Midsize Business IT Spending Going Up

In-StatMDR projects that midsize businesses, i.e., those with 100 to 999 employees, will spend $82 Billion (USD) on information technology in 2004 in the United States. That’s an increase of 5% over 2003.

A key driver of growth: midsize firms are increasingly investing in solutions for their remote and mobile workers.

According to In-StatMDR, a market research firm, the midsize business market represents 15% of the IT market overall in the United States. It’s the third largest market after the enterprise market and the small business market.

The statistics here are useful. But perhaps the most useful aspect of this report is the way In-StatMDR has clearly segmented the “small and midsize business” market according to size, in this case employee size. That’s crucial to successful selling in this market. Just think of the differences between a truly small business (say, one with 25 employees) and a midsize business (say one with 500 employees). The buying motivations, the price sensitivity, the deal size, the product needs — just about everything is different.

Anita Campbell Anita Campbell is the Founder, CEO and Publisher of Small Business Trends and has been following trends in small businesses since 2003. She is the owner of BizSugar, a social media site for small businesses.