can start thinking about moving beyond descriptive analysis, which provides insight into the past to answer, “What has happened?” to more sophisticated analysis, including:

  • Predictive analytics, which use statistical models and forecasts techniques to understand the future and to answer, “What could happen?” For instance, you could use predictive analytics to anticipate customer behavior and purchasing patterns, predict sales profitability trends, or forecast inventory demand.
  • Prescriptive analytics, which use optimization and simulation algorithms to provide advice on possible actions to answer, “What should we do?” For example, Google’s self-driving car uses prescriptive analytics to decide whether and when the car should change lanes on highway by anticipating what might be coming in terms of traffic and other drivers.

SMB Preference for Cloud Analytics Is Growing

As in other solution areas, more SMBs are opting to analytics solutions in the cloud (Figure 3). SMB Group’s 2015 SMB Routes to Market Study shows among the SMBs that have purchased or upgraded an analytics solution in the past 24 months, 62% selected an on-premises solution, while 38% chose a cloud option. Looking ahead, however, just 40% of SMBs that are planning to purchase and/or upgrade analytics solutions are planning to buy an on-premises solution, while 42% are planning to use a cloud offering, and 18% have yet to decide.

Figure 3: SMBs’ Current and Planned Solution Deployment Methods for Business Intelligence/AnalyticsSlide3

Summary and Perspective

At a time when information is proliferating at an unprecedented rate, SMBs need to be able to easily access, understand, analyze, report and act on critical information. With the right tools, decision-makers can spot new opportunities, avoid mistakes and identify small problems before they mushroom into big ones.

Fortunately, more vendors are building powerful yet cost-effective cloud-based analytics solutions that are much easier to “layer” on top existing data than in the past. Designed for business users, these solutions offer user-friendly interfaces, guided discovery, visualization tools and natural language capabilities to help bring data to life.

While SMBs must still do their homework to determine which of the growing list of cloud analytics solutions will be the best fit for their businesses, the advantages of fact-based decision-making cannot be underestimated. The trend towards cloud analytics will likely strengthen in 2016, as more SMBs continue to opt for solutions that are easy to buy and use and can provide faster and better value to the business.

This post is sponsored by Dell.  

 

 

Does Salesforce’s Refreshed SMB Strategy Add Up?

salesforce logoSalesforce hosted its second annual Analyst Summit last week. This year’s format was much more engaging and interactive format than last year, sparking lots of interesting questions and discussions among analysts and the Salesforce team.

At a high level, Salesforce’s executives laid out the company’s key themes for 2016, which included:

  • Continuing to invest in its core CRM space to maintain market dominance. To that end, Salesforce recently introduced its new Lightning user experience and development framework, along with Trailhead, its interactive learning platform to help users and developers transition more quickly and easily to Lightning.
  • Using IoT to strengthen customer engagement. Salesforce announced Thunder, its IoT Cloud, at Dreamforce 2015. Salesforce’s Adam Bosworth emphasized that while Thunder isn’t yet ready for prime time, it is in pilot with several customers. Salesforce is focusing on connecting IoT with business processes and customer experience to help its customers to help drive sales and revenues.
  • Reimaging Wave Analytics to provide better insights to users. Salesforce initially launched Wave Analytics as a platform in 2014, with plans to develop apps on top of the platform over time. After hearing from customers that it was too expensive and focused too much attention on the platform play and not enough on providing enough prebuilt apps for business users, Salesforce introduced its next iteration of Wave at Dreamforce 2015. In addition to a streamlined pricing model, the new version offers prebuilt sales templates and apps that make it easier for sales reps to get more value from their customer data.

Of most interest to me, however, was that Salesforce devoted more time to its strategy and solutions for SMBs than last year.

From SMB Startup To Enterprise Powerhouse

Salesforce.com website circa 1999, courtesy of Internet Archive Wayback Machine (https://archive.org/web/).

