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Technology
vendors assumptions about the IT services preferences
of large enterprises cannot be transferred to midsize
businesses (MSBs). MSBs are a lucrative market with
unique characteristics, needs and preferences that
do not require IT services providers to hold market
leadership, best-of-breed competencies or global delivery
models. For IT services and product vendors trying
to maximize their IT services presence in the midmarket,
we recommend:
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You
recognize that size and global reach do not provide
a primary advantage among MSBs. Though touting
market leadership and a Fortune 500 client base
may indicate vendor viability, value propositions
and messaging must be altered significantly to
reflect a local flavor, demonstrating experience
within the target market. |
• |
You enable MSBs to optimize their current environments
rather than propose to transform them. Positioning
engagements that demonstrate short-term (within
6 months) returns, in manageable phases, both
from a time and cost perspective will see far
more success than multiyear, complex projects.
Forecasting how incremental investments can improve
established investments is a must for consideration
among MSBs. |
• |
Understand the educational component required
when selling services that are not mainstream.
Given that MSB technology penetration lags that
of large enterprises by two or three years, vendors
must recognize where this market is at in terms
of readiness to adopt a given solution. |
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Build and leverage established relationships.
IT services vendors new to the midmarket or a
given region or vertical market must establish
a local presence by building relationships with
industry associations and established VARs. |
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Harness the power of peer referrals. “Referenceability”
must be built among a given market segment defined
by enterprise size, vertical and region. Using
testimonials and case studies within a given industry
of a similar size certainly assists with spreading
the word. |
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Note
the nuances among MSB segments and maintain a
vertical-market focus. This means realizing the
drivers and inhibitors within a given microvertical
vs. an industry in general – for example,
community and local banks vs. financial services.
For those with a more horizontal offering, vertical
specificity can be achieved through partnership
arrangements. |
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Demonstrate the ability to deliver business value.
When positioning solutions to CIOs, vendors should
assist them in the development of business cases.
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Gain
strategic midmarket intelligence at Midsize
Enterprise Summit. For details, call toll-free
877-619-7956, x493.
Reference
Research Note
SMB IT Services Buying Trends and Preferences,
2003
Publication Date: September 16, 2003
Author: Mika Yamamoto Krammer
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