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Wednesday, April 4, 2007

Cisco Going After Small Business Market

Cisco announced at its Worldwide Partner Summit in Las Vegas that it is now going to target the small business market with a new unified communications product. The Smart Business Communications Systems is meant for businesses with under 50 employees and the company sees this sector as being a $10bn market opportunity by 2009.

Cisco hopes to sell the solution through its partner network and has also introduced
a new certification programme for small and medium-sized businesses.

According to Ann Sun, global SMB market group senior manager at Cisco: "One of the things we see is that the SMB market is highly segmented, and many do not know how this technology can help them. It is not just a solution itself, but a delivery through our channel partners."

What does Cisco need to do to win over SMBs?

Partner Strong - Most of the technical infrastructure in SMBs is setup and run by outside contractors. The Cisco partners will be key to getting this into the hands of SMBs as most small businesses do not have the technical knowledge or knowhow to do it themselves.

Make It Better - Cisco will have to prove that their system truly is better than the other alternatives. There can be big switching costs and small business owners want to focus on growing their business, not handling technology.

Offer Financing - Small businesses owners routinely have to manage their cash flow. If there is a solid financing package in place it will be a much easier financial pill to swallow.

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Name: Evan Carmichael
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