Vendor opportunities in verticals as SMEs post record profits, says IDC
Announcement posted by IDC 29 Sep 2004
IDC has completed its market study of the local Small & Medium Enterprise (SME) market titled, "Australian SME Vertical Market Profiles, 2004". The report explores past and future spending of Australian SMEs, product usage and acquisition by vertical industry, and aims to help IT&T vendors identify and address the needs and opportunities that this market presents. Vertical industries have varying purchasing processes and business goals, therefore need to be approached by vendors with these differences considered.
As SMEs posted record profits and the Australian economy is performing well, now is the time for vendors to look at targeting the small and mid markets. Business confidence is high, and their outlook on the economy and business opportunities are also very positive. The upgrades that SMEs are currently going through for their PC refresh cycle, present vendors with a good chance to initiate new technology adoption, while looking to invest further into their businesses infrastructure. Banking/Finance, Professional Services and Education should all be considered as potential areas of focus.
Brad Hill, IDC's SME Market Analyst commented, "The SME market space holds many opportunities for vendors, but can also be difficult to approach. A strategic view and tactical marketing must become a priority due to the differing business and IT requirements across vertical industries."
"Some vertical industries place emphasis on customer service, some on cost cutting and efficiency, while others focus on mobility. Identifying specifically where they can succeed will prove to be a much more beneficial approach," added Mr Hill.
Vendor selection in channel partners has a huge influence on their success in the SME marketplace. Vendors need to find partners that have a good reputation and expertise within different vertical sectors. Channel partnership gives vendors the opportunity to use the channels experience as a leverage to drive their own products and/or services further into the market, and consequently gain a competitive advantage.
About IDC
IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyse and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organisations. IDC is a subsidiary of IDG, the worlds leading technology media, research, and events company. Additional information can be found at www.idc.com.au.
As SMEs posted record profits and the Australian economy is performing well, now is the time for vendors to look at targeting the small and mid markets. Business confidence is high, and their outlook on the economy and business opportunities are also very positive. The upgrades that SMEs are currently going through for their PC refresh cycle, present vendors with a good chance to initiate new technology adoption, while looking to invest further into their businesses infrastructure. Banking/Finance, Professional Services and Education should all be considered as potential areas of focus.
Brad Hill, IDC's SME Market Analyst commented, "The SME market space holds many opportunities for vendors, but can also be difficult to approach. A strategic view and tactical marketing must become a priority due to the differing business and IT requirements across vertical industries."
"Some vertical industries place emphasis on customer service, some on cost cutting and efficiency, while others focus on mobility. Identifying specifically where they can succeed will prove to be a much more beneficial approach," added Mr Hill.
Vendor selection in channel partners has a huge influence on their success in the SME marketplace. Vendors need to find partners that have a good reputation and expertise within different vertical sectors. Channel partnership gives vendors the opportunity to use the channels experience as a leverage to drive their own products and/or services further into the market, and consequently gain a competitive advantage.
About IDC
IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyse and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organisations. IDC is a subsidiary of IDG, the worlds leading technology media, research, and events company. Additional information can be found at www.idc.com.au.