The 2011 SMB Collaboration and Communications Study surveyed more than 800 SMBs (small business is 1-99 employees; medium business is 100-999 employees) to find out how they collaborate, what tools they use and what their appetite is for integrated collaboration suites.

1. 2011 SMB Collaboration and
Communications Study
Highlights
December 2011
Sanjeev Aggarwal
Laurie McCabe
Brent Leary
Arjun Aggarwal
11/29/2011 © SMB Group and CRM Essentials 1

2. SMB Collaboration and Communication
Study Goals
The SMB Group’s 2011 SMB
Collaboration and Communication
Study examines related trends, Perceptions
and attitudes
dynamics, opportunities and challenges about
collaboration
Key triggers
among small and medium businesses, Collaboratio solutions for moving
n culture, to an
assessing: attitudes and
capabilities
integrated
collaboration
o SMB collaboration culture and practices suite
o Current and planned use of collaboration Small and
solution and services Company Medium
o Perceived benefits of collaboration solutions demographics Businesses Spending/
and impact collaboration
on solutions
o Integration of collaboration and collaboration
communication solutions with other business
applications and processes
Use/ planned Use of free
o Impact of social media and mobility on use of
collaboration
vs. fee-based
collaboration
collaboration requirements solutions solutions
o Shift from standalone collaboration and
communication solutions to integrated
collaboration suites
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3. SMB Employee Size Company Distribution
Small Business Medium Business
Respondent Breakdown Respondent Breakdown
50-99
empl., 13%
500-1,000
20-49 empl., 31%
empl., 14% 100-249
empl., 41%
1-19
250-499
empl., 73%
empl., 28%
Sample Size = 568, 1-19 empl.: 413; 20-49 empl.: 80; 50—99 empl: 75 Sample Size = 249, 100-249 empl.: 103; 250-499 empl.: 69; 500—999 empl: 77
2.) How many full-time employees, including yourself, are employed by your company (not including contractors)?
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4. SMB Top Business Challenges
Attracting new customers Reacting quickly to changing market conditions
Growing revenue Maintaining profitability
Improving cash flow Obtaining financing
Attracting & retaining quality employees Improving customer experience and retention
Improving employee productivity Effectively managing relationships with suppliers
Top challenges
Adding resources to meet market demand Streamlining business processes to be more efficient
for both SB
and MB are to:
#1: Attract
Medium
new customers
MB 41% 26% 43% 36% 23% 10% 20% 21% 29% 11% 12% 25%
Business #2: Grow
revenue
#2 #1 #3 #3: Maintain
profitability
Small
SB
Business 54% 16% 51% 46% 39% 11% 18% 19% 15%5%8% 15%
#1 #2 #3
5.) What do you view as the top 3 business challenges for your company in the next 12 months?
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5. SMB Collaboration Culture
Employee Size Matters
We recognize and reward employees for collaborative achievements more than individual ones most of the time.
We recognize and reward individual achievement more than collaborative achievements most of the time.
We recognize and reward individual and team accomplishments equally.
38%
500-1,000 empl. 29%
31%
32%
250-499 empl. 29%
39%
33%
100-249 empl. 32%
33%
27%
50-99 empl. 23%
49%
21%
20-49 empl. 25%
48%
15%
1-19 empl. 23%
48%
Sample Size = 568
Sample Size = 249
8.) Which statement best describes your company’s culture when it comes to collaboration?
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6. How Collaboration Culture Affects Corporate
Performance
Small Business Medium Business
Revenue Increase Revenue Flat Revenue Decrease
Revenue Increase Revenue Flat Revenue Decrease
44%
We recognize and reward individual 63%
28% We recognize and reward individual
and team accomplishments equally. 22%
22% and team accomplishments equally.
12%
We recognize and reward individual 51%
We recognize and reward individual 56%
achievement more than collaborative 23% achievement more than collaborative 26%
achievements most of the time.
18% achievements most of the time. 15%
We recognize and reward employees 57% 75%
We recognize and reward employees
for collaborative achievements more 25% for collaborative achievements more 13%
than individual ones most of the time. than individual ones most of the time.
13% 10%
• Businesses that reward team achievements over individual ones are
more likely to forecast revenue growth.
• The gap widens as company size increases.
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7. Reliance on and Satisfaction with Collaboration Tools
Reliance Satisfaction
Heavy reliance Moderate reliance Neutral Very Satisfied Satisfied Neutral
Little reliance No reliance Dissatisfied Very Dissatisfied
10% 7%
46% 47%
Medium Business 29% Medium Business 37%
13% 9%
2% 0%
7% 8%
31% 34%
Small Business 36% Small Business 49%
19% 7%
8% 2%
11.) How much does your company rely on collaboration tools 12.) Overall, how would you rate your company's satisfaction
to collaborate more effectively, accomplish tasks and achieve with collaboration tools to facilitate collaboration and help your
business goals? business succeed?
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8. Collaboration Budgets
Collaboration Segment Small Business Medium Business
(SB)/Year (MB)/Year
Traditional Collaboration $1K - $2.5K $25K - $49.9K
Social $500 - $1K $10K - $24.9K
Collaboration
Traditional Communications $1K - $2.5K $25K - $49.9K
Integrated Collaboration $5K - $10K $25K - $49.9K
Solution
Free vs. Fee Based Solutions Over 75% of SBs are Over 60% of MBs are
using free traditional using free traditional
collaboration tools collaboration tools
Sample Size = 413
18, 22, 26) What is your company's annual budget for traditional/Social/Communications collaboration solutions for 2011
(NOT including salaries of company staff involved)?
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9. Adoption and Plans for Integrated
Collaboration Platforms
Small Business Top “Must-haves”
Currently use an integrated collaboration suite
• Traditional: email; calendars, file storage and sharing,
contacts
Plan to use an integrated collaboration suite in the next 12 Months
• Social: social capabilities and integration, instant
No plans to use an integrated collaboration suite
messaging, online discussion forums
• Communications: Web conferencing, Internet phone
solutions
• Additional functions: integration with business
Medium apps/workflows, native support for mobile devices
28% 35% 37%
Business
MediumBusiness Top “Must-haves”
• Traditional apps: email (66%); file storage and sharing
, real-time shareable document collaboration, shared
project management, contact management
• Social: instant messaging, social capabilities and
Small Business 16% 20% 64% integration, online discussion forums
• Communications: Web conferencing, video
conferencing
• Additional functions: integration with business
apps/workflows, native support for mobile devices
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Essentials 9

