AP012 Industry Session
Emma Tomlin
BDM – Cloud Partnerships

Trends Driving IT

Consumerisation of IT

Over eight out of ten Australia Small
Businesses use social media for business purposes, with Facebook being the most popular site used
Source: AMI - Australia Small Business Market Opportunity Assessment 2012

Workforce Evolution

Generation Y
A New Type of Worker
Little Commitment to employer
(a job isn’t for life)
High Turnover
Latest Technology
A New Way of Working
Manage to outcomes not processes
Expect rapid feedback and on the spot rewards
Functional Teams
Open Dialog
Flexible Time
Virtualised Support

Change Brings…..

A not so small opportunity
Source: AMI - Australia Small Business Market Opportunity Assessment 2012

The ICT Spend by 2015
ICT Spend & Growth in Australia (2011, 2015)
$4
$4
$3
$3
$2
$2
$1
$1
$0
0,0% 2,0%
Bubble Size = 2015 ICT Spend
$4,4
Telecom Svcs
4,0%
Internet
$2,0
Computing
6,0% 8,0%
5-Year CAGR
$4,1
$3,6
Networking
$0,3
IT Services
Software
$1,3
$0,7
Storage
$0,6
$0,3
10,0% 12,0%
Telecom Eqpt
Security
14,0%
Source: AMI - Australia Small Business Market Opportunity Assessment 2012

Size Matters
5-9
16%
10-19
7%
20-49
4%
50-99
1%
1-4
72%
Source: AMI - Australia Small Business Market Opportunity Assessment 2012

Lets get Vertical
AMTUC = Agriculture, Mining, Transportation, Utilities, Construction
FIRE = Finance, Insurance, Real Estate
Source: AMI - Australia Small Business Market Opportunity Assessment 2012

The Average SMB
AMTUC = Agriculture, Mining, Transportation, Utilities, Construction
FIRE = Finance, Insurance, Real Estate
Source: AMI - Australia Small Business Market Opportunity Assessment 2012

The Average Annual Spend on ICT
Source: AMI - Australia Small Business Market Opportunity Assessment 2012

Top Demographics
Source: AMI - Australia Small Business Market Opportunity Assessment 2012

Who makes decisions on IT?
Source: AMI - Australia Small Business Market Opportunity Assessment 2012

Top Attitudes
ENTERPISE SOLUTIONS
3 out of 4 Small Businesses feel that its strategically important to use enterprise solutions
WORD OF MOUTH
Referral is the number one source of information Australian small
Businesses cite when making technology purchase decisions
SOCIAL MEDIA
30-40% use Internet, Websites and
Social Media as a source for making technology decisions

Buyer Behaviour
Source: AMI - Australia Small Business Market Opportunity Assessment 2012
25%-35% are interested in using services in future,

Cloud Opportunity use an instant messaging solution today
Source: AMI - Australia Small Business Market Opportunity Assessment 2012 and AMI Cloud Playbook

Australia SMB SaaS Opportunity Breakout
SaaS Value & Growth in Australia (2010, 2015)
$45
$40
$35
$30
$25
$20
$15
$10
$5
$0
10%
SaaS Email SaaS CRM
Note: Bubble size represents market value in 2015
SaaS Payroll
SaaS ERP
SaaS Project Mgt.
SaaS
Accounting
SaaS HR
15% 20% 25%
5-Year CAGR
SaaS BI
Other SaaS
30%
SaaS
Productivity
35% 40%
Source: AMI - Australia Small Business Market Opportunity Assessment 2012 and AMI Cloud Playbook

Hosting and Mobility
Source: AMI - Australia Small Business Market Opportunity Assessment 2012 and AMI Cloud Playbook

Services and Devices
Source: AMI - Australia Small Business Market Opportunity Assessment 2012 and AMI Cloud Playbook

Email Usage
Microsoft Exchange/Outlook
IBM Lotus Notes/Domino
Other On-Premise
Google Gmail
Yahoo Mail
Hotmail/MSN
Hosted Exchange/Exchange Online
Other
0,1%
4%
10%
3%
1%
1%
17%
Source: AMI - Australia Small Business Market Opportunity Assessment 2012 and AMI Cloud Playbook
65%

The Average Annual Spend on SaaS Cloud
Services
Source: AMI - Australia Small Business Market Opportunity Assessment 2012 and AMI Cloud Playbook

Future level of interest - SaaS
Accounting/ financials
Payroll
HR admin & benefits mgt.
CRM
ERP
Project management
Business intelligence/ analytics
9% 20%
15%
16%
23%
17%
20%
17%
Interested Neutral
18%
14%
16%
25%
26%
25%
Source: AMI - Australia Small Business Market Opportunity Assessment 2012 and AMI Cloud Playbook

Current Usage - IaaS
Servers
Virus protection, spam filtering and/or other security solutions
Data storage/ back-up
15%
12%
Source: AMI - Australia Small Business Market Opportunity Assessment 2012 and AMI Cloud Playbook
25%

Future level of interest - Iaas
Servers 13%
Virus protection, spam filtering and/or other security solutions
17%
27%
39%
Data storage/ back-up 25% 26%
Interested Neutral
Source: AMI - Australia Small Business Market Opportunity Assessment 2012 and AMI Cloud Playbook

