1. technology and computing

Signal:
I SIGNAL
4th Quarter 2014
\sig-nl\ n (Webster’s) --
1: something that excites to action;
2: something that conveys notice or
warning;
3: an object used to transmit or
convey information
www.i-signal.com
Welcome to I-Signal, a publication through
which AMI-Partners provides a periodic,
graphic review of the strategic issues, trends
and directions impacting information
technology (IT), communications and related
industries.
10 Trends Impacting the SMB Market
In accessing the global small and medium
business market, AMI believes that four key
areas highlight the critical changes in the
global SMB market:
Remote managed IT
services across
devices, platforms,
infrastructure & apps
1. Pain Points — SMBs’ view of the macroeconomic environment and how they
manage business issues and priorities
2. Decision Making — How SMBs’ view of
technology is changing—mindset, decision
making, buying behavior
3. Marketing — Challenges and opportunities for vendors related to marketing to
SMBs
4. Opportunity—Keeping a pulse of where
and what the IT opportunity is in the SMB
market, how to segment and target
In this issue, we will examine the
transformation of SMBs underway due to the
Cloud and the effect on SMB channel
partners.
Stay tuned for more signals in the future and
send us back a few.
Market dynamics creating opportunities and disruptions
Renewed focus on
business realities,
customer
experience & OPEX
Channel ecosystem &
RTM transformation
blurring MSPs,
Hosters, Telcos,
Resellers, SIs
Decision making
tied to scalability &
business goals
Robust ICT
infrastructure
investments –
back-up, security,
network
SMB
Hosted servers &
virtualization for
workload
optimization
Wide range of cloud
solutions and
increasingly hybrid
Increasing
mobile user
segmentation
Rising appetite for
bundled cloud
services and pricing
Integration of mobile
devices, widening of
apps, impact of LoB
users
 AMI-Partners
AMI-Partners (www.ami-partners.com) 2014
2014 WW SMB Market ICT Opportunity
WW SMB ICT spending estimated at $1 Trillion for 2014…wide
regional variances in ICT spent per SMB
# of SMBs = 75.3M
SMB ICT Spend/Region: $1.0 T
NA
10%
LATAM
21%
LATAM
MAPAC 10%
14%
WEU
16%
Mature
APAC
10%
Em'g
APAC
23%
ICT Spend/Category: $1.0 T
NA
30%
Telecom
Eqpt &
Svcs
35%
EAPAC
13%
EEMEA
20%
EEMEA
8%
Internet
11%
WEU
25%
Infrastr
ucture
24%
IT Svcs
& Sftw
30%
Infrastructure = PCs, Printers, Svrs, Ntwkg, Secur, Strg
Average ICT Spend Per Business
$725,846
3.7x
4.3x
$18,925
$197,136
$4,406
Emerging Region SBs
AMI-Partners (www.ami-partners.com) 2014
Developed Region SBs
Emerging Region MBs
Developed Region MBs
 AMI-Partners
Best regards,
Andy Bose
-1546 Fifth Avenue, New York, NY 10036 Tel: 212.944.5100 Fax: 212.944.2288 URL: www.ami-partners.com
AMI-Partners’ R&D Investments:
AMI-Partners:
Extensive
Global
Footprint
Global Primary Research (Surveys)
Coverage Map Touches All Major
Countries
Actionable Global SMB Market
Intelligence, GTM Strategy &
Implementation Models
- 18+ Year History 
WW Deep End User Tracking


WW Channel Partner Tracking


Mindset, Buying Behavior, Decision Criteria, RTM, ICT
Adoption/Usage/Plans, Cloud Migration, Bundles, Brands
Solutions, Skill Sets, Customer Base, Business Models, Vendor
Programs, Capacity Planning, Benchmarking Tools, KPIs, ROI
Engines, Cloud Transformation
Global IT/Telecom Market Sizing Model




110+ ICT Categories
50+ countries;/Sub-regional/City level
19 Verticals, 8 employee segments
RTM Overlay
Actionable Market Segmentation
Model & Predictive Database Analytics
 GTM - Campaigns/Lead Gen/Partner
Recruitment; Competitive
Benchmarking; Best of Breed; KPI
 Strong Global Presence Across
Americas, Europe, APAC

AMI Tracking Surveys Cover
Countries Driving over 90% of WW
SMB IT/Telecom Spending
(SB = 1-99 Employees, MB = 100-999 Employees,
LB = 1,000+ Employees)
 AMI-Partners
AMI-Partners (www.ami-partners.com) 2014
I-Signal Feedback
I-Signal is an interactive publication. We invite you to help us focus our future coverage of global technology markets. Tell us
what issues are important to you.
