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SME:
Datamonitor Exploiting the SME opportunity
Market Study January 2005
Introduction
Small and medium-sized enterprises (SMEs) are one of the fastest growing ICT opportunities, but are notoriously hard to target. Evolving distribution and hosting models make SMEs more approachable than ever.
Scope
- The report details the markets for hardware, telecoms, software and services in the SME space.
- Market characteristics for Western Europe by country.
- Market sizes and projections from 2003 to 2007.
- Growth of the SME space by four different size-bands.
Report Highlights
The Internet has transformed the way all companies conduct business. However, it is the SMEs that are perhaps in the best position to leverage the power of a network-based business model. Unhindered by legacy systems or entrenched processes and cultures, SMEs can take advantage of the range of benefits associated with conducting business online.
There is a strong regional divide arising from the different rates of progress in eBusiness development within the EU, generally perceived as between the Nordic/Western and the Southern European member states. While some countries are fast adopters of eBusiness the situation is entirely different in regions with less well-developed economies.
Financial services, public sector and manufacturing represent the bulk of the SME opportunity.
Reasons to Purchase
- Discover where to focus in the SME space to maximize returns.
- Understand how the individual market characteristics of different sized SMEs affects their buying patterns.
- Learn which vertical markets in the SME space will be most receptive to ICT and how to target them.
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3 |
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Introduction |
3 |
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Market context |
3 |
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Market opportunities |
4 |
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Country comparisons |
5 |
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CHAPTER 2 INTRODUCTION |
12 |
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What is this report about? |
12 |
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Who is the target reader? |
12 |
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How to use this report |
12 |
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Forecasts and assumptions |
12 |
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Scope of the report |
13 |
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CHAPTER 3 MARKET CONTEXT |
15 |
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Introduction |
15 |
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Key findings |
15 |
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Segmenting the SMB sector |
16 |
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Number of employees per company sizeband |
16 |
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Where companies are on the ICT adoption curve |
17 |
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What is really driving the SME market? |
19 |
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Simplicity and ease of use allow SMEs to install more sophisticated solutions |
19 |
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Value for money and a fast and visible return on investment |
20 |
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Outsourcing gives SMEs access to ICT support |
20 |
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Bundled solutions lead to a one-stop shop taking the complexity out of managing separate systems and providers |
21 |
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Moving to bundling of services rather than just products |
21 |
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Reliability and flexibility are high on any SMB's wish list |
22 |
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Broadband access technologies have opened up a plethora of enterprise-type communication solutions |
22 |
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Not everyone is convinced by broadband |
23 |
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Initiatives to increase ICT uptake among SMEs |
24 |
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SMEs are still reluctant to do business online |
24 |
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Investment concerns still hinder ICT uptake |
25 |
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Making loans easier to obtain |
25 |
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Lack of IT staffing |
25 |
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Localization means cultural and language restrictions |
26 |
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SMEs are notoriously cautious when it comes to new ICT |
26 |
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Security is becoming a bigger issue for small firms |
26 |
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Sweating the assets |
27 |
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What SMEs want on the technology and services front |
27 |
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Networking technologies |
29 |
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SMEs must understand how to calculate a clear ROI and TCO |
30 |
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Applications |
31 |
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IT services |
32 |
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Managed services prerequisites |
33 |
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Telecoms - voice and data |
35 |
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A new threat: Skype Technologies takes aim at established players |
36 |
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BT is fighting back in the UK |
37 |
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What will make the difference for incumbents and new entrants alike? |
37 |
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ROI, TCO and the implications of other TLAs for SMEs |
38 |
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Understanding small businesses |
38 |
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Understanding medium businesses |
39 |
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CHAPTER 4 MARKET OPPORTUNITIES |
41 |
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Introduction |
41 |
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Key findings |
41 |
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Country comparisons |
41 |
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Variations exist |
42 |
