SMBs turning to trusted advisors rather than big brands in tough economic conditions
LONDON, 23 June 2008: Nearly half of SMBs are turning to new virtualisation technologies to help navigate the economic downturn, according to a survey of business owner/managers conducted by Star last week. The survey, of more than 100 small to medium businesses (SMBs), examined key technology challenges facing SMBs in the current economic climate.
“One of the biggest challenges facing small businesses today is access to finance, so as the economic slowdown continues, the number one priority is to do more with less, making the most of existing technology investments and using technology to respond quickly to changing business conditions,” said Ben White, chief executive of Star, the business ISP. “Virtualisation helps achieve those business needs so it is not surprising that 43% of the survey respondents see it as a key technology to help ‘crunch-proof’ their businesses.”
21% of respondents also cited a converged approach to new technology as a recession-beater, while 17% felt that availability of broadband services would have the biggest impact on their ability to safeguard against a potential recession. Emerging Web 2.0 technologies were also seen as having a role to play in helping beat current economic conditions by 10% of respondents.
With IT budgets being stretched, 43% of respondents stated that solving real business challenges and enabling them to ‘work smarter’ were the current key drivers when making technology-purchasing decisions, while 25% said proven business benefits and working with a trusted partner that understood the SMB marketplace topped their list of requirements.
Additional findings from the survey showed that:
- Only 4% said that brand reputation was a top consideration when purchasing technology, showing the importance of the channel in helping SMBs select and implement new technologies.
- The ongoing IT skill shortage is proving a challenge at the smaller end of the market, with almost a third (26%) of those surveyed stating that the biggest barrier to online growth was a shortage of people with the knowledge and experience to implement new technologies.
“Our customer’s say they want to make technology a cornerstone of their business, but need vendors to understand both the technology and business challenges they face,” said Ben White. “This knowledge must also be reflected in the product and service offerings that vendors bring to the SMB market. Small and medium-sized businesses want the same level of support that is extended to enterprise customers and are prepared to choose lesser known suppliers that deliver this, rather than large vendors who don’t.”
The survey was conducted at ‘The Road Ahead’, an event organised by Star, that brought 200 small and medium-sized businesses together with leading technology vendors, including Star, Microsoft, Juniper, VMware and BT.