SMBs to put stock in managed services in 2010

SMBs are moving towards software-as-a-service as a cost-effective means of dealing with their IT woes

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SMBs to put stock in managed services in 2010 Software-as-a-service can cut costs for SMBs by outsourcing routine IT tasks to external vendors.
By  Imthishan Giado Published  January 18, 2010

According to a new survey from analysts CompTIA, Software-as-a-service (SaaS) and managed services are no longer the preserve of large organisations as SMBs are looking to the tech to lower costs.

The firm surveyed more than 400 US SMBs and found that close to 30% are planning to adopt the technology this year, up from 22% in 2009. CompTIA's report also believes that 42% of SMBs do not have a formal IT department, instead dealing with IT needs on an ad-hoc basis. As such, the managed services model with its contract-guaranteed levels of performance can offer a much more permanent solution to the cost-sensitive SMB market.

"Between 70% and 80% of the SMBs we surveyed consider the usage of ERP, CRM and online e-commerce capabilities as strategic to their business," said Tim Herbert, vice president, research, CompTIA. "IT solutions that are tied to instant return on investment in business communication and customer outreach efforts have the highest likelihood of adoption."

The survey sample included companies with between 10 and 500 employees in a range of business verticals, examining their future IT adoption plans and tracking trends in decision making over the past year.

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