Businesses to Spend $32 Billion on Mobility Solutions in 2011

By Nathan Eddy  |  Print this article Print

Eighty-one percent of SMBs are either currently implementing or planning to implement some type of mobility solution.

According to IT research firm Techaisle's multi-country primary research study on small to medium-size business (SMB) mobility adoption and trends shows that U.S. SMBs are likely to spend $32 billion on mobility solutions in 2011. Overall, 81 percent of SMBs are either currently implementing or planning to implement some type of mobility solution ranging from simple mobile device based applications to sophisticated logistics solutions, the report found.

Techaisle research found 23 percent is being spent on mobile applications including new application development and customization, 17 percent is being spent on devices and 8 percent is being spent on security and management. SMBs also expressed a strong desire to integrate mobile solutions with line of business applications as a way to derive greater business value over time.

While mobility adoption among SMBs is 28 percent higher than cloud adoption, the report warned there are significant barriers to adoption, with the top three being the cost of the solution, concern for theft and data privacy and data service pricing. "With both Verizon and AT&T discontinuing their unlimited data plan, hindrances become greater," the report noted.

The 10-19 and 100-249 employee size businesses are exhibiting highest growth rates for mobility solutions spend, according to the report. Irrespective of employee size categories, Techaisle analysts said clear attitudinal differences exist among SMBs adopting mobility, creating three different groups: aggressive adopters, steady movers and fence sitters. Nearly 17 percent fall into the aggressive adopters category, which also shows highest adoption of smartphones and tablets at 90 percent and 38 percent respectively.

The corresponding Techaisle multi-country channel survey shows that value added resellers (VARs) have been more active in offering mobility solutions as compared to other channels. A little under half (44 percent) of SMB channel partners either currently offer or plan to offer mobility solutions, which is one channel partner for every 140 SMBs. The above data is available in individual country reports for US, UK, Germany, Italy, Brazil, Australia, Canada and upcoming India for SMBs and US, UK, Germany for channels, Techaisle noted.