SMB software market tipped to grow

The Australian SMB packaged software market is expected to reach $881 million in 2005, an increase of 13 percent from 2004, according to industry analyst IDC.

Australian SMBs represent more than a million businesses, which is a very attractive target for software vendors, the company said in a statement.

Jean-Marc Annonier, SMB research manager at IDC Australia, said vendors needed to tailor their software and hardware bundles to address the needs of SMBs.

Security in particular, was an ongoing concern for SMBs as they relied on their suppliers to resolve security issues as opposed to using in-house staff, IDC said.

Annonier said vendors needed to address the critical issues of security and integration while also making a clear value proposition through their bundling options.

"Industry knowledge to identify the business requirements, while being able to provide attractive bundles of hardware and software, should be the key focus areas of vendors and their channel partners," he said.