Salesforce.com website circa 1999, courtesy of Internet Archive Wayback Machine (https://archive.org/web/).

When Salesforce was founded in 1999, it was focused on the SMB market. As a cloud pioneer, Salesforce captured the market’s attention with its story of faster, easier, better and less expensive CRM. While SMBs were its target in the early going, the marketing genius of Benioff and a stellar sales team quickly moved Salesforce upstream, and capitalized on replacing enterprise dissatisfaction with Seibel to become the undisputed 800-pound CRM gorilla in the enterprise market.

To accommodate demands from large customers and a rapidly evolving market, Salesforce expanded its vision over the years to become what it now terms a “customer success platform.” Today, this platform encompasses many parts and solutions, including:

  • Multiple editions of its core CRM solution
  • A veritable storm of clouds (sales, marketing, service, community, etc.)
  • New Thunder and Lightning initiatives
  • More than 35 acquisitions, from ExactTarget to SteelBrick.

However, as I wrote in this post, Salesforce’s SMB Story: Great Vision, But a Complicated Plot Line, amid its enterprise success, the Salesforce story became harder for the average SMB to parse through. And, while the vendor offered relatively low entry-level pricing for it former Group Edition ($25/user/month), SMBs faced a steep jump to Professional ($65/user/month) if they needed more functionality that many wanted, such as pipeline forecasts, campaign management, contract storage and quote delivery, custom reporting and dashboards.

Either as a by-product or intentionally, Salesforce’s SMB story has evolved to focus on the “fast growth” SMBs and digital elite, where it has done an excellent job of capturing market share.

But when it comes the vast majority of SMBs the math is revealing. True, Salesforce is the #1 CRM vendor in SMB: SMB Group’s 2015 Routes to Market study shows that 25% of SMBs (1-999 employees) that currently use a CRM solution use Salesforce. However, 75% use other brands, from old-guard competitors such Microsoft and ACT!, to newer ones such as Insightly and Pipeliner. And then there are all of the SMBs still using Excel, email and/or basic contact management solutions.

Furthermore, according to Salesforce, about 150,000 businesses in total use its solutions, and about one-third of them (or 50,000) are SMBs. When you consider that there are roughly 6.5 million SMBs with employees (plus another 17 million or so solopreneurs) in the U.S. alone, Salesforce has barely scratched the surface in SMB market.

Salesforce’s New SMB Story

Recently, Salesforce has begun to refocus its SMB story, for a few reasons. In addition to the huge, untapped market potential, Salesforce sees SMBs as canaries in the coal mine in terms of requiring the simplicity and ease of use that all businesses—even large ones—increasingly demand from business application vendors. Salesforce also wants to tap into SMB diversity and innovation to help keep pits own focus fresh.

Screen Shot 2016-01-19 at 12.57.27 PMTo that end, Salesforce has recently taken a couple of big steps to refocus its SMB story, including:

  • Launching SalesforceIQ for Small Business at Dreamforce in September 2015. Positioned as “the smart, simple CRM to grow your business,” SalesforceIQ, at $25/user/month, replaces Group Edition as the vendor’s CRM entry point for SMBs. Based on the acquisition of RelateIQ, SalesforceIQ automatically captures, analyzes and surfaces customer information across email, calendars and other channels, using pattern recognition to provide users with sales insights and proactive recommendations.
  • Announcing a free integration between Desk.com, Salesforce’s small business customer service app and SalesforceIQ. The integration gives give SMBs a unified view of their customers, enabling them to provide the more connected, personalized experience that their customers will increasingly demand.

Screen Shot 2016-01-19 at 1.02.03 PMSalesforce also quietly rolled out Trailhead  in 2014, and then showcased it at Dreamforce 2015. Trailhead provides users, developers and administrators with a guided, learning path through the key features of Salesforce to help people get more value from Salesforce solutions more quickly. According to Salesforce, Trailhead earners have passed more than 1,000,000 challenges, earning more than 250,000 badges.