We welcome your comments by email at: [email protected].
I-Signal Contents
Welcome to I-Signal .............................................................................................................................................1
Cloud Transformation of the WW SMB Landscape ............................................................................................3
RTM and Channels Transitions ............................................................................................................................5
I-Signal Staff
Publisher
Andy Bose
Marketing—Americas/
EMEA
Staff Editors—
Americas/EMEA
Julia Blelock
Jason Atkins
Rohan Bose
Steffen Grabowski
Andrew Kirk
Clayton Miller
Yuki Uehara
Production
Eileen Zimbler
Marketing—APAC
Contributing Editors
Jyoti Singh
Neha Goenka
Jackilyn Almazan
Ryan Brock
Deepinder Sahni
Staff Editors—APAC
Devapriyo Chakravarty
Somnath Das
Abilash Pillai
Subrata Sarkar
Partha Sengupta
Copyright 2014 by Access Markets International (AMI) Partners, Inc. All rights reserved. No part of this newsletter may be
reproduced without permission from the Publisher. I-Signal is published quarterly by Access Markets International (AMI) Partners, Inc., 546 Fifth Avenue, New York, NY 10036, Tel: 212-944-5100, Fax: 212-944-2288, URL: www.ami-partners.com
-2546 Fifth Avenue, New York, NY 10036 Tel: 212.944.5100 Fax: 212.944.2288 URL: www.ami-partners.com
Cloud Transformation of the WW SMB Landscape
WW SMB Migration to Cloud Accelerating
— Highlights —
Worldwide SMB ICT spending has risen steadily,
albeit with increasing shift from traditional onpremise IT products/services to hosted and remotely
managed solutions
Migration to Cloud
Total
Proportion of WW IT/Telecom Spend
Migrating Into The Cloud
$1,037 b
By year end 2014, WW SMBs will have spent over
$1 Trillion on IT and communications solutions. Future
growth will be driven by the rapid adoption of hosted/
cloud-based solutions.
Overall, WW SMB spending on cloud services is projected
to rise from $140 Billion (2014) to $285 Billion (2019). As a
percent of total spending on ICT by WW SMBs, this
represents a migration of 13.5% (2014) to 20.3% (2019)
towards hosted solutions.
2014
Computing
$177b
17%
Software
$106 b
10%
Networking
$23 b
2%
Security
$17 b
2%
Storage
$30 b
3%
IT Services
$206 b
20%
Internet
$119 b
11%
Telecom Equipment
$45 b
4%
Telecom Services
$314 b
30%
Impact of Mature Vs Emerging Market SMBs on
Growth of Cloud Spending
$285 b
13.5%
$140 b
2014 2015 2016 2017 2018 2019
 AMI-Partners
Total Cloud Opportunity Breakout
Total Worldwide Cloud Value & Growth (2014, 2019)
$60.0
Total Cloud Market Value in 2014 ($B)
Mature markets will, however, still account for the lion’s
share of cloud-related spending—almost $7 out of every
$10 spent on hosted solutions will be driven by countries in
North America, Western Europe or Mature Asia Pacific.
20.3%
Computing = PC Hardware, Tablets, Printers, Peripherals, Servers
Networking = Routers, Hubs, Switches, WLANs, Other Networking HW
AMI-Partners (www.ami-partners.com) 2014
Emerging markets will lead in cloud spending growth over
the next five years. Emerging Asia Pacific is expected to
grow at a CAGR of over 25% and Latin America at a CAGR of
about 21%.
% of
total
North America
$92.9
Note: Bubble size
represents market
value ($B) in 2019
$50.0
Western Europe
$67.3
$40.0
$30.0
$20.0
Mature APAC
$38.2
$10.0
$0.0
5.0%
Emerging APAC
$46.8
Latin America
$21.7
EEMEA $18.5
10.0%
15.0%
20.0%
25.0%
30.0%
5 YR CAGR
 AMI-Partners
AMI-Partners (www.ami-partners.com) 2014
Migration to cloud: SMBs are integrating cloud
solutions with on-premise in a controlled approach
towards a blended hybrid environment
Almost half of all WW SMBs report they are anticipating an
increase in their IT budgets, with almost one-quarter likely
to migrate more IT dollars to cloud-based solutions. Both
SaaS and IaaS solutions are highlighted as key investment
areas.
One in four SMBs plan to control the assimilation of cloud
services into their IT infrastructure – using both hosted and
on-premise versions of solutions in an integrated manner.
