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And major vendors, well aware of the size of this unsaturated market, are tailoring their offerings to meet the SME`s specific needs. The sudden rush of attention on this market segment raises some interesting questions – the most important of which is: where should a small business be spending its technology budget this year?

The SME, SMME or SMB is generally defined as a company with between 20 and 500 people. Anything much more or less is either a micro organisation or a large enterprise.

iWeek set out to find the focus areas for SMEs when it comes to technology investment in 2007 - considering they often work with far smaller budgets than their larger counterparts.

Blume expects "some large international players to make major moves in 2007 in the SME space", adding that IT players are realising the imperativeness of servicing this area.

Soft touch

One key area of focus for SMEs, he notes, is the movement of service-oriented architecture online. It`s something with which Amit Parbhucharan, Iron Mountain Digital`s regional manager, agrees.

"Software as a service (SAAS) is a key way for SMEs to address their software requirements. South African business owners need to get to grips with this international trend - and must change their mindset to that which says that all IT solutions do not need to be bought and owned."

The benefits of SAAS are found in lower hardware and software costs, reduced systems management, higher performance, and improved support, he tells iWeek.

Parbhucharan highlights data security and recovery, pointing out that: "organisations` key information assets reside on business laptops and desktop PCs - e-mail continuity becomes essential as users and organisations embrace and become more dependable on e-mail."

Aside from the potential revenue and workflow impacts from "e-mail downtime", there is the element of reputation damage and the compromise of the organisation image if people cannot communicate with you - which, he says, is important to SMEs.

Reaching maturity

Hewlett-Packard executive Yergen Govender quotes an April 2006 Forrester survey which indicates that the adoption of emerging technologies by SMEs worldwide is relatively low. "For example, only 15% planned to deploy networked storage devices," he notes.

"Whilst SMEs are traditionally slow to adopt new technology, the case for such investments is often stronger - because of quicker decision-making capabilities and more rapid technology benefit realisation," he says.

Govender lists four main areas of focus for small enterprises in 2007: virtualisation, network-attached storage, video conferencing and VOIP.

Though there are obviously many other technologies with which to be concerned, these four are at a stage of maturity where they can be implemented effectively to provide real benefits for SMEs, he says.

VOIP 101

"VOIP enables users to make telephone calls via the same network used for Internet access - eliminating the need for dedicated voice lines, and reducing the costs and complexity of IT infrastructure,"

Increased mobility is also a benefit, since a user can take an IP phone on his or her travels, work from home or while on the road, without the "roaming" charges.

Westcon AME`s CTO, Graham Vorster, says: "Perhaps one of the most exciting solutions available today are Skype phones which combine DECT (digital enhanced cordless telecoms) technology, with Skype.

"These handsets simply plug into a computer, are very simple to set up, and then integrate with Skype. It`s a massive leap forward in terms of demystifying and simplifying the concept of VOIP for the SOHO or SMB," he adds.

But for now, and before such simplified technologies take effect, VOIP still suffers from what Vorster describes as "surprisingly low adoption in the SMB market".

"And this is despite the fact there is a common perception that telecommunications costs too much."

Hiding complexity

With the SME being a major buyer of technology (either as a necessity to handle business basics or to create competitive advantage), the trend for vendors to make IT equipment more accessible is of particular consequence, proposes Vorster.

"The typical SMB doesn`t have the luxury of a dedicated team of IT professionals. Particularly in the case of the SOHO, the business owner is typically also the technology buyer and even implementer - who needs equipment that is easy to buy, easy to install and easy to use." In this regard, things are looking good for the small business owner, as he says markets are becoming more mature and technology vendors are doing their utmost to hide complexity from the user.

This trend is evidenced in areas ranging from the operating systems to networking infrastructure. "A router used to be a complicated device best left in the hands of an expert: today wireless routers are big sellers - practically a consumer device."

Wireless networks are now a practical SME technology, Vorster adds. Buying and setting up a network is simple - the quick-start guides mean installing devices is just a matter of following a few simple steps.

Breaking down the walls

The SMME Forum`s chairman, Tebogo Khaas, comments that mobile and converged connectivity tools are coming more into focus for smaller businesses in 2007.

Jeffrey Crewe-Brown, from Asus, agrees that SMEs are now able to benefit more easily from the trend towards the mobile environment, that until now has been the domain only of large organisations.

An ultra-mobile PC - which has a screen size of about seven inches - is bridging the gap between the laptop and the PDA, and has enormous benefits to the SME," he says.

On a general level, Khaas believes that "SMEs seldom appreciate the potentially enabling benefits derived by correctly deploying technology in their businesses".

IT spend is normally seen as a grudge spend in businesses big or small, since the benefits are often intangible. Selling these potential benefits is often the most difficult task to do to SME managers and owners, he adds.

Iron Mountain`s Amit Parbhucharan agrees with this, but says there are ways to impress upon SMEs the importance of investing substantially, and correctly, in IT. "Think of it as information insurance," he says, when it comes to backup systems.

"In many cases SME`s are entrepreneurial organisations, so the first priority is to `sell` and other issues are not given such priority," he says to illustrate this problem.

Expertise

The most recent survey - which polled 6 000 SMEs - by tech research firm World Wide Worx shows SMEs are increasingly satisfied with the availability of ICTs.

But the organisation`s MD and principal researcher on the project, Arthur Goldstuck, notes that SMEs "still wrestle with the challenges of securing the skills and expertise necessary for sustained performance".

The introduction of more options for connectivity as well as increased telecoms competition, appear to be having a positive impact on the SME market, he notes.

Whether it is better access to technologies, or a growing awareness of the importance of IT investment, the tech budget for SMEs is definitely rising - and vendors are ready to take up the challenge, to turn their attention, and tailor their solutions, to the little man.