10. Top 3 Collaboration Platforms Selected by SMBs
Vendor Small Business Medium Business
Microsoft 54% 52%
(BPOS,365,SharePoint)
Google Apps for Business 26% 26%
IBM (Lotus Live, Lotus 4% 15%
Software)
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11. Top Reasons to Select a Specific Integrated
Collaboration Solution
Medium Business Small Business
Easier to customize for my business 40%
30%
Lower price 39%
52%
Faster to deploy 34%
30%
Availability of local service and support 30%
21%
More positive reviews in social media 29%
22%
Stronger reputation and brand 26%
27%
Easier to use 24%
9%
Available as a "cloud" or SaaS solution 17%
15%
Stronger security and encryption 16%
21%
Better customer service and stronger service levels 14%
23%
Better reviews/ratings in technology and business publications 11%
19%
Higher ratings by industry analysts 11%
11%
Stronger customer references 9%
19%
Other 0%
2%
• SB top reasons: lower price, easier to customize, faster to deploy.
• MB top reasons: easier to customize, lower price, faster to deploy.
35.) Apart from solution capabilities, what were the top 3 reasons that influenced you to select this solution?
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12. Top Reasons for No Plans to Use an
Integrated Collaboration Platform
SB
• 65% think they
People feel that what are doing works well enough Difficult to determine what we need in an integr. collabr. suite
have too few
employees to make
Difficult to compare different integr. collabr. offerings Deciding who should be involved in the selection process
it worthwhile to
Had tried a collaboration suite before, but it didn't work out Lack of time to evaluate and try different solutions
adopt an
User resistance to learning something new Difficult to migrate from current solutions integrated suite.
Too expensive Too few employees to make it worthwhile • 48% think its too
Other (list) expensive and
40% think that
what they’re doing
works well enough.
MB 39% 20% 8%3%
5% 26% 13% 18% 50% 27% 7%
MB
• 50% think that an
integrated suite is
too expensive for
SB 40% 18% 7%5%4% 21% 12% 9% 48% 65% 10% their needs.
• 39% think that
what they’re
doing works well
enough.
45.) What are the top 3 reasons that your company is not using/planning to use an integrated collaboration platform?
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13. Segmentation Highlights
Collaboration Culture is a Key Segmentation Variable
SB MB
• 13% more likely to be • 12% more likely to be
forecasting revenue growth forecasting revenue growth
than those that reward equally than those that reward equally
and 6% more than those that and 19% more than those that
reward Individuals more reward Individuals more
• 7% more likely to be • 22% more likely to be
satisfied with achieving satisfied with achieving
business goals than those business goals than those that
that reward equally and 10% reward equally and 38% more
more than those that reward than those that reward
Individuals more Individuals more
• 6% more likely to be • 21% more likely to be
satisfied with collaboration satisfied with collaboration
tools than those that reward tools than those that reward
equally and 10% more than equally and 35% more than
those that reward Individuals those that reward Individuals
more more
• 14% more likely to • 20% more likely to adopt/plan
adopt/plan to adopt an to adopt an Integrated
Integrated collaboration collaboration platform than
platformthan those that those that reward equally and
reward equally and 6% more 6% more than those that reward
than those that reward Individuals more
Individuals more • Spend 2-3X more than on
• Spend 3-4X more than on collaboration solutions than
collaboration solutions than those that reward equally and
those that reward equally and 1.5-2X more than those that
2-2.5X more than those that reward Individuals more
reward Individuals more
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14. Methodology
• Web-based survey
• Data collected in July 2011
• Sample selection: Random sample of small and medium businesses across
18 different industries and non-profits
• 55 questions
• 817 respondents/completed interviews covering the four segments:
• Very Small Business (1-19 employees)
• Small business (20-99 employees)
• Medium business (100-249 employees, 250-499 employees)
• Mid-market business (500 to 999 employees)
• SMB survey respondents are decision-makers and influencers for
collaboration and related solution decisions in their business
• The survey is intended to provide directional guidance to solution providers
as they develop their go-to-market strategies and messaging
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15. Definitions Used For This Study
• Traditional collaboration tools: Company/team oriented collaboration tools such as
email, calendar, contact management, document sharing, project management
systems, conferencing, etc.
• Social media collaboration tools: Social media oriented collaboration tools such as
Twitter, YouTube, social bookmarking, blogging, Facebook, Wikis, etc.
• Integrated collaboration platform: An integrated set of tools that address several
collaboration needs. Not every collaboration platform includes the same
capabilities, but most provide a blend of traditional and social media collaboration
solutions. Some also include productivity solutions (such as word
processing, spreadsheets, presentation software) and/or voice/telephony
communications solutions. Examples include: Google Apps for Business, Microsoft
Office 365, IBM LotusLive, HyperOffice, etc.
• On premise solutions: Your company buys, installs, runs and manages software on
your own systems and servers.
• Software-as-a-service (SaaS) or "cloud" solutions: Your company accesses and uses
software delivered over the Internet via a browser. Users pay a monthly
subscription fee to use these solutions.
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