Studies indicate that various macro and micro economic factors would further drive technology adoption in SMBs by 2015. With SMBs going to global market or partnering with MNCs, they require strong IT infrastructure to manage business at global level. Influx of global players is increasing the pressure of competition resulting in requirement of better efficiency with the help of IT.

In the coming years, analysts foresee that networking (e.g. wireless LAN and networking hardware), web-services related spending, storage and security are some of the IT areas that will show a greater spending by SMBs.

Management consulting firm Zinnov expects that, by 2015, there would be a virtual network of SMBs across different locations. "This network would be able to compete with large companies due to regional expertise and lower operational costs," says Kishan Bhat, engagement manager, Zinnov Management Consulting Pvt. Ltd.

Improvement in IT infrastructure like growth in broadband and mobile penetration in Tier II/III cities and rural areas along with availability of affordable customized hardware and software would be major contributing factors for increase in technology adoption among SMBs, he adds.

Tracking the growth of SMBs along the IT track, Zinnov lists out a couple of solutions and support that would enable the growth of SMBs and facilitate their economic progress.

Software-enabled solutions catering to SMBs: There would be a set of third party vendors that would use the IT infrastructure to provide services to SMBs, where they would need to just pay for the services without having the burden to invest and manage IT infrastructure.

Cloud computing solutions: SMBs need not have to necessarily invest in software licenses or make high capital investments. Zinnov expects that SMBs would be able to access applications like ERP, CRM, security solutions on 'pay-per-use' basis.

Advertisement-based revenues: Product companies are likely to focus on revenues from advertisement for SMB sector. Product companies might provide software free of cost and generate revenues from advertisements.

"Indian SMB sector is a 'Goldmine' with untapped market potential and there is an opportunity for clear market leaders to emerge. Various MNC companies have invested in SMBs in India, however there aren't any clear market leaders in any of the IT segments so far," says Kishan.

There is a tremendous opportunity for MNC hardware and product companies to tap the potential of Indian SMB market with:

• Optimum localization strategy
• Strong distribution network
• Understanding the unmet needs of SMB landscape and designing right product strategy.

Government initiatives

Even the government is doing its bit to give a boost to this fast growing sector. Zinnov has found that the government is trying to lure SMBs to adopt technologies for making their process efficient. The main idea for such a push is to make the Indian SMB fraternity face global competition. The successful e-governance modules adopted by various governments stands testimony to this.

Zinnov predicts that prominent market leaders would emerge for each IT segment catering to SMB landscape by 2015.