I was asked recently, what is all the fuss over SMBs about? The gentleman who asked the question is a small business owner and he believes he is nothing special. Because of this belief he wonders why does he hear so much about the SMB market especially in Web hosting.

So why do we hear so much about SMBs? I am going to make a very over simplified view of the host market. Though it is essentially true it does leave out a lot of smaller niches. I am going to do this to expedite the process and make this blog smaller. In hosting, there are enterprises, small and mid-sized businesses, and personal markets.

The enterprises have very precise and somewhat expensive needs. The things the require cost a lot for a host to invest in and once they do invest they can charge a high amount. Once the infrastructure is in place, this brand of Web host needs quality sales people, the type of sales people who were handlers for Vegas casinos prior to employment in hosting, for enterprise sized businesses hold onto their IT departments with a clenched fist.

The personal hosting market is vast and the needs are easy. However, the competition is just as vast and extremely cut-throat. This is the arena for large Hosts who drop their prices extremely low and move the accounts up the ladder. The requirements are easy, but the user base is a pain to work with (desiring everything in the world for 2 bucks a month) and the competition is extreme. So this area, like enterprise is a difficult one to break ground in.

Now SMBs are different. SMBs understand the cost of business and are willing to pay for quality. They won’t be paying you thousands of dollars a year but most won’t expect the world for a buck either. They have specialized needs, but not so specialized that it will break the bank procuring them. Also when it comes to niche markets, the SMB is an easy market to get into because if you solve the needs and emphasis one or more of those needs you are now a niche Host. the SMB market is vastly expanding as well. It is an area that continues to grow and will be growing especially during these hard economic times (a good web site costs about 50-100 bucks a month office space costs 10-100 times that).

So why the fuss? Well because:

• Growing Market
• Specific Needs, Easily Catered
• Versatility of the Business Model
• Willing to Pay
• A Market that Invites Niche Markets and Specialization

And that is why SMBs are important. Until next time, happy hosting!