In addition, Salesforce’s AppExchange—one of the first and most successful app stores, which just celebrated its 10th birthday—offers more than 2800 applications that integrate with Salesforce). Many of these are SMB-oriented, and Salesforce continues to ramp up SMB partnerships and integrations, with vendors from MailChimp to Slack to Sage Live (link to blog) on board.

Perspective

There are many things I like about what Salesforce is doing in the SMB space. I think SalesforceIQ gives SMBs a much better bang for the buck than Salesforce Group Edition. Furthermore, the integration between Desk.com and SalesforceIQ gives SMBs a cost-effective way to improve their customers’ experience, and level the playing field against larger companies in today’s increasingly social, omnichannel world.

Salesforce’s ecosystem is also a huge plus for SMBs that are already Salesforce customers. The AppExchange makes it easier for SMBs to find apps that will work well with Salesforce, and reduce potential integration issues. Meanwhile, Trailhead is one of the most fun training programs I’ve seen in the business applications space.

But, Salesforce will need to do more if it really wants to become an SMB mainstay. First, of all, Salesforce needs to improve SMB segmentation and understanding. Sure, it gets those Silicon Valley startups, but it needs a deeper understanding of the broader SMB landscape and their diverse attitudes and requirements.

This leads to my next point, which is that the broader swath of SMBs still need a lot of business and conceptual education about how and why sales, marketing and customer service are changing, and what they need to do to succeed amidst these changes. Salesforce paved the way in educating SMBs about the big picture benefits of the cloud, it should have the same lofty goals in terms of educating them about the new customer journey.

In addition, Salesforce says that there is “a clear migration path” from SalesforceIQ to Sales Cloud. While it sounds like Salesforce can easily migrate data from SalesforceIQ to Sales Cloud, the applications are built on different code bases, and have different user interfaces. So its not intuitive as to how this works in real life in terms of user learning curves. As important, what is the strategy for all of the ISVs on the AppExchange that target SMBs? They’ve integrated with Sales Cloud offerings, not with SalesforceIQ. Since Salesforce is now pitching SalesforceIQ to SMBs, what do they need to do, and how will Salesforce help them? Another question is how does Lightning—and Thunder for that matter—fit into the SMB story?

That said, as evidenced at this event, Salesforce is listening, and is formulating plans to increase investments to educate and engage SMBs both locally and online. While engaging the broad SMB market is never easy, Salesforce has the right attitude, and the brand and budget to create a wider lens through which it can gain the pulse on SMBs it needs to capture SMB attention and market share.

SMB Group’s 2016 Top 10 SMB Technology Trends

Foggy Crystal Ball-128x128Here are SMB Group’s Top 10 SMB Technology Trends for 2016! A more detailed description of each follows below. (Note: SMB Group is the source for all research data quoted unless otherwise indicated.)

  1. SMBs That Make the Business-Technology Performance Connection Outpace Their Peers.
  2. The Battle for Self-Employed Workers Heats Up.
  3. SMBs Tune in to IoT Possibilities.
  4. Public Cloud Is a Done Deal, but Cloud Variants Remain Hazy for SMBs.
  5. Security Remains the Elephant in the SMB Room.
  6. Mobile Solutions Occupy a Bigger Part of SMB IT Real Estate.
  7. SMBs Rethink CRM.
  8. SMBs Move Up the Cloud Analytics Curve.
  9. SMBs Streamline Internal Processes to Focus on Business Growth.
  10. More Tech Vendors Use Big Data to Provide New Business Services to SMBs.

