My colleague Manish Bahl is wrapping up a report on midmarket IT budgets and spending trends in India for the 2013-2014 fiscal year, which runs from April 1, 2013 to March 31, 2014. I analyzed the survey data for collaboration-related trends and noticed something interesting: 68% of the Indian midmarket firms (those with 400 to 2,500 employees) surveyed have already adopted or are planning to adopt software-as-a-service (SaaS) for collaboration in the next one to two years (see Figure 1). In fact, collaboration-as-a-service (CaaS) tops all categories by a considerable margin.
This data reinforces the key findings from my recently published blog post highlighting the growing importance of cloud collaboration services in Asia Pacific. While the popularity of CaaS is growing across all industries, it’s interesting to note that traditionally cloud-wary verticals, such as financial services and insurance and the public sector (including education and healthcare), are starting to warm up to cloud-based collaboration services: 80% and 67%, respectively, of the surveyed midmarket organizations in those verticals are either already using or planning to adopt CaaS over the next one to two years.
I’m currently in the process of wrapping up a report on midmarket IT budgets and spending trends in India for the 2013-2014 fiscal year (April 1, 2013 to March 31, 2014). For this report, we collected extensive data from 430 midmarket businesses (those with 400 to 2,500 employees) in the country to examine IT and business priorities among IT decision-makers. In addition to analyzing spending plans across standard IT categories (software, hardware, and services), we also analyze the likely impact on IT spending of key initiatives, including computing, mobility, and big data.
Despite increasing economic and political uncertainties in India, our survey found that midmarket companies are continuing to invest in IT to drive competitive differentiation. Our survey also signaled a changing attitude among Indian midmarket companies who are increasingly viewing IT as a means to better engage digitally enabled constituents. This is fueling a fundamental shift in the way Indian midmarket firms interact with customers. Here are some key highlights from the report:
The majority of Indian midmarket firms will increase IT spending in 2013-2014. Among all the companies surveyed, 61% of firms surveyed expect to increase their spending on IT by 5% to 10% in the current fiscal year. New IT initiatives and expansion of capacity will contribute to an increase in IT capital budgets as the current fiscal year’s budget is evenly split between new IT initiatives and expansion of existing capacity to better support growth initiatives. The need to modernize infrastructure and improve business applications to grow business will drive hardware and software spending from Indian midmarket firms.
I attended my fifth Cisco Worldwide Partner Summit in Boston the first week of June. As always, the first day’s keynote presentation by John Chambers was impressive and covered market transitions, opportunities, future big bets, and how Cisco can work better with its partners. John also stressed the need for partners to embrace change and move to a new business model.
Building on this presentation, Cisco made three key announcements at its partner summit, which I’m highlighting below because I believe they are especially important for partners that operate in Asia Pacific (AP) markets:
Cisco has committed to doubling its investment in the mid-market space globally from US$75 million to US$150 million in FY2014: Typically perceived as a large enterprise-focused company by partners and mid-sized businesses alike, Cisco’s announcement that it would double its investment in demand generation activities, building its mid-market portfolio through new products (e.g., the low-cost router developed in India) and through acquisitions (e.g., Meraki), and incentivizing sales people is very timely. With a large mid-sized business population in Asia Pacific, proactive efforts toward creating a mid-market brand will help establish Cisco more firmly in the space.
Cisco dCloud, a cloud-based demonstration service for partners, is now available: One of the major challenges for AP-based partners is their inability to invest in costly demo equipment or visit vendor demo solution centers. The availability of Cisco dCloud will not only help partners increase their chances of winning a deal, but also potentially help them reduce the sales cycle, making it a profitable deal.