SMEs equipping with better IT than large firms

Small organisations are investing considerably more per head in their IT infrastructures and going for more modern systems than bigger companies. However, they need more support and are failing to realise the benefits of outsource contracts. Those are among top line findings from a survey conducted by computer systems manufacturer Dell and the Institute of Directors across all industrial and commercial sectors. The research also shows that more than four out of five (84%) SMEs consider technology a key factor in helping to grow their businesses. Also, almost three quarters (73%) cite productivity as the main reason for their investment. It indicates that whereas most view SMEs as laggards or at best followers of IT initiatives, in fact the inverse is the case, with investment particularly in SANs (storage area networks), solid mobile technology and remote connectivity very high. Indeed, almost two thirds of SMEs use wireless technology and 25% have a wireless LAN, while 57% indicate they use wireless systems every day. Martin Voyce, director and general manager of Dell’s mid market business, says: “That’s higher than I would expect: we see them deploying mobile technology now.” But with price and performance parity now between desktop and mobile systems, it appears SMEs are taking advantage. Professor Jim Norton, Senior Policy Advisor to the IoD explains, “SMEs could teach many large businesses a thing or two about really sweating their ICT investments. Once they can see bottom line business advantage, they are very fleet of foot in grasping the opportunities offered by ICT – such as mobile working.” However, the survey also shows that SMEs want more education and support around the technology, security, set-up, management and getting more out of it. “They want advice from patch management to pre-emptive fixing. We need to simplify and de-mystify wireless systems just as we did storage a few years ago,” comments Voyce. Other findings: the average SME IT budget is £160,000 per annum across all sectors, but for users with up to 10 employees, the average figure is £13,500, while for companies up to 100 employees it’s £500,000, indicating a disproportionately high spend in smaller firms in line with investment in IT infrastructure beyond desktops. Beyond that, fully 50% of companies plan to migrate from Unix to Windows or Linux platforms, with most looking to the benefits of open source. More importantly, 54% say they’re worried about business continuity, and with Dell last year finding 43% still without disaster recovery, they should be. “It’s absolutely amazing,” agrees Voyce. He’s also surprised by SMEs’ reluctance to outsource their IT. “Only 7% do, which is the inverse of large companies.” And he adds: “One third of them are unaware of tax breaks for PC purchases and 50% are unaware of the WEE directive and their responsibilities next month for disposal. If they outsourced, the responsibility would be that of the leasing company.”