Mobility Purchase Plans
Total
0.9
Avg #
1-4
0.6
5-9
1.1
10-19 20-49 50-99
1.2
2.6
3.1
Avg # 0.2
0.2
0.3
0.2
0.7
1.0
Avg # 0.7
0.5
0.9
1.0
2.0
2.2
Source: AMI - Australia Small Business Market Opportunity Assessment 2012 and AMI Cloud Playbook

Mobile Brands
Smartphones
Blackberry/RIM
Apple
HTC
Google Nexus
Samsung
Nokia
LG
Sony Ericsson
HP
Motorola
Huawei
5%
5%
5%
2%
2%
0,5%
0,3%
0,2%
0,02%
59%
50%
Tablets
Apple
Acer
Other
HP/Palm
Sony
Samsung
Toshiba
Blackberry/RIM
HTC
LG
Lenovo
Asus
Motorola
Viewsonic
4%
2%
2%
1%
1%
1%
0,5%
0,2%
18%
12%
11%
9%
4%
Source: AMI - Australia Small Business Market Opportunity Assessment 2012 and AMI Cloud Playbook
60%

Australia SMB: Highest Potential Revenue-Generating
Productivity/Collaboration Suite Bundles
Productivity/Collaboration Suite Market Impact
Hosted business email
Online storage capacity
Instant messaging and
PC-to-PC calling
Web conferencing
(Document
Collaboration)
ANY Remotely Managed
Service
Purchase
Probability
(% of Firms)
# of SMBs
Likely to
Purchase
(M)
Projected
Bundle
Annual
Revenues
($M)
$534 M $5/$3 per user per month
$5/$3 per user per month
$5/$3 per user per month
$5/$3 per user per month
$38 per device/unit per month
$38 per device/unit per month
$38 per device/unit per month
$38 per device/unit per month
39%
44%
41%
35%
0.22 M
0.03 M
0.01 M
0.001 M
$459 M
$207 M
$55 M
All market segments showing strong purchase probabilities from productivity/collaboration suite plus any remotely managed service bundle.
The largest revenue opportunities exist in the smaller businesses, due to market sizing.
This bundle may be especially attractive to businesses with mobile or remote workers.
Source: AMI - Australia Small Business Market Opportunity Assessment 2012 and AMI Cloud Playbook

Australia SMB: Highest Potential Revenue-
Generating UC Bundles
Unified Communications (UC) Market Impact
Instant
Messaging
Audio conferencing bridges
Video conferencing
Web conferencing
Hosted
VoIP
ANY Remotely
Managed Service
Purchase
Probability
(% of Firms)
# of SMBs
Likely to
Purchase
(M)
Projected Bundle
Annual Revenues
($M)
Included
Included
Included
Included
$12 per seat per month
$12 per seat per month
$12 per seat per month
$12 per seat per month
$38 per device/unit per month
$38 per device/unit per month
$38 per device/unit per month
$38 per device/unit per month
33%
35%
34%
19%
0.19 M
0.02 M
0.004 M
0.0003 M
$512 M
$429 M
$224 M
$47 M
UC bundles including IM, conferencing, hosted VOIP, and any remotely managed service allow SMBs to increase productivity of mobile and remote workers, while decreasing costs on travel, and attract interest across all employee-size segments.
Collectively, firms with less than 50 employees represent nearly $1B of revenue opportunity.
Source: AMI - Australia Small Business Market Opportunity Assessment 2012 and AMI Cloud Playbook

Cloud Profile <10 Employee Firms
Source: AMI - Australia Small Business Market Opportunity Assessment 2012 and AMI Cloud Playbook

Cloud Profile 10-49 Employee Firms
Source: AMI - Australia Small Business Market Opportunity Assessment 2012 and AMI Cloud Playbook

Cloud Profile 50-249 Employee Firms
Source: AMI - Australia Small Business Market Opportunity Assessment 2012 and AMI Cloud Playbook

Summary
• $17BN Opportunity – ICT spend by SMB’s in Australia by 2015
• Scale through breadth – Almost three quarters of SMB’s are sub 5 users
• Get Vertical - Agriculture, Mining, Transportation, Utilities, Construction is the largest vertical within SMB’s – find out their buying needs
• Decision Making – 57% of decisions on IT are made by those who don’t know IT – speak to your audience in a language they understand.
• Leverage you existing customers – Referral is the number one source cited by SMB’s when making technology decisions – turn your customers into your extended sales force.
• $3.2BN Cloud Opportunity – Cloud services for SMB’s in Australia by 2015 – cloud is a real revenue opporutnity
• Cloud is mainstream – 31% of SMB’s use hosted email, 57% use instant messaging services.
• Service aggregation – leverage the channel for hardware, smartphones, connectivity – become THE supplier to your customer
• Profiling and bundling is key – one size doesn’t fit all
*Includes web hosting

Jackilyn Almazan JAlmazan@ami-partners.com
Tel: +65 6220 5535
In-depth market reports studied for this presentation -
• 2011/12 – Australian Small Business Market Opportunity Assessment
• 2010-11 Australia SMB Cloud and ICT Overview
• 2010-11 Australia SMB Cloud Strategic & Tactical Playbook

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