SMBs shift software spend to upgrades in 2010

More than half of enterprises and nearly a quarter of SMBs will be carrying out upgrades in 2010 that were held over from the previous year.

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SMBs shift software spend to upgrades in 2010 SMBs and enterprises are shifting their spending towards upgrades, rather than new implementations, this year.
By  Imthishan Giado Published  February 23, 2010

According to a recent survey by analysts Forrester Research, more than half of enterprises and SMBs are directing their software budgets towards upgrades in the coming year. The report, published in Information Week, suggested that this focus on upgrades, rather than new implementations, is the result of a backlog that built up over the past year.

Forrester's survey of 2,200 of IT executives found that 21% of SMBs and 41% of enterprises will be up grading are looking to upgrade financial software, while 19% and 48% are looking at improving CRM applications. In industry-specific software cases, 52% of enterprises and 18% of SMBs plan upgrades over this year, says the report.

"As long as businesses are prioritising cost cutting and efficiency improvements, tech vendors must provide clearer business justifications for their offerings and demonstrate the functional fit with business requirements that their solutions provide," said Forrester analyst Holger Kisker.

The results of the survey were culled from two reports, The State Of Enterprise Software And Emerging Trends: 2010 and The State Of SMB Software And Emerging Trends: 2010, both available as part of Forrester's Business Data Services. 

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