Cloud Budgets on the Rise
Likelihood of migrating more IT
spending on hosted/cloud
solutions than on-premise IT
products/services
Allocation of Increased IT Budget
by Category
(% of SMBs Likely to Migrate More of IT
Budget to Cloud)
SB
MB
84%
MB
31%
81%
72%
71%
71%
60%
SB
22%
Software &
applications
(SaaS)
AMI-Partners (www.ami-partners.com) 2014
Remotely
managed IT
services
(RMITS)
 AMI-Partners
-3546 Fifth Avenue, New York, NY 10036 Tel: 212.944.5100 Fax: 212.944.2288 URL: www.ami-partners.com
Infrastructure
services (IaaS)
Cloud Transformation of the WW SMB Landscape
WW SMB Business Issues and Goals
WW SMB Buying Behavior
SBs and MBs have similar business issues tied to cash flow,
OPEX, competition, revenue growth and are taking actions;
Across regions business goals portend need for IT investments
IT solutions must be scalable & aligned with business objectives;
Providers must connect value prop with impact on business goals
WW SMBs: Buying
Behavior- Decision Triggers
Business Pain Points
Decreased
revenues
Actions Planned
Improve customer
experience/ retention
45%
48%
Slower
receivables
39%
39%
Restricted cash
flow
29%
35%
Pricing pressures
33%
30%
Cancelled sales
orders
27%
18%
38%
43%
41%
38%
Reduce OPEX
Launch new markets
/products
MB
SB
Keep
Customers
Satisfied
Improve
Pricing/Competitive Productivity
Pressures
Manage Cash Flow
Savvier
Customers
HR/Talent
Supply Chain
Influences
Sales Growth
Manage Time
39%
IT solutions align
w/overall bus strategy
73%
81%
Scalability of solution
is key
66%
77%
Calculate TCOD before
investing
61%
77%
30%
Improve productivity/
leverage IT
28%
22%
Hire empls w/new skill
sets
26%
Price is most
important
Speed of Business/
Response Times
Collapse
Response
Time
Easy/Simple
to Manage
Using a formal
purchase process
SB
Business Growth, Rising Mobility, Remote Workforce, Lack of
Internal IT Among SBs
Growth Plans Next 12
Months
Plan to add locations
Plan to hire employees
14%
53%
29%
Good news is that there are common themes across geos;
Magnitude varies among SBs and MBs and regionally
Small Business
Improve network connectivity&
bandwidth
5.3 %
6.2 %
Presence of Internal IT
Department
 AMI-Partners
AMI-Partners (www.ami-partners.com) 2014
WW SMB Interest in Deploying Cloud Services
SMBs Show 3-4X Interest in Bundled & Integrated Cloud Services
Equipping mobile empls
w/smartphones
56%
39%
46%
37%
45%
33%
46%
33%
Migrate more apps to cloud &
tablets
29%
Purchasing tablets over
notebooks
29%
53%
50%
36%
 AMI-Partners
AMI-Partners (www.ami-partners.com) 2014
WW SMB Bundling Opportunity
Strong Opportunity for Service Providers & Hosters to Broaden Revenue
Stream, Increase ARPU and Reduce Churn, With Successful Bundles
Transforming revenue stream
poses key questions:
Productivity
40%
ERP
PCs
SaaS
PBX
11%
Core
IaaS
Broadband
Data Services
Wireless
Video
Conferencing
9%
Security
Single Service
AMI-Partners (www.ami-partners.com) 2014
Project
Mgt.
