Q2 survey shows 57 percent of SBs in mature markets have planned to decrease their IT budgets
16 percent of SBs in emerging markets are expected to increase their IT budgets

San Jose, CA, July 9, 2009:  Techaisle's Q2 survey shows that 57 percent of small businesses in mature markets of US, UK, Germany have planned to decrease their IT budgets. This is up from 44 percent of small businesses who had planned to decreases IT budgets when surveyed in Q1. However, the average decrease of budget has gone down to 15 percent in Q2 as compared to 21 percent in Q1.

In contrast, 43 percent of small businesses in emerging markets of Brazil, India, China, Russia, and Malaysia have planned to lower their IT budgets, a figure which has gone down from 48 percent of small businesses in Q1. There is more positive news in emerging markets - 16 percent of small businesses are expected to increase their IT budgets by an average of 14 percent.

The findings were released today by Techaisle, a market research and consulting company focused on Emerging Markets, Emerging Technologies and Interactive Entertainment. 

Techaisle survey shows that 55 percent of Small Businesses in Emerging Markets still feel negatively impacted by the economy; however, this is down from 72 percent in Q1. On the other hand, 90 percent of Small Businesses in Mature Markets feel negatively impacted which is up from 76 percent in Q1.

IT Categories most Impacted due to Decrease in IT Budgets
When the small businesses in mature markets were specifically asked which areas of IT were being most impacted by decrease in IT budgets, the top five that emerged were:
o        Delaying upgrade of line of business software
o        Delaying purchase of new servers
o        Delaying purchase of new notebooks
o        Cutting down on external IT consultant/support services
o        Investigating Managed Services to cut costs

While the small businesses in emerging markets were more optimistic, the top five areas of IT investment that were most impacted included:
o        Delaying upgrade of network hardware (switches, routers, hubs)
o        Delaying upgrade of security software
o        Delaying purchase of new notebooks
o        Investigating Unified Communications
o        Upgrading of existing servers
IT Investments because of Increase in IT Budgets
Within the mature markets of US, UK, Germany there are a small but growing percentage of small businesses that have also increased their IT Budgets in Q2. The top five areas for IT investments include:
o        Purchasing new servers
o        Investigating Netbooks
o        Purchasing new Desktops
o        Upgrading existing servers
o        Upgrading business productivity software (Office)

Similarly, within emerging markets where a larger percentage of small businesses have increased their IT budgets, the top 5 areas of IT investments are:
o        Purchasing new servers
o        Purchasing new desktops
o        Investigating Netbooks
o        Purchasing new notebooks
o        Upgrading existing servers

IT Investment Priority Once Economy Improves
Small businesses in both mature and emerging markets were asked about their IT investment priorities once the economy improved. Small businesses in mature markets outlined the following priorities:
o        Purchasing new servers
o        Purchasing new desktops
o        Upgrading existing servers
o        Purchasing new notebooks
o        Upgrading networking hardware (switches, routers, hubs)

While the small businesses in emerging markets outlined the following priorities:
o        Purchasing new desktops
o        Purchasing new servers
o        Purchasing new notebooks
o        Upgrading business productivity software (Office)
o        Purchasing Netbooks

About Techaisle
Techaisle is a market research and consulting company focused on Emerging Markets, Emerging Technologies and Interactive Entertainment. Techaisle provides actionable data delivered as an answer to a specific question. Techaisle offers services in five major areas - Market Sizing; Survey Research of End Users; Survey Research of Distribution Channels; Custom Market Research; and Segmentation. Techaisle's segmentation algorithms are easily understood, easily deployable and drive actual sales and market understanding. Techaisle's blog can be read at http://techaisle.com/blog

For more information on Techaisle or its global products/services, please visit www.techaisle.com or call 408-914-2989.

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