SMB Market: Key research findings
- Recent government initiatives like ‘Project Badaal’, a cloud computing platform for SMBs, to promote market growth.
- Server virtualization by SMBs across BRIC to bring down equipment cost and promote growth in this market.
Technavio has added a new report on the SMB IT market in BRIC 2015-2019, to its IT hardware and software services portfolio. Analysts estimate that this market will grow at a rate of above 10% during the period of 2014-2019. Globally the SMB market accounts for around 44% of the total IT spend. However, BRIC countries specifically account for more than 37% of the global SMB IT spend.
The new research report from Technavio discusses in detail the key drivers and trends responsible for growth, as well as the geographical segments with the maximum growth potential.
“Recent government initiatives like Project Badaal push IT enablement for SMBs by promoting cloud computing as a tool for improving efficiency and competitiveness. SMBs play a vital role in bringing about an increase in the growth and employment potential of BRIC nations. Surveys conducted by the government provide vital information to the cloud service providers so that they can fine tune their offering in this sector,” says Navin Rajendra, Lead Analyst, IT Hardware and Software Services, Technavio research.
Server virtualization of SMBs is a key trend that is expected to boost market growth. It helps to reduce equipment cost, and support cost for IT. Currently the mid-level SMB market has the highest usage of virtualized servers, while low-end SMBs are planning to adopt this technology in the near future. Close to 15% of the low-end SMBs in BRIC nations are considering a 100% virtualization of their servers.
China is expected to account for more than 43% of the total market share by 2019 and is followed closely by India, Brazil, and Russia, which will collectively account for around 56% of the total market size by 2019. The market in China is expected to reach close to $US 83 billion by 2019, growing at a rate of close to 13%. High growth rate in this region can be attributed to the adoption of high speed internet connection across the country, which in turn would boost business growth of the Chinese SMBs that are emerging in the underdeveloped western part of China.
Market Segmentation of BRIC Countries 2019
Source: Technavio Research
Among all the BRIC nations a key region to look out for is China, which analysts predict is going to grow quickly due to the unprecedented growth of the manufacturing, e-commerce, and m-commerce sector. The leading companies in the SMB market in BRIC are Accenture, Cognizant, Digital China, HP, Huawei, IBM, and Lenovo.
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