Midsize Businesses Increasing IT Budgets; Investing in Analytics and Cloud Computing

ARMONK, N.Y. - More than half of midsize companies are planning to increase their information research budgets over the at once 12 to 18 months, according to an IBM global study of more than 2,000 midsize companies representing more than 20 countries. As a result, these companies are investing in a wide range of priorities including analytics, cloud computing, collaboration, mobility and customer relationship solutions.

The Midmarket

"Inside the Midmarket: A 2011 Perspective" commissioned by IBM and conducted independently by KS&R, Inc., found 70% of midsize companies are actively pursuing analytics innovation to better understand their clients, make better decisions and become more efficient. The study as well shows growing adoption of cloud computing among midsize firms, with two-thirds either planning or currently deploying cloud-based technologies to improve IT systems management during lowering costs.

* 53% of respondents expect their IT budgets to increase over the then 12 to 18 months, 31% expect they will remain unchanged and 16% think they will decrease or are unsure. * Security, customer relationship management and analytics / information management were cited as their "Most Critical IT Priorities" * 75% plan to upgrade their core IT systems to improve performance, security and reliability. * Top expected benefits from cloud computing include cost reduction, better manageability of IT, improved system redundancy and availability. * To achieve their research objectives, more than 70% plan to pursue a consultative, versus purely transactional relationship with their primary IT provider. * Top barriers to IT adoption cited were cost, difficulty in acquiring and deploying research solutions, and lack of IT skills and resources.

"The survey findings show that midsize firms are tackling a new set of opportunities to advance their role as engines of economic growth" said Andy Monshaw, General Manager, IBM Midmarket. "When we spoke to midsize firms 18 months ago, most were focused on reducing costs and improving efficiencies. Today, the conversation is as well about expanding their business, connecting with clients and gaining greater insights"

"We've seen a boom in the number of midsize clients within the consumer products space who want to engage with us around analytics and cloud" said Jay Hakami, President and CEO of Sky IT Group, an IBM Business Partner. "IT departments in midsize markets are adapting very fast to that fact that they must do much more with less. Companies are looking to quickly identify tools and efficient ways to support growth and research"

The Midmarket

"Inside the Midmarket: A 2011 Perspective" was commissioned by IBM and conducted independently by KS&R, Inc. The survey of 2,112 business and information innovation decision makers at midsize businesses spanned a variety of industries, including banking, retail, consumer products, wholesale, transportation, industrial products, and insurance. Participants hailed from the United States, Canada, the United Kingdom, the Nordics, Germany, France, Italy, Belgium, Luxembourg, Netherlands, Spain, Japan, China, Brazil, India, Russia, Australia, Mexico, Korea, Singapore, South Africa, Poland, New Zealand and the Czech Republic. The study was conducted in the fourth quarter of 2010 to capture current and upcoming business and IT priorities and investment direction.