Detailed SMB Group Top 10 SMB Technology Trends for 2016:

  1. SMBs That Make the Business-Technology Performance Connection Outpace Their Peers. SMB success is increasingly tied to technology. SMBs that view technology as critical to improving business outcomes are outpacing their peers in terms of business growth. According to SMB Group’s 2015 SMB Routes to Market Study, 29% of SMBs view technology as helping them to significantly improve business outcomes. These “progressive” SMBs are 18% more likely to forecast revenue increases than their peers. Progressive SMBs spend 29% more on technology, are 55% more likely to have fully integrated primary business applications (financials, CRM, HR, etc.) and are 86% more likely to use analytics than their counterparts. By using technology to streamline workflows, slash time spent on repetitive data entry and inefficient processes, gain better insights into opportunities and threats, and create new business models, progressive SMBs are well positioned to tap into new customer requirements, improve customer engagement and experience, and enter new markets. As they move forward, they will continue to outpace their peers and reshape the SMB market.
  2. The Battle for Self-Employed Workers Heats Up. According to April 2015statistics from the U.S. Government Accountability Office (GAO), more than 40% of all U.S. workers are contingent, which includes the self-employed as well as temp workers, contractors, on-call workers and part-time employees. That number represents a 10% increase from the previous GAO survey in  The survey spans industries from construction to pet care, and from professional services to Uber and Lyft drivers. This trend shows no sign of abating, with the GAO predicting the percentage of self-employed workers to rise to 50% by 2020. Self-employed workers need tools to manage finances, build brands and grow their business—but they must do all this on a shoestring budget. SMB Group’s 2015 SMB Routes to Market Study shows that consequently, many of these workers rely on Excel spreadsheets: 40% of self-employed workers use Excel for accounting, and 85% use Excel or email (such as Outlook or Google) for sales and contact management. On average, median annual spending on technology for businesses with one employee is approximately $3,500, which includes client devices, productivity software, business software, Internet connectivity and mobile data service and device expenses. Vendors such as FreshBooks and Square have been pioneers in developing solutions specifically for self-employed workers. But more vendors, such as Intuit (with QuickBooks Self-Employed) and Sage (with Sage One), are following suit. Although the sheer market volume creates great potential, rapid scale will be required to attain and sustain profitability in this cash-constrained segment.
  3. SMBs Tune in to IoT Possibilities. The Internet has delivered its latest game changer: the Internet of things (IoT). As with the Internet innovations that preceded it, IoT presents tremendous potential for disruption—along with all of the opportunities and challenges that accompany this type of sea change. Yet IoT is still just a buzzword for most SMBs. When asked in SMB Group’s2015 SMB Routes to Market Study, “What are the top three technology areas that are most critical for your business to invest in over the next 12 months?,” IoT ranked at or near the bottom. Only 18% of small and 13% of medium business decision makers selected IoT as one of their top three priorities. But factors such as vendor education and early success stories will help SMBs better understand IoT use cases and opportunities, both to improve internal operational efficiencies and to create new product and services offerings. SMB Group research indicates that SMBs in retail, wholesale/distribution and discrete manufacturing (e.g., auto, electronic equipment) are likely to lead the SMB IoT charge. Regardless of industry, IoT solutions built to move critical, trigger-based data to the Internet (through smart gateway solutions and applications) and store less important data locally will be key to helping SMBs avoid information overload and achieve successful IoT outcomes.
  4. Public Cloud Is a Done Deal, but Cloud Variants Remain Hazy for SMBs. Cloud solutions are already part of the business fabric for most SMBs, with the adoption of cloud solutions surging across all solution areas, according to SMB Group’s 2015 SMB Routes to Market Study. In fact, the cloud is poised to overtake on-premises deployment in the next year in areas such as collaboration, file sharing and marketing automation. Cloud adoption is also growing in areas in which it has traditionally lagged: Almost one-third of SMBs planning to purchase accounting and ERP solutions say they plan to purchase a cloud offering. But for the most part, SMBs have been choosing public cloud options—despite several vendors’ vocal promotion of private and hybrid cloud alternatives. Although each variant has its pros and cons, most SMBs remain confused about what private and especially hybrid clouds are as well as when and why they should consider them. Most vendors define hybrid cloud as the integration of a public and private cloud; but because private clouds are still rarely utilized by SMBs, the hybrid cloud notion remains hazy for SMBs. Microsoft with Azure Stack for Windows Server, IBM with its Bluemix-powered “cloud everywhere” platform and Dell with Dell Cloud Manager are trying to make private and hybrid cloud options more accessible and manageable. But unless and until vendors offer more articulate, relevant and compelling alternatives, SMBs will continue to opt for the public cloud in the vast majority of cases.
