microsoft smb it & hosted it index 2010€¦ · is only a comparative score and even for those...
TRANSCRIPT
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Microsoft SMB IT & Hosted IT Index, January 2010
Technology as an Enabler for Growth:
How Small and Medium Businesses Use Hosted
Services to Improve Business Performance
Microsoft SMB IT & Hosted IT Index
Summary of Results
11th
February 2010
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Microsoft SMB IT & Hosted IT Index, January 2010
Project Background and Methodology
In January 2010, Microsoft undertook research of small and medium businesses attitudes and
awareness to IT. The research also showed how the economic downturn had affected their business
performance and gauged their awareness of hosted services in light of the business advantages that
they can deliver.
Data was gathered across a total of 15 countries. The focus was on small and medium sized
businesses from 10 to 500 employees. A cross section of private sector industries was represented.
3,193 business or IT decision makers (in small businesses usually the same person) were surveyed.
The countries included were:
• EMEA (UK, France, Germany, the Netherlands, Norway, Poland, South Africa, Spain) • Asia (Australia, China, India, Japan, Singapore, South Korea) • USA
The methodology used was online research inviting opted-in, appropriately qualified individuals (the
IT decision maker) from relevant organisations. In addition, there were screening questions used to
ensure this selection process was applied. These included ensuring sole traders and people from
organisations with more than 500 employees were not invited, as well as a function question so if a
respondent was just a user of IT rather than a decision maker, they were also discounted.
Contents Introduction ........................................................................................................................................ 2
Gauging the importance of IT in running a small and medium business ........................................... 3
Small and Medium Business revenue performance during the global economic recession .............. 4
Does IT deliver a business advantage? ............................................................................................... 6
IT use amongst small and medium businesses ................................................................................... 6
How do small and medium businesses source and support IT? ......................................................... 7
The outlook for SMB use of future technologies .............................................................................. 13
Conclusions ....................................................................................................................................... 14
Introduction Microsoft’s motivation for conducting extensive research into the attitudes and awareness of small
and medium businesses worldwide was to gauge what their priorities are, how they have been
affected by the global economic downturn and what they need to be able to capitalise on an upturn
in business fortune. The research reported some expected and some unexpected results, such as a
surprisingly high revenue increase among SMBs over the last 12 months, though a large number of
businesses have seen revenues decrease dramatically. Even here though, there is ambition to
compete more effectively with big businesses and our findings show how SMBs are tackling that,
with many recognising that IT is an enabler for better business productivity and effectiveness.
This research report looks at the results and findings of the importance of IT to SMBs, revenue
performance during the recession and how this may correlate to IT, what IT tools and services SMBs
use, what they host or have on premise, and how progressive they are in terms of using the latest
technologies.
Additional analysis and graphs throughout this report are courtesy of Freeform Dynamics.
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Microsoft SMB
Gauging the importance of The organisations
interviewed for the survey
across the world exhibit a
very high reliance on IT to
help the day to day running
of their business with 86%
saying that technology is
either very important or
critical to their business.
There is clear evidence from
the research that for these
organisations at least,
technology is extremely
important to the Small and
Medium Business
community.
Norway and Japan have the lowest percentage
UK and China have the highest at 97% and 96% respectively.
that IT is critical to the day to day running of business, and this proportion is 20% greater in UK and
China. The nations most likely to report that IT complements business but is not essential, are the
Netherlands, Norway and Poland. However, the proportion of respondents in these nations to
this assertion is still less than 10%.
services are most likely to report that IT is critical to their business.
How Important is IT to the day to day running of your business?(regional responses) Critical (4)
Very important (3)
Moderately important (2)
Not important (1)
Average
How Important is IT to the day to day running of your business?(regional responses)
To
tal
Fin
an
cial
serv
ices
Critical (4) 55.5 %
65.2
%
Very important (3) 30.4 %
25.6
%
Moderately important (2)
10.7
%
8.0
%
Not important (1) 3.4 %
1.3
%
Average 3.4 3.5
Microsoft SMB IT & Hosted IT Index, January 2010
Gauging the importance of IT in running a small and medium business
Norway and Japan have the lowest percentage of heavily IT-reliant organisations
UK and China have the highest at 97% and 96% respectively. More than half of respondents reported
that IT is critical to the day to day running of business, and this proportion is 20% greater in UK and
The nations most likely to report that IT complements business but is not essential, are the
Netherlands, Norway and Poland. However, the proportion of respondents in these nations to
is still less than 10%. Respondents in computer services or telecoms
services are most likely to report that IT is critical to their business.
