In Rhythm With The Midmarket

Even better: According to VARBusiness research, 39 percent of midmarket IT executives also say their technology purchases are likely to be influenced by solution providers this year. That's a full 10 percentage-point increase over 2002.

Midmarket IT executives appear to be aligning their hardware and software spending strategies to help achieve maximum efficiencies while providing the necessary safeguards for their information. In fact, 64 percent of the executives we polled say they have a business-continuity plan in place today, and it's not really surprising that antivirus (68 percent) and firewall/intrusion protection (60 percent) are the top two software products of greatest importance to them. The most important hardware products include servers (68 percent), PCs (59 percent), telecommunications (48 percent), storage (44 percent), and voice/data networking (42 percent).

Tip of the Iceberg
Among our key findings:

• What slowdown? Among midmarket executives, 19 percent say they have accelerated both short-term and long-term IT projects this year.
• ROI maximization remains priority No. 1. Approximately one in four of those survey participants that have accelerated IT projects this year report doing so as a direct result of the projects' greater ROI (26 percent). In addition, an equally large percentage states they have accelerated IT projects due to the projects' faster anticipated ROI (22 percent).
• But how do you help your midmarket customers realize the almighty ROI? More than half of those interviewed (51 percent) are turning to you to improve their customer service. That's followed closely behind by helping them to reduce operating costs (50 percent) and to build up-to-date security policies (49 percent).
• Who says there's no money to be made in hardware? Midsize IT end users plan to upgrade approximately one-quarter to nearly one-third of their existing installed notebooks or desktop equipment in the next 12 months. Notably, of those intending to do so, more than seven in 10 are planning such upgrades in conjunction with the upgrading of their overall hardware systems.
• Seems like you're doing a good job: An overwhelming majority of midsize IT end-users (83 percent) report they are currently satisfied with their IT solution providers, consultants or systems/software integrators. It's also important to note that 92 percent of midmarket end-users are not looking to change their primary/preferred solution provider.
• On the flip side, midmarket executives' areas of greatest dissatisfaction with their IT solution providers have to do with what they're charged (22 percent), how long it takes a project to be completed (13 percent) and lack of technical expertise (13 percent).
• How do midsize end users find you? Primarily through informal networking coupled with active investigation. According to our survey, nearly two in three midmarket executives (64 percent) rely on word of mouth and their colleagues when searching for a potential solution provider. In addition, 56 percent go online, and 51 percent turn to trade publications.
• Sell yourself based on technical expertise, by far the greatest qualifier when the midmarket needs to select an outside solution provider (43 percent). But technological experience and keen knowledge of business strategy are important, too (17 percent and 10 percent, respectively).
• In addition, make sure you have references that can vouch for your capabilities and performance. Forty-one percent of survey respondents say doing so helps them substantially in deciding on a solution provider to employ. The ability to show a prototype solution in action weighed in at second in importance (39 percent).

More business-critical details about the midmarket appear on the pages that follow. Turbulent times or not, this sector is spending, and we show you where to start.

Douglas Belt contributed to this article.