  5. Security Remains the Elephant in the SMB Room. As SMBs rely more on technology to run their businesses, the requirements to secure and protect data and access become more critical and complex. SMB Group’s 2015 SMB Routes to Market Study shows that medium businesses rank security as their second most pressing technology challenge, while small businesses rank it as their number-one challenge. However, many SMBs feel overwhelmed, confused and completely inadequate to deal with the magnitude of the seemingly endless potential for digital security breaches that could wreck havoc on their businesses. All too often, they continue to take an outdated, ineffective, 1990s-era “whack-a-mole” approach to security, deploying point solutions to ward off the security threat du jour. However, vendors are delivering more holistic, end-to-end, risk- and rules-based solutions for SMBs. These solutions can enable them to close off the biggest vulnerabilities to their most critical corporate data, wherever it resides—whether endpoint devices, mobile apps, on-premises infrastructure and applications or the cloud. Although most SMBs will need help understanding this approach, once they do, they will be able to face and address the security elephant in a more effective way.
  6. Mobile Solutions Occupy a Bigger Part of SMB IT Real Estate. SMBs continue to turn to mobile solutions to help redefine business processes and pursue new opportunities. SMB Group’s2014 SMB Mobile Solutions Study indicates 59% of SMBs view mobile solutions and services as “critical” to their business. The effects of mobile adoption impact traditional IT in endless ways. For instance, 85% of SMBs see mobile apps as complementing traditional business apps; 70% believe that mobile apps will replace some of their current business applications; and 48% say their employees are doing significantly more work on mobile devices. As important, mobile solutions account for a growing share of SMB technology budgets, with median spending on mobile solutions as a percentage of total technology spending rising year-over-year. However, while they’ve been swept up in the mobile tsunami, many SMBs have yet to put mobile strategies and solutions in place to optimize their mobile investments. SMBs will need better guidance from vendors both to effectively manage and protect mobile assets and to better integrate them with traditional business applications and infrastructure.
  7. SMBs Rethink CRM. SMBs need an integrated, holistic view of their customers, but “enterprise” CRM has proved too complicated and costly for most. The good news is that vendors are crafting CRM solutions specifically designed and priced for SMBs. These solutions go beyond contact management to help SMBs improve the customer experience; compete in a social, omnichannel world; and access analytics to stay ahead of their customers’ expectations. Examples include Salesforce, which introduced Salesforce IQ as its new sales management entry point for SMBs and followed up with a free integration for SalesforceIQ withcom customer service. This combination provides sales and customer service reps with a complete view of customer interactions across sales and services. HubSpot launched Connect to integrate customer data from different applications, such as billing and payment data from FreshBooks and customer service records from Zendesk, into HubSpot, for a more complete customer view. Meanwhile, SAP rolled out SAP Anywhere & Everywhere to help SMB retailers and etailers manage sales, marketing, ecommerce and inventory activities in a more cohesive way. And Infusionsoft, which has focused on very small businesses from the start, is adding new capabilities to enable buyers to better personalize the Infusionsoft experience to their style and preferences. These vendors—and others—will help more SMBs realize that the time has come to modernize and integrate their CRM approach.
