Wednesday, December 13, 2006

What SMEs Will Buy in 2007

Pretty much what they bought this year. This chart from the Bathwick Group shows tools U.K. small and mid-sized businesses, for example, say they already have in the installed base.

So if you ask what they will buy next year, what do enterprises report? Intentions to buy that mirror the size of the installed base, for the most part, as shown in the second graph.

We always want to find the growth "silver bullet," but we have yet to see a case where buying priorities changed all that much from one year to the next. Over a five-year period, one can see significant shifts, of course.

But it is unusual, highly unusual to see buying behavior at an enterprise change more than five percent or so from year to year, in part because such a large percentage of spending is upgrades to the existing base.

So whenever you hear analysts, reporters or bloggers proclaiming this the "year of the X," take it with a grain of salt. The direction is probably right. The magnitude of spending shift won't match the hype. Never does. Every year is pretty much the "year we largely do what we did last year."

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