|
|
|
|
|
Indian SMBs to Cross US$1B on Internet Spend: AMI
By
ChannelTimes Staff
Mumbai, Jul 24, 2008 1601 hrs IST
According to a recent study by New York-based Access Markets International (AMI) Partners, India's Small And Medium Businesses (SMBs, or companies with up to 999 employees) are boosting investments on Internet-related products and services, and are on track to reach US$1.26 billion this year, up a whopping 35% over last year.
"The Internet is a multi-faceted tool," says Kalyan Banga, Research Analyst, AMI Partners. "It is both a facilitator for simple tasks, as well as a key differentiator among organizations that provides them with a competitive edge in this digital era."
For medium businesses (MBs, or companies with 100 to 999 staff), the Internet has become a way of life, and has reached near-complete saturation. However, a significant growth opportunity exists within small businesses (SBs) - since only around 25% of them currently possess an Internet connection.
A year to year usage analysis reveals a similar finding - that SBs are embracing the Internet by leaps and bounds. The penetration of Internet-enabled SBs is anticipated to rise by more than four percentage points this year.
"Technology penetration for most Internet-related technologies is significantly higher for MBs, since almost all of them have stepped into the second wave of technology adoption," says Banga.
He continues, "However, there is potential here for a rise in penetration of Internet-related technologies for SBs and even for MBs in case of e-commerce, intranet, etc. For example, the strategic technology adoption attitude of SMBs indicates that adding or enhancing e-commerce capabilities is a priority of almost 28% of SMBs in the next 12 months."
Improvement of Internet speed is a must, as mentioned by more than 50% of SMBs. About 37% of respondents would like to opt for a total revamping of their Internet-access infrastructure, such as replacing or upgrading their Internet access routers. Broadband usage has taken a forward leap, thanks to the efforts of ISPs who have significantly increased its affordability and availability. A glimpse into ISPs reveals the dominance of BSNL/ MTNL and Bharti, which enjoy an SMB penetration of 44% and 33%, respectively. They are followed at a distance by VSNL/ Tata Teleservices and Reliance.
According to Banga, "Web 2.0 is one of the revolutionary Internet-related technologies that have taken the world by storm. Indian SMBs have not been too far behind in following this global trend. Web 2.0 technologies - like social networking, blogs, podcasts, etc - are gradually being adopted by Indian SMBs for information dissemination, marketing and communication modes, etc." Contextually, currently almost 10% of SMBs use social networking services. An additional 33% are aware of this technology. Usage of blogs, podcasts for advertising and promotional activities is higher among MBs.
SMBs are also heavily dependent on information sources, - like vendor websites and search engines for gaining awareness about IT products and services. These are used by about 45% of SMBs. The importance of online advertising also displays an upward trend within SMB media-related activities. The two websites that show maximum usage for online ads by SMBs are Google and Yahoo.
Related Links
Managed IT Services Gaining Ground: AMI
Indian Server Market to Grow with SMB Thrust
|
Disclaimer |
ITNation
(India) Pvt. Limited and its sites:
www.channeltimes.com, www.techtree.com
and www.cxotoday.com provide
Comments and discussion boards as a professional medium
for the various businesses of the IT industry to discuss
business problems. Gossip, personal attacks and unsubstantiated
charges are prohibited. Messages posted on this Web site
as discussion threads or Comments (Content) are solely the
opinions of their creators and do not necessarily reflect
the opinions of ITNation (India) Pvt. Limited or its sites
www.channeltimes.com, www.techtree.com
and www.cxotoday.com.
All individuals who post material to this web site are solely
responsible for all Content that they upload, post or otherwise
transmit via the Web Site. |
| ITNation
cannot vouch for the authenticity of the user or company
names or e-mail addresses associated with posted messages.
Under no circumstances will ITNation
India Pvt.Ltd. or ChannelTimes
be liable in any way for any Content, including, but not
limited to, for any errors or omissions in any Content,
or for any loss or damage of any kind incurred as a result
of the use of any Content posted or otherwise transmitted
via the Bulletin Boards. |
| ITNation
reserves the exclusive right to edit or remove messages
containing inappropriate language or other material that
could be construed as libelous, potentially libelous, or
otherwise offensive or inappropriate. Discussion forums,
bulletin boards and chat facilities are provided by ITNation
solely for the convenience of those who make use of the
service. ITNation does not endorse the products and services
or other offerings mentioned in messages. |
|
|
|
|
|
