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SMBs: Underserved, but ready to be served by system integrators

How much of your system integration revenue comes from small- to mid-sized businesses? If it’s less than a third, you may be missing out on a lucrative, relatively underserved market. Let’s examine why.

First, recognize some key facts about SMBs. They are innovators. They are the wellspring of America’s patents. And they employ about half of the private workforce and account for most newly created jobs.

Moreover, SMBs are investing in technology, are heavily committed to the cloud as their avenue for business transformation, and recognize the value they can gain from system integrators.

How COVID-19 Impacts Small and Medium-sized Businesses

Years before the pandemic began, SMBs embraced cloud computing because it gives them a platform that’s scalable, flexible, economical, and easily managed. SMBs continue to rapidly adopt cloud technology, typically to host easily implemented Software-as-a-Service applications. In effect, the COVID-19 catastrophe has turned into a catalyst.

Like businesses of all sizes, SMBs were hurt by the COVID-19 crisis. Some have closed their doors. Others are barely surviving. But most have been adaptive and resilient.

COVID-19’s government-mandated lockdowns and operating restrictions pushed SMBs into using technology to adapt quickly to the economic disruptions. Cloud computing helped SMBs control costs and support a remote workforce. Many diverted large portions of their budgets into ramped-up expenditures on work-at-home solutions and touchless transaction technologies.

“Many of the trends, solutions and tools that have been utilized during the pandemic will continue to help small businesses increase efficiency and streamline productivity for years to come,” wrote Keara Dowd, a BizTech editor.

With the dark days of 2020 behind them, SMBs are now ready to get back on track. This year, SMBs are catching up on projects delayed by the pandemic. For 2021, most have IT budgets that are equal to or higher than their 2020 budgets. And a recent survey by Techaisle revealed that 45% of US SMBs are in the high-growth category, with IT budget increases ranging from 7.5% to 15%.

SMBs continue to embrace the cloud

To enable their digital transformations, SMBs are continuing to lead the big shift to cloud computing. More than 80% of SMBs are currently connected, or plan to connect, their on-premise environments to cloud services, reports Techaisle. A Forbes-commissioned survey had similar findings.

A high percentage of SMBs are using pay-as-you-go cloud services to get the same technical clout that bigger rivals enjoy, Mark Wiener noted in a February 2021 article in Commercial Integrator.

This creates a great opportunity for IT service professionals. System integrators, Wiener stated, “will find appealing new ways to join different components into a large system, creating value and products for your customers while reducing costs and responding more quickly to requests. This is the proverbial win-win.”

SMBs typically have dozens of applications, magnifying their needs for system integration. As a result, the door is open even wider for system integrators to win new customers in the SMB market.

Learn more about the SMB market

Clearly, SMBs are a market too big—and too underserved—to ignore. SMBs know they need your help, so we encourage you to explore the opportunities this market offers. Start by downloading Velosio’s new e-book, System Integrators: Don’t Miss Out on the SMB Market.

In addition to giving you more depth on the insights you’ve read in this post, the e-book will answer two key questions:

  • What competition can you expect?
  • How can you serve SMBs profitably?

The e-book is fast-paced, so read it today.


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