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Slide 1: SMB Group Introduction Laurie McCabe Sanjeev Aggarwal 8/23/2010 SMB Group Confidential 1
Slide 2: Agenda • • • • SMB Group Overview Our SMB Market and Technology Focus Areas SMB Group Approach and Services Our Team 8/23/2010 SMB Group Confidential 2
Slide 3: About SMB Group • SMB Group is a industry research, analysis and consulting firm that focuses on technology adoption and trends in the small and medium business (SMB) market. • We help our clients to successfully: o Identify market trends and opportunities. o Understand and segment the SMB market, and the technology solution adoption drivers and inhibitors. o Evaluate and act upon competitive threats and disruptive trends. o Develop more compelling messaging. o Position solutions for growth and competitive advantage. o Identify emerging market trends, technologies, solutions and their impact on the SMB market and ecosystem. o Develop SMB market segmentation models 8/23/2010 SMB Group Confidential 3
Slide 4: Why SMB Group? Recognized SMB thought leadership • Combined 15+ years of focus exclusively on this segment as SMB segment analysts • Proven track of working with leading companies that are market leaders in the SMB market • Regular interactions with the SMB community • Key SMB market segment influencers Focus on client objectives and results • Tailored to your specific requirements • Designed for actionable results • Helping you achieve strategic and/or tactical goals • Personalized service from SMB focused senior analysts • Flexible to meet your budget and timing needs • Experience as SMB business owners 8/23/2010 SMB Group Confidential 4
Slide 5: Why Do We Focus on the SMB Market and What Do We Cover? Why we focus on SMB segment: • Huge technology solutions market opportunity o $450 B (global) and $180 B (U.S.) What we cover: • Technology solutions that most directly help SMBs run, manage and grow their businesses: o o o o o Business applications Collaboration and social media solutions Unified Communications, VoIP & Conferencing solutions Web presence and digital marketing solutions Solution delivery model, including cloud computing, virtualization and appliance Managed and infrastructure services Influencers, channels and routes to market • • The SMB market is much more diverse and fluid than the large enterprise market Effective solution development, marketing and sales requires deep understanding and consideration of the factors that drive or inhibit technology solution adoption o o o o o o Demographics Behavioral patterns Attitudinal predictors Business and technology decision makers Business and technology requirements and constraints Key influencers, advisors and channels o o 8/23/2010 SMB Group Confidential 5
Slide 6: SMB Group Website Bringing in Discussions with SMBs, Solutions Providers and VARs 8/23/2010 SMB Group Confidential 6
Slide 7: The SMB Market Highly fragmented and very diverse U.S.A. 16.5M Firms (72%) 21 M Employees (16%) 8% of Total IT Spend IT spend gr. 6%-7% 6.3M Firms (27.6%) 55 M Employees (41%) 27% of Total IT Spend IT spend gr. 7%-8% World Wide SoHo Businesses (1-4 Empl.) No Commercial Location Small Businesses (1-99 Empl.) Commercial Location Medium Businesses (100-499 Empl.) Mid-Market Businesses (500-2,500) Empl.) Enterprise Businesses (2,500+ Empl.) 137 M Firms (68%) 250 M Employees (18%) 10% of Total IT Spend IT spend gr. 7%-9% 65M Firms (32%) 700 M Employees (52%) 31% of Total IT Spend IT spend gr. 8%-10% 99,900 Firms (0.4%) 25 M Employees (20%) 19% of Total IT Spend IT spend gr. 6%-7% 705,000 Firms (0.3%) 225 M Employees (17%) 21% of Total IT Spend IT spend gr. 7%-9% 9,000 Firms (0.04%) 33 M Employees (23%) 46% of Total IT Spend IT spend gr. 3%-4% 52,000 Firms (0.03%) 200 M Employees (13%) 38% of Total IT Spend IT spend gr. 3%-4% Source: SMB Group estimates and U.S. Census Bureau Data, WorldBank estimates 8/23/2010 SMB Group Confidential 7
