"SMB 2.0" Firms Key Target For Technology Providers

New research from IDC points to a group of small and mid-sized companies, “SMB 2.0” firms, as critical prospects for technology companies. This group accounts for 17% of all SMBs in terms of company counts, but nearly 30% of all SMB IT spending. When combined with a similar group, the “SMB 1.5 Fast Followers”, the two groups represent over 60% of all SMB IT spending. These firms will continue to be successful, and that success will translate into above average increases in IT spending per company.

SMB 2.0 firms are not just the “technology heat seekers,” who will buy anything, but rather they are the most advanced in leveraging to their benefit the kinds of advantages that technology can provide. They feel strongly that advanced technology is a competitive tool and that the Internet has transformed the way they do business internally. They make above average investments on technology to expand business as well as to manage costs. SMB 2.0s represent the future of what companies will increasingly look like on a global level.

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“Even more important than the near term appeal of the SMB 2.0 and SMB 1.5 Fast Follower clusters as high-rolling customers in the fast-growing SMB segment, are the directions in which they will lead technology providers,” said Merle Sandler, research manager for the SMB programmes at IDC. “The products and services these clusters will seek in the next 6-12 months are precisely those that other SMB clusters will be looking for in the next 2-3 years.”