SMB’s IT Purchasing Habits and the Studies that Figure Them Out

Here is an assumption you can take to the bank, the percentage of SMBs that buy new IT equipment, both hardware and software, will be far less than their enterprise level equivalents. This is business class 101 and the assumption pretty much holds water 99% of the time. This assumption is so bullet proof in fact that most hardware and software vendors assume it as they prep products for the market.

So when I see whole studies that proof this point again and again, regardless of the current economy, I sort of wonder if those companies who do such studies are having a slow week or perhaps getting ready for a new video game or movie release.

Actually that is overly harsh, those sort of studies are needed if only to reinforce that up is in fact up, down is in fact down, and that SMBs don’t spend a great deal of money updating on the latest and greatest gear (preferring to spend their money on frivolous things like salaries).

What bothers me about such studies is when people report it as if its an incredible find. I just got through reading a number of blogs on the CDW IT Monitor study. CDW of course is a fairly large wholesale computer seller. The report concluded, surprise surprise, that SMBs are planning to spend less than other company types (such as enterprise or government agencies).

Another thing some people do not consider when it comes to equipment purchasing is tax breaks. The average enterprise level company will spend quite a bit on equipment in order to incur large tax breaks to offset their earnings. SMBs are in a delicate situation in that they need to balance salaries, company expansion, and miscellaneous overhead costs to the need to buy new equipment. Often times new equipment takes a back seat. So CDW IT Monitor, SMBs not buying new equipment, but will maintain their current infrastructure. Big whoop.