Increasing IT spend by Indian SMBs

CIOL Bureau
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BANGALORE, INDIA: It’s true that SMBs are the flavor of the year! Today’s SMBs are technology hungry. Despite the cost factor playing a major role in adopting technology, SMBs want customized solutions and products that cater to their unique requirements. This has led to an increase in the IT spending among SMBs.


Cashing in on this trend, IT vendors are seeing a good opportunity in this segment and are ready to help SMBs in implementing the right infrastructure.

India has a huge number of SMBs. According to some estimates, SMEs are more than 90 percent by numbers, and contribute over 40 percent of the value in the manufacturing sector.

A recent study by Zinnov Management Consulting states that Indian small and medium businesses (SMBs) spent a whooping USD 6.6 billion on IT in 07-08 which is around 30 percent of the total IT spend in India. The study further reveals that the total size of the Indian SMB space today is about 35 million units.


The above finding stands testimony to the fact that Indian SMEs are witnessing a sea change in technology adoption and are setting an example on how companies from the emerging economies are utilizing innovative technologies.

Another study by Access Markets International (AMI) Partners Inc. states that Indian SMBs, companies with up to 999 employees, are boosting their investments on Internet-related products and services, and are on track to reach US$1.26 billion this year, up a whopping 35 percent over last year. 

AMI also expects great growth in IT spends from banking, financial services, insurance, real estate, and a range of professional services. Within this, manufacturing is poised to garner the largest share of the IT spend pie.


In tune with the above findings, the Indian SMB sector is on the right track thus fuelling the growth. Lending a patient hearing to the concerns and pain points of Indian SMBs, IT vendors are in a race trying to fulfill the IT requirements of SMBs by offering cost-effective solutions.

In this special issue, CIOL brings you an overview of the Indian SMB market with industry facts and information on the rapid growth of the market and the vendor’s take.

Technology spend


Indian SMB market at 35 million units

The Zinnov study puts SMB IT spend at USD 6.6 billion in 07-08, which is nearly 30 percent of the total IT spend in India

Internet spend by Indian SMBs to cross US$1B

Half of all Indian SMBs consider Internet enablement a must, says a new AMI study

Over a million Indian SBs to buy PCs

Huge, nascent market opening up as over 40 percent of India’s 2.6M SMBs without PCs plan to go in for PCs, according to a study


Vendors focus

SAP aims at making IT affordable for SMBs

Stands as the undisputed leader in the ERP with a market share of 40 percent and 27 percent in SME market in India

Netgear focuses on SMBs

There is a close integration between storage and networking, and Netgear has brought ReadyNAS series of products for the storage requirements of the SMBs


Cisco to roll out new SMB products

SMB market is the fastest growing segment for Cisco in India and worldwide

Dell goes full steam ahead

SMB market is key priority for Dell, globally, as well as in India

Dig deep into the articles to know the growing trend of IT adoption in the Indian SMB industry and vendors’ view.