the opportunity for national brands in smb technical ... assoc... · the opportunity for national...
TRANSCRIPT
The Opportunity for National Brands in SMB Technical Support Services
A Parks Associates white paper developed for PlumChoice
2
Understanding the Small and Medium-sized Business Market
Sizing the Market and Technology in the SMB Environment
According to the U.S. Census Bureau and Parks Associates’ estimates, there are roughly 5.7 million U.S. businesses with 1-99
employees. Since 1998, the number of SMBs has grown, on average, 1-2% per year. Together, these firms have an annual
payroll of over $1.3 trillion.
The average SMB uses nearly ten computers, split between desktops and laptops. After adding in netbooks and tablets,
the average number of computer “workstations” per business is around 11, with roughly three printers per business.
Technology in the SMB Environment(Average Number of Products in Use, Millions)
Source: SMB Demand for Technical Support Services© 2011 Parks Associates
8
4
0Desktop
ComputersMobile Phone
Handsets
Laptop Computers
Printers Scanners Fax Machines
Netbook Computers
Projectors Tablets
Current and Future Expenditures
Although current expenditures for ongoing and per-incident technical support are a relatively low portion of spending for IT
equipment and services, indications are positive for increased spending on technical support services. The size of the small
or medium business in terms of employees is today a chief indicator of the willingness to increase investment in support
services. As the technology environment continues to increase and diversify across different sizes of businesses, frustrations
with technology complexity and business owners’ desire to prioritize business activities—as opposed to technology
management—will drive an increase in outsourced technology support services.
3
www.parksassociates.com | All rights reserved.
The Connected TV and Video Experience: Recommendations, Search, and the User Interface | © 2010 Parks Associates
IT Spending
Source: SMB Demand for Technical Support Services© 2011 Parks Associates
30%
15%
0%
Perc
enta
ge o
f U.S
. SM
Bs (%
)
IT support sta� Warranties/service plans Ongoing support Per-incident support
Increases in Tech Support Spending, Future Intentions
All SMBs
1-10 employees
11-20 employees
21-50 employees
51-99 employees
Average Annual Amount Spenton IT Equipment and Services
(Average Expenditure, in U.S. dollars)
Source: SMB Demand for Technical Support Services© 2011 Parks Associates
$1,600
$800
$0Communication
servicesIT equipment Software Mobile/wireless
phone issuesOngoing support
contracts from outside IT �rms
Warranties/service plans
Per-incidentsupport from
outside IT �rms
Mea
n A
mou
nt S
pent
($)
The average number of computer “workstations” per SMB is around 11
4
The Technical Support Landscape
There was no single third-
party brand that could inte-
grate technical support, data
services, and communications
at a nationwide level until
AT&T launched its Tech
Support 360 service in 2008.
This offering has changed the
landscape of SMB technical
support services as it is na-
tional in its reach, it offers a full
suite of support services, and
it is not limited to supporting
only certain IT brands.
Another key factor in AT&T’s
nationwide rollout is the
robust service offerings that
it can bring to the SMB environment. Tech Support 360
goes beyond a computer “break/fix” service to include
comprehensive SMB tech support services. These include
both proactive and as-needed support, provided both
remotely and on-site. AT&T recently added Server Support
into its mix of offerings, which monitors servers, applications,
the office network, and Internet connectivity, plus areas
such as firewalls, switches, and routers.
Remote diagnostics, monitoring, and troubleshooting ca-
pabilities are critical components in delivering SMB support.
The most-critical need for SMB IT managers is to resolve
technology problems as quickly as possible. Remote ser-
vices provide this speed and effectiveness, allowing tech
support personnel to quickly connect to, diagnose, trou-
bleshoot, and resolve the majority of problems without the
need for the SMB to wait for a technician to arrive on-site.
Two key trends are emerging from SMB support offerings:
Source: SMB Demand for Technical Support Services© 2011 Parks Associates
Server problems
Internet access problems
Setting up/troubleshooting company mobile phones
Networking problems
Routine maintenance
Training for newsoftware & hardware
Computer malfunctions
Setting up PCs, email,etc. for new users
Problems with peripherals
Setup of new PCs, software, hardware or peripherals
Percentage Indicating Remote as Preferred (%)
For What Services do SMBs Prefer Remote Tech Support?(Among SMBs)
0% 20% 40%
1. Greater flexibility in how SMBs use e-mail, applications, database, and servers (for example, setting up physical servers on-site or allowing the support provider to host them in an off-site environment)
2. Backup moving from per-desktop or per-server file recovery to a more comprehensive offering that can include real-time virtualization and restoration in the event of a disaster (such as a server crash or a natural disaster)
5
www.parksassociates.com | All rights reserved.
