Global IT MNC's look to small businesses

By agencies   |   Monday, 19 June 2006, 19:30 IST
Printer Print Email Email

NEW DELHI: Big multinationals like Cisco, Oracle, EMC, Microsoft, Intel, HP and the rest of the like are tracking small and medium businesses (SMEs) with their diverse product offerings; and they are all ready to prove that it?s the right thing to do. Access Markets International (AMI), a market research firm, stated that there are 7 million IT firms in India with a IT penetration of less than 2 percent of their turnover. With an alignment of businesses to global needs, these small businesses (companies with less than 1000 employees and a turnover less than $100 million) are set to raise their It spending. AMI reports that these SMEs are expected to give a boost to their IT infrastructure spending up by 26 percent since last year, to $7.7 billion. Certain estimates state that information solution needs are growing at 150 percent per annum, setting up an untapped market for global corporations that are developing customized applications and solutions. Rajeev Mittal, group director, small and mid-markets, Microsoft India says, ?In 2004, 10-15 percent of the total IT spend was by SMEs and this is set to rise to 50-60 percent by 2008-09.? The IT value chain of small businesses comprises of businesses with accounting and financial management software to supply chain and customer relationship software management. While Microsoft India gains 45 percent of its revenue from SMEs, 75 percent of Oracle?s customers in the Asia-Pacific region are SMEs. EMC is targeting 40 percent market share from the mid-tier segment by end 2006. EMC has just launched 12 hardware products for the SMEs.