Johannesburg, 03 Aug 2004
The small to medium business (SMB) market accounts for half of IT expenditure in SA and 70% of the technology purchases made by these organisations are solution-oriented.
That`s according to Gary Carroll, Director of SMB at IBM SA, who believes resellers should concentrate their energies on the SMB marketplace. "Providing solutions to the SMB sector can generate excellent cumulative value," he points out.
"Within the SMB market, the 1-99 employee and 100-499 employee organisations look set to lead growth in IT spending. Growth for these sectors is anticipated at between 10% and 13% a year until at least 2007, while growth from larger enterprise segments will be in the range of 7% to 10% for the same period."
A recent Neilsen Reel Research survey showed that over half of SMBs believe IT will be the most important factor in assisting them to achieve business objectives over the next 12 months.
A significant business for IBM for many years, the SMB market is the computer giant`s second-largest customer segment and represents 20% of its revenue. Recently, IBM stepped up its SMB offensive by updating its On Demand computing initiative and placing the channel at the centre of its SMB strategy.
Designed with the input of SMBs, the cross-company initiative will enable growing businesses to take advantage of IBM`s technology portfolio and its leadership in the On Demand era.
"As a result, IBM`s channel offers SMB customers real, affordable and secure solutions that support their business strategies for growth. The Express range is priced and designed specifically for SMBs, and delivers hardware, software, services, solutions and much-needed financing to support the emerging enterprise," Carroll says. The 10 IBM StartNow Solutions for e-business, which are created jointly with IBM Business Partners, are made with easy-to-use software applications and provide functions like managing and securing a company`s Internet infrastructure and e-commerce solutions.
In addition, IBM`s SMB offering includes dozens of secure eServers and storage technologies specifically designed and priced for the sector; a portfolio of business consulting services from IBM and its network of business partners; and a standards-based, open software approach including Linux that provides freedom of choice.
"With its On Demand computing strategy rapidly taking hold in medium business, IBM is helping its SMB customers to respond more efficiently to market demands, while remaining focused on their core business," Carroll concludes.
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