SMEs wary about 2003

IDC report suggests technology budgets will remain flat

Unlike last year, SMEs are increasingly cautious about their technology budgets for 2003, according to a new report.

The survey of 1,236 SMEs in the UK, France, Germany, Italy and The Netherlands by analyst IDC found that half expected IT budgets to remain flat, with 30 per cent - largely the top-end SMEs - expecting an increase. One in five expected budgets to fall.

Laura Calligarich, research analyst at IDC, suggested that negative economic signals had hit SME confidence.

"The signs from Europe's economies are leading to caution. There are also many technologies whose benefits are unclear to businesses," she said.

Tony Kingston, marketing manager at reseller Deverill, said that SMEs were also becoming cautious about their suppliers.

"SMEs want to work with people that are able to provide a wide range of products and services," he said.

"A VAR should also educate customers about technology benefits and total return on investment that is available."