SMB IT Spending Holds Steady

By Allan Alter  |  Posted 02-11-2008 Print


EUC with HCI: Why It Matters

IT executives at midmarket companies may be concerned about a recession, but it’s not showing up in the numbers.

A year ago, before the economy started going south, we reported that midmarket IT spending was rising an average of 8.6 percent. Now, when some economists say we've slipped into a recession, spending is rising a mere ... 8.3 percent.

In other words, it hasn't changed.

One reason: Companies with revenues below $500 million are focused on growth; 72 percent expect their revenues will increase by more than 5 percent in 2008. They are increasing their investments in applications to support growth--databases, e-mail, ERP and storage, for example--and applications to support sales, marketing and customer service--business intelligence and CRM, for instance. Another reason: They see opportunities to reduce infrastructure costs so they adopt virtualization, voice over IP and open source software.

Yet another: Small and midsize businesses invest in their IT staff, using outsourcers less often and increasing spending on training by a bigger percentage than larger companies.

Undoubtedly, a recession will force more SMBs to cut back. But overall, small and midsize businesses are not yet ready to pull the plug on their IT spending.



Submit a Comment

Loading Comments...
eWeek eWeek

Have the latest technology news and resources emailed to you everyday.

By submitting your information, you agree that cioinsight.com may send you cioinsight offers via email, phone and text message, as well as email offers about other products and services that cioinsight believes may be of interest to you. cioinsight will process your information in accordance with the Quinstreet Privacy Policy.

Click for a full list of Newsletterssubmit