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India SMB's to Spend USD500 Mln on Servers and Networking Hardware

Small and medium businesses (SMBs) in India will invest close to USD 500million on servers and networking hardware this year, with two-thirds of the spending going toward network-related hardware purchases alone. SMBs see investments in servers and connectivity as critical in the Indian market; and only 14% of PC-owning SMBs currently deploy a Local Area Network (LAN). This points to a significant untapped connectivity opportunity among SMBs.

This comes from a recent survey of Indian SMBs conducted by New York-based Access Markets International (AMI) Partners Inc. “Small businesses (1-99 employees) account for a relatively smaller portion of total networking expenditure,” says Dev Chakravarty, Kolkata-based Analyst at AMI-Partners. “However, SB contribution to the overall SMB spend is set to rise in the future as Indian SBs try to catch up with their larger counterparts.”

“The networking market in India will see sunny days ahead as Indian SMBs realise the benefits of connectivity,” Mr. Chakravarty says. “More and more businesses are embracing the benefits of high-speed Internet connectivity. Cellular phone penetration is also nearing saturation. Thus, networking capability is almost a ‘must-have’ for every tech-savvy enterprise in the country for sustaining their increasing communication needs.”


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