- SMB IT spending focuses on infrastructure
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July 28, 2005 | Comments: (0)
SMB IT spending focuses on infrastructure
SMBs with under $1 billion in revenues are spending between 53 and 60 per cent of their total IT budgets on infrastructure including data center, voice and data networks, desktop products, and help desk according to a report released this week by Gartner Consulting's Worldwide IT Benchmark Service.
According to the report those companies generating more than $1 billion a year, the average amount of money spent on infrastructure was just under 50 per cent of their total budgets.
Among those companies taking in less than $1 billion a year, media companies and IT firms ranked among the leaders in IT spending as a percentage of revenue at 8.16 per cent and 6.85 per cent respectively. Banking and financial services companies that spend at higher-than-average rates, ranked sixth and fourth respectively in 2005. Organizations that produce energy and consumer products making under $1 billion are among the lowest spenders on average, according to the report.
"For many small and medium sized businesses, particularly those that compete in highly competitive marketplaces, IT can be a key component of competitive strategy," said Howard Rubin, an associate with Gartner Consulting. "However, in more mature markets, some small organizations still treat IT as just another cost of doing business. Those organizations continue to focus on keeping IT costs down," Rubin said.
Users wanting additional Worldwide IT Benchmark research can participate in Gartner's data exchange at www.gartner.com/surveys.
Posted by Ed Scannell on July 28, 2005 11:54 AM
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