Wednesday, July 29, 2009

Interesting article

IT spending at midsized companies: How much does size matter?

"It's a long-held theory that larger companies have an advantage over smaller ones in IT spending, largely because of their ability to tap economies of scale. They can spend less and extract more value from investments. Recent research supports the notion that size does matter but that companies investing the most in IT are not always the winners.

In fact, on average, the most successful small and midsized (SMBs) companies are more frugal than the average large company when it comes to spending as a percentage of revenue.

To understand the differences between large and small companies, Alinean turned to its PeerComparison database of 8,000 companies worldwide, which includes detailed IT spending and financial performance data. To judge if size really matters, the IT spending and performance ratios of public U.S. companies were compared between large companies with revenues greater than $2 billion, midsized companies with annual revenues between $50 million and $2 billion, and small companies with less than $50 million in revenues..."

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