Australian Small Business IT Spending is Expected to Grow, Says IDC

NORTH SYDNEY – JUNE 24, 2002 – IDCs Small Business research shows that IT spending continues to be an integral part of many small businesses' attempt to improve operational efficiency as well as their ability to service existing clients and capturing new ones.


As confidence has returned to the small business sector, this sector's IT spending is expected to grow at 9.7% compound annual growth rate between 2001 and 2006.

IDC expects small business market growth to increase more rapidly after 2003 due to economic conditions. However it must be noted that market maturity and technology life cycles influence consumption of any product within a given market segment as such there is going to be significantly slower growth and in some cases a decline in more mature products such as PCs and printers, said Kourosh Ghassemi, IDC Senior Analyst, Small Business.

It is quite common to see more services and software opportunities in mature IT markets than in less developed IT markets. The Australian market is no exception, added Ghassemi.

In 2000, over 48% of the small business market value in Australia was associated with IT services and software. These segments are the fastest growing arenas and by 2006 are projected to account for over 64% of the total small business market opportunity.

The important benefits provided by software products and services ensure that small businesses will continue to make significant investments in these areas. In particular the growing adoption levels of the Internet within this sector has resulted in a significant rise in demand for software applications that assist small businesses to service their clients needs on-line, commented, Ghassemi.

With over one million small businesses and just over a quarter of the total IT spending (A$6.2 billion) in 2001, the Australian small business market represents a sizeable opportunity for all vendors. As always, service and support, ease of installation, and low maintenance cost will characterise the products and services most attractive to small companies.

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About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and eBusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts local and worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organisations, eBusiness companies and the financial community. Additional information can be found at