Wednesday, March 16th, 2016 - WiseGuyReports

IT Spending By SMBS Global Market 2016 To 2020 adds “IT Spending By SMBS Global Market 2016 to 2020” to its research database.

This market research report includes a detailed segmentation of the global IT spending by SMBs by software (application and infrastructure software), by hardware (networking equipment, servers, and storage), and by IT services (system integration services, hardware support services, and consulting services). It outlines the market shares for key regions such as the Americas, APAC, and EMEA. The key vendors analyzed in this report are Cisco, Dell, HP, and IBM.

Market outlook of the IT spending by SMBs

Technavio’s research analyst predicts the global IT spending by SMBs to grow steadily at a CAGR of close to 6% during the forecast period. The need for cost reduction and efficiency is the primary growth driver for this market. The SMB sector plays a significant role in the growth of a country’s GDP, employment, and exports. Despite its size, the sector remains plagued with many challenges. It is fragmented and unorganized, lacks support from top management, and has funding issues and supply chain inefficiencies. Also, this sector is facing global competition from developed nations. Therefore, it has become imperative for this sector to streamline processes and operations, adopt best practices, and use technology to improve the overall operational efficiency and enhance quality.

Top executives of SMB units are always under pressure to shrink IT costs. Therefore, to minimize costs, SMBs are deploying low-cost IT solutions such as cloud computing that are flexible, scalable, and reliable. This research report predicts, virtualization of IT aimed at minimizing both CAPEX and OPEX of SMBs to emerge as the next big thing in the IT industry until 2020.

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IT spending segmentation and analysis by SMBs

  • Software
  • Hardware
  • IT services

The IT services segment dominated the market during 2015 with a share of close to 45%. SMB firms are selecting IT-as-a-service deployment model such as SaaS, IaaS, and Pass to implement on-demand, flexible, scalable, and agile IT solutions. With the upsurge of cloud computing services, organizations are set to invest in cloud-based solutions as per their IT budget.

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Segmentation by end-user and analysis of the IT spending by SMBs

  • Public sector
  • BFSI
  • Telecom and media
  • Retail/wholesale
  • Utilities
  • Others

IT spending in the public sector segment is expected to expand impressively during the next four years. Spending on IT in the public sector involves enhancing public services such as healthcare, education, and transportation. An increased IT budget helps enhance business operations and reduce costs. Public sector IT spending in the Americas, EMEA, and Asia-Pacific (APAC) is on the rise because the US, the UK, India, Japan, China, and Singapore are significantly investing in this sector.

Geographical segmentation and analysis of the IT spending by SMBs

  • Americas
  • APAC
  • EMEA

The Americas accounted for the largest market share of IT spending in SMBs among all geographies in 2015. North American banks are investing heavily in technology to improve the performance of retail banking services. This has contributed to the growth of the market in this region.

Competitive landscape and key vendors

SMBs are increasingly adopting modern technology solutions to cater to the current business needs of their clients. They prefer enterprise storage vendors and managed service providers for the delivery of quality products that are scalable and cost effective. The competition among the foreign firms and local firms are also expected to increase during the forecast period. The competition in the IT market for SMBs is mainly in terms of price; support services like training, quality, reliability and brand, and offerings portfolio.

The leading vendors in the market are -

  • Cisco
  • Dell
  • HP
  • IBM

Other prominent vendors in the market include Amdocs, Fujitsu, Lenovo, Microsoft, Oracle, SAP, TCS, and Toshiba.

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