Small Businesses Putting Technology Spending Plans on Hold - Economic Uncertainty to BlamePRNewswire Technology Spending, Both for the Internet and Hardware/Software is Becoming Less of Priority in the Near Term for Small Businesses
The Trend is Likely To Continue Well into The Second Quarter
JERICHO, N.Y., Feb. 12 /PRNewswire/ -- Data from an exclusive, bi-monthly survey of 200 small business MIS executives by CRN, show that technology spending is becoming less of a priority for these companies as the first quarter progresses. The trend is across the board, extending to the Internet and e-commerce areas as well as hardware and software. The most recent version of CRN's survey, conducted in January, indicates that IT spending by small businesses will remain constrained, at least into the second quarter of this year. As part of the survey, CRN asks small business executives to characterize the degree of priority they attach to IT spending in 25 Internet and hardware/software categories in the three months following the survey date. In the January 2001 survey, the degree of priority declined?in some cases sharply?in nearly all of these categories compared to the November 2000 version of the same survey. This was true even in networking installation and upgrading, as well as desktop PCs; three areas that have been among the top spending priorities for these companies. The downward trend in the degree of priority was first seen in the November 2000 survey; the January results represent an acceleration of that treed. "The data does not bode well for small business IT spending for the rest of this quarter and well into the second quarter," says John Roberts, CRN's Director of Editorial Research. "In turn, this will have a negative impact on overall business IT spending because small companies have been a driving force behind spending growth in the past several years." The January 2001 survey data also show that factors such as budget considerations and general economic/business conditions are two key reasons behind the increased pessimism by small businesses toward technology spending. More specific factors, such as systems upgrading, are also having less of a less of a positive influence on small business spending plans. John Roberts Ph.D., Director of Editorial Research at CRN, is available to offer in-depth analysis of the survey results. For more information, or to arrange a time to speak with Dr. Roberts, please call Nancy McHugh at 949-223-3649 or email request to nmchugh@cmp.com. About CRN CRN is the nation's leading trade newsweekly that provides timely industry news and analysis for solution providers, integrators and e-businesses driving the new economy. It is the most trusted source of news for 117,500 channel professionals. A media leader in the high-tech industry, CRN provides the most comprehensive suite of online resources: http://www.crn.com/, the site where industry news breaks first; CRN Direct, a daily newsletter that brings personalized news to solution providers' desktops; and CRN News Radio, a daily news broadcast covering the solution provider channel and the industry. About CMP Media, Inc. CMP Media Inc. (http://www.cmpnet.com/) is a leading high-tech media company providing essential information and marketing services to the entire technology spectrum-the builders, sellers and users of technology worldwide. Capitalizing on its editorial strength, CMP is uniquely positioned to offer marketers comprehensive, integrated media solutions tailored to meet their individual needs. Its diverse products and services include newspapers, magazines, Internet products, research, direct marketing services, education and training, trade shows and conferences, custom publishing, testing and consulting. Contact: Nancy McHugh
CRN
949-223-3649
nmchugh@cmp.com
SOURCE: CMP Media Inc. Contact: Nancy McHugh of CRN, 949-223-3649, nmchugh@cmp.com Website: http://www.cmpnet.com/ Company News On-Call: http://www.prnewswire.com/comp/181993.html or fax, |