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SMEs Require Customised Software, Finds IDC

  • 28 June, 2004 12:46

<p>NORTH SYDNEY, 28TH June, 2004 – IDC has recently completed a market study of the local SME market titled, “Australian SME Software Adoption”. The study covers SME software applications usage, the channels used to purchase software and future intentions for software acquisition.</p>
<p>“IDC found that SME purchasing decisions are made through recommendations from friends and/or colleagues and the Internet, and that specialty software outlets and value added resellers are the preferred choice of SMEs to purchase software.” said Brad Hill, IDC’s SME Market Analyst.</p>
<p>From the SMEs surveyed that identified their spend on software in 2003, 33% of them spent more than $10,000, 18% spent between $2000 – $5000 and 12% did not purchase any software at all. IDC found that the amount spent is relative to the size of the business, with medium businesses spending more than small businesses.</p>
<p>Customised software was also examined in this study, and IDC found that 61% of SMEs surveyed did some form of software customisation either internally or by a third party.</p>
<p>"IDC recommends SME budgets and requirements need to be considered when vendors decide to target this growth area, as the requirements of SMEs vary greatly by business size and vertical industry. Knowledge about the industry and how individual business can benefit by using particular software, while still being flexible enough to scale or customise the product, should be key focus areas of vendors and their channel partners,” added Mr Hill.</p>
<p>Companies upgrading their infrastructure and the increasing number of security attacks, are factors that IDC sees as contributing to software adoption growth. SMEs need to upgrade their current applications and operating systems in order to be more efficient, and also in an attempt to make their business less susceptible to security violations or malicious attacks. Vendors that seize this opportunity and target SMEs in an effective manor will be rewarded with greater market share and higher revenues.</p>
<p>For press enquiries please contact:
Brad Hill
Market Analyst, Small and Medium Enterprises
Email: bhill@idc.com
Phone: 61 2 9925 2228</p>

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