How Important is IT to the day to day running of your business?(regional
Total EMEA Asia
55.5 % 56.1 % 55.1 %30.4 % 29.5 % 31.4 %10.7 % 10.8 % 11.0 %3.4 % 3.7 % 2.5 %
3.4 3.4 3.4
Fin
an
cial
Ma
n. o
r en
g.
RD
T
Bu
s. & p
rof.
serv
ices
Co
mp
ute
r
serv
ices o
r
tele
com
s
Tra
ve
l, leisu
re,
en
terta
inm
en
t
Pro
p.
con
structio
n
or m
inin
g
65.2
%
55.5
%
46.0
%
57.4
%
74.1
%
48.0
% 46.8 %
25.6
%
30.8
%
37.2
%
32.8
%
20.2
%
31.0
% 34.3 %
8.0
%
11.6
%
11.8
%
7.7
% 4.9 %
15.7
% 12.5 %
1.3
%
2.1
%
5.0
%
2.1
% 0.8 %
5.2
% 6.4 %
3.5 3.4 3.2 3.5 3.7 3.2 3.2
small and medium business
reliant organisations at 71% while the
More than half of respondents reported
that IT is critical to the day to day running of business, and this proportion is 20% greater in UK and
The nations most likely to report that IT complements business but is not essential, are the
Netherlands, Norway and Poland. However, the proportion of respondents in these nations to make
r services or telecoms or in financial
Asia USA
55.1 % 52.8 %
31.4 % 33.6 %
11.0 % 8.8 %
2.5 % 4.8 %
3.4 3.3
Co
nsu
me
r
serv
ices
Ch
em
ical o
r
ph
arm
ace
utica
l Othe
r
Co
mm
ercia
l
42.9
%
55.8
%
38.6
%
41.0
%
29.5
%
26.9
%
12.8
%
11.6
%
23.4
%
3.2 % 3.2
%
11.1
%
3.2 3.4 2.9
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Microsoft SMB
Small and Medium Business revenue performance during the global
economic recession SMBs have reason to feel optimistic: t
increases for SMBs around the world, though some were obviously affected negatively and
dramatically. 2010 will give SMB
look carefully at what will enable them to be more productive and to compete more effectively.
over half of the IT-reliant organisations
around one in seven suggesting their revenues had decreased. Great
country, region, size and sector is given below.
region are most likely to report an increased revenue (even
revenues). USA however is the region where the largest proportion of decreased revenues was
reported.
The largest proportions of respondents to report an increased revenue work in the chemical or
pharmaceutical sector, and in financial services.
property, construction or mining sector reported a decreased revenue.
respondents to report an increased revenue were in the largest of the organisations
the lowest proportion to do so, and the highest to report a decreased revenue were in the smallest
of organisations.
Over 90% of the respondents to report an increased revenue, reported it to be by less than 50%.
This is consistent across all the countries, the three regions, the various sizes and all the sectors
apart from chemical and pharmaceutical
might have anticipated, the average increase is not huge for these organisations but
suggest that for an appreciable percentage of small and medium companies, the last 12 months
have not been a total disaster. Given the high proportion of IT
will be interesting to examine the role IT has pla
If we look at the two indicators together
performance), we see there is a correlation between them, though we have to be careful about
Microsoft SMB IT & Hosted IT Index, January 2010
Small and Medium Business revenue performance during the global
s have reason to feel optimistic: the worldwide view shows that 2009 did deliver some revenue
increases for SMBs around the world, though some were obviously affected negatively and
SMBs more opportunity but to capitalise on an upturn
at what will enable them to be more productive and to compete more effectively.
reliant organisations researched saw their revenues increase in the last year with
around one in seven suggesting their revenues had decreased. Greater examination of variance by
country, region, size and sector is given below.
