SMBs Investing Billions in Managed Services - InformationWeek

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8/26/2009
06:25 PM
Fredric Paul
Fredric Paul
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SMBs Investing Billions in Managed Services

A new TechAisle study reveals that small and midsize companies will spend $3.6 Billion on remote managed services in 2009, up more than 9% from last year. And SMBs will spend $14.3 billion on all managed services, up almost 9%.

A new TechAisle study reveals that small and midsize companies will spend $3.6 Billion on remote managed services in 2009, up more than 9% from last year. And SMBs will spend $14.3 billion on all managed services, up almost 9%.In addition, according to the Techaisle study, SMBs account for nearly half (46%) of all managed services purchases, which hit $31.1 billion -- including large enterprises.

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The study predicts the growth trend for remote managed services will continue though 2012s, with 10% annual growth leading to a $5.3 billion spend. Growth in the us, however, will be 8.5% during this period, faster than Europe (6.5%) but slower than Asia (12.2%).

According to a statement by Techaisle's Anurag Agrawal, "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."

The study tracked spending on remote and onsite/remote managed services and includes sub-segments of PC management, Server/Network management, Security, Network storage and back/recovery managed services. SMB network and server managed services account for the lion's share of spending ($3.5 billion in 2009) while PC managed services was pegged at $2.7 billion. the study did not include e-mail/Web-hosting, collaboration and SaaS services.

How are SMBs managing to make these investments in managed services being made in the midst of the economic downturn? Techaisle's Abhijeet Rane explained in a statement: "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."

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