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    2024 Top 10 SMB Business Issues, IT Priorities, IT Challenges
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    SMB & Midmarket Predictions
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    Channel Partner Predictions
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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.

Top 10 SMB and Midmarket business issues, IT priorities and challenges for 2022

They are here - Techaisle's annual SMB and Midmarket Top 10 IT Priorities, IT Challenges, and Business Issues infographics, 12th year of Techaisle tracking at a WW level, and is sought after by IT vendors, channel partners, and media. Techaisle surveyed a total of 5850 SMBs, quota sampled to ensure adequate coverage of four small business (1-9, 10-19, 20-49, and 50-99 employees), three midmarket (100-249, 250-499, and 500-999 employees) and two upper midmarket (1000-2499, 2500-4999) segments. As a result, the data represents a robust and reliable sampling of the market segment for IT products and services.

Compared to previous years, for 2022, Techaisle expanded the lists of the technology areas, business, and IT challenges studied. In addition, this year, we have also added a fourth column in the infographic – Highest Planned Adoption.

2022 top10 smb it priorities business issues techaisle infographic


Please scroll down/read more to view and download the SMB, core Midmarket, and Upper Midmarket infographics.

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Top SMB and Midmarket Predictions for 2022

prediction edit 2

In all sectors, the last two years were tough – and as a result, 2022 is challenging from a market planning perspective. As we enter 2022, IT product and service suppliers are looking to create a context for understanding the range of outcomes that the new year may bring. Techaisle is launching its "2022 in Focus" research series to support that effort, which illuminates issues and requirements in the vast SMB and midmarket segments. To begin with, here are our top 10 (and additional 3) predictions for 2022. After surveying thousands of SMBs and midmarket firms, having hundreds of depth calls, we identified over thirty trends. After that, we systematically prioritized ten predictions for your consumption.

We look forward to working with you in the year(s) to develop fact-based perspectives on the issues that shape the success of the IT industry.

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Techaisle data shows 41 percent of global SMBs unsure about the next decade

It was once thought that the cloud would reduce the technology deficit SMBs face relative to larger firms – but it is difficult to say that this has proved to be the case. Indeed, the cloud has lowered the barriers to adopting new systems, giving SMBs access to applications and infrastructure resources that would have been well beyond their means five years ago. However, Techaisle’s SMB and Midmarket Cloud adoption trends research data show that cloud, and hybrid IT, has posed other challenges: difficulties in integrating systems with each other and with business processes, and in integrating data across applications (ensuring that data created by one application is input automatically into others); difficulty in securing systems that are based in multiple locations and managed by various organizations, each with their own set of operational rules; difficulty in applying appropriate levels of security and governance to an ever-expanding pool of data that moves at accelerating pace through an ever-more-complex constellation of systems, users and locations. Large organizations have IT teams dedicated to addressing specific issues within this shifting and complex set of requirements. SMBs rely on limited internal resources (often, small groups of generalists), supplemented by fractional headcount support from third-party channel members, to keep pace with the change that results from the constant advance of cloud and hybrid.

Despite these challenges, though, evidence suggests enormous scope for cloud growth in the global SMB segment. Data indicates an apparent leader/laggard dichotomy between midmarket and small businesses concerning IT-enabled innovation. 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 charged with finding innovations into business units. Small businesses are, on average, about half as likely to have taken these steps; instead, nearly half of firms with 1-99 employees state that their organizations do not expect IT to drive innovation actively.” Making the assumptions that a) midmarket firms will benefit from the express linkage of IT and innovation, and b) that the gap between large enterprises and midmarket firms is likely as significant as the delta between midmarket and small business. Additionally, large enterprises will, over time, capture IT-enabled business innovation benefits even more rapidly than midmarket competitors. Data illustrates the foundations of a cascade, where IT-enabled innovation drives business success and further cloud investments in larger firms, defining success patterns that small organizations then adopt.