Slide 8: SMB & Mid-Market Considerations SMB Customers SMB Vendors Products CRM SMB Channels and Influencers • Changing business models • Industry solutions •Channel enablement •TCO messages •Customization costs •Hosted solutions • Social Media Channels Business Applications Cloud Computing, Virtualization Emerging Tech. Collaboration/ Productivity Social Networking Industries • Business needs (Business benefits from soln.) •On-premise/Appliance/SaaS •Initial Costs/annual maintenance costs & upgrades •TCO of implementation models •Role based models •Integration & customization •Cloud Computing •Customer requirements •Pricing/business models •Upgrades •Industry Solutions •Emerging Technologies •Customer Segmentation •Messaging & Social Net. •SMB/Mid-market focus •Cloud Computing 8/23/2010 SMB Group Confidential 8
Slide 9: SMB Group Services • X credits per year SMB Market • Strategy session Monitor Retainer Service Consulting, Inquiries, Presentation s, Webinars SMB Market Studies and Segmentatio n Analysis • Routes to Market • Mobility • Business, Collaboration & Marketing Applications Thought Leadership Studies and White Papers Client Requirements SMB Readiness Studies Competitive SWOT Analysis ROI and TCO Assessments and White Papers Customer Benefit Studies (Qualitative/ Quantitative) • Corporate Performance Management (CPM) Solutions for the Mid-Market • Business Analytics • Online Collaboration and Productivity Solution Suites 8/23/2010 SMB Group Confidential 9
Slide 10: Sample Approach: Customer Benefit/Thought Leadership Projects Market/ Customer Insight Qualitative primary research •Business value of solution •Business outcomes achieved savings, productivity gains, etc. • Lessons learned SMB Group Deliverables Integrated Market Outreach/ Promotion Customer benefit focused deliverables can take the form of: External use: 1.One or a series of whitepapers 2.Short articles/blogs 3.Speaking engagements at events Internal Use: Analysis and recommendations for product, marketing and messaging PR campaign to highlight research findings “Experiential” Quantitative primary research (survey) • Drivers – business & technology challenges • Solution selection • Solutions used • Spending on various connected services • Business results achieved savings/benefits • Lessons learned Added visibility through Webinars/podcasts Social Media 1.Blogs 2.Twitter “Quantifiable” 8/23/2010 SMB Group Confidential 10
Slide 11: Client Project Example: Customer Benefit Research & Demand Generation • • Customer: Dell Requirements: Identify qualitative and quantitative benefits of new managed services offering and articulate to the market Methodology o Qualitative customer interviews o Web-based survey • • Outcomes: o 2 customer benefits papers for demand generation o Integrated with PR campaign for press coverage o Deeper insight into customer requirements for future product planning SMB Group Confidential 11 8/23/2010
Slide 12: ROI Case Studies
Slide 13: Client Project Example: TCO and ROI Studies • Client: Leading SaaS financials vendor • Requirement: Articulate the TCO advantages of SaaS-based business solutions vs.. packaged software alternative • Project: Quantitative TCO study with qualitative insights • Outcomes: Used used extensively by sales and partners as a lead generation tool and to demonstrate cost savings and short term ROI 8/23/2010 SMB Group Confidential 13
Slide 14: SMB and Mid-Market Readiness Studies 8/23/2010 SMB Group Confidential 14
Slide 15: SMB and Mid-Market Studies 8/23/2010 SMB Group Confidential 15
Slide 16: Client Project Example: SWOT Analysis • Client: Leading small business software vendor New Media Trumps Traditional Methods for Small Businesses to Promote and Grow their Business New Media How are small businesses promoting their business? See chart on left However : • Finding these solutions is time consuming • Solutions are not integrated • Each has a different design center/look & feel • Requirement: Identify and assess emerging small business focused SEO, SEM, social media offerings to better evaluate competitive impact and partnership/acquisition potential • Project: Detailed SWOT analysis of key players and overall market landscape Marketing Tools Budget Change 2009 vs. 2008 Marketing spend more tilted towards new media. Trad. Media Sample Size = 259 New Media Increase Remain the same Decrease 48% 38% 43% 59% 55% 10% 8% 2% 6% 4% 25% 22% 28% 36% 21% 29% 26% Zoho Discussions - Summary SWOT Strengths of Company • ZoHo Discussions allows SMBs to create internal and external social communities to improve their customer support and product development experience • Disruptive pricing designed to induce SMBs to try: Free, Basic ($12/m), Std.