2014

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SMB IT Decision Makers Study

(Technologies Covered: Cloud, SaaS, Mobility, PC-based Software)

Information Technology decision maker's perception and adoption trends – Survey Outlook

01

Contents

Rese

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Rese

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Met

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logy

Exec

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IntroductionScope of the study

Framework

Sample Methodol-ogy

Participant Profile

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Primary & Second-ary

Data Triangulation & Forecasting

Forecasting Assumption

44

Abstract 46Market SizeSegment Defini-tion-Number of SMBs in India

SMB Market in India

Cloud Market in India

Changing IT Landscape and Market Scenario

SMB IT Vendor outlook

Drivers and Inhibi-tors of Indian SMBs

Cloud ComputingCloud Computing Key trends (SMBs)

Cloud developers focus on SMBs

Services Providers focus on SMBs

SAAS

IAAS

PAAS

Why Cloud Com-puting for SMBsEnterprise Mobility

70

Mar

ket O

verv

iew

Key Drivers for adopting IT services

SMB Current Concerns

Cloud based service barriers for SMBs

Cloud Visualiza-tion

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SMB:

IT a

nd fu

nctio

nal d

epar

tmen

ts

Cur

rent

SM

B IT

ado

ptio

n sc

enar

io

Preference of adopting IT: To solve business challenges

Current IT Spend

Key priorities of IT purchase decision

Top IT Investment priorities

% of IT budget being spent

Common IT applications used among SMBs

Current experi-ence of IT based services in SMBs

Service channel for SMB IT based services adoption

Role of System Integrator (Cloud)

113

Revenue wise usage

Adoption and usage of cloud based applications

126

Clo

ud c

ompu

ting

serv

ices

ado

pted

by

SMBs

Contents

IT F

orec

ast

2012

and

201

5 SM

B IC

T M

appi

ng

Com

pany

Pro

file

Future adoptions of Cloud based services

SMBs IT budget changes & future forecasting

Workloads that are likely to move in 2015

Workload Transi-tion: Cloud

Workload Transi-tion: SaaS

Workload Transi-tion: Mobility

Workload Transi-tion: Pc Based Software

130

Afterwards

ITDMs Perspective (Findings)

138

03

Contents

List of Tables

Table1: Manufacturing Sector-MSMB definition

Table 2: Service Sector –MSMB definition

Table 3: SMB market in India

Table 4: Cloud Market in India

Table 5: % IT Budget being spent –Cloud

Table 6: % IT Budget being spent –SaaS

Table 7: % IT Budget being spent –Mobility

Table 8: % IT Budget being spent –PC based Software

Figure 1: ITDMs, ICT FrameworkFigure 2: Participant ProfileFigure 3: Segment DefinitionsFigure 4: IT Landscape on TransitionFigure 5: Service providers focus on SMBsFigure 6: Key drivers for adopting ITFigure 7: SMBs Current concerns and challengesFigure 8: Cloud based Service BarriersFigure 9: Cloud VisualizationFigure 10: Value ChainFigure 11: Current priorities of SMB towards ITFigure 12: Current IT SpendFigure 13: Key priorities for IT purchaseFigure 14: Top IT Investment prioritiesFigure 15: % of IT budget being spentFigure 16: Commonly accessed application (Cloud and Mobility)Figure 17: Commonly accessed application (SaaS and PC based Software)Figure 18: SMBs IT experienceFigure 19: Service Channels-Cloud & SAASFigure 20: Service Channels- Mobility and PC basedFigure 21: Cloud computing services adopted by SMBsFigure 22: Revenue wise service usageFigure 23: Adoption & usage of cloud based solutionsFigure 24: Future adoption of cloud servicesFigure 25: SMBs IT budget and future forecastingFigure 26: IT Forecast- Workload transition-Clouds Figure 27: IT Forecast- Workload transition-SaaSFigure 28: IT Forecast- Workload transition-Mobility Figure 29: IT Forecast- Workload transition-Mobility Figure 30: 2012-2015 ICT SMB mapping

List of Figures

04

Key Take - Aways

The report helps to understand the movement of Information Technology in SMBs. This report showcases the current IT landscape inside organizations, highlights the significant practices and concerns along with the extent to which SMBs are planning to modify their IT budget in the forthcoming years. This study will help companies to fine-tune their go-to-market approach for SMBs towards IT and Cloud adoption

05

Methodology and Sample Distribution

ResearchFox SMB – SMB IT Decision Makers outlook 2013 was designed and conducted in May 2013. The research interviewed 200+ ITDMs (IT decision makers) across SMBs within INR 0 – 750 Crores revenues across 5 regions in India.