The Connected TV and Video Experience: Recommendations, Search, and the User Interface | © 2010 Parks Associates
Tech Support Needs
Significant percentages of SMBs have used professional
technical support services for a variety of issues, notably
for problems related to servers, networking, and
computers. SMBs are most likely to consider support for
these three areas, but they also are interested in support
for additional products including peripherals and mobile
phones. In addition to demand for as-needed support
for both products and services, there is also interest in
ongoing care such as routine computer maintenance and
non-troubleshooting services such as training for software
and hardware.
Among SMBs that have used professional technical
support services previously, they are highly satisfied with
the courtesy and professionalism of the tech support
agent(s) who provided the assistance. Where SMB technical
support services can improve are areas such as the initial
response time, complete resolution of the problem, and
the time it took to resolve the issue. Leveraging remote
access solutions will allow SMB support providers to raise
customer satisfaction with faster response times and
more convenience to the business, which will not have to
wait for a technician to arrive on-site or have to ship its IT
equipment to a depot or repair center.
The use of and interest in professional support services correlate to the current technology challenges facing SMBs
today. These businesses are more likely to face problems with Internet access, peripherals, and computer malfunctions.
Interestingly, although the percentage of SMBs experiencing problems with mobile phones is relatively small, IT managers
report significant hours of lost time per month because of these issues. As smartphone and tablet use continues to grow
in the SMB environment, a technical support provider will need the expertise and capabilities—including remote access to
handsets—to respond appropriately to these challenges.
Source: SMB Demand for Technical Support Services© 2011 Parks Associates
SMBs and Professional Tech Support
Have Used Tech Support
Likely to Use Tech Support40%
20%
0%
Perc
enta
ge o
f U.S
. SM
Bs (%
)
Server problems
Networking problems
Computer malfunctions
Internet access problems
Set up PCs/e-mail for new users
Problems with peripherals
Software/hardware training
Mobile phone issues
Routine computer maintenance
Leveraging remote access solutions will allow SMB support providers to raise customer satisfaction
6
Tech Support Needs
Between the time spent on the part of the
IT manager resolving these issues and the
amount of lost productivity experienced
by employees, there are dozens of hours
per month at stake in addressing technical
issues. An important marketing message
from support providers to the SMB
community should be in promoting how
professional care can assist businesses in
recapturing time for building a business
and serving customers.
The notion of recurring care strongly reso-
nates among SMBs. The value of ongoing
care, preventative maintenance, and opti-
mization of systems—not to mention as-
needed technology consulting services—
will grow as SMB technology decision-
makers recognize the need for proactive
care. These types of services also become
more attractive when they are bundled
with existing services that an SMB uses al-
ready. AT&T’s Tech Support 360 is a good
example of a program that can be tied
with communications and data services.
The market opportunity for technical sup-
port subscriptions is significant as 85% of
SMBs do not currently have an ongoing
tech support relationship.
Source: SMB Demand for Technical Support Services© 2011 Parks Associates
80%
40%
0%
10
6
0
Hou
rs o
f los
t pro
duct
ivity
, per
mon
th (#
)
Percentage of U.S. SM
Bs (%)
Routine computer maintenance
Internet access problems
Problems with peripherals
Computer malfunctions
Networking problems
Set up PCs/e-mail for new users
Server problems
Set up new software/hardware/peripherals
Software/hardware training
Mobile phone issues
Frequency of IT Problems and Lost Productivity(Among SMBs)
Hours of lost productivity
Percentage of SMBs
U.S. SMBs with Current Professional Tech Support Service
Source: SMB Demand for Technical Support Services© 2011 Parks Associates
80%
40%
0%
All SMBs 1 - 10employees
11 - 20employees
21 - 50employees
51 - 99employees
7
www.parksassociates.com | All rights reserved.
The Connected TV and Video Experience: Recommendations, Search, and the User Interface | © 2010 Parks Associates
Marketing and Promoting Technology Support Services
Companies seeking to establish a foothold in IT support services for SMBs need to offer support across a wide range of
products and services—servers to smartphones, workstations to tablets. Second, they must offer these support services in a
way that is timely and convenient to their customers. Therefore, remote technology support services are critical in allowing
technology support companies to be more responsive and comprehensive in their offerings, from timely response times
to offering proactive care such as computer tune-ups.
