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According to a new study by AMI-Partners, small and medium businesses (SMBs) in China invested $16.7 billion on information technology in 2005. Half of this was spent on computing-related technologies including PCs, servers, printers and peripherals. While new PC adopting SMBs will continue to push computing-related spending, a shift in spending patterns is expected in 2006 among current PC-owning SMBs as their investment plans shy away from basic hardware to focus more on connectivity, software, services and business solutions, including business continuity.
In the last 12 months, almost half of China SMBs' IT spending was dedicated to computing-related areas. "As it stands now, about two-thirds of SMBs in China are still operating without a PC," said Jackie Chan, Senior Analyst at AMI. "But many of these businesses have realized that IT implementation starting with PC deployment can really help them stay competitive in the increasingly global marketplace." Survey results indicate that more than 1.7 million small businesses in China plan to purchase their first PCs in 2006.
Among the current IT adopters, however, the focus for 2006 will not be hardware-based. China SMBs will direct their attention towards faster connectivity, improving their operating environment, training their internal employees and enhancing business continuity and security measures.
AMI says that business continuity is a relatively young discipline, and as such, its importance has yet to be fully recognized. However, in light of recent global events including terrorism acts, natural disasters, and widespread epidemics, China SMBs are realizing the importance of ensuring that their business can be quickly recovered in order to minimize interruptions. Security is now seen as an important element of business continuity and security and storage investments are expected to grow hand-in-hand.
www.ami-partners.com

•Date: 7th Feb 2006• Region: SE Asia • Type: Article •Topic: BC general
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