($24/m), Professional ($75/m.) • Integration with other productivity and business apps. • Rapidly growing customer base – 2M+ registered users, 100% growth in 1 year Search engine… 41% Webinars and/or… 54% Social media (blogs, … 55% Email newsletters 34% Other 41% Yellow Pages 21% Direct mail (hard copy) 36% Tradeshows 26% Radio/television… 21% Trade magazine… 16% Business… 24% Local newspaper … 13% 54% 42% 47% 43% 63% 48% 61% Weaknesses of Company • How to get larger number of free registered users to expand usage of applications so that they become paying customers • Need more integration between applications (they are working on this) • Significant competition from Google and potential competition from Microsoft Opportunities (external conditions helpful to company) • Integration between various appl. and SaaS appl. development platform with API…move experimental users to paid customers Threats (external conditions harmful to company) • Google WAVE to be released in 2010. 8/23/2010 SMB Group Confidential 16
Slide 17: Client Project Example: Thought Leadership and Demand Generation • Client: Campaigner (Protus) • Requirement: Build brand awareness and thought leadership position in small business • Project: Conduct survey to identify small business marketing trends • Outcomes: o 2 papers and 2 Webcasts promoting the findings (Campaigner Web site) o Integrated PR campaign resulting in multiple press articles State of Small Business Online Marketing Survey Part I: Small Business Marketing Health Check Research conducted by: Hurwitz & Associates Sponsored by: Campaigner 8/23/2010 SMB Group Confidential 17
Slide 18: Market Analyzer Advisory Service Approach Goal is to leverage social media and traditional research methods to monitor the topic conversations and utilize them to get market and competitive insights, focus on relevant issues to develop and refine product, marketing and partnership strategies. •Share of Conversation: Listening to how mentions of brand stacked up as compared to the overall industry buzz and competitors buzz. o o o What are the key conversation topics Who are the vendors and products mentioned in the conversations Who is driving the conversations •Relevant Conversations: Paying attention to key topics of the conversations and periphery conversations, and what the collective audience is reading and hearing about o o Listening to determine primary and secondary offering attributes Determine messaging that would resonate with specific market segments •Vendor/Brand Associations: Capturing how people are talking about their company/brand overall, and what other associations (both positive and negative) that people were making with their brand. o Using this to develop competitive positioning and partnership strategies •Conversation Drivers: Tracking who/how they mentioned specific brands and product names to determine the key influencers as part of outreach strategies 8/23/2010 SMB Group Confidential 18
Slide 19: Market Analyzer Advisory Service Example: Cloud Computing Key Discussion Topic Trending Over Time Listening Map on “Cloud Computing” Listening Sources: Google, WordPress, BlogRoll Sentiment: Green – Positive Grey – Neutral Red - Negative What topics are more important than others and change over time 2/24/2010 2/24/2010 SMB Group Confidential 4 SMB Group Confidential 1 Key Vendor Topic Trending Over Time Who are the leading players and how are they changing over time Key Vendor & Topic Discussion Sentiment Analysis – Positive to Neutral to Negative Major Discussion Topics Sentiment Analysis Major Vendor Topics Sentiment Analysis • Dell’s needs to strengthen position in cloud computing • Relatively in a better position vs HP (SMB competitor) • Partnership strategies for cloud s/w and cloud-based software vendors 2/24/2010 SMB Group Confidential 6 2/24/2010 SMB Group Confidential 7 8/23/2010 SMB Group Confidential 19
Slide 20: Thank You! SMB Group, Inc. 508-410-3562 information@smb-gr.com Website: Blogs: www.smb-gr.com http://sanjeevaggarwal.wordpress.com http://lauriemccabe.wordpress.com 8/23/2010 SMB Group Confidential 20