Source: SMB Demand for Technical Support Services© 2011 Parks Associates
The speed with whichproblems are resolved
The ability tounderstand technicians
Ability to have a technician on-site within a day
Ability to have a technician access my equipment remotely
Ability to proactivelyprevent IT problems
Company is one we already use for equipment/other services
The price of the service
Ability to o�er o�site/hosted storage
Multiple options forsubmitting a work order
Ability to keep service on retainer and pay them as needed
Flexible payment terms
Importance of Technology Support Service Characteristics(Among SMBs)
0% 40% 80%
The ability by a service to offer remote support rates high among SMB IT decision-makers, as is the ability of a company to
offer communications or data services along with the support services. The ability by a company such as AT&T or another
broadband/communications provider to bundle support with core offerings is an important selling point for a carrier in
this business, making it highly likely that additional service providers will enter the SMB support space.
Providing timely and comprehensive support is the highest-valued characteristic of a support provider
8
Influences
Source: SMB Demand for Technical Support Services© 2011 Parks Associates
Recommendations from other businesses of similar size
Recommendations from service providers with whom we
currently work
Recommendations from outside, IT consultants
Recommendations from warranty support companies with whom
we work
Recommendations from friends or family members
Recommendations from company employees
Recommendations from equipment manufacturers with
whom we work
Tech support forums/crowd-sourcing
Recommendations made from professional networking sites
In�uences for purchasing technology support services(Among SMBs)
0% 25% 50%
SMBs cite recommendations from peers and their existing
service providers as the chief influencers for choosing a
technology support service. To educate the SMB commu-
nity about the benefits of using professional outsourced
technical support services, providers should promote the
work that they are already doing in this space and use
current customers as case studies. Important informa-
tion to disseminate includes cost comparisons between
external support services vs. full- or part-time internal hires
(or no support at all), discussions from current customers
about time savings in using external resources, and in-
formation that targets a critical SMB need—does using
outside professional support services allow SMBs to focus
on what really matters: acquiring and serving customers?
In addition to using resources such as peers, service
providers, professional networking websites, and
local entities aimed at supporting the small-business
community (chambers of commerce, etc.), support
providers need to build packages of support services that
are easy to understand. Clear information about what a
support subscription includes in terms of the types and
numbers of IT equipment serviced, processes in deliver-
ing services, and pricing options is important for SMBs
when judging the value and affordability of different
plans. If price breaks are offered for bundling support with
the purchase of IT equipment or with a subscription to
specific communications or data services, these benefits
need to be clearly explained.
9
www.parksassociates.com | All rights reserved.
The Connected TV and Video Experience: Recommendations, Search, and the User Interface | © 2010 Parks Associates
U.S. market revenues for SMB technical support services will grow from $9.6 billion in 2011 to $20.1 billion in 2015.
The Market Opportunity
SMB Tech Support Services, Annual Revenue(U.S. Revenues, in Millions)
Source: Opportunities for SMB Support Services© 2011 Parks Associates
$25,000
$0
2010 2011 2012 2013 2014 2015
Mill
ions
of D
olla
rs S
pent
($M
)
Backup
Computer Set-up
Server Support
Support Subscriptions
Desktop Support
The individual software, hardware, and services that constitute SMB support
services are extremely broad and can encompass data and website hosting,
server maintenance, communications systems, service level agreements
(SLAs), and networking support. Because Parks Associates’ research focuses
on computer systems and subscription services, forecasts include the
following areas:
• Computerset-upservices;
• Computertroubleshooting;
• Technicalsupportserviceplans;
• Serversupport;and
• Backup.
Projections for market revenues begin with the current use of and interest in
these services, all obtained from the Parks Associates survey SMB Demand for
Technical Support Services. These figures are then applied to projections for the
growth of small businesses, computer sales, and server usage.
10
Key Takeaways
SMB IT decision-makers will rely on their peers and
information such as case studies to make decisions
about implementing outsourced technical support.
Companies servicing the SMB market need to have
marketing material that emphasizes success stories and
explains in clear language the time and cost benefits of
outsourcing technical support. Within the cost estimates
should be explanations of both time and cost benefits
to using external support entities—including faster
deployment of services and lower development costs.
Data backup/hosting is an opportunity. Today, fewer
than 20% of U.S. SMBs use hosted storage. However,
marketing hosted storage for convenience (mobile access,
collaboration, etc.) and disaster preparedness will make
this service more enticing to businesses.
Emphasizenetworkandserver support services. SMBs
looking for professional support will likely be wrestling
with a plethora of server and network issues. Service
providers should cater to this core need and use marketing
and sales material to emphasize their networking and
server strengths.
