SMBs Ready to Jump on Applications Refresh, Says IDC

<p>NORTH SYDNEY, 18th July, 2006 - Australian Small and Medium-sized Businesses (SMBs) are waking up to process optimization and opening up their wallets to enterprise applications, finds an IDC end-user survey. IDC has completed it's survey of 250 Australian SMBs on their buying behaviour and intentions of enterprise software, and a report titled "Australian Enterprise Applications Buying Behaviour and Intentions Survey for the SMB Market, 2006" was released today.</p>
<p>This year's enterprise applications survey heralds the coming of a positive year for solutions providers in the SMB segment. Buyers have affirmed their intention to buy more enterprise applications, apply them expansively into more business areas, and to explore the adoption of more advanced technologies.</p>
<p>IDC's report provides a current-state snapshot of the installed base across 14 software technologies. User feedback on buying behaviour and revenue opportunities was analysed in 12 vertical markets. The hottest prospects were also discussed in the context of decision levers, vendor criteria and brand awareness.</p>
<p>IDC findings include:
# Many SMBs have already made multiple first-time investments in business systems to solve operational issues; the decision drivers for subsequent software purchases suggest that future investments will be more long term and strategic
# This year, more SMBs have cited establishing business-wide IT strategies and technology selection as their biggest challenges in making investment decisions, leaving behind the cautionary concerns of budget constraints.
# The &lt;100-employee small business segment has displayed some of the greatest improvements in buying sentiments, most significantly for Human Resource, ERP and hosted CRM applications.</p>
<p>"IDC's survey revealed that conditions underpinning software market growth in the SMB segment now exist – low penetration of enterprise applications in critical business activities; significant improvement in SMB's overall attitude towards the use of enterprise applications; and an impending refresh of pre-millennium software installations, across the board," says Chris Chong.</p>
<p>"Vendors simply need to segment the market deeper to uncover these opportunities, and couple that with an upgrade or migration offering, sales efficacy will increase," added Mr Chong.</p>
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<p>For press enquiries please contact:
Chris Chong
Market Analyst, Software
Phone: 61 2 9925 2250
Email: cchong@idc.com</p>
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<p>Click here to view the press release online:
http://www.idc.com.au/press/release.asp?release_id=243</p>
<p>Click here to subscribe to IDC press releases and newsletters online:
http://www.idc.com.au/newsletters/register/</p>

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