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Higinio
Higinio
11/3/2016 11:05:55 AM
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Steel
SMEs, the unexplored market for CSPs
Small and Medium-sized Enterprises (SMEs) are defined in Europe as companies with fewer than 200 employees (in the US, they are companies below 500 employees). As a sub-set, Micro-Businesses are companies with fewer than 50 employees. SMEs extend across multiple industries and specialize in solving specific problems by providing products and services at highly competitive prices.

While consumer market growth is diminishing (Read: The future role of Telcos in ICT markets – McKinsey), a greater opportunity exists with SMEs. Most Tier 1 Telcos have now realized that by targeting SMEs, they can enhance growth and boost competitive advantage. They have made SMEs one of their top priorities...

SMEs do not behave like Enterprises. They also don't act like traditional Consumers. The pattern of SME behavior sits somewhere in between. SMEs don't require the tailor-made, designer solutions of a typical Enterprise. Yet their needs are significantly more sophisticated than those of a traditional Consumer.

In many cases SMEs, especially Micro-Businesses, are almost hidden. Since they don't need - and can't afford - a complete solution from a single CSP, they tend to obtain ICT services selectively from different service providers.

What should CSPs learn about SME buying behavior?

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