Tech Spending In The Small And Medium-Sized
Business Market Expected To See
Steady Growth For Remainder Of 2005
Latest Survey from The NPD Group Shows Small
Businesses Increasing their IT
Spending at a Faster Pace than Medium-Sized Businesses
PORT WASHINGTON, NEW YORK, May 16, 2005 - Small and medium-sized
businesses (SMBs), which include companies with five to 1000
employees, are anticipating a 13 percent increase in their IT
expenditures over 2004, with a majority of the spending increases
occurring in the services sector, according to The NPD Groups
recent report, The SMB IT Market Report.
Small companies (five to 99 employees) are expecting to increase
their IT spending by 11 percent this year vs. a growth of 20
percent from 2003 to 2004, with medium-sized companies (100-1000
employees) expecting to increase only 15 percent this year vs. 25
percent during the same time period.
Laptop Battery Of the three main categories - hardware, software and services,
services is expected to see the biggest increase in spending this
year, with SMBs expecting to increase their services expenditure
from 20 percent of total IT spending to 25 percent in 2005. In
fact, small companies are looking to increase the percent of
services spent through a VAR by 3 percent to 47 percent.
"Although many small business owners are concerned that their tax may be too high, the good news is that this survey shows that small businesses remain confident in their growth prospects and the strength of the U.S. economy, " said Gail Goodman, CEO of Constant Contact. "It's also encouraging to note that for those small businesses expecting a refund, their refund dollars are earmarked for marketing initiatives, which shows the vital role that marketing plays in helping them achieve their business growth objectives."
Thinkpad Within the hardware category, desktop and notebook computer
spending is expected to see an increase in sales as a percent of
total IT spending. Contrary to conventional wisdom, small companies
are planning in increase their desktop and notebook spending
through VARs from 17 percent to 30 percent this year.
Acronis True Image Server incorporates key features crucial to the SMB (small and medium business) market, metal recovery
Microsoft According to the report, SMBs assert that quality of service and
support is overwhelmingly the most important factor in selecting a
VAR, said Stephen Baker, director of industry analysis for The NPD
Group. This has important implications for the manufacturers,
distributors, and resellers in the sense that a holistic channel
strategy is necessary to be successful in the SMB space.
And then, of course, we have the Standalone Server product, which is called Acronis True Image Server for Windows or Linux and that will manage a single standalone server. What type of computers can we back up, because in a medium to a large sized, even some small sized businesses, who knows what kind of computers they have They may have laptops, they may have desktops, they may just have anything and everything
Laptop Computers Methodology
The NPD SMB IT Market Report was an online survey consisting of
1,000 interviews. Qualified participants had to be responsible for
the evaluation and selection of IT products and services for their
organization, knowledgeable about the IT budget and the ways that
the budgets are broken out by product category and purchase
channel, and p art of a
company with between 5 and 1,000
employees worldwide.
Edinburgh is continuing to attract many new businesses as the business conditions in Edinburgh continue to show growth and steady progress.
Laptop Computer The sample for this study was randomly selected from a very
large panel of IT professionals that is closely and professionally
monitored, controlled and managed.
It is expected that during 2007, although growth will not reach the historic highs of 30%, it will remain on a path of stabilised growth.
Desktop Computer About The NPD Group, Inc.
Since 1967 The NPD Group has provided reliable and comprehensive
sales and
marketing information for a wide
range of industries. Today more than 1,300 manufacturers and
retailers rely on NPD to help them better understand their
customers, product categories, distribution channels and
competition in order to help guide their business. Information
from The NPD Group is available for the following major vertical
sectors: apparel, appliances, automotive, beauty, cellular,
consumer electronics, food and beverage, foodservice, footwear,
home
improvement, housewares, imaging, information
technology, music, software, travel, toys
and video games. For more information visit www.npd.com
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