SMBs Close 2007 with Strong Tech Spending

Ann All

As I blogged last month, lots of SMBs anticipate business growth in the coming year, with 45 percent of companies with fewer than 1,000 employees saying they expect growth of at least 10 percent, and 21 percent predicting growth of at least 20 percent, according to a Computing Technology Industry Association (CompTIA) survey.


So it's not surprising that Access Markets International (AMI) Partners forecasts that U.S. SMBs will end up spending $240 billion on technology in 2007, a healthy 16 percent increase over 2006 spending levels.


A quarter of the total will be spent on such IT services as consulting, software support, IT management, computing and network support, while another 25 percent will be spent on telecom, including cell phone service, IP centrex, local and long-distance telephony, pager services and WAN.


Middle-size businesses with 100 to 999 employees, showing increasing tech sophistication, are in what AMI-Partners calls "Wave III" of technology development, and are especially interested in leveraging their infrastructure investments to connect with external partners and suppliers.


It's this kind of continued news about SMB spending that has tech vendors trying so hard to woo SMBs. IDC predicts that tech spending by U.S. SMBs will grow by 8 percent to 10 percent in 2008, compared to 3 percent to 4 percent for large enterprises.

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