SMEs invest to stay on top
Small businesses use technology to 'punch above their weight'
Smaller businesses in the UK are increasingly investing in new IT technologies in an attempt to become stay ahead of their larger rivals, according to a Cisco survey.
The vendor questioned 400 SMEs on their approach to new technology and discovered that, although high-speed internet connections ranked as the primary investment for 92 per cent of those questioned, 52 per cent have invested in information storage systems and 29 per cent have integrated voice communications onto their IP networks to reduce call costs.
Bernadette Wightman, head of SME businesses at Cisco UK, said: "What the survey seems to indicate is that it's the smaller, perhaps younger, businesses that are really pushing their use of technology.
"The more established businesses seem to be struggling to understand the benefits and how to implement the technologies for maximum advantage. This is likely to be a major factor in slowing their growth," she said.
The survey also questioned the 400 SMEs on how they would use a £20,000 windfall and discovered that 34 per cent would invest it in new computers and one quarter would use the funds as part payment towards communications devices. Nearly 20 per cent would use the windfall to buy PDA's for staff.
"Such a pragmatic approach to IT has usually come from larger enterprises. UK small businesses are now well aware of the importance of intellectual capital and using advanced technologies to punch above their weight," added Wightman.
Mike Lawrence, managing director of VAR Bentpenny, said staff training would also be a wise investment.
"I would invest the money in training for software, such as Citirix and Windows Server 2003, as that’s a big problem with many businesses at the moment. Keeping up-to-date with software is a sensible option and helps your business to build for the future," he said.
Cisco's research complies with a recent IDC report which predicted that worldwide IT spending will increase by 6.3 per cent in 2006 owing to economic stability in Europe, Japan and the US, combined with continued robust growth in emerging markets.