SMBs Continue to Accelerate Cloud, Virtualization Spending

SMBs Continue to Accelerate Cloud, Virtualization Spending

Small and midsize businesses are increasing their IT budgets 8 percent this year compared to 2010, and SMB demand for a range of IT services -- particularly cloud services and virtualization -- continues to accelerate, according to a recent Spiceworks survey. The findings were hardly surprising... until you look at some of the IT staffing predictions.

Roughly 3,000 SMB IT professionals worldwide participated in the Spiceworks survey, which revealed:

  • The average annual SMB IT budget is now $132,000 -- up from $121,770 last year.
  • Twenty-six percent have allocated budget to improving their hosted IT services, while another 65 percent of IT departments plan to purchase hosted IT services at some point during the first half of 2011.
  • SMB cloud computing use doubled to 28 percent of survey participants; and cloud usage will rise to 42 percent of small businesses this year.
  • Thirty-one percent of SMBs plan to hire IT staff, the largest increase in the past 18 months.
Eager to assist the cloud trend, Spiceworks has upgraded its platform to support Google Apps and Rackspace Cloud deployments for SMBs.

Of the trends in the survey only one caught us by surprise: IT staff hiring. Generally speaking, it seems like small businesses have been swapping out staff in favor of managed IT services. But perhaps the hiring uptick is more related to midsize companies that participated in the survey.

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