The document debunks the myth that CIOs of SMBs are the primary decision makers for IT purchases. It summarizes that: 1) Most SMBs have fewer than 1,000 employees and lack dedicated CIO roles. IT decisions are made by generalists and staff within small IT departments. 2) Understanding the scale and needs of SMB segments (1-10 employees, 10-250, 250-500, 501-1000) is important for targeting marketing correctly. 3) Influencing IT staff who provide recommendations to management is key, as they can prevent vendors from reaching actual decision makers. Focusing solely on CIOs risks missing the majority of SMB opportunities.

1. Debunking The Myth:
The CIO of SMB
How do tech marketers pinpoint true decision makers in SMB?
By understanding what defines an SMB and who’s really calling the shots.
www.spiceworks.com/marketing

2. For tech marketers, it’s an all too familiar story: You’re faced
with a staggering number of companies in the SMB space
and the daunting task of reaching every last one of them. As
a result, your company often goes to great lengths to ensure
they’re “targeting SMBs.”
There appears to be a common misstep in how companies have
been carrying out their marketing approach: They assume that
reaching out to the CIOs of SMBs will do the trick. Sure, there are
a few exceptions, but when all is said and done, there are just not
enough CIOs of SMBs to warrant spending time and resources on
a lengthy marketing campaign.
What actually is an SMB? And who
manages their $800B annual IT wallet?
$
Since no two companies targeting SMBs define them in the same
way, let’s clear the air with a simple definition: SMBs are companies
having fewer than 1,000 employees. Simple as that! Spiceworks,
home to 2M IT pros, has a firm grasp on what that figure means
when it comes to purchasing power.
This leads us to a few global stats:
These 7M are the IT decision makers who are purchasing tech for
SMB-size organizations. This means that IT decision makers manage
purchasing for over 197M employees inside of 18M companies
worldwide. That’s an estimated $800 billion yearly spent on IT and
some serious buying clout.
Where to begin? Wrapping your brain around the scale of the SMB
market is a great starting place for tackling your new marketing
game plan. So first things first: let’s level set on what we mean by
organization size.
Debunking the myth: the cio of smb 1

3. The Home Office Market
(1 to 10 employees)
Starring: Your Friendly Neighbor, Fred
At the lower end of the SMB market, we typically find 1 to 10 employees
often referred to as small office/home office (aka SOHO). These folks
tend to purchase products from mass retail outlets (Best Buy/Walmart)
or online retail stores (Dell.com/Amazon.com) and then often seek out
help from IT-savvy friends or family members to set up and sometimes
maintain their computers/networks (Thanks, Fred!). MSPs and IT service
providers are playing in this space too and are providing expertise for a
number of companies just this size. These “smallest-of-the-small” usually
set a budget based on some driving event, such as a new employee or
upgrading obsolete equipment at the last possible moment.
The ‘S’ of the SMB Market
(10 to 250 employees)
Starring: The MSP & The IT Generalist
Picture your small neighborhood insurance office or vet clinic. These
are the typical small businesses that make up a large part of the
workforce around the globe, and where actual IT budgets (albeit small
ones!) start to take shape. Because they lack the buying power of large
companies, they’re extra careful about the dollars they spend. Don’t
look for a large IT department here – these organizations usually only
employ between 1 to 5 full-time IT pros. Not surprisingly, MSPs and
VARs play a large role in this segment by complementing technology
infrastructures or even running all of IT for them. That also goes for
purchasing. As a large number of products and services are acquired
through VARs/channel vendors, they trust these partners and have
cultivated very strong relationships with them.
2 Debunking the myth: the cio of smb

4. The ‘M’ of the SMB Market
(250 to 500 employees)
Starring: The IT Guru
As smaller companies evolve into bigger players in their industry,
they find themselves working harder to compete in the medium
business space. With an average, rather sizable IT budget of over
$1M annually, these SMBs have “staffed up” with an IT department
of 3 to 10 employees and sometimes even a VP of IT. They purchase
large amounts, if not all, of their products through VARs and DMRs. By
establishing trust in these partners and building mutually beneficial
relationships with them they are perfectly at ease asking their VAR reps
what products/brands they should purchase – and they usually run
with those recommendations. It goes without saying: Trust is priceless
in the IT world (almost as priceless as understanding who the real IT
decision makers are).
The Large SMB Market
(501 to 1,000 employees)
Starring: The VP of IT
The SMB “bulls-eye”: The fewest number of companies boasting the
largest IT budgets with IT organizations ranging from 5 to 20 people.
A VP of IT is not uncommon here but, as is the case in the medium
space, these VPs are known for getting their hands dirty alongside
their staff as they help put out IT fires within their organization.
SMBs in this space are using VARs and DMRs almost exclusively and
this is where we start to see solution-driven IT deployments. These
IT departments have larger-scale needs that may require on-site
contractors and special employees who set up/deploy systems and
move on to another large company opportunity.
Debunking the myth: the cio of smb 3

