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    SMB. CORE MIDMARKET. UPPER MIDMARKET. ECOSYSTEM
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    SMB & Midmarket Predictions
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    SMB Path to Digitalization
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Techaisle Blog

Insightful research, flexible data, and deep analysis by a global SMB IT Market Research and Industry Analyst organization dedicated to tracking the Future of SMBs and Channels.

Worldwide Midmarket IT spending is forecast to reach USD993 billion in 2022

Techaisle's latest survey research forecasts worldwide midmarket (100-5000 employees) IT spend (excluding telecom services) will reach US$993 billion in 2022. Cloud-managed services are an integral component of IT services and are seeing accelerated spending. Overall IT services will grow by 7.2% from 2021. Midmarket firms are increasing IT spending for cloud optimization, application modernization and migration, and IT modernization. In addition, there is an increased demand for container deployment, microservices, open-source, API management, hybrid cloud workload management, and security and compliance management.

Increasing profitability, driving innovation, and improving the supply chain are the top three business challenges being addressed by midmarket firms. Within 85% of firms, IT is seen as a source of innovation, and 79% expect IT to deliver faster business outcomes. Over 20% of midmarket firms have internal teams dedicated to “finding ‘what’s next?’ technology-driven innovations,” and 40% “have IT budgets specifically for technology-driven innovation;” 11% report that they have embedded IT professionals within business units, charged with finding innovative technology solutions to achieve business objectives.

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SMB SD-WAN adoption unlocks business potential for MSPs

SMBs are wrestling with many challenges, including unreliable network connections, cybersecurity and privacy concerns, productivity issues, and support. In addition, SMBs are mindful of the need for help composing, deploying, and managing digital business infrastructure. The recent surge in remote work has also significantly increased the requirement for effective networks and network management and the complexity of deploying a holistic digital business infrastructure.

SMB networks and network management resources are not as sophisticated as those in enterprise environments. As a result, SMBs will encounter high incidences of network issues such as delivering robust support for videoconferencing and jittering and extending security across distributed applications, devices, and networks.

Networking, a necessary foundation for digital business infrastructure, is a particularly onerous IT management category. Techaisle survey data shows that managing network hardware or network support consumes 47% of SMB IT staff time.

In response to explosive increases in demand for deployment and support of digital business platforms, resource-constrained SMBs are looking for new solutions. They are looking for MSPs as external service providers – and they are looking at SD-WAN. Techaisle data shows that SD-WAN adoption among SMBs will likely grow by 160% within one year. The adoption growth rate is second only to 5G. There is a firm belief within the SMB community that SD-WAN is a critical technology for enabling digital transformation within the SMB segment.

This data indicates a significant and growing opportunity for MSPs to help SMBs deploy digital business infrastructure and manage the associated networking challenges. So what do MSPs need to do to capture this new business?

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SD-WAN adoption likely to increase by 145 percent within US SMB and Midmarket firms

SMBs are increasingly becoming aware of SD-WAN and its advantages. SD-WAN adoption is likely to grow by 145% within the US SMB market within a year. Techaisle survey data shows that today, only 10% of SMBs are currently using SD-WAN solutions, but 25% are planning adoption. Networks are a clear pain point for SMBs as they embark on digital transformation to align with the emerging requirements of the post-pandemic world. Networks consume scarce IT resources, and they are the critical link providing the connectivity that unlocks all other digital opportunities and potential. Techaisle’s survey data shows that 47% of SMB IT time is allocated to networking-related issues. Nearly 90% of SMBs believe that proactive, consistent network management to deliver ideal performance is important.

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Mitel is well-positioned to support on-prem, private, and public cloud unified communications solutions

What do Hyatt, Hilton, and Marriott all have in common? Besides being among the world’s largest hotel chains, all use Mitel’s MiVoice Business solution. Hospitality is one of the many verticals that Mitel excels in. Manufacturing, retail, healthcare, media, and entertainment are some of the other verticals where Mitel has been showing considerable growth. Businesses require a broad spectrum of adaptive and agile communications solutions, and suppliers should be able to support a wide range of needs. Mitel is well-positioned to support the needs of firms of all sizes. For example, Halepuna Waikiki, an acclaimed Hawaiian boutique hotel, is an excellent example of how Mitel solutions can be tailored for global and local businesses alike.

Mitel is on a modernization mission

A recent global Techaisle Communications Adoption Trends research study (N=1361), conducted in the US, UK, France, Germany, and Australia, shows that 84% of firms say that modern communications solution is vital for business success. 73% agree that modern communication solutions help their business grow by contributing to improved decision making, driving innovation, and enabling better customer experience. As a result, 64% consider the modernization of their communications infrastructure a priority, and 47% of firms are using or implementing on-prem UCaaS solutions on multiple platforms.

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