Gartner Research

Market Trends: CSPs Leverage SaaS Marketplaces to Effectively Address the SMB Segment

Published: 21 March 2016

ID: G00295661

Analyst(s): Gyanee Dewnarain


Communications service providers have hitherto not aggressively pursued the SMB market with IT products due to the high cost of sales and support involved. SaaS marketplaces can enable CSP business unit leaders to cost-effectively address the SMB market.

Table Of Contents


  • The SMB Market Opportunity for CSPs
  • CSPs' Core Competencies in Offering SaaS to SMBs
  • CSPs' Challenges in Addressing the SMB Market
  • Critical Success Factors for CSPs' SaaS Marketplaces
    • Segment SMBs According to Their Characteristics and Needs
    • Keep Cost of Sales and Cost of Support Low
    • Adopt a Three-Stage Sales Process Spanning Acquisition, Upsell and Retention
    • Consider SaaS Marketplace as a Two-Sided Business Model

Market Trend

  • CSPs Adopt a Supermarket Approach With Their SaaS Catalog
  • The UI and UX in CSPs' SaaS Marketplaces Need Refinement
    • Search and Discovery
    • Customer Ratings and Reviews
    • Channel Fragmentation
  • CSPs' SaaS Business Models Offer SMBs Control Over TCO and Flexibility
    • Bundling, Discounts and Promotions
    • Free, Freemium and Tiered Pricing
    • Free Limited Duration Trials
    • Availability and Payment Mechanisms
  • CSPs Assess the Right Level of Support That Helps With Relationship Building, While Minimizing Costs
  • CSPs Leverage Value-Added Features to Differentiate Their Marketplaces, and Drive Retention and Recurrent Visits

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