SMB IT spending to soar as new tech levels playing field - IDC
Small firms can better compete with larger players thanks to digital technologies, analyst claims
IT spending by SMBs is set to jump in the coming years, according to IDC, which claims new tech such as cloud and big data is levelling the playing field.
The analyst claims that this year, SMBs on a global basis will spend $564bn on IT hardware, software and services. By 2020, this number will surge to $668bn, representing a compound annual growth rate of 4.2 per cent.
IDC said that the emergence of the Third Platform - the term it applies to new digital trends - has helped SMBs considerably.
In western Europe, SMBs show "strong interest" in adopting new disruptive technologies, IDC added, claiming that more than 99 per cent of companies in the region count as SMBs. Collectively, they spent $154.3bn in 2016.
Angela Vacca, research manager for customer insights and analysis, IDC said European SMBs have been "so far deeply rooted in their local market" in the past, but today have the opportunity to become "more visible across borders", thanks to things like the Internet of Things, robotics, cognitive systems and 3D printing.
"The adoption of all these technologies is creating new opportunities and, as a result, demand for highly skilled workers is also increasing across all vertical markets in the SMBs segment."
Andy Trish (pictured), managing director of Cornwall-based SMB reseller NCI Technologies, said that things are becoming easier for smaller companies.
"We have customers in Canada, Australia, South Africa, and all over Europe," he said. "It's become easier to work globally as an SMB if you have the right strategy.
"The issue I do have is supply, in the sense that I cannot supply Australia without an Australian account and company. I can work there but I can't buy things [from trade] unless I have an Australian presence. You would have to go down there and have a virtual office and open a bank account, and for an SMB it can be difficult and costly."
He added that there is an opportunity for distribution to step in and improve things for its SMB resellers.
"Tech Data, for example, have distribution in America and other countries, and they don't have the facilities to have one [global] account. I can't buy from Tech Data in the UK and get it sent to Canada or America from their offices there - it's not one account. It's getting there, but it's not there yet."
Kelvin Kirby, CEO of Technology Associates, agreed that things are looking good for 2017.
"I would generally agree and I think regarding 2017, I am very optimistic," he said. "Some of the tools available [to SMBs], like Power BI, allow that interrogation of big data. Whereas before, that sort of thing was seen to be in the realm of the large-scale data providers and so on. I think absolutely, those tools allow for that to happen, even on a modest laptop. Mixed in with that, there is obviously the uncertainty about Brexit, and that's a factor. But overall, when you weigh up the pros and cons [for SMEs], there is a more advantageous landscape for business than there would have been in the past."