IDC: Worldwide SMB Market Top 10 Predictions 2010

IDC SMB 2010 Predictions I attended IDC’s Worldwide SMB Market Top 10 Predictions 2010 conference call today.  The call was led by Raymond Boggs, Vice President, Small/Medium Business and Home Office Research, but included a long list of analysts from IDC’s Small Business team.

IDC predicts that while SMB IT spending will recover, the impact of the recession will linger, impacting spending.  The conference call provided insights into how SMB spending on IT is changing by company size, by geography, and by technology.

Here’s a summary of the top predictions as presented on the conference call.

  1. IT Spending Recovers, But Not Enough To Make Up For 2009 Decline:  IDC forecasts SMB IT spending will grow 3.7% over 2009 (decline in 2009 was 4.3%).  Total IT spending by SMB will reach  $509.6 billion in 2010.
  2. Developed Regions:  SMB spending recovery will be more modest in developed regions.
  3. Developing Regions:  IDC forecasts that we’ll see more dramatic SMB spending gains in developing regions, including CEMA at +9.9%, Asia/Pacific (excluding Japan) at +7.3%, and Latin America at +7.1%. 
  4. Mid-Sized Firms:  IDC says that IT spending growth in mid-sized firms will outpace spending in smaller firms. .
  5. IT Spending Categories:  IDC says all IT spending categories will benefit from the increased SMB spending in 2010.  IDC expects services, software, and PCs/peripherals will benefit most, with 3-4% gains.
  6. Workforce Productivity:  IDC expects growth in spending for productivity tools to support remote workers and mobile employees.
  7. Cloud Computing and Software-as-a-Service: IDC says spending for Cloud and SaaS will gain traction in 2010, especially among medium-sized businesses. .
  8. Social Media:   IDC predicts that the use of social media will rise as SMBs figure out how to use it to reach new customers and learn about new technology.
  9. Focus on Innovative Solutions with Near-Term Benefits:  IDC says SMBs will be looking for alternative approaches to solutions and productivity tools that can provide near term benefits.  Social computing, mobility, personal storage, advanced networks, Cloud computing and SaaS all can add new productivity capabilities to SMBs, but SMBs will be looking to implement those solutions that can provide quick benefits.
  10. IT Infrastructure:  IDC expects that SMBs will continue to focus on building infrastructure capabilities (storage, security, and network resources) in order to support initiatives.

I have a big place in my heart for SMBs as that is the market where I ‘cut my teeth’ in the early 80’s when I joined IBM as a S/34 Systems Engineer and worked later as a Sales Rep.  Back then there were many, many SMBs that I called on that did not even have a computer in house.  Getting some of them to install GLAPPR and BICSARSA applications was a major sales effort.  There’s no question that the market for selling and servicing SMB organizations has totally changed since the early 80’s!!

For more information:

  • You can listen access a replay of the conference call Worldwide SMB Predictions 2010
  • Watch the IDC website for the release of the document Worldwide SMB 2010 Top 10 Predictions: Challenging Economy Will Sharpen Technology Focus on Near-Term Productivity Gains
  • Check out the SMB IDC website “Solving the SMB Puzzle

NVCA: Venture Capital 2010 Predictions

The National Venture Capital Association (NVCA) is out with its 2010 predictions, and the tone is cautiously optimistic.  The NVCA recently released its Venture View 2010, the annual predictions survey.  The NVCA survey was conducted from November 30 – December 8, 2009 and includes responses from more than 325 venture capitalists across the United States. 

  1. 2010 Investment: More Dollars into More Companies.  Sixty-three percent of all respondents expect venture investment dollar levels to remain the same or increase from 2009 with 44 percent forecasting a level between $21-25 billion.
  2. Clean Technology Continues to Garner Optimism.   Clean Technology is the industry where most VCs predict growth with 54 percent forecasting higher investment levels in 2010.
  3. Web Investments.   Nearly half of respondents expect Web investments to increase in 2010, with 15% betting on a decrease. 
  4. More Venture Dollars to Flow to Asia.   A majority of respondents believe that there will be more investment in Asia with 70 percent of VCs anticipating growth in China-based investments and 58 percent seeing greater investment levels in India in 2010.
  5. Later Stage Investment Predicted to Increase.  According the survey, most VCs expect the Growth Equity stage of development to increase with 55 percent of all respondents predicting increased investment there in 2010.
  6. Improving Exit Signs.   74% of the respondents believe there will be more than 20 IPOs next year with the average forecasted IPO volume at 26.3 offerings. Only 10 percent of VCs predict more than 50 IPOs.
  7. A Contracting Industry.  An overwhelming percentage of VCs (90 percent) predict that the number of venture capital firms will decline over the next five years

More information