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April 30, 2012 Small and Medium Enterprises, a Missed Service Provider Opportunity  By Susan J. Campbell, TMCnet Contributing Editor
Service providers focused on driving a strong revenue tend to design that model around residential consumers or large enterprises. Too often, the small and medium enterprise (SME) market is overlooked. This diverse base of customers demands a differentiated and relevant experience. Service providers (SPs) able to meet the demands of this segment have the opportunity to dominate the market.
A recent Alcatel-Lucent (News  - Alert) (ALU) posting, Creating a better customer experience for small and medium enterprises explored this over sight, highlighting that SPs often view this market segment as too costly. In fact, according to Dan O’Connell with Gartner (News - Alert) , SPs have struggled to target the small and medium enterprise in part because of their higher cost structure.
These assumptions, of course, ignore the significant revenue opportunities this segment actually represents. SPs need to consider that in 2011, SMEs worldwide spent $510 billion on IT. This was a 6 percent increase year over year. It is a market that is expected to hit $544 billion by the end of 2012. In the U.S. alone, nearly $26 billion was spent just on mobile communications solutions. By 2015, the SME market in the U.S. is projected to have roughly 56.4 million subscriptions. This figure represents a 5.4 percent compound annual growth rate, and one that is outpacing the overall market... Read More
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