Spending on information technology by the 8 million small and medium-sized businesses (SMBs) in the United States will account for approximately one-quarter of overall global SMB IT spending and more than 10 percent of all IT spending worldwide in 2012. Although U.S. SMB IT spending has more than made up the ground lost during the especially weak years of 2008 and 2009 – and is expected to exceed $138 billion in 2012 -- future levels of investment and spending growth will not be uniform across technology categories. A new study from International Data Corporation (IDC) finds that the small business segment will spend nearly twice as much as the midsize segment – and more than the entire large enterprise segment – on PCs and peripherals in 2012. The client business is expected to be particularly strong, as small and midsize businesses look to invest in a variety of PC form factors, with particularly high levels of interest in notebooks and media tablets. Small and midsize businesses will spend nearly $50 billion on packaged software in 2012, accounting for more than one-third of total U.S. SMB IT spending. More than one-quarter of total SMB IT spending in 2012 will be allocated to IT services, totaling more than $38 billion. While this level of spending is significant, it also represents a critical departure from the conventions of the large enterprise segment, where IT services account for nearly half of all IT spending. In keeping with the growing importance of IT services as company size increases, the mid-size business market for IT services will be more than triple the size of that for small firms throughout the forecast period. Systems and storage will continue to be the slowest growing IT category in the SMB space. While small and midsize business interest in servers and storage is expected to remain strong, the appeal of virtualization is expected to slow the growth of the server installed base, particularly in the midsize segment.
(Contact: IDC, Justin Jaffe, firstname.lastname@example.org,207/210-7986.)
With the U.S. economy showing signs of improvement, the U.S. tech market has been rejuvenated, according to a new U.S. tech market forecast from Forrester. The analysts forecast that the U.S. tech market growth of 7.5 percent in 2012. For 2013, Forrester is forecasting 8.3 percent growth. Including telecom services, business and government spending on information and communications technology (ICT) will increase by 7.1 percent in 2012 and 7.4 percent in 2013. The lead tech growth category will shift from computer equipment in 2011 to software in 2012 and 2013. Software growth will occur across all categories, but software-as-a-service (SaaS) applications, general business intelligence products, and specialized analytical tools will have the strongest growth. These products will help push total software sales growth up to 11.4 percent in 2012 and 12 percent in 2013.
(Contact: Forrester Research, www.forrester.com.)
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In the tangled communication service provider (CSP) market, favorable outcomes are defined by market savvy, consumer perception, agility, an innovative culture and a well-defined product offering, according to Stratecast, a division of Frost & Sullivan. Of these capabilities, customer relationship management (CRM) proves of paramount importance as network loyalty falls to the wayside in the face of wide-ranging device and application options. Furthermore, data traffic continues to compound, pushing CSPs and operational support systems/business support systems (OSS/BSS) to maintain a firm pace in these areas to compete with the large vendors that dominate this market. With the ubiquity of advanced communication technologies and broadband network access points, day-to-day business operations are grounded on networked IT. In turn, CSPs lean heavily on large OSS/BSS competitors to meet this prevailing demand; however, CSPs also look toward vendor diversity to bypass integration and development expenses. OSS/BSS merchants must remain competitive, while ensuring the predominant requirement of meeting customer’s needs in an accessible and timely manner. Innovation has driven the capabilities and availability of customizable solutions, leaving ineffectual support, meager performance, poor offerings as well as stringent product and pricing plans as futile customer retention tools.
(Contact: Britni Myers, Frost & Sullivan,210/477-8481, email@example.com, http://www.frost.com).
Worldwide IT spending is forecast to total $3.7 trillion in 2012, a 2.5 percent increase from 2011, according to the latest outlook by Gartner, Inc. This is down from Gartner's previous forecast of 3.7 percent growth for 2012. Gartner analysts said the lower growth rate has more to do with the U.S. currency than an actual decline in spending. The recent strengthening in the value of the U.S. dollar versus other currencies has resulted in the reduced growth rate. However, when looking at spending in constant U.S. dollars, Gartner analysts said IT spending is on pace to increase 5.2 percent in 2012, up from its previous projection of 4.6 percent. "Despite ongoing concerns about the global economic recovery — most notably around the resolution of eurozone sovereign-debt problems, worries about the potential for China's real estate 'bubble' to spillover and affect the rest of the economy and rising oil prices — early signs in 2012 suggest that the global economic outlook has brightened a little," said Richard Gordon, research vice president at Gartner. Gartner analysts said IT spending in the government sector is expected to contract moderately on a global basis in 2012 and 2013, driven by austerity measures in the eurozone. While there has been much commentary about the need for government cuts since the sovereign debt crisis emerged in Europe, it is only now that the impact of government budget cutbacks is being felt on IT spending in the region. Similarly, we expect U.S. government spending to be essentially flat in 2012 before contracting in 2013.
(Gartner, Christy Pettey, 408/468 8312, firstname.lastname@example.org).
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