Yankee Group's SMB Survey Suite Offers the Most Comprehensive View of the SMB Market

Applying proprietary Yankee Group methodology and drawing from data gleaned from SMBs with two to 1,000 employees, each of the three surveys provide IT vendors with current market trend analysis, allowing them to gain an in-depth understanding of SMB market motivators, decision influencers and behaviors regarding communications technology, business applications and web services and infrastructure and storage, respectively.

Key findings across the three surveys include:

• The 2005 spending on IT solutions ranged from $16,500 for two to 19 employee companies to $821,000 for mid-market enterprises with 500 to 1,000 employees.

• In 2005, the US SMB and mid-market-focused web hosting market was $4.4 billion and growing at a rate of 6%. The market for online marketing and advertising was $1.3 billion and growing at a very high rate of 49%.

• Software-as-a-service is rapidly gaining ground in the business applications market. More than 60% of SMBs attribute lower expense rates and increases in productivity as driving factors for adopting software-as-a-service.

• Security and backup are the top two most challenging IT issues facing SMBs. The primary obstacle to addressing these IT issues is price. Other major obstacles are high implementation time, lack of IT staff and concern that one upgrade will trigger other upgrades.

• SMBs are in need of security protection as complements to their broadband service, as more than 60% manage their own messaging needs because of privacy and data security concerns.

"These three surveys highlight Yankee Group's commitment to providing its clients with the most accurate and deepest view into the SMB market," said Steve Hilton, Yankee Group, director of Small & Medium Business Strategies. "With the detailed analysis and data provided in the surveys, service providers and vendors will be able to identify revenue opportunities and make well-informed strategic, product-planning, channel and marketing decisions when targeting SMBs in the United States."

The Yankee Group 2005 Small & Medium Business Applications and Web Survey evaluates SMB market motivators, decision influencers and behavior regarding business applications, e-commerce and web services. The survey focuses on SMBs' current and planned use of business applications, including accounting, CRM, ERP, as well as software-as-a-service. In addition, the survey measures SMBs’ interest in broadening the role of their web sites to link front- and back-office functions.

The Yankee Group 2005 Small & Medium Business Communications, Broadband and VoIP Survey is a comprehensive study of the uses of, attitudes toward and requirements of SMBs for communications and technology solutions. Examining areas such as VoIP pricing requirements, wireless usage and bundled voice and data services, the survey focuses on SMBs' current and future communication technology needs and planned spending on new telephony services.

The Yankee Group 2005 Small & Medium Business Infrastructure Survey details SMBs' need for, uses of and attitude toward infrastructure. The survey–featuring the respondents' demographic information, such as IT budget, company size and market segments–examines topic areas including computers and networking equipment, desktop and server operating systems, managed services, remote access, as well as vendor selection information and buying preferences and trends. Results for this survey will be available before the end of the year.