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.
- 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.
- Developed Regions: SMB spending recovery will be more modest in developed regions.
- 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%.
- Mid-Sized Firms: IDC says that IT spending growth in mid-sized firms will outpace spending in smaller firms. .
- 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.
- Workforce Productivity: IDC expects growth in spending for productivity tools to support remote workers and mobile employees.
- Cloud Computing and Software-as-a-Service: IDC says spending for Cloud and SaaS will gain traction in 2010, especially among medium-sized businesses. .
- 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.
- 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.
- 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”