2008 US home-based IT spending valued at $52B

2008 US home-based IT spending valued at $52B


By Lawrence Casiraya
INQUIRER.net

MANILA, Philippines -- Who says small can’t spend big?

America’s home-based businesses are forecasted to spend as much as $52 billion in IT and telecom services, according to a study by AMI-Partners.

“The home-based business is rapidly becoming a significant sector that vendors need to pay attention to,” said Antara Jaitly, senior analyst at AMI. “More people may look to operating a home-based business as a means to supplement their income or fulfill personal aspirations.”

Home-based businesses (HBBs) can be considered a subset of the larger SMB market.

According to AMI estimates, HBBs account for about 15 million PCs. IT spending alone this year is expected to reach more than $32 billion.

These HBBs plan to spend on a wide array of hardware, software and telecom-related products and services ranging from PDAs and smart phones to PCs, printers, software applications, security and storage products and high-speed broadband services.

Vendors such as HP, Microsoft and Dell resonate well with these HBB owners, AMI's study shows. Google, meanwhile, scored high marks in online services.

The HBB market in the US has exploded with service-oriented businesses.

The Internet has played a pivotal role, spurring an increase in the use of websites and Internet-based electronic marketplaces such as eBay, which have enabled small service-focused businesses -- as varied as consulting, staffing, travel and catering -- to flourish.

“With median HBB annual revenues equaling $62,000, HBB revenues are 30 percent more affluent than the median US household income of $48,200,” Jaitly said.

He added there is a distinct HBB psyche, which is a synthesis of the owner profile, buying power and formation drivers.

“For marketers, understanding this psyche is critical to effectively targeting this segment,” he said.