Since 2000, the number of small organizations utilizing midrange computing environments has experienced a slight downward trend. However, that trend is accelerating according to Computer Economics’ 2003 Information Systems Spending study. The annual study, which has been published since 1989, defines small organizations as having revenues of under $250 million.
In 2000, exactly one-fourth of all small companies in the study reported an increase in capacity of their midrange computing environments, while only 3% reported a decrease in capacity. That remained constant until 2003, when the number of companies reporting both increases and decreases in capacity showed a marked change.
This year, the number of companies reporting increases dropped to only 15%, while the number of companies reporting declines in midrange capacity rose to 12%. To put that in perspective, the number of companies reporting decreases this year was more than double that of 2002, and more than four times as many as reported declines in 2000 and 2001.
Despite this downward trend, midrange computers remain an important part of the overall IT strategy in most small companies. Our research indicates that over 75% of all small companies have at least one midrange system in their inventory. Over the years, the flexibility, power, and relative low cost of ownership of midrange systems has endeared them to many CIOs and technical managers.
Nevertheless, the data indicates that companies are beginning to replace traditional midrange systems with alternative platform environments, and this trend is likely to continue over the next several years. Figure 1 illustrates midrange computing trends in small organizations since 2000, including our projection for 2004.
Midrange Computing Trends in Small Organizations
|
Small Organizations (under $250 M in revenue) |
2000 |
2001 |
2002 |
2003 |
2004 (projected) |
|
Increase |
25% |
24% |
25% |
15% |
14% |
|
Decrease |
3 |
3 |
5 |
12 |
13 |
|
No Change |
48 |
53 |
53 |
53 |
50 |
|
None Installed |
24 |
20 |
17 |
20 |
23 |
The 2003 Information System Spending study is now available. This important tool has assisted hundreds of senior IT managers in making critical budget and technology forecasting decisions for almost 15 years. To order your copy, contact us at 1-800-326-8100, ext. 123.