05/03-03   -   Pressemeldinger

Norwegian Market for IT to SMBs Stays Optimistic, says IDC

COPENHAGEN, Denmark, March 5, 2003 — Small and medium-sized companies have managed to stay optimistic and increase their IT investments despite the fact that Norway is one of the European countries worst hit by the downturn in IT markets. The shock in Norway following September 11, the international financial scandals, and the overall economic pessimism combined with declines in oil prices (which have in previous years helped boost Norway´s economic development), have led to caution. Large companies, which account for half of Norwegian IT market spending, postponed their investments, but the SMB segment continued to increase IT spending, although at a lower price.

These are the findings of a study of IT spending in Norwegian companies with 10 to 250 employees carried out by IDC in February 2003. During 2002 more than NOK 9.4 billion (€1.2 billion) was spent on IT in these companies, and above-average growth will continue in the years to come. The healthy increase covers all areas of investment but, in contrast with most of Europe, a large group of smaller companies in Norway are early adopters of new technology. And this has not slowed down in 2002.

For obvious reasons IT vendors have focused on large companies and treated the smaller companies reactively. The trend of declining IT spending in large companies in Norway has led IT vendors to start looking at small and medium companies to try to benefit from the positive developments in this sector.

“Vendors are discovering that to approach the SMB market actively new business models are needed," said Mette Ahorlu, Nordic research manager with IDC Nordic, who carried out the study. "Large suppliers create their profit through economies of scale, and that is not a business model well suited for dealing with smaller customers."

The SMB sector has been divided into four segments for this analysis: IT orientated users, laggards, fast followers, and wait-and-see users. Whereas the IT orientated users can manage on their own and know what they are looking for, the other segments need more assistance to understand what to buy and how they may benefit from the use of IT. And this is where the local supplier of IT comes in and can be successful. Although "old fashioned" in style, the local supplier has the knowledge that can make the customer prefer to deal with them.

"Local suppliers are key to the SMB market and IDC believes large vendors and solution providers will have to cooperate with the local suppliers and learn the business logic of the smaller companies to succeed," Ahorlu said. "There is a substantial potential for solutions targeting the needs of small and medium companies — but downscaling of large solutions doesn’t do it. Vendors have to demonstrate a real interest in this market and create confidence among small and medium companies that they are understood and cared for. Reputation in the sector is much more important than a reference from a mega-installation."

The study, Norwegian IT Opportunity: Small and Medium Business Market (IDC #NO520303K), forecasts the development in IT spending in the SMB sector until 2007. It identifies the opportunities in the IT market among small and medium-sized businesses in Norway. The majority of IT companies actively target the top 500 enterprises at the most. SMBs are generally treated very “reactively," but nonetheless represent close to a third of the revenues of several large resellers. The study also analyzes the channels through which SMBs buy IT and how different supplier types match the needs of small and medium companies in Norway.

The study is available to purchase on www.idc.com or via your local IDC office.

For more information, contact:
Mette Søeborg Ahorlu
+45 39 16 22 51
mahorlu@idc.com

About IDC
IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC´s customers comprise the world´s leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at www.idc.com.

IDC is a division of IDG, the world´s leading IT media, research and exposition company.
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