Information Technology Spending Trends

In 2004 small and medium businesses (SMBs) spent an average of 6.6% more on information technology than in 2003. In 2005, spending will grow again, but not quite as fast -- 4.8%.



That's according to Forrester Research in a survey of over 1,000 IT decisionmakers. Here is the breakdown between small and medium businesses:




Forrester Research Chart - click for larger image



So what are SMBs going to be buying? Listen up Cisco, Symantec, Dell and Quicken (and your re-sellers and competitors). Here is what Forrester says:

"Security tops buyers' wish lists, and nearly two-thirds of SMBs will buy new servers and networking equipment this year. Dell dominates mindshare among PC buyers, who on average expect to replace one in four PCs next year. The direct channel will receive the lion's share of PC and other hardware purchases by SMBs, but buyers are split on where they'll turn for hardware support. On the software front, many are in the market for finance and accounting software, and a surprisingly high number will consider hosted apps."

The Forrester report is here (requires free registration to view the summary; full report must be purchased).