Compass Intelligence Press Release
Economy 2.0 – Insights On the Current Econ Crunch, Where Small & Mid-Sized Businesses Fit In and How It All Affects The High-Tech Industry
SCOTTSDALE, Arizona, August 6th, 2008 - Research firm Compass Intelligence shows the connection between the current economic crunch and business Information & Communications Technology (ICT) spending in the US in a new 5-part series of reports called, "Economy 2.0: New Challenges & Opportunities in Business ICT Spending." The series looks at Compass Intelligence’s most recent forecast of US Business ICT spending by size of business for a number of ICT categories, includes analysis of the current economic environment and what it means to ICT vendors, as well as includes primary research with more than 20K working Americans about their perceptions of the economy and their industry.
"America is facing very serious economic conditions, which will not change overnight. This means that businesses large and small will need to become more efficient and innovate if they are to survive the current crunch," says President & CEO of Compass Intelligence, Kneko Burney. "Leveraging new technologies, particularly Web 2.0, where business customers leverage the Internet in new and creative ways to connect with their partners and customers, will drive business IT spending for the next couple years, with the greatest impacts being felt in the Small Business market (firms with less than 100 employees) and among Mid-sized Businesses (firms with 100-999 employees). Beyond 2009, I expect to see the emergence of 'Web 3.0' for commercial businesses, where firms will use a combination of social networking, content and contact management and e-commerce to generate new revenue, while improving the overall customer experience," adds Burney.
More insights from Economy 2.0:
- ICT vendors will find the most revenue growth among Small & Mid-sized Businesses, where these firms are expected to increase their ICT spending by between 6%-8% annually through 2012. Mid-sized firms are increasing their ICT spending the fastest.
- US Businesses are expected to spend $688 billion on ICT services, equipment, outsourcing and personnel in 2008. Managed & hosted services, wireless and some aspects of networking are expected to be the fastest growing categories of ICT between 2008 and 2012.
- Small Businesses (firms with 5-99 employees) account for more than one-third (32%) of US Business ICT spending in 2008 and are expected to spend nearly $280 billion by 2012.
- Mid-sized Businesses (firms with 100-999 employees) make up one of the smallest segments of the US Business market in terms of ICT spending, but are expected to increase the dollars spent the fastest between 2008 and 2012. By 2012, these firms are expected to spend more than $133 billion on ICT products, services and personnel.
Podcast: Listen to Kneko Burney speaking about how the current economic environment will affect ICT spending and the important role that SMB Businesses play at: http://www.researchcast.com/compassintelligence.
About Compass Intelligence
Compass Intelligence, a global consulting and market analytics firm, specializes in segment and vertical market intelligence for the high-tech, IT and telecom industries. Compass Intelligence offers clients a completely new research experience with a unique and intuitive online intelligence tool, INSTANT Access. The company provides market intelligence, forecasts, competitive analysis, market data, insights, and announcement analysis for multiple markets. Discover the Compass Intelligence difference and visit www.compassintelligence.com.
Company Contacts
Kneko Burney
President & Chief Market Strategist
kneko@compassintelligence.com
Amie Perez
aperez@compassintelligence.com