IDC’s latest forecasts for Western European IT spending in the small and medium business (SMB) market show that IT spending will continue to be stronger in the midmarket than in small and large enterprises. In 2004, small and midsize businesses (1-499 employees) will account for more than half of total IT spending in Western Europe. Large companies (500-999 employees) will account for 14 per cent, while very large companies (1,000+ employees) will represent 33 per cent .
‘Midsize companies are expected to continue to benefit from a more stable financial situation, low interest rates, and increasing recognition of the value that IT can bring to their business,’ said Giuliana Folco, programme director, European Vertical Markets.
Some trends that have shaped IT spending by company size in 2003 are expected to play a role in the short term. While overall expected improvements in the economy will create a more favourable environment for investment, IDC expects a time lag between these improvements and a renewed and solid start in investment.
Prospects in the SMB market will improve in the UK and Spain in particular. Smaller companies will continue to lag in growth in the short term, while very large companies will regain leadership in IT spending growth only in 2006.
IDC recommends that IT vendors exploit opportunities in the midsize market, enhancing their go-to-market strategies, offering dedicated solutions, and finding effective partners and new efficient distribution channels to reach this market segment.
2004-02-12
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