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Small Business IT Investment Picture Continues to Rebound
added: 2011-01-07

The budding recovery in IT investment that started to take shape in 2010 appears to be heading for an uptick in 2011 as small businesses report a positive outlook on IT investment for their organizations.

- Hardware outlook: Almost half of IT decision makers at small businesses (49 percent) and nine out of ten at medium size businesses (90 percent) anticipate replacing or installing new hardware in the next six months—up ten percentage points since October 2010.

- Software outlook: Sixty-one percent of IT decision makers at small businesses anticipate replacing or installing new software in the next six months.

- The small business IT Growth Monitor, which measures IT investment expectations, increased five points from October to 54, a record high since December 2007.

According to the latest CDW IT Monitor, which has been tracking IT sentiment since the beginning of the recession in 2007, 49 percent of IT decision makers at small businesses expect to replace or install new hardware in the next six months, up 10 percentage points from the October IT Monitor. The robust confidence level among small businesses is echoed in the medium business segment. Ninety percent of IT decision makers at medium size businesses expect to purchase new hardware in the next six months, also up 10 percentage points since October 2010.

Rising growth expectations among small and medium size businesses are influencing sentiment across the entire corporate sector, despite a leveling-off in the large business sector, which showed greater optimism earlier in 2010. Three quarters or more of overall corporate IT decision makers anticipate replacing or installing hardware (75 percent) or software (78 percent) in the next six months—a record high in the corporate sector since the launch of the IT Monitor in December 2007.

Unfortunately, the outlook for IT staffing is not keeping pace with investment expectations. Eight percent of corporate IT decision makers expect to cut IT staff in the next six months, up three percentage points from October 2010.

“As the economic climate improves, investing in technology will be critical for organizations seeking to increase productivity,” said Thomas E. Richards, president and COO, CDW. “Focusing on the IT refresh cycle and upgrading existing technology clearly is taking immediate precedence with decision makers over increasing IT staffing in the near term.”


Source: Business Wire

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