Storage
IaaS &
Managed
Services
UC
IM
IT Help
Desk
Web
Hosting
SaaS
AMI-Partners (www.ami-partners.com) 2014
 Key drivers of selecting providers
 Preferred solutions portfolio:
Product/services bundling
preferences
 Core SMBs: profile and
characteristics
CRM
 Cost of sales
Business
Intelligence
HRM
Multiple Services
 AMI-Partners
Network
VoIP
Voice
Accounting
Servers
Web
Conferencing
33%
65%
40%
Utilize integrated UC Services
87%
63%
47%
Use CRM & BI/Analytics & LoB
Apps
Implement Virtualization solutions
54%
78%
60%
Deploy IT systems mgt. tools
Mobile Workforce
Medium Business
70%
Deploy Back-up/disaster recovery
solutions
Enhance Data & Mobile device
security
Expected Revenue
Growth
MB
WW SMB Top 10 Strategic IT Mindset Issues
Medium Business
45%
77%
 AMI-Partners
AMI-Partners (www.ami-partners.com) 2014
Firmographic Drivers of ICT—Cloud Services
Small Business
36%
11%
 AMI-Partners
AMI-Partners (www.ami-partners.com) 2014
50%
56%
 Implications: promotions, onboarding, activation, migration &
support
 AMI-Partners
-4546 Fifth Avenue, New York, NY 10036 Tel: 212.944.5100 Fax: 212.944.2288 URL: www.ami-partners.com
RTM & Channels Transitions
WW SMB Cloud Services Spending by Channel
More inter-dependencies among SPs/hosters, IT vendors and
channel partners – Ecosystem Evolution
$300.0
Distributors facing increased competition from hosters and other
cloud providers/service providers
$285 b
$250.0
$200.0
34%
38%
45%
Telcos/Cable
In $ Billions
U.S. Partner Attitudes Towards Distributors
Agree
Hosters
$140 b
$150.0
Neutral
MSPs
System Integrators
$100.0
31%
40%
32%
26%
CPs (Resellers, ISVs, etc)
15%
Retail/DMR
Distributors have done a
good job at evolving to
help us sell cloud
2019
 AMI-Partners
AMI-Partners (www.ami-partners.com) 2014
 AMI-Partners
AMI-Partners (www.ami-partners.com) 2014
Steps Taken by Most Successful Cloud Partners
U.S. SMB Channel Partner Transformation
Top cloud partners have invested to build business units
dedicated to cloud
SMB Channel Partners:
Cloud Transformation
• Created a
separate
Cloud
services
business
unit
• Specify
sales goals
for Cloud
solutions/
services
• Integrated
cloud into
primary
sales &
marketing
motions
• Employees
Have
achieved
Cloud
certifications
• Have a
dedicated
cloud
marketing
team
37%
Cloud
Emerging
26%
Cloud
Cloud
Migrating
Transformed
24%
13%
AMI-Partners (www.ami-partners.com) 2014
 AMI-Partners
AMI-Partners (www.ami-partners.com) 2014
Cloud Laggards
U.S. SMB Channel Partner Profitability of
Cloud Business Models
Managed services & consulting services drive partner profitability
38%
50%
Providing
Cloud
Consulting
Services
49%
Customizing other
vendors’
cloud solutions
Developing
& selling
own cloud
solutions
Reselling other
Vendors’
cloud solutions
1. Have some expertise needed to sell
cloud solutions, but require
additional vendor support
2. Plan to ramp investments in cloud
business
1. Lack the expertise needed to
effectively sell cloud solutions
2. Need significant support for cloud
business expansion
1. Focus mainly tied to on-premise
solutions
2. Low to no Cloud competencies
 AMI-Partners
Cloud Partner Opportunity, Strategy & Enablement
Identifying the
Addressable
Partner
Opportunity
• SMBs ICT Spending
• Routes-to-Market Sell
Through Model
• ICT Spending Per RTM
43%
1. Have launched dedicated cloud
business unit
2. Have the expertise needed to
effectively sell cloud solutions
AMI’s RTM & Channels Practice Focus Areas
• ICT Forecasting Model
55%
Cloud
Transformed
2014
Cloud
Migrating
$0.0
We can't be successful in For cloud, we'll be working
cloud without support
less with distributors &
from distributors
more w/other partners like
Hosters & Telcos
Cloud
Emerging
Vendor Direct
Cloud
Laggards
$50.0
Providing
Remote
Managed
Services
• Partner Competencies
Report
• No./Type of Partners
Driving Opportunity by
Solution
Profiling and
Targeting HighValue Partners
Implementing
Successful
Channel
Programs
• Cloud Partner
Transformation Tracker
• Benchmarking &
Metrics Report & Tool
• No./Type of Partners
Generating Meaningful
Cloud Revenue
• Partner Segmentation &
Targeting
• Successful Partner Metrics
& Best in Class
Comparisons
• Programmatic Support
& Tools
• High-Value Partners
Profile
• Regional Opportunity &
Capacity Planning Tool
• No. of Partners Needed to
Drive Market by
Geo/Region/ Metro, by
Competitor
• Programs with Greatest
Impact on Partner
Transformation
• Partner Enablement
Workshops
(% of Partners who feel each model is profitable)
AMI-Partners (www.ami-partners.com) 2014
AMI-Partners (www.ami-partners.com) 2014
Disagree
40%
 AMI-Partners
 AMI-Partners
-5546 Fifth Avenue, New York, NY 10036 Tel: 212.944.5100 Fax: 212.944.2288 URL: www.ami-partners.com
• How Vendors can Provide
Partners with the Tools
for Success
I SIGNAL
A publication of AMI-Partners
AMI-Partners Services Portfolio & Expertise
AMI-Partners provides actionable market intelligence and GTM consulting to IT, communications and business
services companies, with a strong focus on global small, medium and enterprise business market sectors. We
develop analytics-driven GTM strategies—including channel partner/RTM programs—to help our clients succeed
throughout the world.
