Hard Facts: June 17, 2002

On average, Internet-related spending remains a lower priority than hardware and software for small businesses. But the gap is shrinking, and many Internet-related areas,including wireless, voice-over-IP and application hosting,showed dramatic increases in spending priorities.

The gains were not limited to the Internet. Hardware and software categories such as notebooks and peripherals also showed sizeable increases in the level of spending priority between February and May.

But the survey data raises questions about whether increasing spending priorities will result in higher levels of actual spending. The percentage of midsize companies that said they expect to increase technology budgets remained nearly unchanged between the February and May surveys, while the percentage that said they expect budgets to decline increased 3 percent. Translating spending plans into spending dollars remains a key focus for solution providers in this uncertain economic and political climate.