overview of the smb marketplace
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8/4/2019 Overview of the SMB Marketplace
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2008 Cisco Systems, Inc. All rights reserved. SMBAM v2.01-1
Overview of theSMB Marketplace
Cisco Solutions for the SMB Customer Segment
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2008 Cisco Systems, Inc. All rights reserved. SMBAM v2.01-2
The SMB Marketplace
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2008 Cisco Systems, Inc. All rights reserved. SMBAM v2.01-3
Our Small and Medium BusinessCommitment
An existing $2 billioninvestment, which will continueover the next two years, will helpstrengthen our portfolio of SMBClass solutions, enhance our
award-winning channel partnerprograms, and help buildawareness about the role ofnetworking solutions in SMBsuccess.John Chambers, President and CEO of
Cisco Systems(April 2004)
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Snapshot of Todays Global Select PartnersSelling to SMBs
Average time in business: 13.8 Years
Average number of locations: 2.6
Average size of business:
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Top Nine Reasons Partners Choose a Vendor
1. Technology relevance to my customers
2. New/better technology
3. Desire to increase profitability by better margin
4. Vendor business support/investment5. Ability to upsell
6. Desire to address a new business segment
7. The existing product set
8. Higher services component
9. New product launches
Source: CMP Channel Group
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Understanding the Market
Jocelyn Faust, analyst at Gartner, notes that to succeedin the SMB space, vendors must answer the followingSMB concerns:
Will it save money? Faust maintains that the IT projects that "save
money are the projects that get funded. Will it work with existing equipment? Investment protection is
critical in the SMB space, says Faust. If it's plug-and-play, it'smore likely to be adopted.
Will it grow with the business? Small and medium-sized
businesses tend to envision business growth and want to knowthe technology will grow with them.
Do you understand my business? SMBs contend their needs arevery different from enterprises and want to be sure the vendor orreseller understands their unique demands.
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The SMB Challenge
Security?
CustomerService?
Resources?
Expansion?
EmployeeFlexibility?
Productivity?
DisasterRecovery?
Oh,and I must
buy the wifea birthday
card!
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Top SMB Challenges
PainPoints Operational
Efficiency
InvestmentProtection
Securing BusinessAssets
Lack ofResources
CompetitivePressure
Solution: Converged network Simple to deploy
Easy to manage Highly available
Solution: Leverage existing
investments
Simple migration Enables future growth
Solution:Self Defending Network
Solution:
Smart, simple, secureinfrastructure Integrated applications Higher productivity
Solution: Lower total cost of
ownership Improved customer
responsiveness Faster time to market
Source: Cisco Focus Groups CY2005
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Technology and Business Expertise
Top Reasons SMB Customers Choose Partners:
Technical expertise
High level of customer interaction and service (relationship)
Understanding of end-customer's business
Experience with technology
Cost (product/service price)
Ability to provide ongoing technical support/help desk
Strategic business expertise
Source: CMP Channel Group
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Top Tips
Understand your customer and their business
If you understand their business problems, then you can identifyproduct features that will change their business
Diagnose the problem, before you prescribe a solution
Listen and qualify, and be patient; if you pitch too early, youcould bore the customer and switch them off
Find the customers need, driver, and pain and build anappropriate value proposition
Without these, the customer has the option to do nothing
The more value you establish, the quicker the customer willbuy and the less inclined they will be to ask for discount
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bMightyResearch Report:SMB and Unified Communications
Overview:
60% of respondents understood Unified Communications (UC)solutions
SMB not yet convinced of need for UC
SMB decision makers on fence about UC technology versuslegacy systems
Most SMB decision makers like existing telephony vendors
UC likely for salespeople and executives first
General education efforts needed on UC
Source: bMightyResearch Report on Unified Communications, Spring 2008
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Five Main UC Pain Points
1. Moving from PBX to IP Telephony and incorporating UnifiedCommunications solutions.
2. Upgrading is a nightmare...and typically requires a certifiedindividual to complete all of the changes.
3. VoIP integration [challenges] and support with remote offices.
4. Not happy about upgrade costs for software features.
5. No access to VoIP due to poor quality internet access.
Source: bMightyResearch Report on Unified Communications, Spring 2008
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Partner Business Challenges/Trends
What are some of the business challenges some of youare seeing today? What keeps partners up at night?
How do I stay relevant to my end customer?
Which new technologies should I bet on?
How do I acquire new customers?
Where do I find the right technical and services sales people?
How do I find more time in the day to be strategic about growingmy business?
Source: CMP Channel Group
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A Common Sales Situation Today
Partner TechnicalDecision Maker BusinessDecision Maker
ProposesCisco
TooExpensive
Positionsalternatives
Missing link tobusiness
challenges
MissingRelevance to
business
challenges
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Small and Medium Business Challenges
Customer Responsiveness Enhanced customer service
Flexible channel and delivery options
Operational Efficiency
Do more with less Improve business processes
Access real-time business information
Cost Containment
Improved business models, lower cost
structure Ease adoption of new applications and
services without incurring costly upgrades
Security
Data security
Regulatory compliance
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Business Strategy
Early engagement= higher $$$ sale
SBR Approach
Product DrivenTactical Approach
Compete on price= low $ sale
Business Solutions
Technologies
Products
Business Decision Value Chain
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Q&A
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