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Benelux |
43 |
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Total market size by technology |
43 |
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Total market size by vertical market |
44 |
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France |
45 |
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Total market size by technology |
45 |
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46 |
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Germany |
47 |
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Total market size by technology |
47 |
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Total market size by vertical market |
48 |
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Italy |
49 |
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Total market size by technology |
49 |
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Total market size by vertical market |
50 |
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Scandinavia |
51 |
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Total market size by technology |
51 |
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Total market size by vertical market |
52 |
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Spain |
53 |
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Total market size by technology |
53 |
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Total market size by vertical market |
54 |
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UK |
55 |
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Total market size by technology |
55 |
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Total market size by vertical market |
56 |
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CHAPTER 5 ACTION POINTS |
57 |
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Focus on financial services, public sector and manufacturing SMEs with more horizontal strategies elsewhere |
57 |
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Telecoms is the single biggest area of SME ICT spend followed by hardware |
57 |
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The UK, Germany and France are the biggest geographic targets and will require special attention |
58 |
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CHAPTER 6 APPENDIX |
59 |
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Definitions |
59 |
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Research methodology |
60 |
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Future readings |
60 |
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SPP writing team |
60 |
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How to contact experts in your industry |
61 |
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List of Tables |
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Table 1: Total SME IT spend in Benelux ($m), 2003-2007 |
43 |
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Table 2: SME IT spend split by verticals in Belgium ($m), 2004 |
44 |
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Table 3: Total SME IT spend in France ($m), 2003-2007 |
45 |
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Table 4: SME IT spend split by verticals in France ($m), 2004 |
46 |
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Table 5: Total SME IT spend in Germany ($m), 2003-2007 |
47 |
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Table 6: SME IT spend split by verticals in Germany ($m), 2004 |
48 |
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Table 7: Total SME IT spend in Italy ($m), 2003-2007 |
49 |
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Table 8: SME IT spend split by verticals in Italy ($m), 2004 |
50 |
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Table 9: Total SME IT spend in Scandinavia ($m), 2003-2007 |
51 |
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Table 10: SME IT spend split by verticals in Scandinavia ($m), 2004 |
52 |
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Table 11: Total SME IT spend in Spain ($m), 2003-2007 |
53 |
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Table 12: SME IT spend split by verticals in Spain ($m), 2004 |
54 |
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Table 13: Total SME IT spend in the UK ($m), 2003-2007 |
55 |
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Table 14: SME IT spend split by verticals in the UK ($m), 2004 |
56 |
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List of Figures |
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Figure 1: Segmenting the SME sector |
4 |
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Figure 2: Segmenting the SME sector |
17 |
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Figure 3: What SMEs want |
28 |
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Figure 4: SME end-to-end solution |
33 |
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Figure 5: Telecoms and managed services overview |
36 |
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Figure 6: Total SME IT spend in Benelux ($m), 2003-2007 |
43 |
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Figure 7: SME IT spend split by verticals in Benelux ($m), 2004 |
44 |
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Figure 8: Total SME IT spend in France ($m), 2003-2007 |
45 |
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Figure 9: SME IT spend split by verticals in France ($m), 2004 |
46 |
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Figure 10: Total SME IT spend in Germany ($m), 2003-2007 |
47 |
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Figure 11: SME IT spend split by verticals in Germany ($m), 2004 |
48 |
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Figure 12: Total SME IT spend in Italy ($m), 2003-2007 |
49 |
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Figure 13: SME IT spend split by verticals in Italy ($m), 2004 |
50 |
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Figure 14: Total SME IT spend in Scandinavia ($m), 2003-2007 |
51 |
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Figure 15: SME IT spend split by verticals in Scandinavia ($m), 2004 |
52 |
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Figure 16: Total SME IT spend in Spain ($m), 2003-2007 |
53 |
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Figure 17: SME IT spend split by verticals in Spain ($m), 2004 |
54 |
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Figure 18: Total SME IT spend in the UK ($m), 2003-2007 |
55 |
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Figure 19: SME IT spend split by verticals in the UK ($m), 2004 |
56 |
For full details, please email jeremyk@cmsinfo.com
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