The countries where
organisations are most
likely to have increased
revenues in the last year
are China, India and
Germany. Meanwhile,
Japan is the country
where the smallest
proportion of
organisations reported an
increased revenue and
almost half reported
decreased revenues,
followed by the UK where
over a quarter reported
decreased revenues.
Respondents in the
region are most likely to report an increased revenue (even with Japan's incidence of decreased
USA however is the region where the largest proportion of decreased revenues was
The largest proportions of respondents to report an increased revenue work in the chemical or
and in financial services. In contrast, almost a fifth of respondents in the
property, construction or mining sector reported a decreased revenue. The highest proportion of
respondents to report an increased revenue were in the largest of the organisations
the lowest proportion to do so, and the highest to report a decreased revenue were in the smallest
Over 90% of the respondents to report an increased revenue, reported it to be by less than 50%.
s all the countries, the three regions, the various sizes and all the sectors
pharmaceutical where the proportion is 86%.This suggests that, as we
might have anticipated, the average increase is not huge for these organisations but
suggest that for an appreciable percentage of small and medium companies, the last 12 months
have not been a total disaster. Given the high proportion of IT-reliant companies in the sample, it
will be interesting to examine the role IT has played in giving us such an optimistic picture.
If we look at the two indicators together (the role of IT within the business and the
, we see there is a correlation between them, though we have to be careful about
Small and Medium Business revenue performance during the global
he worldwide view shows that 2009 did deliver some revenue
increases for SMBs around the world, though some were obviously affected negatively and
s more opportunity but to capitalise on an upturn SMBs need to
at what will enable them to be more productive and to compete more effectively. Just
saw their revenues increase in the last year with
er examination of variance by
The countries where
organisations are most
likely to have increased
revenues in the last year
are China, India and
Germany. Meanwhile,
Japan is the country
where the smallest
proportion of
organisations reported an
increased revenue and
almost half reported
decreased revenues,
followed by the UK where
over a quarter reported
decreased revenues.
Respondents in the Asia
with Japan's incidence of decreased
USA however is the region where the largest proportion of decreased revenues was
The largest proportions of respondents to report an increased revenue work in the chemical or
In contrast, almost a fifth of respondents in the
The highest proportion of
respondents to report an increased revenue were in the largest of the organisations. Alternatively,
the lowest proportion to do so, and the highest to report a decreased revenue were in the smallest
Over 90% of the respondents to report an increased revenue, reported it to be by less than 50%.
s all the countries, the three regions, the various sizes and all the sectors
where the proportion is 86%.This suggests that, as we
might have anticipated, the average increase is not huge for these organisations but does perhaps
suggest that for an appreciable percentage of small and medium companies, the last 12 months
reliant companies in the sample, it
yed in giving us such an optimistic picture.
the revenue
, we see there is a correlation between them, though we have to be careful about
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cause and effect here, as two factors are likely to be underpinning this picture. Firstly, fast growing
organisations have a greater need for IT (and possibly more money to spend on it). Secondly, IT in
itself encourages more growth as a result of the enhanced efficiency and ef
Either way, it is an important observation that technology use and business performance are related,
which could be a call to action for those not taking IT that seriously.
Chart source: Freeform Dynamics
Could it be that IT is not as relevant to some types of company though
Chart source: Freeform Dynamics
The argument that ‘IT is not that relevant to us’ seem
attitudes and levels of use within each industry
between IT use and growth is seen within individual industries themselves
Microsoft SMB IT & Hosted IT Index, January 2010
as two factors are likely to be underpinning this picture. Firstly, fast growing
organisations have a greater need for IT (and possibly more money to spend on it). Secondly, IT in
itself encourages more growth as a result of the enhanced efficiency and effectiveness it enables.
Either way, it is an important observation that technology use and business performance are related,
which could be a call to action for those not taking IT that seriously.
s not as relevant to some types of company though?
