Networking Beyond the Global 2000
Ubiquitous, cheap technology creates opportunities to tap demand from the world's small and medium sized businesses.
July 16, 2004
While most international networking technology marketing efforts have tended to focus on the largest multi-national clients (enterprises and carriers, for instance), there is increasing evidence that an extremely attractive opportunity is developing among the second, third, and fourth tier enterprises in many markets around the world.
The reason: technology prices are falling to the point where non-elites in emerging economies can afford it, and the standards-based interoperability in communications technology (especially IP networking) is boosting return-on investment for organizations large and small.
Indeed, as policy-makers in both developed and developing economies craft strategies for the rest of the decade, a growing percentage concentrates on making IT and telecommunications technology available to entrepreneurs of all sizes.
In the United States, for instance, access to broadband technology is considered critical to attracting new businesses to non-urban areas. In this hyper-competitive market, technology is seen as the equalizer that makes it possible for start-ups and established mom-and-pop shops to successfully compete against even the biggest companies.
Overseas, networking technology helps small businesses tap opportunities beyond their local and national boundaries. The fact that even traditional brick-and-mortar operations, such as retail suppliers, can now interact directly with the supply chains of foreign markets is democratizing economic opportunity.Smaller companies are investing accordingly. A recent report from AMI-Partners projects that small and medium businesses worldwide will spend $868 billion on IT and telecommunications technology in 2004. IT products and services are expected to drive approximately $528 billion of this figure, up 13% from the $467 billion spent last year. Telecommunications products and services, including VoIP services and on-premises equipment such as PBXs, will drive approximately $340 billion of the 2004 spending.
Shipments to SMBs in India will grow from 2.1 million units to 4.9 million during the same period, while shipments to Russian SMBs are expected to grow 20% annually from 1.7 million units in 2004 to 4.2 million in 2008. Strong growth in businesses adopting networking products for the first time is fueling growth in routing, switching, and wireless LAN gear, with annual spending growth rates in these categories topping 30%, and expected to grow to more than $3 billion by 2008.
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DEEP BACKGROUND
IT, Telecom Infrastructure Spending Creeping Up Worldwide - Networking Pipeline
Survey: More Than One-Third Of Software Is Pirated - Security Pipeline
The Far East Looks West - InformationWeekMicrosoft To Explore Cheap Software With Asian Governments - Information Week
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