Media releases are provided as is by companies and have not been edited or checked for accuracy. Any queries should be directed to the company itself.

SMB Infrastructure Spending in Decline, Services Key to Vendor Survival, Finds IDC

  • 30 May, 2006 12:18

<p>NORTH SYDNEY, 30th May, 2006 – IDC has recently completed its study of the local SMB market titled "Australia Small and Medium-Sized Business Infrastructure Market 2006", which examined the current and future state of the SMB infrastructure market.</p>
<p>Small and medium-sized businesses (SMBs) represent 99.8% of Australian businesses, 63% of revenue, and 70% of employees in the private sector. SMBs however, represent only 31% of IT spending as their IT budgets are mostly spent on infrastructure hardware and software, whereas larger companies spend more on services.</p>
<p>In this study, IDC looked at the predominance of infrastructure components in the IT spending of SMBs in Australia. This can be explained by the fact that to date no vendor has been able to unlock the code to significantly enter the SMB services market. As a result, SMBs have been left to spend money mostly on hardware and software. They are struggling to find a decent midsize service provider to help them manage their growing and aging infrastructure.</p>
<p>"The SMB infrastructure market value will decline steadily at a -2.1% Compound Annual Growth Rate (CAGR) over the next five years, putting hardware vendors in a very difficult financial position. Competition will be intense and to maintain revenue, hardware vendors will look at increasing their services activity in the SMB space. This transition will be made even more difficult by the entry of large services firms or telecommunication companies in this untouched space," says Jean-Marc Annonier, Research Director for SMB, IDC Australia.</p>
<p>"The key to survival for many players will be the ability to design and market software and services specifically for the SMB space. Financial strength and careful risk management will be critical to the success of this transition. Channel strategy will be an essential factor for all vendors due to the high fragmentation of the SMB market. All vendors will need to carefully design their go-to-market strategy in order to compete efficiently." added Mr Annonier.</p>
<p>For press enquiries please contact:
Jean-Marc Annonier
Research Manager, IT Spending, Vertical Markets and SMEs
Phone: 61 2 9925 2221
Email: jannonier@idc.com</p>
<p>Click here to view the press release online:
http://www.idc.com.au/press/release.asp?release_id=231</p>
<p>Click here to subscribe to IDC press releases and newsletters online:
http://www.idc.com.au/newsletters/register/</p>

Most Popular

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?