SMBs in India are on track to invest about $ 640 million on buying packaged software this year, up more than 25% over what they invested in 2006. Spending on databases, accounting, networking, productivity and system software will account for more than 90% of the total software spending by SMBs this year, according to the latest report by New York-based Access Markets International (AMI) Partners.According to Nirupam Chaudhuri, research manager with AMI Partners. “SMB users have become more alert and they know what they need to be able to accelerate their business. A small percentage of IT-savvy SMBs have progressed to the third wave of IT adoption and are now demanding tailor-made solutions with superior support services.”Small businesses posted a 23% rise in software spending while medium businesses showed 30% growth in software spend last year.Investment in packaged software is driven by business needs. SMBs are most concerned about rationalisation of investments. Having state of the art technology with the latest security features is viewed as a major factor in overcoming competition. Vendors can no longer push anything and everything as a package to users. "These days SMBs need to be convinced on all the features a software package contains, and are only willing to pay for features they plan to use,” Chaudhuri says. “In keeping with this trend, vendors have also launched solutions and packages in which pay-as-you-use features are incorporated, thus allowing SMBs to access only the modules they’ve paid for."
Source : Sme Zone
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