SMBs are the future of the new normal and what the channel can do to enable and equip this growing sector more effectively, according to Giacom Head of Platform Rob Hancock.
Hancock said that SMBs needed essential digital tools and technical support. And smaller organisations that take a cloud-first approach are a ‘new generation’ of business owners that will continue to drive business success into the new normal.
The pandemic has forced many companies to re-think their current processes in order to maintain continuity, drive productivity and, in some cases, just survive. 12-to-18 months after the first lockdown, society and business is settling into a new normal, but continues to face similar productivity challenges, he said.
“Achieving these goals, though, has required an increased dependency on technology and new processes across companies of all sizes. Many organisations have taken on digital changes to navigate these challenging times”, Hancock said.
He wondered if the pandemic has created an environment that is more suitable for SMBs small-medium sized businesses to gain the upper hand.
SMBs tend to be more agile than larger enterprises because they don’t have the same level of bureaucracy to manage. Many SMBs can bring on services and tools at a much quicker pace than larger organisations, which may have to go through many layers of approval.
During the pandemic, agility has never been more crucial, too, with the necessity of remote working, collaboration tools and security protocols to implement. In 2020, 45 percent of SMBs changed their business models in response to COVID-19.
Hancock said that there was a misconception that SMBs can’t deploy similar technologies to that of larger businesses. SMBs can quickly develop a strong infrastructure that is based in the cloud, including key applications like security, customer data management, and data backup.
Hancock cited research that shows that the cloud will continue to be crucial for the SMB market and channel.
He said that 71 percent of companies plan to adopt cloud tech directly and more than a third of organisations will rely on the channel for support here – MSPs, VARs, retailers, or distributors.
Many SMBs have fewer internal IT resources at their disposal to support managing IT (no in-house team or staff with little IT management knowledge). In these cases, they could really benefit from outsourcing IT requirements to specialist SMB-focused MSP channel partners who can support them. That way they can focus on growing their business.
“Many entrepreneurs often don’t have the spare time for or access to the training that they need to manage IT. Therefore, the MSP, and wider channel, has an opportunity to educate this market and provide complete offerings to it. As you can tell, the opportunity is there for the taking”, Hancock said.
The COVID-19 pandemic has driven a dramatic increase in cloud adoption too, with social distancing restrictions recently increasing the need for remote working and cloud solutions. Over half of UK business leaders say the shift to a cloud business model, ultimately, saved their company from collapse during the height of the pandemic.
Often after an economic downturn, there is an increase in new smaller businesses that enter the market, as insurance companies have seen large year-on-year increases of SMBs.
“These new SMBs aim to have flexibility and scalability, especially if hybrid working is here to stay, as they’ll require more bespoke cloud-based solutions. So, SMBs will turn to IT service providers for their tech needs, as 73 per cent of small businesses identify that developing a digital infrastructure is a key priority. But to be successful, MSPs should be choosing the right services for their customers to benefit from.”
