ChannelTrends: Find the Best Opportunities in SMB

The technology available today allows even the smallest, emerging solution provider to offer and support a large portfolio of services and products. Managed services and the cloud are just two of the innovations making that possible, each leveraging the Internet to deliver valuable solutions for the business community. Using these delivery models, virtually any solution provider can support a substantial number of clients with almost every type of service, and not just locally.


When VARs and MSPs build a network of outsource partners, they can maintain a client base across the country (even beyond). The biggest roadblock to building bigger, in this era, is the size and quality of your sales team. But being all things to all companies isn’t necessarily a good idea, especially if it limits your ability to differentiate from the competition. One of the best differentiators for solution providers is their ability to tailor technology for their customers, especially small business. When companies offer everything for everyone, they often lose their way. That’s a criticism often made against the large IT companies that sell direct, so why would a solution provider want to copy that model?


Rather than build a broad portfolio of general applications, many VARs and MSPs are going deeper to support their SMB clients (and to attract new ones). That doesn’t mean a complete solution portfolio isn’t beneficial to client retention and support, but smaller companies often focus on a couple of key specialties and build other service practices from there. Gaps in the portfolio may be addressed with outsource partners on a temporary or long-term basis. The goal is to provide the unique capabilities required to support and grow their local clientele, then expand proficiencies based on market (or segment) needs.


The SMB Community Needs Your Help

One of the major footholds for the IT channel is small to medium-sized business. The manufacturers understand the value of VARs and MSPs in this market segment, including the feet-on-the-street sales and support teams. Of greater importance is their ability to listen to the needs of smaller business clients and address them with tailored solutions and support. Despite the rapid advances in technology, the IT channel remains the leading source of support for SMB organizations.


That doesn’t mean solution providers should continue their businesses status quo—they must adapt to the changing needs of their clients. According to the latest CompTIA Small and Medium Business Technology Adoption Trends survey, 90 percent of SMB organizations still require support for their desktop computers, but their technology requirements are shifting and expanding quickly. That’s good news for the channel, as budgets and support needs increase.


In many cases, small and medium-sized businesses must keep their innovation on par with their larger, enterprise rivals. In order to remain competitive, SMB clients are looking at a number of new technologies. The research conducted by CompTIA shows an immediate need for enhanced network efficiency and power, mobile connectivity, data storage, business analytics, and online customer interaction capabilities. Each of these can be readily supplied and supported by the IT channel, whether through a single solution provider or network of technology professionals (partnering).


Within the next year, SMB organizations indicate a need to upgrade software and add resource management and tracking solutions, according to the survey. Cloud services may be a good fit for some small business clients, leading to new recurring revenue opportunities with a low cost of entry for solution providers.


The Mobility Dilemma

Small businesses want the same level of connectivity as their enterprise counterparts, including the ability to work remotely. Mobility plays a large part in satisfying that craving, so solution providers who can support smartphones, tablets and laptops will have a leg up on the competition. Almost half of the midsize business clients in the survey indicated they currently use mobile solutions, while another 33 percent plan to adopt those technologies within the next 12 months. On the other hand, just 25 percent of small businesses employ mobility currently, but 43 percent more expect to add those capabilities within the next year. Those numbers indicate a tremendous and immediate upside for solution providers who can support SMB with these technologies.


The mobility need also presents a threat to the IT channel, with many small businesses looking to wireless providers for answers. They often see their IT and communications needs and two distinct and separate issues, but in reality the two are quickly converging. Solution providers who take mobility seriously often partner with the wireless companies so they can maintain the client relationship and help them select the proper equipment and services for their unique business needs.


That partnership not only adds value to the SMB relationship, but somewhat keeps the wireless companies at bay. The telecoms are expanding their “solutions” as well, now offering tablets, laptops, smartphones and even videoconferencing equipment. While their sales teams can be considered competitors to solution providers, most of the wireless companies have established channel programs. Through these relationships, business clients receive the solution and sales support of a VAR or MSP, as well as the backing of the telecom company. That often improves loyalty and customer satisfaction for the wireless company, while the solution provider maintains account control.


Looking for More Differentiators in SMB?

Mobility isn’t the only offering that can distinguish a solution provider business. Unified communications, virtualization, and green IT are three other areas of opportunity within the SMB community. The CompTIA survey showed an interest for each, though not every solution provider business is going to thrive by adding these practices.


For example, green IT is almost a sub-specialty for most in the channel, woven into many of their service offerings. When VARs and MSPs offer computer component recycling, implement low-energy use devices, and adopt cloud solutions, they are following good environmental technology practices. Some communities respond more favorably to companies that offer these services, so it can be of greater benefit to emphasize those services in marketing and sales discussions in those areas. In other regions, while the solution provider may follow these practices automatically, their clients may be more responsive to other features or marketing messages. Green IT is important, but not always a differentiator.


Regardless of the industry or community issues, SMB technology and solution needs are changing and successful solution providers are focused on the trends, both locally and nationally. Are you addressing those changes in your business practices?


Brian Sherman is founder of Tech Success Communications, specializing in editorial content and consulting for the IT channel. His previous roles include chief editor at Business Solutions magazine and industry alliances director with Autotask. Contact Brian at Bsherman@techsuccesscommunications.com.