Editor’s Note: Welcome to our weekly Reality Check column where we let C-level executives from across the mobile industry to provide their unique insights into the marketplace.
About one billion people are employed by small- and medium-sized businesses around the world. At first glance, it seems unlikely these SMBs would have much in common; they cover all sorts of industries and face a range of different challenges. But, they do share one key trait: They are all very, very busy.
Given this similarity, many SMBs are taking the same approach to figuring out how to do more with less time. A growing number of them are turning to innovative cloud applications that put the power of enterprise-grade software in their hands. So many, in fact, that analyst firm Gartner predicts the small business cloud market will exceed $13 billion by 2014.
With telecom revenue from voice and other traditional sources stagnating, and growth in data services leading to lower margins, that $13 billion represents a valuable opportunity for service providers. By offering a platform for SMBs to buy and manage cloud-based apps, telecom companies can edge out competitors and take a sizable chunk of that potential revenue.
Despite the multi-billion dollar opportunity, many service providers have overlooked the opportunity that awaits in the application marketplace space – especially the opportunity in the SMB app market rather than consumer mobile apps. To tap into the lucrative, yet sometimes elusive SMB market, telecom companies must come up with strategies to meet the unique needs of small businesses. Here are three best practices that are a great place to start:
1. SMBs are the new consumers, just don’t treat them that way.
Small businesses love apps, but they probably aren’t looking for the hottest bestseller. SMBs want to see a return on investment from their technology investments – fast – so they will be on the lookout for apps that do just that. Offer solutions that can deliver value quickly.
2. One size does not fit all; bundle accordingly.
It’s already been said, but it bears repeating: SMBs are diverse. From salons and restaurants, to law firms and financial advisors, each business has its own specific needs. To accommodate this variety, offer the option of bundling apps with core traditional telco services like Internet or office networking systems. Bundle apps to target particular verticals and segments. Even though each company is different, app bundles create overlapping value that increases their appeal to more SMBs.
3. Give good advice, and you shall receive.
Telecom companies can be app providers of choice for SMBs, but small businesses need education and support before moving to the cloud. Simply listing applications and hoping SMBs buy them won’t cut it. Instead, offer information on how to select, integrate, and manage apps. This will build trust with SMBs, and help you become an indispensable part of their business operations.
SMB employees will always need to wear multiple hats – accountant, IT manager and marketer – just to name a few, but cloud apps can help make a business much easier to manage. Small businesses are hungry for simple ways to find and use applications like these. To fill this need, telecom companies can play a valuable role as both trusted cloud advisors and application providers. With the best practices outlined above, you’ll be on your way to seizing the SMB cloud opportunity.
Daniel Saks is the Co-CEO of AppDirect, which he founded in 2009 with Nicolas Desmarais. Saks plays a key role in the growth and development of AppDirect, from attracting a leading team, to nurturing relationships with customers and partners. Saks received a B.A. in political science from McGill University then studied finance and accounting at Harvard. Prior to AppDirect, Saks worked at Viant Capital, a boutique tech investment bank.
