October 17, 2011

2 Min Read
Mobile SaaS Set to Boom among SMB Customers

By Dan Berthiaume

Global spending by SMBs on mobile SaaS is expected to enjoy 29.5 percent compound annual growths in the next five years, jumping from $3 billion this year to $16.6 billion in 2016, according to a new study from Strategy Analytics. On a regional basis, North America and Western Europe represent the greatest near-term SMB spending opportunity for mobile SaaS, and SMBs in North America spend twice as much on mobile SaaS as those in Western Europe.

Smartphones and wireless devices form the basis of mobility and pave the way for mobile applications such as access to company e-mail, calendars, CRM systems and databases. Strategy Analytics analysts say smartphones are becoming an increasingly vital part of the SMB communications infrastructure as more applications are developed that were traditionally only accessible via laptop computer, such as access to CRM systems. As SMBs continue to form mobility strategies, Strategy Analytics predicts they will look for ways to leverage the SaaS gains that mobility provides.

Don’t Leave Mobile SaaS to the Telcos

Strategy Analytics recommends that mobile operators take advantage of SMBs’ growing interest in mobile SaaS. But why should giant telcos have such a potentially lucrative market to themselves, especially when they typically serve the hosted technology needs of much larger customers?

MSPs with an SMB specialty have numerous advantages over telcos, including faster response time to problems, more individualized attention to clients, a better understanding of SMB culture and business practices, and a scale of operations generally more conducive to working with a smaller client.

Despite all the advantages MSPs offer compared to large wireless providers, the fact remains that unless they understand specifically how mobile SaaS can offer benefits to SMB users, they will not make the sale. Mobile SaaS is an ideal way for SMBs to extend their enterprise with minimal investment in technology infrastructure and a means of offering employees greater flexibility, which may help them compete with larger, less flexible companies who can offer higher salaries.

In addition, mobile SaaS allows SMBs to more easily integrate complex systems that were formerly the province of larger enterprises, such as CRM, into their IT and business environment.

Not that $3 billion is anything to sneeze at, but clearly the SMB mobile SaaS market isn’t set to hit its peak for a few years. Don’t be foolish enough to wait for the market to grow. Instead, be a growth driver. Promote the benefits of mobile SaaS to your SMB clients today. Even if they won’t be ready for mobile SaaS for a couple of years, they will likely remember who first told them about it.

Read more about:

Free Newsletters for the Channel
Register for Your Free Newsletter Now

You May Also Like