IDC's SMB Survey Reveals Unique Behaviors Driving Software Investment Decisions in Asia/Pacific Excluding Japan

IDC's “SMB IT Investment Trends Survey 2008 – Software and Services” revealed that a high level of expertise or support needed from the vendor is the most important factor affecting software investment decisions of mid-market companies, defined as companies with 500 to 999 employees, in the Asia/Pacific excluding Japan (APEJ) region. Relatively smaller companies, defined as companies with 100 to 499 employees, also viewed this as an important factor, but they were more concerned about Security. Small companies, defined as those with less than 100 employees, were even more concerned about the price (32% regarded it as the top factor).

Some other highlights of the study are as follows:

--The main compelling factor for the SMBs surveyed to move ahead with “software on demand” solutions was the lower cost to implement and maintain. The second most important factor mentioned was that it could ease IT staff workload. When asked why they would not use software on demand, the major factor mentioned was the concern about data security, hence their preference to have software and data on-site.

--More than half of the SMBs surveyed had full-time IT dedicated staff and viewed IT as strategic to their businesses. But still, more than 40% of the SMBs surveyed had their IT staff also handling non IT-duties.

--When buying IT Services, more than 64% of the SMBs surveyed preferred to deal with a local system integrator or service partner. Such a preference was even more important for small companies. Mid-market companies, on the other hand, preferred to deal more with the technology owners, and were more likely to use a multinational or global service provider.

--When deciding on an IT Services provider, small and medium businesses in general ranked price, local knowledge and local market experience as top priorities, while mid-market businesses viewed personal attention and the turnaround time a partner can offer them, as important decision factors.

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