For IT Spending & Budgeting Professionals

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	March 10, 2005 US IT Spending: Enterprise Versus SMB SMB Spending On IT Almost As Large As Enterprises' And Is Growing Faster by Andrew Bartels with Tom Pohlmann, Meredith Morris, Ryan Hudson, G. Oliver Young

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Executive Summary

US IT spending by small and medium-size businesses (SMBs) grew to $320 billion in 2004, representing 44% of all US IT spending. Following a similar rate of growth in 2004, US SMB IT spending is on pace to grow by 8% in 2005, while IT spending by US enterprise-class companies will rise more modestly, by almost 6% in 2005, up from 3% in 2004. As the SMB percentage of overall IT spending has continued to grow, the SMB market for information technologies and services has finally become too big to ignore. However, it differs significantly from the enterprise market, with services industries like government, healthcare, and professional services representing much more than three-fourths of all SMB IT spending.

TABLE OF CONTENTS

• Large Enterprises Still Dominate US IT Market, But SMB Spending Is Growing Faster
• Industry IT Spending By Company Size Ranges Dramatically
• IT Spending Patterns By Industry And Company Size Mirror Industry Structures

WHAT IT MEANS

• SMB Market: Difficult To Reach But Too Large To Ignore
• Supplemental Material
• Related Research Documents

This is an excerpt

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