Small to Midsize companies continue to invest in IT

A global study of over 3,000 SME IT professionals has revealed that many plan to increase IT spending in the second half of this year. Virtualisation technology and investments that optimise existing resources are their top IT priorities.

The survey, from IT management software supplier Spiceworks had a number of significant findings in relation to future software purchase plans of small to midsize companies.

37% of small to midsize companies plan to invest in database software prior to year-end. Planned purchases are primarily via upgrades, continuing the trend we noted during the first six months of 2010 that IT pros are shifting away from filling gaps through new software purchases and toward upgrading existing software and renewing existing IT contracts/licenses.

Planned IT spending in customer relationship management (CRM) software remains consistent with that of the first half of 2010 as 23% of small and medium businesses plan to purchase new, upgrade or renew by the end of 2010.

Other key findings of the survey:

•68% of SME IT professionals plan to use virtualisation technology by the end of 2010
•65% of SME IT professionals plan to keep IT staff levels the same between now and the end of the year
•20% plan to add full-time IT staff before the end of the year
•42% of IT budgets for the rest of the year are allocated to hardware
•35% of IT budgets for the rest of the year are allocated to software
•48% of IT professionals plan to buy new, upgrade or renew at least one IT service

Investment in IT has become critical to small business success. The rate of technology development is driving SMB investment in IT as they recognise that in order to subsist competitively they must take advantage of all the benefits of increased efficiency, productivity, visibility and management that IT can bring them.

The SAP Business One application offers a single, affordable way for small to midsize companies to manage their entire business, from sales and customer relationships to financials and operations. It helps you streamline processes, act on timely information, and can accelerate profitable growth.

To find out more about SAP Business One and how it can help you become a best run business visit www.beabetterbusiness.co.uk or www.beabetterbusiness.ie

Sources: Computer Weekly; Spiceworks Report – The State of SMB IT September 2010