Web 2.0 and the SMB "Long Tail"

The chart below, from Frank Gen’s blog (he’s from IDC), superimposes key datapoints to illustrate the importance of Small to Medium size companies when it comes to employment, GDP contribution and how much $ they spend on IT. IT, when deployed properly must make a company more competitive, more responsive, more customer centric and more profitable.

The Long Tail aspect shows that the number of businesses in the SMB market is vast, distinct and traditionally doesn’t spend as much as larger companies on IT. Most IT service and solution companies see this as unattractive. They are wrong!

The key is to provide SMB’s with access to affordable services that allow customization. New IT service and solution companies need to review there business models, offerings and cost of doing business and adapt…..or die.  Using web2.0 tools and approaches to streamline selling costs while building an online community would compliment SaaS (Software as a Service) and provide remote collaboration in the areas of solution design and service deployments. Telephony, Network managment, CRM and other software and Portals are just a few areas where I see opportunity.
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