The argument that ‘IT is not that relevant to us’ seems to be invalid. There are examples of all
attitudes and levels of use within each industry and within each size sector of SMB.
between IT use and growth is seen within individual industries themselves. In terms of size of
as two factors are likely to be underpinning this picture. Firstly, fast growing
organisations have a greater need for IT (and possibly more money to spend on it). Secondly, IT in
fectiveness it enables.
Either way, it is an important observation that technology use and business performance are related,
to be invalid. There are examples of all
r of SMB. The correlation
. In terms of size of
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Microsoft SMB
company, an increased focus on IT correlates with good performance to one degree or another in all
of the size categories included, tho
500 employee) segment. Taken overall, however, this corroborates the notion that IT can provide
tangible business advantage, even for smaller companies. The bottom line is that the link betwee
and performance is observed for all types of company.
Does IT deliver a business advantage?Overall, at least 9 in 10 respondents reported that larger companies had an advantage over smaller
competitors because of their dedicated and sophisticated IT
sector alone (up to 50 employees) where one may not consider IT to be as vital, this figure has still
grown from 79%, when similar research was conducted in 2008, to 85% of businesses in 2010. This
shows that the importance of IT is growing each year. It also gives us the obvious viewpoint that if
dedicated IT resources were available to the smallest organisations, then this differentiator would be
eroded.
Overall, around four-fifths of respondents thought the
more IT available regardless of cost. However, the economic downturn stopped IT investment
among one in three SMBs worldwide. This leaves
more productive and effective but cannot afford to risk high investments.
that if they cannot afford to own various IT tools then they cannot afford to have them at all. Just as
in any other walk of life, renting could be the best course of action. This repor
discuss the specific attitudes and awareness to hosted services.
IT use amongst small and medium businessesOverall, some 83.4% of respondents said that professional looking communications were either
‘critical’ or ‘very important’. For
at 61%. Spain and China are especially keen to promote a professional front
important or critical. From looking at the importance averages, three nations believe pro
tools to be slightly less than very important, being the Netherlands, Japan and South Korea. But this
is only a comparative score and even for those three countries, taking each score in isolation
suggests a very high understanding of the rol
of the organisation.
In terms of the IT used by the respondents, email
followed by back-up tools (92.4%).
Microsoft SMB IT & Hosted IT Index, January 2010
n increased focus on IT correlates with good performance to one degree or another in all
of the size categories included, though the relationship is most marked in the medium sized (200 to
500 employee) segment. Taken overall, however, this corroborates the notion that IT can provide
tangible business advantage, even for smaller companies. The bottom line is that the link betwee
and performance is observed for all types of company.
Does IT deliver a business advantage? Overall, at least 9 in 10 respondents reported that larger companies had an advantage over smaller
competitors because of their dedicated and sophisticated IT resources. In fact, in the small business
sector alone (up to 50 employees) where one may not consider IT to be as vital, this figure has still
grown from 79%, when similar research was conducted in 2008, to 85% of businesses in 2010. This
importance of IT is growing each year. It also gives us the obvious viewpoint that if
dedicated IT resources were available to the smallest organisations, then this differentiator would be
fifths of respondents thought their business would be better off it they had
more IT available regardless of cost. However, the economic downturn stopped IT investment
s worldwide. This leaves SMBs in a position where they know they could be
tive but cannot afford to risk high investments. Most SMB
that if they cannot afford to own various IT tools then they cannot afford to have them at all. Just as
in any other walk of life, renting could be the best course of action. This report will come on to
discuss the specific attitudes and awareness to hosted services.
