Top 5 Tech Segments SMBs Will Spend Money On

3: CLIENT/DESKTOP SECURITY
With security continuing to be a major concern for businesses of all sizes, nearly one-quarter of SMBs surveyed in the CMP Channel spending survey said they had sought help from solution providers for their client and desktop security needs.

Many VARs are now starting to move deeper into providing managed security services, which can relieve smaller businesses of the need to have in-house staff capable of managing systems and which also provide resellers more of a recurring revenue stream.

"There definitely continues to be strong demand on the security side, and actually we're seeing an increase in conversations around outsourcing that security as well," says Jon Whitlock, vice president of market development at CBE Technologies, an IT solution provider in Boston. "Traditionally, security has been focused on processes around perimeter security, but we're seeing more and more interest around using our outsourced managed services for client security, for antivirus and spyware."

Small businesses' ever-present need to reduce costs is actually one of the main factors driving such security sales, as managing the security of endpoint devices requires knowledgeable staff and valuable man-hours, Whitlock says.

"Reducing IT costs is still the No. 1 driver in the sub-500 seat business, while security and the creation of policies around security is No. 1 in that 500 to 1,000-seat bucket, although reducing costs is still in the top three for them," Whitlock says.

Also driving the need for client-side security services is the increasing mobility of small-business workforces, he adds.

4: NETWORK INFRASTRUCTURE
Network infrastructure will be a top priority for small-business customers over the next year because, primarily, it hasn't been for the last couple of years, according to Frederick Johnson, president and CIO of Ross-Tek, a Cleveland-based solution provider. "A lot of our clients have put [infrastructure] on the back burner and now they're playing catch-up," Johnson says.

Small business purchasing on network infrastructure had backed up because too many small businesses still tend to operate in a "if it's not broke, don't fix it" mentality, Johnson says. Now, companies are ripping out old hardware and replacing it with new equipment, as well as making sure service contracts are in good order, he says. Customers realize how critical infrastructure is to their business, he says, so they're willing to spend to update it. Nearly 20 percent of respondents to the CMP Channel survey said they've sought a VAR's help in this area.

Many small businesses are also ripping out their DSL-based networks in favor of faster T1 lines because the cost of T1 has dropped precipitously over the last couple of years, Johnson says. "There's a transition in changing those things over. Clients with remote facilities are also looking to tie those in [to a headquarters]. Another key component is licensing, keeping their licenses current," he says.

5: ACCOUNTING/SUPPLY-CHAIN SOLUTIONS
Nearly 20 percent of SMBs surveyed said they had tapped VARs' expertise in implementing supply-chain solutions, and solution provider AXIS Integrated Solutions is proof of that growing market demand.

In just its second year of business, the accounting and supply- chain-solution specialist raked in $4 million in revenue last year and was named one of Sage's top-producing business partners.

The company's founding partner and CEO Manny Buigas actually began his career as a CPA in an accounting firm, but after serving as the firm's de facto in-house software expert, Buigas decided to spin off his own IT consulting practice. Now, his company is seeing the most growth among SMBs in supply-chain solutions, such as warehouse management, CRM applications and business analytics, Buigas says.

"On the CRM side, everybody wants to improve relationships with all of their stakeholders; you know, the old saying that it's a lot easier and cheaper to keep an existing client than finding a new client. It's all about getting better information to upsell and strengthen relationships," Buigas says.

And upselling is definitely something this small VAR understands quite well.

"Every SMB is very cost-conscious, but if they can spend a dollar and make two, they'll do it."