AMI Product and Service Offerings
Content &
Primary
Research
Market
Intelligence
Strategy
Marketing
SMB, LB & HBB End User IT Tracking
Studies in leading countries – NA, LatAm,
EMEA, APAC
Syndicated Services
GTM Sales &
Channel Programs
AMI’s syndicated services cover a full spectrum of global technology
usage across a broad array of solution types and business size segments.
Calls to Action
Global Model (GM) HBB,
SMB & LB Market Sizing &
Forecast
Channel Partner
Databases
Channel Partner Tracking Studies and
Databases in the NA, LATAM, EU,& APAC
Consulting
Services
Analytics
& Models
Database of Vendor/Supply-side & Industry Analyses and
Competitive Assessments
Global SMB IT Spending Forecast Model and
Routes to Market Model
Conjoint Analysis
Systematic Assessment of Optimal Offers &
Bundles Along with Revenue Uplift
Database
Analytics/Predictiv
e Modeling
Competitive
Analyses &
Benchmarking
Managed Services Overview
IT Infrastructure (Security/Storage)
Market Assessment
RTM & Channels Practice
Segmentation Models
(Audience, Personas, Product, & Markets)
Marcom, Brand
Equity & Customer
Satisfaction
GTM Assessments &
Product Positioning
AMI Sector-Focused Services
AMI Core Products & Services
ICT Sector-Focused Svs: Mobility/Tablets,
Cloud Svs, Security, Virtualization,
UC/Collaboration
Virtualization Tracking
Cloud Services Strategic &
Tactical Assessment
Campaigns, Lead Gen,
Prospecting Tools
CRM & BI/Data Analytics Outlook
Mobility Tracking
Managed vs. Unmanaged IT SMBs
Customer Journey & Experience, Sales &
Marketing Strategy, Routes to Market,
Channel Capacity Planning/Partner Programs
(Examines how SMBs managed their IT infrastructure)
IT Adoption & Mindset-Based
Segmentation
Global Voice of the Customer Research
(fieldwork design, execution, management)
(Targeting high-value SMBs/lead gen)
Global Model Overview
AMI’s WW SMB Cloud Services Practice
AMI’s Global Model (GM) is a portfolio of strategic planning tools that provide market
sizing & 5 year forecast models of 110+ ICT categories across 50 countries & regions.
Excel-based modules supply granular, actionable market insights.
1. Assess & quantify demand for and migration to cloud services
2. Identify specific features, bundles & pricing to maximize uptake and revenues
3. Partner ecosystem, SMB segmentation, lead generation & customer acquisition
Complete Commercial and Public Sector Coverage
Coverage of Key Cloud Solutions – across leading countries
Compare and contrast market size, growth and attractiveness across major segments for 110+ products/services; prioritize
targeted countries and sub-segments; evaluate resulting business impact via multiple “if-then” scenarios
• Audio
Home Based
Business (HBB)
Small Business
(1-99 Employees)
Medium Business
(100-999 Employees)
Large Business
(1,000+ Employees)
Public Sector
(Govt. + Education)
Further Drill Down Lenses
Comprehensive On-Premise & Cloud Coverage
Pinpoint opportunities and align strategy accordingly;
ensure geographic & distribution capacity alignment.
Visualize changes in the marketplace across products and services; see how target
markets shift spending dollars across products/service categories.
12 Employee 19 Vertical
Bands
Industries
Devices
SaaS
Applications
Networking
IaaS
Services
8 Routes-To- Top Metros
Market (RTM) and Cities
UCC
Telecom
Security
PaaS
Mobility
Storage
conferencing
• Hosted VoIP
• Video
conferencing
• Web
conferencing
RMITS
AMI WW
SMB
Cloud
Services
Tracking
UC
• Networking
• PBX
• PCs
• Security
• Servers
• Storage
RMITS
(Remotely
Mg’d. IT Svcs
SaaS
IaaS
• E-mail
• Productivity Suites
• Accounting
• Payroll
• HRM
• CRM
• ERP
• BI/Analytics
• Security
• Servers &
Co-Location
• Storage
• Virtualization
• Web Site
Devices &
Platforms
•Notebooks
•Ultrabooks
•Tablets
•Smartphones
•Servers
•Networking
•PaaS
Hosting &
Maintenance
Bundles, Prices, Seats, Private, Public
Channels
Competitors
Geographies
For more information about AMI-Partners and our global services, call 212-944-5100, e-mail [email protected], or
visit www.ami-partners.com.
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