  8. SMBs Move Up the Cloud Analytics Curve. Vendors have been making big investments to build powerful yet cost-effective cloud-based analytics solutions. Designed for business users instead of data scientists, these solutions offer user-friendly interfaces, guided discovery, visualization tools and natural language capabilities to help users quickly get actionable insights from their data. For instance, IBM’s Watson Analytics minimizes the effort required to turn raw data into insight via visualizations. Users connect their data source to Watson and then query Watson about the data in plain English (or their native language). Watson then builds a dashboard or graphics so users can easily visualize the findings. It also offers a built-in predictive engine, which can, for instance, generate personalized offers based on customer preferences and purchasing histories. Another example is Tableau, which recently introduced Vizable, designed for a touch-based, mobile world. Vizable reads a spreadsheet or .csv file, determines the key categories and then displays an initial graphical view of the data that users can explore by pinching, swiping and dragging on the iPad. Vizable also offers a built-in animation engine to help users understand why results change as they manipulate the data. With clear benefits and easy access, SMBs are shifting from on-premises analytics to the cloud. This is particularly true in medium businesses, which cite analytics as the second most critical area to invest in over the next 12 months. Although most of these businesses currently use on-premises analytics solutions, among those planning to purchase or upgrade in this area, 48% plan to use cloud-based analytics solutions. This trend will strengthen in 2016, as more SMBs seek out analytics solutions that are easy to buy and use in order to stay ahead of the market and their competitors.
  9. SMBs Streamline Internal Processes to Focus on Business Growth. SMBs say that attracting new customers and growing the business are their top business goals, according to SMB Group’s 2015 SMB Routes to Market Study. Unfortunately, many SMBs waste so much time managing the daily internal grind of financial, human resources, procurement and other back-office processes that they don’t have time to focus on growth, opportunity and innovation. But SMBs in fast-growth industries such as software and biotech are role models for a more modern, automated and often cloud-based approach—one that enables them to spend less time on back-office processes and more time on decision making. In turn, early SMB adopters across the spectrum are taking note. They are replacing or foregoing outdated, disjointed back-office systems with next-generation solutions. These solutions enable them to automate drudgery and gain time-saving, visibility, collaboration and decision-making benefits that give them the flexibility to adapt to changing market requirements. As early adopters reap these advantages, pressure is mounting for SMBs that have resisted change. They will need to bite the bullet and update the way they run the business, or they will fall behind their more nimble peers.
  10. More Tech Vendors Use Big Data to Provide New Business Services to SMBs. Tech vendors are increasingly applying analytics to challenge traditional service providers in “non-IT” areas. For instance, Intuit recently launched a new financing alternative in partnership with OnDeck. The service uses small businesses’ QuickBooks accounting data to qualify applicants for lower-rate loans than those available from traditional lenders. Intuit also formed a partnership with Stride Health, which integrates Stride Health’s personalized health insurance, healthcare and compliance management within QuickBooks Self-Employed. Meanwhile, Intacct, which provides cloud ERP software, has partnered with Pacific Crest to provide SaaS businesses with real-time comparisons of their performance relative to their peers and pinpoint specific levers for improving their execution. And IBM continues to push Watson deeper into healthcare, with a planned $1 billionacquisition of medical imaging company Merge Healthcare. IBM’s intent is to apply image analytics to medical images taken by Merge, which are used in medical specialties such as radiology, cardiology and orthopedics. Big Blue also purchased the Weather Company’s digital assets (everything but the TV network). IBM will use the Weather Company’s forecasting data and technology to create services to help weather-reliant businesses to maximize profits. Because so many industries rely on weather data, the opportunities are endless. For instance, retailers need to know if they should stock up on groceries before a winter storm; farmers use weather data to maximize crop yields; and construction workers monitor the weather to determine the best times to pour concrete or operate a crane. As these types of services proliferate and become more powerful and convenient, they offer new ways for SMBs to grow and innovate.

If you are interested in learning more about licensing options for SMB Group’s 2016 Top 10 SMB Technology Trends, please contact Lisa Lincoln, Director of Client Services at lisa.lincoln70@smb-gr.com or 508-734-5658.

 

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