Midmarket companies are looking to invest in a variety of PC form factors, with high levels of interest in notebooks and media tablets.
Spending on information
technology by the 8 million small and midsized businesses in the United States
will account for approximately one-quarter of overall global SMB IT spending
and more than 10 percent of all IT spending worldwide in 2012, according to a
report from IT research firm IDC. The small business segment will spend nearly
twice as much as the midsize segmentand more than the entire large enterprise
segmenton PCs and peripherals in 2012.
The client business is
expected to be particularly strong, as midmarket companies look to invest in a
variety of PC form factors, with particularly high levels of interest in
notebooks and media tablets. SMBs will spend nearly $50 billion on packaged
software in 2012, accounting for more than one-third of total U.S. SMB IT
spending; this category will also have the highest compound annual growth rate (6 percent) from 2012 to 2016, according to the report.
Although U.S. SMB IT
spending has more than made up the ground lost during the especially weak years
of 2008 and 2009, and is expected to exceed $138 billion in 2012, future levels
of investment and spending growth will not be uniform across technology
categories. More than one-quarter of total SMB IT spending in 2012 will be
allocated to IT services, totaling more than $38 billion.
While this level of
spending is significant, it also represents a critical departure from the
conventions of the large enterprise segment, where IT services account for
nearly half of all IT spending, the report noted. In keeping with the growing
importance of IT services as company size increases, the midsize business
market for IT services will be more than triple the size of that for small
firms throughout the forecast period.
Systems and storage will
continue to be the slowest-growing IT category in the SMB space. While SMB
interest in servers and storage is expected to remain strong, the appeal of
virtualization is expected to slow the growth of the server installed base,
particularly in the midsize segment. The networking equipment category will
account for the smallest share of total SMB IT spending throughout the forecast
period. This represents another key difference between the SMB and enterprise
segments; while large businesses continue to make significant investments in
next-generation data centers and networking infrastructure, more than one-third
of SMBs have not yet deployed networks. Despite increasing interest in
networking and network-enabled technologies, such as software as a service
(SaaS), cloud resources and unified communications, SMB spending will remain
relatively modest throughout the forecast period, the report projected.
"SMBs will account for
an increasing share of overall corporate IT spending in the U.S.," said
Justin Jaffe, research manager for small/medium-sized business and home
business research at IDC. "Vendors that are sensitive to the changing
dynamics in SMB technology requirements as well as the critical differences in
the ways SMBs and large enterprises approach IT investment will be best
positioned for success in 2012 and beyond."