Product Type: Market Research Report
Published by: Business Insights
Published: June 2006
Product Code: R162-716Description The SMB market is huge and, until recently, has not invested a great deal in IT; nor has it been on the receiving end of much vendor attention, particularly from those providers targeting large enterprises and multinationals. To give an idea of the scale of the sector, there are 19 million SMBs in the EU and in most of the member states they make up more than 99% of enterprises. SMBs generate a substantial share of European GDP and are a key source of new jobs and business ideas. IT offers significant benefits to SMBs - as it does other, larger organisations - but it has to be the right fit for their size and structure. ‘The SMB Market Opportunity’ report examines why the SMB sector is currently the focus of attention for vendors that have traditionally targeted the enterprise sector and what SMBs are looking for from an IT solution. We explore the SMB market opportunity for the ERP, SCM, CRM, security and contact centers technologies and services. In addition, the report profiles the main vendors targeting the SMB IT opportunity and their SMB strategy going forward. The SMB Market Opportunity report is of interest to any IT vendor or services provider wanting to target its offering to the SMB sector. It will be of equal interest to SMB- and mid-market-focused vendors as it will to large enterprise vendors eager to snatch some market share in what is still a highly fragmented market. The report will be of interest to providers in the enterprise application, IT security and contact centers markets. Although we do not examine the SMB market opportunity for hardware, we profile the efforts of hardware vendors in the final chapter as they target this sector. Given the importance of partnerships and the channel to selling solutions to SMBs, the report will also be of interest to VARS, systems integrators, resellers and third-party service providers.
Key questions answered in this report:
- What technologies are SMBs buying?
- How much are SMBs spending on ERP/CRM/SCM and other technologies?
- What is driving IT investment in the SMB market?
- What dynamics exist in the SMB market?
- What traits do SMBs look for in a vendor?
- Who are the vendors leading the SMB market?
- How can I improve my go-to-market strategy and sales approach to appeal to SMBs?
- How can I develop my channel and partnership strategy?
This new report will provide you with:
- Dynamics and factors influencing the SMB market to enable you to assess your company’s position in the market.
- Drivers and inhibitors to purchasing amongst SMBs, allowing you to strengthen your competitive position.
- Spending patterns up until 2010 for key IT markets, helping you devise effective market strategies.
- Profiles of the leading vendors targeting the SMB market, enabling you to benchmark yourself against the most profitable companies.
- Forecasts for IT investment in key technology areas, such as on demand CRM, allowing you to identify lucrative opportunities in the SMB market.
- Explanations of emerging market segments, such as unified threat management, assisting you in formulating effective targeting strategies specifically for the SMB market.
Table of Contents - Executive Summary
- Market context
- Targeting your message
- The ERP SMB market opportunity
- The CRM SMB market opportunity
- The security SMB market opportunity
- The contact center SMB market opportunity
- Vendors to watch
- Chapter 1 Introduction
- What is this report about?
- Who is the target reader?
