For IT Spending & Budgeting Professionals

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Executive Summary

IT spending among small and medium-size businesses (SMBs) is growing more quickly and healthily than the IT budgets of large enterprises. Well aware of this trend, technology providers in Europe have been fine-tuning their SMB strategies to address a diverse market, where typical companies spend anything between €370,000 and €2 million annually on IT — depending on company size, territory, and industry factors. Companies with between 500 and 999 employees are rapidly increasing their hardware investments and are keen to implement software that helps them manage their growing operations. However, given SMBs' limited staff numbers and IT skills, vendors will have to rethink their SMB-oriented packages to offer solutions rather than technologies. SMBs won't care about the technical specifications of an application server, for example, but will choose to buy based on the price, ease of use, integration, support, or financing options that the supplier offers. New demands associated with open source alternatives and the ever-larger influence of direct hardware purchasing will add to the challenges for vendors this year.

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