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INDUSTRY NEWS


12 May 2008

IT services vendors 'turning to midmarket'


The market for medium sized enterprise services is growing at twice the rate of that of larger businesses, and represents a growing opportunity for IT services vendors, it has been claimed.

According to IDC, IT vendors traditionally focused on the largest customers will begin to enhance the value of their midmarket services, catered specifically to those firms with up to 1,000 employees.

Research by the analyst indicated that midmarket customers desire close relationships with their IT providers, something that could be achieved with the provision of services via a software-as-a-service (SaaS) platform.

"The midmarket need for a direct relationship with IT vendors is the most surprising and interesting finding of this study," said Rebecca Segal, vice president of global services markets at IDC. "Leveraging the hosted, on-line model would be key to achieve that."

IDC found that IT spending among midmarket enterprises will be driven in the next year by security projects and growth initiatives, such as improving customer service.

Recently Gartner reported that enterprises will be looking to increase their budgets for business intelligence platform solutions by 11.2 per cent, on average in the year to come. It estimated that the market for BI platforms would reach $5.8 billion (£2.9 billion) in 2008.

© 2006 Adfero Ltd.

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