SMB Product Proof [SMB Consulting Best Practices book excerpt]

Hello there folks – I am the author of the SMB Consulting Best Practices book and I like to hold virtual book readings. BTW – my SBS 2008 book is here! Long live Small Business Server!

SMB Product Proof

So in our hunt for SMB viability, you might be asking for more proof of the pudding. Perhaps you’re thinking that, if SMB is so great, why aren’t the big boys doing it more? I submit to you the following arguments, taken from a USA Today article titled “Software companies cater to small businesses in a big way” (March 10, 2003, page 6B).

·           Microsoft redeploys Orlando Ayala to head SMB. Effective July 1, 2003, Orlando Ayala (who was head of worldwide sales and market­ing) now leads the new $2 billion US SMB business group that will target retailers, manufacturers, and real estate firms that are increas­ingly using computers for customer data, payroll and accounting.

·           Microsoft expects to see its SMB revenue grow from $2 billion in 2003 to $10 billion in 2010.

·           Oracle, which has a small business suite product, sees the entire small business software market growing to $30 billion in 2003 and upwards to $46 billion in 2005.

·           Other firms catering to small businesses with specific SMB SKUs include Siebel Systems, SAP America, and PeopleSoft, according to the USA Today article.

·           Unnamed tech analysts predict “software sales for small- and me­dium-sized businesses should see double-digit growth rates for the next three years.

·           Karen Smith of Aberdeen Group is quoted as saying SMB is where the action is for ISV and solution providers because “there aren’t as many multimillion-dollar software contracts (from big companies) as there were during the tech boom a couple of years ago.”

Paul Thurrott, well respected author for Windows and .NET Magazine, reported the following from his July 2, 2003 UPDATE newsletter (http://www.winnetmag.com/Articles/Index.cfm?ArticleID=39455&pg=1&show=408)


“…small businesses are a ray of sunshine in an otherwise cloudy business environment. Although sales in most markets that invest in IT are stagnant, sales to small businesses are growing 8 percent to 10 percent annually, according to IDC, and broadband usage in small businesses is growing almost 20 percent.”

And CRMDaily.com reporter Kimberly Hill commented in her “SMBs are big spenders” article (July 1, 2003, www.newsfactor.com/perl/story/ 21832.html) that “While larger enterprises expect to increase their IT spending this year by just over 1 percent, their smaller counterparts will spend 17 percent more on IT products and services in 2003 than in 2002.” Hill attributes this information to an interview she conducted with Meredith Child of Forrester Research. This spending will primarily be on applications such as CRM and not plain old infrastructure, according to Hill.

Finally, consider reading an article from yours truly at TechRepublic (“Signs indicated that this is the year of SMB” visit www.techrepublic.com/ article.jhtml?id=r007200307 1 1gcn0 1.htm) where I recast many of the arguments in this chapter for the enterprise and Linux lovin’ crowd.

cheers….harrybbbb

Harry Brelsford, CEO at SMB Nation (www.smbnation.com)

MBA, MCSE, CNE, CLSE, CNP, MCP, MCT, SBSC (Microsoft Small Business Specialist)

PS – my Small Business Server 2008 (SBS 2008) book is now here!

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