IDC Predicts Double-Digit Growth in the IT Spending of the Small-, Medium-, and Medium-Large-Sized Businesses in APEJ in 2007

November 01, 2006

Singapore and Hong Kong, November 01, 2006 – In IDC's latest IT market prediction of the Small-, Medium-, and Medium-Large-Sized Businesses for the Asia/Pacific excluding Japan (APEJ) region, IT spending for the APEJ Small-, Medium-, and Medium-Large-Sized Businesses is predicted to exceed US$52 billion in 2007, registering a double-digit growth of 10% over 2006. In-depth findings are published in the recently updated IDC report, Asia /Pacific (Excluding Japan) Small-, Medium-, and Medium-Large-Sized Businesses: 2006 Market Overview and Prediction for 2007 and Beyond (Doc# AP747101N ).

"Technology providers or vendors are paying increasing attention to the Small-, Medium-, and Medium-Large–sized business market because of its size and rate of growth," says Walter Lee, Vice President for IDC's Asia/Pacific Consulting, Partnering and SMB Research. "Due to the highly fragmented nature of the Small-, Medium-, and Medium-Large–sized business segment, efforts need to be targeted in a focused manner. The key to reach the segment effectively is to define an efficient channel strategy by partnering with vertical industry-specific solution partners who possess deep domain expertise and have access and proximity to local industry clusters.”

IDC forecast that the market will grow from US$43 billion in 2005, to US$66 billion in 2010. This represents a compound annual growth rate (CAGR) of 9.1% over the forecast period. IT spending of Small-, Medium-, and Medium-Large-Sized Businesses in India continues to lead the growth at 16.9% in 2007, followed by that of Greater China, at 11.9%. In 2007, IT spending of Small-, Medium-, and Medium-Large-Sized Businesses in Greater China is projected to make up more than 38% of the total IT spending in APEJ.

It is also critical to engage the Small-, Medium-, and Medium-Large–sized businesses at every stage of technology use. The smallest companies have the greatest technology needs, the lowest spend levels, and the least brand loyalty. However, technology providers or vendors who provide companies with affordable access to resources, which in turn enables growth, will have a distinct advantage over those waiting for startups to reach a critical size or spending level before engaging them.

Asia/Pacific (Excluding Japan) Small-, Medium-, and Medium-Large-Size Business IT Spending Share by Sub-region, 2007

Source: IDC's Asia/Pacific IT Spending and User Segmentation, August 2006

For more information about purchasing the research, please contact Selina Ang at +65-6228-7717 or sang@idc.com . For press inquiries, please contact Holly Fung at +852-2905-4225 or hfung@idc.com.

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