SMEs , Mid Markets – Is there CAGR in this sector ?

Well…There is a lot of buzz about the Small and Medium Scale Enterprises, Mid Markets.

Whats the big deal and why there is lot of ga ga over these sectors? Here’s is the analysis.

Top Consulting companies like IBM,HP,SAP,Oracle,Delloite and Accenture have already started exploring these spaces/sectors and trying to seize opportunities . There is tremendous amount of growth potential in these sectors hidden with them. The Big Word – CAGR ( Compounded Annual Growth Rate) also looks impressive in these sectors.

The other day when i was looking at the IBM ‘s – “Lets Own the Mid Market” campaign. I found that IBM has already started seizing oppurtunities in this sector. Their market research puts up a impressive figure of CAGR of 6% in this sector. The areas they are looking at implementing their custom solutions are Colloboration tools, IT Security, ERP and CRM .

For Example: Considering the growth areas of Mid Market – CRM, campanies like Oracle , SAP are teaming up the consultants to move ahead in this space. HP, Accenture and Delloite has already started their consulting in SME’s and Mid Markets.

So small/mid sized consulting companies keep a tab on these top technology consulting companies as they already have “ants in their pants” .

Startups

Startups !!!!

During the dotcom boom there were burgeoning number of startup companies.

Most of companies could not even survive and are rated as top 10-100 dotcom flops.

Does the startup companies have an anticlimax ? Do only the big players like Yahoo , Microsoft , Google survive ?

The answer to this is definately a BIG NO !!!

Startup companies have greater chances of success,survival,high return on investment & profit margin.

Over years of my close watch on startup software companies & big players in the market.

I arrived at the following conclusions :

There are basically 3 types of software startup companies :

Type # 1

• These companies play / perform aggresively when they are young .
• When they are young, their only motto is to playaround with various technologies & gain as much in-house proficiency as they can.
• During this period they almost forget about the Quality,Process Management and Branding
• They frame their vision out of expertise they acquire over period of time
• They realize their defects and will try to patch those gray areas at later point in their life-time.

Type # 2

• These companies play / perform very aggresively in entire lifetime
• They only their motto is to master only particular domain & always thinks of lion-share in market.
• They have very strong mission but lack vision .
• During this period they take care of the Quality. They dont think of branding at all.
• These companies are a kind of warehouses for big players & eventually merge with them loosing their own identity.

Type # 3

• These companies also play aggresively when they are young.
• They have very clearly defined vision & mission for their company .
• They always crave for long term relationships & strategic partnerships.
• They dont comprimise on Quality,Process Management.
• This type of companies best of breed in startups and have a eye on branding as well

Map to one of these types where your startup company fits in !!!!!