SMBs Welcome Smart IT Solutions

Posted by Romeo Elias on Tue, Mar 19, 2013 @ 02:23 PM

According to a recent Gartner report the SMB market keeps expanding resulting in new opportunities for innovative IT solutions.  “SMB will spend approximately $920 billion worldwide on IT in 2013. Out of those 920 billion…The SMB market represents 44% of the total IT spend worldwide”, Gartner reports. This comes as no surprise since SMBs have become a big part of our worldwide market. According to statistics there are 6 Million SMBs in the U.S. and a total of 65-70 Million SMBs worldwide.  

SMBs find themselves continuously competing against larger businesses and as a result they need to be innovative on how they handle their IT needs to keep up with larger competitors. As a result, popular IT solutions have emerged that have adapted their technology to develop comprehensive solutions for business analysts and SMB business owners, reducing the need for programming,  years of experience, extensive training as well as long and costly implementations.  

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According to Gartner, IT solutions for SMBs should:

  1. Be affordable with outstanding support
  2. Be easy to install, configure and manage
  3. Demonstrate fast ROI (Return on Investment)
  4. Provide flexibility in deployment options
  5. Provide entry level functionality that can be easily scalable
  6. Not require too long to achieve benefits
  7. Be delivered by providers that are “easy to do business with”

Gartner predicts that by 2015, the SMB market is projected to cross the trillion dollar mark in IT spending. While this change takes place the flexibility of IT services on the cloud for SMBs will also become more popular.  

“By 2015, 70% of midmarket businesses with 100-999 employees and 40% of small
businesses with 20-99 employees will acquire paid public cloud services.” This change has already begun. In fact, Gartner estimates that in 2013, the percentage of SMBs moving their system to the cloud will jump by 20% over 2012.  
Additionally, a new need is emerging with the popularity of tablet computing among SMBs: mobile connectivity from any location. Mobile connectivity to business applications will keep growing among SMBs. In fact Gartner projects that by 2015 the growth of tablet computing among SMBs will outpace that of larger enterprises.    

 

 

 



Tags: BPM, Mid Market, Business Process Management, Workflow, BPM Suite, Hosted Workflow, SaaS, Cloud, SMB, Workflow and Business Process Management, Gartner conference, SMB market, SMBs

Gartner BPM Conference 2012

Posted by Romeo Elias on Tue, May 01, 2012 @ 05:11 PM

I just returned from the annual Gartner conference in Baltimore, MD this year. Here are a number of take aways from the event:

  1. The turn out was good.  I noticed the place was buzzing with companies who were interested in BPMS or learning about BPM best practices.  It's a good sign that the economy is healthy.
  2. There seemed to be less vendors this year than usual and that may be due to the fact that more consolidation has occurred in this field at the enterprise solutions level. 
  3. The impression I got was that BPM is now fairly mainstream in the enterprise market, with established IT Services and Content Management companies dominating after their acquisitions.
  4. The message from Gartner was still that BPM was for the enterprise and a major undertaking that requires companies to transform themselves and invest considerable Dollars if they choose to embark in a BPM initiative.

We don't agree with Gartner's position on this.  Our target market and customers in the Mid Market and SMB space have been benefiting from our BPM solution for years at a fraction of the cost and resource investment the traditional enteprise players require. 

I did also observe some interesting facts and trends after speaking to a number of vendors and analysts:

  1. The opportunity for BPM is now moving downstream in the marketplace to Mid Market and SMB companies as the enterprise space has been saturated with the big IT services companies.  Most of the established players however can't move downstreams given their business models and technology stacks.
  2. There have been a number of proven metrics and ROI measures from successful BPMS implementations: On average, companies are seeing double digit ROI, with more than 50% of projects completed within 4 months. In addition, companies are increasing customer retention and gaining competitive advantages through BPMS implementations.
  3. As I suspected, Social BPM is non-existent yet and is in its infancy. There is no real world application or what benefits it can provide in practice.  It is primarily marketing hype at this point, however will likely change in the next couple of years.

Overall it was a good conference and it validated further our target and positioning in the Mid Market.  It will be interesting to see the development of this market in the next few years.  

Tags: BPM, Mid Market, Business Process Management, BPM Suite, Enterprise, BPMS, SMB, Social BPM, ROI, Gartner conference