The Macrosite for News, Analysis and Opinion about the Future of the Internet
Todd Watson

The SMB IT Spending Zeitgeist

Written by Todd Watson
12/12/2012 1 comment
no ratings
DISCUSS     Email This

It's that time of year. Google has released its 2012 Zeitgeist, telling us what's on the minds of the world's searchers.

Facebook, not to be outdone, has released the Facebook Year In Review, "a look back at the people, moments and things that created the most buzz in 2012 among the billion people around the world on Facebook."

Now, go and ask folks what they think about Facebook's ever-changing privacy controls, and we'll see if the Facebook Year In Review gets soon revised.

In Spiceworks' "State of SMB IT 2H 2012" survey, mobile is moving on up. Tablets continue to grow in SMBs and in the last 6 months, adoption has tipped to over half (53 percent) of SMBs supporting tablets on their networks. The number of companies supporting tablets (53 percent) is on the verge of reaching the 59 percent of companies who manage smartphones on their networks. Larger organizations are driving this trend towards more tablets in the workplace.

Click to enlarge. In Spiceworks' "State of SMB IT 2H 2012″ survey, mobile is moving on up. Tablets continue to grow in SMBs, and in the last 6 months, adoption has tipped to over half (53 percent) of SMBs supporting tablets on their networks. The number of companies supporting tablets (53 percent) is on the verge of reaching the 59 percent of
companies who manage smartphones on their networks. Larger organizations are driving this trend towards more tablets in the workplace.

But I'm actually more interested in a big report from a small, but growing, networking software and social business upstart located right here in Austin, Texas.

Spiceworks connects 2.2 million IT professionals with more than 1,300 technology brands, and offers its IT management software through a novel ad-supported model. In turn, it claims to "help businesses to discover, buy and manage $405 billion worth of technology products and services each year."

Spiceworks just released its semi-annual "State of SMB IT Report," a collection of statistics, trends, and opinions from small and medium business technology professionals from amongst their community.

This December's study is the seventh edition, and claims to "keep the pulse on the happenings of small and medium business IT professionals and IT departments."

First, I'm just happy to discover they still have a pulse.

The National Federation of Independent Business' "Small Business Optimism Index," which is reported monthly, indicated in its November report one of the steepest declines in its history. In fact, it has reported a lower index value only seven times since it first conducted its monthly surveys in 1986.

The Index dropped a full 5.6 points in November, bottoming out at 87.5 (In 2000, by juxtaposition, it was well above 100), indicating something was rotten in November. The Index's own web statement suggested "it is very clear that a stunning number of [small business] owners...expect worse business conditions in six months," and that nearly half are certain things will be worse next year than they are now, with a head nod to the looming fiscal cliff talks, the promise of higher healthcare costs, and the "endless onslaught of new regulations."

Chicken Little, the SMB sky is falling!

Clouds, virtualization, and tablets are driving the SMB IT spending bus
But fear not, the SMB adoption of new technology is riding to the small business rescue, or so suggests the Spiceworks SMB IT study.

The headlines? Though IT budgets are on the rise in the SMB, hiring new staff is at a standstill. But for those still standing, in the last six months, SMBs adopted tablets and cloud services in fast-growing numbers.

Here are the four key findings:

  • Tablet adoption keeps its momentum and nears smartphone levels. Hardware maintains the lion's share of IT spend in the SMB.

  • Adoption of cloud services spikes; desktop virtualization shows strong potential. (Can you say "Go long on VMWare??")

  • IT budgets reached their highest point in the last three years, while hiring freezes are up.

  • BYOD is still a hot topic, though IT pros are split on the issue.

Diving down a bit on the subject of tablets, 53 percent of SMBs now support tablets on their network, making them almost as popular as smartphones at 59 percent.

Cloud services are now used by 62 percent of SMBs, up from 48 percent in the first half of 2012.

With respect to IT budgets, they're on the rise, averaging $162K, up from $152K in 1H 2012. But only 26 percent plan on hiring IT staff in the second half.

And on BYOD, while 14 percent fully embrace the trend, 32 percent say it works well for some devices, but not for others. Digging deeper, I discovered that smartphones led with 81 percent BYOD support, while tablets only garnered 62 percent.

And somewhat ironically, there's more support for BYOD in much smaller organizations (defined here as less than 20 employees) than larger ones (50 percent in those above 250 employees).

I would encourage you to go here and register to download the full report, but the top line is this: If you're an IT vendor looking for budget flush at the end of 2012, desktops, laptops, and servers are certainly low-hanging fruit, with tablets bringing on the most growth.

And on the software front, be on the lookout for disaster recovery and storage solutions (an IT mainstay through downturns), cloud-based solutions, and virtualization software.

Whatever you do make, just make sure you make those new purchases with "Gangnam Style" -- and if you have no idea of what I'm referring to, see above with regards to the 2012 Google Zeitgeist!

