Grazed from The Guardian. Author: Dr. Nino Vidovic.
SMBs require both software-based and traditional hardware-based services, such as computing, connectivity, security and voice, provided via a plethora of in-house, networked hardware. But, as desktop functions transition to powerful mobile devices, and connectivity becomes ubiquitous, in-house boxes are nearing obsolescence. Their utility has diminished in a cloud-enabled world, as they contribute to office cost, complexity and clutter; there is now an emerging alternative.
Opportunity is knocking
There is enormous opportunity in delivering IT services to the small and medium business/enterprise (up to 500 employees) market. Huawei has estimated there to be 150 million small and medium businesses (SMBs) in the world, with their total IT spending easily exceeding USD500 billion in 2011. Exploiting this is difficult because the SMB environment is rapidly churning. The SMB market is the ultimate trial & error environment for business models and technology vendors. Many SMBs are replaced by new ones within three years. However, SMBs have been largely ignored by IT vendors because there is little a multimillion dollar business and a ten-person startup have in common. Existing IT technology is far too complex and costly for most SMBs, both in terms of staff and equipment. Only 10 million SMBs use IT in any meaningful way; a roughly 8% penetration rate…