Abstract

IT Hardware/Software Spending to be Main Growth Force

In 2006, the average Taiwanese SME spent just under NT$3.06 million (US$92,500) on IT; this figure represented an annual increase of 3.0% compared to 2005 and is expected to grow 0.7% in 2007. IT manpower spending continued to account for the largest share of overall IT expenditure, at 48.0%, followed by IT hardware spending, with 17.7%, and IT software spending, with 17.6%.

Data Storage Spending to Focus on NAS, Disk Array Devices

IT hardware will remain the main focus of SMEs' IT expenditure in 2007. Nearly 50% of SMEs plan to purchase desktop PCs in 2007, and nearly 30% intend to purchase servers. In the data storage segment, penetration rates for optical disc storage devices and disk arrays are already relatively high. Over the period 2007 -2009, NAS and disk array devices will see the highest demand.

SMEs Remains Cautious about Upgrading to Windows Vista

The main emphasis in SME software purchasing in the next few years will be on CRM, ERP, BI, and e-learning. The majority of Taiwanese SMEs are adopting a wait-and-see attitude towards Microsoft's Windows Vista operating system; only around 14.8% of SMES will be upgrading to Vista in 2007 -2009.

Network Equipment Spending to Concentrate in VoIP, VPN

As of 2006, more than 80% of Taiwanese SMEs had their own website. However, only 15.4% of these websites had an e-commerce capability, and online sales continued to account for only a very small percentage of SME sales revenue. As regards communications capabilities, more than 50% of Taiwanese SMEs have established a WLAN environment, and more than 50% are using VoIP. Over the period from 2007 to 2009, VPN and VoIP will be the main focus of expenditure in this area.

Information Outsourcing to Target Application System, Website Development and Maintenance

Around half of Taiwanese SMEs were making use of information outsourcing in 2006. Of these, 13.0% spent more on information outsourcing in 2006 than they did in 2005, but only 7.5% planned to spend more in 2007 than they had in 2006. Currently, application system maintenance, application system design and development, and website design and establishment are the most important outsourcing items, and it is these three items that will be the main focus of demand in 2007 -2009.

Security Appraisal and Content Filtering the Emphasis of Information Security

16.1% of Taiwanese SMEs spent more on information security in 2006 than they did in 2005; 12.9% expected to spend more in 2007 than in 2006. A high percentage of SMEs are already using anti-virus software and firewalls -more than 90% in both cases. Intrusion detection software is the next most widely used information security product. In their information security expenditure in 2007 -2009, SMEs will focus mainly on security appraisal, content filtering, and intrusion detection. Information security products that integrate multiple functions are becoming more popular among SMEs, which see them as a way of overcoming their limited budgets and limited resources. The general trend in SME information security expenditure in the future will be towards the purchase of this type of integrated solution.

Software Integration, Information Security to be Key Investment Items in 2007

The four biggest priority areas for SMEs in 2007 will be the integration of existing application software, strengthening the information security environment, upgrading existing application software, and the purchasing and maintenance of IT hardware. Most SMEs already have reasonably comprehensive IT infrastructure in place, so the main focus in IT spending is now shifting towards the integration of different business software and applications. SMEs will be seeking to leverage networking, communications, and other hardware to trim their operating costs, improve their overall competitiveness and business performance, and boost profits.