Mobile // Mobile Applications
Commentary
3/24/2010
08:33 PM
Jake Widman
Jake Widman
Commentary
50%
50%

SMB IT Spending Will Grow, But Slowly, Say Analysts

Industry analysts IDC have predicted that SMBs will spend more money on IT this year than last but will not reach 2008 spending levels until 2011.

Industry analysts IDC have predicted that SMBs will spend more money on IT this year than last but will not reach 2008 spending levels until 2011.The analyst firm's "Worldwide Small and Medium-Sized Business 20102014 Forecast: Recovery and Change in SMB IT Spending by Category and Region" predicts that worldwide, SMBs will spend $17.4 billion more this year than last. By 2014, IDC expects SMBs to be spending nearly $630 billion a year, an overall growth rate from 2010-2014 of 5.5%. Nevertheless, IT spending won't be back to 2008 levels until next year.

"The downturn had a devastating impact on SMBs worldwide," explained Ray Boggs, IDC vice president for Small/Medium Business and Home Office Research."Moving forward, small businesses will not follow the past pattern and return to pre-recessions spending levels more quickly than midsize firms. Instead, SMBs of all sizes will remain cautious with their IT spending over the next several years."

SMBs in developing regions will grow their spending faster than those in North America, Western Europe, and Japan, which account for about 70% of worldwide SMB spending on technology. Those areas will see spending growth in the 3-4% range. IDC expects spending in the Asia/Pacific and Latin America markets to grow more than 7% over the next five years, and growth in Central and Eastern Europe, Africa, and the Middle East will be higher still.

The analysts expect hardware spending -- PCs and peripherals -- to grow the fastest, with "packaged software outlays" next and systems and storage spending bringing up the rear.

The full 25-page report is available for $4,500 at the IDC site.

More From InformationWeek SMB:

Comment  | 
Print  | 
More Insights
Building A Mobile Business Mindset
Building A Mobile Business Mindset
Among 688 respondents, 46% have deployed mobile apps, with an additional 24% planning to in the next year. Soon all apps will look like mobile apps and it's past time for those with no plans to get cracking.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest, Dec. 9, 2014
Apps will make or break the tablet as a work device, but don't shortchange critical factors related to hardware, security, peripherals, and integration.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of December 14, 2014. Be here for the show and for the incredible Friday Afternoon Conversation that runs beside the program.
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.