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Small business and technology

Johannesburg, 14 Jul 2005

Smaller organisations are demonstrating a willingness to allocate budget to new technology - perhaps even more so than their larger cousins.

This is the view of Mark Lu, CEO of Rectron. He says there are a number of key areas of focus for smaller organisations from a technology perspective.

"Data storage is one of them," he says. "We have seen many vendors place added emphasis on small to medium business in the development of this class of product - using the technology platforms that have been targeted at larger organisations, but simplifying the software and making the user interface more `friendly`."

"For example, a number of `mini` network attached storage [NAS] and storage area network [SANS] offerings are now being released by vendors specifically for the smaller business usage - along with a number of entry-level servers complete with 15-30 IDE device connectivity."

Lu says there are technologies that are specifically geared toward the lower end of the market - such as entry-level servers with additional storage capacities, wireless networking and mobile computing offerings - that are top sellers in many retail outlets today.

"Smaller businesses are definitely investing in these technologies as well as in all-in-one offerings such as new ADSL/firewall/routers and multifunction printers."

Lu says that, from the reseller`s perspective, the nature of small business market is unique.

"Smaller companies are often budget constrained, so their purchases are made on a `piece-meal` basis over time, often keeping pace with their own growth.

"At the same time their purchasing decisions are made more easily and quickly, as perhaps only one or two key people have budget responsibility. It is often these same people who make decisions surrounding new technology too.

"It is also becoming more evident that smaller organisations are realising the value of investing in new IT infrastructures, as they reap the productivity and cost saving benefits associated with the latest generation of products."

Lu adds that 2005 will see a significant upward trend in IT spending at the lower end of the market, particularly in higher end technology offerings.

"This is good news for the reseller community, provided that they have the necessary skills in place to take advantage of this shift in emphasis."

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Editorial contacts

Mary Siemers
HMC Seswa Corporate Communications
(011) 704 6618
Mary@hmcseswa.co.za
Mark Lu
Rectron Holdings
(011) 203 1000
Markl@rectron.co.za