Welcome!

Artificial Intelligence Authors: Yeshim Deniz, Elizabeth White, Zakia Bouachraoui, Pat Romanski, Jason Bloomberg

News Feed Item

New Report Finds Technology Spending Rising Among Small and Medium Businesses in First Half of 2010

The technology spending freeze of late 2009 is showing signs of thawing among small and medium businesses (SMBs), according to a new survey by Spiceworks™, Inc. The vast majority is seeing overall IT budgets and spending rise in the first half of 2010.

These findings were uncovered in the second semi-annual “State of SMB IT” technology survey of more than 1,000 IT professionals at small and medium businesses (SMBs). The survey, which is designed to investigate current technology purchasing, usage and staffing trends among SMBs worldwide, was fielded in January and February 2010 by the Spiceworks Voice of ITTM market research program. Survey result highlights include:

  • The average IT budget climbed nine percent in 2010 to $117,200 with 43 percent of SMBs reporting budget increases. Nearly half (47 percent) of 2010 IT budgets is allocated to new hardware purchases, 34 percent to new software, and 19 percent to IT services.
  • 80 percent of small and medium businesses plan new desktop, laptop and server purchases in the first six months of 2010 in order to refresh hardware that is on average 48 months old. Netbooks as well as tablet computers like the iPad are still not popular among SMBs, representing less than three percent of planned new mobile computer sales over the next six months.
  • 55 percent of SMBs plan software purchases in the first six months of 2010. Top priorities include virtualization, antivirus/anti-spam, backup and recovery, and Windows 7 upgrades. A surprising new finding showed that 22 percent of SMB IT pros plan to purchase, upgrade or renew CRM applications, indicating that IT departments are becoming more involved in the CRM purchase process.
  • Virtualization technology continues to be very popular among small and medium businesses with 41 percent planning new or additional investments in virtualization solutions in the first six months of 2010. Existing deployments increased workload virtualization density from 21 percent to 25 percent over the last six months.
  • Companies are moving some hosted services in-house, with hosted services purchase plans down 15 percent in the first six months of 2010 vs. the last six months of 2010. Hosted antivirus and anti-spam services show the biggest drop from 11 percent to 3 percent purchase intent, while hosted email shows the most stability at 23 percent.
  • Currently 25 percent plan to utilize cloud computing services over the next 6 months. The main reasons cited by those holding back on cloud investments include technology, security and performance concerns. Early cloud converts are bullish, and 44 percent plan to add at least one additional cloud service in the next six months.
  • The majority of small and medium businesses (67 percent) plan to keep their IT staff the same for the first half of the year, while 20 percent plan to add new full-time staff. Companies with less than 20 employees report the strongest increase in hiring plans. The use of contractors and part-time resources will drop in 2010 vs. 2009. Only 3 percent of small and medium businesses plan to use them vs. 8 percent who did in the second half of 2010.

“The technology spending slowdown among small and medium businesses seems to be over,” said Jay Hallberg, co-founder and vice president of Marketing for Spiceworks. “In the first half of 2010, bright spots are clearly seen in core technology areas, such as new hardware and software purchases. However, planned adoption of emerging technology may take some time. We will continue to watch these and other SMB technology trends carefully over the coming year.”

The State of SMB IT April 2010 survey of IT professionals had 1,250 respondents from around the world in organizations with fewer than 1,000 employees. Respondents were among the 950,000 SMB IT professionals from around the world who use the free Spiceworks IT management software to manage their computer networks. The average annual technology budget of survey respondents was $117,200. For more information on this survey and for a complete list of survey results, visit http://www.spiceworks.com/voice-of-it.

To receive updates on future research, follow Spiceworks Voice of ITTM on Twitter at http://www.twitter.com/VoiceOfIT or @VoiceOfIT, and sign up for Spiceworks Voice of ITTM research e-mails at [email protected].

About the Spiceworks IT Management Software

With more than 950,000 users in 196 countries, Spiceworks is the most widely deployed and fastest growing IT management application and community in the world. Spiceworks combines free network management and help desk software with a rapidly growing and active Facebook-like community of IT professionals. Currently more than 35 percent of all businesses with greater than 100 employees rely on Spiceworks to manage their IT operations. Together they support 31 million employees, manage 53 million computers and devices, and spend over $163 billion annually on technology products and services.

About Spiceworks

Founded in 2006, Spiceworks™ develops the first free social business application that combines systems and network management software with an online community of IT professionals to help over 950,000 IT pros and 85,000 managed service providers (MSPs) simplify everything IT. Spiceworks makes it easy for businesses to manage their networks, collaborate to solve technology problems, and find the best practices, products and services they need day-to-day. Through its Voice of IT™ market research program, the company enables direct conversations with IT professionals, conducts surveys and provides insight on important technology usage, staffing and purchasing trends by small and medium businesses worldwide. Spiceworks is a privately held company headquartered in Austin, Texas with funding from Institutional Venture Partners (IVP), Austin Ventures and Shasta Ventures. For more information, visit http://www.spiceworks.com.

Spiceworks and Voice of IT are trademarks of Spiceworks, Inc. All other names may be trademarks or registered trademarks of their respective owners.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

IoT & Smart Cities Stories
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Early Bird Registration Discount Expires on August 31, 2018 Conference Registration Link ▸ HERE. Pick from all 200 sessions in all 10 tracks, plus 22 Keynotes & General Sessions! Lunch is served two days. EXPIRES AUGUST 31, 2018. Ticket prices: ($1,295-Aug 31) ($1,495-Oct 31) ($1,995-Nov 12) ($2,500-Walk-in)
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
Nicolas Fierro is CEO of MIMIR Blockchain Solutions. He is a programmer, technologist, and operations dev who has worked with Ethereum and blockchain since 2014. His knowledge in blockchain dates to when he performed dev ops services to the Ethereum Foundation as one the privileged few developers to work with the original core team in Switzerland.