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State of Small and Medium Business IT: Report 2011

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Executive Summary

In our last State of SMB IT Report (1H 2011), we noted a “thaw” in which renewed spending and commitment to IT spelled growth for IT vendors and service providers.

Just six months later, it’s clear that for SMBs the IT growth engine is well-warmed up and on a path of continued growth and investment. In particular, our results from this period brought forward three notable trends:
Cloud & Virtualization Services Taking SMBs by Storm
Adoption of cloud services has nearly doubled since our last measurement (which had also doubled adoption in the prior period). Virtualization is the top IT initiative among SMBs with 61% currently using it. Pages 5 to 8 of the report contain detailed information on growth and specific categories of virtualization and cloud-based services.

Tablets Taking Off
A full third of SMBs surveyed indicated they have deployed one or more tablets on their network, and more than half of SMBs are planning to use tablets in 2012. (More information on tablet purchase can be found on page 9.)

Strong IT Budget Growth
IT budgets in the second half of 2011 grew nine percent when compared with IT budgets for the first half of 2011 – the largest increase in two years. And on the staffing front, nearly one third of SMBs are planning to hire IT staff. (More information on IT hiring plans can be found on page 4.) These levels of investment and technology adoption highlight an SMB market that’s seeing a healthy or better return on IT as well as recognizing the distinct value and benefits of recent technology innovations.

Read the full State of Small and Medium Business IT, Report 2011.