Verticals will replace SMB/enterprise segmentation December 7, 2009Posted by jonathanpenn in trends & futures, value.
As I posted earlier, it doesn’t make much sense anymore to make distinctions between SMBs and enterprises. When looking at their priorities and challenges, what they’re adopting and why they’re adopting it, there are far more similarities than differences.
Vertical or industry specialization is what’s most relevant, based on everything I see in conversations with product vendors, consultants, service providers and security practitioners. Security is becoming more of a business issue, and so quite naturally executives and business managers are increasingly involved in setting security strategy, determining solution requirements, and even selecting and approving solutions. These solutions must therefore address security in business terms and focus on solving business challenges. And the business challenges are defined by the vertical. Sometimes it’s quite clear that security vendors should look at the market through vertical glasses – especially when it comes to regulatory compliance. But it also makes sense when you look business consulting — and even IT consulting — firms are structured: they orient their services along verticals because providing business advice requires more than anything an understanding of that vertical.
SMB-enterprise distinctions will continue, as they certainly make sense from a go-to-market perspective and also because small companies need less complex and less complicated solutions. But I think we’ll see verticalization by vendors, which is now almost exclusive around go-to-market, elevate to the product/service level.