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Open source 'not big` in SMEs

By Iain Scott, ITWeb group consulting editor
Johannesburg, 30 Jun 2005

Open source software has not made a big impact in small to medium enterprises (SMEs), according to a report by research firm BMI-TechKnowledge - "SME IT End-User Trends and Market Forecast".

BMI-T analyst Astrid Hamilton says 74% of the 165 respondents indicated they were not currently considering the use of open source software (OSS). Fifteen percent of respondents said they were using OSS, while 11% said they were considering using it.

The picture is very different among corporates, as indicated in another BMI-T report, "SA Corporate IT User Trends 2005". Fifty-one percent of the 165 respondents in the corporate sector said they were not considering using OSS. Thirty-one percent were using OSS, while 18% were considering it.

However, analyst Roy Blume says it may be that some of the respondents in the SME sector might not be aware that they are in fact using open source, since many people equate open source software only with Linux, not realising they may be using open source e-mail or security software, for example.

However, the report also shows that open standards, referring to software that is technology and product agnostic and easily integrated between platforms, is more important to businesses than open source.

"Everyone is pushing open source, but the demand is actually for open standards," says Blume. "So you`ve got a mismatch."

Hamilton says the reports also show that in the SME sector hardware and software spend is greater than spend on IT services, with companies generally spending on IT in line with their rate of growth. The technology areas with the highest expected growth include application software, networking hardware and software, training and education services.

Corporate IT spending is also on the upswing, which Hamilton says is in line with international trends, as companies become more focused on efficiency, while still driving initiatives to realise new business and improve and maintain existing customers.

On average, corporates now spend 2.3% of their operational budget, while SMEs spend 2.1%. The report shows that 6.7% of corporates spent more than 10% of their operational budgets on IT in 2005, and this is expected to rise to 9.1% of corporates next year.

While 17% of corporate respondents spent less than 1% of their budgets on IT in 2005, this is to fall to 14.5% of corporates next year.

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