Small and medium-sized businesses can’t afford to fall behind in their technology. It’s a competitive world, and staying current with technology advances is essential for businesses to maintain their edge.
The numbers reflect that reality. In 2008, the average small business spent an estimated $38,986 annually on technology, according to a recent Computer Technology Industry Association (CompTIA) survey. In 2009, the average jumped to $64,210, a 65-percent increase. The market will continue to grow, opening the door for IT companies to grab a share. In 2010, business spending increased another 24% and is expected to keep growing.
These dollars are not just going to hardware and software, which have become less expensive. A larger share is now going to IT support services like CMIT Solutions.
Other trends have become clear in recent years, too:
- Technology is becoming more complex and advancing more rapidly.
- Small business functions, from billing to marketing to customer service, rely almost exclusively now on IT systems.
- Most small businesses don’t specialize in technology, creating more demand for dependable tech specialists.
- Technology is more widely available than ever, which means its use by small businesses will continue to increase.
- While demand for and use of technology have increased, most small businesses’ technology budgets have not, meaning prevention, predictable monthly costs and dependable services are critical to any small business owner.
- The proliferation of mobile devices (laptops, smart phones, tablets) and the additional security risks they represent are issues that most small businesses are not prepared to address.
Small and mid-sized businesses (SMBs) occupy a market niche that IT companies have largely neglected. The consulting arms of major technology companies rely on high-dollar accounts and generally ignore businesses with five to 99 employees. Individual tech consultants — the “break-fix” vendors you see driving around in branded and wrapped Volkswagen Beetles — usually can’t offer round-the-clock support, affordable bundled services or long-term relationships. CMIT Solutions has positioned itself to tap into this huge market segment.
Our market researchers have identified 2 million SMBs nationwide that meet key criteria: They earn at least $2 million every year; have been in business for at least two years; and are in industries that rely on IT. That’s 2 million businesses, and we estimate that 82 percent of them lack a strategic tech partner and take care of their IT needs in-house — which can rob any business of time, energy and efficiency.
That’s the market we serve, and the opportunity is nearly boundless.
Want to learn about the opportunity we have in your area? Start a conversation with us.