IDC Explores Impressive Opportunity for IT Vendors in Small and Medium-Sized Enterprises in Europe

Milan, Italy, 15 October, 1998–The findings in International Data Corporation's (IDC's) latest report challenge the traditional expectation that small and medium-sized enterprises (SMEs) in Europe are close-minded and diffident to IT. Survey results show that those SMEs who are already automated employ a vast set of IT devices and allocate a substantial portion of their overhead budget to IT expenditure.

"When you consider that in 1997, European SMEs had an average IS budget of around $150,000, this results in a $7.5 billion market in 1997 for these companies," commented Edoardo Riboldazzi, Research Analyst with IDC's European IT Vertical Markets program. "It is expected that this will exceed $8 billion by 1998."

The study sample, consisting of 4,500 automated European SMEs, has been segmented through enhanced statistical methods into four non-overlapping and exhaustive clusters. Companies included in three of these four groups, together representing more than 70% of all currently automated European SMEs, employ a vast set of IT devices and allocate a relevant amount of resources to IT expenditure.

"Customer satisfaction indexes indicate that Europe SMEs are generally satisfied by their major IT suppliers– performance," stated Riboldazzi. "Moreover, SMEs are happier on those issues where they are most demanding i.e. in quality of product and support." IDC's research shows, however, that these companies are less satisfied with software houses than hardware vendors which suggests the lack of a software offer tailored to the needs of this important market.

IDC' report European Small and Medium-Sized Enterprises? IT Opportunities (#M02EB) provides detailed analysis on European SME?s patterns of IT expenditure, attitudes towards IT and IT vendors perception highlighting business opportunities for IT vendors looking for opportunity in the Europe SMEs market. IDC's report is priced at $10,000 and is available from your local IDC office.

About IDC

International Data Corporation is the information technology industry's most comprehensive resource on worldwide IT markets, trends, products, vendors, and geographies. IDC provides data, analysis and advisory services to the world's leading IT suppliers as well as IS professionals in finance, insurance, entertainment, advertising, consumer goods and publishing. IDC's research and opinions are based on the results of more than 300,000 end-user surveys, in-depth competitive analysis, broad technology coverage, and strategic analysis. IDC is committed to providing global research with local content through its 500 analysts in more than 40 countries worldwide. Additional information on IDC can be found on its Web site at

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For more information, contact:

Meryl Salter, European Marketing Manager

Phone: +44 (181) 987 7109


Edoardo Riboldazzi, Analyst European IT Vertical Markets

Phone: +390 228457 335