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IT Spending Related to Infrastructure Maturity and Attitudes About IT
(Redwood City, CA) November 19, 2007: All Covered—the only nationwide information technology (IT) services partner focused on enabling the success of small businesses—announced the results of its Technology Trends Survey.
Many businesses today rely heavily on IT to successfully operate. However, in small and emerging businesses, this reliance on IT and the benefits it provides vary greatly from company to company. Much of this variance is directly linked to the owner or IT decision maker’s positive or negative attitude towards IT.
In addition to attitudes toward IT, spending is often tied directly to the maturity of the technology infrastructure that is in operation. All Covered conducted a survey to better understand small and emerging business’ attitudes towards IT, perspectives regarding the state of their IT initiatives and IT spending.
During September, 80 firms shared their perspectives regarding where future technology investments are being aimed. The companies surveyed were all small businesses with fewer than 100 employees from a wide variety of industries and operating in many of the major metropolitan cities across the United States.
In the survey, All Covered found that small businesses are investing from 2% to 10% of their top-line revenue on Information Technology, yet only half of these companies see IT as a competitive or strategic advantage. Not surprisingly, those small businesses that viewed technology as a source of competitive advantage for their business reported:
- Above average anticipated revenue growth for the company
- Above average spending on information technology as a percentage of revenue
- These businesses were typically within the mid-range of the Infrastructure Maturity Model
Businesses that internalized the belief that Information Technology is something that you build your business around experienced:
- Higher anticipated revenue growth for the company
- Higher spending on information technology as a percentage of revenue
- These businesses were typically within the upper-range of the Infrastructure Maturity Model
Business owners and decision makers are familiar with how “tactical” solutions will work for their business, but for strategic solutions, they need to better understand how technology links to their strategic business objectives. It is important that businesses assess their IT environment to determine how it can be leveraged to the needs of their unique businesses. Those businesses that have successfully utilized technology, even to the point of building their business around it, yielded higher results and a competitive edge over their competition.
All Covered recommends that businesses retain expert resources to assist with the evaluation of their IT environment:
- Develop a formal IT budget and spend management plan that is aligned to strategic business objectives.
- Evaluate the company’s business objectives and align them to current IT solutions. Look for any deficiencies that can impact the business.
- Evaluate future business objectives and ensure that the company has the technical resources available through the use of a Technology Plan or IT Roadmap.
About All Covered
All Covered is focused on enabling the success of Small Businesses through the effective use and management of technology. The company is an expert at translating the needs and business goals of small companies into robust, secure and affordable information technology (IT) infrastructures and providing professional support for them. All Covered is a trusted advisor to its clients, giving them unbiased and balanced advice, as well as expert support.
Contact Info:
Edith Gong
650-486-5028
press@allcovered.com
©2007 All Covered, Inc. All rights reserved. All Covered is a registered trademark of All Covered, Inc. All other trademarks are the property of their respective owners.