Companies were selected from online business directories. Companies without internet access/ and or companies not using email were screened out. Hence, all projections made are on this basis.

Respondents were IT decision makers or influencers who spend at least 5% of their time on IT and are aware of most of the company’s applications.

Larger SMBs were intentionally oversampled to ensure sufficient responses within the size group for analysis.

The sample is weighted by estimated company size within each country to be representative of the SMB population by verticals

1

2

3

4

99% confidence level and 3.5 as a confidence interval

Preference of adopting IT: To solve business challenges

Current IT Spend

Key priorities of IT purchase decision

Top IT Investment priorities

% of IT budget being spent

Common IT applications used among SMBs

Current experi-ence of IT based services in SMBs

Service channel for SMB IT based services adoption

Role of System Integrator (Cloud)

06

About the report

This study helps to understand the perception of Key IT decision makers of SMBs towards Cloud and Mobility and thereby obtain an overview of their current and future IT priorities and spending. The study highlights the perception of SMBs key decision makers (IT) towards IT and cloud adoption. The ResearchFox SMB team has conducted 200+ SMB IT decision maker surveys highlighting their top priorities ranging from bringing technology adoptions in their company to deciding on top IT investments. It is a pattern that most of the SMBs wants to adopt customized solutions for their infrastructure to avail maximum benefits from the services and enhance their performance. From the survey conducted, it is understood that few of the SMBs are still in the initial phase of IT adoption. High ambiguity among key stakehodlers and IT decision makers regarding the use of IT services has been identified for some of the commonly accessed applications. SMBs find it difficult to concentrate on their interim IT budget; the major challenge being lack of funds due to which they cannot transmit their ideas with the assistance of IT infrastructure and technical skills. Thereby the hampered ecosys-tem gives very little scope of innovation and courage to go for automa-tion of existing products. SMBs realize the fact that ICT adoption will not only improve their efficiency, but also allow them to balance their cost cutting. With every passing year many SMBs are opening up to the idea of low cost and innovative solutions.

The SMB ITDMs Study will allow IT service providers to assess and tap the SMB market with the understanding of SMB’s IT priorities and spend-ing. The report would also help the IT service provider to align their business processes with SMB’s market share and growth. These quadrants are analyzed for various parameters like Cloud, Saas, Mobility and PC-based

Afterwards

ITDMs Perspective (Findings)

Survey

Priorities for adopting IT IT Investment

IT Organization State

IT Forecast Current IT State

Drivers Inhibitors

Cloud

SaaS

Mobility

PC-based S/W

IT Solutions

CURRENT IT STATE

IT FORECAST STATE

High

Low High

INVESTMENT

ADOPTION LEVEL

IT Solutions

High

Low High

INVESTMENT

ADOPTION LEVEL

Extensive analysis was conducted across differ-ent aspects of SMB sector to identify potential opportunities for ICT adoption. This was analyzed by creating a framework to identify disruptive technologies in SMB sector across the country.

SMB IT Decision Makers

Framework of ICT Adoption

Target Audience:Small and Medium scale businesses Large enterprises IT Vendors

IT Consultants

System Integrators

Channel Partners

Sample Charts

07

About ResearchFox

ResearchFox is a Bangalore based market research Company with focus on delivering high quality research services to business professionals, organi-zations and individuals through knowledge driven research methodology.

We provide first-hand data services & reports on various industries, technologies, market parameters and key competitors in the industry thereby giving rational forecast on market trends to help clients identify prospective growth areas and gain competi-tive edge.

Established as SBU of Han Digital group in 2009, ResearchFox was officially incorporated in 2012. We provide niche market research services which goes beyond client - vendor transactions/ interactions by not only paving way for strong relationships but also creating a healthy ecosystem for actionable decision making

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