DISCUSS     Email This
Current display:       newest comments first       display in chronological order
swijeyakumar
IQ Crew
Tuesday January 29, 2013 10:12:57 AM
no ratings

It is refreshing to hear that SMB IT still has a pulse. It will be interesting to see what 2013 has in store and if SMB IT can manage to weave trends into thier strategy and stay ahed of thier larger counterparts in thier industries

The ThinkerNet does not reflect the views of TechWeb. The ThinkerNet is an informal means of communication to members and visitors of the Internet Evolution site. Individual authors are chosen by Internet Evolution to blog. Neither Internet Evolution nor TechWeb assume responsibility for comments, claims, or opinions made by authors and ThinkerNet bloggers. They are no substitute for your own research and should not be relied upon for trading or any other purpose.
previous posts from Todd Watson
Todd Watson
Todd Watson   5/17/2013   1 comment
It's been 17 years since I've visited the city of Dublin, but I still have some very distinct impressions from my one and only visit.
Todd Watson
Todd Watson   5/16/2013   Post a comment
Mother's Day 2013 is a thing of the past.
Todd Watson
Todd Watson   5/15/2013   Post a comment
In advance of the IBM Smarter Commerce Global Summit in Nashville next week (see my last post for some background), IBM announced a major three-year agreement today with L'Oréal USA USA for expert procurement services using an advanced cloud analytics solution that will transform how L'Oréal USA buys from its network of North American suppliers.
Todd Watson
Todd Watson   5/15/2013   Post a comment
I'm going to be returning to the historical center of country music-dom next week, and yes, I will finally have the opportunity to visit the Grand Ole Opry House.
Todd Watson
Todd Watson   5/13/2013   6 comments
Yesterday was a really good day if you’re a Tiger Woods fan.
5
of
Paul J. Fleuranges
Digital Signage Keeps NYC Subway Straphangers on Track

5|6|13   |   3:51   |   No comments


New York's Metropolitan Transit Authority is conducting a pilot test of digital kiosks to guide subway users to where they want to go more efficiently and at lower cost.
Kim Davis
Fast Forward to the Future

4|23|13   |   2:29   |   20 comments


A look back at tech writing in the 90s makes us wonder where enterprise IT will be 20 years from now.
Wisdom of the Big Chair
NFC Moves Into the Mainstream

3|20|13   |   2:16   |   No comments


While NFC's original goal was to enhance mobile commerce applications, it is finding its way into a number of other uses, which is creating both opportunity as well as challenges for IT departments.
Second Shooter
Locked Handsets Aren't the Problem – Subsidies Are the Problem

3|13|13   |   2:09   |   10 comments


Subsidized handsets, rather than locked handsets, should be the focus of regulators. We're not getting good deals, not fostering innovation, and weakening our power as buyers.
Mitch Wagner
'Digital Nomads' Work From Anywhere & Everywhere

2|14|13   |   2:35   |   20 comments


New tools like laptops, tablets, smartphone, and wireless connectivity let us work from San Diego to Katmandu, and anywhere in between. But time management remains a problem.
Second Shooter
It's Not Tablets That Threaten the PC

2|13|13   |   2:21   |   8 comments


Blaming the PC's gloomy future on tablets is an oversimplification.
Reiter's Block
Free BlackBerry 10 Phones for Enterprises

1|18|13   |   3:06   |   No comments


Enterprises that fulfill certain requirements may receive a free BlackBerry 10 phone as part of RIM's new BlackBerry 10 Ready Program.
Wisdom of the Big Chair
Mobile Burnout Could Slow BYOD

1|11|13   |   2:44   |   No comments


Saturation in the mobile phone market could bring welcome relief to IT managers overwhelmed by the pace of BYOD.
Reiter's Block
New Mobile Tech Lets Employees Do More With Less Power

1|8|13   |   3:04   |   8 comments


With the huge number of mobile devices available, IT departments need to consider how much computing power employees need, and in what form.
Mary E. Shacklett
Financial Services Policies Lag Tech Advances

12|4|12   |   2:18   |   6 comments


Regulations haven't kept up with advances in mobile devices and credit cards.
IETV: the thinkerNet on film
5
of
Paul J. Fleuranges
Digital Signage Keeps NYC Subway Straphangers on Track

5|6|13   |   3:51   |   No comments


New York's Metropolitan Transit Authority is conducting a pilot test of digital kiosks to guide subway users to where they want to go more efficiently and at lower cost.
Kim Davis
Fast Forward to the Future

4|23|13   |   2:29   |   20 comments


A look back at tech writing in the 90s makes us wonder where enterprise IT will be 20 years from now.
Mitch Wagner
Google Launches Its Most Depressing Service Yet

4|15|13   |   2:59   |   10 comments


Google's new Inactive Account Manager lets you control how Google disposes of your accounts when you die.
Second Shooter
Argument Over Top-Level Domains Is 'Stupid'

