Gartner Research

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

Published: 21 March 2016

ID: G00295661

Analyst(s): Gyanee Dewnarain

Summary

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

Introduction

  • 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

Vendors to Watch

Gartner Recommended Reading

©2020 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Purchase this Document

To purchase this document, you will need to register or sign in above

Become a client

Learn how to access this content as a Gartner client.