This presentation was delivered at the first ever Local Search Association SMB Cloud Summit in San Francisco 12.7.17. For more visit: http://bit.ly/2nGhO8s

1. The $$ Presentation

2. What’s All the
Fuss About You
Ask?

3. A Huge Driver of U.S. GDP
Assuming SMB Share of GDP has declined to 40% -
then SMBs are driving $7.4 Trillion

4. 48%
And Employment . . . U.S. Small Businesses Employee
58 million or 48% of ALL Private Sector Employees

5. What # to Use?
27.9 million
Or
5.83 million

6. 28,000,000

7. 18,000,000
These are Very Small Businesses and They
Don’t Have Employees But We Include Them as
the Secondary Addressable Market (SAM)

8. 10,000,000
This Is the Primary Addressable Market (PAM) -
Those with Employees to Pay, Transactions to
Process, Supplies to Purchase, Customers to Engage

9. The SaaS
Opportunity
Marketing and
Advertising
Operations and
Finance
Supply Chain
Human
Capital
CRM

11. The SaaS
Adoption for
the PAM
Marketing and
Advertising
Operations and
Finance Supply Chain
Human
Capital
CRM
10%
6.0
10%
6.0%
25%

12. The SaaS
Adoption for
the SAM
Marketing and
Advertising
Operations and
Finance Supply Chain
Human
Capital
CRM
5.0%
3.0%
5.0%
3.0%
12.5%

13. PAM SaaS Spend &
Opportunity
2017 2018 2019
CRM 2,400,000,000 2,880,000,000 3,456,000,000
Advertising & Marketing 720,000,000 864,000,000 1,036,800,000
Supply Chain 300,000,000 360,000,000 432,000,000
Operations and Finance (including POS) 1,800,000,000 2,160,000,000 2,592,000,000
Human Capital (Including Payroll and Recruitment) 1,440,000,000 1,728,000,000 2,073,600,000
Total 6,660,000,000 7,992,000,000 9,590,400,000
Note: does not include media spend, supply spend or transaction spend but does include subscription

14. SAM SaaS Spend &
Opportunity
Note: does not include media spend, supply spend or transaction spend but does include subscription
2017 2018 2019
CRM 1,080,000,000 1,296,000,000 1,555,200,000
Advertising & Marketing 486,000,000 583,200,000 699,840,000
Supply Chain (Increased per Amazon Survey) 270,000,000 324,000,000 388,800,000
Operations and Finance (including POS) 810,000,000 972,000,000 1,166,400,000
Human Capital (Including Payroll and Recruitment) 972,000,000 1,166,400,000 1,399,680,000
Total 3,618,000,000 4,341,600,000 5,209,920,000

15. Key
Assumptions
PAM SaaS Spend is $660 per month
SAM SaaS Spend is $410 per month
Used survey data and augmented
with observable data e.g.
- Quickbooks Online
- Amazon Prime used by SMBs
for their business
- Square adoption #s
- Microsoft 365

16. 10,000 Baby Boomers
Turn 65 EVERY DAY
Generations X, Y
and Z

17. ~$10B->$14B
So how much will SMB cloud shift deliver?

18. Even New Age
Companies are
at Risk

19. Final Thoughts

21. Over the Next
5 Years the
Changes to the
SMB Market
Will Be as
Substantive . . .
. . . as the
Smartphone’s
Impact on
Local Search

22. It’s All Up For Grabs

23. Thank You
nbpolachek@gmail.com