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Small-Medium IT Spending, 2004
eMarketer, Jan 2004, Pages: 17
Attention: Hardware and Software Producers, IT and Internet Service Providers, SMBs, Marketers and Advertisers
With more than 5.6 million small- and medium-size businesses (SMBs) in the US, the market represents a significant opportunity for technology vendors. In fact, small businesses accounted for 31% of all US IT spending last year, and roughly 53% of the growth. See how upcoming changes in small business could mean big opportunities for your business in eMarketer's new Trends in SMB IT and E-Business Spending spotlight report.
The Trends in SMB IT and E-Business Spending spotlight report delves into the diverse and fragmented world of small and medium-size businesses (SMBs) to uncover a huge growth opportunity for technology vendors over the next several years.
While individually SMBs don't spend much on technology, with millions of them out there, they represent a multi-billion dollar opportunity. In addition, tax law changes now allow them to deduct as much as $100,000 annually in fixed capital expenditures from taxable earnings -- that's up from $25,000 prior to 2003.
Hardware, software and IT services providers are all looking at how they can sell more effectively into the SMB market.
The Trends in SMB IT and E-Business Spending Spotlight Report Answers These Key Questions:
- What is the size of the SMB market, by dollar value and number of businesses?
- Which IT and e-business technologies have SMBs purchased to date?
- What will be the IT spending priorities of SMBs over the next few years?
- How are technology vendors selling to this diverse and geographically dispersed market?
- How do SMBs make technology purchasing decisions?
- And many more...
Here is an example of the type of statistics and analysis that fill the report:
Current IT Adoption and Usage Among SMBs
When it comes to small- and medium-size businesses' adoption of various technologies, the Yankee Group has found that 81% of all SMBs with less than 500 employees have Internet access, while just 30% have their own Web sites.
Similar results were posted in a late-2002 study conducted by Verizon, which found that nearly 70% of small businesses with less than 50 employees do not have a Web site -- no different than the number of small businesses with Web sites in 1999, indicating that little had changed during the previous three years. On the other hand, 26% of respondents that did not have Web sites in late 2002 indicated that they did plan to launch one in 2003.
By comparison, in a mid-2002 NFIB survey of small businesses with less than 250 employees, 11% of respondents said that they had spent up to $10,000 to design their Web sites, and $500 or more per month to maintain them.
For many of the smaller firms that were polled by Verizon, having an online presence has been beneficial -- nearly one-half of the companies surveyed, at 42% of respondents, said that their Web site had met or exceeded their expectations.
You will find many more charts and graphs and analysis inside the Trends in SMB IT and E-Business Spending spotlight report.
big profits.
Information Sources Include:
American Express
AMI-Partners
ARC Research
Crimson Consulting
Forrester Research
Gallup Organization
Harte-Hanks
In-Stat/MDR
Interland
International Data Corporation (IDC)
VARBusiness
Yankee Group
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