InfoWorld SMB Blog » SMBs IT Investments Grow But Largely In Mainstream Technologies

June 16, 2005 | Comments: (0)

SMBs IT Investments Grow But Largely In Mainstream Technologies

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SMBs continue to be conservative in their approach to technology purchases investing mainly in security point solutions, wireless LANs, and Web services, but are steering away from hotter markets such as security architectures, VoIP products, hosted applications, and Linux according to Gartner at its Small Business Vision conference in Boston on Thursday.

"SMBs are just not looking to buy the next great thing. They remain very much conservative technology adopters, although we see for the first time many smaller companies more interested in buying technologies they believe are the right fit for their business, or ones that can help them avoid the bad things like compliance, breeches or the real risk of losing customers," said Mikka Krammer, a Research Vice president with Gartner.

In surveys conducted by Gartner some 95 per cent of small companies interviewed classified themselves as conservative or mainstream technology adopters while 85 per cent of mid-size companies feel the same. In other results some 44 percent of small companies say they have no documented IT strategy with 54 percent of mid-size companies saying the same. And only 50 per cent of small companies have any policies in place that help them realize technology benefits while only 45 per cent of mid size companies did.

Consistent with its belief that SMBs will remain conservative technology adopters, Krammer said she doesn't expect Services Oriented Architectures (SOAs) to take hold among SMBs in any broad based way until the 2008 to 2009 timeframe.

"I think what has to come along for (SOAs) to take firmer hold are the applications and ecosystems," Krammer said.

Despite SMBs conservative bent Krammer believes there is still a lot of money to be made for vendors and resellers in that market. She said the SMB market is now worth $400 billion worldwide with 45 per cent of that figure to be spent in North America.

External factors that are serving to motivate technology purchases among smaller companies, according to Krammer, are the increased availability of better and lower cost solutions tailored specifically to their needs, along with a number of customer pressures. What is motivating mid-size companies are also better and lower cost solutions, but security threats and regulatory compliance.

Internal factors driving buys among small companies include attempts to improve operational efficiencies, develop more flexible infrastructure and improving customer service. Motivating mid-size companies are the same three factors.

Posted by Ed Scannell on June 16, 2005 11:46 AM

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