5. The Enterprise Market
(Over 1,000 employees)
Starring: The CIO
This is where the big dogs play, and they’re easy to track down and
network with. Sadly, this is where most IT vendors focus their efforts,
leaving the IT pros of true SMBs largely ignored. No love for the little
guy! Yeah, the CIO is here (as is the CISO, CTO, etc.), but then these are
not SMBs by any measure. Not surprisingly, tech vendors work directly
with these heavy hitters to purchase products, negotiate price, service
levels, etc.
A breakdown...
Home Office Small Medium Large Large Enterprise
Owners, Office Sys/Network Sys/Network Sys/Network CIO, VP of IT, IT
Managers Admin, IT Admin, IT Admin, IT Director
Director Director Director, VP of IT,
Team Leaders
People who keep the Often the only IT Often one of very One of many IT Often hard-to-reach,
business running. pro on staff. Highly few IT staff. Highly pros on staff with with gatekeepers
Typically not IT-savvy. knowledgeable knowledgeable influence on large preventing sales
and influential in and influential in purchases and contact. Passes
purchasing. purchasing. actively engaged in off review and
tech solutions for consideration of
company. technology to junior
staff .
4 Debunking the myth: the cio of smb

6. What’s a tech marketer to
From the Spiceworks Community
do now? IT decision makers sound off
Even as IT organizations grow (in staff and
responsibilities) the decision makers are What is a CIO? I am the IT guy
“downstream” where you’d like your brand to be. for our 250 person law firm in
Florida. Me and 2 other guys
Yes, the CEO, COO and sometimes the CIO are the decide what to buy.
ones who write the check, but don’t forget: While - Kevin C., IT Pro
the regular guys and gals in the IT department may
not have the power to say “yes,” they most certainly
do have the power to say “no” and are usually the
ones who shape the purchase discussion. Here’s Most of us ARE decision
what not to do: Focus on the CIO as the only makers… or at least TELL
the decision makers what to
decision maker and watch your sales plummet.
decide. That’s how it
works here.
Worry not – there’s an easy fix: Just pay attention - Paul C., IT Pro
to the large number of voices and influencers in
these IT departments when marketing and selling
tech products, services and solutions. Voila: tech
marketing at its finest! Through IT communities, Marketing to the C-Suite is
tech conferences, and informative newsletters you the move of someone who
can connect with these key players, speak to the knows their product isn’t
any good.
C-Level suite, and make your marketing and sales
- Scott M., IT Pro
efforts get more done.
I think what so many vendors
fail to realize is that while I, as
an IT professional, am not the
decision maker, I have two
very important roles: decision
influencer and gatekeeper.
If a vendor doesn’t convince
me, they don’t make it to the
decision maker… and [I] can
make or break most IT decisions.
- Justin D., IT Pro
Debunking the myth: the cio of smb 5

7. What’s my next move?
Glossary
We’re glad you asked! The next step is simple: Show IT
pros who are in the “trenches” of their IT departments SMB - Small and Medium Size Businesses:
that your company truly values “the little guy.” Because, Businesses with 1 to 1000 employees.
let’s face it, they can make a tremendous impact on how
VAR - Value Added Reseller: Vendor of IT
successful you are in the SMB space. products that provides additional services,
sometimes complementary and often built
We see it over and over again: Tech marketers focus their into contracts for larger purchases.
efforts on the “big fish” and bypass potential prospects
who actually call the purchasing shots. Frankly, the CIOs DMR - Direct Market Reseller: Also known as
an ‘e-tailer,’ is a company that sells directly to
of SMBs are few and far between. Should you come businesses without operating a storefront of
upon a rare one, chances are they’ll be heavily influenced any kind.
by (or defer to) the IT staffers you just overlooked. And
your competitor, who might know better, may just snag MSP - Managed Service Provider: Provides
the deal for themselves (ouch!). delivery and management of network-
based services, applications, and equipment
to businesses.
CIO - Chief Information Officer:
The person, typically in an enterprise,
responsible for the information
Ready to talk to the true IT decision makers? Get technology and computer systems that
in touch with us at spiceworks.com/marketing support enterprise goals; also known as the
Chief Information Services Officer (CISO)
and we’ll make sure you’re quickly engaging with
over 2M IT pros.
Spiceworks, as an IT management app and
a community of over 2M IT professionals,
provides a unique view, insight and path to
reaching more than 25% of the world’s SMBs.
Visit us at spiceworks.com/marketing to learn more and understand how to optimize your IT marketing with IT buyers.