use amongst small and medium businesses of respondents said that professional looking communications were either
‘critical’ or ‘very important’. For the small businesses surveyed in 2008, this figure was much lower
. Spain and China are especially keen to promote a professional front, over 94%
From looking at the importance averages, three nations believe pro
tools to be slightly less than very important, being the Netherlands, Japan and South Korea. But this
is only a comparative score and even for those three countries, taking each score in isolation
suggests a very high understanding of the role professional IT tools can play in the successful running
In terms of the IT used by the respondents, email is the most pervasive IT tool worldwide (95.6%),
up tools (92.4%). However, this does not mean that these tools are used by every
n increased focus on IT correlates with good performance to one degree or another in all
ugh the relationship is most marked in the medium sized (200 to
500 employee) segment. Taken overall, however, this corroborates the notion that IT can provide
tangible business advantage, even for smaller companies. The bottom line is that the link between IT
Overall, at least 9 in 10 respondents reported that larger companies had an advantage over smaller
resources. In fact, in the small business
sector alone (up to 50 employees) where one may not consider IT to be as vital, this figure has still
grown from 79%, when similar research was conducted in 2008, to 85% of businesses in 2010. This
importance of IT is growing each year. It also gives us the obvious viewpoint that if
dedicated IT resources were available to the smallest organisations, then this differentiator would be
ir business would be better off it they had
more IT available regardless of cost. However, the economic downturn stopped IT investment
s in a position where they know they could be
SMBs may believe
that if they cannot afford to own various IT tools then they cannot afford to have them at all. Just as
t will come on to
of respondents said that professional looking communications were either
the small businesses surveyed in 2008, this figure was much lower
over 94% say it is very
From looking at the importance averages, three nations believe professional IT
tools to be slightly less than very important, being the Netherlands, Japan and South Korea. But this
is only a comparative score and even for those three countries, taking each score in isolation
e professional IT tools can play in the successful running
worldwide (95.6%),
tools are used by every
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Microsoft SMB
company worldwide and indeed the research shows that
7% of financial services companies worldwide do not have any back
companies are the least likely to have website
companies in the UK are the most likely to have a website, just 3.5% do not have one.
The below chart shows which technologies people have (hosted or on premise), giving a gauge of the
sophistication of IT worldwide.
How do small and medium businessesOverall, around four in ten respondents reported they have the necessary skills to handle their IT
systems, but over half of the respondents in the USA and even more so in UK believed
capable. In contrast, the lowest proportion of respondents to report this were in Poland, South
Africa and South Korea where only around a third believed they were capable.
respondent function at this stage. Within the smalle
senior decision maker whereas in the other organisations, we would be aiming for the IT decision
maker. If IT is important to the smallest company, then it is likely that our respondent will have an IT
familiarity at the least. Of course, when researching the IT decision
companies, the vast majority will be IT professionals.
The most common source of IT software is a local IT provider, reported by almost three in ten
respondents. Over a fifth of respondents in China reported they use an IT hosting provider, making
them the most likely to do so.
Microsoft SMB IT & Hosted IT Index, January 2010
company worldwide and indeed the research shows that even in a heavily regulated industry, over
7% of financial services companies worldwide do not have any back-up tools. South African
companies are the least likely to have websites (28.8% compared to a global average of 11.8%),
companies in the UK are the most likely to have a website, just 3.5% do not have one.
The below chart shows which technologies people have (hosted or on premise), giving a gauge of the
How do small and medium businesses source and support ITOverall, around four in ten respondents reported they have the necessary skills to handle their IT
systems, but over half of the respondents in the USA and even more so in UK believed
In contrast, the lowest proportion of respondents to report this were in Poland, South
Africa and South Korea where only around a third believed they were capable. We must consider the
respondent function at this stage. Within the smallest company, this would be an owner/manager or
senior decision maker whereas in the other organisations, we would be aiming for the IT decision
maker. If IT is important to the smallest company, then it is likely that our respondent will have an IT
rity at the least. Of course, when researching the IT decision-maker in the non
companies, the vast majority will be IT professionals.
The most common source of IT software is a local IT provider, reported by almost three in ten
er a fifth of respondents in China reported they use an IT hosting provider, making
even in a heavily regulated industry, over
up tools. South African
s (28.8% compared to a global average of 11.8%),
companies in the UK are the most likely to have a website, just 3.5% do not have one.
The below chart shows which technologies people have (hosted or on premise), giving a gauge of the
IT? Overall, around four in ten respondents reported they have the necessary skills to handle their IT
systems, but over half of the respondents in the USA and even more so in UK believed they were
In contrast, the lowest proportion of respondents to report this were in Poland, South
We must consider the
st company, this would be an owner/manager or
senior decision maker whereas in the other organisations, we would be aiming for the IT decision
maker. If IT is important to the smallest company, then it is likely that our respondent will have an IT
maker in the non-smallest
The most common source of IT software is a local IT provider, reported by almost three in ten
er a fifth of respondents in China reported they use an IT hosting provider, making
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Microsoft SMB IT & Hosted IT Index, January 2010
Where do you get IT support for your business?
