Worldwide SMB Spending Will Return to Growth in 2010, But Full Recovery Not Expected Until 2011, According to IDC

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Worldwide SMB Spending Will Return to Growth in 2010, But Full Recovery Not Expected Until 2011, According to IDC Powered By Docstoc
					Worldwide SMB Spending Will Return to Growth
in 2010, But Full Recovery Not Expected Until
2011, According to IDC
March 23, 2010 08:03 AM Eastern Daylight Time  

FRAMINGHAM, Mass.--(EON: Enhanced Online News)--While the impact of the global recession was no
surprise, the extent to which small and medium-sized businesses (SMB) were adversely affected was greater than
anticipated. As a result, International Data Corporation (IDC) forecasts worldwide SMB spending on information
technology (IT) will increase by 5.5% over the 2010-2014 forecast period. This is considerably lower than
previously forecast.

"The downturn had a devastating impact on SMBs worldwide," said Ray Boggs, vice president, Small/Medium
Business and Home Office Research at IDC."Moving forward, small businesses will not follow the past pattern and
return to pre-recessions spending levels more quickly than midsize firms. Instead, SMBs of all sizes will remain
cautious with their IT spending over the next several years."

Key findings from IDC's SMB forecast include the following:

    l   Worldwide SMB IT spending will grow to nearly $629.3 billion in 2014. Despite the $17.4 billion spending
        increase expected in 2010, SMB IT spending levels will not return to 2008 levels until 2011.
    l   While SMB spending declines affected all categories of hardware, software, and services, the spending
        recovery will vary by technology type. IDC expects SMB spending on PCs and peripherals to experience the
        strongest growth, followed closely by packaged software outlays, while systems and storage spending will be
        the slowest growing.
    l   SMB spending growth will be strongest in Central and Eastern Europe, the Middle East and Africa, although
        spending will not recover to pre-recession levels until 2011. The developing markets of Asia/Pacific and Latin
        America will also experience growth of more than 7% throughout the forecast period. SMB spending growth
        in developed regions will be roughly 3-4%.
    l   North America, Western Europe, and Japan collectively represent about 70% of worldwide IT spending by
        SMBs.

"The diversity of the SMB market will continue to be one of its hallmarks," added Boggs. "Given that the developed
regions account for the largest share of SMB spending, and the developing regions represent the greatest opportunity
for market growth, the global market really becomes a 'tale of two regions.' To succeed, technology providers need
to develop separate strategies that address the distinct needs of companies in each of these settings."

The IDC study, Worldwide Small and Medium-Sized Business 2010–2014 Forecast: Recovery and Change in
SMB IT Spending by Category and Region (Doc #222409), forecasts spending by small and medium-sized
businesses across major geographic regions. Total IT spending is presented for 2010-2014, along with the baseline
year of 2009. Detail on spending totals is provided for key hardware, software, and services technology areas: PCs
and peripherals, systems and storage, networking equipment, packaged software, and IT services.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and
events for the information technology, telecommunications, and consumer technology markets. IDC helps IT
professionals, business executives, and the investment community make fact-based decisions on technology
purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on
technology and industry opportunities and trends in over 110 countries. For more than 46 years, IDC has provided
strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's
leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

All product and company names may be trademarks or registered trademarks of their respective holders.

Contacts
IDC
Ray Boggs, 508-935-4603
rboggs@idc.com
or
Michael Shirer, 508-935-4200
press@idc.com

Permalink: http://eon.businesswire.com/news/eon/20100323005410/en/Hardware/IDC/IT-spending

				
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