SMBs and Cloud Service Adoption · 2017-10-24 · On-Premise vs. Cloud-Based Solutions FINDINGS • A majority of SMBs, 55%, say that their software is mostly or all on premise. •

© AppDirect, Inc. Confidential Material 1

SMBs and Cloud Service Adoption


How are SMBs using the cloud and

how can I support them?


AGENDA

•  Current SMB Cloud Landscape

•  SMBs and Cloud Services

•  Plans for Cloud Growth

•  Meeting the Cloud Services Needs of SMBs

•  What is AppDirect?


Current SMB Cloud Landscape


On-Premise vs. Cloud-Based Solutions

FINDINGS

•  A majority of SMBs, 55%, say that their software is mostly or all on premise.

•  At companies with 1-10 employees, it’s 72%.

SMB Solutions: Cloud vs. On Premise:

Educate SMBs on the benefits of the cloud.


SMB Concerns About Cloud FINDINGS

•  67% of SMBs are comfortable with cloud-based applications

•  16% are moving everything to the cloud

AS SMBS GET LARGER, THEIR COMFORT LEVEL WITH CLOUD INCREASES:

•  81% of companies with 11 to 100 employees are comfortable with cloud

•  86% of companies with 101 to 250 employees

The majority of SMBs are comfortable with cloud technology.

SMBs Comfortable with the Cloud:


SMB Concerns About Cloud

FINDINGS

The other side of the coin: 33 percent of SMBs overall not comfortable with cloud

•  39% of SMBs are worried about security

•  27% say they aren’t big enough

•  18% say same solution isn’t available

•  16% say that they don’t understand how solutions work

More education on security, availability, how the cloud works.

Top SMB Cloud Concerns:


SMBs and Cloud Services


Current SMB Use of Cloud Services

FINDINGS

•  SMBs use an average of 6.48 cloud services

•  A significant amount, 19%, report using none

Number of Cloud Services Used:

Huge opportunity to expand your market to the 1 in 5 who use no cloud services.


Where SMBs Buy Cloud Services

FINDINGS

•  49% of SMBs purchase their software directly from ISVs

•  27% buy from Internet and / or telecom service providers

•  21% buy from local IT resellers

•  67% say that having to go to multiple vendors is “a waste of their time”

•  Increases to 74% at the largest SMBs

SMBs want to go to a single vendor for their cloud services.

Where SMBs Buy Cloud Services:


How SMBs Pay for Cloud Services FINDINGS

•  39% of SMBs with 11 to 100 employees get 3 - 5 bills

•  29% of SMBs with 101 to 250 employees get 6- 10 bills

THE LARGER THE COMPANY, THE GREATER THE NUMBER OF MONTHLY FEES / B ILLS

•  52% of SMBs with 1 to 10 employees get 1 - 2 bills

•  37% don’t know how many they receive

Many SMBs need more visibility into their IT Spending


SMB Plans for Cloud Growth


Increasing Usage and Spend

FINDINGS

•  47% of SMBs will increase use of cloud services

•  42% of SMBs won’t change their use of cloud services

Company size matters:

•  59% of larger SMBs say that their use will increase

•  30% of those in a company with 1 to 10 employees will increase usage

SMBs are eager to use more cloud services.

Percentage of SMBs that will increase use of cloud services:


What SMBs Want from Cloud Services

FINDINGS

•  35% want an easy way to access customer / technical support at any time

•  34% want a central location to manage apps

•  32% want to be able to buy bundled apps

•  29% want to buy apps bundled with Internet access

SMBs want cloud services to be easier.

What SMBs are looking for in Cloud Services:


Meeting the Cloud Services Needs of SMBs


Expert Advisors

FINDINGS

•  61% of SMBs overall want to use more cloud-based solutions, but they need help

•  85% say they want to talk with a person who can help them and answer their questions about cloud

SMBs need expert advisors to help them find what they need.


Preferred Cloud Services Providers

FINDINGS

•  45% of SMBs that are likely to consolidate want to get services from a telecom, Internet, and / or cable provider

•  27% of SMBs want them from local IT service providers / resellers

•  27% of SMBs want them from software vendors that offer add-on products

SMBs are comfortable buying from the channel.

Where SMBs prefer to get consolidated services:


Consolidated Billing for Apps and Services

FINDINGS

•  70% of SMBs say they would be more likely to buy their software from their telecom company if they could pay for all their services on one bill

•  68%, say they would be more likely to buy software from their local IT reseller if they could pay for their services on one bill

Offer streamlined, simple billing to attract SMB customers.

SMBs want to consolidate cloud service purchases:


Simplified Management

FINDINGS

•  50% of SMBs value “simple management most, only 25% named low prices as the most important

•  Simple management becomes even more important as companies grow larger, with 69% of companies with 101 to 250 employees citing it as their top value

Make it easy to use cloud services.

What SMBs value most in cloud services:


A Variety of Targeted Cloud Services

FINDINGS

•  84% of SMBs say it’s important for their companies to have many choices

•  69% of small businesses say they are looking for a variety

•  At the largest SMBs, 85% of SMBs want a range of applications to choose from

Focus on a core set of apps to start and then expand.


How You Can Make an Impact

FINDINGS

•  Only 20% of SMBs say that they have everything they need with regard to their cloud services

•  Drops to 14% of companies with 11 to 100 employees

•  6% of SMBs with 101 to 250 employees

There is tremendous opportunity to improve the SMB experience.


What Is AppDirect?

© AppDirect, Inc. Confidential Material 23 AppDirect Overview & Plan

AppDirect was founded to help businesses find, buy and manage cloud services through trusted providers.

$245 MILLION IN FUNDING RECENT SERIES E LED BY JP MORGAN AND PETER THIEL’S MITHRIL CAPITAL

WINNER OF NUMEROUS INDUSTRY AWARDS AND ACCOLADES

COOL VENDOR

FASTEST-GROWING SOFTWARE COMPANIES

© AppDirect, Inc. Confidential Material

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SMBs and Cloud Service Adoption · 2017-10-24 · On-Premise vs. Cloud-Based Solutions FINDINGS • A majority of SMBs, 55%, say that their software is mostly or all on premise. •