Total
I have the necessary skills to maintain the system and deal with problems
42.7 %
I use an IT services/support company when required
32.4 %
I have a contract with an IT services/support company that maintains our systems
24.4 %
The PC retailer provides IT support when required
19.3 %
I employ an IT professional(s) 19.0 %
A friend helps when I have a problem
15.0 %
Someone within my business has the IT skills required, but it’s not their main job
14.2 %
I use an IT Hosting provider 7.7 %
Where do you primarily buy IT software?
Total
From a local IT provider 28.7 %
From a national retailer 24.1 %
Specialist online computer stores 13.7 %
I have a consultant that takes care of all of my IT needs
10.7 %
From a network service provider/telecoms operator
9.5 %
Through a friend 4.2 % Big-brand online retailers (Amazon)
4.2 %
From my IT hosting provider 4.9 %
The local or national retailer is very important in this context as is the online merchant, but it’s much
less important than it appeared in
2008: 66.5% of SMBs buy from
one of these in 2010 compared to
around 89% in 2008.
Buying primarily from an IT
hosting supplier is still fairly low
but SMBs are becoming
increasingly aware of this option.
Awareness of hosted services is
increasing with 65 percent of
SMBs using hosted software to some extent, while 73 percent of the remainder have considered it,
compared with only 44 percent in the 2008 Index.
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Microsoft SMB
Of those respondents that are not
below shows those that are using hosted software.
Of those respondents using
hosted services, it is the
business advantage that
attracted them: almost 36%
wanted to find ways to
improve business productivity;
31% didn’t have the resources
to manage their IT; cost was
much lower at 25%.
Companies in China show their
ambition because 54% use
hosted services because
thought it would help them
compete with bigger
companies who have better IT.
Of those respondents that have considered hosting, but are not using it, the economic downturn
stopping investment (33.9%) and a lack of aware
being able to undertake it.
Microsoft SMB IT & Hosted IT Index, January 2010
Of those respondents that are not using hosted software, 72.5% have considered hosting.
below shows those that are using hosted software.
Of those respondents that have considered hosting, but are not using it, the economic downturn
stopping investment (33.9%) and a lack of awareness (25.2%) were the two top reasons for not
software, 72.5% have considered hosting. Chart
Of those respondents that have considered hosting, but are not using it, the economic downturn
ness (25.2%) were the two top reasons for not
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Microsoft SMB
In terms of opportunities for
hosting providers, three in
four (75.7%) of respondents
have considered using
hosting to IT tools that they
do not currently have.
Respondents in China are the
most likely to have
considered using hosted
services for four different IT
tools: backup,
filesharing/collaboration, e-
commerce and CRM. The
chart shown is in response to
the question: Have you considered using hosted IT services for any of th
When the research results for hosting drivers are correlated against how SMBs feel about the
importance of IT, the results are
emphasised as a driver for hosted servic
heavily to support their business)
competitiveness. At the other end of the spectrum, however, the least progressive organisations
tend to be more focused on reducing cost and the IT burden, with less emphasis on value.
Microsoft SMB IT & Hosted IT Index, January 2010
the question: Have you considered using hosted IT services for any of the following IT tools?
When the research results for hosting drivers are correlated against how SMBs feel about the
importance of IT, the results are very revealing in that access to new or advanced functionality is
emphasised as a driver for hosted services among progressive organisations (ie those that use IT
heavily to support their business) who clearly care a lot about business value, productivity and
competitiveness. At the other end of the spectrum, however, the least progressive organisations
o be more focused on reducing cost and the IT burden, with less emphasis on value.
e following IT tools?
When the research results for hosting drivers are correlated against how SMBs feel about the
very revealing in that access to new or advanced functionality is
(ie those that use IT
who clearly care a lot about business value, productivity and
competitiveness. At the other end of the spectrum, however, the least progressive organisations
o be more focused on reducing cost and the IT burden, with less emphasis on value.