- Defining the SMB market
- Chapter 2 Market context
- Summary
- Introduction
- The dynamics of the SMB space
- Development of the SMB IT market
- Initiatives to increase ICT uptake among SMBs
- On demand
- Open source
- Vertical opportunities amongst European SMBs
- Focus on financial services, public sector and manufacturing SMBs
- Telecoms is the single biggest area of SMB ICT spend
- The UK, Germany and France are the biggest geographic targets
- Chapter 3 Targeting your message
- Summary
- Introduction
- SMB drivers behind IT spending
- Simplicity and ease of use
- Value for money and a fast and visible return on investment
- Bundled solutions
- Reliability and flexibility
- Broadband access technologies
- Inhibitors to conducting business online
- Investment concerns still hinder IT uptake
- Lack of IT staffing
- Localization means cultural and language restrictions
- SMBs are notoriously cautious
- Security is becoming a bigger issue for small firms
- Strategies for success
- ROI and TCO
- Understanding small businesses
- How to target small businesses
- Understanding medium businesses
- How to target medium-sized businesses
- Taking a channel approach
- Reconsider a direct approach
- Web-based support
- Choosing the right media for messaging
- Effective incentivization of the channel is important
- Examine the development of service-based models
- Chapter 4 The ERP SMB market opportunity
- Summary
- Introduction
- Market outlook
- The SMB market opportunity for ERP
- Hosted and on demand ERP
- Enterprise application services
- Making enterprise application services relevant to SMBs
- Key success factors
- Hosted SMB enterprise application services
- Conclusions
- SCM market opportunity for SMBs
- Chapter 5 The CRM SMB market opportunity
- Summary
- Introduction
- Market outlook
- Global forecast
- 1 - 9 headcount
- 10 - 49 headcount
- 50 - 250 headcount
- 251 - 1000 headcount
- Market drivers
- CRM evolution
- Functionality and cost in the SMB space
- One-size-fits-all
- Sales and channels
- Hosted and onsite CRM solutions
- Vendor recommendations
- ISVs and VARs develop customized applications
- Vendor competition
- Traditional enterprise application vendors
- Small and mid-market vendors
- Microsoft enters the battle
- Chapter 6 The security SMB market opportunity
- Summary
- Introduction
- Targeting the security message for SMBs
- Firewall and VPN technologies
- Multi-function security appliances / UTM
- Vendor actions
- Authentication
- Email security
- Chapter 7 The contact center SMB market opportunity
- Summary
- Introduction
- The SMB market opportunity
- Market drivers
- Technologies in the contact center
- Fulfilling SMBs’ requirements
- Hosted solutions
- Market growth
- Attractions of a hosted solution
- Market drivers
- Concerns about hosted solutions
- Security
- Cost
- Existing arrangements
- Where does IP feature?
- Chapter 8 Vendors to watch
- Summary
- Introduction
- Traditional enterprise vendors
- Oracle
- Channel and partner strategy
- Acquisitions
- SAP
- Sector-specific vendors
- ERP
- International Business Systems (IBS)
- SSA Global Technologies
- IFS
- CRM
- Salesforce.com
- Talisma
- Contact centers
- Cincom
- Contactual
- Echopass
- Five9
- UCN
- Hardware suppliers
- Cisco Systems
- Hewlett-Packard (HP)
- IBM
- EMC
- SMB- and mid-market-focused vendors
- Microsoft
- ERP
- Project Green
- CRM
- Strategy for success
- Lawson Software
- Sage
- Intuit
- QAD
- Index
- List of Figures
- Figure 2.1: Global CRM, ERP and SCM SMB application software opportunity by company size, 2004-2010
- Figure 2.2: Segmenting the SMB sector
- Figure 2.3: SMB IT spend split by verticals in Benelux ($m), 2004
- Figure 2.4: SMB IT spend split by verticals in France ($m), 2004
- Figure 2.5: SMB IT spend split by verticals in Germany ($m), 2004
- Figure 2.6: SMB IT spend split by verticals in Italy ($m), 2004
- Figure 2.7: SMB IT spend split by verticals in Scandinavia ($m), 2004
- Figure 2.8: SMB IT spend split by verticals in Spain ($m), 2004
- Figure 2.9: SMB IT spend split by verticals in UK ($m), 2004
- Figure 4.10: Enterprise application service investment by sizeband, 2004 - 2008
- Figure 5.11: Global SMB CRM application revenues and as a percentage of overall global CRM application revenues, 2003-2008
- Figure 5.12: SMB CRM competitive landscape
- Figure 7.13: Evolution and size-bands of US hosted contact center services
- Figure 7.14: How would you rather pay for a hosted contact center service?
- Figure 8.15: Project Green combines all four ERP products into one
- List of Tables
- Table 4.1: Global ERP investment by company sizeband (%), 2003-2008
- Table 4.2: On demand ERP market by sizeband, 2004 - 2009
- Table 4.3: Global SCM investment by company sizeband (%), 2003-2008
- Table 5.4: On demand CRM market by sizeband, 2004 - 2009
- Table 7.5: US contact centers by size-band
- Table 7.6: US small contact center technology spend
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