Research from the IDC, a global market intelligence firm, found that American small businesses will spend more than $125 billion on advanced technology this year, an increase from approximately $120 billion in 2010. These two years of spending growth represent a substantial rebound from 2009, when SMB IT spending declined by 4.2 percent.
“SMBs account for an increasing share of overall corporate IT spending in the U.S.,” said Justin Jaffe, senior research analyst for small/medium-sized business and home office research at IDC in eWeek. “Vendors that understand how changing economic conditions and emerging technologies are affecting IT acquisition for different company size segments will have a considerable advantage in developing and marketing technology products and services for SMBs.”
Not only has the amount of money that small businesses will spend on technology increase, but the size of technology budgets has increase as well. A Spiceworks survey found that the average SMB technology budget at $132,000 this year, compared with $121,770 in mid-2010. On top of that, only 19 percent of small businesses reported shrinking IT budgets, compared to 31 percent in 2009. This is great news, especially in these continuing tough economic times.
“It’s a combination of forces, including cautious optimism about the economy and a growing willingness to spend on IT,” Jaffe said in an email to InformationWeek. “In fact, the smaller the business, the more likely the balance tilts more towards technology spending growth.”
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