Techaisle Analyst Insights

Pandemic has changed how businesses operate, employees work, customers purchase and goods/services get delivered. This has also changed how small and midmarket firms are evaluating their core, cloud and edge technology needs to address their accelerated digital transformation objectives of cost efficiencies, operational excellence, innovation, business growth, organizational empowerment and customer intimacy. Clearly, core infrastructure has evolved to meet future digital transformation demands, but the question is how are small businesses and midmarket firms planning to adopt forward-facing solutions, like Artificial Intelligence, 5G, AR/VR, IoT, analytics and several others. There is a general sense within the SMBs that these advanced solutions will increase insight into and control over key aspects of their business operations and deliver benefits in different ways and to different ends.

Remaining true to the core belief of tracking the future of SMBs and channel partners, Techaisle studied global SMBs to determine future, planned and likely adoption patterns of several technology areas. The study of SMB and Midmarket digital transformation trends identified top 15 technology categories where the adoption growth rates will likely be highest in the next six months to a year. There are some surprises, for example, chatbots (for customer responsiveness), 5G (for enhanced mobility), open source (for cloud management, modernization and lower TCO), AI (for customer experience, security, operations) and several expected, for example, SD-WAN, HCI, WVD/VDI/DaaS and UCaaS.

They are here - Techaisle's annual SMB and Midmarket Top 10 IT Priorities, IT Challenges and Business Issues infographics. This is the 7th year of Techaisle tracking at a WW level and is much sought after by IT vendors, channels and media. There is an ongoing trend – in both the buy-side and supplier communities – towards positioning IT initiatives and expenditures in a business context.

To help readers connect positioning with core market drivers, Techaisle research provides insight into the most pressing business issues, IT priorities and IT challenges faced by small (1-99 employees) and midmarket (100-999 employees) businesses in 2018.

For 2018, Techaisle investigated 21 different technology areas, each with several sub-technology categories, 24 different IT challenges and 24 different business issues. At the request of our clients, this year, not only are we releasing data & infographics (shown below) as usual for SMBs (1-999 employee segment), Midmarket (100-999 employee segment) but also for Small businesses (1-99 employee segment).

In 2018, the new and upcoming IT Priorities within SMBs are Virtual Reality (VR)/Augmented Reality (AR) and Hyperconverged infrastructure (HCI). Within midmarket firms, Artificial Intelligence (AI) appears for the first time for 2018. Workplace transformation is one of the new top IT challenges for SMBs – number 1 on the list for midmarket firms and overall at number six across all SMBs. This obviously points to a need for unified workspace experience. In addition, Cloud orchestration and integration are among the top five key IT challenges for both SMBs and midmarket firms.

Amazon Web Services (AWS) has been a leader in cloud computing since 2006. Its success depends on a strong network of channel partners. These partners are brought together through the AWS Partner Network (APN), which fosters collaboration and enables the creation of solutions and services for customers. The APN has expanded over time to include various programs. It's worth noting that the APN has over 130,000 partners from 150 countries, with nearly 70% headquartered outside the US. Although large enterprises have greatly benefited from these programs, AWS has recognized small and mid-sized businesses (SMBs) play a significant role in the global economy. As a result, AWS has recently introduced the SMB Competency Program, a strategic initiative designed to empower partners serving SMB customers. After extensive discussions with partners and an in-depth understanding of SMB requirements, AWS unveiled its robust program in January 2024.

AWS SMB Competency Partners provide solutions and services tailored to SMBs' requirements. This covers platform solutions such as migration and modernization, security, data storage, disaster recovery, artificial intelligence/machine learning, and SaaS solutions, including accounting, resource management, customer service, and relationship management. AWS SMB Competency Partners serve as a single source for SMBs who want to use the AWS cloud to solve their specific business problems.

The inaugural iteration of the program comprises 30 partners, spanning services and software with expertise in managed services, security, AI, modernization, migration, disaster recovery, and cloud business applications. These categories have been thoughtfully chosen to align with SMB priorities.

I have personally spoken with each of these 30 partners, and they unanimously endorse and express enthusiasm for the AWS SMB Competency program.

According to Techaisle’s 2024 research data on SMB and Midmarket priorities and challenges, 55% of customers view partner competencies as “absolutely essential” when assessing partner capabilities. In contrast, 36% of customers prioritize certifications in their evaluation. This emphasizes competencies' critical role in demonstrating a partner’s expertise and ability to meet customer needs.

Focused on growth and committed to new solutions that expand business horizons – the SMB market is on the brink of a multi-year growth trajectory.

Generative Artificial Intelligence (GenAI) is on the brink of a massive expansion. IBM is seizing this opportunity and striving to cater to the escalating demand for this technology. The company has launched watsonx, an AI and data platform specifically designed for businesses, providing GenAI, data management, and AI model governance capabilities.

IBM’s strategic efforts go beyond mere product innovation. They include collaborative ventures aimed at stimulating growth across the industry. The company’s new partner program, IBM Partner Plus, is designed to establish a diverse network of resellers. This initiative is set to ignite growth and spur innovation in various sectors, highlighting IBM’s commitment to making AI accessible and enabling businesses around the globe.

IBM's Journey with watsonx and Responsible AI Governance

Partnerships and acquisitions frequently serve as turning points, transforming entire industries. This is exemplified by IBM’s 2019 acquisition of Red Hat, a prominent provider of open-source software solutions. This strategic move has fortified IBM’s standing in the open hybrid cloud solutions market while simultaneously offering both companies the chance to provide their clients with improved AI capabilities. IBM watsonx is an AI and data platform with a set of AI assistants designed to help organizations scale and accelerate the impact of AI with trusted data across the business. The platform offers flexibility, enabling organizations to start with one component or application and include additional ones as needs grow. It consists of a studio for foundation models, a data store, and a governance toolkit.