What is Middle Market?
Middle market is a vital sector of the American economy, representing about one third of the GDP and also accounting for most new jobs in the United States. These businesses are privately owned and have a combined annual revenue of over $10 trillion.
What is the size of a middle market business?
To be a middle market business, revenue must be between $10 million and $1 billion. Middle market companies are often dubbed not large enough to be big businesses, yet too big to be considered small businesses.
It is typical of middle market businesses to be in the service industry, with a more personal focus on customer relationship and interaction. With little brand awareness outside of their given industry, the middle market depends heavily on their active audience.
Although middle market businesses only make up a small portion of the business sector, according to the National Center for the Middle Market, they employ roughly 50 million Americans—and that number is expected to grow exponentially.
What are the characteristics of a middle market business?
With an average of 31 years in business, middle market businesses are considered extremely resilient. There are countless companies that have not only remained in operation through depressions and financial crises, but also thrived despite being unable to achieve upper-middle-market status.
These businesses are critical to the U.S. economy and contribute directly to the vitality of the market. With the ability to bridge the gap between small businesses and big businesses, middle market businesses are in a unique position that allows them to promote every sector of business. Historically, there have been middle market companies that act as critical links within the supply chain between companies in different sectors.
Another characteristic of middle market businesses is their need to connect and maintain connection with their clientele. Promoting and creating sustainable customer engagement is absolutely vital to their success, since diminishing relationships are directly correlated to deteriorating revenues. Without this ability, there must be a push for technological support that is not typical of middle market businesses. Since leaders in mid-market companies typically travel and build relationship on-site with accounts, they need resources to enable these conversations in an authentic manner to continue to establish or solidify these relationships remotely and promote healthy business.
What are the challenges for middle market businesses?
In 2020, during the COVID-19 pandemic, middle market businesses had no way to connect with their customer base due to isolation and lack of travel. There was a rush for remote connection, but with this sector being so firmly rooted in personal connection, businesses began to suffer substantially.
With middle market businesses facing a majority of their competition online, there is a significant push and urgency to get their business online and available. In order to do that, middle market businesses must invest in cloud-based SaaS and IT support compute to regain momentum within today’s unstable economy.
Without shifting the infrastructure of a middle market organization to represent the priorities of cloud-based storage, compute, and operations, there is no way to maintain a competitive edge within the given industry. Companies must take steps to connect with their customer base in thoughtfully reimagined ways.
HPE and middle market
Your products, services, customer experience, and employee productivity hinge on digital infrastructure. HPE can help you navigate managing operations on your digital transformation journey without sacrificing customer experience.
With HPE Nimble Storage disaggregated HCI (dHCI), middle market companies can resiliently drive business through their apps with higher performance and efficiency. HPE Nimble Storage dHCI is built for business-critical apps and mixed workloads in order to promote agility. This is all made possible through a hybrid cloud experience and guarantees that your platforms are accessible at all times with minimal latency. This makes this service ideal for even the most demanding apps and workloads, providing the foundation for a seamless customer experience.
Digital transformation is imperative for your business. By radically simplifying infrastructure for every application, your business can lower costs and enable flexible scaling of compute and storage on demand. HPE Nimble Storage dHCI, an industry-leading solution for data efficiency, is here to help you power your next chapter with an affordable and modern IT environment.