Wireless Security
Security and wireless top SME priorities
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Wireless and security head SME technology priorities

IoD / Dell survey shows average small business IT budget of £160,000 a year

Sarah Arnott, Computing 15 Sep 2004
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Security concerns and wireless computing are the top technology priorities for small and medium-sized businesses (SMEs), says a survey published today.

More than half of the 500 use wireless technology, a quarter as part of a wireless area network, says a survey of 500 SMEs run by the Institute of Directors (IoD) and Dell computers. And 43 per cent plan to change their purchasing habits from desktop to laptop computer.

Almost two-thirds of respondents listed data security as a top priority, and another 54 per cent emphasised business continuity and disaster recovery.

Productivity gains are the main reason for investing in IT, said 73 per cent of respondents, and 84 per cent consider technology to be a key factor in helping the business to grow.

Mass availability of affordable broadband is a key factor in SMEs' growing investment in IT, says IoD senior policy advisor Jim Norton.

'Over the last year we have seen a very large take-off of use of broadband and it is a combination of the industry getting a lot better and the user being able to bring together good communications and good processing,' he said.

Bill Rodriguez, general manager of Dell UK, said: 'The single biggest initiative in our large corporate customers is the move to wireless. These results indicate a similar trend amongst smaller businesses.'

The annual IT budget across all surveyed firms is £160,000: £13.500 for business of one to 10 employees, £84,900 for those with 11 to 100 employees, and £556,000 for companies with more than 100 staff members.

'You don't survive long running an SME unless you are hard-nosed and a realist,' said Norton.

'SMEs bring those qualities to the IT market - they want to be shown the benefit and the application.

'They also tend to think about how to use the technology first, before they buy it, and that is something small businesses can sometimes show a larger business in terms of thinking about the use of IT,' he said.

What do you think? Email feedback@computing.co.uk

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See also:

SME Business CentreSmaller businesses want technology to help them punch above their weight in a global market where their main competitor could be on the other side of the world  22 Sep 2004

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