ITsupport includesmorethanserversandcomputers.
A successful IT support offering will address care to not
only fixed equipment such as computers and servers but
mobile devices as well. As indicated by Parks Associates’
survey, SMB IT managers find that mobile phone trouble-
shooting is a significant drain on their time and employee
productivity. As growing numbers of SMBs incorporate
smartphones and tablets into their IT environment, they
will expect technical support for these devices.
Work with internal IT managers, not against them.An
outside provider positioning itself as a comprehensive IT
support solution may generate resistance from internal IT
managers concerned about loss of influence or even job se-
curity. Offering services that enhance and facilitate (rather
than replace) their jobs is a smart marketing approach.
Comprehensive care services will be critical. Many
SMBs are seeking technical support service offerings that
go beyond one-off computer “break/fix” services; they
are interested in comprehensive offerings for server and
mobile device support, hosted storage, and peripheral
support. Companies addressing this market will need to
put together holistic care services and offer flexible pric-
ing that takes into account the budget limitations and
unique requirements of smaller firms in addition to sub-
scription-based pricing that includes unlimited remote
and on-site support.
As more SMBs use smartphones and tablets, they will expect technical support for these mobile devices.
11
www.parksassociates.com | All rights reserved.
The Connected TV and Video Experience: Recommendations, Search, and the User Interface | © 2010 Parks Associates
Attribution: Authored by Kurt Scherf, Vice President & Principal Analyst, Parks Associates Published by Parks Associates © 2011 Parks Associates
Dallas, Texas
All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in
writing from the publisher. Printed in the United States of America.
Disclaimer: Parks Associates and PlumChoice have made every reasonable effort to ensure that all information in this report is correct. We assume no responsibility for any inadvertent errors.
WP09-092011-2
ABOUT PLUMCHOICE
PlumChoice is setting a new standard of customer care with its Service
2.0 approach that has reinvented the way technology care is provided to
connected homes and small businesses. As the largest independent technology care provider in the industry, PlumChoice
pioneered the remote technical services business in 2001, providing 24x7 online repair and assistance for digital devices
through local industry-certified agents. With the addition of its patented SAFElink™ service relationship platform, PlumChoice
now offers a fully integrated and highly secure solution for service providers and other business partners, working under
their brand names to provide them with new sources of revenue and cost reduction.
PlumChoice’s services can be delivered remotely or on-site as a one-time incident, bundled with products/services, or
subscriber-based solution. Covered devices include PCs and Macintosh® computers, laptops, and mobile phones, TVs and
home theater systems, routers and servers, networks, security systems, consumer electronics, software, peripherals, iPhones®
and other devices.
www.plumchoice.com | 1.866.811.3321 | [email protected]
ABOUT PARKS ASSOCIATES
Parks Associates is an internationally recognized market research and consulting company
specializing in emerging consumer technology products and services. Founded in 1986, Parks
Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports,
primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.
The company’s expertise includes new media, digital entertainment and gaming, home networks, Internet and television
services, digital health, mobile applications and services, consumer electronics, energy management, and home control
systems and security.
www.parksassociates.com | 972.490.1113 | [email protected]
This white paper was commissioned by PlumChoice. Research results came from SMB Demand for Technical Support Services, a U.S. survey fielded in December 2010 of several hundred owners, managers, and IT support decision makers from small and medium businesses across a number of industries. For further information on this study or help to bring your National SMB Tech Support brand to market, contact PlumChoice at 1.866.811.3321 or [email protected].
INDUSTRIESNew Media & AdvertisingDigital Entertainment & GamingConsumer ElectronicsHome NetworksInternet & Television ServicesSoftware & MiddlewareDigital HealthMobile Applications & ServicesHome Control Systems & SecurityEnergy Management
CATEGORIESConsumer ResearchIndustry & Competitive AnalysisFocus GroupsForecasting & Distribution AnalysisStrategic Seminars & WorkshopsExecutive ConferencesCustom Projects & Consulting
parksassociates.com
VISIT USonline at…
Consumer& Industry
E X P E R T S
WHY PARKSASSOCIATES?
We help our clients grow through strategic
consulting and full-fledged research solutions, enabling a greater understanding of emerging competition and
new business opportunities.
While many research firms provide excellent cross-sections of market data,
Parks Associates provides in-depth focus on digital
living and consumer technologies.
For companies seeking a deep understanding
of consumer technology adoption, Parks Associates
is the solution.