SMBs managed services spend up 9.2 pc

SMBs managed services spend up 9.2 pc

A recent study states that the SMBs would spend US$3.6 Billion in 2009 on remote managed services

Monday, August 24, 2009

SAN JOSE, CA: Worldwide Small and Mid-Market Business overall managed services spending is expected to reach US $14.3 Billion in 2009, a growth of 9.2 per cent over 2008, said a recent study by Techaisle, a San Jose based market research and consulting firm with global coverage.

In 2010 SMBs are likely to spend US$15.7 Billion on managed services exhibiting a growth rate of 9.6 percent.

SMB worldwide spend on remote managed services would grow the fastest at 9.2 percent in 2009 and to reach US$3.6 Billion.

The trend would continue through 2012 to reach US$5.3 billion at a compounded annual growth rate of over 10 per cent from 2008.

"Tough economic times bring investment decisions into sharp focus and the result is typically lower investment levels. It also sharpens medium and longer term priorities that lead to smart investments and managed services is certainly in the radar", said Abhijeet Rane of Techaisle.

According to the study, Asia/Pacific excluding Japan is expected to grow by 12.2 per cent followed by US at 8.5 per cent. EMEA (including Western Europe, Eastern Europe, Middle East and Africa) region would grow by 6.5 per cent in 2009 and jump to 8.1 per cent in 2010.

Over 36 per cent of managed services spending by SMBs in 2009 will be made by 10-49 employee size categories making it the most lucrative target segment but also most difficult to reach.

Anurag Agrawal, Techaisle said, "SMBs are now looking beyond infrastructure investments as their respective countries slowly emerge from the global downturn. With continuing education by vendors and channels SMBs have begun embracing managed services with cautious optimism.”

Not surprisingly SMB managed services spend represents a 46 percent share of the total managed services spend of US$31.1 billion by businesses that include large enterprises with 1000+ employees.

The study that includes market sizing covers remote and onsite/remote managed services and includes sub-segments of PC management, Server/Network management, Security, Network storage and back/recovery managed services, said a press release.

SMB network and server managed services account for highest level of spending at US$3.5 Billion while PC managed services is expected to reach US$2.7 Billion in 2009.

The study that includes extensive market sizing based on primary research shows that emerging markets would have the highest growth rate at 13.7 per cent while the established markets (mature markets) are projected to grow by 8.4 per cent.

The share of emerging markets' spend will grow from 21 per cent in 2008 to over 24 per cent in 2010, said the study.

©CIOL Bureau