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Microsoft SMB
Chart source: Freeform Dynamics
Microsoft SMB IT & Hosted IT Index, January 2010
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Microsoft SMB
Looking more closely at the IT tools used by the SMBs surveyed,
pervasive worldwide (95.6%), followed
regulated industry, over 7% of financial services companies worldwide do not have any back
tools. South African companies are the least likely to have websites (28.8% compared to a global
average of 11.8%), companies in the UK are the most likely to have a website, just 3.5% do not have
one. The below chart shows which technologies people have (hosted or on premise), giving a gauge
of the sophistication of IT worldwide.
The following charts break out the different services that are either hosted or on premise.
Chart source: Freeform Dynamics
Microsoft SMB IT & Hosted IT Index, January 2010
Looking more closely at the IT tools used by the SMBs surveyed, IT tools such as
pervasive worldwide (95.6%), followed by back-up tools (92.4%). Although even in a heavily
regulated industry, over 7% of financial services companies worldwide do not have any back
tools. South African companies are the least likely to have websites (28.8% compared to a global
1.8%), companies in the UK are the most likely to have a website, just 3.5% do not have
The below chart shows which technologies people have (hosted or on premise), giving a gauge
of the sophistication of IT worldwide.
t the different services that are either hosted or on premise.
such as email are almost
up tools (92.4%). Although even in a heavily
regulated industry, over 7% of financial services companies worldwide do not have any back-up
tools. South African companies are the least likely to have websites (28.8% compared to a global
1.8%), companies in the UK are the most likely to have a website, just 3.5% do not have
The below chart shows which technologies people have (hosted or on premise), giving a gauge
t the different services that are either hosted or on premise.
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Microsoft SMB
The services we see here are far more concerned with business differentiation from an effectiveness
point of view, i.e. they provide enhanced end user capab
within the business to work. The relationship between the emphasis on IT and such capability,
whether delivered hosted or on-
these areas being tangible enablers of business value, and as hosted solutions lower the barrier to
entry, it’s here that we see some of the greatest opportunities for business improvement.
Chart source: Freeform Dynamics
The outlook for SMB use of future technologiesIt is clear from the research that use of hosting goes hand in hand with a general emphasis on IT.
Those with more of a focus on IT are obviously seeing some advantages in going down the hosting
route. The research also indicates how many of the
the latest technologies and in some cases using them.
they would benefit from a way to unify all communication channels, such as email, mobile email,
Instant Messenger, fixed phone, mobile phone (Unified Communications). The country where this
idea was greeted most warmly was China, where over 99% said "yes".
One of the other
predicted hot
technologies of 2010
is cloud computing,
according to the
research two thirds
of the respondents
know about cloud
computing and a fifth
of the total
respondents say they
are using the
technology. Of those
Chart source: Freeform Dynamics
Microsoft SMB IT & Hosted IT Index, January 2010
The services we see here are far more concerned with business differentiation from an effectiveness
point of view, i.e. they provide enhanced end user capability and allow ‘smarter’ ways for those
within the business to work. The relationship between the emphasis on IT and such capability,
-premise, is very clear indeed. This is consistent with functionality in
tangible enablers of business value, and as hosted solutions lower the barrier to
entry, it’s here that we see some of the greatest opportunities for business improvement.
The outlook for SMB use of future technologies that use of hosting goes hand in hand with a general emphasis on IT.
Those with more of a focus on IT are obviously seeing some advantages in going down the hosting
also indicates how many of these companies surveyed are already familiar with
the latest technologies and in some cases using them. Almost four in every five respondents said
they would benefit from a way to unify all communication channels, such as email, mobile email,
one, mobile phone (Unified Communications). The country where this
idea was greeted most warmly was China, where over 99% said "yes".
