HOME PAGE ABOUT US CONTACT US SUBSCRIBE ADVERTISE ARCHIVES
TOP STORIES NATION ECONOMY COMPANIES SHIPPING OPINION PERSPECTIVE LIFE SPORTS MOTORING
SEARCH ENGINE
WWWOur Site
Anchored by Jonathan dela Cruz, Salvador Escudero, Boying Remulla, Teddy Boy Locsin and Alvin Capino
Monday to Friday
8:00pm-10:00pm

ARTICLE SERVICES
  • bookmark this page
  • print this article
  • view archive
  • SMB budgets on ICT seen to hit $3B
     
    By Dennis D. Estopace
    Reporter

    TOTAL spending by small and medium businesses (SMBs) in the Philippines on information and communications technology (ICT) may hit more than $3 billion this year (P123 billion), up 12 percent over last year.

    This was shown by a study by New York-based Access Markets International (AMI) Partners Inc. SMBs are companies with 99 up to 999 employees.

    “Spending on telecommunications will take the largest piece of the pie, while spending on IT computing comprising personal computers, servers and printers will contribute to more than 25 percent of the total ICT spend (sic),” a company statement quoted one of its analysts, Ruth Garin, who is based in Singapore.

    She said, “SMBs comprise up to 99 percent of all businesses in the Philippines and [are] significant contributors to technology spend (sic).”

    Garin added: “Understanding how SMBs behave, their purchase cycles, and who influence their purchase decisions, channel preferences and their top investment priorities would be key to nailing this market.”

    The first priority would be on hardware. “As the first priority, SMBs’ computing investment will go to desktops.” 

    AMI Partners said that SMB spending on computing is set to cross $800 million (P32.8 billion) by the end of 2008, the bulk of it on desktops. “Small businesses or companies with up to 99 staff will extend this investment by adding more notebooks to cater to growing mobile employees while medium businesses will spend more on servers.”

    In its Information Economy Report 2007-2008, the United Nations Conference on Trade and Development (Unctad) cited the need for “data on ICT use by businesses in developing countries …in order to better assess the impact of ICT policies.”

    The yearly Unctad report released in February, also said: “National, regional, and international efforts to improve the availability of data on ICT in order to assess statistical data on ICT in developing countries, particularly on the use of ICT by business and on the ICT sector, are essential so that policymakers can assess progress in their ICT for development policies.”

    Unctad pinned the responsibility on governments. “[Governments] can raise awareness among enterprises, particularly SMEs, on the potential of ICTs for business use” that could encourage greater competition that “can lower prices, and this in turn facilitates the adoption of ICT by lower-income individuals and enterprises.”

    AMI Partners noted that although small businesses and medium-size businesses behave differently, “both are on the same footing when it comes to competition....Both cited strong competition as the topmost challenge for this year.”

    Other ICT growth areas in the SMB market include Internet-protocol telephony [voip], which is “expected to be highest in the mid-market segment,” and security and storage, which “will see the fastest growth in the Philippines this year.”

    Both technologies, said Garin, “are expected to register high annual double-digit growth, in excess of 20 percent.” She cited increased e-mail volume and use of digital media as the top drivers for adopting or enhancing storage infrastructure.

    Two more growth areas in SMB spending on ICT include security software and business applications.

    OTHER STORIES

    Oil prices may fuel inflation


    GMA touts 17% revenue hike, reforms


    Power shortage in Visayas seen


    ‘Disappeared’ rice probed


    Debate on rice-tariff cut rages


    66% of Filipinos don’t feel impact of economic growth


    External debt up to $55B in 2007: BSP


    Future of tourism: Health-tels, online access


    SMB budgets on ICT seen to hit $3B