The findings also expose the uncertainty that SMBs face as they structure their IT/business strategies. The most significant proportion of SMBs – 42% of small businesses and 32% of midmarket firms – state that they are unsure of what the next 10-15 years will look like for their industry. Other SMBs worry about their ability to cope with the pace of change: an average of about 25% of SMBs report that they “are struggling to keep up with the pace of change,” and nearly 20% state that they “do not know if they will be able to complete over the next decade.” Against this backdrop, a cadre of forward-looking organizations – 15% of small businesses, roughly a quarter of midmarket firms – “are battling barriers to become a digital business by 2030.” The successes that these firms realize over the next several years will increase their appetite for further cloud investments and encourage their peers to commit additional resources to cloud-based business initiatives. Techaisle expects that if and as these digital leaders realize tangible benefits from cloud and hybrid, the cloud will become an essential element of SMB business operations. As a result, SMBs will become a significant force in the cloud market. Moreover, suppliers to the SMB market and the SMBs themselves can align to bring about this positive change. Techaisle believes that mutual benefit will drive commitment and innovation on both the supply and demand side of the cloud equation.

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Evolve Small – a differentiated small business campaign from Lenovo focuses on business mentoring and community outreach

SMBs are an excellent indicator to measure the economy's pulse in any country as they constitute over 90 percent of global businesses. They intricately link to large companies, government departments, and educational institutions as both suppliers and customers. In addition, a large percentage of consumers rely on SMBs for products and services that they consume within their households. Technology plays an integral part in the daily operations of SMBs across all departmental functions, including sales, marketing, operations, finance, and customer support.

Over the last three decades, the global SMB (1-999 employee size) market has been the growth engine for the IT industry at large. The path to business growth, strategy to deal with the competitive landscape, route to profitability were predictable and linear. And the way to adopting technology was also predictable and linear. The business pressures existed, but they were few and came on slowly. But it is not so anymore. Today, business pressures are increasing, coming from all directions - cash flow constraints, access to capital, competitive landscape, need for innovation, digital transformation, erratic revenue, uncertainties, the pace of technology change, and many more. A Techaisle survey found that a typical business leader deals with an average of five business pressures daily.

What is more telling is that 52 percent of SMBs deal with more than five pressures daily. These would be enough to put the brakes on any regular business operation. COVID did just that. Small businesses are struggling with revenue loss, attracting and retaining workforce, and lacking access to capital. As a result, technology has become even more important than two years ago. To manage costs, drive growth and enable resiliency, Techaisle data shows that 41 percent of small businesses have accelerated their digital transformation initiatives. However, for 55percent of small businesses IT budget is not sufficient to meet their needs. In addition, 63 percent of small businesses are actively looking for external guidance on cost-effective technology solutions.

Launched in July 2021, Lenovo's "Evolve Small" is a purpose-driven campaign centered on lending small businesses a helping hand. Founded on the principles of aid, mentorship, and community, the "hug and a hand" approach essentially focuses on three primary vital areas:

1. Financial assistance
2. Business mentoring and consulting
3. Rallying local communities to support their small businesses

The chief architects of the "Evolve Small" campaign are John Bischof (Executive Director, SMB Sales) and SMB Segment Marketing Managers, Megan Wine & Michelle Wiese.

As part of the program, Lenovo has committed US$1 million in grant funding to support BIPOC-owned (Black, Indigenous, and People of Color) small businesses. To facilitate and administer the grants, Lenovo has partnered with LISC, a non-profit organization in the US and a non-profit organization in Toronto, Canada. What is unique about the grants (average of US$10,000 per small business) is that they come with business development support. Techaisle believes that business development mentoring and community outreach is essential differentiation. Techaisle data shows that small businesses prioritizing growth are more likely to thrive in today's unpredictable economy than those focusing primarily on cost reduction or other 'business as usual' objectives. Business growth is more than simply increasing the top line in the digital world – though, of course, expanding the top line is a crucial measure of success. But growth also includes the ability to reach into new markets, identify and capitalize on adjacencies, and identify and integrate with suppliers who can extend the relevance of the small business in new ways. There is also follow-up, built into the campaign, where business development organizations that partner with the non-profit, LISC, help small businesses identify the best ways to use the funds (e.g., prioritize paying off some rent or paying employees) which new technologies they need.

lenovo 321 coffee

The campaign has been rolled out across seven geographically diverse cities, including Raleigh, Chicago, Austin, Minneapolis, Phoenix, Seattle in the USA, and Toronto, Canada.

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