4|11|13   |   2:07   |   3 comments


The whole Amazon.reader debate is a double-stupid. It's stupid to think that there's any e-book buyer who doesn't know Amazon's URL, and it was stupider to let ICANN launch the whole free-form TLD initiative to start with.
Kim Davis
Ladies, Your Tablet Awaits

3|21|13   |   2:22   |   37 comments


ePad Femme is the world’s first tablet “made exclusively for women.”
Wisdom of the Big Chair
NFC Moves Into the Mainstream

3|20|13   |   2:16   |   No comments


While NFC's original goal was to enhance mobile commerce applications, it is finding its way into a number of other uses, which is creating both opportunity as well as challenges for IT departments.
Wisdom of the Big Chair
Integrating Security Into Your Cloud Contract

3|19|13   |   3:35   |   No comments


Enterprises would like to move to cloud computing but are hesitant because they are concerned about providers’ ability to secure company data. Here are some tips that help to ensure that if breaches occur, the business is not left holding the bag.
Brian Baron
How Edmunds.com Collects Customer Information

3|18|13   |   1:15   |   No comments


Edmunds separates customers into segments based on the info it collects on its site and from partners, and uses that to push out custom content, said Brian Baron, director of business analytics for Edmunds.com, at Predictive Analytics Innovation Summit.
Brian Baron
How Edmunds.com Uses Analytics to Customize Site

3|14|13   |   0:47   |   No comments


The automotive website uses propensity modeling to target ads and customer registration forms, said Brian Baron, director of business analytics for Edmunds.com, at Predictive Analytics Innovation Summit.
Second Shooter
Locked Handsets Aren't the Problem – Subsidies Are the Problem

3|13|13   |   2:09   |   10 comments


Subsidized handsets, rather than locked handsets, should be the focus of regulators. We're not getting good deals, not fostering innovation, and weakening our power as buyers.
an IBM information resource
sponsored content
big blue blog
Todd Watson
Todd Watson   5/17/2013   1 comment
It's been 17 years since I've visited the city of Dublin, but I still have some very distinct impressions from my one and only visit.
an IBM information resource
sponsored content
Expert Integrated Systems: Changing the Experience & Economics of IT
In this e-book, we take an in-depth look at these expert integrated systems -- what they are, how they work, and how they have the potential to help CIOs achieve dramatic savings while restoring IT's role as business innovator.

READ THIS eBOOK
your weekly update of news, analysis, and
opinion from Internet Evolution - FREE!

REGISTER HERE
Wanted! Site Moderators
Internet Evolution is looking for a handful of readers to help moderate the message boards on our site – as well as engaging in high-IQ conversation with the industry mavens on our thinkerNet blogosphere. The job comes with various perks, bags of kudos, and GIANT bragging rights. Interested?

Please email: moderators@internetevolution.com
Internet Evolution – not for thickies
Keep Critical Data With a Knowledge Management System
Taimoor Zubair
Fortune 500 companies lose at least
$31.5 billion a year by failing to share knowledge. A Knowledge Management System (KMS) can help companies significantly reduce these costs.

CLICK FOR MORE
IT Suffers From Obama Admin's Jekyll & Hyde Approach to Privacy Rights
Ron Miller
Recently, the Obama administration has been of two minds where privacy rights are concerned. On one hand, you have an administration that vowed to
veto CISPA and mandated open data for government websites. On the other hand, you have an increasingly out-of-control Department of Justice on a fishing expedition at AP and demanding legislation to let the FBI wiretap private, encrypted communications and levy fines if a company fails to comply.

CLICK FOR MORE
IT Suffers From Obama Admin's Jekyll & Hyde Approach to Privacy Rights
Ron Miller
Recently, the Obama administration has been of two minds where privacy rights are concerned. On one hand, you have an administration that vowed to
veto CISPA and mandated open data for government websites. On the other hand, you have an increasingly out-of-control Department of Justice on a fishing expedition at AP and demanding legislation to let the FBI wiretap private, encrypted communications and levy fines if a company fails to comply.

CLICK FOR MORE
IT Suffers From Obama Admin's Jekyll & Hyde Approach to Privacy Rights
Ron Miller
Recently, the Obama administration has been of two minds where privacy rights are concerned. On one hand, you have an administration that vowed to
veto CISPA and mandated open data for government websites. On the other hand, you have an increasingly out-of-control Department of Justice on a fishing expedition at AP and demanding legislation to let the FBI wiretap private, encrypted communications and levy fines if a company fails to comply.

CLICK FOR MORE
Websites Should Consider Tougher ID Verification Policies
Alan Reiter
The apartment and house sharing service,
Airbnb, now requires members to verify their identities by demonstrating a presence on the web, and by either scanning a government ID or entering detailed personal details. Other enterprises should take a close look at Airbnb's verification policies.

CLICK FOR MORE