Chart source: Freeform Dynamics
The services we see here are far more concerned with business differentiation from an effectiveness
ility and allow ‘smarter’ ways for those
within the business to work. The relationship between the emphasis on IT and such capability,
premise, is very clear indeed. This is consistent with functionality in
tangible enablers of business value, and as hosted solutions lower the barrier to
entry, it’s here that we see some of the greatest opportunities for business improvement.
that use of hosting goes hand in hand with a general emphasis on IT.
Those with more of a focus on IT are obviously seeing some advantages in going down the hosting
surveyed are already familiar with
Almost four in every five respondents said
they would benefit from a way to unify all communication channels, such as email, mobile email,
one, mobile phone (Unified Communications). The country where this
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14 | P a g e
Microsoft SMB
that aren’t using cloud technology so far (but are familiar with the term), the respondents are split
as to whether they would get busines
industry still has work to do in terms of educating businesses about the benefits that they would
draw from using the latest technologies, as well as
terms themselves mean. The chart above looks at the use of both hosting and cloud and shows that
those with more of a focus on IT are obviously seeing some advantages in going down the hosting
route.
It won’t come as any
surprise that use of
hosting also goes hand in
hand with good financial
performance too. Taking
a step back, there are
two primary reasons for
this. Firstly, better
performing companies
tend to outsource more
non-core activity, and IT
hosting is consistent with
this. Secondly, more progressive/growing companies are also more likely to see IT as an important
enabler, and the hosted route means they can take advantage of more advanced functionality
they can put enterprise class facilities in place that would be difficult or i
premise because of cost, resource and/or expertise constraints.
Conclusions 2010 may provide opportunities for an upturn for
success. As explored throughout the research,
enhanced efficiency and effectiveness it enables
for IT, hence hosted solutions can be the best choice for an
Hosted services are the most cost efficient way of getting high quality and professional
communications services without large investments.
such services on a subscription
access to tools that would normally be out of their reach
Microsoft SMB IT & Hosted IT Index, January 2010
that aren’t using cloud technology so far (but are familiar with the term), the respondents are split
as to whether they would get business benefit from it (46% agree they would). This shows that the IT
industry still has work to do in terms of educating businesses about the benefits that they would
draw from using the latest technologies, as well as cutting through the IT jargon to explain
The chart above looks at the use of both hosting and cloud and shows that
those with more of a focus on IT are obviously seeing some advantages in going down the hosting
re progressive/growing companies are also more likely to see IT as an important
enabler, and the hosted route means they can take advantage of more advanced functionality
they can put enterprise class facilities in place that would be difficult or impractical to implement on
premise because of cost, resource and/or expertise constraints.
2010 may provide opportunities for an upturn for SMBs and IT will be a critical factor in their
success. As explored throughout the research, IT in itself encourages more growth as a result of the
enhanced efficiency and effectiveness it enables and fast growing organisations have a greater need
, hence hosted solutions can be the best choice for an SMB in enabling and supporting growth.
ices are the most cost efficient way of getting high quality and professional
communications services without large investments. As small and medium businesses can pay for
subscription basis, per user, they can greatly minimise the cost,
access to tools that would normally be out of their reach.
-ENDS-
that aren’t using cloud technology so far (but are familiar with the term), the respondents are split
s benefit from it (46% agree they would). This shows that the IT
industry still has work to do in terms of educating businesses about the benefits that they would
cutting through the IT jargon to explain what the
The chart above looks at the use of both hosting and cloud and shows that
those with more of a focus on IT are obviously seeing some advantages in going down the hosting
re progressive/growing companies are also more likely to see IT as an important
enabler, and the hosted route means they can take advantage of more advanced functionality – e.g.
mpractical to implement on
s and IT will be a critical factor in their
lf encourages more growth as a result of the
fast growing organisations have a greater need
in enabling and supporting growth.
ices are the most cost efficient way of getting high quality and professional
businesses can pay for
basis, per user, they can greatly minimise the cost, while getting
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15 | P a g e
Microsoft SMB IT & Hosted IT Index, January 2010
Contact Information
For marketing information, please contact:
Serge Khayat, Senior Marketing Manager - Hosting / Software + Services, Microsoft Communications
Sector at: [email protected]
For press information, please contact:
For additional information on Microsoft and Hosting, visit: www.microsoft.com/hosting